# EDGAR Filing Document

**Accession Number:** 0001777318
**File Stem:** 0001213900-25-091679
**Filing Date:** 2025-9
**Character Count:** 80329
**Document Hash:** 7e2e40754fc215f4b4ae0c47df4c989c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-25-091679.hdr.sgml**: 20250925

**ACCESSION NUMBER**: 0001213900-25-091679

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250925

**DATE AS OF CHANGE**: 20250925

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROVEN Group, Inc.
- **CENTRAL INDEX KEY:** 0001777318
- **STANDARD INDUSTRIAL CLASSIFICATION:** SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 823571886
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00505
- **FILM NUMBER:** 251344210

**BUSINESS ADDRESS:**
- **STREET 1:** 7901 4TH ST. N STE 4916
- **CITY:** ST. PETERSBURG
- **STATE:** FL
- **ZIP:** 33702
- **BUSINESS PHONE:** (415) 295-6008

**MAIL ADDRESS:**
- **STREET 1:** 7901 4TH ST. N STE 4916
- **CITY:** ST. PETERSBURG
- **STATE:** FL
- **ZIP:** 33702

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Life Spectacular, Inc.
- **DATE OF NAME CHANGE:** 20190520

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549** 

**FORM 1-SA**

☒ **SEMIANNUAL REPORT PURSUANT TO REGULATION A**

**or**

☐ **SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A**

For the fiscal semiannual period ended: <u>June 30, 2025</u>

**<u>PROVEN Group, Inc.</u>**

(Exact name of issuer as specified in its charter)

<u>Delaware </u> <u>82-3571886</u> <br> State or other jurisdiction of<br> incorporation or organization (I.R.S. Employer<br> Identification No.)

PROVEN Group, Inc., 7901 4th St. N STE 4916, St. Petersburg, Florida 33702

(Full mailing address of principal executive offices)

(415) 439-3421

(Issuer's telephone number, including area code)

**THIS SEMI-ANNUAL REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THIS REPORT, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.**

**ITEM 1. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included in this semi-annual report and our annual report filed on Form 1-K on May 5, 2025. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements.

The unaudited financial information set forth below with respect to the six-month period ended June 30, 2025 is preliminary and subject to potential adjustments. Adjustments to these consolidated financial statements may be identified when review of historic consolidated financial statements has been completed in conjunction with our year-end audit, which could result in significant differences from this preliminary unaudited financial information, although in the opinion of management all adjustments necessary to make restated interim results of operations not misleading have been included here. Unless otherwise indicated, latest results discussed below are as of June 30, 2025.

**General**

We were formed as a Delaware corporation on May 15, 2017. The company develops, produces and sells skincare and fragrance products directly to consumers. The company's business model is to sell products directly to consumers via its website. Subscription sales and sales from repeat customers make up a large portion of the company's revenue. The company differentiates its skincare products through offering formulations that are matched to address a customer's specific skin needs, lifestyle and environmental factors. The company differentiates its fragrance products through matching products to a customer's fragrance preferences.

**Results of Operations**

The following represents our performance highlights:

***Revenues***

We generate revenues exclusively from direct-to-consumer sales of skincare and fragrance products. Revenues decreased by $6,112,518 from $18,785,699 for the six-month period ended June 30, 2024 to $12,673,181 for the six-month period ended June 30, 2025, or by 32.5%. The decrease in revenue was due primarily to decreases in the acquisition of new customers and repeat orders for PROVEN.

***Cost of Revenues***

Cost of revenues consists of the costs of inventory sold, packaging materials costs, inbound freight, outbound freight, and customs and duties. In situations where promotional products are provided by the Company to its customers at the same time as the related saleable product, the cost of these promotional products are recognized as a cost of revenue. During the year ended December 31, 2024, the Company changed its accounting policy regarding the classification of outbound freight associated with shipping goods to customers. Previously, these costs were reported within operating expenses, more specifically in sales and marketing expenses. Under the new policy, these costs are included in cost of revenue. Management believes this presentation better reflects the costs associated with shipping customer orders. Prior periods have been reclassified to conform to the current year presentation.

The cost of net revenues for the six-month period ended June 30, 2025 was $3,057,909, resulting in gross profit of $9,615,272 (a gross margin of 75.9%) compared to cost of net revenues for the six-month period ended June 30, 2024 of $4,713,356 and gross profits of $14,072,343 (a gross margin of 74.9%). The improvement in gross margin is a result of an improvement in unit costs associated with both brands, bringing down our overall cost of goods sold.

***Operating Expenses***

Our operating expenses consist of general and administrative expenses, sales and marketing expenses, and research and development expenses. The company recorded total operating expenses of $17,518,377 for the six-month period ended June 30, 2025 and $16,031,698 for the six-month period ended June 30, 2024. Such expenses were composed of:

● general and administrative expenses of $9,457,114 for the six-month period ended June 30, 2025 and $5,042,605 for the six-month period ended June 30, 2024;

● sales and marketing expenses of $5,798,315 for the six-month period ended June 30, 2025 and $9,232,527 for the six-month period ended June 30, 2024; and

● research and development expenses of $2,262,948 for the six-month period ended June 30, 2025 and $1,756,566 for the six-month period ended June 30, 2024.

The increase in our total operating expenses resulted primarily from an increase in stock-based compensation, offset by a planned decrease in advertiser spending and other marketing expenses. During the six months ended June 30, 2025, $4,033,032 in stock-based compensation was classified in general and administrative expenses, $2,001,556 was classified in research and development expenses and $1,092,662 was classified in sales and marketing expenses in the consolidated statements of operations. During the six months ended June 30, 2024, $1,715,533 in stock-based compensation was classified in general and administrative expenses, $525,838 was classified in research and development expenses and $715,249 was classified in sales and marketing expenses in the consolidated statements of operations.

***Other Expense***

 ****

Other expense consists of interest expense. The company recorded total other expense of $50,205 for the six-month period ended June 30, 2025 and $269,944 for the six-month period ended June 30, 2024. Such expenses were composed entirely of interest expenses.

Interest expense decreased because the company finished paying off its short-term loans in 2024 and did not acquire any additional debt during the year. See "Liquidity and Capital Resources – Indebtedness."

***Net Operating Loss and Net Loss***

Accordingly, the company's net operating loss was $7,903,105 and $1,959,355 for the six-month periods ended June 30, 2025 and 2024, respectively. The company's net loss was $7,953,310 for the six-month period ended June 30, 2025, and $2,229,299 for the six-month period ended June 30, 2024.

**Liquidity and Capital Resources**

As of June 30, 2025, the company had approximately $1,716,672 in cash and cash equivalents on hand. We believe that our cash and cash equivalent balances, along with positive cash flow from operations, will be adequate to meet our liquidity and capital expenditure requirements for at least the next 12 months. If these sources are not sufficient to meet our cash requirements, we will need to seek additional capital, potentially through private placements of equity or debt, to fund our plan of operations. The company is also currently having active fundraising conversations to increase the amount of cash on the balance sheet. So, although the company can support itself alone, it is also looking for additional investments to increase growth and sustainability.

*Indebtedness* 

During the year ended December 31, 2022, the company received total proceeds of $9,573,653 from the same lender from 5 financings. The company paid back fixed recurring monthly amounts over the 12-24 month periods relating to each financing. The loans bore interest from 7% - 14% and matured at various times between January 31, 2023 and August 2, 2024. During the six-month period ended June 30, 2024, the company made repayments of $1,792,529. As of June 30, 2025 and December 31, 2024, $0 remained outstanding. Interest expense for the six months ended June 30, 2024 related to these loans was $256,075.

On March 28, 2024, the company converted its liability due to the co-founders, representing proceeds from the Regulation A offering, into loan payables, separate to each co-founder. As of June 30, 2025 and December 31, 2024, the total of both liabilities, less allocated offering costs and expenses, is $762,540 and $740,876, respectively. Interest will accrue at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

*Issuances of Equity*

On August 6, 2021, the company commenced an offering pursuant to Regulation A of the Securities Act of 1933, as amended (the "Regulation A Offering"), qualifying the offer and sale of up to $60,000,000 of units consisting of .7 shares of Series A Preferred Stock of the company and .3 share of Common Stock from selling shareholders at a price of $6.60 per unit. As of July 31, 2024, the company had closed on gross proceeds of $3,221,988 and issued 488,180 Units, including 341,726 shares of Series A Preferred Stock. As of August 6, 2024, the Regulation A Offering was closed.

During the six months ended June 30, 2025, the company issued 30,000 shares of Common Stock for gross proceeds of $7,800.

During the six months ended June 30, 2024, the company issued 2,352 shares of Series A Preferred Stock for gross proceeds of $15,523, or $6.60 per share.

*Future Equity Obligations*

There have been no issuances of future equity obligations for the six months ended June 30, 2025 and 2024.

If there is a preferred equity financing before the instrument expires or is terminated, the company will automatically issue to the investors a number of shares of either a) a number of shares of Standard Preferred Stock equal to the purchase amount divided by the cash price per share of the Standard Preferred Stock, if the pre-money valuation applicable to the new investors is less than or equal to the valuation cap; or b) a number of shares of Safe Preferred Stock equal to the purchase amount divided by the Safe Price. The Safe Price is defined as the valuation cap divided by the number of dilutive shares outstanding.

**Trend Information**

Our primary goal is to add customers in our direct-to-consumer sales channel as well as strengthening our artificial intelligence and technology capabilities. In the future, we intend to expand our product line and move into omnichannel, selling our products on online marketplaces and in retail locations. As we add customers, we will be able to grow our brands. Increasing demand, along with additional media coverage in the United States, has driven and continues to drive an increase in sales for the company's products. There are also several underlying trends that drive the growth of the sector.

With respect to growth in the skincare industry as a whole, in 2019, when the company first launched, the global skincare market was estimated to be $140 billion in size. By 2034, it's estimated to grow to $321.90 billion in size, a compound annual growth rate of 6.34%. The global fragrance market was estimated to be $58 billion in 2025 and is expected to grow at a compound annual growth rate of 5.3% to $88 billion in 2033.

There has been a consistent trend towards more online and direct to consumer sales across industries. E-commerce in beauty nearly quadrupled between 2015 and 2024, and its share now exceeds 20 percent, with significant runway ahead. This compares with a 2022 e-commerce share of approximately 30 percent in apparel and footwear, and around 65 percent in toys and games.

Consumers have been increasingly demanding personalized products:

● 59% of customers say that the option of personalization influences their shopping choices, according to an Infosys report.

● A Forrester report confirmed that 77% of consumers have chosen, recommended, or paid more for a brand that provides the option to personalize.

● The company is poised to continue to take advantage of these industry trends and continue to execute to grow in the US skincare market with our world class executive, technology and operations teams.

Inflation along with softening consumer demand in 2024 have created an environment where consumers may be less willing to purchase dispensable products, counteracting some of the other trends noted.

**ITEM 2. OTHER INFORMATION**

None.

**ITEM 3. financial STATEMENTS**

**PROVEN Group, INC.**

**CONSOLIDATED FINANCIAL STATEMENTS**

**JUNE 30, 2025**

**UNAUDITED**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024](#a_001) | F-2 |
| [Consolidated Statements of Operations for the Six Months Ended June 30, 2025 and 2024](#a_002) | F-3 |
| [Consolidated Statements of Stockholders' Equity (Deficit) for the Six Months Ended June 30, 2025 and 2024](#a_003) | F-4 |
| [Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024](#a_004) | F-5 |
| [Notes to the Consolidated Financial Statements](#a_005) | F-6-F-15 |

---

**PROVEN Group, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **ASSETS** | **(unaudited)** |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1716672 | $4182341 |
| &nbsp;&nbsp;&nbsp;Inventory | 3063101 | 2887857 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 874752 | 497314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 5654525 | 7567512 |
| Deposits |  | 54892 |
| Property and equipment, net | 966 | 1932 |
| Goodwill | 123223 | 123223 |
| Intangible assets | 4567 | 4567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5783281 | $7752126 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1416975 | $1892675 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 702572 | 1293845 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 326787 | 432063 |
| &nbsp;&nbsp;&nbsp;Due to related parties | 762540 | 740876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 3208874 | 4359459 |
| Loan payable | 150000 | 150000 |
| Future equity obligations | 500010 | 500010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 3858884 | 5009469 |
| Commitments and contingencies (Note 11) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Series A-2 preferred stock, $0.00001 par value, 5,675,915 shares authorized, 3,231,280 shares isused and outstanding as of both June 30, 2025 and December 31, 2024, liquidation preference of $11,419,990 as of June 30, 2025 | 32 | 32 |
| &nbsp;&nbsp;&nbsp;Series A preferred stock, $0.00001 par value, 6,717,483 shares authorized, 446,143 and 446,943 shares isused and outstanding as of June 30, 2025 and December 31, 2024, respectively, liquidation preference of $2,779,010 as of June 30, 2025 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;Series Seed preferred stock, $0.00001 par value, 17,582,397 shares authorized, 17,582,397 shares isused and outstanding as of both June 30, 2025 and December 31, 2024, liquidation preference of $9,206,101 as of June 30, 2025 | 176 | 176 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.00001 par, 69,740,303 shares authorized, 26,740,441 shares issued and outstanding as of both June 30, 2025 and December 31, 2024 | 267 | 267 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 103083273 | 95948223 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (101159355) | (93206045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 1924397 | 2742657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5783281 | $7752126 |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
|  | **(unaudited)** | **(unaudited)** |
| Net revenues | $12673181 | $18785699 |
| Cost of net revenues | 3057909 | 4713356 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 9615272 | 14072343 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 9457114 | 5042605 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 5798315 | 9232527 |
| &nbsp;&nbsp;&nbsp;Research and development | 2262948 | 1756566 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 17518377 | 16031698 |
| Loss from operations | (7903105) | (1959355) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (50205) | (269944) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense), net | (50205) | (269944) |
| Provision for income taxes | - | - |
| Net loss | $(7953310) | $(2229299) |
| Weighted average common shares outstanding - basic and diluted | 26718547 | 26710591 |
| Net loss per common share - basic and diluted | $(0.30) | $(0.08) |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A-2** | **Series A-2** | **Series A** | **Series A** | **Series Seed** | **Series Seed** | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at December 31, 2023 (as restated)** | 3231280 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32 | 424282 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | 17582397 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;176 | 26710591 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;267 | $88715449 | $(86768345) | $1947583 |
| Issuance of Series A preferred stock |  |  | 2352 |  |  |  |  |  | 15523 |  | 15523 |
| Stock-based compensation |  |  |  |  |  |  |  |  | 2956620 |  | 2956620 |
| Net loss | - | - | - | - | - | - | - | - | - | (2229299) | (2229299) |
| **Balances at June 30, 2024 (unaudited)** | 3231280 | $32 | 426634 | $4 | 17582397 | $176 | 26710591 | $267 | $91687591 | $(88997644) | $2690426 |
| **Balances at December 31, 2024** | 3231280 | $32 | 446493 | $4 | 17582397 | $176 | 26710591 | $267 | $95948223 | $(93206045) | $2742657 |
| Exercise of stock options |  |  |  |  |  |  | 30000 |  | 7800 |  | 7800 |
| Stock-based compensation |  |  |  |  |  |  |  |  | 7127250 |  | 7127250 |
| Net loss | - | - | - | - | - | - | - | - | - | (7953310) | (7953310) |
| **Balances at June 30, 2025 (unaudited)** | 3231280 | $32 | 446493 | $4 | 17582397 | $176 | 26740591 | $267 | $103083273 | $(101159355) | $1924397 |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
|  | **(unaudited)** | **(unaudited)** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(7953310) | $(2229299) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 7127250 | 2956620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 966 | 2557 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets |  | 40016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory written off |  | 29872 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (175244) | 595521 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (377438) | 240715 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription receivable |  | 2092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (475700) | (1759976) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (591273) | (484987) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (105276) | (385235) |
| &nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (2550025) | (992104) |
| **Cash flows from investing activities:** |  |  |
| Deposits | 54892 | 223 |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | 54892 | 223 |
| **Cash flows from financing activities:** |  |  |
| Due to related parties | 21664 | (688812) |
| Issuance of loan payable |  | 596124 |
| Repayments of loan payable |  | (1792529) |
| Issuance of Series A preferred stock |  | 15523 |
| Exercise of stock options | 7800 |  |
| Deferred offering costs | - | (17615) |
| &nbsp;&nbsp;&nbsp;Net cash used in financing activities | 29464 | (1887309) |
| **Net change in cash and cash equivalents** | (2465669) | (2879190) |
| Cash and cash equivalents at beginning of period | 4182341 | 6535751 |
| Cash and cash equivalents at end of period | $1716672 | $3656561 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $- | $- |
| Cash paid for interest | $10931 | $259253 |
| **Supplemental disclosure of non-cash financing activities:** |  |  |
| Subscription receivable | $- | $2092 |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**UNAUDITED**

**1. NATURE OF OPERATIONS**

PROVEN Group, Inc. (the "company") is a corporation formed on May 15, 2017 under the laws of the State of Delaware. The company consists of Proven Skincare ("Proven") and Noteworthy Holdings, Inc. ("Noteworthy"). Proven sells customized skincare products through its website and online platform to individual customers directly. Noteworthy offers personalized fragrance products through its website and online platform directly to customers. The company is headquartered in St. Petersburg, Florida.

**2. GOING CONCERN**

The company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt and the company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The company has not generated profits since inception, and has sustained net losses of $7,951,399 and $2,229,299 for the six months ended June 30, 2025 and 2024, respectively.

These factors raise substantial doubt about the Company's ability to continue as a going concern. During the next 12 months, the Company intends to fund its operations through its operational activities, current capital on hand, as well as other financing that may be available to us. We, therefore, believe that any substantial doubt about the Company's ability to continue as a going concern has been alleviated. The Company's ability to continue as a going concern for the next 12 months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional capital financing.

**3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of Presentation***

The accounting and reporting policies of the company conform to accounting principles generally accepted in the United States of America ("GAAP"). The company's fiscal year is December 31.

During the year ended December 31, 2024, the Company changed its accounting policy regarding the classification of outbound freight associated with shipping goods to customers. Previously, these costs were reported within operating expenses, more specifically in sales and marketing expenses. Under the new policy, these costs are included in cost of revenue. Management believes this presentation better reflects the costs associated with shipping customer orders. Prior periods have been reclassified to conform to the current year presentation.

 ****

***Use of Estimates***

The preparation of the company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, inventory, revenue recognition, the valuations of common stock, and future equity obligations. The company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

 ****

***Concentrations of Credit Risk***

Financial instruments that potentially subject the company to concentrations of credit risk consist principally of cash and cash equivalents. The company generally maintains balances in various operating accounts at financial institutions that management believes to be of high credit quality, in amounts that may exceed federally insured limits. The company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Cash and Cash Equivalents***

 ****

The company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

***Fair Value Measurements***

Certain assets and liabilities of the company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

● Level 1—Quoted prices in active markets for identical assets or liabilities.

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques.

The carrying values of the company's accounts receivable, prepaid expenses, accounts payable, and accrued expenses and approximate their fair values due to the short maturity of these instruments. The company's future equity obligations are carried at fair value, determined based on Level 3 inputs in the fair value hierarchy described above (see Notes 6 and 9).

***Inventory***

Inventories consist of components, finished goods, and products in transit from the company's suppliers. Costs of finished goods inventories include all costs incurred to bring inventory to its current condition, including inbound freight and duties. Inventory is recorded at the lower of cost or net realizable value using the specific identification method. If the company determines that the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to cost of goods sold to reflect the lower of cost or net realizable value. If actual market conditions are less favorable than those projected by the company, further adjustments may be required that would increase the cost of goods sold in the period in which such a determination was made.

As of June 30, 2025 and December 31, 2024, inventory included approximately $0 and $210,664 in transit, respectively.

***Acquisitions, Goodwill and Other Intangible Assets***

 ****

The company allocates the cost of an acquired business to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess value of the cost of an acquired business over the estimated fair value of the assets acquired and liabilities assumed is recognized as goodwill. The company uses a variety of information sources to determine the value of acquired assets and liabilities, including: identifiable intangibles and inventories; and legal counsel or other experts to assess the obligations associated with legal, environmental or other claims.

Goodwill and indefinite-lived intangibles are not amortized but are instead evaluated annually for impairment as part of the company's annual financial review, or when indicators of a potential impairment are present. The annual test for impairment performed for goodwill can be qualitative or quantitative, taking into consideration certain factors surrounding the fair value of the goodwill including, level by which fair value exceeded carrying value in the prior valuation, as well as macroeconomic factors, industry conditions and actual results at the test date.

The company evaluates indefinite-lived intangible assets, which consist of trademarks, for impairment on an annual basis. Similar to goodwill, the impairment test can be qualitative or quantitative, taking into consideration certain factors surrounding the fair value of the brand names including, level by which fair value exceeded carrying value in the prior valuation, as well as macroeconomic factors, industry conditions and actual results at the test date.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Revenue Recognition***

The company determines revenue recognition through the following steps in accordance with ASC 606, *Revenue from Contracts with Customers* (ASC 606):

● Identification of a contract with a customer;

● Identification of the performance obligations in the contract;

● Determination of the transaction price;

● Allocation of the transaction price to the performance obligations in the contract; and

● Recognition of revenue when or as the performance obligations are satisfied.

Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the company's customers in an amount that reflects the consideration expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance.

The company derives its revenue solely from e-commerce transactions, which is considered a single performance obligation. Revenue is recognized at the time the product is shipped to the customer, which is the point in time when control is transferred.

The company deducts discounts, sales tax, and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued expenses until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in sales and marketing expense and are therefore not evaluated as a separate performance obligation.

***Contract Liability***

Contract liabilities are recorded when a customer pays consideration, or the company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer and thus represent the company's obligation to transfer the good or service to the customer at a future date. The company's contract liabilities are included as deferred revenue on the balance sheets and consist of (i) payments received in advance of product delivery to the customer and (ii) the promise of future products to be delivered to existing customers. As of June 30, 2025 and December 31, 2024, total contract liabilities were $326,787 and $432,063, respectively. The company expects deferred revenue for all contract liabilities to be recognized within one year.

***Cost of Revenues***

Cost of revenue consists of the costs of inventory sold, packaging materials costs, inbound freight, and customs and duties. In situations where promotional products are provided by the company to its customers at the same time as the related saleable product, the cost of these promotional products are recognized as a cost of revenue.

During the year ended December 31, 2024, the Company changed its accounting policy regarding the classification of outbound freight associated with shipping goods to customers. Previously, these costs were reported within operating expenses, more specifically in sales and marketing expenses. Under the new policy, these costs are included in cost of revenue. Management believes this presentation better reflects the costs associated with shipping customer orders. Prior periods have been reclassified to conform to the current year presentation. See basis of presentation disclosure above.

As a result, the Company's calculation of gross profit has changed and will be lower but net operating loss will remain consistent to prior years.

 ****

***Sales and Marketing***

Sales and marketing expenses include fulfillment center operations, third-party logistics costs, and payment processing fees, as well as marketing and advertising costs.

The Company no longer includes outbound freight associated with shipping goods to customers as a component of sales and marketing expenses and instead recognizes these costs as a component of cost of net revenues.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***General and Administrative Expenses***

General, and administrative expenses consist primarily of compensation and benefits costs, professional services, and information technology.

***Advertising Costs***

Advertising costs are included in sales and marketing expenses and are expensed as incurred. Advertising costs were $3,321,418 and $5,659,785 for the six months ended June 30, 2025 and 2024, respectively.

 ****

***Research and Development Costs***

Costs related to the development of the company's products and future offerings are included in research and development expenses and are expensed as incurred.

 ****

***Future Equity Obligations***

The company accounts for its Simple Agreements for Future Equity ("SAFEs") as derivative liabilities under the FASB's ASC section 815-10 and ASC section 815-40.

***Deferred Offering Costs***

The company complies with the requirements of ASC 340, *Other Assets and Deferred Costs*, with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed.

***Stock-Based Compensation***

The company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method. For awards with performance-based vesting conditions, the company records the expense if and when the company concludes that it is probable that the performance condition will be achieved.

The company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's payroll costs are classified or in which the award recipient's service payments are classified.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The company historically has been a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. The company recognizes forfeitures as they occur as there is insufficient historical data to accurately determine future forfeitures rates. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

 ****

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

***Income Taxes***

The company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will not be realized. The company assesses its income tax positions and records tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the consolidated financial statements.

***Net Loss per Share***

 ****

Net earnings or loss per share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of June 30, 2025 and December 31, 2024, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | **(unaudited)** | |
| Series A-2 Preferred Stock (convertible to common stock) | 3231280 | 3231280 |
| Series A Preferred Stock (convertible to common stock) | 446493 | 446493 |
| Series Seed Preferred Stock (convertible to common stock) | 17582397 | 17582397 |
| Preferred and common stock warrants | 114478 | 139478 |
| Stock options | 19679899 | 12534693 |
| &nbsp;&nbsp;&nbsp;Total potentially dilutive shares | 41054547 | 33934341 |

---

As of June 30, 2025, there was an indeterminable number of shares that were potentially dilutive based on the company's outstanding future equity obligations (see Note 9).

 ****

***Recently Issued and Adopted Accounting Pronouncements***

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the company will adopt those that are applicable under the circumstances.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**4. RELATED PARTIES** 

On March 28, 2024, the company converted its liability due to the co-founders, representing proceeds from the Regulation A offering, into loan payables, separate to each co-founder. As of June 30, 2025 and December 31, 2024, the total of both liabilities, less allocated offering costs and expenses, is $762,540 and $740,876, respectively. Interest will accrue at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

**5. FAIR VALUE MEASUREMENTS**

The company's financial assets and liabilities are subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:

---

| | |
|:---|:---|
|  | **Future Equity**<br>**Obligations** |
| Balance, December 31, 2024 | $500010 |
| Issuance of future equity obligations for proceeds |  |
| Payment for, and cancellation of, future equity obligations | - |
| Balance, June 30, 2025 (unaudited) | $500010 |

---

The company measures the future equity obligations at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the company believes would be made by a market participant in making the same valuation. The company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the future equity obligations related to updated assumptions and estimates are recognized within the statements of operations.

The future equity obligations may change significantly as additional data is obtained, impacting the company's assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in the current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the company's results of operations in future periods.

The company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the future equity obligations, including a liquidity event or future equity financing. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table presents changes in Level 3 liabilities measured at fair value for the six months ended June 30, 2025 and the year ended December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of June 30, 2025 (unaudited):** | **Fair Value Measurements<br> as of June 30, 2025 (unaudited):** | **Fair Value Measurements<br> as of June 30, 2025 (unaudited):** | **Fair Value Measurements<br> as of June 30, 2025 (unaudited):** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $- | $- | $500010 | $500010 |
|  | $- | $- | $500010 | $500010 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements <br> as of December 31, 2024:** | **Fair Value Measurements <br> as of December 31, 2024:** | **Fair Value Measurements <br> as of December 31, 2024:** | **Fair Value Measurements <br> as of December 31, 2024:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $- | $- | $500010 | $500010 |
|  | $- | $- | $500010 | $500010 |

---

**6. PREPAID EXPENSES AND OTHER CURRENT ASSETS**

Prepaid expenses and other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | **(unaudited)** | |
| Prepaid inventory and deposits | $533038 | $259851 |
| Income Tax | 183750 |  |
| Software | 81287 | 128646 |
| Other | 76677 | 108817 |
|  | $874752 | $497314 |

---

**7. PROPERTY AND EQUIPMENT, NET**

The following is a summary of property and equipment, net:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
|  | **(unaudited)** | |
| Furniture and Fixtures | $- | $- |
| Computer equipment | 5795 | 5795 |
|  | 5795 | 5795 |
| Less: Accumulated depreciation | (4829) | (3863) |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $966 | $1932 |

---

Depreciation expense was $966 and $2,557 for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2024, the company disposed of $44,260 of furniture and fixtures and recorded loss on sale of furniture and fixtures of $40,016 in the consolidated statements of operations.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

 

**8. DEBT**

*Loans Payable*

During the year ended December 31, 2022, the Company received total proceeds of $9,573,653 from the same lender from 5 financings. The Company paid back fixed recurring monthly amounts over the 12-24 month periods relating to each financing. The loans bore interest from 7% - 14% and matured at various times between January 31, 2023 and August 2, 2024. During the six-month period ended June 30, 2024, the company made repayments of $1,792,529. As of June 30, 2025 and December 31, 2024, $0 remained outstanding. Interest expense for the six months ended June 30, 2024 related to these loans was $256,075.

On March 28, 2024, the company converted its liability due to the co-founders, representing proceeds from the Regulation A offering, into loan payables, separate to each co-founder. As of June 30, 2025 and December 31, 2024, the total of both liabilities, less allocated offering costs and expenses, is $762,540 and $740,876, respectively. Interest will accrue at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

Total interest expense incurred for all loans during the six month periods ended June 30, 2025 and 2024 were $269,944 and $269,944, respectively.

**9. FUTURE EQUITY OBLIGATIONS**

There have been no issuances of future equity obligations for the six months ended June 30, 2025 and 2024.

If there is a preferred equity financing before the instrument expires or is terminated, the company will automatically issue to the investors a number of shares of either a) a number of shares of Standard Preferred Stock equal to the purchase amount divided by the cash price per share of the Standard Preferred Stock, if the pre-money valuation applicable to the new investors is less than or equal to the valuation cap; or b) a number of shares of Safe Preferred Stock equal to the purchase amount divided by the Safe Price. The Safe Price is defined as the valuation cap divided by the number of dilutive shares outstanding.

**10. STOCKHOLDERS' EQUITY**

 ****

***Preferred Stock***

The company's Amended and Restated Certificate of Incorporation, filed with the Secretary of State of the State of Delaware on October 22, 2021, authorized the company to issue a total of 29,975,795 shares of Preferred Stock, $0.00001 par value per share, of which (i) 1,077,005 shares were designated as Series Seed-1 Preferred Stock, (ii) 1,292,514 shares were designated as Series Seed-2 Preferred Stock, (iii) 30,618 shares were designated as Series Seed-3 Preferred Stock, (iv) 5,884,428 shares were designated as Series Seed-4 Preferred Stock, (v) 6,531,944 shares were designated as Series Seed-5 Preferred Stock, (vi) 2,357,622 shares were designated as Series Seed-6 Preferred Stock, (vii) 408,266 shares were designated as Series Seed-7 Preferred Stock, (viii) 6,717,483 shares were designated as Series A Preferred Stock, and (ix) 5,675,915 shares were designated as Series A-2 Preferred Stock. On the accompanying balance sheets, the various Series Seed Preferred Stock are presented in aggregate as Series Seed Preferred Stock.

As of June 30, 2025, there were (i) 1,077,005 shares of Series Seed-1 Preferred Stock issued and outstanding, (ii) 1,292,514 shares of Series Seed-2 Preferred Stock issued and outstanding, (iii) 30,618 shares of Series Seed-3 Preferred Stock issued and outstanding, (iv) 5,884,428 shares of Series Seed-4 Preferred Stock issued and outstanding, (v) 6,531,944 shares of Series Seed-5 Preferred Stock issued and outstanding, (vi) 2,357,622 shares of Series Seed-6 Preferred Stock issued and outstanding, (vii) 408,266 shares of Series Seed-7 Preferred Stock issued and outstanding, (viii) 446,143 shares of Series A Preferred Stock issued and outstanding, and (ix) 3,231,280 shares of Series A-2 Preferred Stock issued and outstanding.

 

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

*Transactions*

In six months ended June 30, 2025, the company did not have any transactions.

In six months ended June 30, 2024, the company issued 2,352 shares of Series A Preferred Stock for gross proceeds of $15,523 or $6.60 per share.

As of August 6, 2024, the Regulation A Offering was closed.

 

*Common Stock* 

On May 24, 2021, the company effectuated a 3-for-1 forward stock split of its issued and outstanding shares of common stock. Furthermore, on June 23, 2021 and October 22, 2021, the company filed an Amended and Restated Certificate of Incorporation that authorized the company to issue a total of (i) 69,740,303 shares of common stock, $0.00001 par value per share and (ii) 29,975,795 shares of preferred stock, $0.00001 par value per share. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split.

In 2025, an option holder exercised options for 30,000 shares of Common Stock for proceeds of $7,800.

***Proven Group, Inc. 2017 Stock Plan***

 ****

The company has adopted the Proven Group, Inc. 2017 Stock Plan ("2017 Plan"), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2017 Plan, as amended and restated, was 21,466,212 shares as of June 30, 2025. The option exercise price generally may not be less than the underlying stock's fair market value at the date of the grant and generally have a term of ten years. As of June 30, 2025, there were 1,094,407 shares available for grant.

A summary of information related to stock options is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted Average Exercise<br> Price** | **Intrinsic Value** |
| Outstanding as of December 31, 2024 | 12534693 | $0.78 | $72942393 |
| Granted | 7244916 | 0.77 |  |
| Exercised | (30000) | 0.49 |  |
| Forfeited | (69710) | 0.49 |  |
| Outstanding as of June 30, 2025 (unaudited) | 19679899 | $- | $114717013 |
| Exercisable as of June 30, 2025 (unaudited) | 10239632 | $0.78 | $59554381 |
| Exercisable as of December 31, 2024 | 7118019 | $0.78 | $44909313 |

---

As of June 30, 2025, the weighted average duration to expiration of outstanding options was 8.14 years.

**PROVEN Group, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
|  | **(unaudited)** | **(unaudited)** |
| Risk-free interest rate | 3.91%-4.52 | 4.21% |
| Expected term (in years) | 6.02 | 6.27 |
| Expected volatility | 55.00% | 55.00% |
| Expected dividend yield | 0% | 0% |
| Fair value per stock option | $6.06 | $5.95 |

---

The total grant-date fair value of the options granted during the six months ended June 30, 2025 and 2024 was $43,869,556 and $416,500 respectively. Stock-based compensation expense for stock options of $7,127,250 and $2,956,620, respectively, was recognized for the six months ended June 30, 2025 and 2024. During the six months ended June 30, 2025, $4,033,032 was classified in general and administrative expenses, $2,001,556 was classified in research and development expenses and $1,092,662 was classified in sales and marketing expenses in the consolidated statements of operations. During six months ended June 30, 2024, $1,715,533 was classified in general and administrative expenses, $525,838 was classified in research and development expenses and $715,249 was classified in sales and marketing expenses in the consolidated statements of operations. Total unrecognized compensation costs related to non-vested stock option awards amounted to $56,352,655 as of June 30, 2025, which will be recognized over a weighted-average period of 1.94 years.

***Warrants***

 ****

In connection with the company's Series A financing, in October 2021 the company granted 2,846,421 warrants to purchase Series A preferred stock to an investor. The warrants have an exercise price of $4.2410 per share and expire on the earlier of the first anniversary of the issuance date, the closing of an IPO or sale of the company. The warrants were valued using the Black-Scholes option pricing model using similar inputs to those described for stock options and had a grant-date fair value of $1.16 per share, or total fair value of $3,301,848. The warrants were determined to be equity classified per ASC 480-10 and were recognized as offering costs of the underlying preferred stock issued. Accordingly, the value both decreased and increased additional paid-in capital for net no effect in the consolidated financial statements.

In connection with the company's Series A financing in February 2023, the company granted 7,575 warrants to purchase Series A preferred stock to an investor. The warrants have an exercise price of $6.60 per share and expire on the earlier of the first anniversary of the issuance date, the closing of an IPO or sale of the company. The warrants were valued using the Black-Scholes option pricing model using similar inputs to those described for stock options and had a grant-date fair value of $0.05 per share, or total fair value of $379. The warrants were determined to be equity classified per ASC 480-10 and were recognized as offering costs of the underlying preferred stock issued. Accordingly, the value both decreased and increased additional paid-in capital for net no effect in the consolidated financial statements.

As of June 30, 2025, the company had 80,135 preferred stock warrants outstanding and 34,343 common warrants outstanding.

**11. COMMITMENTS AND CONTINGENCIES**

 ****

***Sales Tax***

The company reviews its sales tax nexus on an at-least annual basis, and is currently registered in local jurisdictions, provinces, and states where it has physical, economic, or other nexus. The company collects sales tax at point of sale and remits sales on a monthly, quarterly, or annual cadence. Because of the timing difference between sales tax collection and remittance, the company maintains a sales tax liability of $158,900 and $234,543 as of June 30, 2025 and December 31, 2024, respectively.

 ****

***Contingencies***

The company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition, or results of operations.

**12. SUBSEQUENT EVENTS**

Management has evaluated subsequent events through September 25, 2025, the date the consolidated financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these consolidated financial statements.

**ITEM 4. 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.** | **Exhibit Description** |
| 2.1 | Amended and Restated Certificate of Incorporation (Filed with the Form 1-A DOS of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename4.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename4.htm) |
| 2.2 | Second Amended and Restated Bylaws (Filed with the Form 1-APOS of the Company and available here,[https://www.sec.gov/Archives/edgar/data/1777318/000121390023065133/ea183003ex2-2_provengroup.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023065133/ea183003ex2-2_provengroup.htm) |
| 2.3 | Certificate of Amendment of Amended and Restated Certificate of Incorporation (Filed with the Form 1-U of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023036499/ea178015-1u_provengroup.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023036499/ea178015ex2-3_provengroup.htm) |
| 3.1 | Form of Selling Stockholder Irrevocable Power of Attorney (Filed with the Form 1-A DOS of the Company and available here,[https://www.sec.gov/Archives/edgar/data/1777318/000121390021035025/ea143542ex3-1_lifespecta.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390021035025/ea143542ex3-1_lifespecta.htm) |
| 3.2 | Investors' Rights Agreement (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-2_lifespectac.htm) \*](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-2_lifespectac.htm) |
| 3.3 | Voting Agreement (Filed with the Form 1-K of the Company and available here,[https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-3_lifespectac.htm) \*](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-3_lifespectac.htm) |
| 3.4 | Right of First Refusal and Co-Sale Agreement (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-4_lifespectac.htm)\*](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-4_lifespectac.htm) |
| 6.1 | 2017 Amended and Restated Stock Plan (Filed with the Form 1-A DOS of the Company and available here,[https://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename8.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename8.htm) |
| 6.2 | Unsecured Promissory Note – Ming Zhao (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-2_proven.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-2_proven.htm) |
| 6.3 | Unsecured Promissory Note – Zaoshi Yuan (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-3_proven.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-3_proven.htm) |
| 6.4 | [Offer letter, as amended -- Marc Chapman](ea025868501ex6-4_provengroup.htm) |

---

**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.

**PROVEN GROUP, Inc.**

---

| |
|:---|
| /s/ Marc Chapman |
| President |
| Date: September 25, 2025 |

---

Pursuant to the requirements of Regulation A, 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/ Zaoshi Yuan |
| Principal Financial Officer and <br> Principal Accounting Officer |
| Date: September 25, 2025 |

---

## Ex1Sa-6

**Exhibit 6.4**

**PROVEN GROUP, INC.**

**TITLE AND COMPENSATION AGREEMENT AND RELEASE**

This Title and Compensation Agreement and Release (this "**Agreement**") is made by and between Marc Chapman ("**Employee**") and Proven Group, Inc., a Delaware corporation (the "**Company**") (collectively referred to as the "**Parties**" or individually referred to as a "**Party**"). All capitalized terms used but not defined herein shall have the meanings as defined in the Offer Letter (as defined below), unless otherwise provided.

**RECITALS**

WHEREAS, the Company and Employee entered into that certain Offer Letter dated May 28, 2024 (the "**Offer Letter**"), pursuant to which Employee was offered the role of President of the Company.

WHEREAS, the Company and Employee desire to change Employee's title to Chief Executive Officer of the Company and, in connection therewith, set forth Employee's eligibility for additional compensation.

WHEREAS, the Company and Employee have entered into two Stock Option Agreements, each dated September 5, 2024 (the "**Option Agreement Effective Date**"), granting Employee the option to purchase shares of the Company's common stock, each subject to the terms and conditions of the Company's Amended and Restated 2017 Stock Plan and the respective Stock Option Agreements (together with any amendments, restatements, modifications or other supplements, collectively the "**Option Agreements**").

WHEREAS, the Company and Employee desire to clarify and acknowledge the terms of the Option Agreements.

NOW, THEREFORE, in consideration of the mutual promises made herein, the Company and Employee hereby agree as follows:

**COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1. **<u>Title Change; Compensation and Equity Increases</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>Title</u>. Promptly following the execution of this Agreement by both Parties, the Company will recommend to the Board that Employee be elected as the Company's Chief Executive Officer. Employee will report to the Board of Directors of the Company, via direct reporting to the chairperson(s) of the Board, which will initially be Ming Zhao.

&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>Base Salary</u>. As of March 1, 2025 (the "**Compensation Change Date**"), Employee's base salary shall be increased to $310,000 per year.

&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>Bonus</u>. In connection with the changes to Employee's title and base salary, and in addition to the performance bonus (as provided in Section 3 of the Offer Letter), Employee shall become eligible to receive an additional one-time cash bonus of $20,000 (the "**CEO Bonus**"), which will be based on Company and individual performance in relation to certain key performance indicators agreed to in writing by the Board (currently understood by Employee and the Company to be $38,000,000 in gross Company revenue and $800,000 in Company EBITDA). To earn and be eligible to receive the CEO Bonus, Employee must continue to be an employee in good standing on the date the CEO Bonus is paid, which is anticipated to be no later than 30 days following the end of the Company's fiscal year for 2025. Employee hereby acknowledges and agrees that nothing contained herein confers upon Employee any right to an annual bonus in any year, and that whether the Company pays Employee an annual bonus and the amount of any such annual bonus will be determined by the Board in its sole discretion.

&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>Equity</u>. Furthermore, subject to approval by the Board, the Company will award Employee the opportunity to acquire an additional 1,722,242 shares of the Company's Common Stock (the "**Additional Equity**"). 1/4th of the Additional Equity will vest on the 1-year anniversary of the Compensation Change Date, and 1/48th of the Additional Equity will vest on each monthly anniversary thereafter, subject to Employee's continuous service with the Company through each vesting date. Additionally, 100% of the unvested Additional Equity shall immediately become fully vested if a Change in Control (as defined in the Offer Letter) occurs during Employee's continuous service with the Company, provided that Employee enter into a release of claims in favor of the Company in a format acceptable to the Company. The purchase or exercise price per share, or per share value of the Additional Equity, will be equal to the fair market value per share of the Company's Common Stock on the date the Additional Equity is granted, as determined by the Board in good faith. There is no guarantee that the Internal Revenue Service will agree with this value. Employee should consult with Employee's own tax advisor concerning the tax consequences associated with accepting the Additional Equity. The Additional Equity will be subject to the terms and conditions set forth in the Company's equity incentive plan (the "**Plan**") and the Company's standard forms of agreements under the Plan. The Company reserves the right to award the Additional Equity as a stock option, a stock purchase right, or a restricted stock award. Subject to the discretion of the Board, Employee may be eligible to receive additional awards of equity from time to time in the future, on such terms and subject to such conditions as the Board shall determine as of the date of any such grant.

&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>Offer Letter</u>. These changes to Employee's title and total compensation will be subject to adjustment from time to time pursuant to the Company's compensation policies in effect. All other terms in the Offer Letter will remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Option Agreements</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>Acknowledgement</u>. Notwithstanding anything set forth in the Option Agreements, Employee acknowledges and agrees that the intent of the Employee and Company was and is that the definition of "Change in Control" set forth in the Option Agreements to be the same as the definition of "Change in Control" set forth in the Offer Letter: "Change in Control" has the definition set forth in the Plan; provided, however, that the aggregate deal consideration for such transaction must result in no less than $100,000,000.00 USD of value, as reasonably determined by the Board, tendered to the Company in exchange for its capital stock or assets (the "**Change in Control Definition**"). Employee acknowledges and accepts that Company has corrected the Option Agreements after the Option Agreement Effective Date to reflect the Change in Control Definition agreed up by Employee and Company in the Offer Letter.

&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>Release of Claims</u>. Employee, on Employee's own behalf and on behalf of Employee's respective heirs, family members, executors, agents, and assigns, hereby and forever releases the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, professional employer organization or co-employer, insurers, trustees, divisions, subsidiaries, and predecessor and successor corporations and assigns (collectively, the "**Releasees**") from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to the Option Agreements that Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the date both Parties have executed this Agreement, including but not limited to any changes to the Option Agreements after the Option Agreement Effective Date or that the definition of "Change in Control" in the Option Agreements did not or does not include the following: "provided, however, that the aggregate deal consideration for such transaction must result in no less than $100,000,000.00 USD of value, as reasonably determined by the Board, tendered to the Company in exchange for its capital stock or assets."

Employee agrees that the release set forth in this Section 2(b) (Release of Claims) shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released as a matter of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>California Civil Code Section 1542</u>.** Employee acknowledges that Employee has been advised to consult with legal counsel and is familiar with the provisions of California Civil Code Section 1542, a statute that otherwise prohibits the release of unknown claims, which reads as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

Employee, being aware of California Civil Code Section 1542, agrees to expressly waive any rights Employee may have thereunder (or if Employee is not located in California, any applicable equivalent thereof), as well as under any other statute or common law principles of similar effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Severability</u>.** In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Entire Agreement</u>.** This Agreement represents the entire agreement and understanding between the Company and Employee concerning the subject matter of this Agreement, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter of this Agreement, with the exception of the Offer Letter Agreement and the Option Agreements, as modified or superseded herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>No Oral Modification</u>.** This Agreement may only be amended in a writing signed by Employee and an authorized officer of the Company other than Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Governing Law</u>.** This Agreement shall be governed by the laws of the State of California, without giving effect to the principles of conflicts of law that may result in the application of the laws of any jurisdiction other than California. Employee expressly consents to personal and exclusive jurisdiction and venue of the state and federal courts located in San Francisco, California.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Counterparts</u>.** This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and all of which together shall constitute one and the same agreement. Counterparts may be delivered via email or other transmission method (including pdf or any electronic signature complying with applicable law) and any counterpart so delivered shall be deemed valid and effective for all purposes.

[*Remainder of Page Blank; Signature Page Follows*]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Voluntary Execution of Agreement</u>.** Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee's claims against the Company and any of the other Releasees. Employee acknowledges 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; (a) Employee has read 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;(b) Employee has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of Employee's own choosing, at Employee's own expense, or has elected not to retain legal counsel;

&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) Employee understands the terms and consequences of this Agreement and of the releases it contains; 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;(d) Employee is fully aware of the legal and binding effect of this Agreement and Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

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| | |
|:---|:---|
| **EMPLOYEE:** | **EMPLOYEE:** |
| Sign: | **/**s**/** Marc Chapman |
| Name: | Marc Chapman |
| Dated: | 4/17/2025 |

---

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| PROVEN GROUP, INC. | PROVEN GROUP, INC. |
| By: | **/**s**/** Zaoshi Yuan |
| Name: | Zaoshi Yuan |
| Title: | Chief Financial Officer |
| Dated: | April 26, 2025 |

---

(Signature Page to Title and Compensation Agreement and Release)