# EDGAR Filing Document

**Accession Number:** 0001661779
**File Stem:** 0001104659-26-076871
**Filing Date:** 2026-6
**Character Count:** 494934
**Document Hash:** 30aee499794187f719a7db67fabe991e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-076871.hdr.sgml**: 20260624

**ACCESSION NUMBER**: 0001104659-26-076871

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20260624

**DATE AS OF CHANGE**: 20260623

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** StartEngine Inc.
- **CENTRAL INDEX KEY:** 0001661779
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 000000000
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12776
- **FILM NUMBER:** 261112349

**BUSINESS ADDRESS:**
- **STREET 1:** 4100 WEST ALAMEDA AVENUE
- **STREET 2:** 3RD FLOOR
- **CITY:** BURBANK
- **STATE:** CA
- **ZIP:** 91505
- **BUSINESS PHONE:** 800-317-2200

**MAIL ADDRESS:**
- **STREET 1:** 4100 WEST ALAMEDA AVENUE
- **STREET 2:** 3RD FLOOR
- **CITY:** BURBANK
- **STATE:** CA
- **ZIP:** 91505

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** STARTENGINE CROWDFUNDING, INC.
- **DATE OF NAME CHANGE:** 20151222

## Part

**AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF THE COMPANY'S SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.**

**PRELIMINARY OFFERING CIRCULAR DATED JUNE 23, 2026**

**STARTENGINE INC.**

![](tm2618104d1_partssp1img01.jpg)

**4100 WEST ALAMEDA AVENUE, 3<sup>RD</sup> FLOOR**

**BURBANK, CALIFORNIA 91505**

**800-317-2200**

**UP TO 19,950,000 SHARES OF COMMON STOCK OFFERED BY THE ISSUER (INCLUDING UP TO<br> 3,325,000 BONUS SHARES)<br> UP TO 8,550,000 SHARES OF COMMON STOCK OFFERED BY SELLING STOCKHOLDERS<br> (INCLUDING UP TO 1,425,000 BONUS SHARES)**

**The minimum investment in this offering is 313 shares of Common Stock, or $500.80**

**The price per share of the Common Stock has been arbitrarily determined by the Company.**

**SEE "SECURITIES BEING OFFERED" AT PAGE 55**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Price to<br> Public** | **Underwriting<br> discount and<br> commissions(2)** | **Proceeds to<br> issuer (3)** | **Proceeds to<br> other<br> persons (4)** |
| Per share | $1.60 | $0.00 | $1.60 | $1.60 |
| Total Maximum | $38000000 | $0.00 | $26600000 | $11400000 |
| Total Maximum including value Bonus Shares | $45600000 | $0.00 | $38000000 | $7600000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) On a "best efforts" basis, the Company is offering up to 19,950,000 shares of Common Stock including up to 3,325,000 shares of Common Stock eligible to be issued as Bonus Shares (as defined in this Offering Circular) to investors based upon certain criteria, including investment level. The selling stockholders are offering up to 7,125,000 shares of Common Stock, including up to 1,425,000 shares of Common Stock eligible to be issued as Bonus Shares. See "Plan of Distribution and Selling Stockholders."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Neither the Company nor the selling stockholders will use commissioned sales agents or underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Does not include expenses of the offering or reflect the issuance of Bonus Shares; see "Plan of Distribution and Selling Stockholders."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The proceeds represent amounts to be paid to the selling stockholders listed in this Offering Circular. See "Plan of Distribution and Selling Stockholders."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) While neither the Company nor the selling stockholders will receive any additional consideration for the Bonus Shares issued as part of this Offering, pursuant to Rule 251(a) the total value of the Offering, as reflected here and in Part I of the Offering Statement of which this Offering Circular is part, is $45,600,000 composed of $38,000,000 is actual gross proceeds from investors, and the value of the Bonus Shares of $7,600,000. This full amount of $45,600,000 is the total amount the Company is offering towards its annual $75 million offering cap under Rule 251(a)(2).

The minimum investment amount for Common Stock is $500.80.

All investors will be required to purchase securities pursuant to a subscription agreement which appears as an Exhibit to the Offering Statement of which this Offering Circular forms a part, and which is irrevocable. This contains exclusive forum and jury waiver provisions which are similarly irrevocable; see "Risk Factors," "Securities Being Offered – Common Stock – Forum Selection Provision," and "Plan of Distribution and Selling Stockholders – Jury Trial Waiver."

**This offering (the "Offering") will terminate at the earlier of the date at which the maximum offering amount has been sold or the date at which the offering is earlier terminated by the Company at its sole discretion. At least every 12 months after this offering has been qualified by the United States Securities and Exchange Commission (the "Commission"), the Company will file a post-qualification amendment to include the Company's recent financial statements. The Offering covers an amount of securities that we reasonably expect to offer and sell within two years, although the offering statement of which this offering circular forms a part may be used for up to three years and 180 days under certain conditions.** Bryn Mawr Trust Company has been engaged as the agent to hold any funds that are tendered by investors. The offering is being conducted on a best-efforts basis without any minimum target. Provided that an investor purchases shares in the amount of the minimum investment, $500.80 (313 shares), there is no minimum number of shares that needs to be sold in order for funds to be released to the Company or selling securityholders, as applicable, and for this Offering to close, which may mean that the Company does not receive sufficient funds to cover the cost of this Offering. The Company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be made available to the Company or selling securityholders, as applicable. After the initial closing of this offering, we expect to hold closings on at least a monthly basis.

Each holder of Common Stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, except for certain matters for which only the holders of Preferred Stock vote and/or for which they are also entitled to vote as a single class. For matters where holders of Common Stock vote, they will vote together with the holders of Preferred Stock as a single class on all matters (including the election of directors) submitted to vote or for the consent of the stockholders of the Company. See "Securities Being Offered".

**Certain holders of the Company's Common Stock and Preferred Stock will continue to hold a majority of the voting power of all of the Company's equity stock at the conclusion of this Offering and therefore control the board.**

**THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC; HOWEVER THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION**

**GENERALLY NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO <u>www.investor.gov</u>.**

**This offering is inherently risky. See "Risk Factors" on page 7.**

**Sales of these securities will commence on approximately [__________], 2026.**

**The Company is following the "Offering Circular" format of disclosure under Regulation A.**

**We are an "emerging growth Company" and a "smaller reporting company" as such terms are defined under federal securities laws, and, as such have elected to take advantage of certain reduced public company reporting requirements for our prior filings and may elect to do so in future filings.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**Summary**](#ss_001) | [5](#ss_001) |
| [**Risk Factors**](#ss_002) | [7](#ss_002) |
| [**Dilution**](#ss_003) | [16](#ss_003) |
| [**Plan of Distribution and Selling Stockholders**](#ss_004) | [19](#ss_004) |
| [**Use of Proceeds to Issuer**](#ss_005) | [23](#ss_005) |
| [**The Company's Business**](#ss_006) | [25](#ss_006) |
| [**The Company's Property**](#ss_007) | [35](#ss_007) |
| [**Management's Discussion and Analysis of Financial Condition and Results of Operations**](#ss_008) | [36](#ss_008) |
| [**Directors, Executive Officers and Significant Employees**](#ps_001) | [48](#ps_001) |
| [**Compensation of Directors and Officers**](#ps_002) | [49](#ps_002) |
| [**Security Ownership of Management and Certain Stockholders**](#ps_003) | [53](#ps_003) |
| [**Interest of Management and Others in Certain Transactions**](#ps_004) | [54](#ps_004) |
| [**Securities Being Offered**](#ps_005) | [55](#ps_005) |
| [**Financial Statements**](#ps_006) | [F-1](#ps_006) |

---

*In this Offering Circular, the term "StartEngine", "we", "us", "our", or "the Company" refers to StartEngine Inc. and our subsidiaries on a consolidated basis. The terms "StartEngine Capital" or "our funding portal" refers to StartEngine Capital LLC, the terms "StartEngine Secure" or "our transfer agent" refer to StartEngine Secure LLC, the terms "StartEngine Primary" or "our broker-dealer" refer to StartEngine Primary LLC, the term "StartEngine Private" refers to StartEngine Private LLC, the term "StartEngine Private Manager" refers to StartEngine Private Manager LLC, the term "StartEngine Adviser" refers to StartEngine Adviser LLC, the term "Vinovest" refers to Vinovest, Inc." and the term "StartEngine Assets" refers to StartEngine Assets LLC.*

 

THIS OFFERING CIRCULAR 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 THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE 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. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

**SUMMARY**

The Company aims to revolutionize the startup financing model by helping both accredited and non-accredited investors invest in private companies on a public platform. StartEngine Inc. primarily operates through its wholly-owned subsidiaries, including, StartEngine Primary LLC, StartEngine Private Manager LLC, StartEngine Adviser LLC, StartEngine Capital LLC, StartEngine Secure LLC, StartEngine Assets LLC and Vinovest, Inc.

StartEngine Capital LLC is a funding portal registered with the US Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA), StartEngine Secure LLC is a transfer agent registered with the SEC. StartEngine Primary LLC was formed in October 2017 and received approval to operate as a registered broker-dealer in July 2019. On April 16, 2020, StartEngine Primary LLC received approval to operate as an alternative trading system.

Since 2023, the Company has been providing accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC, an exempt reporting adviser. Most recently, on March 17, 2026, the Company acquired Vinovest, Inc. a premium wine and whisky investment platform.

The Company's mission is to help entrepreneurs and investors achieve their dreams.

**The Offering**

The offering is for Common Stock of StartEngine Inc. The rights of the Common Stock are described more fully in "Securities Being Offered."

---

| | |
|:---|:---|
| &nbsp;&nbsp;Securities offered | &nbsp;&nbsp;Maximum of 28,500,000 shares of Common Stock, including 4,750,000 shares of Common Stock which may be offered as Bonus Shares. See "Plan of Distribution and Selling Stockholders." |
|  | &nbsp;&nbsp; Of the 28,500,000 shares available in this offering, up to 19,950,000 shares are being offered by the Company. The Company may offer up to<br> 3,325,000 additional shares of Common Stock as Bonus Shares. |
|  | &nbsp;&nbsp;Of the 28,500,000 shares available in this offering, up to 8,550,000 shares are being offered by existing stockholders. The selling stockholders may offer up to 1,425,000 shares of Common Stock as Bonus Shares. |
| &nbsp;&nbsp;Shares of Common Stock outstanding before June 23, 2026 (1) | &nbsp;&nbsp;758339621 |
| &nbsp;&nbsp;Shares of Preferred Stock outstanding before June 23, 2026 (1) | &nbsp;&nbsp;399885861 |
| &nbsp;&nbsp;Shares of Common Stock outstanding after the offering (assuming fully subscribed and maximum Bonus Shares issued) | &nbsp;&nbsp;729839621 |
| &nbsp;&nbsp;Use of proceeds | &nbsp;&nbsp;The net proceeds of this offering will be used primarily to cover marketing costs and operating expenses, including salaries to our executive officers. The details of our plans are set forth in our "Use of Proceeds" section. |

---

(1) Does not include shares issuable upon the exercise of options issued under our equity incentive plans or shares into which our Preferred Shares may convert.

**Implications of Being an Emerging Growth Company**

As an issuer with ongoing reporting requirements under the Securities Exchange Act of 1934, as amended (the "Exchange Act") with less than $1.235 billion in total annual gross revenues during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company we can take advantage of certain reduced reporting requirements and are relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

&nbsp;&nbsp;&nbsp;&nbsp;· are not required to obtain an auditor attestation on our internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

&nbsp;&nbsp;&nbsp;&nbsp;· are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as "compensation discussion and analysis");

&nbsp;&nbsp;&nbsp;&nbsp;· are not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

&nbsp;&nbsp;&nbsp;&nbsp;· are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;· may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A; and

&nbsp;&nbsp;&nbsp;&nbsp;· are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

We are taking and intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under Section 107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under Section 107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our registration statement declared was effective under the Securities Act, which occurred in June 2022, or such earlier time that we no longer meet the definition of an emerging growth company. Note that this offering, while a public offering, is not a sale of common equity pursuant to a registration statement, since the offering is conducted pursuant to an exemption from the registration requirements. In this regard, the JOBS Act provides that we would cease to be an "emerging growth company" if we have more than $1.235 billion in annual revenues, have more than $700 million in market value of our common stock held by non-affiliates, or issue more than $1 billion in principal amount of non-convertible debt over a three-year period.

Certain of these reduced reporting requirements and exemptions are also available to us due to the fact that we may qualify as a "smaller reporting company" under the SEC's rules. For instance, smaller reporting companies are not required to obtain an auditor attestation on their assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

**RISK FACTORS**

*The SEC requires the Company to identify risks that are specific to its business and its financial condition. The Company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). The risks and uncertainties described below are not the only ones we face. Additional risks and uncertainties that we are unaware of, or that we currently believe are not material, may also become important factors that adversely affect our business. Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.*

**Risk Factors Related to the Company and its Business**

**We are engaged in an industry that continues to develop and rapidly change, which requires our company to be flexible in executing its business plans. We have not consistently been profitable and may not do so in the near future.**

StartEngine was formed in 2014 and is still working on fine tuning its business plan to one that will enable it to consistently generate profits on an annual basis and to maintain profitability. Though we have been operating for over a decade, we are still evolving aspects of business model, including modifying our revenue models, adding additional products (e.g., StartEngine Secondary, StartEngine Private, and Vinovest), and modifying our current offerings in light of regulatory changes and/or interactions with regulators. Over the past few years, StartEngine Private has surpassed our previous products in terms of revenue generation and profitability and we may not be able to maintain that. For instance, we were not profitable over the past quarter. Our current and proposed operations are subject to all the business risks associated businesses in industries that are developing and rapidly changing. These include likely fluctuations in operating results as the Company reacts to developments in its market, manages its growth, and develops new services as well as the entry of competitors into the market. Accordingly, the Company's operating history may not be indicative of future prospects. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. There is no assurance that we will be consistently profitable or generate sufficient annual revenues to pay dividends to the holders of our shares.

**We operate in a regulatory environment that is evolving and uncertain.**

The regulatory framework for online capital formation or crowdfunding is relatively new. The regulations that govern our operations have been in existence for a limited period. Further, there are constant discussions among legislators and regulators with respect to changing the regulatory environment. New laws and regulations could be adopted in the United States and abroad. Further, existing laws and regulations may be interpreted in ways that would impact our operations, including relating to security ownership and transferability, how we communicate and work with investors and the companies that use our platform's services and the types of securities that our clients can offer and sell on our platform. For instance, in prior years, there have been several attempts to modify the current regulatory regime. Some of those suggested reforms could make it easier for anyone to sell securities (without using our services). Any such changes would have a negative impact on our business.

**We operate in a highly regulated industry.**

We are subject to extensive regulation and failure to comply with such regulation could have an adverse effect on our business. Our subsidiaries include: StartEngine Primary LLC is registered as a broker-dealer and operates an alternative trading system under the brand "StartEngine Secondary", StartEngine Secure LLC is registered as a transfer agent; and our subsidiary StartEngine Adviser LLC is registered as an Exempt Reporting Adviser; and our subsidiary. As a broker-dealer, we have to comply with stringent regulations, and the operation of our broker-dealer and alternative trading system services exposes us to a significant amount of liability. Furthermore, new lines of business may subject us to other regulatory regimes, such those regulating investment advisers, including the Investment Advisers Act of 1940, if we fail to remain in compliance with certain exemptions. Further we have seen increased regulations in this industry from regulators (both federal and state) and FINRA as well as private rights of actions and threatened litigation in the industry. In light of this, we expect increased compliance costs as well as potential subjecting us to additional liabilities. In addition, some of the restrictions and rules applicable to our subsidiaries could adversely affect and limit some of our business plans of other parts of our business.

**We were approved as a broker-dealer in 2019, launched our alternative trading system in 2020, became a "carrying" broker-dealer in 2021, became an exempt reporting adviser in 2024, and are still in the process of adapting our business model and pricing structure.**

As a broker-dealer, we not only are subjected to federal and state requirements but also have need to comply with the requirements of FINRA, the self-regulatory organization, that apply to broker-dealers and the regulations that apply to the operation of alternative trading systems. In addition, we have expanded the scope of our operation including launching our alternative trading system in May 2020, and became a "carrying" broker-dealer at the end of September 2021, which increased our net capital requirements. In 2023, we launched StartEngine Private, which required us to file as an exempt reporting adviser in early 2024 and may require us to become a registered investment adviser in the future. We are still in the process of adapting to these changes, but there have been and will be increased costs, including the need to hire personnel with specific qualifications and pay them in accordance with their experience. We are subjected to periodic examinations and we will be required to change aspects of our business processes and communications in response to the findings of those examinations. Becoming a broker-dealer and/or reporting adviser has and will continue to lead to increases in our compliance costs as well as increases in our exposure to liabilities, including subjecting us to liability for misstatements made by issuers utilizing our services.

**We may be liable for misstatements made by issuers.**

Under the Securities Act and the Exchange Act, issuers making offerings (including our StartEngine Private issuers), as well as those through our broker-dealer, and historically through our funding portal, may be liable for untrue statements of material facts or for omitting information that could make the statements misleading. Our broker-dealer, may be liable for statements by issuers utilizing our services in connection with Regulation A, Regulation CF and Regulation D offerings. Further, for prior offerings our funding portal may be liable for statements by issuers utilizing our services in connection with Regulation CF offerings. Even though due diligence defenses may be available for our broker-dealer; there can be no assurance that if we were sued, we would prevail. Further, even if we do succeed, lawsuits are time consuming and expensive, and being a party to such actions may cause us reputational harm that would negatively impact our business. Moreover, even if we are not liable or a party to a lawsuit or enforcement action, some of our clients have been and will be subject to such proceedings. Any involvement we may have, including responding to document production requests, may be time-consuming and expensive as well.

**Our subsidiaries have facilitated the ownership, transfer, or administration of significant assets on behalf of clients and affiliated parties, we may be exposed to claims, liabilities, disputes, or regulatory scrutiny relating to such assets.**

Our subsidiary, Vinovest, Inc. has facilitated the storage and ownership of nearly $100 million in fine wine and whisky held in third-party bonded warehouses, licensed warehouses, and licensed distilleries in multiple jurisdictions. Further, StartEngine Private has securitize hundreds of millions of dollars in securities of other companies. These activities could subject us to allegations involving recordkeeping errors, unauthorized transfers, valuation disputes, cybersecurity incidents, fraud, compliance failures, or breaches of fiduciary, contractual, or other duties. In certain circumstances, we may be required to defend claims or incur costs even where we are not ultimately found liable. Any such claims, liabilities, investigations, or disputes could result in substantial legal expenses, reputational harm, operational disruption, regulatory penalties, or financial losses, which could materially adversely affect our business, financial condition, and results of operations.

**We have identified material weaknesses in our internal control over financial reporting. Any failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties.**

Section 404 of the Sarbanes-Oxley Act of 2002 requires that we maintain internal control over financial reporting that meets applicable standards. We may err in the design or operation of our controls, and all internal control systems, no matter how well designed and operated, can provide only reasonable assurance that the objectives of the control system are met. Because there are inherent limitations in all control systems, there can be no assurance that all control issues have been or will be detected. If we are unable, or are perceived as unable, to produce reliable financial reports due to internal control deficiencies, investors could lose confidence in our reported financial information and operating results, which could result in a negative market reaction and a decrease in our stock price.

In the past we have had to restate our financial statements, and during preparation for financial reporting related to the year ended December 31, 2025, the Company discovered certain errors in the preparation of the financial statements. 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. Accordingly, the Company made certain corrections to the financial statements for the year ended December 31, 2025.

Management concluded that the Company's internal control over financial reporting, as defined by Sections 13a-15(f) and 15d-15(f) of the Exchange Act, was not effective as of December 31, 2025, including due to the following identified material weaknesses:

&nbsp;&nbsp;&nbsp;&nbsp;· Lack of segregation
of duties in the recording and posting of journal entries;

&nbsp;&nbsp;&nbsp;&nbsp;· Control deficiency in
revenue recognition, relating to investments received as compensation; and

&nbsp;&nbsp;&nbsp;&nbsp;· Failure to properly
reconcile investment shares the Company has received as compensation.

Management has included a report on its assessment of internal control over financial reporting, including a description of identified material weaknesses, remediation efforts resulting in changes to internal control over financial reporting, and plans for further remediation in Item 9A, "Controls and Procedures" of our Form 10-K.

If we identify new material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner, if we are unable to assert that our internal control over financial reporting is effective, we may be late with the filing of our periodic reports, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively affected. As a result of such failures, we could also become subject to investigations by the stock exchange on which our securities are listed, the SEC, or other regulatory authorities, and become subject to litigation from investors and stockholders, which could harm our reputation, financial condition or divert financial and management resources from our core business, and would have a material adverse effect on our business, financial condition and results of operations.

**Our compliance is focused on U.S. laws and we have not analyzed foreign laws regarding the participation of non-U.S. residents.**

Some of the investment opportunities posted on our platform are open to non-U.S. residents. We have not researched all the applicable foreign laws and regulations, and we have not set up our structure to be compliant with foreign laws. It is possible that we may be deemed in violation of those laws, which could result in fines or penalties as well as reputational harm. This may limit our ability in the future to assist companies in accessing money from those investors, and compliance with those laws and regulations may limit our business operations and plans for future expansion.

**StartEngine's product offerings are relatively new in an industry that is still quickly evolving**.

The principal securities regulations that we work with, Rule 506(c), Regulation A and Regulation Crowdfunding, have only been in effect in their current form since 2013, 2015 and 2016, respectively. StartEngine's ability to continue to penetrate the market remains uncertain as potential issuer companies may choose to use different platforms or providers (including, in the case of Rule 506(c) and Regulation A, using their own online platform), or determine alternative methods of financing. Investors may decide to invest their money elsewhere. Further, our potential market may not be as large, or our industry may not grow as rapidly, as anticipated, for instance, according to the SEC, the size for the Regulation A market retracted in 2023 and remained about the same in 2024. With a smaller market than expected, we may have fewer customers. Success will likely be a factor of investing in the development and implementation of marketing campaigns, subsequent adoption by issuer companies as well as investors, and favorable changes in the regulatory environment. Finally, as more competitors enter the market, it will become more difficult to obtain business.

**We have an evolving business model.**

Our business model is one of innovation, including continuously working to expand our product lines and services to our clients, such as our expansion into the transfer agent and broker-dealer space as well as our foray into becoming an alternative trading system and acting as an exempt investment adviser for companies. It is unclear whether these services will be successful. Further, we continuously try to offer additional types of services, and we cannot offer any assurance that any of them will be successful. From time to time we may also modify aspects of our business model relating to our service offerings, for instance we are no longer focused on StartEngine Assets and securitizing collectibles in the Regulation A market and have turned our focus to the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offerings. StartEngine Private, which started in the 3rd quarter in 2023, has been our main source of revenue for the prior two year. We recently acquired another business which rather than invests in securities facilities investors purchasing fine wines and whiskeys. We cannot offer any assurance that these or any other modifications will be successful or will not result in harm to the business. We may not be able to manage this evolution effectively, which could damage our reputation, limit our growth, and negatively affect our operating results.

**As we grow our business, we may not be able to manage our growth successfully.**

If we are able to increase the scope of our business offerings, our customer base, the volume of our transactions and grow our business, we will face business risks commonly associated with rapidly growing companies, including the risk that existing management, information systems and financial and internal controls may be inadequate to support our growth. We cannot predict whether we will be able to respond on a timely basis, or at all, to the changing demands that our growth may impose on our existing management and infrastructure. For example, increasing demands on our infrastructure and management could cause any of the following to occur or increase:

&nbsp;&nbsp;&nbsp;&nbsp;· inadequate internal controls required for a regulated
entity;

&nbsp;&nbsp;&nbsp;&nbsp;· quate financial controls needed as we transition
to become a reporting company;

&nbsp;&nbsp;&nbsp;&nbsp;· delays in our ability to handle the volume of
customers, including issuers; and

&nbsp;&nbsp;&nbsp;&nbsp;· failure to properly review and supervise personnel
to make sure we are compliant with our duties as regulated entities.

This risk is illustrated by the fact that, during preparation for financial reporting related to the year ended December 31, 2025 and 2024, and based on review from the auditors, the Company discovered certain deficiencies as well as errors (specifically in revenue recognition, including related to investments received as compensation) in its previously reported quarterly financial statements for 2025. The Company's management has concluded that, in light of these deficiencies and errors, the Company's disclosure controls and procedures and internal control over financial reporting as of December 31, 2025 was not effective. To address these material weaknesses, management has devoted, and plans to continue to devote, significant effort and resources to the remediation and improvement of the Company's internal control over financial reporting. Management's report on internal control over financial reporting, a description of the material weaknesses identified, resulting changes to internal control over financial reporting, and continued plans for remediation can be found in Item 9A "Controls and Procedures" of our Form 10-K. See also the above risk factor, "We have identified material weaknesses in our internal control over financial reporting. Any failure to maintain effective internal control over financial reporting could impair the reliability of our financial statements, which in turn could harm our business, impair investor confidence in the accuracy and completeness of our financial reports and our access to the capital markets and cause the price of our common stock to decline and subject us to regulatory penalties." *If we continue to have issues and/or fail to adapt our management, information systems and financial and internal controls to our growth, or if we encounter other unexpected difficulties, our business, financial condition and operating results will suffer.*

**A majority of our gross profits is attributable to StartEngine Private.**

A substantial majority of our gross profit is derived from a single line of business, Start Engine Private. As a result, our operating results are highly dependent on the continued performance and viability of this line. If we were to experience disruptions affecting this business—including, but not limited to, adverse regulatory developments, changes in applicable laws or interpretations, licensing or compliance issues, or market or competitive pressures—we may be required to modify, curtail, or discontinue such operations. Any such event could materially and adversely affect our business, financial condition, and results of operations.

**We depend on key personnel and face challenges recruiting needed personnel.**

Our future success depends on the efforts of a small number of key personnel, including our founder and Chief Executive Officer, Howard Marks, and our compliance, engineering and marketing teams. Expanding our compliance team in response to the growth in our business and the regulatory issues we have faced to date, is essential to our success, and recruiting and training compliance personnel will place demands on financial and management resources. Our software engineer team, as well as our marketing team led by Johanna Cronin, are critical to continually innovate and improve our products while operating in a highly regulated industry. In addition, due the specialized expertise required, we may not be able to recruit the individuals needed for our business needs. There can be no assurance that we will be successful in attracting and retaining the personnel we require to operate and be innovative.

**StartEngine and its providers are vulnerable to hackers and cyber attacks.**

As an internet-based business, we may be vulnerable to hackers who may access the data of our investors and the issuer companies that utilize our platform. Further, any significant disruption in service on the StartEngine platform or in its computer systems could reduce the attractiveness of the StartEngine platform and result in a loss of investors and companies interested in using our platform. Further, we rely on a third-party technology provider to provide some of our back-up technology as well as act as our escrow agent. Any disruptions of services or cyber attacks either on our technology provider or on StartEngine could harm our reputation and materially negatively impact our financial condition and business.

**StartEngine currently relies on one vendor for escrow services.**

We currently rely on Bryn Mawr Trust Company to provide escrow services. Any change in this relationship will require us to find another escrow agent and escrow bank. This may cause us delays as well as additional costs in transitioning our technology.

**We are dependent on general economic conditions.**

Our business model is dependent on investors investing in the companies presented on our platforms. Investment dollars are disposable income. Our business model is thus dependent on national and international economic conditions. Adverse national and international economic conditions may reduce the future availability of investment dollars, which would negatively impact our revenues and possibly our ability to continue operations. It is not possible to accurately predict the potential adverse impacts on the Company, if any, of current economic conditions on its financial condition, operating results and cash flow.

**We face significant market competition.**

We facilitate online capital formation and private securities transactions. Though online capital formation is a relatively new market, we compete against a variety of entrants in the market as well likely new entrants into the market. Some of these follow a regulatory model that is different from ours and might provide them competitive advantages. New entrants could include those that may already have a foothold in the securities industry, including some established broker-dealers. Further, online capital formation is not the only way to address helping start-ups raise capital, and the Company has to compete with a number of other approaches, including traditional venture capital investments, loans and other traditional methods of raising funds and companies conducting crowdfunding raises on their own websites. Additionally, some competitors and future competitors may be better capitalized than us, which would give them a significant advantage in marketing and operations.

Moreover, as we continue to expand our offerings, including providing administrative services to issuers, securitizing various asset classes and transfer agent services, we will continue to face headwinds and compete with companies that are more established and/or have more financial resources than we do and/or new entrants bringing disruptive technologies and/or ideas.

Finally, the Company faces increasing competition via StartEngine Private, which the Company provides accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offering. As new competitors enter the market, acquisition of shares will become more difficult.

**We may not be able to protect all of our intellectual property.**

Our profitability may depend in part on our ability to effectively protect our proprietary rights, including obtaining trademarks for our brand names, protecting our products and websites, maintaining the secrecy of our internal workings and preserving our trade secrets, as well as our ability to operate without inadvertently infringing on the proprietary rights of others. There can be no assurance that we will be able to obtain future protections for our intellectual property or defend our current trademarks and future trademarks and patents. Further, policing and protecting our intellectual property against unauthorized use by third parties is time-consuming and expensive, and certain countries may not even recognize our intellectual property rights. There can also be no assurance that a third party will not assert infringement claims with respect to our products or technologies. Any litigation for both protecting our intellectual property or defending our use of certain technologies could have material adverse effect on our business, operating results and financial condition, regardless of the outcome of such litigation.

**Our revenues and profits (if any) are subject to fluctuation.**

It is difficult to accurately forecast our revenues and operating results, and these could fluctuate in the future due to a number of factors. These factors may include adverse changes in: number of investors and amount of investors' dollars, the success of world securities markets, general economic conditions, our ability to market our platform to companies and investors, headcount and other operating costs, and general industry and regulatory conditions and requirements. The Company's operating results may fluctuate from year to year due to the factors listed above and others not listed. At times, these fluctuations may be significant and could impact our ability to operate our business.

**Natural disasters and other events beyond our control could materially adversely affect us.**

Natural disasters or other catastrophic events may cause damage or disruption to our operations, international commerce and the global economy, and thus could have a strong negative effect on us. Our business operations are subject to interruption by natural disasters, fire, power shortages, pandemics and other events beyond our control. Although we maintain crisis management and disaster response plans, such events could make it difficult or impossible for us to deliver our services to our customers and could decrease demand for our services.

**Risk Factors Related to the Common Stock and this Offering**

**There is uncertainty as to the amount of time it will take for us to deliver securities to investors under this offering.**

The process for issuance of Common Stock is set out in "Plan of Distribution and Selling Stockholders." There may be a delay between the time you execute your subscription agreement and tender funds and the time securities are delivered to you, while we and the Escrow Agent complete our subscription and due diligence process and we submit a disbursement request to the Escrow Agent. Although, based on our experience in our prior offering, investors who provide the information required by the subscription agreement and give accurate instructions for the payment of the subscription price should receive their securities in no more than six months, we cannot guarantee that you will receive your securities by a specific date or within a specific timeframe.

**There is no minimum amount set as a condition to closing this offering.**

Because this is a "best efforts" offering with no minimum, we will have access to any funds tendered. This might mean that any investment made could be the only investment in this offering, leaving the Company without adequate capital to pursue its business plan or even to cover the expenses of this offering.

**We are offering Bonus Shares, which is effectively a discount on our stock price, to some investors who purchase the Common Stock in this Offering.**

Certain investors who purchase Common Stock in this Offering are entitled to receive additional shares of Common Stock (the "Bonus Shares") that effectively provide a discount on price based on the amount invested. The number of Bonus Shares will be determined by the amount of money they invest in this Offering, having made an indication of interest prior to the commencement of this Offering, or as an investor eligible to receive the StartEngine Venture Club Bonus. An investor in our offering may be able to receive a maximum of 20% Bonus Shares. Bonus Shares will effectively act as a discount to the price at which the Company is offering its stock. For more details, including all of the Bonus Shares being offered, see "Plan of Distribution and Selling Stockholders". Therefore, the value of shares of investors who pay the full price in this offering will be immediately diluted by investments made by investors entitled to the discount, who will pay less for the same stake in the Company.

**The exclusive forum provision in the subscription agreements may have the effect of limiting an investor's ability to bring legal action against us and could limit an investor's ability to obtain a favorable judicial forum for disputes.**

Section 6 in the subscription agreement for this offering includes a forum selection provision that requires any claims against the Company based on the subscription agreement be brought in a court of competent jurisdiction in the State of New York; see "Securities Being Offered – Common Stock – Forum Selection Provision". The forum selection provision will not be applicable to lawsuits arising from the federal securities laws. The provision may have the effect of limiting the ability of investors to bring a legal claim against us due to geographic limitations. There is also the possibility that the exclusive forum provision may discourage stockholder lawsuits with respect to matters arising under laws other than the federal securities laws, or limit stockholders' ability to bring such claims in a judicial forum that they find favorable for disputes with us and our officers and directors. Alternatively, if a court were to find this exclusive forum provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business and financial condition.

**Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under the agreement.**

Investors in this offering will be bound by the subscription agreement, which includes a provision under which investors waive the right to a jury trial of any claim they may have against the Company arising out of or relating to the subscription agreement, including any claims made under the federal securities laws.

If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by a federal court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of New York, which governs the subscription agreement, in a court of competent jurisdiction in the State of California. In determining whether to enforce a contractual pre-dispute jury trial waiver provision, courts will generally consider whether the visibility of the jury trial waiver provision within the agreement is sufficiently prominent such that a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to the subscription agreement. You should consult legal counsel regarding the jury waiver provision before entering into the subscription agreement.

If you bring a claim against the Company in connection with matters arising under the subscription agreement, including claims under federal securities laws, you may not be entitled to a jury trial with respect to those claims, which may have the effect of limiting and discouraging lawsuits against the Company. If a lawsuit is brought against the Company under the subscription agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have had, including results that could be less favorable to the plaintiff(s) in such an action.

Nevertheless, if the jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms of the subscription agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of Common Stock or by us of compliance with any provision of the federal securities laws and the rules and regulations promulgated under those laws.

In addition, when our Common Stock is transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to those securities or to the transferor with regard to ownership of those securities, that were in effect immediately prior to the transfer of the Common Stock, including but not limited to the subscription agreement. Therefore, purchasers in secondary transactions will be subject to this provision.

**Voting control is the hands of a few large stockholders.**

Voting control is concentrated in the hands of a small number of stockholders. Our CEO and Chairman currently hold approximately 26% of our voting shares in aggregate, including shares of our Common Stock and (on an as-converted basis) shares of our Series Seed Preferred Stock, Series A Preferred Stock and Series Seed Preferred Stock; and two other shareholders, SE Agoura Investment LLC and The Lee Miller Trust UA 09/05/2020, own approximately 17% and 7%, respectively, of our voting shares in aggregate. None of SE Agoura Investments LLC, The Lee Miller Trust UA 09/05/2020 or their beneficial owners serve on our Board or are employees of our Company. The trust, held on behalf of Mr. Marks' family, which he does not control or beneficially own, owns approximately 2%. Those five shareholders in aggregate control approximately 53% of our voting shares and approximately 52% of our preferred stock. Those five shareholders in aggregate control approximately 52% of our voting shares and approximately 52% of our preferred stock. Holders of our Common Stock are generally not be able to influence our policies or any other corporate matter, including the election of directors, changes to our Company's governance documents, expanding the employee option pool, and any merger, consolidation, sale of all or substantially all of our assets, or other major action requiring stockholder approval. Some of the larger stockholders include, or have the right to designate, executive officers and directors of our Board. These few people and entities make all major decisions regarding the Company.

**Future fundraising may affect the rights of investors.**

In order to expand, the Company is likely to raise funds again in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the Company.

**Holders of our Preferred Stock are entitled to potentially significant liquidation preferences over holders of our Common Stock if we are liquidated, including upon a sale of our Company.**

Holders of our outstanding Preferred Stock have liquidation preferences over holders of Common Stock. This liquidation preference is paid if the amount a holder of Preferred Stock would receive under the liquidation preference is greater than the amount such holder would have received if such holder's shares of Preferred Stock had been converted to Common Stock immediately prior to the liquidation event. Holders of Series A Preferred Stock and Series T Preferred Stock are entitled to liquidation preferences superior to Series Seed Preferred Stock. If a liquidation event, including a sale of our Company, were to occur that resulted in a distribution of less than approximately $8 million, the holders of our Preferred Stock could be entitled to all proceeds of cash distributions.

**There is a limited current market for our Common Stock.**

Currently, the only marketplace for our Common Stock is and will be our alternative trading system or "ATS" branded as "StartEngine Secondary." To date, we only have limited experience selling our shares on StartEngine Secondary; and trading of our securities will only be available on StartEngine Secondary during limited periods, including periods where we do not have an open offering. To date, there has not been frequent enough trading to establish a market price. The limited volume of trading means that investors should assume that they may not be able to liquidate their investment for some time or to liquidate at their desired price. Further, it is unlikely that they will be able to pledge their shares as collateral.

**Investors will need to keep records of their investment for tax purposes.**

As with all investments in securities, investors who sell the Common Stock will probably need to pay tax on the long- or short-term capital gains that you realize if sold at a profit or set any loss against other income. If investors do not have a regular brokerage account, or their regular broker will not hold the Common Stock for them (and many brokers refuse to hold Regulation A securities for their customers) there will be nobody keeping records for investors for tax purposes and they will have to keep their own records, and calculate the gain on any sales of any securities they sell.

**The price for our Common Stock may be volatile.**

To date, there has not been enough trading of our shares to establish a market price. The market price of our Common Stock may be highly volatile, if and when any trading begins again in the future and there is sufficient volume of trading to establish a market price, is likely to continue to be highly volatile and could fluctuate widely in price in response to various factors, many of which are beyond our control, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· We may not be able to compete successfully against
current and future competitors.

&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to obtain working capital financing.

&nbsp;&nbsp;&nbsp;&nbsp;· Additions or departures of key personnel

&nbsp;&nbsp;&nbsp;&nbsp;· Sales of our shares.

&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to execute the business plan.

&nbsp;&nbsp;&nbsp;&nbsp;· Operating results that fall below expectations.

&nbsp;&nbsp;&nbsp;&nbsp;· Regulatory developments.

In addition, the securities markets have from time to time experienced significant price and volume fluctuations that are unrelated to the operating performance of particular companies. These market fluctuations may also materially and adversely affect the market price of our securities. As a result, investors may be unable to resell your securities at a desired price.

**Using a credit card to purchase shares may impact the return on your investment as well as subject you to other risks inherent in this form of payment*.***

Investors in this offering have the option of paying for their investment with a credit card, which is not usual in the traditional investment markets. Transaction fees charged by your credit card company (which can reach 5% of transaction value if considered a cash advance) and interest charged on unpaid card balances (which can reach almost 25% in some states) add to the effective purchase price of the shares you buy. See "Plan of Distribution and Selling Securityholders." The cost of using a credit card may also increase if you do not make the minimum monthly card payments and incur late fees. Using a credit card is a relatively new form of payment for securities and will subject you to other risks inherent in this form of payment, including that, if you fail to make credit card payments (e.g. minimum monthly payments), you risk damaging your credit score and payment by credit card may be more susceptible to abuse than other forms of payment. Moreover, where a third-party payment processor is used, as in this offering, your recovery options in the case of disputes may be limited. The increased costs due to transaction fees and interest may reduce the return on your investment.

The SEC's Office of Investor Education and Advocacy issued an Investor Alert dated February 14, 2018 entitled "Credit Cards and Investments – A Risky Combination," which explains these and other risks you may want to consider before using a credit card to pay for your investment.

**DILUTION**

Dilution means a reduction in value, control or earnings of the shares the investor owns.

*Immediate dilution*

An early-stage company typically sells its shares (or grants options exercisable for its shares) to its founders and early employees at a very low cash cost because they are, in effect, putting their "sweat equity" into the company. When the company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is diluted because all the shares are worth the same amount, and you paid more than earlier investors for your shares.

The following table demonstrates the price that new investors are paying for their shares and the immediate dilution under various total investment scenarios. The dilution is based on the Company's net asset value at December 31, 2025. We believe this method gives investors a better picture of what they will pay for their investment compared to previous investors and Company insiders than simply listing such transactions for the last 12 months.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | $10,000,000<br> Raise | $20,000,000<br> Raise | $30,000,000<br> Raise | $45,600,000<br> Raise (1) |
| Price per share | $1.60 | $1.60 | $1.60 | $1.60 |
| Shares issued | 6250000 | 12500000 | 18750000 | 20625000 |
| Capital raised | $10000000 | $20000000 | $30000000 | $30000000 |
| Less: Offering costs | $(1130000) | $(2260000) | $(3390000) | $(3390000) |
| Less: Sales by selling stockholders | $(3000000) | $(6000000) | $(9000000) | $(13680000) |
| Net offering proceeds to Company | $5870000 | $11740000 | $17610000 | $12930000 |
| Proceeds from option exercises(2) | $49334208 | $49334208 | $49334208 | $49334208 |
| Net tangible book value pre-financing (3) | $41611481 | $41611481 | $41611481 | $41611481 |
| Share issued and outstanding pre-financing(4) | 1269016813 | 1269016813 | 1269016813 | 1269016813 |
| Shares issued in financing from Company | 6250000 | 12500000 | 18750000 | 20625000 |
| Post financing shares issued and outstanding | 1275266813 | 1281516813 | 1287766813 | 1289641813 |
| Net tangible book value per share prior to offering | $0.03 | $0.03 | $0.03 | $0.03 |
| Increase/(decrease) per share attributable to new investors | $0.04 | $0.05 | $0.05 | $0.05 |
| Net tangible book value after offering | $0.08 | $0.08 | $0.08 | $0.08 |
| Dilution per share to new investors | $1.52 | $1.52 | $1.52 | $1.52 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Certain investors receive Bonus Shares of either 5%, 10%, 15% or 20%. Based on prior experience on average investors receive 10% Bonus
Shares. Provided the Company sells $45,600,000 in this offering, and assuming the average investor receives 10% Bonus shares, the dilution
to new investors will be $1.53 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Assumes all options with an exercise price of less $1.60 are exercised. There
are options for 53,609,254 shares of Common Stock at a weighted average exercise price of approximately $0.54 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Net tangible book value is calculated
as follows.

---

| | |
|:---|:---|
| Total stockholders' equity at December 31, 2025 | $56646530 |
| Less: intangible assets | (15035049) |
| &nbsp;&nbsp;&nbsp;Equals tangible book value pre-financing | $41611481 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(4) Shares issued and outstanding pre-financing
is calculated as follows.

---

| | |
|:---|:---|
| Series A Preferred outstanding at December 31, 2025 | 185440880 |
| Series T Preferred outstanding at December 31, 2025 | 9642080 |
| Series Seed Preferred outstanding at December 31, 2025 | 204772940 |
| Common stock outstanding at December 31, 2025 | 745825392 |
| Options outstanding at December 31, 2025 | 123335521 |
|  | 1269016813 |

---

*Future dilution*

Another important way of looking at dilution is the dilution that happens due to future actions by the Company. The investor's stake in a Company could be diluted due to the Company issuing additional shares. In other words, when the Company issues more shares, the percentage of the Company that you own will go down, even though the value of the Company may go up. You will own a smaller piece of that Company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, or angel investment), employees exercising stock options, or by conversion of certain instruments (e.g., convertible bonds, preferred shares or warrants) into stock.

If the Company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the Company offers dividends, and most companies until they are mature are unlikely to offer dividends, preferring to invest any earnings into the Company).

The type of dilution that hurts early-stage investors most occurs when the Company sells more shares in a "down round," meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

&nbsp;&nbsp;&nbsp;&nbsp;· In June 2025, Jane invests $20,000 for shares that represent 2% of a company valued at $1 million.

&nbsp;&nbsp;&nbsp;&nbsp;· In December the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company but her stake is worth $200,000.

&nbsp;&nbsp;&nbsp;&nbsp;· In June 2026, the company has run into serious problems and in order to stay afloat it raises $1 million at a valuation of only $2 million (the "down round"). Jane now owns only 0.89% of the company and her stake is worth only $26,660.

This type of dilution might also happen upon conversion of convertible notes into shares. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a "discount" to the price paid by the new investors (i.e., they get more shares than the new investors would for the same price). Additionally, convertible notes may have a "price cap" on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a "down round", the holders of the convertible notes will dilute existing equity holders, even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to the amount of convertible notes that the company has issued (and may issue in the future), and the terms of those notes.

If you are making an investment expecting to own a certain percentage of the Company or expecting each share to hold a certain amount of value, it's important to realize how the value of those shares can decrease by actions taken by the Company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

**PLAN OF DISTRIBUTION AND SELLING STOCKHOLDERS**

**Plan of Distribution**

StartEngine and the selling stockholders are seeking to raise up to $38,000,000 in total through the sale of Common Stock, which represents the value of securities available to be offered as of the date of this Offering Circular. Under Regulation A, the Company may only offer $75 million in securities during a rolling 12-month period. From time to time, we may seek to qualify additional shares.

On a "best efforts" basis, the Company is offering up to 199,950,000 shares of Common Stock, which includes a maximum of 3,325,000 shares of Common Stock eligible to be issued as Bonus Shares. On a "best efforts" basis, the selling stockholders are offering up to 8,550,000 shares of Common Stock, which includes up to a maximum of 1,425,000 shares of Common Stock eligible to be issued as Bonus Shares.

The minimum investment is $500.18 for the Common Stock.

The Company will use its existing website, www.startengine.com, to provide information with respect to the offering.

The Company's Offering Circular will be furnished to prospective investors in this offering via download 24 hours a day, 7 days a week on its startengine.com website. StartEngine is not currently selling the shares through commissioned sales agents or underwriters.

**Bonus Shares; Discounted Price for Certain Investors**

"Bonus Shares" are additional shares of Common Stock that are issued to investors purchasing shares in this offering for no additional monetary compensation, therefore those investors are effectively receiving a discount on the shares of Common Stock they purchase. Bonus Shares have identical rights, privileges and preferences to the shares of Common Stock purchased.

All investors in this offering are eligible to receive Bonus Shares equal to 10% of the shares they purchase if they:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reserved shares of Common Stock during our Test the Waters period (prior to the qualification of this Offering Statement by the Securities and Exchange Commission); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Are a member of our Venture Club\*.

Investors may also receive Bonus Shares based on the amount they invest\*\*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Invest between $3,000 -- $4,999 and receive 5% Bonus Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Invest between $5,000 -- $29,999 and receive 10% Bonus Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Invest $30,000 or more and receive 20% Bonus Shares.

Bonus Shares based on the amount of investment will be based on a single transaction and are not cumulative of multiple purchases. If an investor who is a member of our Venture Club or reserved shares during our Test the Waters period also qualifies for Bonus Shares based on the amount they invest, then the Bonus Shares are stackable; however, the maximum amount of Bonus Shares that an investor can receive in this offering is 20%. For example, anyone who indicated interest in this offering on our website will receive a total of 110 shares for every shares they purchase in the offering; further, if that investor invested at least $5,000 in this offering, that individual will receive a total of 120 shares for every 100 shares they purchase in the offering. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

To the extent any Bonus Shares are issued, it will reduce the proceeds that the Company and selling stockholders receive. Of the 4,750,000 Bonus Shares available in this offering, 3,325,000 are being offered by the Company and 1,425,000 are being offered by the selling stockholders.

\**The general public can become members of the StartEngine Venture Club on StartEngine's website for $275 per year. Membership will auto renew every year. A member of the program can cancel their renewal at any time. Once the individual cancels, their membership will expire on the next anniversary of their membership. With the StartEngine Venture Club Bonus, the investor will earn 10% bonus shares on all investments they make in participating campaigns on StartEngine. StartEngine Inc. will determine whether an investor qualifies as a StartEngine Venture Club member.*

*\*\* Must be done in a single transaction.*

**Process of Subscribing**

Prospective investors who submitted non-binding indications of interest during the "test the waters" period, will receive an automated message from us indicating that the offering is open for investment. You will be required to complete a subscription agreement in order to invest. Investors in Common Stock can only complete the subscription agreement on our website.

The subscription agreement must be delivered to us and funds for the subscribed amount must be delivered in accordance with the instructions stated in the subscription agreement. Investors will specify whether they will purchase shares via credit card, wire transfer, ACH transfer, through a StartEngine Primary LLC Brokerage Account, or by any combination of such methods. The Company estimates that processing fees for credit card subscriptions will be approximately 2.5% of total funds invested per transaction, although credit card processing fees may fluctuate. The Company estimates that approximately 70% of the gross proceeds raised in this offering will be paid via credit card. This assumption was used in estimating the payment processing fees included in the total offering expenses set forth in "Use of Proceeds."

The subscription agreement includes a representation by the investor to the effect that, if you are not an "accredited investor" as defined under securities law, you are investing an amount that does not exceed the greater of 10% of your annual income or 10% of your net worth (excluding your principal residence).

The Company has entered into an Escrow Services Agreement with Bryn Mawr Trust Company ("Bryn Mawr" or the "Escrow Agent"). Bryn Mawr is a Delaware registered trust company that offers escrow services as well as an integrated technology platform for processing investment transactions. The Company has agreed to pay Bryn Mawr an escrow administration fee of $500 per year escrow account fee. The first year is non-refundable.

Investor funds will be held by the Escrow Agent pending closing or termination of the offering. All subscribers will be instructed by the Company or its agents to transfer funds by wire or ACH transfer, credit card, through a StartEngine Primary LLC Brokerage Account, or by any combination of such methods to the escrow account established for this offering. The Company may terminate the offering at any time for any reason at its sole discretion. Investors should understand that acceptance of their funds into escrow does not necessarily result in their receiving shares; escrowed funds may be returned.

Bryn Mawr is not participating as an underwriter or placement agent or sales agent of this offering and will not solicit any investment in the Company, recommend the Company's securities or provide investment advice to any prospective investor, and no communication through any medium, including any website, should be construed as such, or distribute this Offering Circular or other offering materials to investors. The use of Bryn Mawr's technology should not be interpreted and is not intended as an endorsement or recommendation by it of the Company or this offering. All inquiries regarding this offering or escrow should be made directly to the Company.

In the event that the Company terminates the offering while investor funds are held in escrow, those funds will promptly be refunded to each investor without deduction or interest and in accordance with Rule 10b-9 under the Exchange Act.

**Issuance of Shares**

Information regarding the ownership of the Common Stock will be recorded with StartEngine Secure LLC, our stock transfer agent.

***Forum Selection Provision***

Section 6 of our Common Stock subscription agreement (which appears as an exhibit to the offering statement of which this Offering Circular forms a part) provides that any court of competent jurisdiction in the State of New York is the exclusive forum for all actions or proceedings relating to the subscription agreement. However, this exclusive forum provision does not apply to actions arising under the federal securities laws.

**Jury Trial Waiver**

Section 6 of our Common Stock subscription agreement (which appears as an exhibit to the offering statement of which this Offering Circular forms a part) provides that subscribers waive the right to a jury trial of any claim they may have against us arising out of or relating to the subscription agreement, including any claim under federal securities laws. If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable given the facts and circumstances of that case in accordance with applicable case law.

**Selling Stockholders**

Certain stockholders of the Company intend to sell up to 30% shares of Common Stock in this offering, plus up to 20% Bonus Shares or up to $11,400,000 in gross proceeds in cash. The gross proceeds raised in this offering will be split as follows: 30% to the selling stockholders (on a pro-rata basis) and 70% to the Company. Selling stockholders will participate on a pro rata basis, which means that at each closing in which selling stockholders are participating, a stockholder will be able to sell its pro rata portion of the shares that the stockholder is offering (as set forth in the table below) of the number of securities being issued to investors. For example, if the Company holds a closing for $1 million in gross proceeds, the Company will issue shares and receive gross proceeds of $700,000 while each of the selling stockholders will receive their Pro Rata Portion of the remaining $300,000 in gross proceeds and will transfer their shares to investors in this offering. Selling stockholders will not offer fractional shares and the shares represented by a stockholder's pro rata portion will be determined by rounding down to the nearest whole share.

Prior to the qualification of the Offering Statement, the selling stockholders will enter into an irrevocable power of attorney ("POA") with the Company and two employees of the Company as attorneys-in-fact, in which they direct the Company and either attorney-in-fact to take the actions necessary in connection with the offering and sale of their shares. A form of the POA is filed as an exhibit to the Offering Statement of which this Offering Circular forms a part.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selling Stockholder** | **Shares owned<br> prior to <br> Offering** | **Shares offered<br> by Shares<br> offered<br> by selling<br> stockholder (1)** | **Potential <br> Bonus <br> Shares (1)** | **Shares owned<br> after the<br> Offering (1)** | **Stockholder's<br> Pro Rata <br> Portion (6)** |
| Aaron Broder (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| AC Ventures, LLC (3) | 23124724 | 187549 | 37510 | 22899665 | 2.63% |
| Adam Gootnick (3) | 495172 | 4016 | 803 | 490353 | 0.06% |
| Alan & Sophie Alpert Trust Established August 19, 1991 (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Ariel Gootnick (3) | 495172 | 4016 | 803 | 490353 | 0.06% |
| B&B Family Trust (6) | 6622323 | 53709 | 10742 | 6557872 | 0.75% |
| BAM Venture Partners (A), L.P. (3) | 1168349 | 9476 | 1895 | 1156978 | 0.13% |
| BAM Venture Partners, L.P. (3) | 1722186 | 13968 | 2794 | 1705424 | 0.20% |
| Brian Klein | 1318067 | 10690 | 2138 | 1305239 | 0.15% |
| Bristol Investment Fund, Ltd. | 22787500 | 184814 | 36963 | 22565723 | 2.59% |
| Business Instincts Group Inc. (3) | 5808237 | 47107 | 9421 | 5751709 | 0.66% |
| Cameron Ehrlich (5) | 1170840 | 9496 | 1899 | 1159445 | 0.13% |
| Christian Scranton (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Connor Larkin (5) | 260359 | 2112 | 422 | 257825 | 0.03% |
| Daniel Gootnick (3) | 495172 | 4016 | 803 | 490353 | 0.06% |
| Daniel Gutenberg (3) | 5775802 | 46844 | 9369 | 5719589 | 0.66% |
| Daniel Rosenthal | 91904 | 745 | 149 | 91010 | 0.01% |
| David Zhang | 1777789 | 14418 | 2884 | 1760487 | 0.20% |
| Doryn Fine (5) | 3417945 | 27721 | 5544 | 3384680 | 0.39% |
| Epstein-McGowan 2010 Trust Agreement dated January 14, 2010 (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Erick McKitterick (5) | 3352435 | 27189 | 5438 | 3319808 | 0.38% |
| Ernie L. Brooks Generation Skipping Trust (3) | 11562364 | 93775 | 18755 | 11449834 | 1.32% |
| Hannah Morgan Trust (3) | 11562364 | 93775 | 18755 | 11449834 | 1.32% |
| Harrison Bert (2) | 1111399 | 9014 | 1803 | 1100582 | 0.13% |
| Harrison Hodgin (2) | 1051478 | 8528 | 1706 | 1041244 | 0.12% |
| Howard E. Marks Living Trust U/A Dtd 12/21/2001 (7) | 209815368 | 1701672 | 340338 | 207773358 | 23.88% |
| Hunter Strassman (2) | 2982184 | 24187 | 4837 | 2953160 | 0.34% |
| Identity Intelligence Group, LLC (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Iñaki Pedroarena-Leal | 250579 | 2032 | 406 | 248141 | 0.03% |
| Jackson Burbic (2) | 403986 | 3276 | 655 | 400055 | 0.05% |
| Jeremy Roll (3) | 3902677 | 31652 | 6330 | 3864695 | 0.44% |
| Joe Mathews (5) | 7753494 | 62883 | 12577 | 7678034 | 0.88% |
| Johanna Cronin (5) | 29704702 | 240915 | 48183 | 29415604 | 3.38% |
| Jonathan Reyes (5) | 5914776 | 47971 | 9594 | 5857211 | 0.67% |
| Jonathan Schiff (3) | 11562364 | 93775 | 18755 | 11449834 | 1.32% |
| Josh Amster (5) | 15259978 | 123764 | 24753 | 15111461 | 1.74% |
| Joshua Chu (5) | 1665543 | 13508 | 2702 | 1649333 | 0.19% |
| Ken Gootnick (3) | 10076787 | 81726 | 16345 | 9978716 | 1.15% |
| Klein Family Trust (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Marine Family Trust (3) | 11562364 | 93775 | 18755 | 11449834 | 1.32% |
| Marks Irrevocable Trust (7) | 19887279 | 161292 | 32258 | 19693729 | 2.26% |
| Mary Frances Knight | 2542493 | 20620 | 4124 | 2517749 | 0.29% |
| MHT Investments LLC (3) | 11562364 | 93775 | 18755 | 11449834 | 1.32% |
| Equity Trust Company As Custodian FBO Eric Bunting # 1634283 (3) | 1702437 | 13807 | 2761 | 1685869 | 0.19% |
| Rajewski Living Trust dated May 30, 2013 (6) | 8017772 | 65027 | 13005 | 7939740 | 0.91% |
| Ryan Deslauriers (5) | 5497294 | 44585 | 8917 | 5443792 | 0.63% |
| Ryan Kim | 405424 | 3288 | 658 | 401478 | 0.05% |
| Schuler Family Trust 2009 (Zack Schuler) (3) | 5942541 | 48196 | 9639 | 5884706 | 0.68% |
| SE Agoura Investment LLC (4) | 185056957 | 1500874 | 300175 | 183255908 | 21.07% |
| Steven Heinemann | 1318068 | 10690 | 2138 | 1305240 | 0.15% |
| BlueFlame Diversified Digital Fund I, LP (5) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| Teddy Rounds (5) | 1637177 | 13278 | 2656 | 1621243 | 0.19% |
| The Jonathan & Nancy Glaser Family Trust (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| The Lee Miller Trust UA 09/05/2020 (2 and 3) | 56267674 | 456350 | 91270 | 55720054 | 6.41% |
| Lee Miller, Trustee of the Miller Children's Trust dated September 13, 2025 (3) | 27000000 | 218979 | 43796 | 26737225 | 3.07% |
| The Ronald David Miller Trust UA 08/04/2020 (8) | 83267674 | 675329 | 135066 | 82457279 | 9.48% |
| Upasna Javeri | 346854 | 2813 | 563 | 343478 | 0.04% |
| Victor Coleman (3) | 5781171 | 46887 | 9377 | 5724907 | 0.66% |
| TOTAL (9) |  |  |  |  |  |

---

(1) Assumes maximum number of shares are sold in this offering and maximum number of Bonus Shares are issued. The maximum number of Bonus Shares available is 20%.

(2) Incudes shares of Common Stock issuable upon exercise of vested options, including payment for such shares of Common Stock prior to any closing.

(3) Includes shares of Common Stock issuable upon conversion of Series Seed Preferred Shares on a 1-for-1 basis

(4) Includes shares of Common Stock issuable upon conversion of Series A Preferred Shares on a 1-for-1 basis.

(5) Includes shares of Common Stock issuable upon conversion of Series T Preferred Shares on a 1-for-1 basis.

(6) Includes shares of Common Stock issuable upon conversion of Series Seed Preferred Shares and Series A Shares on a 1-for-1 basis.

(7) Shares beneficially owned by Howard Marks.

(8) Shares beneficially owned by Ronald Miller.

(9) "Pro Rata Portion" represents that portion that a stockholder may sell in the offering expressed as a percentage where the numerator is the amount offered by the stockholder divided by the total number of shares offered by all selling stockholders.

(10) The total number of shares owned by the selling stockholders prior to this offering represents 75% of the company's capital stock, on a fully diluted basis, assuming all options are exercised, shares of Preferred Stock are converted to Common Stock.

**USE OF PROCEEDS TO ISSUER**

The Company estimates that if it sells the maximum amount of $38,000,000 from the sale of Common Stock, which represents the value of shares available to be offered as of the date of this Offering Circular out of the rolling 12-month maximum offering amount of $75 million, the net proceeds to the issuer in this offering will be approximately $26,005,000 after deducting the estimated offering expenses of approximately $595,000 (including payment to the escrow agent, marketing, legal and accounting professional fees and other expenses) and sales by selling stockholders.

The table below shows the net proceeds the Company would receive from this offering assuming an offering size of $10 million, $20 million, $30 million and $38 million (the remaining amount to be sold in this offering), and the intended use of those proceeds. There is no guarantee that we will be successful in selling any of the shares we are offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Amount raised** | $**10000000** | $**20000000** | $**30000000** | $**38000000** |
| **Offering expense** | $595000 | $595000 | $595000 | $595000 |
| **Sales by selling stockholders** | $3000000 | $6000000 | $9000000 | $11400000 |
| **Net proceeds to issuer** | $**6405000** | $**13405000** | $**20405000** | $**26005000** |
| **Marketing** | $3000000 | $6000000 | $9000000 | $15000000 |
| **Operations** | $1387000 | $2000000 | $2000000 | $2000000 |
| **Product Development** | $580500 | $1000000 | $1000000 | $1000000 |
| **Cash Reserves** | $1437500 | $4405000 | $8405000 | $8005000 |

---

Marketing is our largest expected expenditure. Our marketing will use a lead-generation program designed to reach companies who are likely to want to raise capital and to offer them the ability to register on StartEngine to build crowdfunding offerings. Our marketing costs consist mainly of internal salaries for brand managers, lead generation associates, inside sales people and third party companies specialized in incoming lead conversion through telephone and emails. Also included are advertising costs on several types of media, including television, radio, podcasts and internet services such as Facebook and Google. These costs include engaging vendors such as advertising agencies and consultants.

Compliance operations expenditures are expected to grow significantly in the next twelve months. This mostly includes salaries for the internal compliance team. We expect to hire additional corporate counsel and compliance associates. These compliance personnel will assist with improving our existing compliance procedures as well as assist in the developing compliance procedures for our planned new services.

Product development is our third largest expected expenditure. This mostly includes salaries for the internal technology development team. We expect to hire additional software engineers, user experience specialists, user interface specialists and quality assurance engineers. These engineers will assist with improving our existing services as well as developing our planned new services.

**The Company reserves the right to change the above use of proceeds if management believes it is in the best interest of the Company.**

The allocation of the net proceeds of the offering set forth above represents the Company's estimates based upon its current plans, assumptions it has made regarding the industry and general economic conditions and its future revenues (if any) and expenditures.

Investors are cautioned that expenditures may vary substantially from the estimates above. Investors will be relying on the judgment of the Company's management, who will have broad discretion regarding the application of the proceeds from this offering. The amounts and timing of the Company's actual expenditures will depend upon numerous factors, including market conditions, cash generated by the Company's operations (if any), business developments and the rate of the Company's growth. The Company may find it necessary or advisable to use portions of the proceeds from this offering for other purposes.

In the event that the Company does not raise the entire amount it is seeking, then the Company may attempt to raise additional funds through private offerings of its securities or by borrowing funds. The Company does not have any committed sources of financing.

**THE COMPANY'S BUSINESS**

**Business**

StartEngine Crowdsourcing Inc. was incorporated in the State of Delaware on March 19, 2014. On May 8, 2014, the company changed its name to StartEngine Crowdfunding, Inc. On June 15, 2026, the company changed its name to StartEngine Inc.

StartEngine aims to democratize access to private market investing by enabling both accredited and non-accredited investors to invest in private companies through a single public platform. Today, StartEngine's primary revenue driver is StartEngine Private, through which accredited investors gain exposure to pre-IPO and late-stage private company shares.

StartEngine has operated since 2015 under Title IV of the JOBS Act, facilitating Regulation A offerings to both accredited and non-accredited investors, and under Title II of the JOBS Act, facilitating Rule 506(c) offerings under Regulation D for accredited investors. Since then, StartEngine has expanded operations through its subsidiaries with the aim of building a full-stack private markets ecosystem platform. Services include: (i) Regulation Crowdfunding services under Title III of the JOBS Act, (ii) broker-dealer services for Regulation A, Regulation CF and Regulation D offerings, (iii) trading on an alternative trading system, (iv) transfer agent services, (v) a platform for fine and whiskey as well as (vi) access to participate in StartEngine Private offerings.

StartEngine performs much of its work through its wholly owned subsidiaries. Its main six subsidiaries are described below:

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Primary LLC ("StartEngine Primary"),
formed on October 12, 2017, a registered broker-dealer, approved to act as alternative trading system on April 16, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Private Manager LLC ("StartEngine
Private Manager"), formed on August 3, 2023 for the purpose of managing StartEngine Private offerings. StartEngine Private
provides accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture
capital backed, late-stage private companies.

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Secure LLC ("StartEngine Secure"),
formed on December 12, 2017, it is a transfer agent registered with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Adviser LLC ("StartEngine Adviser"),
formed on August 3, 2023 for the purpose of being the organizer and Exempt Reporting Adviser to all StartEngine Private offerings.

&nbsp;&nbsp;&nbsp;&nbsp;· Vinovest, Inc. ("Vinovest"),
acquired in March 2026, Vinovest is a platform for fine wines and whiskeys

**Principal Products and Services**

***StartEngine Private***

Provides accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies (the "underlying securities") via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC. StartEngine Adviser LLC is an exempt reporting adviser under Rule 203(m)-1 under the Investment Advisers Act of 1940. The SE Funds sell their membership interests in offerings that are exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and specifically Regulation D promulgated thereunder. Such offerings are marketed to accredited investors by the Company's FINRA-member and SEC-registered broker-dealer subsidiary, StartEngine Primary LLC. The Company generates revenue to the extent it is able to sell underlying securities to an SE Fund. The Company treats the amount it receives for selling underlying securities as revenues, and the acquisition cost related such underlying securities as cost of revenues. There are several factors that are used in pricing the securities of an SE Fund, including but not limited to: the price (including transaction costs) the securities were purchased by the SE Fund's affiliate, the time spent and costs involved by the SE Fund's management team including those related to identifying, verifying, acquiring, and managing the investments, sales of the underlying securities on the secondary market, as well as considerations are given for the illiquidity of private investments compared to publicly traded securities and investor interest in the SE Fund's securities. The Company also believes that there is value added by allowing investors to have an economic interest in these companies with less hassle and smaller denominations than available in secondary markets. Additionally, consideration is also given to broader economic and market conditions that might impact the valuation of private companies, such as industry trends, regulatory changes, and economic cycles.

***Offerings***

Depending on the type of offering being made, we currently operate as a technology platform connecting issuers and investors, and as a broker-dealer. We facilitate the following types of offerings that are exempt from registration under the Securities Act:

&nbsp;&nbsp;&nbsp;&nbsp;· Regulation A Offerings: Through StartEngine Primary,
our broker-dealer, we host Regulation A offerings on our platform. These companies are seeking to raise anywhere from $100,000 to $75
million and we provide an array of services, including acting as a broker-dealer, assisting with due diligence, custodial accounts and
coordinating vendors.

&nbsp;&nbsp;&nbsp;&nbsp;· Regulation Crowdfunding Offerings: Through StartEngine
Primary, our broker-dealer, we host Regulation Crowdfunding offerings. Companies utilizing Regulation Crowdfunding are seeking to raise
anywhere from $10,000 to $5 million, and we also provide an array of services permitted by Regulation Crowdfunding, including campaign
page design services, marketing consulting services, assisting with due diligence, custodial accounts, and coordinating vendors.

***StartEngine Primary***

By adding broker-dealer services to the mix of our offerings, we are able to take a more active role in the promotion and sale of securities in Regulation A, Regulation Crowdfunding and Regulation D offerings hosted on our platforms. Further, we are able to facilitate the secondary trades on StartEngine Secondary, see ("StartEngine Secondary" below). StartEngine Primary received approval for a range of business lines to allow us to act as the broker-dealer for the private placements of securities (which includes securities sold under Regulation D), to effect transfers and sales on StartEngine Secondary, and to be able to receive referral fees and commissions for sales of securities. Further, to expand our services that we can offer our clients, we filed a continuing membership application with FINRA ("CMA") to be a clearing or "carrying" broker-dealer so in addition to handling a client's orders to buy and sell securities we can also maintain custody of a client's securities and other assets (e.g. cash in their account). Our broker-dealer registration became effective in June 2019, and our CMA become a carrying broker-dealer was accepted at the end of September 2021.

***Vinovest***

Vinovest was acquired in March 2026. Vinovest platform for fine wine and whisky investment. Vinovest uses data and industry expertise to source, authenticate, and store high-quality bottles in bonded warehouses. The platform handles portfolio management, insurance, and logistics, while investors can track performance over time and choose to sell or take delivery of their holdings. Vinovest has also developed relationships in the wine industry, allowing top wineries from around the world to reach the next generation of collectors and investors in the company's network.

***StartEngine Premium***

For our Regulation Crowdfunding campaigns, we offer marketing services branded under the name "StartEngine Premium". For an additional fee, our team will support companies with the design of their campaign pages, provide a designated account consultant to guide a company throughout the campaign creation process, and assist a company in developing a marketing strategy based on best practices and analytics from previous successful campaigns.

***StartEngine Venture Club***

The general public can become members of the StartEngine Venture Club program on StartEngine's website for $275 per year. The Venture Club entitles members to 10% bonus shares on all investments they make in offerings on StartEngine where the issuer chooses to participate in the program. Issuers using our broker-dealer and funding portal services can choose to participate in our Venture Club program with respect to the offerings they are making under Regulation A or Regulation CF. Those issuers will grant bonus shares in their offerings to members of the StartEngine Venture Club program. The bonus shares are included in the offering statements filed with the SEC, and therefore offered and sold in reliance on Regulation A or Regulation CF, respectively.

***StartEngine Secure***

Through our wholly owned subsidiary, StartEngine Secure, we offer transfer agent services. These services include tracking each investor's account information and the amount of securities purchased and date purchased. Our goal is to provide a seamless service to our client companies. Our intent is for our transfer agent to have agreements with our various entities to allow it to collect information on investors and their investments through an API (application programming interface). Therefore, when a company raises money on StartEngine, our transfer agent will be notified and sent the investor information and the investment details. The transfer agent will then capture this information into its redundant and secure database hosted in the cloud and encrypt for security purposes.

***StartEngine Secondary***

The goal of the StartEngine Secondary platform is to increase liquidity for shares sold in Regulation A, Regulation Crowdfunding and Regulation D offerings. We facilitate the transfer and sale of these shares by creating an alternative trading system ("ATS") to allow for secondary trades. Sales of shares sold under Regulation A on the StartEngine platform are permitted to be quoted immediately, while holders of shares sold under Regulation Crowdfunding and Regulation D will need to wait one year in order to comply with the applicable transfer restrictions to participate on the platform. After receiving the requisite FINRA approval to operate as an ATS, StartEngine Primary launched its ATS, branded as "StartEngine Secondary" on May 18, 2020.

StartEngine Secondary has a limited operating history, and even though over 400 issuers have signed to be quoted on this platform, only twenty-five companies have been quoted on this platform to date, including the Company itself. Currently, for StartEngine Secondary, we generate revenues by charging trade commissions to the sellers of the shares and we intend to generate revenues by charging initial and annual quotation fees.

**Support Services**

Our Company is focused on our core competencies and therefore we surround ourselves with third party companies who help us accomplish our non-core tasks.

We rely on the following companies for outsourced services:

&nbsp;&nbsp;&nbsp;&nbsp;· Bryn Mawr Trust Company: Escrow Services

&nbsp;&nbsp;&nbsp;&nbsp;· Amazon AWS: Cloud hosting

&nbsp;&nbsp;&nbsp;&nbsp;· Google Business: Cloud email and applications

**Market**

***StartEngine Private and Regulation D Offerings***

The Company provides accredited investors the opportunity to purchase membership interests in funds that own shares of venture capital backed, late-stage private companies (the "underlying securities") via its StartEngine Private product offering. The offerings are made in reliance on Rule 506(c) of Regulation D. The Company does not currently have a value on the potential market size for our membership interests. However, in the 2025 Annual Report from the SEC Office of the Advocate for Small Business Capital Formation, the SEC estimated that approximately 13% of the US population qualifies as accredited. Additionally, we believe that the private equity and alternative investment markets are expected to grow significantly over the next several years. Further, the Company believes that there is interest from accredited investors to have an economic interest in the underlying securities where they do not have an interest in investing directly themselves (e.g., they do not want to invest the high minimum amount often required for companies at this stage) and/or do not have the time, financial, legal, and/or technical expertise to source these investments.

Regulation D offerings include offerings conducted under Rule 506(b), Rule 506(c), and Rule 504. Our investor base generally consists of retail investors. According to the SEC, for the period from July 1, 2024 through June 30, 2025, the estimated size of the Regulation D market (excluding pooled funds) was:

&nbsp;&nbsp;&nbsp;&nbsp;· Approximately $378 billion under Rule 506(b);

&nbsp;&nbsp;&nbsp;&nbsp;· Approximately $24 billion under Rule 506(c);
and

&nbsp;&nbsp;&nbsp;&nbsp;· Approximately $300 million under Rule 504.

The vast majority of Regulation D capital raised occurred through Rule 506(b) offerings, which do not permit general solicitation and allow participation by certain non-accredited investors, subject to applicable requirements. We believe the significant size of the Regulation D market presents a substantial opportunity for online capital formation through Rule 506(c) offerings. We believe the growth potential of Rule 506(c) offerings is supported by the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;· Provides issuers with a relatively low-cost method
of raising capital from accredited investors while permitting general solicitation.

&nbsp;&nbsp;&nbsp;&nbsp;· Recent expansions to the definition of an "accredited
investor" may increase the number of individuals eligible to participate in Rule 506(c) offerings.

&nbsp;&nbsp;&nbsp;&nbsp;· Based on our experience, the cost to prepare
a Rule 506(c) offering can be less than $10,000, making it an accessible capital-raising option for many issuers.

***Regulation A***

Amended Regulation A became effective June 19, 2015. According to the SEC, for the period from July 1, 2024 through June 30, 2025, the estimated size of the Regulation A market (excluding pooled funds) was $1.2 billion..

As of December 31, 2025, we have hosted 84 Regulation A offerings, which have raised a total of approximately $321 million on our platforms, not including five offerings for StartEngine itself and 33 offerings of series of companies managed by StartEngine Assets, LLC. We believe the market for Regulation A will continue to grow as more companies become aware of the ability to raise capital through crowdfunding platforms. Regulation A permits a maximum raise of $75 million each 12 months, therefore we believe this rule is well suited for small and midsize businesses. We experienced a significant increase in demand from 2021 to 2022, followed by a contraction from 2023 to 2024, and a modest increase in 2025. Excluding offerings for StartEngine itself and its affiliates, we have hosted 13 offerings in 2020, 17 offerings in 2021, 22 offerings in 2022, 13 offerings in 2023, 7 offerings in 2024 and 9 offerings in 2025. The number of offerings hosted is based on the year launched and do not include offerings for StartEngine itself and the offerings of series for StartEngine Collectibles Fund I LLC.

***Regulation Crowdfunding***

Since its launch on May 16, 2016, we estimate that as of December 31, 2025, 1,513 offerings have raised over $642 million on StartEngine through Regulation Crowdfunding. According to the SEC, for the period from July 1, 2024 through June 30, 2025, the estimated size of the Regulation Crowdfunding market (excluding pooled funds) was $235 million. .

We believe Regulation Crowdfunding will grow year over year as more startup companies become aware of this funding method and view Regulation Crowdfunding as a viable fundraising option and market conditions improve. Demand increased between 2023 and 2024 and again between 2024 and 2025, following the Company's mid-2024 strategy to reduce the number of clients after a higher intake earlier in 2024.

We are working to increase awareness of the benefits of Regulation Crowdfunding through a lead generation program that includes advertising on social media, email marketing and other marketing support. Our primary focus is start-ups; however, our outreach also includes companies further along in their development. We have and intend to continue educating the market through content we create and publish on our blog, as well as through contributions as guest authors on other widely read publications.

***Transfer Agent***

The exemptions provided by Regulation A and Regulation Crowdfunding include conditional exemptions from the registration requirements of the Securities Exchange Act of 1934. One of the conditions is that should the number of a Company's security holders and/or the value of a Company's assets exceed a certain threshold; a Company needs to use a registered transfer agent to avoid the requirement that the Company become a fully-registered Company with the SEC - an expensive proposition for many of these small companies. Therefore, the market for our transfer agent services includes all companies that have previously raised funds through Regulation A and Regulation Crowdfunding offerings. Currently, we mainly market our services to our current clients.

***StartEngine Secondary***

We believe that a portion of the owners of securities purchased under Regulation A, Regulation D and Regulation Crowdfunding will be interested in selling their securities to prospective buyers. There is no viable marketplace today for these securityholders to sell their securities unless the Company seeks a quotation on an over-the-counter marketplace. Companies who use Tier 1 of Regulation A or Regulation Crowdfunding do not qualify for quotation on the leading over-the-counter marketplace. Further even if a Company qualifies for that market, which would include issuers using Tier 2 of Regulation A, the quotation requirements are expensive. We believe StartEngine Secondary has the potential for success because there are limited trading forums for these securities.

***Vinovest***

Vinovest operates within the alternative investment and luxury asset markets, specifically targeting wine and whiskey as investable asset classes.

The global fine wine investment market has historically demonstrated low correlation with traditional equity markets, making it an attractive diversification vehicle for both retail and institutional investors. According to the Liv-ex Fine Wine 1000 index, fine wine has delivered consistent long-term returns, and the broader collectibles and passion asset market, which includes wine, whiskey, art, and other tangibles, is estimated to represent hundreds of billions of dollars globally.

The addressable market for Vinovest includes accredited and non-accredited investors seeking alternative assets, as well as wine enthusiasts looking to combine personal interest with portfolio diversification. Demand for alternative investments has grown meaningfully in recent years as investors seek to hedge against inflation and market volatility, and the democratization of access to wine investing through technology platforms has expanded the potential investor base well beyond traditional collectors and high-net-worth individuals.

We believe Vinovest is well-positioned to capitalize on growing consumer interest in tangible, inflation-resistant assets, particularly as awareness of wine and whiskey as investable commodities continues to increase among retail investors.

***Registered User Base***

As of June 11, 2026, we have approximately 1,786,000 registered users. Of these, approximately 432,400 have made investments on our platform. We determine registered users based on unique email addresses associated with active investor profiles. Because individuals may maintain multiple profiles or may no longer be active despite not deactivating their profiles, this metric is an estimate and may overstate the number of unique registered users. There is no fee associated with becoming a registered user. Of the users who have made investments, the average number of investments is approximately 2.30 and the amount per investment is approximately $1,280.

Through StartEngine Private over 2,600 accredited investors have participated in private company offerings, with an average investment of approximately $27,800. Since inception, StartEngine Private has facilitated investments across approximately 134 private companies, raising approximately $174 million in total through Rule 506(c) offerings. The average StartEngine Private investor has made approximately 2.36 investments on the platform.

**Competition**

Regulation Crowdfunding: we compete with other intermediaries, including brokers and funding portals such as WeFunder, Republic and MicroVentures.

Regulation A: we compete with other platforms, hosting services and broker-dealers. Some of our competitors include Dalmore, Dealmaker, Republic and Wefunder.

Offerings under Rule 506(c), or online offerings made under Regulation D (which includes non-solicited offerings): we compete with platforms such as AngelList, EquityNet, FundersClub and Fundable.

Transfer agent: we compete with transfer agents such as Computershare and VStock Transfer.

StartEngine Private: we compete with other companies such as Forge, EquityZen and MicroVentures.

Vinovest: we compete with specialized wine and spirits investment platforms such as Cult Wines, Vint, RareWine Invest, CultX, and Vinfolio, as well as broader alternative asset investment platforms that offer access to collectibles, art, private equity, and other non-traditional asset classes.

**Strategy**

Our Mission: Help entrepreneurs and investors achieve their dreams.

Our Strategy: We provide technology to allow the general public to invest in private companies at many different stages in the pre-IPO lifecycle.

**Our Advantages**

We believe the following factors differentiate our platform and position us for continued growth:

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine is one of the leaders in the global
crowdfunding

&nbsp;&nbsp;&nbsp;&nbsp;· The Company was a first mover in the equity crowdfunding
industry

&nbsp;&nbsp;&nbsp;&nbsp;· We are active in crowdfunding legal and regulatory
affairs.

&nbsp;&nbsp;&nbsp;&nbsp;· We collaborate with third parties to establish
industry-wide best practices and to improve the quality of listings.

&nbsp;&nbsp;&nbsp;&nbsp;· We harness the power and wisdom of "The
Crowd."

&nbsp;&nbsp;&nbsp;&nbsp;· We help companies build armies of committed,
long-term brand ambassadors who, as investors, promote their companies to their friends, families and colleagues.

&nbsp;&nbsp;&nbsp;&nbsp;· Our backend operating systems are highly efficient.
Each function operates through documented procedures to ensure consistent, quality results.

&nbsp;&nbsp;&nbsp;&nbsp;· We continue to evolve our platform and broaden
investment opportunities for our users. Specifically, (i) StartEngine Private provides accredited and qualified investors access
to venture capital-backed, late-stage private companies, and (ii) our acquisition of Vinovest expands the range of alternative asset
classes available through our ecosystem.

**Research and Development**

StartEngine invested approximately $5,356,424 for the year ended December 31, 2025 and $7,796,521 for the year ended December 31, 2024 in research and development, product development, and maintenance.

**Employees**

As of June 10, 2026, we had 82 employees. We also work with a large number of contractors for user-experience design, security controls, and testing, services and marketing.

**Regulation**

Having platforms that host Regulation A, Regulation Crowdfunding and Regulation D offerings, we are required to comply with a variety of state and federal securities laws as well as the requirements of FINRA, a national securities association of which our funding portal subsidiary and our broker-dealer are members. Further, as a registered transfer agent, we are required to comply with a variety of state and federal securities laws and laws that govern transfer agents, as well as laws aimed at preventing fraud, tax evasion and money laundering

***Our Broker-Dealer***

*Broker-Dealer Regulations*

Our subsidiary, StartEngine Primary, is registered as a broker-dealer with the SEC and a member of FINRA. The registration process not only includes registering with the SEC, but also requires membership in a self-regulatory organization (in our case, we are a member of FINRA) and in the Securities Investor Protection Corporation ("SIPC"), compliance with state requirements and making sure that our associate persons satisfy all applicable qualification requirements.

*SEC Requirements*

Since StartEngine Primary became a broker-dealer, it has been required to comply with extensive SEC regulations with respect to its conduct and the processing of transactions. These include requirements related to conduct, financial responsibility, and other requirements such as those that relate to communications, anti-money laundering (AML) and ongoing internal controls and governance. In addition, StartEngine Primary has been approved to operate an alternative trading system for secondary trading of securities. StartEngine also need to comply with extensive SEC regulations with respect to its conduct and its execution and clearance of transactions.

*FINRA Requirements*

Since StartEngine Primary became a of FINRA as a broker-dealer, it has been subject to FINRA's supervisory authority and is required to comply with FINRA's rules and regulations. These rules and regulations include many similar requirements to those of the SEC, and in many cases are broader in scope and provide more specificity. FINRA also has rules regarding conduct, compliance and codes of procedure. For instance, FINRA members must comply with NASD's Rules of Fair Practice, which broadly speaking requires broker-dealers to observe high standards of commercial honor and just and equitable principles of trade in conducting their business. There are also rules that relate to use of manipulative, deceptive or other fraudulent devices, suitability, payments to unregistered persons, know your customer, supervision of our employees and responsibilities related to associated persons, financial soundness, recordkeeping, maintaining procedures, arbitration for customer disputes, AML and submitting to ongoing supervision. We are also required to undertake due diligence investigations with respect to Regulation A and Regulation D offerings.

*Conduct Requirements*

In general, many of the rules that govern broker-dealers stem from antifraud provisions; these requirements are broad in scope and prohibit misstatements or misleading omissions of material facts, and fraudulent or manipulative acts and practices, in connection with the purchase or sale of securities. Specifically, the following rules apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Section 9(a) prohibits particular manipulative practices regarding securities registered on a national securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Section 10(b) prohibits the use of "any manipulative or deceptive device or contrivance" in connection with the purchase or sale of any security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Section 15(c)(1) prohibits broker-dealers from effecting transactions in, or inducing the purchase or sale of, any security by means of "any manipulative, deceptive or other fraudulent device" in over-the-counter markets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Section 15(c)(2) prohibits a broker-dealer from making fictitious quotes in over-the-counter markets

Antifraud specific requirements include those related to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Duty of fair dealing (e.g., charging reasonable fees, promptness of executive orders, and disclosing specified material information as well as any conflict of interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Regulation Best Interest (e.g., a duty to act in the "best interests" of retail customer (defined as natural persons and their legal representatives), which includes certain disclosure and care obligation and compliance obligations as well as maintaining policies and procedures to minimize the effects, if any, of conflicts of interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Duty of best execution (e.g., a duty of execution requires that based on the circumstances requirement to find the most favorable terms for a customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Customer confirmation (e.g., at or before the completion of transaction certain information must be provided to customers, including specifics on the sale, the payment that the broker-dealer receives, etc.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disclosure of credit terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Restrictions on short sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Trading during an offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Restrictions on insider trading.

Finally, broker-dealers are governed by requirements regulating employees and individuals associated with the broker-dealer.

*Financial Responsibility Requirements*

Financial responsibility and operations requirements include: net capital requirements, margin requirements, customer protection requirements (e.g., reserve account and segregation of customer assets), risk assessment requirements, financial reporting (including an independent audit), and recordkeeping requirements. The minimum net capital requirement for StartEngine Primary is $250,000. As a self-clearing broker-dealer StartEngine Primary is specifically obligated under net capital requirements to maintain a sufficient level of net capital to cover any open trades that fail to settle.

*Anti-Money Laundering*

The Bank Secrecy Act, as amended by the USA PATRIOT ACT of 2001 (the "BSA/USA PATRIOT Act"), requires broker-dealers to develop anti-money laundering ("AML") programs to assist in the prevention and detection of money laundering and combating terrorism. Broker-dealers are also are subject to U.S. sanctions laws administered by the Office of Foreign Assets Control and are expected to have policies and procedures in place to comply with these laws.

*Other Requirements*

Broker-dealers are subject to a host of other rules and requirements including: mandatory arbitration, submitting for SEC and FINRA examinations, maintaining and reporting information on the broker-dealers affiliates (in our case, this includes the parent organization as well as the other subsidiaries), following electronic media and communication guidelines as well as maintaining an AML program.

*Liability*

Under our arrangements that do not use the services of our broker-dealer subsidiary, Section 12(a)(2) of the Securities Act, which applies to Regulation A, imposes liability for misleading statements not only on the issuers of securities but also on "sellers," which includes brokers involved in soliciting an offering. Rule 10b-5 under the Exchange Act generally imposes liability on persons who "make" or disseminate misleading statements. Currently, the information presented on our platform is driven by the issuers. Additional liability may arise from as-yet untested provisions such as Section 9(a)(4) of the Exchange Act, discussed above.

Broker-dealers are subject to heightened standards of liability. Not only do broker-dealers have potential liability under Section 12(a)(2) but we also are subject to liability under Rule 10b-5. Broker-dealers may also be subject to liability for failure to comply with SEC and FINRA requirements, including claims that we can be held liable for the behavior of our agents (control person liability), claims regarding unsuitable recommendations, violations of margin rules, breach of contract, common law claims of fraud and various claims under state laws.

***Regulation S***

Issuers that rely on Regulation S are still required to comply with the requirements of the jurisdiction in which their securities are sold.

***Operation of ATS***

The ATS must be operated by a broker-dealer. Our broker-dealer, StartEngine Primary, is governed by the rules regulating broker-dealer trading systems. Regulation ATS includes provisions that govern the operations an ATS such as those that relate to fees charged, fair access to the trading system, system requirements (capacity, integrity and security), display of orders and capacity to execute those orders, recordkeeping and reporting, and establishing procedures including related to confidentiality of trading information, among other things.

Operating an ATS, means that we also need to ensure compliance with relevant state laws, referred to as blue sky requirements. While states are preempted from regulating many facets of initial offerings (e.g., in Regulation A and Regulation Crowdfunding), secondary offerings, the type that will occur on our ATS, are not pre-empted under state laws. Therefore, even though a security may be freely tradeable under federal laws, our ATS and issuers will need to comply with the blue sky requirements as well.

***Transfer Agent Regulations***

As a registered transfer agent, we are required to comply with all applicable SEC rules, which predominantly includes the rules under Section 17A(c) of the Exchange Act. The requirements for transfer agents include:

&nbsp;&nbsp;&nbsp;&nbsp;· minimum performance standards regarding tracking,
recording and maintaining the official record of ownership of securities of a company and related recordkeeping and reporting rules;

&nbsp;&nbsp;&nbsp;&nbsp;· timely and accurate creation of records for security
holders; and

In addition, we must comply with various state corporate and securities laws as well as provisions of the Anti-Money Laundering (AML) regulations, Office of Foreign Assets Regulations (OFAC) and the Foreign Account Tax Compliance Act (FATCA).

***Exempt Reporting Adviser***

An exempt reporting adviser is an exemption from full registration with the SEC under the Investment Advisers Act of 1940, and specifically, we are the private fund adviser exemption, which is generally available to advisers that only manage private funds and have less than $150 million in assets under management. As an ERA, our subsidiary not only has to make and initial and ongoing public filing Form ADV Part 1, but also has compliance requirements including, record keeping requirements, requirements with respect to material nonpublic information and compliance with the Advisers Act's anti-fraud provisions. Currently, StartEngine Adviser LLC is the adviser for all the SE Funds.

**Intellectual Property**

We have a trademark for "StartEngine" in the United States. We do not own any patents; however, we have our own proprietary source code that we use in operating our platform. We also have a patent pending covering peer to peer trading.

**Litigation**

From time to time we may be involved in various disputes and litigation matters that arise in the ordinary course of business. Except as described below, the Company is not currently involved in any material litigation or threatened litigation.

The Company was recently involved in an arbitration suit with an issuer whose offering was being conducted on the Company platform, StartEngine Capital. In 2021, the Company terminated the issuer's offering and refunded investors for the amount previously raised prior to the termination. The issuer brought a claim against the Company for improperly relying on a recent SEC enforcement against a different crowdfunding portal in determining their course of action against the issuer. The Company and the issuer entered arbitration proceedings in July 2023. The matter was resolved on January 19, 2024 and payment of the settlement was resolved in March 2024. The settlement amount totaled $2.1 million of which the Company paid $200,000 with the remaining $1,900,000 covered by the Company's liability insurance policy. The matter is now considered closed. The Company recuperated the $200,000 payment in February 2025.

**Available Information and Reports to Security Holders**

We are currently required to file annual, quarterly and current reports with the SEC, as well as proxy statements, information statements, and other information with the SEC. Our SEC filings will also be available to the public from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.

Our website address is http://www.startengine.com**.** Information contained on the website does not constitute part of this Registration Statement. We have included our website address in this Offering Statement solely as an inactive textual reference. We make available, through a link to the SEC's website, electronic copies of the materials we file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, the Section 16 reports filed by our executive officers, directors and 10% stockholders and amendments to those reports.

**THE COMPANY'S PROPERTY**

We do not own any significant property. We are currently working remotely. We a have a service agreement for our office space at 4100 W Alameda Ave., Suite 300, Burbank, CA 91505. It is a month-to-month agreement.

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

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and related notes for the periods ended March 31, 2026 and March 31, 2025 and our audited financial statements and related notes for the fiscal years ending December 31, 2025 and 2024, included in this Offering Circular. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of certain factors. We discuss certain factors that we believe could cause or contribute to these differences below and elsewhere in this Offering Circular.*

*In addition to our consolidated financial statements, 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. See "Forward-Looking Statements" and "Risk Factors" for a discussion of the uncertainties, risks and assumptions associated with these statements.*

**Our Company**

StartEngine Inc. was incorporated on March 19, 2014 in the State of Delaware. The Company was originally incorporated as StartEngine Crowdsourcing, Inc., but changed its name on May 8, 2014 to StartEngine Crowdfunding Inc., and then again, to to its current name on June 15, 2026. The Company's revenue-producing activities commenced in 2015 with the effectiveness of the amendments to Regulation A under the Securities Act adopted in response to Title IV of the JOBS Act. Operations expanded in 2016, as Regulation Crowdfunding, adopted in response to Title III of the JOBS Act, went into effect. On June 10, 2019, our subsidiary, StartEngine Primary LLC, was approved for membership as a broker-dealer with FINRA. The Company's subsidiary, StartEngine Adviser LLC filed as an exempt reporting advisor with the SEC on January 8, 2024.

**Business and Trends**

***Business***

We generate revenue through multiple products, services, and transaction-based offerings across our platform.

Regulation A offerings: Our broker-dealer subsidiary is permitted to charge commissions to the companies that raise funds on our platform. Regulation A offerings are subject to a commission ranging between 4% and 7% and usually include warrants to purchase shares of the Company or the securities that are the subject of the offering. The amount of commission is based on the risks and other factors associated with the offering.

StartEngine Primary: we charge commissions on Regulation D offerings hosted on our platform. During the periods covered in these financial statements we did not receive any Regulation D commissions.

Regulation Crowdfunding offerings: our funding portal subsidiary is permitted to charge commissions to the companies that raise funds on our platform. We typically charge 6% to 10% for Regulation Crowdfunding offerings on our platform.

We generate additional revenue from products and services, which include the following:

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Premium: A consulting package for
Regulation Crowdfunding issuers priced at flat fee to help companies who raise capital with Regulation Crowdfunding.

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Secure : Transfer agent services.
In Q2 2024, the Company shifted the Secure billing from annual invoices at fee per investor to tiered service annual contract for a flat
fee billed monthly.

&nbsp;&nbsp;&nbsp;&nbsp;· Amendment Fee: We charge fees for certain amendments
we file on behalf of companies raising capital under Regulation Crowdfunding.

&nbsp;&nbsp;&nbsp;&nbsp;· Bad Actor Fees: We charge fees to run the required
bad actor checks for companies utilizing our services.

StartEngine Venture club : Our annual memberships for the StartEngine Venture Club bonus program are $275 per year.

StartEngine Secondary: We launched StartEngine Secondary on May 18, 2020 and generate revenues by charging trade commissions to the sellers of the shares. Through March 31, 2026, the Company and twenty-four additional companies have been quoted on this platform. Currently, for StartEngine Secondary, we generate revenues by charging trade commissions to the sellers of the shares and we intend to generate revenues by charging a 2.5% commission to the seller and 2.5% to the buyer.

&nbsp;&nbsp;&nbsp;&nbsp;· SE Funds: In Q3 2023 the Company began providing
accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital
backed, late-stage private companies via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager
LLC and advised by StartEngine Adviser LLC, an exempt reporting adviser. StartEngine generates revenue on sales to the SE funds, carried
interest earned on profits of the funds, and annual management fees.

&nbsp;&nbsp;&nbsp;&nbsp;· StartEngine Gold: StartEngine Gold launched in
July 2025. This service provides dedicated crowdfunding marketing support and access to licensed registered representatives
who engage with leads and investors within an issuer's proprietary funnel to help facilitate additional investments in the offering,
where appropriate at a flat monthly fee.

&nbsp;&nbsp;&nbsp;&nbsp;· Vinovest: Through our acquisition of Vinovest,
we generate revenue from the management, storage, insurance, authentication, and trading of alternative assets, including fine wine and
spirits, providing an additional recurring revenue stream alongside our capital formation services.

***Trend Information***

We are operating in a relatively new industry and there is a level of uncertainty about how fast the volume of activity will increase and how future regulatory requirements may change the landscape. We continue to innovate and introduce new products to include in our current mix as well as continuing to improve our current services such as providing liquidity for our investors and issuers.

As we are a financial services company, our business, results of operations, and reputation are directly affected by elements beyond our control, such as economic and political conditions including unemployment rates, inflation and tax and interest rates, financial market volatility (including related to tariffs), war and fears of war (including the recent conflict with Iran), outbreaks of disease, broad trends in business and finance, and changes in the markets in which such transactions occur (such as the bear markets that developed for equities in the second and third quarter of 2022), we might be disproportionately affected by declines in investor confidence caused by adverse economic conditions.

On August 6, 2023, the Company launched "StartEngine Private", a venture to provide accredited investors the opportunity to purchase membership interests in series which own shares of VC backed, and generally late-stage private companies(the "underlying securities"). The Company treats the amount it receives for selling underlying securities as revenues, and the acquisition cost related to such underlying securities as cost of revenues. StartEngine Private is currently our largest source of revenue. While StartEngine Private offerings have been successful in 2025 and the Company expects that it will continue as its largest revenue source in foreseeable future, the Company has experienced an expected slowdown in revenue from this line of business due to limited availability of stock for purchase of in demand companies, and limited purchase slots available for each offering. In both Q1 2025 and Q2 2025, the underlying securities for the offering were of the world's largest privately held companies. Since then, including during Q1 2026, many of the companies on the Platform were smaller and lesser known. The Company continues to invest in this line of business and anticipate that expenses related to the purchases and sales of StartEngine Private securities will change in tandem with the revenue generated. Currently, the Company has 7 sales associates dedicated to selling investments in StartEngine Private offerings and will continue to evaluate necessary headcount as StartEngine Private grows.

As a Company, we are always reevaluating processes and procedures as it pertains to the success of the business. As such, the Company remains agile on changes in the market as well as the demand for services provided by the Crowdfunding industry. At the end of 2024, the Company determined that a reduction in workforce was necessary as the staffing required to support current issuer activity on the platform. This adjustment reflects the Company's strategic focus on higher-growth business lines that require fewer personnel.

In 2024, the Company began hosting its new Regulation Crowdfunding issuances with the broker-dealer entity for regulatory and compliance reasons. As the legacy Regulation Crowdfunding raises complete their issuance, the remaining revenue from them will be booked to the current StartEngine Capital entity, which is not a broker-dealer. We expect that this transition to all Regulation A and Crowdfunding raises will be complete by the end of 2025. As of December 31, 2025, all of our current crowdfunding raises are conducted through our broker-dealer.

In March 2026, the Company acquired Vinovest, Inc., a leading platform for fine wine and whiskey investment. Vinovest uses data and industry expertise to source, authenticate, and facilitate the storage of high-quality bottles in bonded warehouses. The platform supports portfolio management, including coordinating insurance, and logistics, while investors can track performance over time and choose to sell or take delivery of their holdings. Vinovest has also developed relationships in the wine industry, allowing top wineries from around the world to reach the next generation of collectors and investors in the company's network. The Company has onboarded 4 employees from Vinovest to StartEngine and has begun integrating systems and customer lists. Vinovest will continue to operate independently of the Company to offer products to investors.

**Operating Results**

***Three Months Ended March 31, 2026 Compared with the Three Months Ended March 31, 2025***

The following table summarizes the results of our operations for the three months ended March 31, 2026 ("Q1 2026") as compared to the three months ended March 31, 2025 ("Q1 2025") and includes Adjusted EBITDA. For discussion of Adjusted EBITDA and reconciliation to the most comparable U.S. GAAP financial measures, see "Non-U.S. GAAP Financial Measures" below.

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** | **$ Change** |
| Revenues | $25049691 | $30364357 | $(5314666) |
| Cost of revenues | 18190810 | 20299424 | (2108614) |
| Gross profit | 6858881 | 10064933 | (3206052) |
| Operating expenses: |  |  |  |
| General and administrative | 4019366 | 3328479 | 690887 |
| Sales and marketing | 3706012 | 3337696 | 368316 |
| Research and development | 1418463 | 1399602 | 18861 |
| Change in fair value of shares received for fees | 442030 | 298945 | 143085 |
| Total operating expenses | 9585871 | 8364722 | 1221149 |
| Operating income (loss) | (2726990) | 1700211 | (4427201) |
| Other income (expense) |  |  |  |
| Other income (expense), net | 513820 | 25580 | 488240 |
| Total other income (expense), net | 513820 | 25580 | 488240 |
| Income (loss) before provision for income taxes | (2213170) | 1725791 | (3938961) |
| Taxes - Other | 21734 | 8340 | 13394 |
| Net income (loss) | (2234904) | 1717451 | (3952355) |
| Less: net loss attributable to noncontrolling interest |  |  |  |
| Net Income (loss) attributable to stockholders | $(2234904) | $5238793 | $(7473697) |
| Adjusted EBITDA | 1525655 | 5238793 | $(3713138) |

---

Our revenues during the three months ended March 31 2026 were $25,049,691, compared to $30,364,357 for the three months ended March 31, 2025, which represented a decrease of $5,314,666 or 18%. The table below represents the major components of our revenues during the three month periods ended March 1, 2026 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months**<br>**Ended March 31,**<br>**2026** | **Three Months**<br>**Ended March 31,**<br>**2025** |<br>**$ Change** |
| Regulation Crowdfunding platform fees | $1968122 | $1802197 | $165925 |
| Regulation A commissions | 293618 | 1432818 | (1139200) |
| StartEngine Premium | 138000 | 813895 | (675895) |
| StartEngine Secure | 318475 | 348270 | (29795) |
| StartEngine Private | 20492314 | 24620809 | (4128495) |
| Venture Club revenue | 1381762 | 1343208 | 38554 |
| Vinovest | 272241 |  | 272241 |
| Other service revenue | 185159 | 3160 | 181999 |
| Total revenues | $25049691 | $30364357 | $(5314666) |

---

The decrease in total revenues during the three months ended March 31, 2026 as compared to the same period in 2025 is primarily due to the decrease in StartEngine Private revenue of $4,128,495. The decrease in Private revenue is driven by less inventory for sale as well as declining interest in the Company's current offerings. As such, the Company has begun taking measures to add new offerings and funds that will create higher interest in offerings for the remainder of 2026. There can be no assurance that these measure will be successful.

For the three months ended March 31, 2026, compared to the same period in 2025, the Company observed the following revenue trends across its other product lines:

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in Regulation Crowdfunding platform fees of $165,925:* The increase in Regulation Crowdfunding platform fees was primarily driven by higher raise
totals for issuers within the period. In 2026, the Company hosted raises of more successful issuers that had increased demand from
issuers compared to 2025. In addition, the Company had more live raises in Q1 2026 compared to Q1 2025, which increased investment and
revenue for the period.

&nbsp;&nbsp;&nbsp;&nbsp;· *Decrease* *in Regulation A commissions of $1,139,200:* The decrease is due primarily to lower amounts raised in Regulation A offerings for its issuers. Regulation
A revenue is more sensitive to revenue variance based on the limited number of Regulation A raises hosted on the platform, and as such
will experience a higher rate of variance based on the success of these issuers.

&nbsp;&nbsp;&nbsp;&nbsp;· *Decrease in StartEngine Premium revenue of $675,895:* The increase is due to several factors, including shift in payment strategy and fewer
issuers utilizing the services.

&nbsp;&nbsp;&nbsp;&nbsp;· *Addition of Vinovest revenue of $272,241:* The Company acquired Vinovest on March 17, 2026 and included revenue from acquisition date until the end of the period.

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in other service revenue of $181,999*: The increase is due to the addition of the StartEngine Gold service line which began in 2025 and
posted $182,500 of revenue within the period.

***Cost of Revenues***

Cost of revenues consists of internal employees, hosting fees, processing fees, certain software subscription fees that are required to provide services to our issuers, and for StartEngine Private acquisition costs related to underlying securities that it has sold to an SE Fund. Specifically, cost of revenues for StartEngine Private were $15,041,467 and $16,976,724 for the three months ended March 31, 2026 and 2025, respectively. Our total cost of revenues during the three months ended March 31, 2026 and 2025 was $18,190,810 and $20,299,424, respectively. The decrease was primarily due to the decrease in StartEngine Private revenue for the quarter.

***Operating Expenses***

Our total operating expenses during the three months ended March 31, 2026 amounted to $9,585,871, which represented an increase of $1,221,149, or 15%, from the expenses in the same period in 2025. The decrease in operating expenses is primarily due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in general and administrative expenses of $690,887:* Primarily due to an increase in compensation for employees related to the
success of the Company in 2025, as well as the increase in software expenses as the Company began utilizing artificial intelligence applications
for increased efficiency, and finally increased legal costs as the Company began exploring opportunity to increase the scope of some of
our current offerings.

&nbsp;&nbsp;&nbsp;&nbsp;· *Sales and marketing expenses increased by $368,316:* Primarily due to higher headcount within the department which led to higher compensation and accrual for 2026 performance
bonuses. Additionally, the Company increased market research and consulting cost as the Company worked towards reaching more potential
investors in 2026.

&nbsp;&nbsp;&nbsp;&nbsp;· Impairment in fair value of shares received for
fees expense increased $143,085 for the period based on review of the underlying value of the stock held by the Company.

***Other Expense (Income), net***

Our other income, net during the three months ended March 31, 2026 amounted to $513,820, which represented a gain on sale from the Company's owned portion of Private investments, cashback earned from our credit cards during the period as well as interest earned in the Company's money-market accounts. During the same period in 2025 our other income, net was $25,580 which was also related to cashback earned.

***Net Loss (Income)***

Net loss attributable to stockholders totaled $2,234,904 for the three months ended March 31, 2026, an decrease of $3,952,355 compared to the net income attributable to shareholders of $1,717,451 recognized during the three months ended March 31, 2025.

***Adjusted EBITDA***

Adjusted EBITDA totaled $1,525,655 for the three months ended March 31, 2026, a decrease of $3,713,138 compared to $5,238,793 in Adjusted EBITDA during the three months ended March 31, 2025.

***Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024***

The following table summarizes the results of our operations for the fiscal year ended December 31, 2025 as compared to the fiscal year ended December 31, 2024 and includes Adjusted EBITDA. For discussion of Adjusted EBITDA and reconciliation to the most comparable U.S. GAAP financial measures, see "Non-U.S. GAAP Financial Measures" below.

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** | **$ Change** |
| Revenues | $109580580 | $48625508 | $60955072 |
| Cost of revenues | 71699643 | 25873241 | 45826402 |
| Gross profit | 37880937 | 22752267 | 15128670 |
| Operating expenses: |  |  |  |
| General and administrative | 15621099 | 13758127 | 1862972 |
| Sales and marketing | 12858746 | 16473905 | (3615159) |
| Research and development | 5356424 | 7796521 | (2440097) |
| Change in fair value of warrants received for fees | 6083 | 135384 | (129301) |
| Change in fair value of shares received for fees | 2590872 | 724933 | 1865939 |
| Total operating expenses | 36433224 | 38888870 | (2455646) |
| Operating income (loss) | 1447713 | (16136603) | 17584316 |
| Other income (expense) |  |  |  |
| Other income (expense), net | 119745 | (400055) | 519800 |
| Total other income (expense), net | 119745 | (400055) | 519800 |
| Income (loss) before provision for income taxes | 1567458 | (16536658) | 18104116 |
| Taxes - Other | 94606 |  | 94606 |
| Net income (loss) | 1472852 | (16536658) | 18009510 |
| Adjusted EBITDA | $14040204 | $(1812901) | $15853105 |

---

*Revenues*

Our revenues during the fiscal year ended December 31, 2025 were $109,580,580, compared to $48,625,508 for the fiscal year ended December 31, 2024, which represented an increase of $60,955,072, or 125%. The table below represents the major components of our revenues during the year ended December 31, 2025 and 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended**<br>**Ended December 31,**<br>**2025** | **Year Ended**<br>**Ended December 31,**<br>**2024** |<br>**$ Change** |
| Regulation Crowdfunding platform fees | $10562073 | $8672825 | $1889248 |
| Regulation A commissions | 2052926 | 2711712 | (658786) |
| StartEngine Premium | 2971335 | 2455425 | 515910 |
| StartEngine Secure | 1348363 | 1366502 | (18139) |
| StartEngine Private | 86603559 | 27883143 | 58720416 |
| Venture Club (formerly OWNers Bonus) revenue | 5651857 | 5352347 | 299510 |
| Other service revenue | 390467 | 183554 | 206913 |
| Total revenues | $109580580 | $48625508 | $60955072 |

---

The increase in total revenues in year ended December 31, 2025 as compared to the same period in 2024 is primarily due to StartEngine Private. The growth in 2025 is primarily due to the Company acquiring the stock of some of the most coveted privately held stock in the market. The $86,603,559 represents closings on 41 StartEngine Private offerings, and the Company plans to continue growing this revenue source in the future, though growth of this revenue stream may be bound by factors such as limited availability of stock for purchase of in demand companies, and limited purchase slots available for each offering. The Company continues to look for avenues to explore growth of this revenue stream. Though this is a significant increase in revenues we note this is a lower margin product, see "Cost of Revenue" below.

Specifically, for the year ended December 31, 2025, compared to the same period in 2024, the Company observed the following revenue trends across its other product lines:

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in Regulation Crowdfunding platform fees of $8,672,825*: The increase in Regulation Crowdfunding platform fees was primarily
driven by higher raise totals for issuers within the period. In 2025, the Company hosted raises of more successful issuers that
had increased demand from issuers compared to 2024.\*

&nbsp;&nbsp;&nbsp;&nbsp;· *Decrease in Regulation A commissions of $2,711,712:* The
decrease is due primarily to lower amounts raised in Regulation A offerings for its issuers. Regulation
A revenue is more sensitive to revenue variance based on the limited number of Regulation A raises hosted on the platform, and as such
will experience a higher rate of variance based on the success of these issuers.

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in StartEngine Premium revenue of $2,455,425:* The
increase is due to several factors, including shift in payment strategy; more issuers utilizing the services; and price increases *.* 

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in StartEngine Venture Club revenue of $5,352,347:* This
increase is primarily due to increased sales of Venture Club during 2025 as the Company adds greater
focus towards growing this revenue source. Venture Club memberships are annual packages, see Note 2 – "Revenue Recognition"
to the accompanying financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in other service revenue of $183,554*: The
increase is due to the addition of the StartEngine Gold service line which began in 2025 and posted $357,500 of revenue within the period.

\**Offerings can span multiple periods and the amount raised during a period is based on the amounts closed on during that period.*

***Cost of Revenues***

Cost of revenues consists of internal employees, hosting fees, processing fees, certain software subscription fees that are required to provide services to our issuers, and for StartEngine Private acquisition costs related to underlying securities that it has sold to an SE Fund. Specifically, cost of revenues for StartEngine Private were $59,832,368 and $17,281,432 for year ended 2025 and 2024, respectively. Our total cost of revenues during the year ended December 31, 2025 and 2024 was $71,699,643 and $25,873,241, respectively. The increase was primarily due to the increase in price of the underlying securities for StartEngine Private in addition to increases in costs associated with selling StartEngine Private products such as sales commission.

***Operating Expenses***

The Company's total operating expenses during the year ended December 31, 2025 amounted to $36,433,224, which represented a decrease of $2,455,646 or 6%, from the expenses in the same period in 2024. The decrease in operating expenses is primarily due to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Increase in general and administrative expenses of $1,862,972*: Primarily due to an increase in compensation for employees related to the success of the Company in 2025 as well as the increase in software expenses as the Company began utilizing artificial intelligence applications for increased efficiency, and finally increased legal costs as the Company began exploring opportunities for international offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Sales and marketing expenses decreased by $3,615,159 for the year ended December 31, 2025:* Primarily due to lower headcount within the department which led to lower compensation and accrual for 2025 performance bonuses. Additionally, the Company reduced advertising expense and market research cost as the Company focused on reducing expense in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· *Decrease in research and development expenses of $2,440,097:* D ue to decrease in employee payroll as the Company reduced headcount at the end of 2024 as the Company focused efforts on increasing productivity with AI and less headcount.

These decreases were partially offset by an increase in write down of shares received for fees by $1,865,939 as the Company had a larger write down of share expense in 2025 due to more write down of historically held stock.

*Other Expense (Income), net*

Our other income, net during the year ended December 31, 2025 amounted to $119,745, which represented cashback earned from our credit cards during the period as well as interest earned in the Company's money-market accounts. During the same period in 2024 our other expense, net was $400,055 due to the sale of a real estate investment.

***Net Income (Loss)***

Net income totaled $1,472,852 for the year ended December 31, 2025, an increase of $18,009,510 compared to a net loss of $16,536,658 recognized during the year ended December 31, 2024.

***Adjusted EBITDA***

Adjusted EBITDA totaled $14,040,204 for the year ended December 31, 2025, an increase of $15,853,105 compared to adjusted EBITDA loss of $1,812,901 in Adjusted EBITDA during the year ended December 31, 2024.

**Critical Accounting Policies**

See Note 2 in the accompanying financial statements.

*Use of Estimates*

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amount of expenses during the reporting periods. Significant estimates include the value of marketable securities; the value of stock and warrants received as compensation and collectability of accounts receivable. Actual results could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

A significant portion of the Company's assets relate to investments in stock and previously warrants received as compensation from issuer companies undertaking Regulation Crowdfunding or Regulation A offerings. As described in Note 2, in the accompanying financial statements, stock and warrants require significant unobservable inputs, primarily related to the underlying stock price of the security received which may include marketability discounts. Warrants have further unobservable inputs related to the estimated life. In all cases, there were sales of stock to the public through Regulation Crowdfunding or Regulation A funding mechanism, but such sales are often not to the level that an active market existed or exists. Once the funding round is concluded it is difficult to ascertain the fair value of the issuer shares or the status of the issuer's financial health, unless additional rounds of financing are undertaken in a public setting, or the issuer reports reliable and regular information publicly. Any change in the underlying shares would impact on the valuation of the related investments. Shares held are generally illiquid. Valuations require significant management judgment related to these unobservable inputs.

As many of the companies that undertaking Regulation Crowdfunding and Regulation A are considered emerging growth companies, require significant capital to maintain or commence operations, and often contain warnings regarding substantial doubt about the Company's ability to continue as a going concern, it is reasonable to conclude that through the passage of time, a significant portion of the stock and warrants held by the Company will ultimately be deemed worthless, decline in value, or in the case of warrants, expire without exercise. Similar to traditional venture capital results, it is reasonable to conclude that only a small portion of each investment may ever increase in value.

***Investments – Stock***

In connection with negotiated platform fee agreements, the Company obtains shares of stock in its customers. Our accounting for investment in our customers stock depends on several factors, including the level of ownership, and power to control. We base our accounting for such securities on: (i) fair value accounting, (ii) equity method accounting, and (iii) cost method accounting. As the stock received from customers have no readily determinable fair values and generally represent small amounts of ownership in our customers, the Company accounts for this stock received using the cost method, less adjustments for impairment in accordance with ASC 321 10 35 2. During the year ended December 31, 2025 and 2024, the Company received stock with a cost of $1,854,519 and $2,429,556, respectively, as payment for fees. During the year ended December 31, 2025 and 2024, write down expense related to shares received amounted to $2,590,872 and $724,933, respectively. During the three months ended March 31, 2026 and 2025, the Company received stock with a cost of $220,179 and $609,121, respectively, as payment for fees. During the three months ended March 31, 2026 and 2025, write down expense related to shares received amounted to $442,030 and $298,945, respectively. The basis for writing down this stock is to evaluate if the issuer has performed a raise on the Company's platform within the last year. If the Company has, the stock value is updated to the current issuance price. If there has not been a raise, the Company writes down the value of the shares by 33%. This has been deemed reasonable as the shares of privately traded illiquid stocks are difficult to price, and the Company has determined through research that a markdown of this amount is reasonable due to assumed loss in value based on no new raises being hosted.

***Stock-Based Compensation***

Stock-based compensation is measured at the grant date based on the estimated fair value of the award and recognized as expense over the requisite service period, which is generally the vesting period. The Company grants equity awards with a four-year vesting schedule, consisting of a 12-month cliff under which 25% of the award vests upon the first anniversary of the grant date, and the remaining 75% vests ratably over the subsequent 36 months. The fair value of stock-based awards is estimated using the Black-Scholes option pricing model, which requires the use of subjective assumptions, including expected volatility, expected term, risk-free interest rate, and expected dividend yield. These assumptions involve significant management judgment and may differ from actual results. Accordingly, the Company recognizes stock-based compensation expense on a straight-line basis over the service period, adjusted for estimated forfeitures, and revises its estimates as necessary if actual forfeitures differ from initial expectations.

***Collectibles***

The Company records collectibles at cost in accordance with the Company's policy. These long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In general, we believe that we purchase these assets in arms-length transactions at fair value and such transactions are evidence of fair market value in the near term. For collectibles, over time, and as trends change and economic factors affect various markets for which we hold assets, the estimation of certain assets that do not trade in a regular market may be difficult to assess for fair value. Certain assets may be subject to market manipulation or overproduction that could affect the underlying value of like or similar items. The quality of authentication bodies may affect future valuation. If there are limited data points to assess fair value, especially for one-of-a-kind collectibles, we may not identify impairments in a timely manner. Many of the collectibles have value that is in the eye of the beholder. Accordingly, there is significant uncertainty to what these assets would be valued at in subsequent arms-length transactions.

**Liquidity and Capital Resources**

***Statement of Cash Flows – Three months ended March 31, 2026 Compared with March 31, 2025***

The following table summarizes, for the periods indicated, selected items in our condensed Statements of Cash Flows:

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | |
|  | **March 31,** | **March 31,** | |
|  | **2026** | **2025** |<br>**$ Change** |
| Net cash provided by (used in) operating activities | $(2351559) | $5884277 | $(8235836) |
| Net cash provided by investing activities | $3525206 | $1475446 | $2049760 |
| Net cash provided by financing activities | $1024108 | $680271 | $343837 |

---

Cash used in operating activities for the three months ended March 31, 2026 was $2,351,559 as compared to cash provided by operating activities of $5,884,277 for the same period in 2025. This decrease was driven by a change from net income to net loss from Q1 2025 to Q1 2026, an increase in accounts receivable for the period ended March 31, 2026 compared to 2025 as well as a decrease in accrued liabilities in 2026 related to the Company paying accrued year-end performance bonuses.

Cash provided by investing activities for the three months ended March 31, 2026 was $3,525,206, as compared $1,475,446 in the same period in 2025. The increase was driven by the cash proceeds from the acquisition of Vinovest in March 2026.

Cash provided by financing activities for the three months ended March 31, 2026 was $1,024,108, as compared to cash provided by investing activities of $680,271 in the same period in 2025. This relates to our Regulation A raises during both these periods.

***Statement of Cash Flows – Fiscal year ended December 31, 2025 Compared with December 31, 2024***

The following table summarizes, for the periods indicated, selected items in our Statements of Cash Flows:

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| | | | |
|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | |
|  | **December 31,** | **December 31,** | |
|  | **2025** | **2024** |<br>**$ Change** |
| Net cash provided by (used in) operating activities | $12285480 | $(4275484) | $16560964 |
| Net cash provided by investing activities | $1467604 | $202892 | $1264712 |
| Net cash provided by financing activities | $3791880 | $2258591 | $1533289 |

---

Our net income during the year ended December 31, 2025 was $1,472,852, as compared to a net loss of $16,536,658 during the year ended December 31, 2024.

Cash provided by operating activities for the year ended December 31, 2025 was $12,285,480 as compared to cash used by operating activities of $4,275,484 for the same period in 2024. The increase in cash provided by operating activities in 2025 was primarily due to the increase in net income as well as the increase of accounts receivable by $4,252,374 offset by the increase in the net purchase of Private assets by $9,029,436 from 2024 to 2025.

Cash received from investing activities for the year ended December 31, 2025 was $1,467,604 and $202,892 for the year ended December 31, 2025 and December 31, 2024, respectively. The increase due to the sale of the residential building formerly held by the Company for a cash inflow of $1,479,310.

Cash provided by financing activities was $3,791,880 and $2,258,591 for the year ended December 31, 2025 and December 31, 2024, respectively. The increase of cash inflow is primarily due to the increase in the net proceeds from sale of common stock of $947,331.

***Balance Sheet***

The following table summarizes our assets and liabilities as of March 31, 2026, December 31, 2025 and December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Assets |  |  |  |
| Current assets: |  |  |  |
| Cash | $30585016 | $28387261 | $10842297 |
| Marketable securities | 1856 | 1856 | 1856 |
| Accounts receivable, net of allowance | 1847100 | 1108093 | 2848880 |
| Other current assets | 1248404 | 929326 | 1032932 |
| Total current assets | 33682376 | 30426536 | 14725965 |
| Property and equipment, net | 142315 | 125213 | 126698 |
| Investments - warrants | 54021 | 54021 | 60103 |
| Investments - stock | 8921144 | 9142997 | 10327834 |
| Investments - Private | 14140085 | 13990161 | 4701010 |
| Investments - Collectibles | 3953042 | 2362083 | 2361996 |
| Investments - Real Estate | 196890 |  | 1479310 |
| Due from related party | 26760638 | 233890 | 209360 |
| Intangible assets |  | 15035049 | 18463620 |
| Other assets | 33847 | 33847 | 33847 |
| Total assets | $87884358 | $71403797 | $52489743 |
| Liabilities |  |  |  |
| Current liabilities: |  |  |  |
| Accounts payable | $1497191 | $990993 | $542903 |
| Accrued liabilities | 10355379 | 10196824 | 6725780 |
| Deferred revenue | 3757788 | 3569450 | 2880316 |
| Total current liabilities | 15610358 | 14757267 | 10148999 |
| Total liabilities | $15610358 | $14757267 | $10148999 |

---

***Three months ended March 31, 2026 Compared with March 31, 2025***

The Company's current assets increased by $3,255,840 from December 31, 2025 to March 31, 2026. The increase was primarily driven by an increase in cash in the amount of $2,197,755, driven by the sale of additional StartEngine Private investments. Additionally, Accounts Receivable increased by $739,007 from December 31, 2025 to March 31, 2026.

The Company's long-term assets increased by $13,224,721 from December 31, 2025 to March 31, 2026, primarily due to acquisition of Vinovest, Inc. for $14 million in Q1 2026, including an intangible asset of $12,653,239.

Current liabilities increased by $853,091 which is primarily due to the increase of accounts payable as of March 31, 2026.

***Fiscal year ended December 31, 2025 Compared with December 31, 2024***

The Company's current assets increased by $15,700,571 from December 31, 2024 to December 31, 2025. The increase was primarily driven by an increase in cash of $17,544,964 offset by a corresponding decrease in accounts receivable by $1,740,787.

The Company's long-term assets increased by $3,213,483 from December 31, 2024 to December 31, 2025. This was driven primarily by an increase in Private assets of $9,289,151 due to purchases of shares to sell in future offerings. This increase was offset by a $3,428,571 decrease in intangible assets from the purchase of SeedInvest assets less the amortization for the period as well as $1,479,310 decrease in real estate investment as the Company sold its remaining membership of the building in 2025.

Current liabilities increased by $4,608,268 which is primarily due to an increase in accrued liabilities, specifically an increase in investor deposits of $558,393 as well as an increase of accrued liabilities of $697,105 related to year end commission and bonus payment. As the StartEngine Private business continues to scale, we expect these liabilities to be recurring for future periods. Additionally, deferred revenue increase by $689,134 due to the addition of the upfront fee deferrals of $15,000 per issuer.

***Liquidity and Capital Resources***

We do not currently have any significant loans or available credit facilities. As of March 31, 2026, the Company's current assets were $33,682,376. To date, our activities have been funded from our revenues, investments from our founders, the previous sale of Series Seed Preferred Shares, Series A Preferred Shares, Series T Preferred Shares, and our Common Stock in our Regulation A and Regulation CF offerings.

We have no off-balance sheet arrangements, including arrangements that would affect the liquidity, capital resources, market risk support, and credit risk support or other benefits.

The Company currently has no material commitments for capital expenditures.

We believe we have the cash, marketable securities through future fundraising rounds, other current assets available, revenues, and access to funding that will be sufficient to fund operations until the Company starts generating positive cash flows from normal operations.

**Non-U.S. GAAP Financial Measures**

We are presenting a non-GAAP financial measure "Adjusted EBITDA", which is a measure adjusted for the impact of specified items and are not in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) calculated in accordance with GAAP adjusted to exclude interest expense, interest income, income taxes, depreciation, and amortization, and stock based compensation. We present Adjusted EBITDA because it is a key measure used by our management team to evaluate our operating performance, generate future operating plans and make strategic decisions. We believe Adjusted EBITDA provides useful information to investors regarding our operational performance and our ability to generate cash flows. Non-GAAP information should be considered as supplemental in nature and is not meant to be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, our non-GAAP financial measures may not be the same as or comparable to similar non-GAAP financial measures presented by other companies.

The following table reconciles net income (loss), the most directly comparable U.S. GAAP measure, to Adjusted EBITDA for the periods presented:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31, <br> 2026** | **Three Months Ended March 31, <br> 2025** |
| Net Income (Loss) | $(2234904) | $1717451 |
| Interest Income | (29092) | (27) |
| Income Taxes | 21734 | 8340 |
| Depreciation and Amortization | 929658 | 861949 |
| Stock Based Compensation | 2838267 | 2651080 |
| **Adjusted EBITDA** | $**1525663** | $**5238793** |
|  | **Twelve Months Ended December 31, <br> 2025** | **Twelve Months Ended December 31, <br> 2024** |
| Net Income (Loss) | $1472852 | $(16536658) |
| Interest Income | (10065) | (135) |
| Income Taxes | 94606 |  |
| Depreciation and Amortization | 3441762 | 3443874 |
| Stock Based Compensation | 9041049 | 11280018 |
| **Adjusted EBITDA** | $**14040204** | $**(1812901)** |

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**DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES**

As of June 23, 2026, our directors, executive officers and significant employees were as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Name** | <br>**Position** |<br>**Age** | **Term of Office (if**<br>**indefinite, give date**<br>**appointed)** | **Approximate hours**<br>**per week (if**<br>**part-time)/full-time** |
| Executive Officers: |  |  |  |  |
| Howard Marks | CEO | 63 | January 1, 2014, Indefinitely | Full-time |
| Johanna Cronin | Chief Marketing Officer | 37 | March 2014, Indefinitely | Full-time |
| Jonathan Reyes | Chief Compliance Officer | 39 | March 2020, Indefinitely | Full-time |
| Joshua Amster | Chief Revenue Officer | 35 | July 2016, Indefinitely | Full-time |
| Hunter Strassman | Chief Financial Officer | 34 | October 2021, Indefinitely | Full-time |
| Joseph Mathews | Chief Technology Officer | 53 | March 2019, Indefinitely | Full-time |
| Directors: |  |  |  |  |
| Howard Marks | Director | 63 | April 17, 2014, Indefinitely |  |
| Ronald Miller | Director and Chairman | 63 | April 17, 2014, Indefinitely |  |
| Significant Employees: |  |  |  |  |
| N/A |  |  |  |  |

---

**Howard Marks, Co-founder, CEO and Director**

Howard Marks is one of our co-founders and has served as our CEO since January 1, 2017. From our founding in March 2014 until December 2016, Howard served as our Executive Chairman. Howard founded StartEngine, an unrelated entity, in November 2011 as a startup accelerator with the mission to help make Los Angeles a top tech entrepreneurial city. In March 2014, Howard and Ron Miller founded the Company as an equity crowdfunding platform. Howard was the founder and CEO of Acclaim Games, a publisher of online games now part of The Walt Disney company. Before Acclaim, Howard was the Chairman of Activision Studios from 1991 until 1997. As a former Board Member and Executive Vice-President of video-game giant Activision, he and a partner took control in 1991 and turned the ailing company into the $20 billion market cap video game industry leader. As a games industry expert, Howard built one of the largest and most successful games studios in the industry, selling millions of games. Howard is the 2015 "Treasure of Los Angeles" recipient, awarded for his work to transform Los Angeles into a leading technology city. Howard is a member of Mayor Eric Garcetti's technology council. Howard has a Bachelor of Science in Computer Engineering from the University of Michigan. He is bilingual and is a triple national of the United States, United Kingdom, and France.

**Ronald Miller, Co-founder and Executive Chairman**

Ron Miller is the executive chairman and cofounder of StartEngine. Ron served as our CEO and a director since our founding in March 2014 until December 2016. On January 1, 2017, Ron became our executive chairman. He is also currently the founder of the Disability Group Inc., and has served as its CEO since 2004. When Howard and Ron initially met in the fall of 2013, they recognized that the JOBS Act represented the greatest advancement for entrepreneurship in a generation. From direct experience as entrepreneurs, they recognized that the key to bringing new technologies and innovations to market required capital that is not readily available. As a serial start-up entrepreneur, Ron immediately went into action to advocate for SEC rulemaking to give life to the JOBS Act, raise the initial capital and built a leadership team to drive the sales and market plan to help StartEngine establish a leadership place in the market.

Prior to StartEngine, Ron founded built and sold five companies through management buyouts, private equity, private investors, and public markets. He was also nominated as a four-time Inc. 500/5000 award recipient and was Ernst & Young entrepreneur of the year award finalist. As the executive chairman, Ron brings his deep experience as a leader and strategist to the Company.

**Johanna Cronin, Chief Marketing Officer**

Johanna Cronin is the Chief Marketing Officer at StartEngine and is the sole manager of our subsidiary StartEngine Assets LLC. She was the first employee and began working for StartEngine in 2014. Prior to that she served as an SEM analyst, managing paid media budgets and purchasing media placements for small businesses, for Dex Media, Inc. from March 2012 until March 2014. Johanna received her Bachelor of Arts from Northwestern University, where she was a psychology major with a Spanish minor.

**Jonathan Reyes, Chief Compliance Officer**

Jonathan Reyes has served as the Chief Compliance Officer at StartEngine Inc., StartEngine Capital, LLC, and StartEngine Primary LLC since December 2020. Before becoming Chief Compliance Officer, Jonathan was the first in-house attorney to work for StartEngine, serving in various roles on the compliance team dating back to May 2017. Jonathan received his Juris Doctorate and Masters in Business Administration from Pepperdine University, and received a fellowship certificate from Pepperdine's Geoffrey H. Palmer Center for Entrepreneurship & the Law. Before that, Jonathan received his Bachelor of Science from Boston College where he was a triple major in Management and Leadership, Marketing, and Human Resource Management.

**Joshua Amster, Chief Revenue Officer**

Josh Amster is Chief Revenue Officer at StartEngine. He joined StartEngine in February of 2016. Before joining StartEngine, he worked alongside Allen Jebsen in business development and sales operations at AEG. He graduated from Middlebury College with a Bachelor of Arts in History. He holds his Series 7, 63, 79, and 24 certifications from FINRA.

**Hunter Strassman, Chief Financial Officer**

Hunter Strassman is Chief Financial Officer and is responsible for the finance and operations of StartEngine. Prior to joining StartEngine in April 2021, Hunter worked as the Director of Finance at AlphaFlow, a real estate asset management platform (November 2018 to April 2021). From July 2017 to November 2018, Hunter was the Senior Controller at Karbone Inc., a leading renewable energy brokerage. From January 2017 to July 2017, Hunter was the assistant controller at ACT Commodities. Hunter began his career at the public accounting firm Grant Thornton in their New York office, where he focused on hedge funds, private equity and fund of funds.

Hunter received his Bachelors in Accounting from Bentley University, and a Masters in Taxation from Baruch College. Hunter is a licensed CPA in the State of New York, is a member of the AICPA, and holds the Series 7, 63, 24 and 27 certifications from FINRA. He has also passed the CISA and CRISC exams administered by ISACA.

**Joseph Mathews, Chief Technology Officer**

Joe Mathews is Chief Technology Officer at StartEngine, and has been leading Engineering and Product teams. Joe started his engineering career with NIIT Technologies, followed by Microsoft Inc, after which he worked for a number of startups, including co-founding one. In May 2017, Joe worked as Director of Platform Engineering at Science37, and since July of 2018, he's been enjoying his work at StartEngine.

**COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS**

*The following discussion and analysis of compensation arrangements should be read with the compensation tables and related disclosures set forth below. This discussion contains forward looking statements that are based on our current plans and expectations regarding future compensation programs. The actual compensation programs that we adopt may differ materially from the programs summarized in this discussion.*

This section describes the material elements of the compensation awarded to, earned by, or paid to our Chief Executive Officer, Howard Marks, and our two most highly compensated executive officers (other than our Chief Executive Officer), Johanna Cronin, Chief

Marketing Officer, Joshua Amster, Chief Revenue Officer, and Hunter Strassman, Chief Financial Officer, for our fiscal year ended December 31, 2025.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  |  |  | **Nonqualified** |  |  |
|  |  |  |  |  |  | **Nonequity** | **deferred** |  |  |
| **Name and** |  |  |  | **Stock** | **Option** | **incentive plan** | **compensation** | **All other** |  |
| **principal** |  | **Salary** | **Bonus** | **awards** | **awards** | **compensation** | **earnings** | **compensation** | **Total** |
| **position** |  | **($)** | **($)(1)** | **($)** | **($)(1)(2)(3)** | **($)** | **($)** | **($)** | **($)** |
| Howard Marks, Chief Executive Officer | 2025.0 | $745000 | $1075000 | $— | $294075 | $— | $— | $— | $2114075 |
|  | 2024.0 | $745000 | $745000 | $— | $1288200 | $— | $— | $— | $2778200 |
| Johanna Cronin, Chief Marketing Officer | 2025.0 | $400000 | $730000 | $— | $464850 | $— | $— | $— | $1594850 |
|  | 2024.0 | $300000 | $400000 | $— | $644100 | $— | $— | $— | $1294100 |
| Hunter Strassman, Chief Financial Officer | 2025.0 | $300000 | $630000 | $— | $464850 | $— | $— | $— | $1394850 |
|  | 2024.0 | $300000 | $350000 | $— | $644100 | $— | $— | $— | $1294100 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Options, if any, have
 been granted for fiscal year 2026 for the 2025 fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Amounts reflect the aggregate grant
 date fair value of the options granted in 2025 and 2024, computed in accordance with Financial
 Accounting Standards Board ASC Topic 718 (ASC 718). This amount does not reflect the actual
 economic value realized by the officer.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Options are subject to vesting with
 25% vesting one year after date of grant and then 1/48 per month thereafter.

***Principal Elements of Compensation***

The compensation of the Company's executive officers comprises of the following major elements: (a) base salary; (b) an annual, discretionary cash bonus; and (c) long-term equity incentives, consisting of stock options, restricted stock awards, performance compensation awards and/or other applicable awards granted under the Company's equity incentive plan (the "Equity Incentive Plan") and any other equity plan that may be approved by the Board from time to time. These principal elements of compensation are described below.

*Base Salaries*

Base salary is provided as a fixed source of compensation for our executive officers. Adjustments to base salaries will be reviewed annually and as warranted throughout the year to reflect promotions or other changes in the scope of breadth of an executive officer's role or responsibilities, as well as to maintain market competitiveness.

*Annual Bonuses*

Annual bonuses may be awarded based on qualitative and quantitative performance standards and will reward performance of our executive officers individually. The determination of an executive officer's performance may vary from year to year depending on economic conditions and conditions in the cannabis industry and may be based on measures such as stock price performance, the meeting of financial targets against budget, the meeting of acquisition objectives and balance sheet performance.

*Equity Incentive Plan*

The Equity Incentive Plan provides continual motivation for our officers, employees, consultants and directors to achieve our business and financial objectives and align their interests with the long-term interests of our stockholders. The purpose of our Equity Incentive Plan is to promote greater alignment of interests between employees and stockholders, and to support the achievement of our longer-term performance objectives, while providing a long term retention element.

*2025 Equity Incentive Plan*

The 2025 Equity Incentive Plan (the "2025 Plan") was adopted by the Board April 15, 2025. The 2025 Plan provides for the grant of awards to eligible employees, directors, consultants, independent contractors, and advisors in the form of Stock Options, Stock Appreciation Rights ("SARs"), Stock Awards, Restricted Stock and Stock Units, and stock or cash-based bonuses, (each, an "award" and collectively, "awards"). The number of shares authorized for issuance under the 2025 Plan is 80,000,000.

The Amended and Restated 2015 Equity Incentive Plan is administered by our Board of Directors, or a committee appointed by the Board of Directors, which determines recipients and the number of shares subject to the awards, the exercise price and the vesting schedule. The term of stock options granted under the 2025 Plan cannot exceed ten years. As of December 31, 2025, the Plan had 30,375,940 shares of Common Stock reserved for issuance.

*Amended and Restated 2015 Equity Incentive Plan*

In May 2015, the Company established the 2015 Equity Incentive Plan which was approved by the Company's Board and by stockholders in June 2015. The 2015 Equity Incentive Plan authorized the issuance of 600,000,000 shares of common stock. In December 2015, the 2015 Plan was amended to increase the number of shares authorized for issuance under the Plan from 20,000,000 to 40,600,000, further amended in September 2020 to increase the number of shares from 40,600,000 to 50,600,000, and then further amended in July 2021 to increase the number of shares under the plan on a post- split basis to 151,800,000 shares. The Company amended and restated the Plan in 2023 to increase the number of shares of Common Stock reserved for issuance by 80,000,000. As of March 18, 2023, there are 231,800,000 shares available under the plan. The Amended and Restated 2015 Equity Incentive Plan permits us to provide equity-based compensation in the form of stock options, restricted stock units, unrestricted stock and other stock bonus awards and performance compensation awards.

The Amended and Restated 2015 Equity Incentive Plan is administered by our Board of Directors, or a committee appointed by the Board of Directors, which determines recipients and the number of shares subject to the awards, the exercise price and the vesting schedule. The term of stock options granted under the Amended and Restated 2015 Equity Incentive Plan cannot exceed ten years. As of December 31, 2025, the Plan had 30,375,940 shares of Common Stock reserved for issuance.

***Employment Agreements with Key Executives***

We entered into an employment agreement Mr. Marks, our CEO, with an effective date of January 1, 2024. The agreement is for two years, and will automatically renew for an additional one year period, unless either party gives notice more than sixty days prior to the initial term date of the agreement or each renewal period. The agreement provides that Mr. Marks' base salary will be $745,000. Mr. Marks is eligible to participate in all employee bonus plans of Company, if any. Mr. Marks is also entitled receive bonuses for 2025 fiscal year of 10% of his salary if the Company achieves positive EBITDA under $5 million, 50% of his base salary until $10M EBITDA and 100% of his salary if EBITDA is $10M. In 2025, Mr. Marks received 750,000 stock options exercisable at $1.38 per share and vesting over four (4) years. At this time, no options have been granted in 2026.

***Compensation and Insider Participation***

During 2025, the Company did not have a compensation committee or any other committee performing equivalent functions of a compensation committee. Howard Marks, our Chief Executive Officer, in his capacity as a director, participated in deliberations of the Board concerning executive officer compensation and was employed by the Company.

***Director Compensation***

There is currently no agreement or arrangement to pay any of our directors for their services as directors.

***Outstanding Equity Awards at Fiscal Year-End***

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Option awards** | **Option awards** | **Option awards** | **Option awards** | **Option awards** | **Option awards** | **Stock awards** | **Stock awards** | **Stock awards** | **Stock awards** | **Stock awards** |
| <br>**Name** | <br>**Grant** <br>**date** | <br>**Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options - (#)**<br>**exercisable** | <br>**Number of**<br>**securities**<br>**underlying**<br>**unexercised**<br>**options - (#)**<br>**unexercisable** | <br>**Equity incentive**<br>**plan awards:**<br>**number**<br>**of securities**<br>**underlying**<br>**unexercised**<br>**unearned**<br>**options**<br>**(#)** | <br>**Option**<br>**exercise**<br>**price**<br>**($)** | <br>**Option**<br>**expiration**<br>**date** | <br>**Number**<br>**of shares**<br>**or units**<br>**of stock**<br>**that have**<br>**not vested**<br>**(#)** | <br>**Market**<br>**value of**<br>**shares or**<br>**units of**<br>**stock**<br>**that have**<br>**not**<br>**vested**<br>**($)** | **Equity**<br>**incentive**<br>**plan awards:**<br>**number of**<br>**unearned**<br>**shares, units or**<br>**other rights that**<br>**have not**<br>**vested**<br>**(#)** | **Equity incentive**<br>**plan awards:**<br>**market** <br>**or payout**<br>**value of**<br>**unearned**<br>**shares, units or**<br>**other rights that**<br>**have not vested**<br>**($)** |
| Howard Marks,<br> Chief Executive Officer | 1/13/2018 | 6000000 |  |  | 0.013 | 1/13/2028 |  |  |  |  |
|  | 12/16/2020 | 6000000 |  |  | 0.217 | 12/16/2030 |  |  |  |  |
|  | 1/1/2022 | 6000000 |  |  | 0.675 | 1/1/2032 |  |  |  |  |
|  | 6/14/2024 | 784722 |  | 1215278 | 1.380 | 6/14/2034 |  |  |  |  |
|  | 6/13/2025 |  |  | 750000 | 1.380 | 6/13/2030 |  |  |  |  |
| Johanna Cronin, <br> Chief Marketing Officer | 6/15/2015 |  |  |  | 0.004 | 6/15/2025 |  |  |  |  |
|  | 2/7/2017 |  |  |  | 0.005 | 6/15/2025 |  |  |  |  |
|  | 1/13/2018 |  |  |  | 0.013 | 2/7/2027 |  |  |  |  |
|  | 1/18/2018 |  |  |  | 0.013 | 1/13/2028 |  |  |  |  |
|  | 4/23/2019 | 3000000 |  |  | 0.125 | 1/18/2028 |  |  |  |  |
|  | 5/15/2019 | 1500000 |  |  | 0.125 | 4/23/2029 |  |  |  |  |
|  | 1/2/2020 | 3000000 |  |  | 0.125 | 5/15/2029 |  |  |  |  |
|  | 12/16/2020 | 1500000 |  |  | 0.217 | 1/2/2030 |  |  |  |  |
|  | 1/1/2022 | 800000 |  |  | 0.675 | 12/16/2030 |  |  |  |  |
|  | 4/18/2023 | 686111 |  | 313889 | 1.250 | 1/1/2032 |  |  |  |  |
|  | 6/14/2024 | 294271 |  | 455729 | 1.250 | 4/18/2033 |  |  |  |  |
|  | 6/13/2025 |  |  | 750000 | 1.250 | 6/13/2035 |  |  |  |  |
| Hunter Strassman, <br> Chief Financial Officer | 4/19/2021 | 581812 |  |  | 0.217 | 4/19/2031 |  |  |  |  |
|  | 1/1/2022 | 800000 |  |  | 0.675 | 1/1/2032 |  |  |  |  |
|  | 4/18/2023 | 686111 |  | 313889 | 1.250 | 4/18/2033 |  |  |  |  |
|  | 6/14/2024 | 294271 |  | 455729 | 1.250 | 6/14/2034 |  |  |  |  |
|  | 6/14/2025 |  |  | 750000 | 1.250 | 6/13/2035 |  |  |  |  |

---

***Long-Term Incentive Plans***

There are no arrangements or plans in which we provide pension, retirement or similar benefits.

***Compensation Committee***

We currently do not have a compensation committee of the Board of Directors. The Board of Directors as a whole determines executive compensation.

***Compensation of Directors***

For the years ended December 31, 2025 and 2024, no members of our board of directors received compensation in their capacity as directors.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN STOCKHOLDERS**

The following table sets out certain information with respect to the beneficial ownership of the voting securities of the Company, as of June 23, 2026 for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Each person who we know
 beneficially owns more than five percent of any class of our voting securities.

· Each of our director and
 director nominees.

· Each of our executive officers.

· All of our directors, director
 nominees and executive officers as a group.

We have determined beneficial ownership in accordance with the rules of the Commission. Except as indicated by the footnotes below, we believe, based on the information furnished to us, that the persons and entities named in the table below have sole voting and investment power with respect to all securities that they beneficially own, subject to applicable community property laws.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| <br>**Title of class** | <br>**Name and address**<br>**of beneficial owner** | **Amount**<br>**and**<br>**nature of**<br>**beneficial**<br>**ownership** | **Amount**<br>**and**<br>**nature of**<br>**beneficial**<br>**ownership acquirable** |  |<br><br>**Percent of**<br>**Class (2)** |
| Common Stock | Howard Marks (1)(4) | 178523008 | 12000000 | (5) | 23.54% |
|  |  |  | 19077778 | (6) | 26.55%(3) |
| Common Stock | The Ronald David Miller Trust U/A 08/04/2020 (Ron Miller) (1) | 77267674 | 6000000 | (5) | 7.36% |
|  |  |  | 3000000 | (6) | 11.75%(3) |
| Common Stock | SE Agoura Investment LLC (7) | 2090777 | 182966180 | (5) | 0.41% |
|  |  |  |  |  | 19.66%(3) |
| Common Stock | The Lee Miller Trust UA 09/05/2020 (Lee Miller) (8) | 74625228 | 6000000 | (5) | 7.36% |
|  |  |  | 3000000 | (6) | 11.75%(3) |
| Common Stock | All executive officers and directors as a group (7 members including Howard Marks and Ron Miller)(1) | 202247657 | 18000000 | (5) | 36.20% |
|  |  |  | 19574997 | (7) | 30.13% |
| Preferred Stock | Howard Marks (4) | 12000000 |  |  | 3.00% |
| Preferred Stock | The Ronald David Miller Trust U/A 08/04/2020 (Ron Miller)(1) | 6000000 |  |  | 1.50% |
| Preferred Stock | SE Agoura Investment LLC (7) | 182966180 |  |  | 45.75% |
| Preferred Stock | The Lee Miller Trust UA 09/05/2020 (Lee Miller) | 6000000 |  |  | 1.50% |

---

&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise indicated, the address for each beneficial owner is c/o StartEngine Inc.,
4100 W Alameda Ave., Suite 300, Burbank, California 91505.

&nbsp;&nbsp;&nbsp;&nbsp;2. Based
 on 702,861,520 shares of Common Stock, 399,893,680 shares of Preferred Stock outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;3. 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.

&nbsp;&nbsp;&nbsp;&nbsp;4. These
 shares are held by Howard E. Marks Living Trust U/A Dated 12/21/2001 (Howard Marks) and does
 not include the 999,360 shares held by the Marks Irrevocable Trust for the benefit of Mr. Marks'
 family.

&nbsp;&nbsp;&nbsp;&nbsp;5. Shares
 acquirable through conversion of Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;6. Shares
 acquirable through the exercise of stock options. The options were granted under the 2015
 Equity Incentive Plan.

&nbsp;&nbsp;&nbsp;&nbsp;7. SE
 Agoura Investment LLC is beneficially owned by Aubrey Chernick. The address for SE Agoura
 Investment LLC is 333 South Grand Avenue, Suite 1470, Los Angeles, CA 90071.

&nbsp;&nbsp;&nbsp;&nbsp;8. 57,269,392
 shares held in Lee Miller Trust, 20,000,000 shares held in trust in which Lee Miller is the
 trustee.

**INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

The Company retained American Incline LLC ("American Incline") for consulting services in 2025. Ronald Miller, one of our directors, is the sole owner of American Incline. The Company paid $119,829 to American Incline in 2025. In 2026, the Company began paying a monthly fee of $15,000 for consulting services.

The Company is currently owed $180,610 from StartEngine Collectibles LLC in relation to the fees associated with initiating and selling collectible assets since the inception of the fund. Additionally, the Company is owed $28,750 from StartEngine Loans, LLC in relation to legal fees for creating the entity.

The Company offers accredited investors the opportunity to purchase membership interests in investment vehicles known as "SE Funds", which are Series LLCs of StartEngine Private LLC which hold single portfolio companies, and StartEngine Private Funds LLC which hold multiple portfolio companies, through its StartEngine Private product offering. These SE Funds invest in shares of venture capital-backed, late-stage private companies ("underlying securities"). The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC, both of which are affiliated entities under common control with the Company.

StartEngine Primary LLC, a wholly-owned, FINRA-member and SEC-registered broker-dealer subsidiary of the Company, markets offerings of SE Fund membership interests to accredited investors. These offerings are conducted pursuant to exemptions from registration under Section 4(a)(2) of the Securities Act of 1933 and Regulation D promulgated thereunder. The Company generates revenue from the sale of underlying securities to SE Funds and recognizes such amounts as revenue.

The Company records the acquisition cost of these securities as cost of revenue. Accordingly, transactions between the Company and the SE Funds, including the sale of securities to such affiliated investment vehicles, constitute related party transactions.

The Company does not have any independent directors under the corporate governance rules of The Nasdaq Stock Market LLC (Nasdaq).

**SECURITIES BEING OFFERED**

**General**

StartEngine is offering Common Stock to investors in this offering.

The following descriptions summarize important terms of our capital stock. This summary does not purport to be complete and is qualified in its entirety by the Seventh Amended and Restated Certificate of Incorporation and the Amended and Restated Bylaws, which have been filed as Exhibits to the Offering Statement of which this Offering Circular is a part. For a complete description of StartEngine's capital stock, you should refer to our Seventh Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws, Second Amended and Restated Investors' Rights Agreement, and applicable provisions of the Delaware General Corporation Law.

StartEngine's authorized capital stock consists of 1,500,000,000 shares of Common Stock, $0.00001 par value per share, and 519,000,000 shares of Preferred Stock, $0.00001 par value per share, of which 213,000,000 shares are designated as Series Seed Preferred Stock, 207,000,000 shares are designated as Series A Preferred Stock, and 99,000,000 shares that will be designated Series T Preferred Stock.

As of June 23, 2026, the outstanding shares of StartEngine included: 758,339,621 shares of Common Stock, 399,885,861 shares of Series Seed Preferred Stock, 185,440,880 shares of Series A Preferred Stock, and 9,642,080 shares of Series T Preferred Stock.

**Common Stock**

***Dividend Rights***

Holders of Common Stock are entitled to receive dividends, as may be declared from time to time by the board of directors out of legally available funds, unless a dividend is paid with respect to all outstanding shares of Preferred Stock in an amount equal or greater than the amount those holders would receive on an as-converted basis to Common Stock. We have never declared or paid cash dividends on any of our capital stock and currently do not anticipate paying any cash dividends after this offering or in the foreseeable future.

***Voting Rights***

Each holder of Common Stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election of directors, but excluding matters that relate solely to the terms of a series of Preferred Stock.

***Right to Receive Liquidation Distributions***

In the event of our liquidation, dissolution, or winding up, after the payment of all of our debts and other liabilities and the satisfaction of the liquidation preferences granted to the holders of Preferred Stock, the holders of Common Stock and the holders of Preferred Stock (calculated on an as-converted to Common Stock basis) will be entitled to share ratably in the net assets legally available for distribution to stockholders.

***Additional Rights and Preferences***

Holders of Common Stock have no preemptive, conversion, anti-dilution or other rights, and there are no redemptive or sinking fund provisions applicable to Common Stock.

***Forum Selection Provision***

Section 6 of our Common Stock subscription agreement (which appears as an exhibit to the offering statement of which this Offering Circular forms a part) provides that any court of competent jurisdiction in the State of New York is the exclusive forum for all actions or proceedings relating to the subscription agreement. However, this exclusive forum provision does not apply to actions arising under the federal securities laws.

**Jury Trial Waiver**

Section 6 to our Common Stock subscription agreement, which is included as an exhibit to the offering statement of which this Offering Circular forms a part) provides that subscribers waive the right to a jury trial of any claim they may have against us arising out of or relating to the subscription agreement, including any claim under federal securities laws. If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable given the facts and circumstances of that case in accordance with applicable case law.

**Preferred Stock**

We have authorized the issuance of three series of Preferred Stock, designated Series T Preferred Stock, Series Seed Preferred Stock and Series A Preferred Stock. The Series T Preferred Stock, Series Seed Preferred Stock and Series A Preferred Stock enjoy substantially similar rights, preferences, and privileges.

***Dividend Rights***

Holders of Preferred Stock are entitled to receive dividends, as may be declared from time to time by the board of directors out of legally available funds. Such dividends are non-cumulative and no right shall accrue to holders of Preferred Stock for undeclared dividends. Unpaid and undeclared dividends shall not bear or accrue interest. Holders of Preferred Stock are entitled to at least their share proportionally (calculated on an as-converted to Common Stock basis) in any dividends paid to the holders of Common Stock. We have never declared or paid cash dividends on any of our capital stock and currently do not anticipate paying any cash dividends after this offering or in the foreseeable future.

***Voting Rights***

Each holder of Preferred Stock is entitled to one vote for each share of Common Stock issuable upon conversion of the Preferred Stock at the then-effective conversion rate. Fractional votes are not permitted and if the conversion results in a fractional share, it will be rounded to the closest whole number. Holders of Preferred Stock are entitled to vote on all matters submitted to a vote of the stockholders, including the election of directors, as a single class with the holders of Common Stock. Specific matters submitted to a vote of the stockholders require the approval of a majority of the holders of Preferred Stock voting as if their shares had been converted into Common Stock. These matters include any vote to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· enter into a transaction
 or series of related transactions involving a merger or consolidation, or sale, conveyance or disposal of all or substantially of
 the assets, unless the majority of the voting power in the surviving entity is substantially similar to that before the transaction
 with substantially the same rights, preferences, privileges and restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· modify the rights preferences,
 privileges and restrictions so as to adversely affect the Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· increase the total number
 of authorized shares of Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· authorize or issue, or
 obligate to issue, any other equity security having a preferences over, or on a parity with the Preferred Stock with respect to dividends,
 liquidation, redemption or voting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· redeem, purchase or otherwise
 acquire any shares of Common Stock or Preferred Stock except as indicated, including the repurchase of shares from employees, directors
 and officers, and existing contractual rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· declare or pay any dividend
 on the Common Stock, other than a dividend payable solely in Shares of Common Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· amend the Certificate of
 Incorporation or Bylaws.

***Right to Receive Liquidation Distributions***

In the event of our liquidation, dissolution, or winding up, holders of Series A Preferred Stock and Series T Preferred Stock are entitled to liquidation preference superior Series Seed Preferred Stock. Collectively, holders of Preferred Stock are entitled to a liquidation preference superior to holders of Common Stock. Liquidation distributions will be first paid to holders of Series A Preferred Stock and Series T Preferred Stock, who will be paid ratably with each other in proportion to their liquidation preference. Holders of Series T Preferred Stock will receive an amount for each share equal to $0.14667 per share of Series T Preferred Stock, adjusted for any stock splits (other than the stock split in 2020), reverse stock splits, stock dividends, and similar recapitalization events (each a "Recapitalization Event"), plus all declared and unpaid dividends and holders of Series A Preferred Stock will receive an amount for each share equal to $0.02864 per share of Series A Preferred Stock, adjusted for any Recapitalization Event, plus all declared and unpaid dividends. The distributions will then go to holders of Series Seed Preferred Stock, who will receive an amount for each share equal to $0.00833 per share of Series Seed Preferred Stock, adjusted for any Recapitalization Event, plus all declared and unpaid dividends. Finally, distributions will be payable ratably to holders of Common Stock and Preferred Stock on an as-converted basis. If, upon such liquidation, dissolution or winding up, the assets and funds that are distributable to the holders of Series A Preferred Stock and Series Seed Preferred Stock are insufficient to permit the payment to such holders of the full amount of their respective liquidation preference, then all of such assets and funds will be distributed ratably first among the holders of the Series A Preferred Stock in proportion to the full preferential amounts to which they would otherwise be entitled to receive, and then any remaining amounts to Series Seed Preferred Stock in proportion to the full preferential amounts which they would otherwise be entitled to receive.

***Conversion Rights***

Preferred Stock is convertible into Common Stock voluntarily and automatically. Each share of Preferred Stock is convertible at the option of the holder of the share at any time prior to the closing of a liquidation event. Each share of Preferred Stock is currently convertible into one share of Common Stock, but such conversion rate may be adjusted pursuant to the anti-dilution rights of the Preferred Stock set forth in Section 3(d) of the Sixth Amended and Restated Certificate of Incorporation.

Additionally, each share of the Preferred Stock will automatically convert into Common Stock (i) immediately prior to the closing of a firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act where the per share offering price is at least the minimum share price (as adjusted for Recapitalization Events) and our aggregate proceeds are greater than or equal to $15,000,000 or (ii) by a vote by a majority of holders of Preferred Stocks. The "minimum share price" is $0.14317 for shares of Series Seed Preferred Stock and shares of Series A Preferred Stock and $0.14667 for shares of Series T Preferred Stock. Preferred Stock converts into the same number of shares of Common Stock regardless of whether converted automatically or voluntarily.

***Drag Along Rights***

Holders of Preferred Stock are subject to a drag-along provision, pursuant to which each holder of Preferred Stock agrees that, in the event that the Company's Board, the holders of a majority of the Company's voting stock vote, and the holders of a majority of Common Stock issued or issuable upon conversion of Preferred Shares vote in favor of a sale of the Company, then such holder of Preferred Stock and Howard E. Marks Living Trust U/A Dated 12/21/2001 (Howard Marks), Marks Irrevocable Trust, and Miller Family Trust 1/2/96 (Ron Miller) and The Lee Miller Trust UA 09/05/2020 (Lee Miller) (each a "Key Holder") will vote in favor of the transaction if such vote is solicited, refrain from exercising dissenters' rights with respect to such sale of the Company, and deliver any documentation or take other actions reasonably required. The drag-along provision is set forth in the Amended and Restated Investors' Rights Agreements for holders of Series A Preferred Stock and Series Seed Preferred Stock and in their respective subscription agreements for holders of Series T Preferred Stock.

***Right of First Refusal, Participation and Tag Along Rights***

Under the Amended and Restated Investors' Rights Agreement (for holders of Series A Preferred Stock and Series Seed Preferred Stock) and under the Subscription Agreement (for holders of Series T Preferred Stock), holders of at least 300,000 shares of Preferred Stock (as adjusted for recapitalization events) at the time of the event are entitled to a right of first refusal if we propose to issue new shares of capital stock (subject to certain exceptions). Holders of Common Stock and holders of fewer than 300,000 shares of Preferred Stock do not enjoy such rights. All holders of Series A Preferred Stock and Series Seed Preferred Stock are entitled to tag along rights if any Key Holder proposes to sell any of their respective holdings. All holders of Preferred Stock are entitled to participation rights in certain future offerings.

**ONGOING REPORTING AND SUPPLEMENTS TO THIS OFFERING CIRCULAR**

We are currently required to file and make available, through a link to the SEC's website, electronic copies of the materials we file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, the Section 16 reports filed by our executive officers, directors and 10% stockholders and amendments to those reports. Our website address is http://www.startengine.com. Information contained on the website does not constitute part of our Offering Circular. We have included our website address in this Offering Circular solely as an inactive textual reference.

Our SEC filings will also be available to the public from commercial document retrieval services and at the website maintained by the SEC at http://www.sec.gov.

If this offering extends beyond 12 months from qualification, at least every 12 months, we will file a post-qualification amendment to the Offering Statement of which this Offering Circular forms a part, to include the Company's recent financial statements.

**STARTENGINE INC. (F/K/A STARTENGINE CROWDFUNDING, INC.)**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **March 31,**<br>**2026** | **December 31,**<br>**2025** |
| Assets |  |  |
| Current assets: |  |  |
| Cash | $30585016 | $28387261 |
| Marketable securities | 1856 | 1856 |
| Accounts receivable, net of allowance | 1847100 | 1108093 |
| Other current assets | 1248404 | 929326 |
| Total current assets | 33682376 | 30426536 |
| Property and equipment, net | 142315 | 125213 |
| Investments - warrants | 54021 | 54021 |
| Investments - Stock | 8921144 | 9142997 |
| Investments - Private | 14140085 | 13990161 |
| Investments - Collectibles | 3953042 | 2362083 |
| Due from related party | 196890 | 233890 |
| Intangible assets, net | 26760638 | 15035049 |
| Other assets | 33847 | 33847 |
| Total assets | $87884358 | $71403797 |
| Liabilities and Stockholders' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $1497191 | $990993 |
| Accrued liabilities | 10355379 | 10196824 |
| Deferred revenue | 3757788 | 3569450 |
| Total current liabilities | 15610358 | 14757267 |
| Total liabilities | 15610358 | 14757267 |
| Commitments and contingencies (Note 6) |  |  |
| Stockholders' equity: |  |  |
| Series A Preferred Stock, par value $0.00001, 207,000,000 shares authorized, 185,440,880 and 185,440,880 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectfully, liquidation preference of $5,310,409 and $5,310,409 at March 31, 2026 and December 31, 2025, respectively. | 5286667 | 5286667 |
| Series T Preferred Stock, par value $0.00001, 99,000,000 shares authorized, 9,642,080 and 9,642,080 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively, liquidation preference of $1,414,486 and $1,414,486 at March 31, 2026 and December 31, 2025, respectively. | 983634 | 983634 |
| Series Seed Preferred Stock, par value $0.00001, 213,000,000 shares authorized, 204,772,940 and 204,810,720 and shares issued and outstanding at March 31, 2026 and December 31, 2025, respectfully, liquidation preference of $1,707,675 and $1,707,990 at March 31, 2026 and December 31, 2025, respectively. | 1706441 | 1706441 |
| Common stock, par value $0.00001, 1,580,000,000 shares authorized, 758,266,544 and 702,861,520 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively. | 7582 | 7457 |
| Additional paid-in capital | 126239067 | 108376818 |
| Noncontrolling interest | (13251) | (13251) |
| Accumulated deficit | (61936140) | (59701236) |
| Total stockholders' equity | 72274000 | 56646530 |
| Total liabilities and stockholders' equity | $87884358 | $71403797 |

---

See accompanying notes to unaudited condensed consolidated financial statements

**STARTENGINE INC. (F/K/A STARTENGINE CROWDFUNDING, INC.)**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Revenues | $25049691 | $30364357 |
| Cost of revenues | 18190810 | 20299424 |
| Gross profit | 6858881 | 10064933 |
| Operating expenses: |  |  |
| General and administrative | 4019366 | 3328479 |
| Sales and marketing | 3706012 | 3337696 |
| Research and development | 1418463 | 1399602 |
| Impairment of shares received for fees | 442030 | 298945 |
| Total operating expenses | 9585871 | 8364722 |
| Operating income (loss) | (2726990) | 1700211 |
| Other income (expense) |  |  |
| Other income (expense), net | 513820 | 25580 |
| Total other income (expense), net | 513820 | 25580 |
| Income (loss) before provision for income taxes | (2213170) | 1725791 |
| Taxes - Other | 21734 | 8340 |
| Net income (loss) | $(2234904) | $1717451 |
| Weighted average earnings per share - basic | $(0.00) | $0.00 |
| Weighted average shares outstanding - basic | 731535873 | 699704280 |
| Weighted average earnings per share - diluted | $(0.00) | $0.00 |
| Weighted average shares outstanding - diluted | 731535873 | 1220554430 |

---

See accompanying notes to unaudited condensed consolidated financial statements

**STARTENGINE INC. (F/K/A STARTENGINE CROWDFUNDING, INC.)**

**CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

**FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025**

**(Unaudited)**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series T Preferred Stock** | **Series T Preferred Stock** | **Series Seed Preferred Stock** | **Series Seed Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Noncontrolling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2024** | 185440880 | $5286667 | 9642080 | $983634 | 204810720 | $1706756 | 702861520 | $7028 | $95543998 | $(13251) | $(61174088) | $42340744 |
| Sale of Common Stock |  |  |  |  |  |  | 1922194 | 19 | 2125007 |  |  | 2125026 |
| Offering Costs |  |  |  |  |  |  |  |  | (1444755) |  |  | (1444755) |
| Stock compensation expense |  |  |  |  |  |  |  |  | 2651080 |  |  | 2651080 |
| Net income |  |  |  |  |  |  |  |  |  |  | 1717451 | 1717451 |
| **Balance at March 31, 2025** | 185440880 | 5286667 | 9642080 | 983634 | 204810720 | 1706756 | 704783714 | 7047 | 98875330 | (13251) | (59456637) | 47389546 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series T Preferred Stock** | **Series T Preferred Stock** | **Series Seed Preferred Stock** | **Series Seed Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Noncontrolling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2025** | 185440880 | $5286667 | 9642080 | $983634 | 204772940 | $1706441 | 745825392 | $7457 | $108376818 | $(13251) | $(59701236) | $56646530 |
| Sale of common Stock |  |  |  |  |  |  | 3653075 | 37 | 5117792 |  |  | 5117829 |
| Vinovest acquisition |  |  |  |  |  |  | 8750000 | 88 | 13999912 |  |  | 14000000 |
| Exercise of stock options |  |  |  |  |  |  | 38077 |  | 8250 |  |  | 8250 |
| Offering Costs |  |  |  |  |  |  |  |  | (4101971) |  |  | (4101971) |
| Stock compensation expense |  |  |  |  |  |  |  |  | 2838266 |  |  | 2838266 |
| Net loss |  |  |  |  |  |  |  |  |  |  | (2234904) | (2234904) |
| **Balance at March 31, 2026** | 185440880 | 5286667 | 9642080 | 983634 | 204772940 | 1706441 | 758266544 | 7582 | 126239067 | (13251) | (61936140) | 72274000 |

---

See accompanying notes to unaudited condensed consolidated financial statements

**STARTENGINE INC. (F/K/A STARTENGINE CROWDFUNDING, INC.)**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** |
|  | **2026** | **2025** |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $(2234904) | $1717451 |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;Depreciation | 1078 | 4806 |
| &nbsp;&nbsp;Amortization | 928580 | 857143 |
| &nbsp;&nbsp;Bad debt expense | 24100 | 100942 |
| &nbsp;&nbsp;Fair value of investments - other received for fees | (220177) | (609121) |
| &nbsp;&nbsp;Impairment of investments - other received for fees | 442030 | 298945 |
| &nbsp;&nbsp;Stock-based compensation | 2838266 | 2651080 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | (714428) | 690280 |
| &nbsp;&nbsp;Other current assets | 213902 | 528004 |
| &nbsp;&nbsp;StartEngine Private stock purchases | (17668150) | (16794014) |
| &nbsp;&nbsp;Proceeds from sale of StartEngine Private stock | 17518226 | 17130205 |
| &nbsp;&nbsp;Purchase of investments- collectibles | (462101) |  |
| &nbsp;&nbsp;Due from related parties | 37000 |  |
| &nbsp;&nbsp;Accounts payable | (178218) | 240005 |
| &nbsp;&nbsp;Accrued liabilities | (3065101) | (1260830) |
| &nbsp;&nbsp;Deferred revenue | 188338 | 329381 |
| Net cash provided by (used in) operating activities | (2351559) | 5884277 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;Cash proceeds from Vinovest | 3536944 |  |
| &nbsp;&nbsp;Purchase of property and equipment | (11738) | (3864) |
| &nbsp;&nbsp;Proceeds from sale of real estate |  | 1479310 |
| Net cash provided by investing activities | 3525206 | 1475446 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;Proceeds from sale of common stock | 5117829 | 2125026 |
| &nbsp;&nbsp;Offering costs | (4101971) | (1444755) |
| &nbsp;&nbsp;Proceeds from exercise of employee stock options | 8250 |  |
| Net cash provided by financing activities | 1024108 | 680271 |
| Increase (decrease) in cash and restricted cash | 2197755 | 8039994 |
| Cash and restricted cash, beginning of period | 28387261 | 10842297 |
| Cash and restricted cash, end of period | $30585016 | $18882291 |
| Supplemental disclosures of cash flow information: |  |  |
| Cash paid for income taxes | $21734 | $8340 |
| Non Cash Investing & Financing Activities |  |  |
| &nbsp;&nbsp;Purchase of Vinovest, Inc., net of cash received | $14000000 | $— |

---

See accompanying notes to unaudited condensed consolidated financial statements

**STARTENGINE INC. (F/K/A STARTENGINE CROWDFUNDING, INC.)**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**(Unaudited)**

**NOTE 1 – NATURE OF OPERATIONS**

StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.) (the "Company") was formed on March 19, 2014 in the State of Delaware. The Company was originally incorporated as StartEngine Crowdsourcing, Inc. and changed to the current name on May 8, 2014. The Company's headquarters are located in Burbank, California.

The Company aims to revolutionize the startup financing model by helping both accredited and non-accredited investors invest in private companies on a public platform. StartEngine Crowdfunding Inc. has wholly-owned subsidiaries, StartEngine Capital LLC, StartEngine Secure LLC, StartEngine Assets LLC, StartEngine Primary LLC, StartEngine Private Manager LLC, StartEngine Inc., S.A. StartEngine and StartEngine Adviser LLC. StartEngine Capital LLC is a funding portal registered with the US Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA), StartEngine Secure LLC is a transfer agent registered with the SEC. StartEngine Assets LLC was formed in 2020 to buy, hold and manage assets in various asset classes such as real estate, automobiles, luxury goods and royalty-producing intangible assets. StartEngine Primary LLC was formed in October 2017 and received approval to operate as a registered broker-dealer in July 2019. On April 16, 2020, StartEngine Primary LLC received approval to operate as an alternative trading system. Since 2023, the Company has been providing accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC, an exempt reporting adviser. The Company's mission is to empower thousands of companies to raise capital and create significant amounts of jobs over the coming years. On March 17, 2026, the Company acquired Vinovest, Inc. a premium wine and whisky investment platform, and was paid for by issuing 8,750,000 shares of StartEngine common stock at $1.60 per share valuation for a total value of $14 million.

*Management Plans*

The Company's revenue producing activities commenced in 2015 with the approved start of Title IV of the JOBS Act, which created new rules for Regulation A, and increased since then with the start of Regulation Crowdfunding under Title III of the JOBS Act.

The Company has unrestricted cash and cash equivalents of approximately $26.8 million, which its management believes will cover operating expenses for the foreseeable future. The Company's management believes that there is no substantial doubt about the Company's ability to continue as a going concern at this time as the Company has experienced a large cash inflow, primarily from StartEngine Private revenue.

On May 6, 2024, StartEngine Crowdfunding Inc. split its designated "Common Stock" and "Preferred Stock" on a 20 for 1 basis. The total number of shares of Common Stock that the Company is authorized to issue was increased to 1,500,000,000 shares after the split. The total number of shares of Preferred Stock that the Company is authorized to issue was increased to 519,000,000 after the split. Accordingly, all share and per share amounts for all periods presented in the condensed consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split.

The Company's 2025 Equity Incentive Plan became effective on June 4, 2025, authorizing up to 80,000,000 additional shares of Common Stock for issuance.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the condensed consolidated financial statements and accompanying notes included in the Annual Report on Form 10-K for the year ended December 31, 2025. The condensed consolidated balance sheet as of December 31, 2025 included herein was derived from the audited financial statements as of that date but does not include all disclosures including notes required by GAAP. The condensed consolidated financial statements include the accounts of StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.), its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated. The accompanying condensed consolidated financial statements reflect all normal recurring adjustments that are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ending December 31, 2026.

*Principles of Consolidation*

The condensed consolidated financial statements include the accounts of StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.)'s wholly-owned subsidiaries, StartEngine Capital LLC, StartEngine Secure LLC, StartEngine Primary LLC, StartEngine Assets LLC StartEngine Adviser LLC, StartEngine Private Manager LLC and Vinovest Inc. All significant intercompany balances and transactions have been eliminated in consolidation.

*Use of Estimates*

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amount of expenses during the reporting periods. Significant estimates include the allocation of assets acquired, value of marketable securities, the value of stock and warrants received as compensation and collectability of accounts receivable. Actual results could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

*Cash and Restricted Cash*

Cash of $3,762,066 has been segregated in to special reserve bank accounts for the benefit of customers under rule 15c3-3 of the Securities and Exchange Act of 1934. The following table provides a reconciliation of cash and restricted cash reported within the statement of financial condition with the total of the same such amounts presented in the statement of cash flows:

---

| | |
|:---|:---|
| Cash and cash equivalents | $26822950 |
| Cash segregated under federal and other regulations | 3762066 |
|  | $30585016 |

---

*Investment Securities*

<u>Marketable Securities</u>

Our marketable securities consist of common stock equities that are tradable in an active market. Unrealized gains and losses on available-for-sale securities, net of applicable taxes, are reported as a component of other comprehensive income, net in the accompanying condensed consolidated statements of operations.

<u>Non-Marketable and Other Securities</u>

Non-marketable and other securities include investments in non-public equities. Our accounting for investments in non-marketable and other securities depends on several factors, including the level of ownership, power to control and the legal structure of the subsidiary making the investment. As further described below, we base our accounting for such securities on: (i) fair value accounting, (ii) equity method accounting, and (iii) cost method accounting.

*Investments – Warrant Assets*

In connection with negotiated platform fee agreements, we may obtain warrants giving us the right to acquire stock in companies undergoing Regulation A offerings. We hold these assets for prospective investment gains. We do not use them to hedge any economic risks, nor do we use other derivative instruments to hedge economic risks stemming from these warrants.

We account for warrants in certain private and public (or publicly traded under the provisions of Regulation A) client companies as derivatives when they contain net settlement terms and other qualifying criteria under ASC 815, Derivatives and Hedging. In general, the warrants entitle us to buy a specific number of shares of stock at a specific price within a specific time period. Certain warrants contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events. Our warrant agreements typically contain net share settlement provisions, which permit us to receive at exercise a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a "cashless" exercise). These warrants are recorded at fair value and are classified as Investments - warrants on our condensed consolidated balance sheet at the time they are obtained and remeasured each reporting period.

The grant date fair values of warrants received in connection with services performed are deemed to be revenue and recognized upon receipt.

Any changes in fair value from the grant date to fair value of warrants will be recognized as increases or decreases to investments on our condensed consolidated balance sheets and as a component of operating expenses on our condensed consolidated statements of operations.

In the event of an exercise for shares, the basis or value in the securities is reclassified from Investment - warrants to marketable securities or non-marketable securities, as described below, on the condensed consolidated balance sheet on the latter of the exercise date or corporate action date. The shares in public companies, or companies that trade over-the-counter as allowed by Regulation A, are classified as marketable securities (provided they do not have a significant restriction from sale). The shares in private companies without an active trading market are classified as non-marketable securities.

*Investments - Stock*

In connection with negotiated platform fee agreements, the Company obtains shares of stock in its customers. Our accounting for investment our customers stock depends on several factors, including the level of ownership, and power to control. We base our accounting for such securities on: (i) whether the issuer have made an offering in the current year, (ii) if so, the valuation of the stock in the offering, and (iii) if not, the Company will write down the stock value at a flat 33% rate. As the stock received from customers have no readily determinable fair values and generally represent small amounts of ownership in our customers, the Company accounts for this stock received using the cost method, plus adjustments for gross up, less write downs in accordance with ASC 321-10-35-2. During the three months ended March 31, 2026 and 2025, the Company received stock with a cost of $220,179 and $609,121 respectively, as payment for fees. During the three months ended March 31, 2026 and 2025, impairment expense related to shares received amounted to $442,030 and $298,945 respectively.

*Investments – Private*

The Company purchases shares of venture capital backed, late-stage private companies and records the purchases at cost. The cost of the underlying asset includes the purchase price, and acquisition expenses, which include all fees, costs and expenses incurred in connection with the evaluation, investigation, and acquisition of the underlying securities. The Company purchases the private company shares either directly or through other special purpose vehicles and after a certain period of time sells its investment to an SE Fund. Each time the company sells shares to the SE Funds, it reduces its holdings by the cost basis of the sale.

Below is a breakdown of the StartEngine Private assets held by industry at the end of the reporting period, each of these investments are small minority stakes in the underlying companies.

---

| | | |
|:---|:---|:---|
| Industry | March 31, 2026 | December 31, 2025 |
| AI Chips | $545009 | $1689039 |
| Sales Technology | 332090 | 113200 |
| AI Software | 11120318 | 8797502 |
| Software Development | 20174 | 20174 |
| Medical Technology | 47830 | 134884 |
| Blockchain Technology | 298620 | 57200 |
| Rare Earth Materials | 375375 | 375375 |
| Advanced Materials | 77849 | 215180 |
| Banking | 356138 |  |
| AI Vehicles |  | 143187 |
| Defense Technology | 125998 | 298254 |
| Prediction Markets | 311728 | 843750 |
| Robotics | 441893 | 270509 |
| Space Technology | 87063 | 1031907 |
| Total | $14140085 | $13990161 |

---

*Fair Value of Financial Instruments*

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 as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

Level 1- Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2- Include other inputs that are directly or indirectly observable in the marketplace.

Level 3- Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2026. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. The following are level 1, 2 and 3 assets.

<u>Level 1</u>

Investments: Marketable securities are made up of mutual funds and shares of common stock that are valued based on quoted prices in active markets.

Non-Fungible Token ("NFT"): Blockchain based collectible images that are valued based on quoted prices in active markets.

<u>Level 2</u>

Investments - warrants (public portfolio): Fair value measurements of warrants of publicly traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable volatility assumptions based on comparable public company.

<u>Level 3</u>

Investments - warrants (private portfolio): Fair value measurements of warrants of private portfolio companies are priced based on a modified Black-Scholes option pricing model to estimate the asset value by using stated strike prices, warrant expiration dates modified to account for estimates to actual life relative to stated expiration, risk-free interest rates, and volatility assumptions based on comparable public companies. Option volatility assumptions used in the modified Black-Scholes model are based on public companies who operate in similar industries as companies in our private company portfolio. For these warrants, the fair value of the underlying stock is an unobservable input consistent with Investment - stocks noted above. Certain adjustments may be applied as determined appropriate by management for lack of liquidity.

Investments – stock: Fair value measurements of stocks of private portfolio companies are prices based on a combination of issuer activity and the price of new issuances. The Company, on an annual basis, will review any new offerings from issuers and compare the offering price of the stock in the new issuance compared to the original value of the stock held. The Company will mark the held stock to the new stock price and adjust the carrying value accordingly. If an issuer has not made an offering in the year in review, the company will apply a flat 33% write down to the stock carrying value as a means of estimating the volatility and illiquidity of a privately held stock.

The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value as of March 31, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities |  | 1856 |  | 1856 |
| Investment - warrants |  |  | 54021 | 54021 |
| Investment - stock | 50623 |  | 8870521 | 8921144 |
| Non-Fungible Token ("NFT") | 718 |  |  | 718 |
|  | $51341 | $1856 | $8924542 | $8977739 |

---

The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities |  | 1856 |  | 1856 |
| Investment - warrants |  |  | 54021 | 54021 |
| Investment - stock | 5895 |  | 9137102 | 9142997 |
| Non-Fungible Token ("NFT") | 718 |  |  | 718 |
|  | $6613 | $1856 | $9191123 | $9199592 |

---

The following table presents additional information about transfers in and out of Level 3 assets measured at fair value for the three months ended March 31, 2026 and 2025 as it relates to Investments – warrants and Investments – stock, respectively:

---

| | |
|:---|:---|
|  | Investments-<br>Warrants |
| Fair value at December 31, 2025 | $54021 |
| Receipt of warrants |  |
| Change in fair value of warrants |  |
| Fair value at March 31, 2026 | $54021 |

---

---

| | |
|:---|:---|
|  | Investments-<br>Stock |
| Fair value at December 31, 2025 | $9142997 |
| Receipt of stock | 220179 |
| Impairment of stock | (442032) |
| Fair value at March 31, 2026 | $8921144 |

---

The following range of variables were used in valuing Level 3 warrant assets during the three months ended March 31, 2026:

---

| | |
|:---|:---|
|  | 2026 |
| Expected life (years) | 0.17 -3.08 |
| Risk-free interest rate | 3.73% |
| Expected volatility | 75.0 - 160.0% |
| Annual dividend yield | 0% |
| Underlying share values | $0.43 - 2.50 |
| Strike Prices | $0.30 - $100.00 |

---

For Investments — Warrants, the primary and most significant unobservable input relates to the underlying share value of the issuers for which we receive warrants. In all cases, there were sales of the stock to the public through Regulation Crowdfunding, Regulation A, or a Regulation D funding mechanism, but such sales are often not to the level that an active market existed or exists. After the sales, such shares are often illiquid, and a change in valuation is often difficult to determine due to the lack of information available. Information regarding these unobservable inputs could correspondingly change the value of these assets.

For warrants, the Company also adjusts the expected life of certain warrants to account for potential liquidation events, as well as doubts regarding the ability for the issuer companies to continue as a going concern. The quantitative measure used is based upon Black-Scholes modeling. Significant judgment is required by Management in selecting unobservable inputs, and accordingly a change in the assumptions used for the valuation could cause the value to be significantly different. In general, increases in underlying share prices, expected life and volatility, increase the value of the warrants, whereas decreases would reduce the value.

For Investments – Stock, the primary and most significant unobservable input relates to the share value of the issuers. In all cases, there were sales of the stock to the public through Regulation Crowdfunding, Regulation A, or a Regulation D funding mechanism, but such sales are often not to the level that an active market existed or exists. After the sales, such shares are often illiquid, and a change in valuation is often difficult to determine due to the lack of information available. Information regarding these unobservable inputs could correspondingly change the value of these assets. The basis for writing down this stock is to evaluate if the issuer has performed a raise on the Company's platform within the last year. If the Company has, the stock value is updated to the current issuance price. If there has not been a raise, the Company writes down the value of the shares by 33%. This has been deemed reasonable as the shares of privately traded illiquid stocks are difficult to price, and the Company has determined through research that a markdown of this amount is reasonable due to assumed loss in value based on no new raises being hosted.

*Accounts Receivable*

Accounts receivables are recorded at the invoiced amount and are non-interest-bearing. Bad debt expense for three months ended March 31, 2026 and 2025 was $24,100 and $100,942, respectively. The Company had an allowance for credit losses at March 31, 2026 of $6,650 and no allowance at December 31, 2025.

As of March 31, 2026 the Company had accounts receivable over 90 days totaling $0.

*Investments – Collectibles*

The Company, through its subsidiary, purchases collectibles including art, wine, memorabilia, and other collectible assets, and are recorded at cost. The cost of the underlying asset includes the purchase price, including any deposits for the underlying asset and acquisition expenses, which include all fees, costs and expenses incurred in connection with the evaluation, discovery, investigation, development and acquisition of the underlying assets.

The Company treats the underlying assets as long-lived assets, and the underlying assets will be subject to an annual test for impairment and will not be depreciated or amortized. These long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.

The underlying assets are purchased by our subsidiary, StartEngine Assets, LLC, (the "Administrative Manager") and sold to our Series LLC subsidiary collectible funds for cash or a promissory note. The Series uses the proceeds of the offering to pay off the note. Acquisition expenses are typically paid for in advance by the Administrative Manager and are reimbursed by the Series from the proceeds of the offering in accordance with the offering circular. All such transactions are eliminated in consolidation.

The Company discontinued the offerings of Collectibles in Q3 2023 and is no longer offering purchases in these investments. The Company intends to sell its remaining held assets.

The below is a breakdown of the types of collectibles and their value held as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Period Ended March 31,** | **Period Ended December 31,** |
|  | **2026** | **2025** |
| Wine | $278360 | $278360 |
| Trading Cards | 466484 | 466484 |
| Artwork | 1322942 | 1322942 |
| Comic Books | 240451 | 240451 |
| NFT | 718 | 718 |
| Watches | 53128 | 53128 |
| Vinovest | 1590959 |  |
| Total collectibles | $3953042 | $2362083 |

---

*Noncontrolling Interest*

The Company presents third party minority interests in subsidiaries in accordance with ASC 810, Consolidation. Under that topic, such minority interests are presented on the Company's balance sheet within the equity section as noncontrolling interest.

*Equity Offering Costs*

The Company accounts for offering costs in accordance with ASC 340, Other Assets and Deferred Costs. Prior to the completion of an offering, offering costs will be capitalized as deferred offering costs on the balance sheet. The deferred offering costs will be charged to stockholders' equity upon the completion of an offering or to expense if the offering is not completed. Offering costs of $4,101,971 and $1,444,755 charged to stockholders' equity during the three months ended March 31, 2026 and 2025, respectively.

*Revenue Recognition*

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. ASC 606 contains a framework for analyzing potential revenue transactions by identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the Company satisfies a performance obligation.

The Company recognizes revenues from Regulation A and Regulation D commission fees at an agreed-upon rate. In 2023 the rate was a percentage of the capital raised. Platform fees are paid to the Company from customers' escrow accounts. For certain Regulation A offerings, the Company earns a portion of its platform fees in warrants or shares. The grant date fair values of shares and warrants received are recognized as revenue when earned. The Company's performance obligations are satisfied as services are rendered throughout the duration of the campaign.

Revenues from Regulation Crowdfunding platform fees are recognized at an agreed-upon rate based on the amount invested in an offering. Platform fees are due upon the disbursement of funds from escrow and are paid to the Company from customers' escrow accounts. The Company's performance obligations are satisfied as services are rendered throughout the duration of the campaign.

The Company provides marketing services branded under the name "StartEngine Premium" for its Regulation Crowdfunding issuers as part of services offered. The Company invoices for these services upon an issuer onboarding to launch a campaign. The amount is non-refundable.

The Company provides transfer agent services branded under the name "StartEngine Secure" through its registered transfer agent subsidiary, StartEngine Secure, LLC. The Company enters into an agreement with issuers for an annual term that commences from the date the issuers' Regulation Crowdfunding or Regulation A offering launches and renews annually unless cancelled prior to renewal. Initial payment of services is paid from funds of the offering and is non-refundable. Renewals are invoiced on the first day of each annual period and are not subject to cancellation. The initial payment is paid from funds of the offering and is non-refundable. The transfer agent services represent a single performance obligation and is deferred over 12 months, which is the period over which the Company's performance obligations are to be satisfied. Fees for transfer agent services are charged based on a per investor basis, subject to certain maximums. The Company may also invoice customers for ancillary services such as but not limited to: recording of stock splits, change of address, or other services. These services are provided and earned at a point-in-time based on defined amounts in the agreement. Payment for StartEngine Secure services are generally paid via customers' escrow account, in full, during the initial year and billed to the client for cash payment for subsequent years if the customer does not have a follow-on offering or to the extent amounts in escrow are not sufficient. There are no significant judgments related to this revenue stream.

The Company provides services to investors branded the StartEngine Venture club program. The general public can become members of the StartEngine Venture Club program on StartEngine's website for $275 per year. The Venture Club entitles members to 10% bonus shares on all investments they make in offerings on StartEngine where the issuer chooses to participate in the program. Issuers using our broker-dealer and funding portal services can choose to participate in our Venture Club program with respect to the offerings they are making under Regulation A or Regulation CF. Those issuers will grant bonus shares in their offerings to members of the StartEngine Venture Club program. The bonus shares are included in the offering statements filed with the SEC, and therefore offered and sold in reliance on Regulation A or Regulation CF, respectively. The Venture Club program provides member priority access to certain collectibles being offered through one of our subsidiary Series LLC offerings, notification of new bonus eligible launches and the ability to move to the front of the line on investment waitlists, and lower trading fees on StartEngine Secondary. The Company recognizes the revenue associated with memberships over 12 months, which is the term of the membership. There are no significant judgments related to this revenue stream. Such revenues are included in Venture Club revenue noted below.

The Company provides accredited investors the opportunity to purchase membership interests in funds ("SE Funds"), via StartEngine Private, which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offering. The SE Funds are managed by StartEngine Adviser LLC ("SE Adviser"), which is a subsidiary of the Company that is an investment adviser that qualifies as an Exempt Reporting Adviser under Rule 203(m)-1 under the Investment Advisers Act of 1940. The SE Funds sell their shares in offerings that are exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and specifically Regulation D promulgated thereunder. Such offerings are marketed to accredited investors by the Company's FINRA-member and SEC-registered broker-dealer subsidiary, StartEngine Primary LLC ("SE Primary"). The Company purchases the private company shares either directly or through other special purpose vehicles and after a certain period of time sells its investment to an SE Fund. The Company takes principal risk in its acquisition of the private company shares and can recognize gross revenue from their sale to the SE Fund. Revenue can be recognized upon each such transaction with an SE Fund.

Vinovest provides investors the opportunity to invest and sell fine wine and whisky products on its platform. Vinovest will purchase and liquidate purchases of wine and whisky and will charge a transaction fee for this service. Additionally, the investors will be charged a recurring payment for storage, insurance and management, a portion of which is paid to Vinovest.

The Company also provides other ancillary bundled professional services, which are recognized as such services are rendered.

In all instances, as a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

The Company's contracts with customers generally have a term of one years or less. The Company had deferred revenue of $3,757,788 and $3,569,450 as of March 31, 2026 and December 31, 2025, respectively, related to performance obligations yet to be fulfilled. The Company had no other customer contract assets.

During the three months ended March 31, 2026 and 2025, disaggregated revenue was made up of the following categories associated with the above-described services:

---

| | | |
|:---|:---|:---|
|  | **Three Months**<br>**Ended March 31,** | **Three Months**<br>**Ended March 31,** |
|  | **2026** | **2025** |
| Regulation Crowdfunding platform fees | $1968122 | $1802197 |
| Regulation A commissions | 293618 | 1432818 |
| StartEngine Premium | 138000 | 813895 |
| StartEngine Secure | 318475 | 348270 |
| StartEngine Private | 20492314 | 24620809 |
| Venture Club revenue | 1381762 | 1343208 |
| Vinovest | 272241 |  |
| Other service revenue | 185159 | 3160 |
| Total revenues | $25049691 | $30364357 |

---

*Cost of Revenues*

Cost of revenues consists of internal employees, hosting fees, processing fees, and certain software subscription fees that are required to provide services to our issuers. Additionally, costs related to StartEngine Private, which includes the cost basis of the stock as well as the acquisition fees related to obtaining the stock included in the offerings.

*Research and Development*

We incur research and development costs during the process of researching and developing our technologies and future offerings. Our research and development costs consist primarily of non-capitalizable engineering fees for both employees and consultants related to our website and future product offerings, email and other tools that are utilized for client related services and outreach. During the three months ended March 31, 2026 and 2025, research and development costs were $1,418,463 and $1,399,602 respectively.

*Stock-Based Compensation*

The Company accounts for stock-based compensation costs under the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or canceled during the periods reported. Stock-based compensation is recognized as an expense over the employee's requisite vesting period and over the non-employee's period of providing goods or services. The Company recognized a significant increase in Stock-Based Compensation year over year as both the fair value grant and the employee count increased, further increasing the a granted.

*Earnings per Common and Common Equivalent Share*

The computation of basic earnings per common share is computed using the weighted average number of common shares outstanding during the year. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus common stock equivalents which would arise from the exercise of securities outstanding using the treasury stock method and the average market price per share during the period. Options and convertible preferred stock which are common stock equivalents are not included in the diluted earnings per share calculation for the three months ended March 31, 2026 as the effects would be anti-dilutive. See Note 6 for outstanding stock-options as of March 31, 2026. The weighted average shares outstanding – basic and diluted is calculated as follows for the period ended March 31, 2026 and 2025:

---

| | |
|:---|:---|
|  | **Three Months Ended March 31,**<br>**2026** |
| Net income attributable to common shareholders | (2234904) |
| Weighted average shares outstanding - basic and diluted | 731535873 |
| Basic earnings per share | 0.00 |
| Diluted earnings per share | 0.00 |

---

---

| | |
|:---|:---|
|  | **Three Months Ended March 31,**<br>**2025** |
| Net income attributable to common shareholders | 1717451 |
| Weighted average shares outstanding - basic | 699704280 |
| Effect of dilutive stock options | 120956470 |
| Effect of convertible preferred shares | 399893680 |
| Weighted average shares outstanding - diluted | 1220554430 |
| Basic loss per share | 0.00 |
| Diluted loss per share | 0.00 |

---

*Concentration of Credit Risk*

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be creditworthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

At times, the Company may have certain vendors or customers that make up over 10% of the balance at any given time. However, the Company is not dependent on any single or group of vendors or customers, and accordingly, the loss of any such vendors or customers would not have a significant impact on the Company's operations.

*Recent Accounting Pronouncements*

Beginning in 2024 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards Board (FASB). This new standard requires an enhanced disclosure of significant segment expenses on an annual basis.

We manage our company as one reportable operating segment, StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.) The segment information aligns with how the Company's Chief Operating Decision Maker ("CODM") reviews and manages our business. The Company's CODM is the Company's Chief Executive Officer.

Financial information and annual operating plans and forecasts are prepared and reviewed by the CODM at a entity level. The CODM assesses performance for the broker-dealer segment and decides how to better allocate resources based on revenue that is reported on the Statements of Operations. The Company's objective in making resource allocation decisions is to optimize the financial results. The accounting policies of our broker-dealer segment are the same as those described in the summary of significant accounting policies herein.

For single reportable segment-level financial information, total assets, and significant non-cash transactions, see attached financial statements.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies the effective date of ASU 2024-03, which requires public business entities to provide disaggregated disclosures of certain income statement expense captions. ASU 2025-01 specifies that the requirements are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027; early adoption is permitted. The adoption of ASU 2025-01 will not have a material effect on the Company's financial statements.

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendments in this update enhance the transparency and decision usefulness of income tax disclosures, primarily by requiring more detailed information about a reporting entity's effective tax rate reconciliation and income taxes paid.

The standard requires public business entities to disclose, on an annual basis, a tabular rate reconciliation using both percentages and reporting currency amounts, with specific categories and additional detail for reconciling items that meet a quantitative threshold. The amendments also require disclosure of income taxes paid, disaggregated by federal (national), state, and foreign jurisdictions, as well as by individual jurisdictions that are significant.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted.

The Company has adopted ASU 2023-09 on its consolidated financial statements and related disclosures on a prospective basis.

**NOTE 3 – MARKETABLE SECURITIES AND INVESTMENTS**

*Marketable Securities*

Marketable securities consisted of the following as of March 31, 2026 and December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | March 31, 2026 | December 31, 2025 |
| Common stock | $1856 | $1856 |
|  | $1856 | $1856 |

---

*Investments – Warrant Assets*

Equity warrants, as described in Note 2, are equity warrants received for services provided. The warrants are valued on the date they are earned in accordance with revenue recognition criteria and again at each reporting date.

*Investments – Stock*

Investments - stock, as described in Note 2, consist of shares the Company holds in various companies that launched on its platform received in exchange for services provided. The shares are recorded at cost less any impairment.

**NOTE 4 – PROPERTY AND EQUIPMENT**

As of March 31, 2026 and December 31, 2025, property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | March 31, 2026 | December 31, 2025 |
| Computer equipment | $335194 | $194768 |
| Software | 7243 | 3753 |
| Total property and equipment | 342437 | 198521 |
| &nbsp;&nbsp;Accumulated depreciation | (200122) | (73308) |
| Total property and equipment, net of depreciation | $142315 | $125213 |

---

Depreciation expense for the three months ended March 31, 2026 and 2025 was $1,078 and $4,806, respectively.

**NOTE 5 – INTANGIBLE ASSETS**

*Intangibles – Seedinvest*

On May 5, 2023, StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.) ("StartEngine") completed its purchase of substantially all of the assets of the SeedInvest business as conducted by Circle Internet Financial Limited through its subsidiary Pluto Holdings, LLC, a Delaware limited liability company ("Pluto Holdings") and through SI Securities, LLC, a New York limited liability company ("SI Securities"), and SeedInvest Technology, LLC, a New York limited liability company, each a wholly-owned subsidiary of Pluto Holdings ("SeedInvest Technology," collectively, with the assets acquired from Pluto Holdings and SI Securities, "SeedInvest"). This agreement specifically does not include the registered broker-dealer or the Alternative Trading System ("ATS") belonging to SeedInvest. The total consideration for the purchase is 19,200,000 shares of StartEngine's common stock, which based on StartEngine's previous Regulation A offering price of $25 per share would be valued at $24 million. The acquisition included intellectual property including the customer list of SI Securities as well as other digital assets.

In accordance with the guidance in FASB ASC 350-30-35-14, the Company evaluates the customer list for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. If the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess.

The Company considers various factors that may indicate impairment of the customer list, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· Declines in customer retention rates

&nbsp;&nbsp;&nbsp;&nbsp;· Reductions in revenue per customer

&nbsp;&nbsp;&nbsp;&nbsp;· Changes in market conditions affecting the value of the customer relationships

&nbsp;&nbsp;&nbsp;&nbsp;· Strategic shifts that alter the utility of the acquired customer list

As of March 31, 2026, the gross carrying amount of the purchase was $24,121,041, accumulated amortization is $9,963,134 and the estimated aggregate amortization for the five succeeding fiscal years and thereafter is as follows:

---

| | |
|:---|:---|
| 2026 | 2571429 |
| 2027 | 3428572 |
| 2028 | 3428572 |
| 2029 | 3428572 |
| 2030 | 1320761 |
| Total | 14177906 |

---

On March 17, 2026, StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.) ("StartEngine") completed its purchase of substantially all of the assets of the Vinovest business. The total consideration for this purchase is 8,750,000 shares of StartEngine's common stock, which based on StartEngine's previous Regulation A offering price of $1.60 per share would be valued at $14 million. This acquisition included intellectual property including the customer list of Vinovest. The value of the consideration that has been allocated to the intellectual property intangible asset is $12,653,239.

In accordance with the guidance in FASB ASC 350-30-35-14, the Company evaluates the customer list for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. If the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess.

The Company considers various factors that may indicate impairment of the customer list, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· Declines in customer retention rates

&nbsp;&nbsp;&nbsp;&nbsp;· Reductions in revenue per customer

&nbsp;&nbsp;&nbsp;&nbsp;· Changes in market conditions affecting the value of the customer relationships

&nbsp;&nbsp;&nbsp;&nbsp;· Strategic shifts that alter the utility of the acquired customer list

As of March 31, 2026, the gross carrying amount of the purchase was $14,000,000, accumulated amortization is $71,429 and the estimated aggregate amortization for the five succeeding fiscal years and thereafter is as follows:

---

| | |
|:---|:---|
| 2026 | 1687099 |
| 2027 | 2530648 |
| 2028 | 2530648 |
| 2029 | 2530648 |
| 2030 | 2530648 |
| Total | 11809690 |

---

Intangible assets of the Company at March 31, 2026 are summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | March 31, 2026 | March 31, 2026 | March 31, 2026 | March 31, 2026 |
|  | Cost | Accumulated Amortization | Impairment | Net |
| Seedinvest customer list | $24000000 | $(9963134) | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $14036866 |
| Vinovest customer list | 12653239 | (71429) | - | 12581810 |
|  | $36653239 | $(10034563) | $- | $26618676 |

---

**NOTE 6 – COMMITMENTS AND CONTINGENCIES**

The Company is currently not involved with and does not know of any pending or threatening litigation against the Company or any of its officers.

**NOTE 7 – STOCKHOLDERS' EQUITY**

*Preferred Stock*

As of March 31, 2026, the Company has authorized the issuance of 519,000,000 shares of our preferred stock with par value of $0.00001. Of these authorized shares, 207,000,000 are designated as Series A, 99,000,000 are designated as Series T, and 213,000,000 are designated as Series Seed.

*Series A Preferred Stock*

The Series A has liquidation priority over the Series Seed and common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series A shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment is made to Series Seed or common stock, liquidation distributions, which will be paid ratably with the Series T in proportion to its respective liquidation preference. Holders of Series A will receive an amount equal to $0.0286 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of the Series A and Series T ratably in proportion to the full preferential amounts for which they are entitled. The Series A votes on an as-converted basis. The Series A is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series A is automatically convertible into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, coverts the offer and sale of common stock at an offering price of not less than $0.1430 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series A has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments.

*Series T Preferred Stock*

The Series T have liquidation priority over the Series Seed and common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series T shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment is made to Series Seed or common stock, liquidation distributions, which will be paid ratably with the Series A in proportion to its respective liquidation preference. Holders of Series T will receive an amount equal to $0.1465 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of the Series A and Series T ratably in proportion to the full preferential amounts for which they are entitled. The Series T votes on an as-converted basis. The Series T is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series T is automatically convertible into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, coverts the offer and sale of common stock at an offering price of not less than $0.1465 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series T has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments.

*Series Seed Preferred stock*

The Series Seed have liquidation priority over the common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series Seed shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, after any payment made to Series A and Series T, but before any payment is made to the Company's common stock, an amount equal to $0.0083 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of Series A and Series T first, then ratably in proportion to the full preferential amounts for which they are entitled to the Series Seed. The Series Seed votes on an as-converted basis. The Series Seed is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series Seed is automatically converted into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, converts the offer and sale of common stock at an offering price of not less than $0.1430 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series Seed has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments.

The following table summarizes the designation, shares authorized, and shares outstanding for the Company's Preferred Stock:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Preferred Stock Series Designation** | **Preferred Shares**<br>**Authorized** | **Preferred Shares**<br>**Outstanding** | **Potentially Issuable**<br>**Preferred Shares** |
| Series Seed | 213000000 | 204772940 | 8227060 |
| Series A | 207000000 | 185440880 | 21559120 |
| Series T | 99000000 | 9642080 | 89357920 |

---

*Common Stock*

As of March 31, 2026 we had authorized the issuance of 1,580,000,000 shares of our common stock with par value of $0.00001

During the three months ended March 31, 2026, the Company sold 3,653,075 shares of common stock through its Regulation A offering for gross proceeds of $5,117,829 and incurred offering costs of $4,101,971.

During the three months period ended March 31, 2025, the Company sold 1,922,194 shares of common stock through its Regulation A offering for gross proceeds of $2,125,026 and incurred offering costs of $1,444,755.

*Stock Options*

In 2015, the Board of Directors adopted the StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.) 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for the grant of equity awards to employees and consultants, including stock options, stock purchase rights and restricted stock units to purchase shares of common stock. Up to 231,800,000 shares of common stock may be issued pursuant to awards granted under the 2015 Plan. The 2015 Plan is administered by the Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board.

The Company's 2025 Equity Incentive Plan became effective on June 4, 2025, authorizing up to 80,000,000 additional shares of Common Stock for issuance.

The Company valued options granted under the 2015 Plan under ASC 718 using the Black-Scholes pricing model. The granted options in 2026 and 2025 have exercise prices of $1.60 – $1.76 and $1.25 – $1.38, respectively, generally vest over four years and expire in ten years. The stock options granted during the three months ended March 31, 2026 and 2025 were valued using the Black-Scholes pricing model using the range of inputs as indicated below:

---

| | |
|:---|:---|
|  | **2026** |
| Expected life (years) | 6.5 |
| Risk-free interest rate | 4.0% |
| Expected volatility | 54.6% |
| Annual dividend yield | 0% |

---

The risk-free interest rate assumption for options granted is based upon observed interest rates on the United States government securities appropriate for the expected term of the Company's employee stock options.

The expected term of employee stock options is calculated using the simplified method which takes into consideration the contractual life and vesting terms of the options.

The Company determined the expected volatility assumption for options granted using the historical volatility of comparable public Company's common stock. The Company will continue to monitor peer companies and other relevant factors used to measure expected volatility for future stock option grants, until such time that the Company's common stock has enough market history to use historical volatility.

The dividend yield assumption for options granted is based on the Company's history and expectation of dividend payouts. The Company has never declared or paid any cash dividends on its common stock, and the Company does not anticipate paying any cash dividends in the foreseeable future.

The Company currently recognizes option forfeitures as they occur as there is insufficient historical data to accurately determine future forfeiture rates A summary of the Company's stock option activity and related information is as follows

A summary of option activity under the 2015 Plan for three months ended March 31, 2026 is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | Options | Weighted-<br> Average<br> Exercise Price | Aggregate Intrinsic Value |
| Outstanding at December 31, 2025 | 158828223 | 0.59 |  |
| &nbsp;&nbsp;Granted | 12410000 | 1.60 |  |
| &nbsp;&nbsp;Exercised | (38077) | 0.22 | 52673 |
| &nbsp;&nbsp;Forfeited | (2543846) | 1.20 |  |
| &nbsp;&nbsp;Expired | - |  |  |
| Outstanding at March 31, 2026 | 168656300 | 0.67 | (156285428) |
| Exercisable at March 31, 2026 | 110533808 | 0.46 | (126008541) |

---

The intrinsic value used in the above calculation was $0.9199 per share.

Stock option expense for the periods ended March 31, 2026 and 2025 was $2,838,267 and $2,651,080, respectively, and are included within the condensed consolidated statements of operations as follows:

---

| | | |
|:---|:---|:---|
|  | Three Months Ended March 31, | Three Months Ended March 31, |
|  | 2026 | 2025 |
| Cost of revenues | $428741 | $300583 |
| General and administrative | 520273 | 486966 |
| Sales and marketing | 1372776 | 1374978 |
| Research and development | 516477 | 488553 |
| Total | $2838267 | $2651080 |

---

At March 31, 2026, the total compensation cost related to nonvested awards not yet recognized was approximately $16,581,740 and the weighted-average period over which the total compensation cost related to nonvested awards not yet recognized is expected to be recognized is 2.18 years.

**NOTE 8 – INCOME TAX**

The Company recorded tax expense of $21,734 for the three months ended March 31, 2026, compared to $8,340 for the three months ended March 31, 2025. The effective tax rate for the three months ended March 31, 2026 and 2025 was (0.001)% and 0.005%, respectively.

The Company's effective tax rate for interim periods is based on the estimated annual effective tax rate, adjusted for discrete items occurring within the quarter. The Company continues to assess its valuation allowance position on deferred tax assets and determined that no material changes were necessary as of March 31, 2026.

As of March 31, 2026 and 2025, the Company has no gross unrecognized tax benefits that would affect the effective tax rate. The Company does not anticipate significant changes in unrecognized tax benefits within the next 12 months. the Company has gross unrecognized tax benefits of $0, of which $0 would affect the effective tax rate if recognized. The Company remains subject to examination in various jurisdictions. As of March 31, 2026, open tax years include federal 2022–2025 and California 2021–2025.

**NOTE 9 – ACQUISITION OF VINOVEST**

Prior to the Closing, the Company entered into an agreement to purchase all voting equity interests of Vinovest, Inc. on March 17, 2026. The consideration for this purchase was the issuance of 8,750,000 shares of StartEngine common stock valued at its most recent regulation A offering price of $1.60 per share for a total price of $14,000,000. Included in this consideration is a provision for 20% of the shares issued (1,750,000 shares) to be reclaimed by the Company if certain imdemnifications clauses are triggered. At this time, the Company believes these clauses to be more unlikely than not to be triggered, and as such, has not created an asset for the right to return of these reclaimable shares.

As a result of the closing of the business combination the Company allocated the purchase price with the acquisition of Vinovest under the acquisition method of accounting. The final allocation of the purchase consideration for the mergers will be determined after the completion of a thorough analysis to determine the fair value of all assets acquired and liabilities assumed, but in no event later than one year following the completion of the mergers.

As such the allocation of the purchase price is revised as follows:

---

| | |
|:---|:---|
| Stock paid to Vinovest | $14000000 |
| Total Consideration Paid | 14000000 |
| Allocated to: | $— |
| Cash | 3536944 |
| Receivables and other current assets | 581659 |
| Collectibles held | 1128858 |
| Assets under management | 97428306 |
| Fixed assets | 6442 |
| Intangible assets | 12654169 |
| Accounts payable, accrued expenses and other current liabilities | (711678) |
| Customer deposits | (100624700) |
| Net assets acquired | 14000000 |
| Excess of purchase price over net liabilities assumed before allocation to identifiable intangible assets and goodwill | - |

---

Management has made the initial determination that all assets and liabilities to be acquired are primarily estimated to be stated at their fair values, which approximates their recorded cost. While a final determination of the value of the identifiable intangibles has not been completed, management has made an initial determination that approximately $6.1 million of the excess of the purchase price over the net assets acquired should be allocated to identifiable intangible assets.

---

| | | | |
|:---|:---|:---|:---|
|  | | Estimated | Estimated |
|  | |  | Useful Life |
|  |<br>Amount |  | (Years) |
| Customer Lists (a) | 12653239 |  | 5 |
| Excess of purchase price |  |  |  |
| Goodwill |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) The Vinovest customer relationships were valued using the Multi-Period Excess Earnings Method ("MPEEM").
The MPEEM reflects the present value of the operating cash flows generated by existing customer relationships after taking into account
the cost to realize the revenue and an appropriate discount rate to reflect the time value and risk associated with the cash flows.

***Pro Forma Financial Information***

The unaudited pro forma financial information in the table below summarizes the combined results of Vinovest operations and StartEngine Crowdfunding's operations, as though the acquisition of Vinovest had been completed as of the beginning of fiscal 2026 and 2025. The pro forma financial information for the three months ended March 31, 2026 and 2025 combines our results for these periods with that of Vinovest's results for the three months ended March 31, 2026 and 2025. The amount of revenue and revenue of the acquiree since the acquisition date included in the consolidated income for the reporting period was $272,240 and $41,444, respectively.

The following table summarizes the unaudited pro forma financial information:

---

| | | | |
|:---|:---|:---|:---|
|  | March 31, 2025 |  | March 31, 2026 |
| Total revenue | 31487856 | Total revenue | 26796273 |
| Net income | 1587138 | Net loss | (2114623) |
| Weighted average shares |  | Weighted average shares |  |
| Basic | 699704280 | &nbsp;&nbsp;Basic | 731535873 |
| Net loss per shares: |  | Net loss per shares: |  |
| Basic | 0.00 | &nbsp;&nbsp;Basic | (0.00) |
| Weighted average shares |  | Weighted average shares |  |
| Diluted | 1220554430 | &nbsp;&nbsp;Diluted | 731535873 |
| Net loss per shares: |  | Net loss per shares: |  |
| Diluted | 0.00 | &nbsp;&nbsp;Diluted | (0.00) |

---

The unaudited pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and the cost of financing the acquisition had taken place at the beginning of fiscal 2026. The financial information for the periods presented above includes pro forma adjustments as follows:

<u>March 31, 2026</u> <br> Transaction cost — <br> Amortization of intangibles 150,634

**NOTE 10 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events that occurred after March 31, 2026.

**Report of Independent Registered Public Accounting Firm** 

To the Board of Directors and

Stockholders of StartEngine Crowdfunding, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of StartEngine Crowdfunding, Inc. and subsidiaries (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of operations, stockholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Haynie

**Haynie & Company (ID #457)**

Salt Lake City, Utah

March 31, 2026

We have served as the Company's auditor since 2023.

**StartEngine Crowdfunding, Inc.**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Assets |  |  |
| Current assets: |  |  |
| Cash | $28387261 | $10842297 |
| Marketable securities | 1856 | 1856 |
| Accounts receivable, net of allowance | 1108093 | 2848880 |
| Other current assets | 929326 | 1032932 |
| Total current assets | 30426536 | 14725965 |
| Property and equipment, net | 125213 | 126698 |
| Investments - warrants | 54021 | 60103 |
| Investments - Stock | 9142997 | 10327834 |
| Investments - Private | 13990161 | 4701010 |
| Investments - Collectibles | 2362083 | 2361996 |
| Investments - Real Estate |  | 1479310 |
| Due from related party | 233890 | 209360 |
| Intangible assets, net | 15035049 | 18463620 |
| Other assets | 33847 | 33847 |
| Total assets | $71403797 | $52489743 |
| Liabilities and Stockholders' Equity |  |  |
| Current liabilities: |  |  |
| Accounts payable | $990993 | $542903 |
| Accrued liabilities | 10196824 | 6725780 |
| Deferred revenue | 3569450 | 2880316 |
| Total current liabilities | 14757267 | 10148999 |
| Total liabilities | 14757267 | 10148999 |
| Commitments and contingencies (Note 6) |  |  |
| Stockholders' equity: |  |  |
| Series A Preferred Stock, par value $0.00001, 207,000,000 shares authorized, 185,440,880 and 185,440,880 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectfully, liquidation preference of $5,310,409 and $5,310,409 at December 31, 2025 and December 31, 2024, respectively. | 5286667 | 5286667 |
| Series T Preferred Stock, par value $0.00001, 99,000,000 shares authorized, 9,642,080 and 9,642,080 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively, liquidation preference of $1,414,486 and $1,414,486 at December 31, 2025 and December 31, 2024, respectively. | 983634 | 983634 |
| Series Seed Preferred Stock, par value $0.00001, 213,000,000 shares authorized, 204,772,940 and 204,810,720 and shares issued and outstanding at December 31, 2025 and December 31, 2024, respectfully, liquidation preference of $1,707,675 and $1,707,990 at December 31, 2025 and December 31, 2024, respectively. | 1706441 | 1706756 |
| Common stock, par value $0.00001, 1,580,000,000 shares authorized, 745,825,392 and 702,861,520 shares issued and outstanding at December 31, 2025 and December 31, 2024, respectively. | 7457 | 7028 |
| Additional paid-in capital | 108376818 | 95543998 |
| Noncontrolling interest | (13251) | (13251) |
| Accumulated deficit | (59701236) | (61174088) |
| Total stockholders' equity | 56646530 | 42340744 |
| Total liabilities and stockholders' equity | $71403797 | $52489743 |

---

See accompanying notes to consolidated financial statements

**StartEngine Crowdfunding, Inc.**

**Consolidated Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Revenues | $109580580 | $48625508 |
| Cost of revenues | 71699643 | 25873241 |
| Gross profit | 37880937 | 22752267 |
| Operating expenses: |  |  |
| General and administrative | 15621099 | 13758127 |
| Sales and marketing | 12858746 | 16473905 |
| Research and development | 5356424 | 7796521 |
| Change in fair value of warrants received for fees | 6083 | 135384 |
| Change in fair value of shares received for fees | 2590872 | 724933 |
| Total operating expenses | 36433224 | 38888870 |
| Operating income (loss) | 1447713 | (16136603) |
| Other income (expense) |  |  |
| Other income (expense), net | 119745 | (400055) |
| Total other income (expense), net | 119745 | (400055) |
| Income (loss) before provision for income taxes | 1567458 | (16536658) |
| Taxes - Other | 94606 |  |
| Net income (loss) | $1472852 | $(16536658) |
| Weighted average earnings per share - basic | $0.00 | $(0.02) |
| Weighted average shares outstanding - basic | 730981153 | 699099798 |
| Weighted average earnings per share - diluted | $0.00 | $(0.02) |
| Weighted average shares outstanding - diluted | 1213270543 | 699099798 |

---

See accompanying notes to consolidated financial statements

**StartEngine Crowdfunding, Inc.**

**Consolidated Statements of Stockholders' Equity**

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series T Preferred Stock** | **Series T Preferred Stock** | **Series Seed Preferred Stock** | **Series Seed Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Noncontrolling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2023** | 185440880 | $5286667 | 9642080 | $983634 | 204810720 | $1706756 | 697085900 | $6971 | $82005447 | $(13251) | $(44637430) | $45338794 |
| Sale of Common Stock |  |  |  |  |  |  | 2362173 | 27 | 2553886 |  |  | 2553913 |
| Exercise of stock options |  |  |  |  |  |  | 3413447 | 30 | 44645 |  |  | 44675 |
| Offering Costs |  |  |  |  |  |  |  |  | (339997) |  |  | (339997) |
| Stock compensation expense |  |  |  |  |  |  |  |  | 11280017 |  |  | 11280017 |
| Net loss |  |  |  |  |  |  |  |  |  |  | (16536658) | (16536658) |
| **Balance at December 31, 2024** | 185440880 | 5286667 | 9642080 | 983634 | 204810720 | 1706756 | 702861520 | 7028 | 95543998 | (13251) | (61174088) | 42340744 |

---

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock** | **Series A Preferred Stock** | **Series T Preferred Stock** | **Series T Preferred Stock** | **Series Seed Preferred Stock** | **Series Seed Preferred Stock** | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in Capital** | **Noncontrolling**<br>**Interest** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance at December 31, 2024** | 185440880 | $5286667 | 9642080 | $983634 | 204810720 | $1706756 | 702861520 | $7028 | $95543998 | $(13251) | $(61174088) | $42340744 |
| Sale of common Stock |  |  |  |  |  |  | 11576675 | 116 | 13468306 |  |  | 13468422 |
| Exercise of stock options |  |  |  |  |  |  | 31349417 | 313 | 630320 |  |  | 630633 |
| Conversion of Preferred Stock |  |  |  |  | (37780) | (315) | 37780 |  | 315 |  |  |  |
| Offering Costs |  |  |  |  |  |  |  |  | (10307175) |  |  | (10307175) |
| Stock compensation expense |  |  |  |  |  |  |  |  | 9041054 |  |  | 9041054 |
| Net income |  |  |  |  |  |  |  |  |  |  | 1472852 | 1472852 |
| **Balance at December 31, 2025** | 185440880 | 5286667 | 9642080 | 983634 | 204772940 | 1706441 | 745825392 | 7457 | 108376818 | (13251) | (59701236) | 56646530 |

---

See accompanying notes to consolidated financial statements

**StartEngine Crowdfunding, Inc.**

**Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** |
|  | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| Net income (loss) | $1472852 | $(16536658) |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;Depreciation | 13191 | 15303 |
| &nbsp;&nbsp;Amortization | 3428571 | 3428572 |
| &nbsp;&nbsp;Bad debt expense | 425277 | 313596 |
| &nbsp;&nbsp;Realized loss on sale of investments - building |  | 432148 |
| &nbsp;&nbsp;Fair value of investments - other received for fees | (1412119) | (2429556) |
| &nbsp;&nbsp;Change in fair value of warrant investments | 6082 | 135384 |
| &nbsp;&nbsp;Impairment of investments - other received for fees | 2596956 | 724934 |
| &nbsp;&nbsp;Stock-based compensation | 9041054 | 11280017 |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | 1315510 | (2968780) |
| &nbsp;&nbsp;Other current assets | 103606 | (303874) |
| &nbsp;&nbsp;StartEngine Private stock purchases | (71537333) | (18073404) |
| &nbsp;&nbsp;Proceeds from sale of StartEngine Private stock | 62248095 | 17813602 |
| &nbsp;&nbsp;Due from related parties | (24530) | (170) |
| &nbsp;&nbsp;Accounts payable | 448090 | 264212 |
| &nbsp;&nbsp;Accrued liabilities | 3471044 | 2269024 |
| &nbsp;&nbsp;Deferred revenue | 689134 | (639834) |
| Net cash provided by (used in) operating activities | 12285480 | (4275484) |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;Purchase of property and equipment | (11706) | (22278) |
| &nbsp;&nbsp;Proceeds from sale of real estate | 1479310 | 225170 |
| Net cash provided by investing activities | 1467604 | 202892 |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;Proceeds from sale of common stock | 13468422 | 2553913 |
| &nbsp;&nbsp;Offering costs | (10307175) | (339997) |
| &nbsp;&nbsp;Proceeds from exercise of employee stock options | 630633 | 44675 |
| Net cash provided by financing activities | 3791880 | 2258591 |
| Increase (decrease) in cash and restricted cash | 17544964 | (1814001) |
| Cash and restricted cash, beginning of period | 10842297 | 12656298 |
| Cash and restricted cash, end of period | $28387261 | $10842297 |
| Supplemental disclosures of cash flow information: |  |  |
| Cash paid for income taxes | $94606 | $96104 |
| Cash paid for interest | $— | $— |

---

See accompanying notes to consolidated financial statements

**STARTENGINE CROWDFUNDING, INC.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – NATURE OF OPERATIONS**

StartEngine Crowdfunding, Inc. (the "Company") was formed on March 19, 2014 ("Inception") in the State of Delaware. The Company was originally incorporated as StartEngine Crowdsourcing, Inc. and changed to the current name on May 8, 2014. The Company's headquarters are located in Burbank, California.

The Company aims to revolutionize the startup financing model by helping both accredited and non-accredited investors invest in private companies on a public platform. StartEngine Crowdfunding Inc. has wholly-owned subsidiaries, StartEngine Capital LLC, StartEngine Secure LLC, StartEngine Assets LLC, StartEngine Primary LLC, StartEngine Private Manager LLC, StartEngine Inc., S.A. StartEngine and StartEngine Adviser LLC. StartEngine Capital LLC is a funding portal registered with the US Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA), StartEngine Secure LLC is a transfer agent registered with the SEC. StartEngine Assets LLC was formed in 2020 to buy, hold and manage assets in various asset classes such as real estate, automobiles, luxury goods and royalty-producing intangible assets. StartEngine Primary LLC was formed in October 2017 and received approval to operate as a registered broker-dealer in July 2019. On April 16, 2020, StartEngine Primary LLC received approval to operate as an alternative trading system. Since 2023, the Company has been providing accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC, an exempt reporting adviser. The Company's mission is to empower thousands of companies to raise capital and create significant amounts of jobs over the coming years.

*Stock Split*

On May 6, 2024, StartEngine Crowdfunding Inc. split its designated "Common Stock" and "Preferred Stock" on a 20 for 1 basis. The total number of shares of Common Stock that the Company is authorized to issue was increased to 1,500,000,000 shares after the split. The total number of shares of Preferred Stock that the Company is authorized to issue was increased to 519,000,000 after the split. Accordingly, all share and per share amounts for all periods presented in the consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this stock split.

*Business Condition*

The Company's revenue-producing activities began in 2015 following the implementation of Regulation A under the JOBS Act and expanded with the introduction of Regulation Crowdfunding. While these markets continue to evolve, management believes the Company's current liquidity position, including approximately $10.8 million of cash and cash equivalents, is sufficient to fund operations for at least the next twelve months. Accordingly, management has concluded that there is no substantial doubt about the Company's ability to continue as a going concern.

**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

The accompanying audited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission. The consolidated financial statements include the accounts of StartEngine Crowdfunding, Inc., its subsidiaries where we have controlling financial interests, and any variable interest entities for which we are deemed to be the primary beneficiary. All intercompany balances and transactions have been eliminated.

*Principles of Consolidation*

The consolidated financial statements include the accounts of StartEngine Crowdfunding, Inc.'s wholly-owned subsidiaries, including StartEngine Capital LLC, StartEngine Secure LLC, StartEngine Primary LLC, StartEngine Inc., S.A. StartEngine, and StartEngine Assets LLC. All significant intercompany balances and transactions have been eliminated in consolidation.

*Use of Estimates*

The preparation of financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, and the reported amount of expenses during the reporting periods. Significant estimates include the value of marketable securities, the value of stocks received as compensation, stock-based compensation for employees and collectability of accounts receivable. Actual results could materially differ from these estimates. It is reasonably possible that changes in estimates will occur in the near term.

*Cash Equivalents*

For the purposes of the statement of cash flows, the Company considers all short-term debt securities purchased with a maturity of three months or less to be 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. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits. The balance of excess as of December 31, 2025 was $23,341,862.

*Fair Value of Financial Instruments*

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 as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

Level 1- Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2- Include other inputs that are directly or indirectly observable in the marketplace.

Level 3- Unobservable inputs which are supported by little or no market activity.

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2025. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. The following are level 1, 2 and 3 assets.

<u>Level 1</u>

Investments: Marketable securities are made up of mutual funds and shares of common stock that are valued based on quoted prices in active markets.

<u>Level 2</u>

Investments - warrants (public portfolio): Fair value measurements of warrants of publicly traded portfolio companies are valued based on the Black-Scholes option pricing model. The model uses the price of publicly traded companies (underlying stock price), stated strike prices, warrant expiration dates, the risk-free interest rate and market-observable volatility assumptions based on comparable public company.

<u>Level 3</u>

Investments - warrants (private portfolio): Fair value measurements of warrants of private portfolio companies are priced based on a modified Black-Scholes option pricing model to estimate the asset value by using stated strike prices, warrant expiration dates modified to account for estimates to actual life relative to stated expiration, risk-free interest rates, and volatility assumptions based on comparable public companies. Option volatility assumptions used in the modified Black-Scholes model are based on public companies who operate in similar industries as companies in the Company's private company portfolio. For these warrants, the fair value of the underlying stock is an unobservable input consistent with Investment - stocks noted below. Certain adjustments may be applied as determined appropriate by management for lack of liquidity.

Investments – stock: Fair value measurements of stocks of private portfolio companies are prices based on a combination of issuer activity and the price of new issuances. The Company, on an annual basis, will review any new offerings from issuers and compare the offering price of the stock in the new issuance compared to the original value of the stock held. The Company will mark the held stock to the new stock price and adjust the carrying value accordingly. If an issuer has not made an offering in the year in review, the company will apply a flat 33% write down to the stock carrying value as a means of estimating the volatility and illiquidity of a privately held stock.

Non-Fungible Token ("NFT"): Blockchain based collectible images that are valued based on quoted prices in active markets.

The following fair value hierarchy table presents information about the Company's assets and liabilities that are measured at fair value as of December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities |  | 1856 |  | 1856 |
| Investment - warrants |  |  | 54021 | 54021 |
| Investment - stock | 5895 |  | 9137102 | 9142997 |
| Non-Fungible Token ("NFT") |  |  | 718 | 718 |
|  | $5895 | $1856 | $9191841 | $9199592 |

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The following fair value hierarchy table presents information about our assets and liabilities that are measured at fair value as of December 31, 2024:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total |
| Marketable securities |  | 1856 |  | 1856 |
| Investment - warrants |  |  | 60103 | 60103 |
| Investment - stock | 263096 |  | 10064738 | 10327834 |
| Non-Fungible Token ("NFT") |  |  | 631 | 631 |
|  | $263096 | $1856 | $10125472 | $10390424 |

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The following table presents additional information about transfers in and out of Level 3 assets measured at fair value for the year ended December 31, 2025 and 2024 as it relates to Investments – warrants and Investments – stocks:

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| | |
|:---|:---|
|  | Investments-<br>Warrants |
| Fair value at December 31, 2024 | $60103 |
| Receipt of warrants |  |
| Change in fair value of warrants | (6082) |
| Fair value at December 31, 2025 | $54021 |

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| | |
|:---|:---|
|  | Investments-<br>Warrants |
| Fair value at December 31, 2023 | $195487 |
| Receipt of warrants |  |
| Change in fair value of warrants | (135384) |
| Fair value at December 31, 2024 | $60103 |

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| | |
|:---|:---|
|  | Investments-<br>Stock |
| Fair value at December 31, 2024 | $10327834 |
| Receipt of stock |  |
| Reclass of stock to receivable | (448484) |
| Change in fair value of stock | (736353) |
| Fair value at December 31, 2025 | $9142997 |

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| | |
|:---|:---|
|  | Investments-<br>Stock |
| Fair value at December 31, 2023 | $8623212 |
| Receipt of stock | 2429556 |
| Change in fair value of stock | (724934) |
| Fair value at December 31, 2024 | $10327834 |

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The following range of variables were used in valuing Level 3 warrant assets during the year ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Expected life (years) | 0.17 -3.08 | 0.17 -3.08 |
| Risk-free interest rate | 3.73% | 4.16% |
| Expected volatility | 75.0 - 160.0% | 25.07 - 90% |
| Annual dividend yield | 0% | 0% |
| Underlying share values | $0.43 - 2.50 | $0.22 - 4.75 |
| Strike Prices | $0.30 - $100.00 | $0.30 – $100.00 |

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For Investments — Warrants, the primary and most significant unobservable input relates to the underlying share value of the issuers for which we receive warrants. In all cases, there were sales of the stock to the public through Regulation Crowdfunding, Regulation A, or a Regulation D funding mechanism, but such sales are often not to the level that an active market existed or exists. After the sales, such shares are often illiquid, and a change in valuation is often difficult to determine due to the lack of information available. Information regarding these unobservable inputs could correspondingly change the value of these assets.

For warrants, the Company also adjusts the expected life of certain warrants to account for potential liquidation events, as well as doubts regarding the ability for the issuer companies to continue as a going concern. The quantitative measure used is based upon Black-Scholes modeling. Significant judgment is required by Management in selecting unobservable inputs, and accordingly a change in the assumptions used for the valuation could cause the value to be significantly different. In general, increases in underlying share prices, expected life and volatility, increase the value of the warrants, whereas decreases would reduce the value.

For Investments – Stock, the primary and most significant unobservable input relates to the share value of the issuers. In all cases, there were sales of the stock to the public through Regulation Crowdfunding, Regulation A, or a Regulation D funding mechanism, but such sales are often not to the level that an active market existed or exists. After the sales, such shares are often illiquid, and a change in valuation is often difficult to determine due to the lack of information available. Information regarding these unobservable inputs could correspondingly change the value of these assets. The basis for writing down this stock is to evaluate if the issuer has performed a raise on the Company's platform within the last year. If the Company has, the stock value is updated to the current issuance price. If there has not been a raise, the Company writes down the value of the shares by 33%. This has been deemed reasonable as the shares of privately traded illiquid stocks are difficult to price, and the Company has determined through research that a markdown of this amount is reasonable due to assumed loss in value based on no new raises being hosted.

*Accounts Receivable*

Accounts receivable consist of billed amounts owed by customers under contracts and are recorded at the recognized amount. Accounts receivable are non-interest-bearing and generally have payment terms of one year or less. The Company's accounts receivable primarily arise from services billed directly to customers, including transfer agent service renewals, ancillary services, and other fees not settled through customer escrow accounts.

The Company maintains an allowance for doubtful accounts to reflect management's estimate of expected credit losses based on historical collection experience, the aging of receivables, customer-specific factors, and current economic conditions. The allowance for doubtful accounts as of December 31, 2025 and December 31, 2024 was $0 and $0, respectively. Bad debt expense for the year ended December 31, 2025 and 2024 was $0 and $313,596, respectively and primarily relates to the write-off of specific customer balances deemed uncollectible during the period.

As of December 31, 2025 the Company had accounts receivable over 90 days totaling $1,448.

*Investment Securities*

<u>Marketable Securities</u>

The Company's marketable securities consist of mutual funds and common stock equities that are tradable in an active market. Unrealized gains and losses on available-for-sale securities, net of applicable taxes, are reported as a component of other income, net in the accompanying consolidated statements of operations.

<u>Non-Marketable and Other Securities</u>

Non-marketable and other securities include investments in non-public equities. The Company's accounting for investments in non-marketable and other securities depends on several factors, including the level of ownership, power to control and the legal structure of the subsidiary making the investment. As further described below, we base the Company's accounting for such securities on: (i) fair value accounting, (ii) equity method accounting, and (iii) cost method accounting.

*Investments – Warrants*

In connection with negotiated platform fee agreements, we may obtain warrants giving us the right to acquire stock in companies undergoing Regulation A offerings. We hold these assets for prospective investment gains. We do not use them to hedge any economic risks, nor do we use other derivative instruments to hedge economic risks stemming from these warrants.

We account for warrants in certain private and public (or publicly traded under the provisions of Regulation A) client companies as derivatives when they contain net settlement terms and other qualifying criteria under ASC 815, Derivatives and Hedging. In general, the warrants entitle us to buy a specific number of shares of stock at a specific price within a specific time period. Certain warrants contain contingent provisions, which adjust the underlying number of shares or purchase price upon the occurrence of certain future events. The Company's warrant agreements typically contain net share settlement provisions, which permit us to receive at exercise a share count equal to the intrinsic value of the warrant divided by the share price (otherwise known as a "cashless" exercise). These warrants are recorded at fair value and are classified as Investments - warrants on the Company's consolidated balance sheet at the time they are obtained and remeasured each reporting period.

The grant date fair values of warrants received in connection with services performed are deemed to be revenue and recognized upon receipt.

Any changes in fair value from the grant date to fair value of warrants will be recognized as increases or decreases to investments on the Company's consolidated balance sheets and as a component of operating expenses on the Company's consolidated statements of operations.

In the event of an exercise for shares, the basis or value in the securities is reclassified from Investment - warrants to marketable securities or non-marketable securities, as described below, on the consolidated balance sheet on the latter of the exercise date or corporate action date. The shares in public companies, or companies that trade over-the-counter as allowed by Regulation A, are classified as marketable securities (provided they do not have a significant restriction from sale). The shares in private companies without an active trading market are classified as non-marketable securities.

*Investments - Stock*

In connection with negotiated platform fee agreements, the Company obtains shares of stock in its customers. Our accounting for investment in our customers stock depends on several factors, including the level of ownership, and power to control. We base our accounting for such securities on: (i) fair value accounting, (ii) equity method accounting, and (iii) cost method accounting. As the stock received from customers have no readily determinable fair values and generally represent small amounts of ownership in our customers, the Company accounts for this stock received using the cost method, less adjustments for impairment in accordance with ASC 321-10-35-2. During the year ended December 31, 2025 and 2024, the Company received stock with a cost of $0 and $2,429,556, respectively, as payment for fees. During the year ended December 31, 2025 and 2024, write down expense related to shares received amounted to $2,590,872 and $724,933, respectively. The basis for writing down this stock is to evaluate if the issuer has performed a raise on the Company's platform within the last year. If the Company has, the stock value is updated to the current issuance price. If there has not been a raise, the Company writes down the value of the shares by 33%. This has been deemed reasonable as the shares of privately traded illiquid stocks are difficult to price, and the Company has determined through research that a markdown of this amount is reasonable due to assumed loss in value based on no new raises being hosted.

*Investments – Private*

The Company purchases shares of venture capital backed, late-stage private companies and records the purchases at cost. The cost of the underlying asset includes the purchase price, and acquisition expenses, which include all fees, costs and expenses incurred in connection with the evaluation, investigation, and acquisition of the underlying securities. The Company purchases the private company shares either directly or through other special purpose vehicles and after a certain period of time sells its investment to an SE Fund. The shares are valued at cost. Each time the company sells shares to the SE Funds, it reduces its holdings by the cost basis of the sale.

Below is a breakdown of the StartEngine Private assets held by industry at the end of the reporting period, each of these investments are small minority stakes in the underlying companies.

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| | | |
|:---|:---|:---|
| Industry | December 31, 2025 | December 31, 2024 |
| AI Chips | $1689039 | $560928 |
| Fintech |  | 22823 |
| Sales Technology | 113200 | 225389 |
| Video Games |  | 285844 |
| AI Software | 8797502 | 3379387 |
| Consumer Goods |  | 18552 |
| Software Development | 20174 | 20174 |
| Medical Technology | 134884 | 187913 |
| Blockchain Technology | 57200 |  |
| Rare Earth Materials | 375375 |  |
| Advanced Materials | 215180 |  |
| AI Vehicles | 143187 |  |
| Defense Technology | 298254 |  |
| Prediction Markets | 843750 |  |
| Robotics | 270509 |  |
| Space Technology | 1031907 |  |
| Total | $13990161 | $4701010 |

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*Investments – Collectibles*

The Company treats the underlying assets as long-lived assets, and the underlying assets will be subject to an annual test for impairment and will not be depreciated or amortized. These long-lived assets are reviewed for impairment annually or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset.

The underlying assets are purchased by our subsidiary, StartEngine Assets, LLC, (the "Administrative Manager") and sold to our Series LLC subsidiary collectible funds for cash or a promissory note. The Series uses the proceeds of the offering to pay off the note. Acquisition expenses are typically paid for in advance by the Administrative Manager and are reimbursed by the Series from the proceeds of the offering in accordance with the offering circular. All such transactions are eliminated in consolidation.

The Company discontinued the offerings of Collectibles in Q3 2023 and is no longer offering purchases in these investments. The Company intends to sell its remaining held assets.

The below is a breakdown of the types of collectibles and their value held as of December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | **Period Ended December 31,** | **Period Ended December 31,** |
|  | **2025** | **2024** |
| Wine | $278360 | $278360 |
| Trading Cards | 466484 | 466484 |
| Artwork | 1322942 | 1322942 |
| Comic Books | 240451 | 240451 |
| NFT | 718 | 631 |
| Watches | 53128 | 53128 |
| Total collectibles | $2362083 | $2361996 |

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*Investments – Real Estate*

StartEngine invested $2,136,628 to purchase a membership interest in an LLC that owns one residential apartment building in California. The company values this interest via the adjusted cost measurement alternative per ASC 321-10-35-2, noting it records the initial measurement at fair value, and in subsequent reporting periods, report changes in the fair value of such equity investments in net income. On August 8, 2024 the Company executed a contract to sell a partial membership of the building. The Company agreed to sell the building at a price of $1,704,472 in 2024 and as such, recognized a loss of $432,148 in 2024. The Company received $225,000 in cash as payment for this membership in August 2024. On March 14, 2025, StartEngine completed the sale of its investment in the residential apartment building it owns a membership interest in for proceeds of $1,479,310.

*Intangible Assets*

The Company adheres to the provisions of ASC 350 – Intangibles – Goodwill and Other concerning the valuation and presentation of intangible assets. The Company determined the useful life of 7 years for the purchased assets based on historical investment data for users of the StartEngine platform. In 2023, the Company received investments from users with accounts created from 2015-2023 and have seen a continuation of that trend into 2024. As the Company continues to provide new offerings and work on outreach to users, we believe that this purchase will maintain its useful life for the duration. This amortization began in Q3 2023 and continue until the end of Q2 2030.

*Noncontrolling Interest*

The Company presents third party minority interests in subsidiaries in accordance with ASC 810, Consolidation. Under that topic, such minority interests are presented on the Company's balance sheet within the equity section as noncontrolling interest.

*Equity Offering Costs*

The Company accounts for offering costs in accordance with ASC 340, Other Assets and Deferred Costs. Prior to the completion of an offering, offering costs will be capitalized as deferred offering costs on the balance sheet. The deferred offering costs will be charged to stockholders' equity upon the completion of an offering or to expense if the offering is not completed. Offering costs of $10,307,175 and $339,997 were charged to stockholders' equity during the year ended December 31, 2025 and 2024, respectively.

*Revenue Recognition*

The Company accounts for revenue in accordance with ASC 606, Revenue from Contracts with Customers. ASC 606 contains a framework for analyzing potential revenue transactions by identifying the contract with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when (or as) the Company satisfies a performance obligation.

The Company recognizes revenues from Regulation A and Regulation D platform fees at an agreed-upon rate. In 2025 the rate is a percentage of the capital raised. Platform fees are paid to the Company from customers' escrow accounts. For certain Regulation A offerings, the Company earns a portion of its platform fees in warrants or shares. The grant date fair values of shares and warrants received are recognized as revenue when earned. The Company's performance obligations are satisfied as services are rendered throughout the duration of the campaign.

Revenues from Regulation Crowdfunding platform fees are recognized at an agreed-upon rate based on the amount invested in an offering. Platform fees are due upon the disbursement of funds from escrow and are paid to the Company from customers' escrow accounts. The Company's performance obligations are satisfied as services are rendered throughout the duration of the campaign.

The Company provides marketing services branded under the name "StartEngine Premium" for its Regulation Crowdfunding issuers as part of services offered. The Company invoices for these services upon an issuer launching a campaign. If the campaign fails to launch, no amounts are due. Revenue for these services is recognized at the point in time the campaign launches, when the Company's performance obligation is satisfied.

The Company provides transfer agent services branded under the name "StartEngine Secure" through its registered transfer agent subsidiary, StartEngine Secure, LLC. The Company enters into an agreement with issuers for an annual term that commences from the date the issuers' Regulation Crowdfunding or Regulation A offering launches and renews annually unless cancelled prior to renewal. Initial payment of services is paid from funds of the offering and is non-refundable. Renewals are invoiced on the first day of each annual period and are not subject to cancellation. The transfer agent services represent a single performance obligation and are deferred over 12 months, which is the period over which the Company's performance obligations are to be satisfied. Fees for transfer agent services are charged based on a per investor basis, subject to certain maximums. The Company may also invoice customers for ancillary services such as but not limited to: recording of stock splits, change of address, or other services. These services are provided and earned at a point-in-time based on defined amounts in the agreement. Payment for StartEngine Secure services is generally paid via customers' escrow account, in full, during the initial year and billed to the client for cash payment for subsequent years if the customer does not have a follow-on offering or to the extent amounts in escrow are not sufficient. There are no significant judgments that materially affect the timing or measurement of revenue recognition for this revenue stream.

The Company provides services to investors branded the StartEngine Venture club program. The general public can become members of the StartEngine Venture Club program on StartEngine's website for $275 per year. The Venture Club entitles members to 10% bonus shares on all investments they make in offerings on StartEngine where the issuer chooses to participate in the program. Issuers using the Company's broker-dealer and funding portal services can choose to participate in the Company's Venture Club program with respect to the offerings they are making under Regulation A or Regulation CF. Those issuers will grant bonus shares in their offerings to members of the StartEngine Venture Club program. The bonus shares are included in the offering statements filed with the SEC, and therefore offered and sold in reliance on Regulation A or Regulation CF, respectively. The Venture Club program provides member priority access to certain collectibles being offered through one of the Company's subsidiary Series LLC offerings, notification of new bonus eligible launches and the ability to move to the front of the line on investment waitlists, and lower trading fees on StartEngine Secondary. The Company recognizes the revenue associated with memberships over 12 months, which is the term of the membership. There are no significant judgments that materially affect the timing of revenue recognition for this revenue stream. Such revenues are included in Venture Club revenue noted below.

The Company provides accredited investors the opportunity to purchase membership interests in funds ("SE Funds") which own shares of venture capital backed, late-stage private companies (the "underlying securities") via its StartEngine Private product offering. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC ("SE Adviser"), which is a subsidiary of the Company that is an investment adviser that qualifies as an Exempt Reporting Adviser under Rule 203(m)-1 under the Investment Advisers Act of 1940. The SE Funds sell their membership interests in offerings that are exempt from registration under Section 4(a)(2) of the Securities Act of 1933 and specifically Regulation D promulgated thereunder. Such offerings are marketed to accredited investors by the Company's FINRA-member and SEC-registered broker-dealer subsidiary, StartEngine Primary LLC. The Company purchases the underlying securities either directly or through other special purpose vehicles and after a certain period of time sells the underlying securities to an SE Fund. Revenue is recognized upon the sale of underlying securities to an SE Fund when control transfers to the SE Fund. The Company treats the amount it receives for selling underlying securities as revenue and the acquisition cost related to underlying securities as cost of revenue. The transaction price is based on the negotiated amount received from the SE Fund. There are several factors that are used in pricing the securities of an SE Fund, including but not limited to: the price (including transaction costs) the securities were purchased by the SE Fund's affiliate, the time spent and costs involved by the SE Fund's management team including those related to identifying, verifying, acquiring, and managing the investments, sales of the underlying securities on the secondary market, as well as considerations are given for the illiquidity of private investments compared to publicly traded securities and investor interest in the SE Fund's securities. The Company also believes that there is value added by allowing investors to have an economic interest in these companies with less hassle and smaller denominations than available in secondary markets. Additionally, consideration is also given to broader economic and market conditions that might impact the valuation of private companies, such as industry trends, regulatory changes, and economic cycles. The Company takes principal risk in its acquisition of the private company shares and controls the underlying securities prior to transfer; accordingly, the Company is the principal in these arrangements and presents revenue on a gross basis. Revenue is recognized upon each such transaction with an SE Fund. The Company also provides other ancillary bundled professional services, which are recognized as such services are rendered.

In all instances, as a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less because customer payments are generally received in advance of, or contemporaneously with, the transfer of services.

The Company's contracts with customers generally have a term of one year or less. As of December 31, 2025 and 2024, the Company had deferred revenue of $3,601,366 and $2,880,316, respectively, related to performance obligations yet to be fulfilled. The Company had no other customer contract assets because the Company's right to consideration is typically unconditional at the time amounts are billed and due.

During the year ended December 31, 2025 and 2024, revenue was made up of the following categories associated with the above described services:

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| | | |
|:---|:---|:---|
|  | **Twelve Months**<br>**Ended December 31,** | **Twelve Months**<br>**Ended December 31,** |
|  | **2025** | **2024** |
| Regulation Crowdfunding platform fees | $10562073 | $8672825 |
| Regulation A commissions | 2052926 | 2711712 |
| StartEngine Premium | 2971335 | 2455425 |
| StartEngine Secure | 1348363 | 1366502 |
| StartEngine Private | 86603559 | 27883143 |
| Venture Club (formerly OWNers Bonus) revenue | 5651857 | 5352347 |
| Other service revenue | 390467 | 183554 |
| Total revenues | $109580580 | $48625508 |

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*Cost of Revenues*

Cost of revenues consists primarily of personnel costs related to internal employees, hosting fees, processing fees, and certain software subscription fees that are required to provide services to issuers and investors. Cost of revenues also includes, for StartEngine Private, the acquisition costs of underlying securities that are sold to SE Funds. These costs are expensed as incurred or, in the case of underlying securities, recognized in cost of revenues upon the sale of such securities, consistent with the recognition of related revenues.

Total cost of revenues for the years ended December 31, 2025 and 2024 was $71,699,643 and $25,873,241, respectively. Cost of revenues related to StartEngine Private, which is included in total cost of revenues, was December 31, 2025 and 2024 was $59,832,368 and $17,281,432, respectively.

*Research and Development*

We incur research and development costs during the process of researching and developing technologies and future offerings. Research and development costs consist primarily of non-capitalizable engineering fees for both employees and consultants related to the website and future product offerings, email and other tools that are utilized for client related services and outreach. During the year ended December 31, 2025 and 2024, research and development costs were $5,356,424 and $7,796,521, respectively.

*Stock-Based Compensation*

The Company accounts for stock-based compensation costs under the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense related to the fair value of stock-based compensation awards that are ultimately expected to vest. Stock-based compensation expense recognized includes the compensation cost for all stock-based payments granted to employees, officers, and directors based on the grant date fair value estimated in accordance with the provisions of ASC 718. ASC 718 is also applied to awards modified, repurchased, or canceled during the periods reported. Stock-based compensation is recognized as an expense over the employee's requisite vesting period and over the nonemployee's period of providing goods or services. Stock-based compensation expense is recognized net of estimated forfeitures, which are adjusted as actual forfeitures occur. Stock-based compensation expense is included in the accompanying statements of operations within the applicable expense classifications.

*Earnings per Common and Common Equivalent Share*

The computation of basic earnings per common share ("EPS") is computed using the weighted average number of common shares outstanding during the year. The computation of diluted earnings per common share is based on the weighted average number of shares outstanding during the year plus common stock equivalents which would arise from the exercise of securities outstanding using the treasury stock method and the average market price per share during the period. For the year ended December 31, 2025, diluted EPS includes the effect of securities that were dilutive during the period. Options and convertible preferred stock which are common stock equivalents were excluded from the diluted earnings per share calculation to the extent their effect would have been anti-dilutive (including, for example, awards that were out-of-the-money during the period). For the year ended December 31, 2024, the Company incurred a net loss; therefore, all potentially dilutive securities were considered anti-dilutive and were excluded from diluted EPS. See Note 7 for outstanding stock-options as of December 31, 2025. See Note 7 for outstanding stock-options as of December 31, 2025. The weighted average shares outstanding – diluted is calculated as follows for the period ended December 31, 2025 and 2024:

---

| | |
|:---|:---|
|  | **Year Ended December 31,** |
|  | 2025 |
| Net income attributable to common shareholders | 1472852 |
| Weighted average shares outstanding - basic | 730981153 |
| Effect of dilutive stock options | 82395710 |
| Effect of convertible preferred shares | 399893680 |
| Weighted average shares outstanding - diluted | 1213270543 |
| Basic earnings per share | 0.00 |
| Diluted earnings per share | 0.00 |

---

---

| | |
|:---|:---|
|  | December 31,<br>2024 |
| Net loss attributable to common shareholders | (16536658) |
| Weighted average shares outstanding - basic | 699099798 |
| Weighted average shares outstanding - diluted | 699099798 |
| Basic loss per share | (0.02) |
| Diluted loss per share | (0.02) |

---

The number of shares of preferred stock underlying stock-based awards excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the years ended December 31 2025 and 2024 were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2025 |
| Potentially issuable shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options |  | 46218620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  | 119106320 |

---

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2024 | 2024 |
| Potentially issuable shares |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options |  | 48668522 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock |  | 119106320 |

---

Concentration of Credit Risk

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be creditworthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

At times, the Company may have certain vendors or customers that make up over 10% of the balance at any given time. However, the Company is not dependent on any single or group of vendors or customers, and accordingly, the loss of any such vendors or customers would not have a significant impact on the Company's operations.

*Recent Accounting Pronouncements*

Beginning in 2024 annual reporting, we adopted Accounting Standards Update (ASU) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07) that was issued by the Financial Accounting Standards Board (FASB). This new standard requires an enhanced disclosure of significant segment expenses on an annual basis.

We manage our company as one reportable operating segment, StartEngine Crowdfunding, Inc. The segment information aligns with how the Company's Chief Operating Decision Maker ("CODM") reviews and manages our business. The Company's CODM is the Company's Chief Executive Officer.

Financial information and annual operating plans and forecasts are prepared and reviewed by the CODM at a entity level. The CODM assesses performance for the broker-dealer segment and decides how to better allocate resources based on revenue that is reported on the Statements of Operations. The Company's objective in making resource allocation decisions is to optimize the financial results. The accounting policies of our broker-dealer segment are the same as those described in the summary of significant accounting policies herein.

For single reportable segment-level financial information, total assets, and significant non-cash transactions, see attached financial statements.

In January 2025, the FASB issued ASU 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date. This update clarifies the effective date of ASU 2024-03, which requires public business entities to provide disaggregated disclosures of certain income statement expense captions. ASU 2025-01 specifies that the requirements are effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual periods beginning after December 15, 2027; early adoption is permitted. The adoption of ASU 2025-01 will not have a material effect on the Company's financial statements.

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendments in this update enhance the transparency and decision usefulness of income tax disclosures, primarily by requiring more detailed information about a reporting entity's effective tax rate reconciliation and income taxes paid.

The standard requires public business entities to disclose, on an annual basis, a tabular rate reconciliation using both percentages and reporting currency amounts, with specific categories and additional detail for reconciling items that meet a quantitative threshold. The amendments also require disclosure of income taxes paid, disaggregated by federal (national), state, and foreign jurisdictions, as well as by individual jurisdictions that are significant.

ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied on a prospective basis; however, retrospective application is permitted.

The Company has adopted ASU 2023-09 on its consolidated financial statements and related disclosures on a prospective basis.

**NOTE 3 – MARKETABLE SECURITIES AND INVESTMENTS**

The estimated fair market values of investments in securities at December 31, 2025 and 2024 are as follows

---

| | | | |
|:---|:---|:---|:---|
|  | Cost | Gross Unrealized<br> Gains/Loss | 2025 Estimated<br> Fair Value |
| Equity Securities | $1856 | $– $| 1856 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | Cost | Gross Unrealized<br> Gains/Loss | 2024 Estimated Fair<br> Value |
| Equity Securities | $1856 | $– $| 1856 |

---

Income loss from stock and warrant investments for 2025 consists of the following:

---

| | |
|:---|:---|
|  | 2024 |
| Interest and dividends | $— |
| Realized and unrealized losses on investments | 860318 |
| Total Loss | $860318 |

---

---

| | |
|:---|:---|
|  | 2025 |
| Interest and dividends | $— |
| Realized and unrealized losses on investments | 2603038 |
| Total Loss | $2603038 |

---

**NOTE 4 – PROPERTY AND EQUIPMENT**

As of December 31, 2025 and December 31, 2024, property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | December 31, 2025 | December 31, 2024 |
| Computer equipment | $194768 | $183063 |
| Software | 3753 | 3753 |
| Total property and equipment | 198521 | 186816 |
| &nbsp;&nbsp;Accumulated depreciation | (73308) | (60118) |
| Total property and equipment, net of depreciation | $125213 | $126698 |

---

Depreciation expense for the year ended December 31, 2025 and 2024 was $13,191 and $15,303, respectively.

**NOTE 5 – INTANGIBLE ASSETS**

*Intangibles – Seedinvest*

On May 5, 2023, StartEngine Crowdfunding, Inc. ("StartEngine") completed its purchase of substantially all of the assets of the SeedInvest business. This agreement specifically does not include the registered broker-dealer or the Alternative Trading System ("ATS") belonging to SeedInvest. The total consideration for the purchase is 19,200,000 shares of StartEngine's common stock, which based on StartEngine's previous Regulation A offering price of $1.25 per share would be valued at $24 million. The acquisition included intellectual property including the customer list of SI Securities as well as other digital assets.

The Company adheres to the provisions of ASC 350 – Intangibles – Goodwill and Other concerning the valuation and presentation of intangible assets. The Company determined the useful life of 7 years for the purchased assets based on historical investment data for users of the StartEngine platform. In 2023, the Company received investments from users with accounts created from 2015-2023 and have seen a continuation of that trend in to 2024. As the Company continues to provide new offerings and work on outreach to users, we believe that this purchase will maintain its useful life for the duration. This amortization began in Q3 2023 and continue until the end of Q2 2030.

As part of the acquisition of the SeedInvest business, the Company acquired a significant intangible asset in the form of a customer list. At the time of acquisition, the Company determined the fair value of the acquired assets, noting that approximately 100% of the gross assets acquired was concentrated in the customer list. The value of intellectual property and various immaterial contracts with vendors was deemed insignificant, and no fair value was assigned to those assets. All contracts have since been canceled, and the SeedInvest webpage and domain are solely used as a redirect to the Company's site, where users must set up new accounts with the Company. The acquisition did not include any fixed assets, vehicles, equipment, machinery, tools, furnishings, computer hardware, or fixtures.

In accordance with the guidance in FASB ASC 350-30-35-14, the Company evaluates the customer list for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. If the carrying amount exceeds the fair value, an impairment loss is recognized in an amount equal to that excess.

The Company considers various factors that may indicate impairment of the customer list, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· Declines in customer retention rates.

&nbsp;&nbsp;&nbsp;&nbsp;· Reductions in revenue per customer.

&nbsp;&nbsp;&nbsp;&nbsp;· Changes in market conditions affecting the value of the customer relationships.

&nbsp;&nbsp;&nbsp;&nbsp;· Strategic shifts that alter the utility of the acquired customer list.

Based on the impact of investment from investors who joined the Company network via this acquisition we determined there was no impairment at December 31, 2025.

As of December 31, 2025 and 2024, the net carrying amount of the purchase was $15,035,049 and $18,463,620, respectively. Accumulated amortization as of December 31, 2025 and 2024 is $9,105,991 and $5,657,420, respectively. The amortization for the five succeeding fiscal years and thereafter is as follows:

---

| | |
|:---|:---|
| 2026 | 3428572 |
| 2027 | 3428572 |
| 2028 | 3428572 |
| 2029 | 3428572 |
| 2030 | 1320761 |
| Total | 15035049 |

---

**NOTE 6 – COMMITMENTS AND CONTINGENCIES**

The Company is currently not involved with and does not know of any pending or threatening litigation against the Company or any of its officers.

**NOTE 7 – STOCKHOLDERS' EQUITY**

*Preferred Stock*

As of December 31, 2025, the Company has authorized the issuance of 519,000,000 shares of our preferred stock with par value of $0.00001. Of these authorized shares, 207,000,000 are designated as Series A, 99,000,000 are designated as Series T, and 213,000,000 are designated as Series Seed.

*Series A Preferred Stock*

The Series A has liquidation priority over the Series Seed and common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series A shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment is made to Series Seed or common stock, liquidation distributions, which will be paid ratably with the Series T in proportion to its respective liquidation preference. Holders of Series A will receive an amount equal to $0.0286 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of the Series A and Series T ratably in proportion to the full preferential amounts for which they are entitled. The Series A votes on an as-converted basis. The Series A is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series A is automatically convertible into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, coverts the offer and sale of common stock at an offering price of not less than $0.1430 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series A has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments. As of December 31, 2025, there are 21,559,120 remaining shares available for issuance.

*Series T Preferred Stock*

The Series T have liquidation priority over the Series Seed and common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series T shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, before any payment is made to Series Seed or common stock, liquidation distributions, which will be paid ratably with the Series A in proportion to its respective liquidation preference. Holders of Series T will receive an amount equal to $0.1465 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of the Series A and Series T ratably in proportion to the full preferential amounts for which they are entitled. The Series T votes on an as-converted basis. The Series T is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series T is automatically convertible into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, coverts the offer and sale of common stock at an offering price of not less than $0.1465 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series T has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments. As of December 31, 2025, there are 89,357,920 remaining shares available for issuance.

*Series Seed Preferred stock*

The Series Seed have liquidation priority over the common stock. In the event of the liquidation, dissolution or winding up of the Company, the Series Seed shall be entitled to receive, out of the assets of the Company available for distribution to its stockholders, after any payment made to Series A and Series T, but before any payment is made to the Company's common stock, an amount equal to $0.0083 per share, as adjusted, plus all declared and unpaid dividends thereon to the date fixed for such distribution. If upon such event the assets of the Company legally available for distribution are insufficient to permit payment of the full preferential amount, the entire assets available for distribution to stockholders shall be distributed to the holders of Series A and Series T first, then ratably in proportion to the full preferential amounts for which they are entitled to the Series Seed. The Series Seed votes on an as-converted basis. The Series Seed is convertible by the holder at any time after issuance at the conversion price, which equates to a one-to-one basis for common stock. The Series Seed is automatically converted into common stock upon the earlier of 1) the vote or written consent of at least a majority of the voting power represented by the then outstanding shares of preferred stock or 2) the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, converts the offer and sale of common stock at an offering price of not less than $0.1430 per share, as adjusted, with aggregate gross proceeds to the Company of not less than $15,000,000. In addition, the Series Seed has various anti-dilution provisions which take into account future sales and issuances of common stock and other dilutive instruments. As of December 31, 2025, there are 8,227,060 remaining shares available for issuance.

The following table summarizes the designation, shares authorized, and shares outstanding for the Company's Preferred Stock:

---

| | | | |
|:---|:---|:---|:---|
| <br>**Preferred Stock Series Designation** | **Preferred Shares**<br>**Authorized** | **Preferred Shares**<br>**Outstanding** | **Potentially Issuable**<br>**Preferred Shares** |
| Series Seed | 213000000 | 204772940 | 8227060 |
| Series A | 207000000 | 185440880 | 21559120 |
| Series T | 99000000 | 9642080 | 89357920 |

---

*Common Stock*

As of December 31, 2025 we had authorized the issuance of 1,580,000,000 shares of our common stock with par value of $0.00001.

During the year ended December 31, 2025, the Company sold 11,576,675 shares of common stock through its Regulation A offering for gross proceeds of $13,468,422 and incurred offering costs of $10,307,175.

During the year ended December 31, 2024, the Company sold 2,362, 1730 shares of common stock through its Regulation A offering for gross proceeds of $2,553,913 and incurred offering costs of $339,997.

*Stock Options*

The 2025 Equity Incentive Plan (the "2025 Plan") was adopted by the Board April 15, 2025. The 2025 Plan provides for the grant of awards to eligible employees, directors, consultants, independent contractors, and advisors in the form of Stock Options, Stock Appreciation Rights ("SARs"), Stock Awards, Restricted Stock and Stock Units, and stock or cash-based bonuses, (each, an "award" and collectively, "awards"). The number of shares authorized for issuance under the 2025 Plan is 80,000,000.

In 2015, our Board of Directors adopted the StartEngine Crowdfunding, Inc. 2015 Equity Incentive Plan (the "2015 Plan"). The 2015 Plan provides for the grant of equity awards to employees, and consultants, including stock options, stock purchase rights and restricted stock units to purchase shares of our common stock. Up to 231,800,000 shares of our common stock may be issued pursuant to awards granted under the 2015 Plan. The 2015 Plan is administered by our Board of Directors, and expires ten years after adoption, unless terminated earlier by the Board.

The Company valued options granted under the 2015 Plan under ASC 718 using the Black-Scholes pricing model. The granted options in 2025 and 2024 have exercise prices of $1.60, $1.38 and $1.25, generally vest over four years and expire in ten years. The stock options granted during the year ended December 31, 2025 and 2024 were valued using the Black-Scholes pricing model using the range of inputs as indicated below:

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| Expected life (years) | 3.25 - 6.5 | 6.5 |
| Risk-free interest rate | 3.8 - 4.4% | 4.0 -4.6% |
| Expected volatility | 42.5 - 53.3% | 39.5 - 45.7% |
| Annual dividend yield | 0% | 0% |

---

The risk-free interest rate assumption for options granted is based upon observed interest rates on the United States government securities appropriate for the expected term of the Company's employee stock options.

The expected term of employee stock options is calculated using the simplified method which takes into consideration the contractual life and vesting terms of the options.

The Company determined the expected volatility assumption for options granted using the historical volatility of comparable public Company's common stock. The Company will continue to monitor peer companies and other relevant factors used to measure expected volatility for future stock option grants, until such time that the Company's common stock has enough market history to use historical volatility.

The dividend yield assumption for options granted is based on the Company's history and expectation of dividend payouts. The Company has never declared or paid any cash dividends on its common stock, and the Company does not anticipate paying any cash dividends in the foreseeable future.

The Company currently recognizes option forfeitures as they occur as there is insufficient historical data to accurately determine future forfeiture rates. A summary of the Company's stock option activity and related information is as follows

A summary of the Company's stock option activity and related information is as follows.

---

| | | | |
|:---|:---|:---|:---|
|  |<br><br>**Number of**<br>**Shares** |<br>**Weighted**<br>**Average**<br>**Exercise**<br>**Price** | **Weighted**<br>**average**<br>**Remaining**<br>**Contractual**<br>**Term** |
| Outstanding at December 31, 2023 | 185581380 | $0.11 | 6.50 |
| Granted | 22930000 | 1.25 |  |
| Exercised | (3413447) | 0.00 |  |
| Expired/Cancelled | (21966455) | 0.00 |  |
| Outstanding at December 31, 2024 | 183131478 | $0.20 | 6.50 |
| Granted | 13130000 | 1.27 |  |
| Exercised | (31349417) | 0.02 |  |
| Expired/Cancelled | (6083838) | 1.06 |  |
| Outstanding at December 31, 2025 | 158828223 | $0.59 | 4.85 |
| Exercisable at December 31, 2025 | 123335521 | $0.40 | 6.50 |
| Vested and expected to vest at December 31, 2025 | 158828223 | $0.59 | 4.85 |

---

The weighted average grant date fair values of options granted during the years ended December 31, 2025 and 2024 were $1.25 and $1.27 per option, respectively. The Company's fair market value is based on the offering price in its Regulation A offerings at the time of grant. During the years ended December 31, 2025 and 2024, employees exercised their vested options to purchase 31,349,417 and 3,413,447 shares of common stock, and the Company received aggregate exercise proceeds of $630,633 and $44,675, respectively. The intrinsic value of the options exercised was $9,267,232 and $3,342,171 during the year ended December 31, 2025 and 2024, respectively.

Stock option expense for the years ended December 31, 2025 and 2024 was $9,041,054 and $11,280,017, respectively, and are included within the consolidated statements of operations as follows:

---

| | | |
|:---|:---|:---|
|  | Year Ended December 31, | Year Ended December 31, |
|  | 2025 | 2024 |
| Cost of revenues | $1011972 | $1380541 |
| General and administrative | 1920507 | 1767907 |
| Sales and marketing | 4529475 | 5606322 |
| Research and development | 1579100 | 2525247 |
| Total | $9041054 | $11280017 |

---

At December 31, 2025, the total compensation cost related to nonvested awards not yet recognized was approximately $18,539,725 and the weighted-average period over which the total compensation cost related to nonvested awards not yet recognized is expected to be recognized is 2.74 years.

**NOTE 8 – INCOME TAXES**

The provision for income tax expense (benefit) consists of the following:

---

| |
|:---|
| Current income tax expense (benefit) |
| Deferred income tax expense (benefit) |
| Total income tax expense (benefit) |

---

Effective Rate Reconciliation:

Pre-Tax income (loss)   <u>1,567,458</u>

The U.S. Federal Statutory Tax Rate for 2024 is 21%. The reconciliation of the expected income tax expense (benefit)

and the actual income tax expense (benefit) is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2024** | **2024** |
| Expected Federal income tax expense (benefit) | 329166 | 21.00% | (3618587) | 22.10% |
| State income tax expense (benefit) | 109722 | 7.00% | (1206196) | 7.37% |
| Stock option compensation | 3004309 | 191.67% | 4278405 | (26.13)% |
| Section 162(m) Limitation | (246015) | (15.70)% | (980000) | 5.98% |
| Other permanent differences | 3924 | 0.25% | 1047 | (0.01)% |
| Prior Year True-Up Adjustments | (1631306) | (104.07)% | (5135090) | 31.36% |
| Change in Valuation Allowance | (1569800) | (100.15)% | 6660421 | (40.67)% |
| Total income tax expense (benefit) | - |  | - |  |

---

The Company has U.S. Federal net operating loss (NOL) carryovers of $12,405,481. Under the Tax Cuts and Jobs Act (TCJA), Federal NOL's incurred in taxable years beginning in 2018 and later have an indefinite carryforward period, but the use of the NOL carryover is limited to 80% of taxable income in the subsequent year. Federal NOL Carryovers incurred prior to 2018 expire after 20 years. The Company has $2,017,492 of Federal NOL carryovers incurred prior to 2018 which begin to expire in 2036. The Company has NOL carryovers in California of $25,502,428 which begin to expire in 2034. NOL carryovers and capital loss carryovers are a benefit to the Company in the form of future tax savings and such carryovers are recorded as deferred tax assets, subject to a valuation allowance.

The Company incurred $94,606 in tax expense in 2025 in relation to franchise tax fees and entity fees within the state of Delaware and California, respectively. This amount is shown on the Statement of Operations as Taxes – Other.

Net deferred income tax assets (liabilities) are comprised of the following:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Deferred tax assets (liabilities) |  |  |
| Net Operating Loss Carryovers | 4390321 | 5924165 |
| Credit Carryovers | 3883221 | 3518227 |
| Capitalized Research and Development | 2001375 | 2405729 |
| Reserves and Allowances | 1862 |  |
| Capital Loss Carryover | 20730 | 21557 |
| Depreciation | 416 | (1953) |
| Deferred Tax Assets | 10297925 | 11867725 |
| Less: Valuation Allowance | (10297925) | (11867725) |
| Net Deferred Tax Assets | - | - |

---

**NOTE 9 – RELATED PARTY TRANSACTIONS**

The Company is currently owed $180,610 from StartEngine Collectibles LLC in relation to the fees associated with initiating and selling collectible assets since the inception of the fund. Additionally, the Company is owed $28,750 from StartEngine Loans, LLC, who incurred entity startup and legal costs for the Company during its startup, in relation to legal fees for creating the entity. The Company invested $37,000 in S.A. StartEngine, a European entity for international offerings. Finally, the Company owes StartEngine REIT LLC, who owned the apartment building the Company had an interest in until its sale in 2025, $12,470 related to fees for selling an apartment building the Company sold in 2025. All of these entities are under common ownership with the Company.

The Company has an outstanding balance of $432,925 owed to selling shareholders from disbursements related to its OWN equity raise as of December 31, 2025.

The Company retained American Incline LLC for consulting services in 2025. Ronald Miller, a co-founder and executive chairman of StartEngine is a registered agent at American Incline. The Company paid $119,829 to American Incline in 2025.

The Company offers accredited investors the opportunity to purchase membership interests in investment vehicles known as "SE Funds", which are Series LLCs of StartEngine Private LLC which hold single portfolio companies, and StartEngine Private Funds LLC which hold multiple portfolio companies, through its StartEngine Private product offering. These SE Funds invest in shares of venture capital-backed, late-stage private companies ("underlying securities"). During the year ended 2025, the Company purchased $71,537,246 of Private investments and has a balance of $37,300 in Accounts Payable at year end. The SE Funds are managed by StartEngine Private Manager LLC and advised by StartEngine Adviser LLC.

StartEngine Primary LLC, a wholly-owned, FINRA-member and SEC-registered broker-dealer subsidiary of the Company, markets offerings of SE Fund membership interests to accredited investors. These offerings are conducted pursuant to exemptions from registration under Section 4(a)(2) of the Securities Act of 1933 and Regulation D promulgated thereunder. The Company generates revenue from the sale of underlying securities to SE Funds and recognizes such amounts as StartEngine Private revenue. This revenue can be found on the table in Note 2, as a major component of the Company's revenues.

The Company records the acquisition cost of these securities as cost of revenue. Accordingly, transactions between the Company and the SE Funds, including the sale of securities to such affiliated investment vehicles, constitute related party transactions.

**NOTE 10 – SUBSEQUENT EVENTS**

The Company has evaluated subsequent events that occurred after December 31, 2025.

On March 17, 2026, StartEngine Crowdfunding, Inc. (the "StartEngine" or "Company") entered into an Agreement and Plan of Reorganization (the "Merger Agreement") with Vinovest, Inc., a privately-held company located in West Hollywood, California ("Vinovest"), Project Vineyard Acquisition Inc., a wholly-owned subsidiary of StartEngine ("Merger Sub"), Andrew Zhang, solely in his capacity as the representative, agent and attorney-in-fact of the Participating Stockholders (the "Stockholders' Representative"), and the Participating Stockholders of Vinovest. The "Participating Stockholders" includes holders of Vinovest's preferred stock, SAFE notes and common stock.

Pursuant to the Merger Agreement, StartEngine acquired Vinovest in a transaction in which Merger Sub merged with and into Vinovest, with Vinovest becoming a wholly-owned subsidiary of StartEngine (the "Merger"). Vinovest is a platform for fine wine and whisky investment.

Pursuant to the Merger Agreement, StartEngine will issue an aggregate of 8,750,000 shares of Common Stock of StartEngine at a price per share of $1.60 to the Participating Stockholders of which 1,750,000 shares are held back for potential indemnification obligations and if not needed will be released to the Participating Shareholders on the 12-month anniversary of the closing. Any such held-back shares not required to satisfy such contingencies will be released to the Participating Stockholders on the 12-month anniversary of the closing.

The total value of the transaction was $14,000,000.00.

Through the issueance date, the Comppany granted employees 12,410,000 options as part of its compensation plan. These shares were all granted at a $1.60 strike price with board consent on February 27, 2026.

Except for those stated above, management as evaluated subsequent events through the date the financials were available to be issued and noted no additional subsequent events.

**EXHIBITS**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Exhibit**<br> **Number** | &nbsp;&nbsp;**Exhibit<br> Description** | &nbsp;&nbsp;**Form** | **File No.** | &nbsp;&nbsp;**Exhibit** | &nbsp;&nbsp;**Filing Date** | &nbsp;&nbsp;**Filed<br> Herewith** |
| &nbsp;&nbsp;[2.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) | &nbsp;&nbsp;[Seventh Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) | &nbsp;&nbsp;[8-K](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) | &nbsp;&nbsp;[3.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) | &nbsp;&nbsp;[May 10, 2024](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-1.htm) |  |
| &nbsp;&nbsp;[2.2](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) | &nbsp;&nbsp;[Second Amended and Restated Bylaws](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) | &nbsp;&nbsp;[8-K](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) | &nbsp;&nbsp;[3.2](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) | &nbsp;&nbsp;[May 10, 2024](https://www.sec.gov/Archives/edgar/data/1661779/000110465924059746/tm2413944d1_ex3-2.htm) |  |
| &nbsp;&nbsp;[2.3](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) | &nbsp;&nbsp;[Certificate of Amendment](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) | &nbsp;&nbsp;[8-K](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) | &nbsp;&nbsp;[3.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) | &nbsp;&nbsp;[June 15, 2026](https://www.sec.gov/Archives/edgar/data/1661779/000110465926075194/tm2618184d1_ex3-1.htm) |  |
| &nbsp;&nbsp;[3.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) | &nbsp;&nbsp;[Second Amended and Restated Investors' Rights Agreement](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) | &nbsp;&nbsp;[1-A](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) | [024-11177](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) | &nbsp;&nbsp;[3.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) | &nbsp;&nbsp;[March 12, 2020](https://www.sec.gov/Archives/edgar/data/1661779/000110465920032597/tm2012060d1_ex3-1.htm) |  |
| &nbsp;&nbsp;[3.2](tm2618104d1_ex3-2.htm) | &nbsp;&nbsp;[Form of Irrevocable Power of Attorney](tm2618104d1_ex3-2.htm) |  |  |  |  | &nbsp;&nbsp;[X](tm2618104d1_ex3-2.htm) |
| &nbsp;&nbsp;[4.1](tm2618104d1_ex4-1.htm) | &nbsp;&nbsp;[Form of Common Stock Subscription Agreement](tm2618104d1_ex4-1.htm) |  |  |  |  | &nbsp;&nbsp;[X](tm2618104d1_ex4-1.htm) |
| &nbsp;&nbsp;[6.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) | &nbsp;&nbsp;[Amended and Restated 2015 Equity Incentive Plan](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) | &nbsp;&nbsp;[1-A](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) | [024-11806](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) | &nbsp;&nbsp;[6.1](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) | &nbsp;&nbsp;[February 13, 2023](https://www.sec.gov/Archives/edgar/data/1661779/000110465923019873/tm236154d1_ex6-1.htm) |  |
| &nbsp;&nbsp;[6.2\*](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) | &nbsp;&nbsp;[Employment Agreement effective as of January 1, 2024 (Howard Marks)](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) | &nbsp;&nbsp;[10-K](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) | &nbsp;&nbsp;[10.2](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) | &nbsp;&nbsp;[April 15, 2024](https://www.sec.gov/Archives/edgar/data/1661779/000155837024005129/tmb-20231231xex10d2.htm) |  |
| &nbsp;&nbsp;[6.3](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) | &nbsp;&nbsp;[Asset Purchase Agreement](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) | &nbsp;&nbsp;[8-K](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) | &nbsp;&nbsp;[99.2](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) | &nbsp;&nbsp;[November 28, 2022](https://www.sec.gov/Archives/edgar/data/1661779/000110465922122400/tm2231329d1_ex99-2.htm) |  |
| &nbsp;&nbsp;[6.4](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) | &nbsp;&nbsp;[2025 Equity Incentive Plan](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) | &nbsp;&nbsp;[10-Q](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) | [000-56415](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) | &nbsp;&nbsp;[10.4](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) | &nbsp;&nbsp;[May 15, 2025](http://www.sec.gov/Archives/edgar/data/1661779/000155837025007905/stgc-20250331xex10d4.htm) |  |
| &nbsp;&nbsp;[6.5](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) | &nbsp;&nbsp;[Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) | &nbsp;&nbsp;[10-Q](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) | [000-56415](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) | &nbsp;&nbsp;[19.1](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) | &nbsp;&nbsp;[August 6, 2025](https://www.sec.gov/Archives/edgar/data/1661779/000155837025010454/stgc-20250630xex19d1.htm) |  |
| &nbsp;&nbsp;[6.6](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) | &nbsp;&nbsp;[Merger Agreement dated March 17, 2026](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) | &nbsp;&nbsp;[8-K](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) | [000-56415](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) | &nbsp;&nbsp;[10.1](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) | &nbsp;&nbsp;[March 23, 2026](http://www.sec.gov/Archives/edgar/data/1661779/000110465926033376/tm269376d1_ex10-1.htm) |  |
| &nbsp;&nbsp;[8.1](tm2618104d1_ex8-1.htm) | &nbsp;&nbsp;[Escrow Agreement for Securities Offering^](tm2618104d1_ex8-1.htm) |  |  |  |  | &nbsp;&nbsp;[X](tm2618104d1_ex8-1.htm) |
| &nbsp;&nbsp;[11.1](tm2618104d1_ex11-1.htm) | &nbsp;&nbsp;[Consent of Haynie & Company](tm2618104d1_ex11-1.htm) |  |  |  |  | &nbsp;&nbsp;[X](tm2618104d1_ex11-1.htm) |
| &nbsp;&nbsp;12.1 | &nbsp;&nbsp;Attorney opinion on the legality of the offering+ |  |  |  |  |  |
| &nbsp;&nbsp;13.1 | &nbsp;&nbsp;"Test the waters" materials+ |  |  |  |  |  |

---

\* Portions of this exhibit have been omitted. <br> + To be filed by amendment. <br> ^ In accordance with Part III – Item 17 (6) of Form 1-A, the Company has excluded schedules and similar attachments.

**SIGNATURE**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Burbank, California on June 23, 2026.

---

| | |
|:---|:---|
| **StartEngine Inc.** | **StartEngine Inc.** |
| By: | /s/ Howard Marks |
| Name: | Howard Marks |
| Title: | CEO |

---

This Offering Statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title(s)** | **Date** |
| */s/ Howard Marks* | Chief Executive Officer and Director | June 23, 2026 |
| Howard Marks |  |  |
| */s/ Ronald Miller* | Chairman and Director | June 23, 2026 |
| Ronald Miller |  |  |
| */s/ Hunter Strassman* | Chief Financial Officer and Principal Accounting Officer | June 23, 2026 |
| Hunter Strassman |  |  |

---

## Ex1A-3

**Exhibit 3.2**

<u>IRREVOCABLE POWER OF ATTORNEY</u>

by and among

and

[\*] and [\*] as Attorneys-in-Fact,

and

StartEngine Inc. (a Delaware corporation)

**IRREVOCABLE POWER OF ATTORNEY**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The undersigned stockholder (the "Selling Stockholder") of StartEngine Inc., a Delaware corporation (the "Company") wishes to offer shares of Common Stock of the Company ("Shares") for sale pursuant to the Offering pursuant to which the Selling Stockholder will seek to sell the respective number of shares of Common Stock, par value $0.00001 per share, of the Company (the "Common Stock"), or such number of shares of Common Stock issuable upon conversion of shares of the Company's Series Seed Preferred Stock, par value $0.00001 per share (the "Series Seed Preferred Stock"), or such number of shares of Common Stock issuable upon conversion of shares of the Company's Series Seed A Preferred Stock, par value $0.00001 per share (the "Series A Preferred Stock", and collectively with the Series Seed Preferred Stock, the "Preferred Stock"), or such number of shares of Common Stock issuable upon exercise of options for the purchase of Common Stock ("Options"), as set forth in Exhibit A attached hereto (the "Offered Shares").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The Selling Stockholder understands that the Company has filed with the Securities and Exchange Commission (the "Commission") an Offering Statement on Form 1-A (File No. 024-[_______]) (the "Offering Statement") under Regulation A of the Securities Act of 1933, as amended (the "Securities Act") in connection with the offering (the "Offering") of shares of its Common Stock by the Company and the selling stockholders. The Selling Stockholder has elected to sell the Offered Shares in the Offering if the Offering is completed. Accordingly, the Offering will be qualified under the Securities Act, covering the Offered Shares to be sold by the Selling Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The Company may undertake one or more closings ("Closings") in respect of the Offering on an ongoing basis. At each Closing 70% of the shares sold to investors ("Investors") in the Offering will be newly issued shares sold by the Company and 30% will be shares sold by selling stockholders on a pro rata basis until all the shares offered by the Company and the selling stockholders have been sold. After each Closing, funds tendered by Investors will be available to the Company and the selling stockholders including the Selling Stockholder in their pro rata amount. For the avoidance of doubt, with respect to the Selling Stockholder, "pro rata basis" means that portion that the Selling Stockholder may sell of the total shares being offered by all selling stockholders in the Offering expressed as a percentage where the numerator is the total number of shares being offered by the Selling Stockholder divided by the total number of shares being offered by all selling stockholders as set forth in the Offering Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Selling Stockholder, by executing and delivering this Irrevocable Power of Attorney (this "Agreement"), confirms the Selling Stockholder's willingness and intent to sell the Offered Shares in the Offering if it is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. It is understood that if the Selling Stockholder holds shares of Preferred Stock, that all references herein to the Offered Shares shall mean such number of shares of Common Stock after giving effect to the conversion of the Preferred Stock into shares of Common Stock ("Conversion") immediately prior to a Closing. It is further understood that if the Selling Stockholder holds options for the purchase of shares of Common Stock, that all references herein to the Offered Shares shall mean such number of shares of Common Stock issued upon exercise of Options and payment in full to the Company of consideration due for shares of Common Stock ("Option Exercise") immediately prior to a Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The Selling Stockholder hereby acknowledges receipt in electronic format of (i) a form of the subscription agreement to be executed by Investors and the Company, and (ii) the Offering Statement as originally filed and all amendments thereto, including a copy of the Preliminary Offering Circular, to be used in connection with the Offering. The Selling Stockholder understands that the subscription agreement is subject to revision before execution, with such changes as the Attorneys-in-Fact or any of them deems appropriate (including with respect to the Securities Act and is subject to amendment.

**NOW THEREFORE** to induce the Company to enter into the subscription agreement and to secure its performance, the Selling Stockholder agrees as follows:

1. <u>Appointment of Attorneys-in-Fact; Grant of Authority</u>. For purposes of effecting the sale of the Offered Shares pursuant to the Offering, the Selling Stockholder irrevocably makes, constitutes and appoints [\*] and [\*], and each of them, true and lawful agents and attorneys-in-act of the Selling Stockholder (each, an "Attorney-in-Fact" and, collectively, the "Attorneys-in-Fact"), with full power and authority, subject to the terms and provisions hereof, to act hereunder, or through a duly appointed successor attorneys-in-fact (it being understood that each Attorney-in-Fact shall have full power to make and substitute any executive officer or director of the Company or a lawyer employed by the Company in the place and stead of such Attorney-in-Fact (or, in the event of the death, disability or incapacity of the Attorney-in-Fact, any remaining Attorney-in-Fact may appoint a substitute therefor), and the Selling Stockholder hereby ratifies and confirms all that each Attorney-in-Fact or successor attorney-in-fact shall do pursuant to this Agreement), in his, her or their sole discretion (it being understood and agreed that the Attorneys-in-Fact may, unless otherwise specified herein, act individually), all as hereinafter provided, in the name of and for and on behalf of the Selling Stockholder, as fully as could the Selling Stockholder if present and acting in person, with respect to the following matters in connection with and necessary and incident to the qualification and sale of the Selling Stockholder's Shares in the Offering:

(a) to authorize and direct the Company, the Company's escrow agent described in the Offering Statement ("Escrow Agent"), and the Company's transfer agent ("Transfer Agent"), StartEngine Secure LLC, and any other person or entity to take any and all actions as may be necessary or deemed to be advisable by the Attorneys-in-Fact or any of them to effect the sale, transfer and disposition of any or all of the Selling Stockholder's Offered Shares in the Offering as the Attorneys-in-Fact or any of them may, in their sole discretion, determine, including:

&nbsp;&nbsp;&nbsp;&nbsp;(i) to direct the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if the Selling Stockholder owns shares of Preferred Stock, to effect a Conversion, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) if the Selling Stockholder owns Options, to complete an Option Exercise, including receipt of consideration in respect of such Option Exercise, and

&nbsp;&nbsp;&nbsp;&nbsp;(ii) to direct the Company, the Escrow Agent or Transfer Agent with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the transfer on the stock record books of the Company of the Offered Shares in order to effect such sale (including the names in which the Offered Shares are to be issued and the denominations thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the delivery of the Offered Shares to Investors with, if necessary, appropriate stock powers or other instruments of transfer duly endorsed or in blank against receipt by the Company of the purchase price to be paid therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the payment by the Company (which payment may be made out of the proceeds of any sale of the Offered Shares) of the expenses, if any, to be borne by the Selling Stockholder pursuant to the Offering and such other costs and expenses, if any, as are agreed upon by Attorneys-in-Fact or any of them to be borne by the Selling Stockholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the remittance to the Selling Stockholder of the balance of the proceeds from any sale of the Offered Shares.

(b) to prepare, execute and deliver any and all documents (the "Offering Documents") on behalf of the Selling Stockholder with respect to the Offering, with such insertions, changes, additions or deletions therein as the Attorneys-in-Fact or any of them, in his, her or their sole discretion, may determine to be necessary or appropriate (which may include a decrease, but not an increase, in the number of Offered Shares to be sold by the Selling Stockholder), and containing such terms as such Attorneys-in-Fact or any of them, shall determine, including the price per share, the purchase price per share to be paid by Investors, and provisions concerning the Offering, the execution and delivery of such documents by the Attorneys-in-Fact or any of them to be conclusive evidence with respect to his, her or their approval thereof, including the making of all representations and agreements to be made by, and the exercise of all authority thereunder vested in, the Selling Stockholder, and to carry out and comply with each and all of the provisions of the Offering Documents;

(c) to take any and all actions that may be necessary or deemed to be advisable by the Attorneys-in-Fact or any of them with respect to the Offering, including, without limitation, approval of amendments to the Offering Statement or any preliminary offering circular, the execution, acknowledgment and delivery of any certificates, documents, undertakings, representations, agreements and consents, which may be required by the Commission, appropriate authorities of states or other jurisdictions or legal counsel or such certificates, documents, undertakings, representations, agreements and consents as may otherwise be necessary or appropriate in connection with the qualification of the Shares of the Company under the Securities Act or the securities or blue sky laws of the various states or necessary to facilitate sales of the Offered Shares;

(d) to take or cause to be taken any and all further actions, and to execute and deliver, or cause to be executed and delivered, any and all such certificates, instruments, reports, contracts, orders, receipts, notices, requests, applications, consents, undertakings, powers of attorney, instructions, certificates, letters and other writings, including communications to the Commission, documents, stock certificates and share powers and other instruments of transfer and closing as may be required to complete the Offering or as may otherwise be necessary or deemed to be advisable or desirable by the Attorneys-in-Fact or any of them in connection therewith, with such changes or amendments thereto as the Attorneys-in-Fact or any of them may, in his, her or their sole discretion, approve (such approval to be evidenced by their signature thereof), as may be necessary or deemed to be advisable or desirable by the Attorneys-in-Fact or any of them to effectuate, implement and otherwise carry out the transactions contemplated by Offering and this Agreement, or as may be necessary or deemed to be advisable or desirable by the Attorneys-in-Fact or any of them in connection with the qualification of the Shares of the Company, pursuant to the Securities Act or the securities or blue sky laws of the various states, the sale of the Shares to the Investors or the public offering thereof; and

(e) if necessary, to endorse (in blank or otherwise) on behalf of the Selling Stockholder any certificate or certificates representing the Offered Shares that may be issued, whether in connection with the Conversion, the Option Exercise or otherwise, or a stock power or powers attached to such certificate or certificates.

The execution of this Agreement shall not in any manner revoke, in whole or in part, any power of attorney that the Selling Stockholder has previously executed.

2. <u>Sole Authority of Attorneys-in-Fact and the Comp</u>a<u>n</u>y. The Selling Stockholder agrees that each and any Attorney-in-Fact has the sole authority to agree with the Company (including any pricing or similar committee established by the Board of Directors of the Company) upon the price, provided that such price is not less than $1.60 per share or such lower price per share as mandated by the Commission, at which the Shares will be sold to the public under the Offering Statement. The Selling Stockholder further agrees that there shall be no additional payment for Bonus Shares. The Selling Stockholder further agrees that the Company may withdraw the Offering Statement and terminate the Offering in its sole discretion for any reason whatsoever or for no reason, without any liability to the Selling Stockholder.

3. <u>Irrevocabilit</u>y. The Selling Stockholder has conferred and granted the power of attorney and all other authority contained herein for the purpose of completing the Offering and in consideration of the actions of the Company in connection therewith. Therefore, the Selling Stockholder hereby agrees that all power and authority hereby conferred is coupled with an interest and is irrevocable and, to the fullest extent not prohibited by law, shall not be terminated by any act of the Selling Stockholder or by operation of law or by the occurrence of any event whatsoever, including, without limitation, the death, disability, incapacity, revocation, termination, liquidation, dissolution, bankruptcy, dissolution of marital relationship or insolvency of the Selling Stockholder (or if more than one, either or any of them) or any similar event (including, without limiting the foregoing, the termination of any trust or estate for which the Selling Stockholder is acting as a fiduciary or fiduciaries, the death or incapacity of one or more trustees, guardians, executors or administrators under such trust or estate, or the dissolution or liquidation of any corporation, partnership or other entity). If, after the execution of this Agreement, any such event shall occur before the completion of the transactions contemplated by the subscription agreement and/or this Agreement, the Attorneys-in-Fact, the Company and the Transfer Agent and Escrow Agent are nevertheless authorized and directed to complete all of such transactions, including the delivery of the Selling Stockholder's Shares to be sold to Investors, as if such event had not occurred and regardless of notice thereof.

4. <u>Representations, Warranties and Agreements</u>. The Selling Stockholder represents and warrants to the Company that the following representations and warranties are true and complete in all material respects as of the date hereof, as of the date of qualification of the Offering Statement by the Commission, and as of each Closing in which the Selling Stockholder participates, except as otherwise indicated. For purposes of this Agreement, an individual shall be deemed to have "knowledge" of a particular fact or other matter if such individual is actually aware of such fact. An entity will be deemed to have "knowledge" of a particular fact or other matter if one of such entity's current officers, directors, managing member or any officer or director thereof, general partner or any officer or director thereof, or similar person of authority with respect to such Selling Stockholder has, or at any time had, actual knowledge of such fact or other matter:

(a) Authorization of Agreement. Selling Stockholder has all necessary power and authority, including corporate under all applicable provisions of law to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement is a valid and binding obligation of Selling Stockholder, enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights, (ii) as limited by general principles of equity that restrict the availability of equitable remedies, and (iii) to the extent the indemnification provisions contained herein may be limited by federal or state securities laws.

(b) Title to the Shares. Upon taking all actions necessary, if any, as contemplated in this Agreement, Selling Stockholder is the lawful owner of the Offered Shares, with good and marketable title thereto, and the Selling Stockholder has the absolute right to sell, assign, convey, transfer and deliver such Offered Shares and any and all rights and benefits incident to the ownership thereof, all of which rights and benefits are transferable by the Selling Stockholder to Investors, free and clear of all the following (collectively called "Claims") of any nature whatsoever: security interests, liens, pledges, claims (pending or threatened), charges, escrows, encumbrances, lock-up arrangements, options, rights of first offer or refusal, community property rights, mortgages, indentures, security agreements or other agreements, arrangements, contracts, commitments, understandings or obligations, whether written or oral and whether or not relating in any way to credit or the borrowing of money. Delivery to Investors of such Offered Shares, upon payment therefor, will (i) pass good and marketable title to such Offered Shares to the relevant Investor(s), free and clear of all Claims, and (ii) convey, free and clear of all Claims, any and all rights and benefits incident to the ownership of such Offered Shares.

(c) No Filings. No order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Selling Stockholder in connection with the acceptance, delivery and performance by the Selling Stockholder of this Agreement or the sale and delivery of the Offered Shares of such Selling Stockholder being sold in the Offering, except (i) for such filings as may be required under Regulation A of the Securities Act, or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Selling Stockholder to perform its obligations hereunder and the transactions contemplated hereby.

(d) No Litigation. There is no action, suit, proceeding, judgment, claim or investigation pending, or to the knowledge of the Selling Stockholder, threatened against the Selling Stockholder which could reasonably be expected in any manner to challenge or seek to prevent, enjoin, alter or materially delay any of the transactions contemplated by this Agreement.

(b) Non-Public Information. Selling Stockholder is not selling its Shares "on the basis of" (as defined in Rule 10b5-1 of the Exchange Act) any material, non-public information about the Offered Shares or the Company.

(c) Spousal Consent. The Selling Stockholder (if a natural person) has caused his or her spouse to join in and consent to the terms of this Agreement by executing the Consent of Spouse in the form attached hereto as Exhibit B and the Consent of Spouse is incorporated by reference herein or, if such Consent of Spouse is unsigned, the Selling Stockholder (if a natural person) has no spouse or does not reside in a state in which such Consent of Spouse is required by law to be executed.

(d) Subsequent POA. Any subsequent power of attorney executed by the Selling Stockholder will expressly provide that the execution of such power of attorney will not revoke this Agreement.

The foregoing representations, warranties and agreements are for the benefit of and may be relied upon by the Attorneys-in-Fact, the Company, the Transfer Agent, the Escrow Agent and their respective legal counsel.

5. <u>Release</u>. Subject to the provisions of Section 7 hereof, the Selling Stockholder hereby agrees to release and does release each Attorney-in-Fact, the Escrow Agent and Transfer Agent from any and all liabilities, joint or several, to which they may become subject insofar as such liabilities (or action in respect thereof) arise out of or are based upon any action taken or omitted to be taken, including but not limited to not proceeding with the Offering for any reason whatsoever, by the Attorneys-in-Fact or each of them, the Escrow Agent or the Transfer Agent pursuant hereto, except for their gross negligence, willful misconduct or bad faith.

6. <u>Waiver</u>. Subject to the provision of Section 7 hereof, the Selling Stockholder acknowledges and agrees that, by accepting payment for the Offered Shares purchased by Investors the Selling Stockholder forever releases and discharges the Company and its heirs, successors and assigns from any and all claims whatsoever that the Selling Stockholder now has, or may have in the future, arising out of, or related to the Offered Shares.

7. <u>Indemnification</u>.

(a) The Selling Stockholder agrees to indemnify and hold harmless each Attorney-in-Fact, the Escrow Agent, and the Transfer Agent and their respective officers, agents, successors, assigns and personal representatives with respect to any act or omission of or by any of them in good faith in connection with any and all matters contemplated by this Agreement.

(b) Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve such indemnifying party from any liability hereunder to the extent it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability that it may have otherwise than on account of this indemnity agreement. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for all indemnified parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any judgment with respect to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification could be sought under this Section 7 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party.

8. <u>Termination</u>. This Agreement shall terminate upon the earliest to occur of:

(a) the date, if any, on which the Offering Statement is withdrawn from the Commission; and

(b) the date on which the final Closing (to be determined in sole discretion of the Company) in respect of the Offering in which Offered Shares are to be sold is consummated and the proceeds have been distributed to the Selling Stockholder, whether or not all the Offered Shares owned by the Selling Stockholder are sold in the Offering, subject, however, to all lawful action done or performed by the Attorneys-in-Fact and each of them, the Company, the Escrow Agent or Transfer Agent pursuant hereto prior to the termination of this Agreement.

Notwithstanding any such termination, the representations, warranties and covenants of the Selling Stockholder contained herein and the provisions of Sections 5, 6 and 7 hereof shall survive the sale and delivery of the Offered Shares and the termination of this Agreement and remain in full force and effect. Following any termination of this Agreement, the Attorneys-in-Fact, the Company, the Escrow Agent and the Transfer Agent shall have no further responsibilities or liabilities to the Selling Stockholder hereunder except to redeliver to the Selling Stockholder its Offered Shares not sold in the Offering and to distribute to the Selling Stockholder its portion of the net proceeds of the Offering, if any.

9. <u>Notices</u>. Any notice required to be given pursuant to this Agreement shall be deemed given if in writing and delivered in person, or if given by telephone or telegraph if subsequently confirmed by letter:

(a) to [\*] and [\*] as Attorneys-in-Fact, 4100 W Alameda Ave, 3<sup>rd</sup> Floor, Burbank, CA 91505,

(b) to the Company, 4100 W Alameda Ave, 3<sup>rd</sup> Floor, Burbank, CA 91505,

(c) to the Selling Stockholder at the addresses set forth in the stock records of the Company.

10. <u>Applicable Law</u>. The validity, enforceability, interpretation and construction of this Agreement shall be determined in accordance with the substantive laws of the State of Delaware.

11. <u>Binding Effect</u>. All authority herein conferred or agreed to be conferred shall survive the death, disability or incapacity of the Selling Stockholder, and this Agreement shall inure to the benefit of, and shall be binding upon, the Attorneys-in-Fact or any of them, the Selling Stockholder and the Selling Stockholder's heirs, executors, administrators, successors and assigns. The Escrow Agent, the Transfer Agent, the Company and all other persons dealing with the Attorneys-in-Fact or any of them as such may rely and act upon any writing believed in good faith to be signed by the Attorneys-in-Fact or any of them.

12. <u>Recitals.</u> The recitals to this Agreement are incorporated herein by reference and shall be deemed to be a part of this Agreement.

13. <u>Counterparts</u>. This Agreement may be signed in any number of counterparts, each of which constituting an original but all of which together constituting one instrument.

14. <u>Electronic Signature</u>. This Agreement and any other certificates, documents, undertakings, representations, agreements or consents contemplated hereby or delivered in connection herewith, including, without limitation, the subscription agreement, may be executed by an electronic signature or electronic transmission as permitted under applicable law or regulation, and shall be deemed to be written, signed and dated for purposes of execution.

15. <u>Partial Unenforceabilit</u>y. In case any provision in this Agreement shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

**[SIGNATURE PAGE FOLLOWS]**

This Irrevocable Power of Attorney has been entered into as of ________________.

<u>SELLING STOCKHOLDER</u>

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| |
|:---|
| Very truly yours, |
| By: |
| Name: |
| Title: |

---

<u>ATTORNEYS-IN-FACT</u>

[\*] hereby accepts the appointment as Attorney-in-Fact pursuant to the foregoing Irrevocable Power of Attorney and agrees to abide by and act in accordance with the terms of said Agreement.

---

| |
|:---|
| Dated as of _________________ |
| Name: [\*] |

---

[\*] hereby accepts the appointment as Attorney-in-Fact pursuant to the foregoing Irrevocable Power of Attorney and agrees to abide by and act in accordance with the terms of said Agreement.

---

| |
|:---|
| Dated as of _________________ |
| Name: |
| [\*] |

---

<u>STARTENGINE INC.</u>

This Irrevocable Power of Attorney has been entered into as of _______________.

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| |
|:---|
| STARTENGINE INC. |
| By: |
| Name: Howard Marks |
| Title: Chief Executive Officer |

---

**EXHIBIT A**

OFFERED SHARES

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| | | | |
|:---|:---|:---|:---|
| **Selling**<br> **Stockholder** | **Amount Owned Prior to the<br> Offering** | **Amount Offered by Selling<br> Stockholder** | **Amount Owned after the<br> Offering** |
| _________________ | ______________ shares | ________________shares | _______________shares |

---

**<u>Amount Owned of Common Stock</u>**

______________ shares

\*If the above amount Owned of Common Stock is greater than the Amount Offered by Selling Stockholder, then no further options need to be exercised or preferred stock converted to common stock.

For Non Individual Holders:

Please list the names of all beneficial holders<sup>1</sup> of the entity below:

<sup>1</sup> "beneficial owners" is anyone who has sole or shared voting or investment power in respect of the entity. see Rule 13d-3 under the securities exchange act for guidance. <u>https://www.law.cornell.edu/cfr/text/17/240.13d-3</u>

**EXHIBIT B**

CONSENT OF SPOUSE<sup>2</sup>

I confirm that I am the spouse or another person who has a community property or similar interest in the Offered Shares of the Selling Stockholder, I confirm that I have read and understood the terms of the Irrevocable Power of Attorney and I consent to the terms thereof, including the sale of the shares of Common Stock.

---

| |
|:---|
| Dated as of _________________ |
| (Signature of Spouse) |
| Name: |

---

<sup>2</sup> A spouse's consent is recommended only if the Selling Stockholder's state of residence is one of the following community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

## Ex1A-4

**Exhibit 4.1**

**SUBSCRIPTION AGREEMENT**

**THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.** THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING.

**THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS.** ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "SEC"), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO SUBSCRIBER IN CONNECTION WITH THIS OFFERING OVER OUR WEB-BASED PLATFORM (THE "PLATFORM"). ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

**INVESTORS WHO ARE NOT "ACCREDITED INVESTORS" (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 4.** THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH SUBSCRIBER IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY SUBSCRIBER IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT.

**THE OFFERING MATERIALS 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 THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE 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. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

**THE COMPANY MAY NOT BE OFFERING THE SECURITIES IN EVERY STATE.** THE OFFERING MATERIALS DO NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY STATE OR JURISDICTION IN WHICH THE SECURITIES ARE NOT BEING OFFERED.

**THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE.** EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

To: StartEngine Inc.

4100 W Alameda Ave., 3<sup>rd</sup> Floor

Ladies and Gentlemen:

<u>1. Subscription</u>.

(a) The undersigned ("Subscriber") hereby subscribes for and agrees to purchase Common Stock (the "Securities"), of StartEngine Inc., a Delaware Corporation (the "Company"), at a purchase price of $1.60 per share of Common Stock (the "Per Security Price"), upon the terms and conditions set forth herein. The minimum subscription is $500.80. The of the Common Stock are as set forth in the Seventh Amended and Restated Certificate of Incorporation and Bylaws included in the Exhibits to the Offering Statement of the Company filed with the SEC (the "Offering Statement").

(b) Subscriber understands that the Securities are being offered pursuant to an offering circular (the "Offering Circular") filed with the SEC as part of the Offering Statement (SEC File No. [X]), as may be amended from time to time. By executing this Subscription Agreement as provided herein, Subscriber acknowledges that Subscriber has received access to this Subscription Agreement, copies of the Offering Circular and Offering Statement including exhibits thereto and any other information required by the Subscriber to make an investment decision.

(c) The Subscriber's subscription may be accepted or rejected in whole or in part, at any time prior to a Closing Date (as hereinafter defined), by the Company at its sole discretion. Upon the expiration of the period specified in Subscriber's state for notice filings before sales may be made in such state, if any, the subscription agreement may no longer be revoked at the option of the Subscriber. In addition, the Company, at its sole discretion, may allocate to Subscriber only a portion of the number of Securities Subscriber has subscribed for. The Company will notify Subscriber whether this subscription is accepted (whether in whole or in part) or rejected. If Subscriber's subscription is rejected, Subscriber's payment (or portion thereof if partially rejected) will be returned to Subscriber without interest and all of Subscriber's obligations hereunder shall terminate.

(d) The aggregate number of Securities sold shall not exceed 28,500,000 (including 3,325,000 Bonus Shares) (the "Maximum Offering"). Of this amount, 8,550,000 Securities, including 1,425,000 Bonus Shares, are being sold by certain of the Company's existing stockholders (collectively, the "Selling Stockholders"). The term "Bonus Shares" is defined in the Offering Circular. The Company may accept subscriptions until the termination of the Offering in accordance with its terms (the "Termination Date"). The Company may elect at any time to close all or any portion of this offering for such subscriptions submitted prior to the Termination Date on various dates (each a "Closing Date").

(e) In the event of rejection of this subscription in its entirety, or in the event the sale of the Securities (or any portion thereof) is not consummated for any reason, this Subscription Agreement shall have no force or effect, except for Section 5 hereof, which shall remain in force and effect.

(f) The terms of this Subscription Agreement shall be binding upon Subscriber and its transferees, heirs, successors and assigns (collectively, "Transferees"); provided that for any such transfer to be deemed effective, the Transferee shall have executed and delivered to the Company in advance an instrument in a form acceptable to the Company in its sole discretion, pursuant to which the proposed Transferee shall acknowledge, agree, and be bound by the representations and warranties of Subscriber and the terms of this Subscription Agreement.

<u>2. Purchase Procedure</u>.

(a) <u>Payment.</u> The purchase price for the Securities shall be paid simultaneously with the execution and delivery to the Company of the signature page of this Subscription Agreement. Subscriber shall deliver a signed copy of this Subscription Agreement, along with payment for the aggregate purchase price of the Securities by credit card, a check for available funds made payable to "XXXX" by ACH electronic transfer or wire transfer to an account designated by the Company, through a StartEngine account, or by any combination of such methods.

(b) <u>Escrow arrangements.</u> Payment for the Securities shall be received by Bryn Mawr Trust Company (the "Escrow Agent") from the undersigned by transfer of immediately available funds, check or other means approved by the Company at least two days prior to the applicable Closing Date, in the amount as set forth in Appendix A on the signature page hereto. Upon such Closing Date, the Escrow Agent shall release such funds to the Company and the Selling Shareholders. The undersigned shall receive notice and evidence of the digital entry of the number of the Securities owned by undersigned reflected on the books and records of the Company and verified by StartEngine Secure LLC , (the "Transfer Agent"), which books and records shall bear a notation that the Securities were sold in reliance upon Regulation A.

<u>3. Representations and Warranties of the Company</u>.

The Company represents and warrants to Subscriber that the following representations and warranties are true and complete in all material respects as of the date of each Closing Date, except as otherwise indicated. For purposes of this Agreement, an individual shall be deemed to have "knowledge" of a particular fact or other matter if such individual is actually aware of such fact. The Company will be deemed to have "knowledge" of a particular fact or other matter if one of the Company's current officers has, or at any time had, actual knowledge of such fact or other matter.

(a) <u>Organization and Standing.</u> The Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

(b) <u>Issuance of the Securities</u>. The issuance, sale and delivery of the Securities in accordance with this Subscription Agreement has been duly authorized by all necessary corporate action on the part of the Company. The Securities, when so issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable.

(c) <u>Authority for Agreement</u>. The execution and delivery by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby (including the issuance, sale and delivery of the Securities) are within the Company's powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon full execution hereof as provided herein, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies and (iii) with respect to provisions relating to indemnification and contribution, as limited by considerations of public policy and by federal or state securities laws.

(d) <u>No filings.</u> Assuming the accuracy of the Subscriber's representations and warranties set forth in Section 4 hereof, no order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to the Company in connection with the execution, delivery and performance by the Company of this Subscription Agreement except (i) for such filings as may be required under Regulation A or under any applicable state securities laws, (ii) for such other filings and approvals as have been made or obtained, or (iii) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Company to perform its obligations hereunder.

(e) <u>Capitalization</u>. The authorized and outstanding securities of the Company immediately prior to the initial investment in the Securities is as set forth under "Securities Being Offered" in the Offering Circular. Except as set forth in the Offering Circular, there are no outstanding options, warrants, rights (including conversion or preemptive rights and rights of first refusal), or agreements of any kind (oral or written) for the purchase or acquisition from the Company of any of its securities.

(f) <u>Financial statements.</u> Complete copies of the Company's financial statements meeting the requirements of Form 1-A under the Securities Act (the "Financial Statements") have been made available to the Subscriber and appear in the Offering Circular. The Financial Statements are based on the books and records of the Company and fairly present in all material respects the consolidated financial condition of the Company as of the respective dates they were prepared and the results of the operations and cash flows of the Company for the periods indicated. The auditing firm, or each firm, which has audited the Financial Statements, is an independent accounting firm within the rules and regulations adopted by the SEC.

(g) <u>Proceeds</u>. The Company shall use the proceeds from the issuance and sale of the Securities as set forth in "Use of Proceeds to Issuer" in the Offering Circular.

(h) <u>Litigation</u>. Except as set forth in the Offering Circular, there is no pending action, suit, proceeding, arbitration, mediation, complaint, claim, charge or investigation before any court, arbitrator, mediator or governmental body, or to the Company's knowledge, currently threatened in writing (a) against the Company or (b) to the Company's knowledge, against any consultant, officer, manager, director or key employee of the Company arising out of his or her consulting, employment or board relationship with the Company or that could otherwise materially impact the Company.

(i) With respect to the Selling Stockholders and the Securities being sold by them to the Subscriber, to the Company's knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Title to the Securities. Each Selling Stockholder is the lawful owner of the Securities being offered for sale in the Offering by such Selling Stockholder, with good and marketable title thereto, and the Selling Stockholder has the absolute right to sell, assign, convey, transfer and deliver such Securities and any and all rights and benefits incident to the ownership thereof, all of which rights and benefits are transferable by the Selling Stockholder to the Subscriber, free and clear of all the following (collectively called "Claims") of any nature whatsoever: security interests, liens, pledges, claims (pending or threatened), charges, escrows, encumbrances, lock-up arrangements, options, rights of first offer or refusal, community property rights, mortgages, indentures, security agreements or other agreements, arrangements, contracts, commitments, understandings or obligations, whether written or oral and whether or not relating in any way to credit or the borrowing of money. Delivery to the Subscriber of such Securities, upon payment therefor, will (i) pass good and marketable title to such Securities to the relevant Investor(s), free and clear of all Claims, and (ii) convey, free and clear of all Claims, any and all rights and benefits incident to the ownership of such Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Filings. No order, license, consent, authorization or approval of, or exemption by, or action by or in respect of, or notice to, or filing or registration with, any governmental body, agency or official is required by or with respect to each Selling Stockholder in connection with the sale and delivery of the Securities of such Selling Stockholder being sold hereunder, except (a) for such filings as may be required under Regulation A of the Securities Act of 1933, as amended the "Securities Act"), or under any applicable state securities laws, (b) for such other filings and approvals as have been made or obtained, or (c) where the failure to obtain any such order, license, consent, authorization, approval or exemption or give any such notice or make any filing or registration would not have a material adverse effect on the ability of the Selling Stockholder to perform its obligations under the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) No Litigation. With respect to each Selling Stockholder, there is no action, suit, proceeding, judgment, claim or investigation pending, or to the knowledge of the Selling Stockholder, threatened against the Selling Stockholder which could reasonably be expected in any manner to challenge or seek to prevent, enjoin, alter or materially delay any of the transactions contemplated by this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Non-Public Information. Each Selling Stockholder is not selling its Securities "on the basis of" (as defined in Rule 10b5-1 of the Exchange Act (as defined below)) any material, non-public information about the Securities or the Company.

<u>4. Representations and Warranties of Subscriber</u>. By executing this Subscription Agreement, Subscriber (and, if Subscriber is purchasing the Securities subscribed for hereby in a fiduciary capacity, the person or persons for whom Subscriber is so purchasing) represents and warrants, which representations and warranties are true and complete in all material respects as of such Subscriber's respective Closing Date(s):

(a) <u>Requisite Power and Authority</u>. Such Subscriber has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement, and other agreements required hereunder and to carry out their provisions. All action on Subscriber's part required for the lawful execution and delivery of this Subscription Agreement and other agreements required hereunder have been or will be effectively taken prior to the Closing Date. Upon their execution and delivery, this Subscription Agreement and other agreements required hereunder will be valid and binding obligations of Subscriber, enforceable in accordance with their terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors' rights and (b) as limited by general principles of equity that restrict the availability of equitable remedies.

(b) <u>Investment Representations</u>. Subscriber understands that the Securities have not been registered under the Securities Act of 1933, as amended (the "Securities Act"). Subscriber also understands that the Securities are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Subscriber's representations contained in this Subscription Agreement.

(c) <u>Illiquidity and Continued Economic Risk</u>. Subscriber acknowledges and agrees that there is no ready public market for the Securities and that there is no guarantee that a market for their resale will ever exist. Subscriber must bear the economic risk of this investment indefinitely and the Company has no obligation to list the Securities on any market or take any steps (including registration under the Securities Act or the Securities Exchange Act of 1934, as amended) with respect to facilitating trading or resale of the Securities. Subscriber acknowledges that Subscriber is able to bear the economic risk of losing Subscriber's entire investment in the Securities. Subscriber also understands that an investment in the Company involves significant risks and has taken full cognizance of and understands all of the risk factors relating to the purchase of Securities.

(d) <u>Accredited Investor Status or Investment Limits</u>. Subscriber represents that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subscriber is an "accredited investor" within the meaning of Rule 501 of Regulation D under the Securities Act. Subscriber represents and warrants that it meets one or more of the criteria set forth in Appendix A attached hereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The purchase price of the Securities, together with any other amounts previously used to purchase Securities in this offering, does not exceed 10% of the greater of the Subscriber's annual income or net worth.

Subscriber represents that to the extent it has any questions with respect to its status as an accredited investor, or the application of the investment limits, it has sought professional advice.

(e) <u>Shareholder information.</u> Within five days after receipt of a request from the Company, the Subscriber hereby agrees to provide such information with respect to its status as a shareholder (or potential shareholder) and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is or may become subject. **Subscriber further agrees that in the event it transfers any Securities, it will require the transferee of such Securities to agree to provide such information to the Company as a condition of such transfer.**

(f) <u>Valuation.</u> The Subscriber acknowledges that the price of the Securities was set by the Company on the basis of the Company's internal valuation and no warranties are made as to value. The Subscriber further acknowledges that future offerings of Securities may be made at lower valuations, with the result that the Subscriber's investment will bear a lower valuation.

(g) <u>Domicile</u>. Subscriber maintains Subscriber's domicile (and is not a transient or temporary resident) at the address shown on the signature page.

(h) <u>No Brokerage Fees</u>. There are no claims for brokerage commission, finders' fees or similar compensation in connection with the transactions contemplated by this Subscription Agreement or related documents based on any arrangement or agreement binding upon Subscriber.

(i) <u>Foreign Investors</u>. If Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Subscriber hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Securities or any use of this Subscription Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Securities. Subscriber's subscription and payment for and continued beneficial ownership of the Securities will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

5. <u>Survival of Representations and Indemnity</u>. The representations, warranties and covenants made by the Subscriber herein shall survive the Termination Date. The Subscriber agrees to indemnify and hold harmless the Company, the Selling Shareholders and their respective officers, directors and affiliates, and each other person, if any, who controls the Company or any Selling Shareholder within the meaning of Section 15 of the Securities Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.

6. <u>Governing Law; Jurisdiction</u>. This Subscription Agreement shall be governed and construed in accordance with the laws of the State of New York.

EACH OF THE SUBSCRIBER AND THE COMPANY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION LOCATED WITHIN THE STATE OF CALIFORNIA AND NO OTHER PLACE AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS RELATING TO THIS SUBSCRIPTION AGREEMENT MAY BE LITIGATED IN SUCH COURTS.

EACH OF SUBSCRIBER AND THE COMPANY ACCEPTS FOR ITSELF AND HIMSELF AND IN CONNECTION WITH ITS AND HIS RESPECTIVE PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH THIS SUBSCRIPTION AGREEMENT. EACH OF SUBSCRIBER AND THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN THE MANNER AND IN THE ADDRESS SPECIFIED IN SECTION 7 AND THE SIGNATURE PAGE OF THIS SUBSCRIPTION AGREEMENT. HOWEVER, NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO BE APPLICABLE TO ANY ACTION ARISING UNDER THE FEDERAL SECURITIES LAWS.

EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED IN CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS SUBSCRIPTION AGREEMENT OR THE ACTIONS OF EITHER PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT THEREOF. EACH OF THE PARTIES HERETO ALSO WAIVES ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF SUCH PARTY. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS SUBSCRIPTION AGREEMENT. IN THE EVENT OF LITIGATION, THIS SUBSCRIPTION AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. BY AGREEING TO THIS WAIVER, THE SUBSCRIBER IS NOT DEEMED TO WAIVE THE COMPANY'S COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER.

7. <u>Notices</u>. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) emailed, telecopied or cabled, on the date of such delivery to the address of the respective parties as follows:

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|:---|:---|
| If to the Company, to: | with a required copy to: |
| contact@startengine.com |  |
| StartEngine Inc. | [CrowdCheck Law] |
| 4100 W Alameda Ave., 3rd Floor |  |
| Burbank, California 91505 |  |
| If to a Subscriber, to Subscriber's address as shown on the signature page hereto. | If to a Subscriber, to Subscriber's address as shown on the signature page hereto. |

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or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by telecopy or cable shall be confirmed by letter given in accordance with (a) or (b) above.

8. <u>Miscellaneous</u>.

(a) All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require.

(b) This Subscription Agreement is not transferable or assignable by Subscriber.

(c) The representations, warranties and agreements contained herein shall be deemed to be made by and be binding upon Subscriber and its heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns.

(d) None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Subscriber.

(e) In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never the subject of agreement.

(f) The invalidity, illegality or unenforceability of one or more of the provisions of this Subscription Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Subscription Agreement in such jurisdiction or the validity, legality or enforceability of this Subscription Agreement, including any such provision, in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

(g) This Subscription Agreement supersedes all prior discussions and agreements between the parties with respect to the subject matter hereof and contains the sole and entire agreement between the parties hereto with respect to the subject matter hereof.

(h) The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person.

(i) The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof.

(j) This Subscription Agreement may be executed in any number of counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

(k) If any recapitalization or other transaction affecting the stock of the Company is effected, then any new, substituted or additional securities or other property which is distributed with respect to the Securities shall be immediately subject to this Subscription Agreement, to the same extent that the Securities, immediately prior thereto, shall have been covered by this Subscription Agreement.

(l) No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

9. <u>Electronic Delivery</u>. The Subscriber hereby consents and agrees that, to the fullest extent permitted by applicable law, including those required under federal securities laws, the Company may deliver all documents, notices, and other materials, including but not limited to those required to be delivered under federal securities laws, by electronic mail to the email address provided by the Subscriber. This consent shall remain in effect unless and until revoked in writing by the Subscriber and delivered to the Company in accordance with the notice provisions of this Subscription Agreement. The Subscriber acknowledges that it is their responsibility to ensure that the Company has a current and valid email address on file and that they have access to the necessary hardware and software to receive, view, and retain such electronic communications.

10. <u>Subscription Procedure</u>. Each Subscriber, by providing his or her information, including name, address and subscription amount, and clicking "accept" and/or checking the appropriate box on the online investment platform ("Online Acceptance"), confirms such Subscriber's information and his or her investment through the platform and confirms such Subscriber's electronic signature to this Subscription Agreement. Each party hereto agrees that (a) Subscriber's electronic signature as provided through Online Acceptance is the legal equivalent of his or her manual signature on this Subscription Agreement and constitutes execution and delivery of this Subscription Agreement by Subscriber, (b) the Company's acceptance of Subscriber's subscription through the platform and its electronic signature hereto is the legal equivalent of its manual signature on this Subscription Agreement and constitutes execution and delivery of this Subscription Agreement by the Company and (c) each party's execution and delivery of this Subscription Agreement as provided in this Section 10 establishes such party's acceptance of the terms and conditions of this Subscription Agreement.

[*SIGNATURE PAGE FOLLOWS*]

**APPENDIX A**

*An accredited investor, as defined in Rule 501(a) of the Securities Act of 1933, as amended, includes the following categories of investor:*

(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the Commission under section 203(l) or (m) of the Investment Advisers Act of 1940; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any Rural Business Investment Company as defined in section 384A of the Consolidated Farm and Rural Development Act; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

(5) Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in paragraph (5)(ii) of this section, for purposes of calculating net worth under this paragraph (5):

(A) The person's primary residence shall not be included as an asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Paragraph (5)(i) of this section will not apply to any calculation of a person's net worth made in connection with a purchase of securities in accordance with a right to purchase such securities, provided 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Such right was held by the person on July 20, 2010;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 person qualified as an accredited investor on the basis of net worth at the time the person acquired such right; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) The person held securities of the same issuer, other than such right, on July 20, 2010.

(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in §230.506(b)(2)(ii);

(8) Any entity in which all of the equity owners are accredited investors;

(9) Any entity, of a type of not listed in paragraphs (1), (2), (3), (7), or (8), not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;

(10) Any natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status;

(11) Any natural person who is a "knowledgeable employee," as defined in rule 3c-5(a)(4) under the Investment Company Act of 1940 (17 CFR 270.3c-5(a)(4)), of the issuer of the securities being offered or sold where the issuer would be an investment company, as defined in section 3 of such act, but for the exclusion provided by either section 3(c)(1) or section 3(c)(7) of such act;

(12) Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With assets under management in excess of $5,000,000,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) That is not formed for the specific purpose of acquiring the securities offered, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; and

(13) Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1)), of a family office meeting the requirements in paragraph (12) of this section and whose prospective investment in the issuer is directed by such family office pursuant to paragraph (12)(iii).

## Ex1A-8

**Exhibit 8.1**

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img01.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Escrow Agreement FOR SECURITIES OFFERING This Escrow Agreement, effective as of _____________, ("Escrow Agreement"), is by, between and among The Bryn Mawr Trust Company of Delaware, a Delaware Limited Purpose Trust Company and located at 20 Montchanin Rd., Suite 100, Greenville, DE 19807 as Escrow Agent hereunder ("Escrow Agent"); StartEngine Primary LLC ("Broker"), a Delaware Limited Liability Company, located at 4100 W. Alameda Ave, Burbank, CA 91505 ; and ____________________________, a __________________________ ("Issuer") located at ___________________________________________________________________. SUMMARY A. Issuer has engaged Broker to act as broker/dealer of record for the sale up to $________________ of securities (the "Securities") on a "best efforts" basis, in an offering pursuant to Regulation A+ (the "Offering"). B. In accordance with the offering circular ("Offering Document"), subscribers to the Shares (as defined below) (the "Subscribers" and individually, a "Subscriber") will be required to submit full payment for their respective investments at the time they enter into subscription agreements. C. In accordance with the Offering Document, all payments in connection with subscriptions for Shares shall be sent directly to Escrow Agent, and Escrow Agent has agreed to accept, hold, and disburse such funds deposited with it thereon in accordance with the terms of this Escrow Agreement and in compliance with the Securities Exchange Act of 1934 Rule 15(c)2-4 and related SEC guidance and FINRA rules. D. In order to establish the escrow of funds and to effect the provisions of the Offering Document, the parties hereto have entered into this Escrow Agreement. E. The parties to this agreement agree to the Transmittal of Funds for Deposit Into the Escrow Account procedures located in Exhibit B. STATEMENT OF AGREEMENT NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows: 1. Definitions. In addition to the terms defined above, the following terms shall have the following meanings when used herein: "Business Days" shall mean days when banks are open for business in the State of Delaware. "Cash Investment" shall mean the number of Shares to be purchased by any Subscriber multiplied by the offering price per Share as set forth in the Offering Document. 06 / 18 / 2026 StartEngine Inc. Delaware Corporatio 4100 W Alameda Ave, Suite 300, Burbank, CA 91505 45,600,000.00 Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img02.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;"Cash Investment Instrument" shall mean an Automated Clearing House ("ACH"), made payable to or endorsed to Escrow Agent in the manner described in Section 3(c) hereof, in full payment for the Shares to be purchased by any Subscriber. "Escrow Funds" shall mean the funds deposited with Escrow Agent pursuant to this Escrow Agreement. "Expiration Date" means the date so designated as the offering end date in the most current Offering Document. "Minimum Offering" shall mean the number of Shares so designated as the Offering Minimum in the most current Offering Document. "Minimum Offering Notice" shall mean an electronic notification, signed by Broker, pursuant to which the Broker shall represent (1) that subscriptions for the Minimum Offering have been received, (2) that, to the best of Broker's knowledge after due inquiry and review of its records, Cash Investment Instruments in full payment for that number of Shares equal to or greater than the Minimum Offering have been received, deposited with and collected by Escrow Agent, (3) and that such subscriptions have not been withdrawn, rejected or otherwise terminated, and (4) that the Subscribers have no statutory or regulatory rights of rescission without cause or all such rights have expired. "Share" shall mean a unit of security to be issued by Issuer in connection with the Offering to Subscribers in exchange for their payments. "Subscription Accounting" shall mean an accounting of all subscriptions for Shares received and accepted by Broker as of the date of such accounting, indicating for each subscription the Subscriber's name, social security number and address, the number and total purchase price of subscribed Securities, the date of receipt by Broker of the Cash Investment Instrument, and notations of any nonpayment of the Cash Investment Instrument submitted with such subscription, any withdrawal of such subscription by the Subscriber, any rejection of such subscription by Broker, or other termination, for whatever reason, of such subscription. 2. Appointment of and Acceptance by Escrow Agent. Issuer, Broker hereby appoint Escrow Agent to serve as Escrow Agent hereunder, and Escrow Agent hereby accepts such appointment in accordance with the terms of this Escrow Agreement. 3. Deposits into Escrow. a. All Cash Investment Instruments shall be delivered directly to Escrow Agent for deposit into the Escrow Account described on Exhibit B hereto. Each such deposit shall be accompanied by the following documents: (1) a report containing such Subscriber's name, social security number or taxpayer identification number, address and other information required for withholding purposes; (2) a Subscription Accounting; and (3) written instructions regarding the investment of such deposited funds in accordance with Section 6 hereof. Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img03.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALL FUNDS SO DEPOSITED SHALL REMAIN THE PROPERTY OF THE SUBSCRIBERS ACCORDING TO THEIR RESPECTIVE INTERESTS AND, EXCEPT AS PROVIDED IN SECTION 10(C) HEREIN, SHALL NOT BE SUBJECT TO ANY LIEN OR CHARGE BY Escrow Agent OR BY JUDGMENT OR CREDITORS' CLAIMS AGAINST ISSUER UNTIL RELEASED OR ELIGIBLE TO BE RELEASED TO ISSUER IN ACCORDANCE WITH SECTION 4(a) HEREOF. b. Broker and Issuer understand and agree that all Cash Investment Instruments received by Escrow Agent hereunder are subject to collection requirements of presentment and final payment. Upon receipt, Escrow Agent shall process each Cash Investment Instrument for collection, and the proceeds thereof shall be held as part of the Escrow Funds until disbursed in accordance with Section 4 hereof. If, upon presentment for payment, any Cash Investment Instrument is dishonored, Escrow Agent's sole obligation shall be to notify Broker of such dishonor and to return such Cash Investment Instrument to the Investor should Escrow Agent have Investor information sufficient to effect such a return or to Broker should sufficient Investor information be unavailable. Notwithstanding the foregoing, if for any reason any Cash Investment Instrument is uncollectible after payment or disbursement of the funds represented thereby has been made by Escrow Agent, Issuer shall immediately reimburse Escrow Agent upon receipt from Escrow Agent of written notice thereof. Upon receipt of any Cash Investment Instrument that represents payment of an amount less than or greater than the Cash Investment, Escrow Agent's sole obligation shall be to notify Issuer and Broker, depending upon the source of the of the Cash Investment Instrument, of such fact and to return such Cash Investment Instrument to the Investor should Escrow Agent have Investor information sufficient to effect such a return or to Broker should sufficient Investor information be unavailable. c. All Cash Investment Instruments shall be made payable to the order of, or endorsed to the order of, "Escrow Agent / [____________________]-Escrow Account," and Escrow Agent shall not be obligated to accept, or present for payment, any Cash Investment Instrument that is not payable or endorsed in that manner. 4. Disbursements of Escrow Funds. a. Completion of Offering. Subject to the provisions of Section 10 hereof, Escrow Agent shall pay to Issuer the liquidated value of the Escrow Funds, by wire no later than one (1) business day following receipt of the following documents: (1) A Minimum Offering Notice; (2) Subscription Accounting spreadsheet substantiating the sale of the Minimum Offering and maintained by Broker (3) Instruction Letter (as defined below); and (4) Such other certificates, notices or other documents as Escrow Agent shall reasonably require. Escrow Agent shall disburse the Escrow Funds by wire from the Escrow Account in accordance with joint written instructions signed by the Issuer and/or Broker as to the disbursement of such funds (the "Instruction Letter") in accordance with this Section 4(a). Notwithstanding the foregoing, Escrow Agent shall not be obligated to disburse the Escrow StartEngine Inc. Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img04.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Funds to Issuer if Escrow Agent has reason to believe that (a) Cash Investment Instruments in full payment for that number of Securities equal to or greater than the Minimum Offering have not been received, deposited with and collected by Escrow Agent, or (b) any of the certifications and opinions set forth in the Minimum Offering Notice are incorrect or incomplete. After the initial disbursement of Escrow Funds to Issuer pursuant to this Section 4(a), Escrow Agent shall pay to Issuer any additional funds received with respect to the Securities, by wire, promptly after receipt. Additional disbursements shall be subject to the issuer providing the following documentation: (1) Subscription Accounting spreadsheet substantiating the sale of the Minimum Offering which shall be made available for electronic access to Issuer by Escrow Agent; (2) Instruction Letter (as defined above) from Issuer; and (3) Such other certificates, notices or other documents as Escrow Agent shall reasonably require. It is understood that any ACH transaction must comply with U.S. laws and NACHA rules. However, Escrow Agent shall not be responsible for any errors in the completion, accuracy, or timeliness of any transfer properly initiated by Escrow Agent in accordance with joint written instructions of Issuer and Broker occasioned by the acts or omissions of any third party financial institution or a party to the transaction, or the insufficiency or lack of availability of funds on deposit in an external account. b. Rejection of Any Subscription or Termination of the Offering. No later than three (3) business days after receipt by Escrow Agent of written notice (i) from Issuer and/or Broker that the Issuer intends to reject a Subscriber's subscription, (ii) from Broker that there will be no closing of the sale of Securities to Subscribers, (iii) from any federal or state regulatory authority that any application by Issuer to conduct a banking business has been denied, or (iv) from the Securities and Exchange Commission or any other federal or state regulatory authority that a stop or similar order has been issued with respect to the Offering Document and has remained in effect for at least twenty (20) days, Escrow Agent shall pay to the applicable Subscriber(s), by ACH , the amount of the Cash Investment paid by each Subscriber. c. Expiration of Offering Period. Notwithstanding anything to the contrary contained herein, if Escrow Agent shall not have received a Minimum Offering Notice on or before the Expiration Date, Escrow Agent shall, within three (3) business days after such Expiration Date and without any further instruction or direction from Broker or Issuer, return to each Subscriber, by ACH, the Cash Investment made by such Subscriber. 5. Suspension of Performance or Disbursement Into Court. If, at any time, (i) there shall exist any dispute between Broker, Issuer, Escrow Agent, any Subscriber or any other person with respect to the holding or disposition of all or any portion of the Escrow Funds or any other obligations of Escrow Agent hereunder, or (ii) if at any time Escrow Agent is unable to determine, to Escrow Agent's reasonable satisfaction, the proper disposition of all or any portion of the Escrow Funds or Escrow Agent's proper actions with respect to its obligations hereunder, or (iii) if Broker and Issuer have not within 30 days of the furnishing by Escrow Agent of a notice of resignation pursuant to Section 7 hereof appointed a successor Escrow Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img05.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agent to act hereunder, then Escrow Agent may, in its reasonable discretion, take either or both of the following actions: a. suspend the performance of any of its obligations (including without limitation any disbursement obligations) under this Escrow Agreement until such dispute or uncertainty shall be resolved to the sole satisfaction of Escrow Agent or until a successor Escrow Agent shall have been appointed (as the case may be). b. petition (by means of an interpleader action or any other appropriate method) any court of competent jurisdiction in any venue convenient to Escrow Agent, for instructions with respect to such dispute or uncertainty, and to the extent required or permitted by law, pay into such court all funds held by it in the Escrow Funds for holding and disposition in accordance with the instructions of such court. Escrow Agent shall have no liability to Broker, Issuer, any Subscriber or any other person with respect to any such suspension of performance or disbursement into court, specifically including any liability or claimed liability that may arise, or be alleged to have arisen, out of or as a result of any delay in the disbursement of the Escrow Funds or any delay in or with respect to any other action required or requested of Escrow Agent. 6. Investment of Funds. Escrow Agent will not commingle Escrow Funds received by it in escrow with funds of others and shall not invest such Escrow Funds. The Escrow Funds will be held in a non-interest bearing account. 7. Resignation of Escrow Agent. Escrow Agent may resign and be discharged from the performance of its duties hereunder at any time by giving fifteen (15) business days prior written notice to the Broker and the Issuer specifying a date when such resignation shall take effect. Upon any such notice of resignation, the Broker and Issuer jointly shall appoint a successor Escrow Agent hereunder prior to the effective date of such resignation. The retiring Escrow Agent shall transmit all records pertaining to the Escrow Funds and shall pay all Escrow Funds to the successor Escrow Agent, after making copies of such records as the retiring Escrow Agent deems advisable. After any retiring Escrow Agent's resignation, the provisions of this Escrow Agreement shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Escrow Agent under this Escrow Agreement. Any corporation or association into which Escrow Agent may be merged or converted or with which it may be consolidated shall be the Escrow Agent under this Escrow Agreement without further act. 8. Liability of Escrow Agent. a. Escrow Agent undertakes to perform only such duties as are expressly set forth herein and no duties shall be implied. Escrow Agent shall have no liability under and no duty to inquire as to the provisions of any agreement other than this Escrow Agreement, including without limitation the Offering Document. Escrow Agent shall not be liable for any action taken or omitted by it in good faith except to the extent that a court of competent jurisdiction determines that Escrow Agent's gross negligence or willful misconduct was the primary cause of any loss to the Issuer, Broker or any Subscriber. Escrow Agent's sole responsibility shall be for the safekeeping and disbursement of the Escrow Funds in accordance with the terms of this Escrow Agreement. Escrow Agent shall have no implied duties or obligations and shall not be charged with knowledge or notice of any fact or circumstance not specifically set forth herein. Escrow Agent may rely upon any notice, instruction, request or other instrument, not only as to its due execution, validity and Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img06.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effectiveness, but also as to the truth and accuracy of any information contained therein, which Escrow Agent shall believe to be genuine and to have been signed or presented by the person or parties purporting to sign the same. In no event shall Escrow Agent be liable for incidental, indirect, special, consequential or punitive damages (including, but not limited to lost profits), even if Escrow Agent has been advised of the likelihood of such loss or damage and regardless of the form of action. Escrow Agent shall not be obligated to take any legal action or commence any proceeding in connection with the Escrow Funds, any account in which Escrow Funds are deposited, this Escrow Agreement or the Offering Document, or to appear in, prosecute or defend any such legal action or proceeding. Without limiting the generality of the foregoing, Escrow Agent shall not be responsible for or required to enforce any of the terms or conditions of any subscription agreement with any Subscriber or any other agreement between Issuer, Broker and/or any Subscriber. Escrow Agent shall not be responsible or liable in any manner for the performance by Issuer or any Subscriber of their respective obligations under any subscription agreement nor shall Escrow Agent be responsible or liable in any manner for the failure of Issuer, Broker or any third party (including any Subscriber) to honor any of the provisions of this Escrow Agreement. Escrow Agent may consult legal counsel selected by it in the event of any dispute or question as to the construction of any of the provisions hereof or of any other agreement or of its duties hereunder, or relating to any dispute involving any party hereto, and shall incur no liability and shall be fully indemnified from any reasonable liability whatsoever in acting in accordance with the reasonable opinion or instruction of such counsel. Issuer shall promptly pay, upon demand, the reasonable fees and expenses of any such counsel. b. Escrow Agent is authorized, in its sole discretion, to comply with orders issued or process entered by any court with respect to the Escrow Funds, without determination by Escrow Agent of such court's jurisdiction in the matter. If any portion of the Escrow Funds is at any time attached, garnished or levied upon under any court order, or in case the payment, assignment, transfer, conveyance or delivery of any such property shall be stayed or enjoined by any court order, or in case any order, judgment or decree shall be made or entered by any court affecting such property or any part thereof, then and in any such event, Escrow Agent is authorized, in its reasonable discretion, to rely upon and comply with any such order, writ, judgment or decree which it is advised by legal counsel selected by it is binding upon it without the need for appeal or other action; and if Escrow Agent complies with any such order, writ, judgment or decree, it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even though such order, writ, judgment or decree may be subsequently reversed, modified, annulled, set aside or vacated. Notwithstanding the foregoing, Escrow Agent shall provide the Issuer and Broker with immediate notice of any such court order or similar demand and the opportunity to interpose an objection or obtain a protective order. 9. Indemnification of Escrow Agent. From and at all times after the date of this Escrow Agreement, Issuer shall, to the fullest extent permitted by law, defend, indemnify and hold harmless Escrow Agent and each director, officer, employee, attorney, agent and affiliate of Escrow Agent (collectively, the "Indemnified Parties") against any and all actions, claims (whether or not valid), losses, damages, liabilities, costs and expenses of any kind or nature whatsoever (including without limitation reasonable attorneys' fees, costs and expenses) incurred by or asserted against any of the Indemnified Parties from and after the date hereof, whether direct, indirect or consequential, as a result of or arising from or in any way relating to any claim, demand, suit, action or proceeding (including any inquiry or investigation) by any person, including without limitation Issuer, Broker whether threatened or initiated, asserting a claim for any legal or equitable remedy against any person under any statute or regulation, including, but not limited to, any federal or state securities laws, or under any common law or equitable cause or otherwise, arising from or in connection with the Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img07.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;negotiation, preparation, execution, performance or failure of performance of this Escrow Agreement or any transactions contemplated herein, whether or not any such Indemnified Party is a party to any such action, proceeding, suit or the target of any such inquiry or investigation; provided, however, that no Indemnified Party shall have the right to be indemnified hereunder for any liability finally determined by a court of competent jurisdiction, subject to no further appeal, to have resulted from the gross negligence or willful misconduct of such Indemnified Party. Each Indemnified Party shall, in its sole discretion, have the right to select and employ separate counsel with respect to any action or claim brought or asserted against it, and the reasonable fees of such counsel shall be paid upon demand by the Issuer. The obligations of Issuer under this Section 9 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent. 10. Compensation to Escrow Agent. a. Fees and Expenses. Broker shall compensate Escrow Agent for its services hereunder in accordance with Exhibit A attached hereto and, in addition, shall reimburse Escrow Agent for all of its reasonable pre-approved out-of-pocket expenses, including attorneys' fees, travel expenses, telephone and facsimile transmission costs, postage (including express mail and overnight delivery charges), copying charges and the like. The additional provisions and information set forth on Exhibit A are hereby incorporated by this reference, and form a part of this Escrow Agreement. All of the compensation and reimbursement obligations set forth in this Section 10 shall be payable by Broker upon demand by Escrow Agent. The obligations of Broker under this Section 10 shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent. b. Disbursements from Escrow Funds to Pay Escrow Agent. Escrow Agent is authorized to and may disburse from time to time, to itself or to Broker or to any Indemnified Party from the Escrow Funds (but only to the extent of Issuer's rights thereto), the amount of any compensation and reimbursement of out-of-pocket expenses due and payable hereunder (including any amount to which Escrow Agent or any Indemnified Party is entitled to seek indemnification pursuant to Section 9 hereof). Escrow Agent shall notify Issuer and Broker of any disbursement from the Escrow Funds to itself or to any Indemnified Party in respect of any compensation or reimbursement hereunder and shall furnish to Issuer copies of all related invoices and other statements. c. Security and Offset. Issuer hereby grants to Escrow Agent and Broker and the Indemnified Parties a security interest in and lien upon the Escrow Funds (to the extent of Issuer's rights thereto) to secure all obligations hereunder, and Escrow Agent and the Indemnified Parties shall have the right to offset the amount of any compensation or reimbursement due any of them hereunder (including any claim for indemnification pursuant to Section 9 hereof) against the Escrow Funds (to the extent of Issuer's rights thereto.) If for any reason the Escrow Funds available to Escrow Agent and the Indemnified Parties pursuant to such security interest or right of offset are insufficient to cover such compensation and reimbursement, Broker shall promptly pay such amounts to Escrow Agent and the Indemnified Parties upon receipt of an itemized invoice. 11. Representations and Warranties. a. Each of Broker and Issuer respectively makes the following representations and warranties to Escrow Agent: Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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|:---|:---|
| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img08.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) It is a corporation or limited liability company duly organized, validly existing, and in good standing under the laws of the state of its incorporation or organization, and has full power and authority to execute and deliver this Escrow Agreement and to perform its obligations hereunder. (2) This Escrow Agreement has been duly approved by all necessary corporate action, including any necessary shareholder or membership approval, has been executed by its duly authorized officers, and constitutes its valid and binding agreement, enforceable in accordance with its terms. (3) The execution, delivery, and performance of this Escrow Agreement will not violate, conflict with, or cause a default under its articles of incorporation, articles of organization or bylaws, operating agreement or other organizational documents, as applicable, any applicable law or regulation, any court order or administrative ruling or decree to which it is a party or any of its property is subject, or any agreement, contract, indenture, or other binding arrangement to which it is a party or any of its property is subject. The execution, delivery and performance of this Escrow Agreement is consistent with and accurately described in the Offering Document as set forth in Sections 4(b) and 4(c) hereof, has been properly described therein. (4) It hereby acknowledges that the status of Escrow Agent is that of agent only for the limited purposes set forth herein, and hereby represents and covenants that no representation or implication shall be made that Escrow Agent has investigated the desirability or advisability of investment in the Shares or has approved, endorsed or passed upon the merits of the investment therein and that the name of Escrow Agent has not and shall not be used in any manner in connection with the offer or sale of the Shares other than to state that Escrow Agent has agreed to serve as Escrow Agent for the limited purposes set forth herein. (5) All of its representations and warranties contained herein are true and complete as of the date hereof and will be true and complete at the time of any deposit to or disbursement from the Escrow Funds. b. Issuer further represents and warrants to Escrow Agent that no party other than the parties hereto and the prospective Subscribers have, or shall have, any lien, claim or security interest in the Escrow Funds or any part thereof. No financing statement under the Uniform Commercial Code is on file in any jurisdiction claiming a security interest in or describing (whether specifically or generally) the Escrow Funds or any part thereof. c. Broker further represent and warrant to Escrow Agent that the deposit with Escrow Agent by Escrow Agent of Cash Investment Instruments pursuant to Section 3 hereof shall be deemed a representation and warranty by Escrow Agent that such Cash Investment Instrument represents a bona fide sale to the Subscriber described therein of the amount of Shares set forth therein, subject to and in accordance with the terms of the Offering Document. 12. Identifying Information. Issuer and Broker acknowledge that a portion of the identifying information requested by Escrow Agent in connection with this Escrow Agreement is being requested by Escrow Agent in connection with the USA Patriot Act, Pub.L.107-56 (the "Act"). To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust, or other legal entity, Escrow Agent will ask for Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img09.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;documentation to verify such person or entity's formation and existence as a legal entity. Escrow Agent may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. 13. Compliance with Privacy Laws. Escrow Agent represents and warrants that its collection, access, use, storage, disposal and disclosure of Personal Data does and will comply with all applicable federal and state privacy and data protection laws, as well as all other applicable regulations. Without limiting the foregoing, Escrow Agent shall implement administrative, physical and technical safeguards to protect Personal Data that are no less rigorous than accepted industry, and shall ensure that all such safeguards, including the manner in which Personal Data is collected, accessed, used, stored, processed, disposed of and disclosed, comply with applicable data protection and privacy laws, as well as the terms and conditions of this Escrow Agreement. Escrow Agent shall use and disclose Personal Data solely and exclusively for the purposes for which the Personal Data, or access to it, is provided pursuant to the terms and conditions of this Escrow Agreement, and not use, sell, rent, transfer, distribute, or otherwise disclose or make available Personal Data for Escrow Agent's own purposes or for the benefit of any party other than Issuer. For purposes of this section, "Personal Data" shall mean information provided to Escrow Agent by or at the direction of the Issuer or Broker, or to which access was provided to Escrow Agent by or at the direction of the Issuer or Broker, in the course of Escrow Agent's performance under this Escrow Agreement that: (i) identifies or can be used to identify an individual (also known as a "data subject") (including, without limitation, names, signatures, addresses, telephone numbers, e-mail addresses and other unique identifiers); or (ii) can be used to authenticate an individual (including, without limitation, employee identification numbers, government-issued identification numbers, passwords or PINs, financial account numbers, credit report information, biometric or health data, answers to security questions and other personal identifiers), including the identifying information on individuals described in Section 12. 14. Consent to Jurisdiction and Venue. In the event that any party hereto commences a lawsuit or other proceeding relating to or arising from this Escrow Agreement, the parties hereto agree that the United States District Court for the State of Delaware shall have the sole and exclusive jurisdiction over any such proceeding. If such court lacks federal subject matter jurisdiction, the parties agree that the Circuit Court in and for State of Delaware shall have sole and exclusive jurisdiction. Any of these courts shall be proper venue for any such lawsuit or judicial proceeding and the parties hereto waive any objection to such venue. The parties hereto consent to and agree to submit to the jurisdiction of any of the courts specified herein and agree to accept service of process to vest personal jurisdiction over them in any of these courts. 15. Notice. All notices, approvals, consents, requests, and other communications hereunder shall be in writing and shall be deemed to have been given when the writing is delivered if given or delivered by hand, overnight delivery service or facsimile transmitter (with confirmed receipt) to the address or facsimile number set forth on Exhibit C hereto, or to such other address as each party may designate for itself by like notice, and shall be deemed to have been given on the date deposited in the mail, if mailed, by first-class, registered or certified mail, postage prepaid, addressed as set forth on Exhibit C hereto, or to such other address as each party may designate for itself by like notice. 16. Amendment or Waiver. This Escrow Agreement may be changed, waived, discharged or terminated only by a writing signed by Broker, Issuer and Escrow Agent. No delay or omission by any party in exercising any right with respect hereto shall operate as a Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img10.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;waiver. A waiver on any one occasion shall not be construed as a bar to, or waiver of, any right or remedy on any future occasion. 17. Severability. To the extent any provision of this Escrow Agreement is prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Escrow Agreement. 18. Governing Law. This Escrow Agreement shall be construed and interpreted in accordance with the internal laws of the State of Delaware without giving effect to the conflict of laws principles thereof. 19. Entire Agreement. This Escrow Agreement constitutes the entire agreement between the parties relating to the acceptance, collection, holding, investment and disbursement of the Escrow Funds and sets forth in their entirety the obligations and duties of Escrow Agent with respect to the Escrow Funds. 20. Binding Effect. All of the terms of this Escrow Agreement, as amended from time to time, shall be binding upon, inure to the benefit of and be enforceable by the respective successors and assigns of Broker, Issuer and Escrow Agent. 21. Execution in Counterparts. This Escrow Agreement may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement. 22. Termination. Upon the first to occur of the disbursement of all amounts in the Escrow Funds or deposit of all amounts in the Escrow Funds into court pursuant to Section 5 or Section 8 hereof, this Escrow Agreement shall terminate and Escrow Agent shall have no further obligation or liability whatsoever with respect to this Escrow Agreement or the Escrow Funds. THIS SPACE INTENTIONALLY LEFT BLANK Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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| &nbsp;&nbsp;![GRAPHIC](tm2618104d1_ex8-1img11.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Dealings. Escrow Agent and any stockholder, director, officer or employee of Escrow Agent may buy, sell, and deal in any of the securities of the Issuer and become pecuniary interested in any transaction in which the Issuer may be interested, and contract and lend money to the Issuer and otherwise act as fully and freely as though it were not Escrow Agent under this Escrow Agreement. Nothing herein shall preclude Escrow Agent from acting in any other capacity for the Issuer or any other entity. IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be executed under seal as of the date first above written. ISSUER: By: ______________________________ _ Printed Name: _______________________ Title: _____________ Broker: __________________________ By: ______________________________ Name: _______________ Title: ________________ Escrow Agent: By: ______________________________ Name: Title: The Bryn Mawr Trust Company of DE Matthew Drake Trust Officer StartEngine Primary LLC Hunter D Strassman CFO StartEngine Inc. Hunter Strassman CFO Doc ID: 040d5e20078f7562f278e64cfb10b9c8dbbafa12 |

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&nbsp;&nbsp;**<u>EXHIBIT A</u>**<br> **Escrow Agent Fees.**<br>**<u>EXHIBIT B</u>**<br> **Transmittal of Funds for Deposit Into the Escrow Account**<br>**<u>EXHIBIT C</u><br> Notice**<br>*The Company agrees to furnish supplementally a copy of any omitted schedule, appendix or exhibit to the Commission upon request.*<br>

## Ex1A-11

**Exhibit 11.1**

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| ![](tm2618104d1_ex11-1img01.jpg) <br>| ![](tm2618104d1_ex11-1img02.jpg) |

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**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

<br> We hereby consent to the use of our report dated March 31, 2026 on the consolidated financial statements of StartEngine, Inc. (formerly StartEngine Crowdfunding, Inc.) as of December 31, 2025 and 2024 and for the years then ended included herein on the Regulation A Offering Circular of StartEngine, Inc. on Form 1-A.

<br> /s/ Haynie

Haynie

Salt Lake City, Utah

June 23, 2026

![](tm2618104d1_ex11-1img03.jpg)

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** StartEngine Inc.

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2014

**CIK:** 0001661779

**I.R.S. Employer Identification Number:** 46-5371570

**Primary Standard Industrial Classification Code:** 6199

**Total number of full-time employees:** 78

**Total number of part-time employees:** 0

**Address of Principal Executive Offices:** 4100 WEST ALAMEDA AVENUE, 3RD FLOOR, BURBANK, CA 91505

**Company Phone:** 800-317-2200

**Person to contact:** Jamie Ostrow

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount       |
|:---|:---|
| Cash and Cash Equivalents                | $30585016.00 |
| Investment Securities                    | $2706822.00  |
| Accounts and Notes Receivable            | $1847100.00  |
| Property, Plant and Equipment (PP&E)     | $142315.00   |
| Total Assets                             | $87884358.00 |
| Accounts Payable and Accrued Liabilities | $11852570.00 |
| Long-Term Debt                           | $0.00        |
| Total Liabilities                        | $15610358.00 |
| Total Stockholders' Equity               | $72274000.00 |
| Total Liabilities and Equity             | $87884358.00 |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $2504691.00  |
| Costs and Expenses Applicable to Revenues | $18190810.00 |
| Depreciation and Amortization             | $929658.00   |
| Net Income                                | $-2234904.00 |
| Earnings Per Share - Basic                | 0.00         |
| Earnings Per Share - Diluted              | 0.00         |

**Auditor Information**

| Metric          | Amount           |
|:---|:---|
| Name of Auditor | Haynie & Company |

### Outstanding Securities

| Class           |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Common Stock    |     758339621 | 000000N/A | N/A               |
| Preferred Stock |     399885861 | 000000N/A | N/A               |
| N/A             |             0 | 000000N/A | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** No

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** Yes

**Are there any resale securities by affiliates of the issuer?** Yes

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 28500000     |
| Number of securities outstanding                                | 758339621    |
| Price per security                                              | $1.60        |
| Issuer's aggregate offering price                               | $31920000.00 |
| Aggregate offering price of securities held by security holders | $13680000.00 |
| Aggregate price of securities offered concurrently              | $10446576.00 |
| Total aggregate offering price                                  | $56046576.00 |

**Anticipated Fees**

| Service Provider   | Name               | Fees       |
|:---|:---|:---|
| Auditor            | Haynie & Company   | $125000.00 |
| Legal              | CrowdCheck Law LLP | $60000.00  |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $0.00

### Item 5. Jurisdictions in Which Securities are to be Offered

- All States and Territories

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** StartEngine Inc. (f/k/a StartEngine Crowdfunding, Inc.)

**Title of Securities Issued:** Common Stock

**Total Amount of Securities Issued:** 7444153

**Amount of such securities sold by principal security holders:** 1075147

**Aggregate consideration:** The number of shares issued included Bonus Shares. $10,446,576 at $1.60 per share for the non-Bonus Shares.

**Basis for aggregate consideration:** Agrgre The number of shares sold included Bonus Shares. $1,508,788 at $1.60 per share for the non-Bonus Shares.

**Securities Act Exemption:** Regulation A+ and Regulation Crowdfunding.