# EDGAR Filing Document

**Accession Number:** 0001838432
**File Stem:** 0001104659-26-008451
**Filing Date:** 2026-1
**Character Count:** 272981
**Document Hash:** 3ac6617d5a31c3ef0cda331af7bbbeef
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-26-008451.hdr.sgml**: 20260130

**ACCESSION NUMBER**: 0001104659-26-008451

**CONFORMED SUBMISSION TYPE**: 253G2

**PUBLIC DOCUMENT COUNT**: 4

**FILED AS OF DATE**: 20260130

**DATE AS OF CHANGE**: 20260130

**FILER**: 

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

**FILING VALUES:**
- **FORM TYPE:** 253G2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12700
- **FILM NUMBER:** 26581340

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

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

**Filed Pursuant to Rule 253(g)(2)**

**File No. 024-12700**

**OFFERING CIRCULAR DATED JANUARY 30, 2026**

ATOMBEAM TECHNOLOGIES INC.

![](tm2533165-1_partiiimg001.jpg)

**AtomBeam Technologies Inc.**

**1036 Country Club Dr, Suite 200**

**Moraga, CA 94556**

**<u>https://atombeamtech.com/</u>**

**(415) 404-9888**

**UP TO 1,400,000 SHARES OF COMMON STOCK, PLUS UP TO 280,000 BONUS SHARES <sup>(1)</sup> FOR AN AGGREGATE OF 1,680,000 SHARES OF COMMON STOCK**

**The minimum investment in this offering is 43 shares of Common Stock, or $645, plus the 3.5% processing fee discussed below.**

**Investors in this offering will be required to grant a proxy to vote their shares to the Company's Chief Executive Officer, and while the proxy is in effect they will have no voting rights except those required by Delaware law.**

**SEE "SECURITIES BEING OFFERED" AT PAGE 41**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Price to Public** | **Underwriting<br> discount and<br> commissions<br> (2)** | **Proceeds to<br> issuer (3)** | **Proceeds to<br> other persons** |
| **Per share** | $15.00 | $0.525 | $14.475 |  |
| **Processing fee per share <sup>(4)</sup>** | $0.525 |  |  |  |
| **Per share plus processing fee** | $15.525 |  |  |  |
| **Total Maximum with processing fee** | $21735000<sup>(5)</sup> | $735000 | $20265000 |  |
| **Total Maximum Including Value of Bonus Shares and processing fee** | $25935000<sup>(5)</sup> | 735000 | $20265000<sup>(5)</sup> |  |

---

(1) AtomBeam
 Technologies Inc. (the "Company") is offering up to 1,400,000 shares of Common Stock, plus up to 280,000 additional
 shares of Common Stock eligible to be issued as bonus shares (the "Bonus Shares") to investors based upon an
 investor's investment level, whether an investor is entitled to the StartEngine Venture Club Bonus (f/k/a StartEngine OWNers
 Bonus), and whether the investors is a prior Company investor. Investor receiving the Bonus Shares will effectively receive a
 discount to our share price, and no additional consideration will be received by the Company for the issuance of Bonus Shares. If
 eligible for Bonus Shares, investors will receive a cumulative amount of Bonus Shares if they qualify under multiple eligibility
 categories for receipt of Bonus Shares, subject to a cap of 20% of the shares they purchase in a single transaction
 . *See* "Plan of Distribution" for further details.

(2) The Company has engaged
 StartEngine Primary, LLC ("StartEngine Primary") to act as an underwriter of this offering as set forth in "Plan
 of Distribution" and its affiliate StartEngine Crowdfunding, Inc. to perform administrative and technology-related
 functions in connection with this offering. The Company will pay a cash commission of 3.5% to StartEngine Primary on sales of the
 Common Stock in this offering. In addition, StartEngine Primary will be issued a number of shares of Common Stock equal to 1% of the gross
 proceeds sold in this offering (excluding Bonus Shares), rounded to the nearest whole share. Finally, the Company will pay a $20,000
 advance fee for reasonable accountable out of pocket expenses actually anticipated to be incurred by StartEngine Primary. Any unused
 portion of this fee not actually incurred by StartEngine Primary will be returned to the Company. FINRA fees will be paid by the
 Company. This does not include processing fees paid directly to StartEngine Primary by investors. This does not include
 processing fees paid directly to StartEngine Primary by investors as discussed in footnote 3 below.

(3) Investors will be required
 to pay directly to StartEngine Primary a non-refundable processing fee equal to 3.5% of the investment amount at the time of the
 investors' subscription (excluding Bonus Shares). The processing fee shall not exceed $700 for any investor. See
 "Plan of Distribution" for additional discussion of this processing fee. Assuming the offering is fully subscribed
 (excluding Bonus Shares and not reflecting the $700 cap), investors would pay StartEngine Primary total processing fees of $735,000. This amount is included in
 the Total Maximum offering amount since it counts towards the rolling 12-month maximum offering amount that the Company is permitted
 to raise under Regulation A. However, it is not included in the gross proceeds received by the Company. The "Proceeds to
 issuer" has been reduced to reflect the payment of the cash commission as well as the processing fee.

(4) Does not include effective discount that would result from the issuance of Bonus Shares. See "Plan of Distribution" for further details.

(5) While the Company will not 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 forms a part, is $25,935,000 composed of $20,265,000 is actual
proceeds to the company from investors, $735,000 for the processing fee, and the value of the Bonus Shares of $4,200,000. This full amount
of $25,935,000 is the total amount the company is offering towards its annual $75 million offering cap under Rule 251(a)(2).

The Company expects that the amount of expenses of the offering that it will pay will be approximately $300,000 not including commissions or state filing fees.

**The offering will terminate at the earlier of: (i) the date at which the maximum offering amount has been sold (ii) the date at which the offering is earlier terminated by the Company in its sole discretion or (iii) the date that is three years from the date in which this offering being qualified by the United States Securities and Exchange Commission (the "Commission"). At least every 12 months after this offering has been qualified by 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.**

**The Company has engaged Bryn Mawr Trust Company of Delaware LLC as the escrow agent (the "Escrow Agent") to hold funds 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, $645 (43), there is no minimum number of shares that needs to be sold in order for funds to be released to the Company 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. After each closing, funds tendered by investors will be made available to the Company. After the initial closing of the offering, the Company expects to hold closings on at least a monthly basis.**

**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 COMMISSION; HOWEVER THE COMMISSION 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, THE COMPANY ENCOURAGES YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, THE COMPANY ENCOURAGES YOU TO REFER TO www.investor.gov.**

**This offering is inherently risky. See "Risk Factors" on page 5.**

**Sales of these securities commenced on January 30, 2026.**

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

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

**In the event that the Company becomes a reporting company under the Securities Exchange Act of 1934, the Company intends to take advantage of the provisions that relate to "Emerging Growth Companies" under the JOBS Act of 2012. See "Summary -- Implications of Being an Emerging Growth Company."**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [**Summary**](#partii_001) | [**1**](#partii_001) |
| [**Risk Factors**](#partii_002) | [**5**](#partii_002) |
| [**Dilution**](#partii_003) | [**15**](#partii_003) |
| [**Plan of Distribution and Selling Securityholders**](#partii_004) | [**17**](#partii_004) |
| [**Use of Proceeds to Issuer**](#partii_005) | [**22**](#partii_005) |
| [**The Company's Business**](#partii_006) | [**23**](#partii_006) |
| [**The Company's Property**](#partii_007) | [**28**](#partii_007) |
| [**Management's Discussion and Analysis of Financial Condition and Results of Operations**](#partii_008) | [**29**](#partii_008) |
| [**Directors, Executive Officers and Significant Employees**](#partii_009) | [**35**](#partii_009) |
| [**Compensation of Directors and Officers**](#partii_010) | [**38**](#partii_010) |
| [**Security Ownership of Management and Certain Securityholders**](#partii_011) | [**39**](#partii_011) |
| [**Interest of Management and Others in Certain Transactions**](#partii_012) | [**40**](#partii_012) |
| [**Securities Being Offered**](#partii_013) | [**41**](#partii_013) |
| [**Financial Statements**](#partii_014) | [**44**](#partii_014) |

---

*In this Offering Circular, the term "AtomBeam", "AtomBeam Technologies", "we", "us" or "the Company" refers to AtomBeam Technologies Inc.*

*Other than in the table on the cover page, dollar amounts have been rounded to the closest whole dollar.*

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**

AtomBeam Technologies Inc. was organized in Delaware on August 17, 2017 as Drivewarp, LLC, the name under which it operated until January 29, 2019, when it changed its name and corporate form to a Delaware corporation. AtomBeam is a California-based software company with a sophisticated technology that we believe has the potential to change the way data generated by the "Internet of Things", or loT, is transmitted and stored. The Company's intellectual property is protected by, as of November 24, 2025, 159 issued and allowed patents with 227 patents pending.

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

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

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

**The Offering**

---

| | |
|:---|:---|
| **Securities Offered** | **Maximum of **1,680,000** shares of Common Stock, including up to up to **280,000** additional shares of Common Stock eligible to be issued as Bonus Shares for no additional consideration.** |
| **Minimum Investment** | $645.00 (43 shares of Common Stock) |
| **Common Stock outstanding before the offering <sup>(1)</sup>** | 19277290 |
| **Common Stock outstanding after the offering <sup>(1)</sup>** | 20,957,290 shares assuming the issuance of all Bonus Shares available to investors in this offering. |
| **Use of Proceeds** | The net proceeds of this offering will be primarily used to for research and development, sales and marketing and general corporate purposes. See "Use of Proceeds to Issuer" For additional information. |
| **Risk Factors** | Investing in our securities involves risks. See "Risk Factors" and other information included in this Offering Circular for a discussion of factors you should carefully consider before deciding to invest. |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Does not include 6,332,497 outstanding RSUs and outstanding options for 555,000 shares of Common Stock.

**Implications of Being an Emerging Growth Company**

We are not subject to the ongoing reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act") because we are not registering our securities under the Exchange Act. Rather, we will be subject to the more limited reporting requirements under Regulation A, including the obligation to electronically file:

● annual reports (including disclosure relating to our business operations for the preceding two fiscal years, or, if in existence for less than two years, since inception, related party transactions, beneficial ownership of the issuer's securities, executive officers and directors and certain executive compensation information, management's discussion and analysis ("MD&A") of the issuer's liquidity, capital resources, and results of operations, and two years of audited financial statements),

● semiannual reports (including disclosure primarily relating to the issuer's interim financial statements and MD&A), and

● current reports for certain material events.

In addition, at any time after completing reporting for the fiscal year in which our offering statement was qualified, if the securities of each class to which this offering statement relates are held of record by fewer than 300 persons and offers or sales are not ongoing, we may immediately suspend our ongoing reporting obligations under Regulation A. If and when we become subject to the ongoing reporting requirements of the Exchange Act, as an issuer with less than $1. 235 billion in total annual gross revenues during our last fiscal year and less than $1 billion in non-convertible debt issuances during the previous three years, we will qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and this status will be significant. An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

● will not be required to obtain an auditor attestation on our internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● will not be 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");

● will not be required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

● will be exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

● 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

● will be eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

We 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 initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, 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 also qualify, once listed, as a "smaller reporting company" under the Commission'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 cyber-attacks and the ability to prevent those attacks). 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.

***Risks Related to the Company***

***The auditor has included a "going concern" note in the audited financials.*** The Company's auditor has issued a "going concern" opinion on their financial statements, which means the Company may not be able to succeed as a business without additional financing. AtomBeam was incorporated in August 2017. AtomBeam is not yet profitable, which means that it relies upon funds from investors (along with any profits it makes from our business) to pay for its operations. The Company has incurred net losses since inception, including a loss of $7,823,097 for the year ended December 31, 2024, and used $6,511,712 of cash in operating activities during that period, approximately $543,000 per month. Although the Company held $8,500,580 of cash and cash equivalents at December 31, 2024, it expects to continue to incur operating losses while it commercializes its technology. These factors raise substantial doubt about the Company's ability to continue as a going concern for the twelve-month period following the date of issuance of these financial statements.

***We are an early stage company and have not yet generated any profits.*** AtomBeam Technologies Inc. was formed on August 17, 2017. Accordingly, the Company has a limited history upon which an evaluation of its performance and future prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. AtomBeam Technologies Inc. has incurred a net loss and has had limited revenues generated since inception. There is no assurance that we will be profitable in the next 3 years or generate sufficient revenues to pay dividends to the holders of the shares of Common Stock.

***We anticipate sustaining operating losses for the foreseeable future.*** It is anticipated that we will sustain operating losses for the foreseeable future as we expand our team, continue with research and development, and strive to gain customers and gain market share in our industry. Our ability to become profitable depends on our ability to expand our customer base. There can be no assurance that this will occur. Unanticipated problems and expenses are often encountered in offering new products which may impact whether the Company is successful. Furthermore, we may encounter substantial delays and unexpected expenses related to development, technological changes, marketing, regulatory requirements and changes to such requirements or other unforeseen difficulties. There can be no assurance that we will ever become profitable. If the Company sustains losses over an extended period of time, it may be unable to continue in business.

***Our technology continues to be developed, and it is unlikely that we will ever develop our technology to a point at which no further development is required.*** AtomBeam has and continues to develop complex technology that requires significant technical and regulatory expertise to develop, commercialize and update to meet evolving market and regulatory requirements. If we are unable to successfully develop and commercialize our technology and products, it will significantly affect our viability as a company.

***We may need to raise additional financing to support our operations, but we cannot be sure that we will be able to obtain additional financing on terms favorable to us when needed. If we are unable to obtain additional financing to meet our needs, our operations may be adversely affected or terminated.*** We have limited financial resources. There can be no assurance that we will be able to obtain financing to fund our operations in light of factors beyond our control such as the market demand for our securities, the state of financial markets generally, and other relevant factors. In addition, as part of its efforts to address its capital needs, the company may explore a range of strategic alternatives, which could include entering into partnerships or joint ventures, seeking additional equity or debt financing, or pursuing a sale or merger of the company. There can be no guarantee that any such strategic alternative will be available or successfully executed or that any amounts our investors will receive will be on favorable terms. Any sale of our Common Stock in the future may result in dilution to existing stockholders. Furthermore, there is no assurance that we will not incur debt in the future, that we will have sufficient funds to repay any future indebtedness or that we will not default on our future debts, which would thereby jeopardize our business viability. Finally, we may not be able to borrow or raise additional capital in the future to meet our needs or to otherwise provide the capital necessary to continue the development of our technology, which might result in the loss of some or all of your investment in our Common Stock.

***As we grow our business, we may not be able to manage our growth successfully.*** Growth may place significant strain on our financial, operational, and managerial resources. And, accordingly, 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:

● inadequate internal controls required for a company doing public offerings (including Regulation CF and Regulation A);

● delays in our ability to handle the volume of customers; and

● failure to properly review and supervise personnel to make sure we are compliant with applicable regulations.

This risk is illustrated by the fact that the Company has restated its previously reported financial statements as of and for the year ended December 31, 2023, and related disclosures. The restatement of the Company's financial statements is subsequent to an independent audit of the year 2024 financial statements. During the audit of the fiscal year 2024 financial statements, our auditor identified material posting and classification differences. Specifically, the Company bifurcated an embedded conversion feature in its senior convertible notes and recorded a related derivative liability, accrued previously unrecorded interest on those notes, recognized depreciation and amortization that had not been recorded on fixed and intangible assets, corrected the classification of certain working-capital items, and reclassified equity-issuance costs from financing cash flows to additional paid-in capital. The effects of the restatement, including the correction of all errors identified by Company's management, are reflected in the Company's financial statements and accompanying notes included herein.

***The Company depends on key personnel and faces challenges recruiting needed personnel.*** The Company's future success depends on the efforts of its key personnel. To be successful, the Company requires capable people to run its day-to-day operations. As the Company grows, it will need to attract and hire additional employees in sales, marketing, design, development, operations, finance, legal, human resources and other areas. Depending on the economic environment and the Company's performance, we may not be able to locate or attract qualified individuals for such positions when we need them. We may also make hiring mistakes, which can be costly in terms of resources spent in recruiting, hiring and investing in the incorrect individual and in the time delay in locating the right employee fit. If we are unable to attract, hire and retain the right talent or make too many hiring mistakes, it is likely our business will suffer from not having the right employees in the right positions at the right time. This would likely adversely impact the value of your investment. In particular, the Company is significantly dependent on retaining its CEO, Charles Yeomans and its Chief Financial Officer, Rajiv Bhagat.

***We face significant market competition.*** We compete with larger, established companies who currently have products on the market and/or various respective product development programs, including large telecommunications companies, satellite operators and other companies that are building additional bandwidth. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or create superior products than those developed by us. There can be no assurance that competitors will not render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.

We believe that our ability to compete successfully depends on a number of factors, including the type and quality of our products and the strength of our brand names, as well as many factors beyond our control. We may not be able to compete successfully against current or future competitors, and increased competition may result in price reductions, reduced profit margins, loss of market share and an inability to generate cash flows that are sufficient to maintain or expand the development and marketing of new products, any of which would adversely impact our results of operations and financial condition.

***Reliance on a single service or product is risky and if we fail to convince potential customers to use our product, our Company may not be successful.*** All of our current services are variants of one type of service and/or product, specifically the reduction of the size of data with software for which standard data compression algorithms is either not effective or for which we believe that the Company's software provides significantly superior performance. Compression algorithms are typically limited by their architecture to seeking repetitions of pattern within a single data file, or a batched group of files; the small size of files generated by machines generally makes the use of compression for individual files typically ineffective and thus compression is generally not used unless the application is not sensitive to latency, in which case multiple files can be grouped to make them large enough in aggregate for compression to be effective. This limitation does not apply to Neurpac, for which the size of the individual files is generally irrelevant to the performance of the software. For many types of data, Neurpac enables significant reduction of the size of files in real time, effectively increasing the available bandwidth for a given network for the transmission of machine generated data. The first version of the Company's first commercial product, Neurpac, was released commercially as a Software as a Service ("SaaS") beta product in April 2024 and Neurpac 1.0 was commercially released in February 2025. To date, we have received minimal revenues from this product. We released the on-premise version of Neurpac in December 2025. The on-premise product was developed to meet the demands of prospects. We intend to focus our development and support efforts on the on-premise product, based on market demand, and improve on its capabilities, and due to customer preferences we are not intending to continue to support the SaaS version of Neurpac. Our second product, Neurcom, has not yet been released either as a software product or as a SaaS, and so the Company is currently reliant on the Neurpac as its only released product. Relying heavily on a single service or product can be risky, as changes in market conditions, technological advances, shifts in consumer preferences, or other changes can adversely impact the demand for the product or service, potentially leading to revenue declines or even business failure. Some of our products are still in the prototype phase and might never be operational products. Even if we develop an operational product, the product may never be used to engage in transactions, or its use may be far more limited than the Company anticipates. It is possible that the failure to release the product is the result of a change in business model upon the Company's making a determination that the business model, or some other factor, will not be in the best interest of the Company and its stockholders.

***Developing new products and technologies entails significant risks and uncertainties. .*** We released the first version of our Neurpac product as a software as a service ("SaaS") in beta version in April 2024 and as version 1.0 in February 2025. We released the on-premise version of Neurpac in December 2025. The on-premise product was developed to meet the demands of prospects. We intend to focus our development and support efforts on the on-premise product, based on market demand, and improve on its capabilities, and due to customer preferences we are not intending to continue to support the SaaS version of Neurpac. Further, we plan to continue to innovate and to opportunistically look at ways to build on existing technology. (see "The Company's Business – Other Developments" below). There are substantial risks and uncertainties associated with these efforts, both in the development of these new products and services, as well as the execution and delivery of these products and services to our customers. We may invest significant time and resources into these endeavors, and there is no guarantee we will be successful in our development and/or launch of such products and services. Initial timetables for the introduction and development of such new products or services may not be achieved and price and profitability targets may not prove feasible. We may not be successful in introducing these new products and services in response to industry trends or developments in technology, or those new products may not achieve market acceptance. As a result, we could lose business, be forced to price products and services on less advantageous terms to retain or attract clients, or be subject to cost increases. For instance, delays or cost overruns in the development of instantiation of our software as a SaaS and failure of the product to meet our performance estimates may be caused by, among other things, unanticipated technological hurdles, changes to design, and regulatory hurdles. Any of these events could materially and adversely affect our operating performance and results of operations.

***In order for the Company to compete and grow, it must attract, recruit, retain and develop the necessary personnel who have the needed experience.*** Recruiting and retaining highly qualified personnel, consultants and advisors is critical to our success. These demands may require us to hire additional personnel, consultants and advisors and will require our existing management personnel to develop additional expertise. We face intense competition for personnel, consultants and advisors. The failure to attract and retain personnel, consultants and advisors or to develop such expertise could delay or halt the development and commercialization of our product candidates. Specifically, our software is classed as middleware, which requires users to integrate it into their existing software. This limits the accessibility of the software to engineers who have the technological sophistication to undertake this integration process, and costs money and time, which may limit the appeal of AtomBeam's product to the broader market. If we experience difficulties in hiring and retaining personnel in key positions, or in hiring consultants and advisors, we could suffer from delays in product development, loss of customers and sales and diversion of management resources, which could adversely affect operating results. Our consultants and advisors may be employed by third parties and may have commitments under consulting or advisory contracts with third parties that may limit their availability to us.

***We rely on other companies to provide certain hardware and software for our products.*** We depend on these suppliers and subcontractors to meet our contractual obligations to our customers and conduct our operations. While we are not dependent on any one supplier for any of our hardware or software, our ability to meet our obligations to our customers may be adversely affected if suppliers or subcontractors do not provide the agreed-upon supplies or perform the agreed-upon services in compliance with customer requirements and in a timely and cost-effective manner. Likewise, the quality of our products may be adversely impacted if companies to whom we delegate manufacture of major components or subsystems for our products, or from whom we acquire such items, do not provide major components and subsystems which meet required specifications and perform to our and our customers' expectations. If we encounter problems with one or more of these parties and they fail to perform to expectations, it could have a material adverse impact on the Company. These include various systems such as Jira, Amazon Web Services, Microsoft Office and other systems used by the Company.

***We rely on third parties to provide services essential to the success of our business.*** We rely on third parties to provide a variety of essential business functions for us, including software development, instantiation in hardware of the Company's software, cloud services, accounting, legal work, public relations, advertising, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other suppliers' operations could materially and adversely affect our business. As a result, your investment could be adversely impacted by our reliance on third parties and their performance.

***Unproven market for AtomBeam's software which has yet to be evaluated.*** AtomBeam's software is highly innovative and represents a new category for technology products. As such, until the Company achieves substantial revenue, there can be no assurance that a market exists for the Company's product. AtomBeam necessarily depends on a recognition of the economic value its software provides to prospective customers; if prospective customers do not find such economic value to be present, the Company may not achieve its financial objectives.

***Our products could fail to achieve the sales projections we expect.*** We have only recently released our first SaaS product and we still have several others in development. Our growth expectations are based on an assumption that with an increased advertising and marketing budget our products (both our current one as well as the other ones once developed) will be able to gain traction in the marketplace. It is possible that our products will fail to gain market acceptance for any number of reasons. If the products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

***Our trademarks, patents, trade secrets and other intellectual property could be unenforceable or ineffective.*** One of the Company's most valuable assets is its intellectual property. The Company owns a trademark for "AtomBeam" and has copyrights, Internet domain names, and trade secrets. To protect our intellectual property, the Company has an extensive portfolio of issued, allowed and pending patents. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. We also have pending patents that may not be protected. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may negatively impact the Company's business and financial resources and your investment in us.

***The cost of enforcing our trademarks and copyrights could prevent us from enforcing them.*** Trademark and patent litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or patents, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or patent(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or patent(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into commercial contracts and licenses and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or patent(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

***Successful infringement claims against us could result in significant monetary liability or prevent us from selling some of our products.*** We believe our products and technology may be highly disruptive to a very large and growing market. Our competitors are well capitalized with significant intellectual property protection and resources and they (and/or patent trolls) may initiate infringement lawsuits against our Company. Such litigation could be expensive and could also prevent us from selling our products, which would significantly harm our ability to grow our business as planned.

***Potential for theft of our intellectual property may harm our results.*** The Company's product is software, and as such, the potential exists for a third party to copy or develop on their own a version of the Company's product. The Company is diligent in its patent filings and intends to vigorously defend its intellectual property, and also maintains a secure approach to software development. The Company, however, may not be aware of copying of its software or infringement of its patents by third parties, and even if the Company is made aware of such copying or infringement, it may not be successful in defending its rights to its intellectual property.

**Risks Related to Defense Contracting**

***We depend heavily on contracts with the U.S. Government for a substantial portion of our business.*** Changes in the U.S. Government's priorities, or delays or reductions in spending could have a material adverse effect on our business. We currently derive most of our sales from work performed under U.S. Government contracts. Budget uncertainty, the potential for U.S. Government shutdowns, the use of continuing resolutions, and the federal debt ceiling can adversely affect our industry and the funding for our programs. If appropriations are delayed or a government shutdown were to occur and were to continue for an extended period of time, we could be at risk of program cancellations and other disruptions and nonpayment. When the U.S. Government operates under a continuing resolution, new contract and program starts are restricted and funding for our programs may be unavailable, reduced or delayed. Shifting funding priorities or federal budget compromises, also could result in reductions in overall defense spending on an absolute or inflation-adjusted basis, which could adversely impact our business.

Our contracts with the U.S. Government are conditioned upon the continuing availability of Congressional appropriations. Congress usually appropriates funds on a fiscal year basis even though contract performance may extend over many years. Consequently, contracts are often partially funded initially and additional funds are committed only as Congress makes further appropriations over time. To the extent we incur costs in excess of funds obligated on a contract or in advance of a contract award or contract definitization, we are at risk of not being reimbursed for those costs unless and until additional funds are obligated under the contract or the contract is successfully awarded, definitized and funded, which could adversely affect our results of operations, financial condition and cash flows.

***We are subject to extensive procurement laws and regulations, including those that enable the U.S. Government to terminate contracts for convenience.*** Our business and reputation could be adversely affected if we or those we do business with fail to comply with or adapt to existing or new procurement laws and regulations, which are regularly evolving. We and others with which we do business must comply with laws and regulations relating to the award, administration and performance of U.S. Government contracts. Government contract laws and regulations affect how we do business with our customers and impose certain risks and costs on our business. A violation of these laws and regulations by us, our employees, others working on our behalf, a supplier or a joint venture partner could harm our reputation and result in the imposition of fines and penalties, the termination of our contracts, suspension or debarment from bidding on or being awarded contracts, loss of our ability to export products or perform services and civil or criminal investigations or proceedings. In addition, costs to comply with new government regulations can increase our costs, reduce our margins and adversely affect our competitiveness.

Government contract laws and regulations can impose terms or obligations that are different than those typically found in commercial transactions. One of the significant differences is that the U.S. Government may terminate any of our government contracts, not only for default based on our performance, but also at its convenience. Generally, prime contractors have a similar right under subcontracts related to government contracts. If a contract is terminated for convenience, we typically would be entitled to receive payments for our allowable costs incurred and the proportionate share of fees or earnings for the work performed. However, to the extent insufficient funds have been appropriated by the U.S. Government to the program to cover our costs upon a termination for convenience, the U.S. Government may assert that it is not required to appropriate additional funding. If a contract is terminated for default, the U.S. Government could make claims to reduce the contract value or recover its procurement costs and could assess other special penalties, exposing us to liability and adversely affecting our ability to compete for future contracts and orders. In addition, the U.S. Government could terminate a prime contract under which we are a subcontractor, notwithstanding the fact that our performance and the quality of the products or services we delivered were consistent with our contractual obligations as a subcontractor. Similarly, the U.S. Government could indirectly terminate a program or contract by not appropriating funding. The decision to terminate programs or contracts for convenience or default could adversely affect our business and future financial performance.

***We are subject to audit by our customers on government contracts and the results of those audits could have an adverse effect on our business, reputation and results of operations.*** U.S. Government agencies, including the Defense Contract Audit Agency, the Defense Contract Management Agency and various agency Inspectors General, routinely audit and investigate government contractors. These agencies review a contractor's compliance with applicable laws, regulations and contract terms, regarding, among other things, contract pricing, contract performance, cost structure and business systems.

If an audit or investigation uncovers improper or illegal activities, we may be subject to civil or criminal penalties and administrative sanctions, including reductions of the value of contracts, contract modifications or terminations, forfeiture of profits, suspension of payments, penalties, fines or suspension or debarment from doing business with the U.S. Government. Suspension or debarment could have a material adverse effect on us because of our dependence on contracts with the U.S. Government. In addition, we could suffer serious reputational harm if allegations of impropriety were made against us. Similar government oversight and risks to our business and reputation exist in most other countries where we conduct business.

***Exports and imports of certain of our products may be subject to various export control, sanctions, and import regulations and may require authorization from regulatory agencies of the U.S. or other countries.*** We must comply with various laws and regulations relating to the export and import of products, services, and technology from and into the U.S. and other countries having jurisdiction over our operations. In the U.S., these laws and regulations include, among others, the Export Administration Regulations (EAR) administered by the U.S. Department of Commerce, the International Traffic in Arms Regulations (ITAR) administered by the U.S. Department of State, embargoes and sanctions regulations administered by the U.S. Department of the Treasury, and import regulations administered by the U.S. Department of Homeland Security and the U.S. Department of Justice. Certain of our products, services, and technologies have military or strategic applications and are on the U.S. Munitions List of the ITAR, the Commerce Control List of the EAR, or are otherwise subject to the EAR and/or the U.S. Munitions Import List, and we are required to obtain licenses and authorizations from the appropriate U.S. government agencies before exporting these products out of the U.S. or importing these products into the U.S. U.S. foreign policy or the foreign policy of other licensing jurisdictions may affect the licensing process or otherwise prevent us from engaging in business dealings with certain individuals, entities, or countries. Any failure by us, our customers, or our suppliers to comply with these laws and regulations could result in civil or criminal penalties, fines, seizure of our products, adverse publicity, restrictions on our ability to engage in export or import transactions, or the suspension or debarment from doing business with the U.S. government. Moreover, any changes in export control, sanctions, or import regulations may further restrict the export or import of our products or services, and the possibility of such changes requires constant monitoring to ensure we remain compliant. Our ability to obtain required licenses and authorizations on a timely basis, or at all, is subject to risks and uncertainties, including changing laws, regulations, or foreign policies, delays in Congressional action, or geopolitical and other factors. If we are not successful in obtaining or maintaining the necessary licenses or authorizations in a timely manner, our sales relating to those approvals may be prevented or delayed, and revenue and profit previously recognized may be reversed. Any restrictions on the export or import of our products or product lines could have a material adverse effect on our competitive position, results of operations, financial condition, or liquidity.

***Risks Related to Cybersecurity***

***If our security measures are breached or unauthorized access to individually identifiable biometric or other personally identifiable information is otherwise obtained, our reputation may be harmed, and we may incur significant liabilities.*** In the ordinary course of our business, we may collect and store sensitive data, including personally identifiable information ("PII"), owned or controlled by ourselves or our customers, and other parties. We communicate sensitive data electronically, and through relationships with multiple third-party vendors and their subcontractors. These applications and data encompass a wide variety of business-critical information, including research and development information, patient data, commercial information, and business and financial information. We face a number of risks relative to protecting this critical information, including loss of access risk, inappropriate use or disclosure, inappropriate modification, and the risk of our being unable to adequately monitor, audit, and modify our controls over our critical information. This risk extends to the third-party vendors and subcontractors we use to manage this sensitive data. Data breaches occur at all levels of corporate sophistication (including at companies with significantly greater resources and security measures than our own) and the resulting fallout stemming from these breaches can be costly, time-consuming, and damaging to a company's reputation. Further, data breaches need not occur from malicious attack or phishing only. Often, employee carelessness can result in sharing PII with a much wider audience than intended. Consequences of such data breaches could result in fines, litigation expenses, costs of implementing better systems, and the damage of negative publicity, all of which could have a material adverse effect on our business operations and financial condition.

***Privacy and data security laws and regulations could require us to make changes to our business, impose additional costs on us and reduce the demand for our software solutions.*** The design of our current and future products is such that they will generally transmit a significant amount of personal or identifying information through our platform. Privacy and data security have become significant issues in the United States and in other jurisdictions where we may offer our video surveillance solutions. The regulatory framework relating to privacy and data security issues worldwide is evolving rapidly and is likely to remain uncertain for the foreseeable future. Federal, state and foreign government bodies and agencies have in the past adopted, or may in the future adopt, laws and regulations regarding the collection, use, processing, storage and disclosure of personal or identifying information obtained from customers and other individuals. In addition to government regulation, privacy advocates and industry groups may propose various self-regulatory standards that may legally or contractually apply to our business. Because the interpretation and application of many privacy and data security laws, regulations and applicable industry standards are uncertain, it is possible that these laws, regulations and standards may be interpreted and applied in a manner inconsistent with our existing privacy and data management practices. As we expand into new jurisdictions or verticals, we will need to understand and comply with various new requirements applicable in those jurisdictions or verticals.

To the extent applicable to our business or the businesses of our customers, these laws, regulations and industry standards could have negative effects on our business, including by increasing our costs and operating expenses, and delaying or impeding our deployment of new core functionality and products. Compliance with these laws, regulations and industry standards requires significant management time and attention, and failure to comply could result in negative publicity, subject us to fines or penalties or result in demands that we modify or cease existing business practices. In addition, the costs of compliance with, and other burdens imposed by, such laws, regulations and industry standards may adversely affect our customers' ability or desire to collect, use, process and store personal information using our software solutions, which could reduce overall demand for them. Even the perception of privacy and data security concerns, whether or not valid, may inhibit market acceptance of our software solutions in certain verticals. Any of these outcomes could adversely affect our business and operating results.

***The Company is 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 AtomBeam or in its computer systems could reduce the attractiveness of the 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. Any disruptions of services or cyber- attacks either on our technology provider or on AtomBeam could harm our reputation and materially negatively impact our financial condition and business.

***Risks Related to Regulations***

***Our business is and may become subject to complex and evolving U.S. and foreign laws and regulations regarding privacy, data use and data protection, content, competition, safety and consumer protection, e-commerce, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in claims, changes to our products and business practices, monetary penalties, increased cost of operations, or declines in user growth or engagement, or otherwise harm our business.***

We are and may become subject to a variety of laws and regulations in the United States and abroad that involve matters central to our business and business plan, including privacy, data use, data protection and personal information, biometrics, encryption, rights of publicity, content, integrity, intellectual property, advertising, marketing, distribution, data security, data retention and deletion, data localization and storage, data disclosure, artificial intelligence and machine learning, electronic contracts and other communications, competition, protection of minors, consumer protection, civil rights, accessibility, telecommunications, product liability, e-commerce, taxation, economic or other trade controls including sanctions, anti-corruption and political law compliance, securities law compliance, and online payment services. The introduction of new products, expansion of our activities in certain jurisdictions, or other actions that we may take may subject us to additional laws, regulations, or other government scrutiny. In addition, foreign data protection, privacy, content, competition, consumer protection, and other laws and regulations can impose different obligations or be more restrictive than those in the United States.

These U.S. federal, state, and foreign laws and regulations, which in some cases can be enforced by private parties in addition to government entities, are constantly evolving and can be subject to significant change. As a result, the application, interpretation, and enforcement of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate, and may be interpreted and applied inconsistently from jurisdiction to jurisdiction and inconsistently with our current policies and practices. For example, regulatory or legislative actions or litigation affecting the manner in which we display content to our users, moderate content, or obtain consent to various practices could adversely affect user growth and engagement. Such actions could affect the manner in which we provide our services or adversely affect our financial results.

These laws and regulations, as well as any associated claims, inquiries, or investigations or any other government actions, have in the past led to, and may in the future lead to, unfavorable outcomes including increased compliance costs, loss of revenue, delays or impediments in the development of new products, negative publicity and reputational harm, increased operating costs, diversion of management time and attention, and remedies that harm our business, including fines or demands or orders that we modify or cease existing business practices.

***Risks Related to the Securities***

***Any valuation at this stage is difficult to assess and is purely speculative.*** The valuation for the offering was established by the Company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. If you decide to invest based on our speculative valuation you might lose the entirety of your investment.

***Investors in this offering will sign our subscription agreement which contains a voting proxy and will have no influence on the Company's decisions.*** The Common Stock that an investor is buying has no effective voting rights attached to them because in order to purchase the Common Stock investors will appoint the Company's CEO as their proxy. This means that you will have no rights in dictating on how the Company will be run. You are trusting in management discretion in making good business decisions that will grow your investments. Furthermore, in the event of a liquidation of our Company, you will only be paid out if there is any cash remaining after all of the creditors of our Company have been paid out.

***There is no current market for our capital stock, so you may not be able to sell your shares. Additionally, our capital stock, is subject to transfer restrictions.*** There is no formal marketplace for the resale of the Company's Common Stock, and the Company currently has no plans to list any of its shares on any over-the-counter (OTC), or similar, exchange. These securities are illiquid and there will not be an official current price for them, as there would be if the Company were a publicly-traded company with a listing on a stock exchange. Investors should assume that they may not be able to liquidate their investment for some time, or be able to pledge their shares as collateral. Since the Company has not established a trading forum for the Common Stock, there will be no easy way to know what the Common Stock is "worth" at any time. Moreover, the Company may never undergo a liquidity event such as a sale of the Company or an IPO. If such a liquidity event does not occur, investor could be left holding their shares until the Company runs out of capital and liquidates.

Additionally, our Bylaws also grant the Company the right of first refusal in the event a stockholder seeks to transfer its shares. For details, see "The Company's Securities – Bylaws – Right of First Refusal."

***The Company's management has discretion as to use of proceeds.*** The net proceeds from this offering will be used for the purposes described under "Use of Proceeds." The Company reserves the right to use the funds obtained from this offering for other similar purposes not presently contemplated that it deems to be in the best interests of the Company and its investors in order to address changed circumstances or opportunities. As a result of the foregoing, the success of the Company will be substantially dependent upon the discretion and judgment of management with respect to application and allocation of the net proceeds of this offering. Investors for the Common Stock hereby will be entrusting their funds to the Company's management, upon whose judgment and discretion the investors must depend.

***There is no minimum amount set as a condition to closing this offering.*** Because this is a "best efforts" offering with no minimum, provided that an investor purchases shares in the amount of the minimum investment, $645 (43 shares), there is no minimum number of shares that needs to be sold in order for funds to be released to the Company and for this offering to close, which may mean that the Company does not receive sufficient funds to cover the cost of this offering and/or pursue its business plan.

***We are offering Bonus Shares, which is effectively a discount on our stock price, to some investors in this offering.*** Certain investors in this offering are entitled to receive additional shares of Common Stock = that effectively provide a discount on price based on the amount invested as well as their status. The number of Bonus Shares is capped at 20% and will be determined based the amount of money they invest in this offering as well as their status including as prior investors, reservation holders or members of the StartEngine Venture Club bonus program ("StartEngine Venture Club members"). For example, an investor who invests $30,000 in this offering (not including the 3.5% processing fee), who is eligible for the maximum amount of Bonus Shares - 20% Bonus Shares would receive 2,000 shares of the Company's Common Stock plus an additional 400 Bonus Shares, effectively purchasing 2,400 shares of Common Stock for the same price paid for 2,000 shares of Common Stock or effectively paying a per share price of $12.50 (prior to reflecting the 3.5% processing fee). For more details, including all of the Bonus Shares being offered, see "Plan of Distribution - Bonus Shares for StartEngine Venture Club" and "Plan of Distribution – Perks and Additional Bonus Shares" below. Consequently, the value of shares of investors who pay the full price or are entitled to a smaller amount of Bonus Shares in this offering will be immediately diluted by investments made by investors entitled to the discount, who will pay less for their stake in the Company.

***We expect to raise additional capital through equity offerings, which may include providing discounts to large investors.*** Therefore, your interest in the Company is likely to continue to be diluted. We may offer additional shares of our stock, including in a concurrent private offering, which would dilute the ownership percentage of investors in this offering. Further, we may offer discounts on the price paid for our equity to investors investing significant amounts of money. This discount may immediately dilute the value of your stock. Therefore, the value of shares of investors who pay the full price in this offering may be diluted by investments made by investors entitled to the discount, who may pay less for the same stake in the Company. Moreover, additional securities in a concurrent private offering or in future offerings may be offered at a lower valuation, which would dilute the interest of investors in this offering. See "Dilution" for more information, especially the impact of a "down round."

***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. 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.

***Our Bylaws and Subscription agreement contain exclusive forum provisions for certain claims, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.***

Our Bylaws, to the fullest extent permitted by law, provides that the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the DGCL, our Charter; our Bylaws, or any action asserting a claim against us that is governed by the internal affairs doctrine. For suits brought under the Securities Act or the Exchange Act the federal courts of the United States shall have exclusive jurisdiction. Our subscription agreement which you will sign to invest in this offering contains a similar provision for suits arising from such agreements.

Any person or entity purchasing or otherwise acquiring or holding any interest in any of our securities will be deemed to have notice of and consented to our exclusive forum provisions, including the federal forum provision. These provisions may limit our stockholders' ability to bring a claim in a judicial forum they find favorable for disputes with us or our directors, officers, or other employees, which may discourage lawsuits against us and our directors, officers, and other employees. Alternatively, if a court were to find the choice of forum provision contained in our Bylaws to be inapplicable or unenforceable in an action, we may incur additional costs associated with resolving such action in other jurisdictions, which could harm our business, operating results, 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 agreement other than those arising 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. 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 not arising under the federal securities laws against the Company in connection with matters arising under the subscription agreement, 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 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 agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of the Company's securities or by the Company of compliance with any substantive provision of the federal securities laws and the rules and regulations promulgated under those laws.

In addition, when the shares are transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to the shares or to the transferor with regard to ownership of the shares, that were in effect immediately prior to the transfer of the shares, including but not limited to the subscription agreement.

***You may not be able to participate in potential merger and acquisition transactions*.** Investors should be aware that under Rule 145 under the Securities Act of 1933 if they invest in a company through Regulation A and that company becomes involved in a merger or acquisition, there may be significant regulatory implications. Under Rule 145, when a company plans to acquire another and offers its shares as part of the deal, the transaction may be deemed an offer of securities to the target company's investors, because investors who can vote (or for whom a proxy is voting) are making an investment decision regarding the securities they would receive. All investors, even those with non-voting shares, may have rights with respect to the merger depending on state laws. This means the acquirer's "offer" to the target's investors would require registration or an exemption from registration (such as Reg D or Reg CF), the burden of which can be substantial. As a result, non-accredited investors may have their shares repurchased rather than receiving shares in the acquiring company or participating in the acquisition. This may result in investors' shares being repurchased at a value determined by a third party, which may be at a lesser value than the original purchase price. Investors should consider the possibility of a cash buyout in such circumstances, which may not be commensurate with the long-term investment they anticipate.

**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 over 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 compares the price that new investors are paying for their shares with the effective cash price paid by existing shareholders assuming that the shares are sold at $15.00 per share. The schedule presents shares and pricing as issued and reflects all transactions since inception, which gives investors a better picture of what they will pay for their investment compared to the Company's insiders than just including such transactions for the last 12 months, which is what the SEC requires.

The following table presents the approximate effective cash price paid for all shares and potential shares issuable by the Company as of January 7, 2026.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Class of Securities** | **Date<br> Issued** | **Issued Shares** | **Potential<br> Shares** | **Total Issued<br> and Potential<br> Shares** | **Effective Cash<br> Price Per Share<br> at Issuance or<br> Potential<br> Conversion** |
| Common Shares (1) | 2019-2021 | 7321367 | 0 | 7321367 | $0.06 |
| Options (2) | 2019 |  | 555000 | 555000 | $0.08 |
| Restricted Stock Units (3) | 2022-2025 |  | 6332497 | 6332497 | $- |
| Common Stock (4) | 2019-2023 | 3232014 |  | 3232014 | $0.52 |
| Convertible Notes - CrowdFunding (5) | 2021 | 2893436 |  | 2893436 | $0.94 |
| Convertible Notes (6) | 2022 - 2023 | 706566 |  | 706566 | $2.59 |
| Common Shares - CrowdFunding (7) | 2022-2023 | 701661 |  | 701661 | $4.27 |
| Common Shares - CrowdFunding (8) | 2023 | 562261 |  | 562261 | $5.45 |
| Common Shares - Reg A (9) | 2024 - 2025 | 2727806 |  | 2727806 | $6.79 |
| Common Shares - Reg D Private Placement (10) | 2024 - 2025 | 432335 |  | 432335 | $5.60 |
| Common Shares - CrowdFunding (11) | 2025 | 525283 |  | 525283 | $9.04 |
| Common Shares - Reg D Private Placement (12) | 2025 | 174561 |  | 174561 | $7.67 |
| Total Common Share Equivalents |  | 19277290 | 6887497 | 26164787 | $0.48 |
| <u>Investors in this Offering, assuming $21,000,000 raised</u> |  |  |  |  |  |
| Common Shares (13) | 2025 | 1400000 | 0 | 1400000 | $15.00 |
| Total, including this Offering |  | 20677290 | 6887497 | 27564787 | $2.19 |

---

---

| | |
|:---|:---|
| **<u>Notes:</u>** | **<u>Notes:</u>** |
| (1) | Common Shares issued at various prices. Amount shown is the weighted average. |
| (2) | Stock Option Pricing is the weighted average of the stock options exercise price |
| (3) | Company received zero payments from recipients when Restricted Stock Units were issued to recipients. |
| (4) | Issued from the conversion of convertible notes. |
| (5) | Convertible Notes issued to CrowdFunding investors were converted at $0.94 per share. |
| (6) | Convertible Notes issued through Private Placements were converted at weighted average of $2.59 per share |
| (7) | Common Shares issued to CrowdFunding investors were issued at $5.20 per share; including bonus shares and shares issued to StartEngine, the Effective Price Per Share is $4.27. |
| (8) | Common Shares issued to CrowdFunding investors were issued at $6.00 per share; including bonus shares and shares issued to StartEngine, the Effective Price Per Share is $5.45. |
| (9) | Common Shares issued to Reg A investors were issued at $8.00 per share; including bonus shares and shares issued to StartEngine, the Effective Price Per Share is $6.79 |
| (10) | Common Shares issued to Reg D investors were issued at $5.40 to $6.00 per share; including bonus shares, the Effective Price Per Share is $5.60. |
| (11) | Common Shares issued to CrowdFunding investors were issued at $12.50 per share; including bonus shares and shares issued to StartEngine, the Effective Price Per Share is $9.04 |
| (12) | Common Shares issued to Reg D investors were issued at $7.50 to $8.00 per share; the Effective Price Per Share is $7.67 per share. |
| (13) | Assumes 1,400,000 Common Shares issued at $15.00 per share. |

---

***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 a larger 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 an 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 early-stage companies 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):

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

● In December 2025 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.

● 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, and 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 cause drastic changes to the value of each share, ownership percentage, voting control, and earnings per share.

**PLAN OF DISTRIBUTION**

**Plan of Distribution**

The Company is offering up to 1,680,000 shares of Common Stock, including up to 280,000 shares of Common Stock eligible to be issued as Bonus Shares to investors based upon an investor's investment level, whether an investor is entitled to the StartEngine Venture Club Bonus, and whether the investors is a prior Company investor, as described in this Offering Circular. Investor receiving the Bonus Shares will effectively receive a discount to our share price, and no additional consideration will be received by the Company for the issuance of Bonus Shares. The maximum offering amount for cash consideration is $21,000,000 (not including the processing fee).

The Company has engaged StartEngine Primary LLC ("StartEngine Primary") as its placement agent to assist in the placement of its securities in those states it is registered to undertake such activities, including soliciting potential investors on a best efforts basis. As such, StartEngine Primary is an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act. StartEngine Primary is under no obligation to purchase any securities or arrange for the sale of any specific number or dollar amount of securities. Persons who desire information about the offering may find it at www.startengine.com. This Offering Circular will be furnished to prospective investors via download 24 hours per day, 7 days per week on the startengine.com website.

**Commissions, Discounts, Expenses and Fees**

The following table shows the maximum discounts, commissions, and fees payable to StartEngine Primary in connection with this offering by the Company:

---

| | |
|:---|:---|
| StartEngine processing fee paid by investors to StartEngine (1) | $735000 |
| StartEngine commission paid by the Company to StartEngine (2) | $735000 |
| Shares issued to StartEngine (approximate value) (3) | $210000 |
| StartEngine out of pocket expenses paid by the Company (4) | $20000 |

---

(1) Investors
 will be required to pay directly to StartEngine Primary a processing fee equal to 3.5% of the investment amount at the time of the
 investors' subscription. 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, $645.00 (43 shares). The 3.5% processing fee will not
 be refunded in any event. The processing fee shall not exceed $700 for any investor.

(2) StartEngine Primary will receive commissions paid by the Company of 3.5% of the offering proceeds.

(3) StartEngine Primary will be issued the number of shares of Common Stock equal to 1% of the gross proceeds raised in this offering (excluding Bonus Shares), rounded to the nearest whole share. Assuming the Company raises the maximum amount in this offering, it would issue 14,000 shares of Common Stock to StartEngine Primary valued at $210,000.

(4) The Company will also pay $20,000 to StartEngine Primary for out of pocket accountable expenses paid prior to commencing. This fee will be used for the purpose of coordinating filings with regulators and conducting a compliance review of the Company's offering. Any portion of this amount not expended and accounted for will be returned to the Company.

Assuming the full amount of the offering is raised, the Company estimates that the total value of the commissions, discounts, expense and fees of the offering payable or owed by the Company and the investors to StartEngine Primary will be approximately $1,700,000. No fees or commissions will be paid with respect to the issuance of Bonus Shares in this offering.

The Company will pay a cash commission of 3.5% to StartEngine Primary on sales of the Shares, and the Company will issue StartEngine Primary a number of Shares equal to 1% of the Shares sold through StartEngine Primary (excluding Bonus Shares). The Company will also pay a $20,000 advance fee for reasonable accountable out of pocket expenses actually anticipated to be incurred by StartEngine Primary. Any unused portion of this fee not actually incurred by StartEngine Primary will be returned to the Company. FINRA fees will be paid by the Company. This does not include processing fees paid directly to StartEngine Primary by investors. StartEngine Primary will charge you a non-refundable processing fee equal to 3.5% of the amount you invest at the time you subscribe for our securities. The processing fee shall not exceed $700 for any investor.

StartEngine Primary will comply with Lock-Up Restriction required by FINRA Rule 5110(e)(1), not selling, transferring, assigning, pledging, or hypothecating or subjecting such to any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the securities commission for a period of 180 days beginning on the date of commencement of sales of the public equity offering with respect to the Securities Commission, unless FINRA Rule 5110(e)(2) applies. Pursuant to FINRA Rule 5110(g), StartEngine Primary will not accept a securities commission in options, warrants or convertibles which violates 5110(g) including but not limited to (a) is exercisable or convertible more than five years from the commencement of sales of the public offering; (b) has more than one demand registration right at the issuer's expense; (c) has a demand registration right with a duration of more than five years from the commencement of sales of the public offering; (d) has a piggyback registration right with a duration of more than seven years from the commencement of sales of the public offering; (e) has anti-dilution terms that allow the participating members to receive more shares or to exercise at a lower price than originally agreed upon at the time of the public offering, when the public shareholders have not been proportionally affected by a stock split, stock dividend, or other similar event; or (f) has anti-dilution terms that allow the participating members to receive or accrue cash dividends prior to the exercise or conversion of the security.

***Other Terms***

StartEngine Primary has also agreed to perform the following services in exchange for the compensation discussed above:

● design, build, and create the Company's campaign page,

● provide the Company with a dedicated account manager and marketing consulting services,

● provide a standard purchase agreement to execute between the Company and investors, which may be used at Company's option and

● coordinate money transfers to the Company.

StartEngine Primary will charge you a non-refundable processing fee equal to 3.5% of the amount you invest at the time you subscribe for the Company's securities, equivalent to $0.525 per share. This fee will be refunded in the event the Company does not raise any funds in this offering.

StartEngine Primary intends to use an online platform provided by StartEngine Crowdfunding, Inc. ("StartEngine Crowdfunding"), an affiliate of StartEngine Primary, at the domain name www.startengine.com (the "Online Platform") to provide technology tools to allow for the sales of securities in this offering. In addition, StartEngine Crowdfunding will assist with the facilitation of credit and debit card payments through the Online Platform. Fees for credit and debit card payments will be passed onto investors at cost and the Company will reimburse StartEngine Crowdfunding for transaction fees and return fees that it incurs for returns and chargebacks, pursuant to a Credit Card Services Agreement.

**Escrow Agent**

We have entered into an Escrow Services Agreement with Bryn Mawr Trust Company of Delaware LLC (the "Escrow Agent"), which can be found in Exhibit 8 to the Offering Statement of which this Offering Circular is a part. Investor funds will be held by the Escrow Agent pending closing or termination of the offering. All subscribers will be instructed by us or our agents to transfer funds by wire, credit or debit card, or ACH transfer directly to the escrow account established for this offering. We may terminate the offering at any time for any reason at our 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.

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

**No Minimum Offering Amount**

The shares being offered will be issued in one or more closings. No minimum number of shares must be sold before a closing can occur. Potential investors should be aware that there can be no assurance that any other funds will be invested in this offering other than their own funds. See "Risk Factors - This offering is being conducted on a "best efforts" basis and does not require a minimum amount to be raised."

**Investors' Tender of Funds**

After the Offering Statement has been qualified by the Commission, we will accept tenders of funds to purchase whole shares. We will conduct multiple closings on investments (so not all investors will receive their shares on the same date). Each time we accept funds transferred from the Escrow Agent is defined as a "Closing." The funds tendered by potential investors will be held by the Escrow Agent and will be transferred to us at each Closing.

**Subscription Procedures**

After the Offering Statement has been qualified by the Commission, the Company will accept tenders of funds to purchase the Shares. The Company may close on investments on a "rolling" basis (so not all investors will receive their shares on the same date). Investors may subscribe by tendering funds via wire, credit or debit card, or ACH only, checks will not be accepted, to the escrow account to be setup by the Escrow Agent. Tendered funds will remain in escrow until a closing has occurred. StartEngine Crowdfunding will assist with the facilitation of credit and debit card payments through the Online Platform. The Company estimates that processing fees for credit card subscriptions will be approximately 4% of total funds invested per transaction, although credit card processing fees may fluctuate. The Company intends to pay these fees and will reimburse StartEngine Crowdfunding for transaction fees and return fees that it incurs for returns and chargebacks. The Company estimates that a significant portion 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." Upon closing, funds tendered by investors will be made available to the Company for its use.

In order to invest you will be required to subscribe to the offering via the Online Platform and agree to the terms of the offering, Subscription Agreement, and any other relevant exhibit attached thereto. Investors will be required to complete a subscription agreement in order to invest. The subscription agreement includes a representation by the investor to the effect that, if the investor is not an "accredited investor" as defined under securities law, the investor is investing an amount, including the StartEngine processing fee, that does not exceed the greater of 10% of his or her annual income or 10% of your net worth (excluding the investor's principal residence).

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, credit or debit card, or ACH transfer directly 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. 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.

Pursuant to our agreement with StartEngine Primary, the Company agrees that 6% of the total funds received into escrow will be held back as a deposit hold in case of any ACH refunds or credit card chargebacks. The hold will remain in effect for 180 days following the close of the offering. 60 days after the close of the offering, 75% of the deposit hold will be released to the Company. The remaining 25% will be held for the final 120 days of the deposit hold.

**No Selling Shareholders**

No securities are being sold for the account of security holders; all net proceeds of this offering will go to the Company**.**

**Bonus Shares for StartEngine Venture Club**

In addition to the Volume Based Bonus and the Loyalty Bonus described below under "Perks and Additional Bonus Shares", certain investors who are members of the StartEngine Venture Club Bonus program (f/k/a StartEngine OWNers Bonus program), who invest in this offering are entitled to 10% Bonus Shares of our Common Stock (effectively a discount on the price paid per share) (the "StartEngine Venture Club Bonus"), subject to the 20% Bonus Share cap. For example, anyone who is a member of the StartEngine Venture Club Bonus program will receive 110 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. This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail. The general public can become members of the StartEngine Venture Club Bonus program 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 Crowdfunding, Inc. will determine whether an investor qualifies as a StartEngine Venture Club member.

**Perks and Additional Bonus Shares\***

Certain investors in this offering are eligible to receive bonus shares of Common Stock, ("Bonus Shares") which effectively gives them a discount on their investment. Those investors will receive, as part of their investment, additional shares for their shares purchased ("Bonus Shares") equal to up to 20% of the shares they purchase, depending upon whether they are a StartEngine Venture Club member and the perks described below. In order to receive volume perks from an investment, one must submit a single investment in the same offering that meets the minimum volume perk requirement. Bonus shares from volume perks will not be granted if an investor submits multiple investments that, when combined, meet the volume perk requirement. All perks occur when the offering is completed.

***Loyalty Bonus***

In order to be eligible for the Loyalty Bonus an investor must either (i) be a previous investor in the Company and invest using the same email address used in making the previous investment or (ii) have indicated their interest in the Company's offering by making a non-binding "reservation" on the Company's testing the waters page hosted by StartEngine Crowdfunding. There is no minimum "reservation" amount required to be eligible for the Loyalty Bonus and there is no obligation to purchase securities in the offering if a "reservation" is made. Any investor making a non-binding "reservation" will be eligible for the Loyalty Bonus for the total number of shares they purchase in the Offering whether more or less than the shares "reserved".

***Volume Perks\*\****

**Investors who invest at least $1,500 will receive the following:**

● Atombeam T-shirt/hat, or two T-shirts, or two hats and 5% bonus shares.

**Investors who invest at least $5,000 will receive the following:**

● 10% Bonus Shares

● 2 AtomBeam T-Shirts/Hats

**Investors who invest at least $10,000 will receive the following:**

● 15% Bonus Shares

● 2 AtomBeam T-Shirts/Hats and exclusive invite to a group event with members of Atombeam's Executive Team

**Investors who invest at least $25,000 will receive the following:**

● 20% Bonus Shares

● 2 AtomBeam T-Shirts/Hats and dinner with Atombeam's CEO, Charles Yeomans.\*\*\*

*\* All T-shirts and hats will be sent out after the close of the round of investment.*

*\*\* 1n order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. The amount invested does not include amounts paid directly to StartEngine as part of the 3.5% processing fee. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed. Crowdfunding investments made through a self-directed IRA cannot receive perks due to tax laws. The Internal Revenue Service (IRS) prohibits self-dealing transactions in which the investor receives an immediate, personal financial gain on investments owned by their retirement account. As a result, an investor must refuse those perks because they would be receiving a benefit from their IRA account.*

*\*\*\*Travel and lodging, to the extent required, is not included.*

**Aggregated Bonus Shares**

The StartEngine Venture Club Bonus, Loyalty Bonus, and Volume Perks are stacked, subject to a cumulative maximum of 20%. Therefore, any investor that satisfies the requirements for any Bonus Shares, will receive the maximum aggregate amount of (a) Venture Club Bonus shares if they are part of the StartEngine Venture Club Bonus program, (b) Loyalty Bonus shares if they are a prior investor or reservation holders, and (c) Volume-Based Bonus shares for which they qualify, up to a maximum bonus of 20%. For purposes of clarity and by way of example, if a StartEngine Venture Club member who is a previous investor, decides to invest $30,000 in this offering (not including the StartEngine processing fee), such investor will qualify for the StartEngine Venture Club Bonus (10%), the Loyalty Bonus (10%), and the Volume-Based Bonus shares (20%), for a total of 40% Bonus Shares. However, given the maximum bonus is 20%, the investor would not be able to claim the additional 20% bonus and would remain at the 20% bonus level. The StartEngine processing fee will be assessed on the full share price of $15.00 for the purchased shares, and not on any Bonus Shares.

**TAX CONSEQUENCES FOR RECIPIENTS (INCLUDING FEDERAL, STATE, LOCAL AND FOREIGN INCOME WITH RESPECT TO REWARDS AND BONUS ARE THE SOLE RESPONSIBILITY OF THE INVESTOR. INVESTORS MUST CONSULT WITH THEIR OWN PERSONAL ACCOUNTANT(S) AND/OR TAX ADVISOR(S) REGARDING THESE MATTERS.**

**THE COMPANY RESERVES THE RIGHT TO DISCONTINUE ANY OF THE PERKS FOR REGULATORY PURPOSES.**

**USE OF PROCEEDS TO ISSUER**

The Company estimates that if it sells the maximum amount of $21,000,000 from the sale of the Common Stock, the net proceeds to the issuer in this offering will be approximately $19,330,000 after deducting the estimated offering expenses of approximately $1,670,000 (including payment to marketing, legal and accounting professional fees and other expenses).

The following table represents management's best estimate of the uses of the net proceeds, assuming the sale of, respectively, $5,250,000, $10,500,000, $15,750,000 and $21,000,000 of Common Stock offered for sale in this offering.

**Please see the table below for a summary the Company's estimated intended use of proceeds from this offering:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **$5.25 Million Raise** | **$10.5 Million Raise** | **$15.75 Million Raise** | **$21 Million Raise** |
| **Offering Proceeds** |  |  |  |  |
| Gross Proceeds (1) | $5250000 | $10500000 | $15750000 | $21000000 |
| Offering Expenses (2) | 667500 | 1035000 | 1402500 | 1770000 |
| **Total Proceeds Available for Use** | $**4682500** | $**9565000** | $**14447500** | $**19330000** |
| **Estimated Expenditures** |  |  |  |  |
| Software Development - PCM | $1837500 | $3675000 | 5512500 | 7350000 |
| Sales & Marketing | 1050000 | 2100000 | 3150000 | 4200000 |
| General & Administrative | 393750 | 787500 | 1181250 | 1575000 |
| Capital Expenditures | 78750 | 157500 | 236250 | 315000 |
| Capitalized R&D Expense | 367500 | 735000 | $1102500 | $1470000 |
| **Total Expenditures** | $**3727500** | $**7455000** | $**11182500** | $**14910000** |
| Working Capital Reserves | $855000 | $2010000 | $3165000 | $4320000 |

---

(1) Does not include the processing fee of 3.5%, see "Plan of Distribution".

(2) Includes
 fixed fees of $300,000 to cover legal, accounting, and edgarization expenses of the offering in addition to any commissions
 owed.

**The Company reserves the right to change the use of proceeds at management's discretion.**

**THE COMPANY'S BUSINESS**

**Overview**

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

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

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

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

**Products and Technology**

AtomBeam is currently focused on three products:

● Neurpac, which was initially released as a SaaS product and as a Software Development Kit. A new version of Neurpac was released as an on-premise product in December 2025 that replaced both the SaaS product and as a Software Development Kit, and will be the principal version we intend to offer for sales to customers,"

● Neurcom, which is currently in development, and

● The Persistent Cognitlve Machine ('PCM"), which is also in development.

*Neurpac*

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

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

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

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

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

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

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

*Neurcom*

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

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

**Complementary Applications of Neurpac and Neurcom**

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

**Platforms**

AtomBeam offers its customers its Neurpac software as an on-premise product, which enables customers to keep their data entirely behind their firewall. This new version of Neurpac was developed as a result of customer demand and replaced the company's prior versions of Neurpac as a SaaS and a software development kit.

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

Initially, the Company was focused on making the products invisible to the end user, and also very simple for an engineer to incorporate Atombeam software in a product to be sold to an end user. To accomplish this, the Company developed a SaaS offering, which was introduced as a beta version in April 2024 and as a version 1.0 in January 2025. Based on feedback from the market, the Company developed an on-premise version of the product, which was released in December 2025. The on-premise product was demanded by customers because it enables customers to keep their data entirely behind their firewall, and provides its customers with the opportunity to more tightly control Neurpac's integration with their systems.

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

**Other Developments**

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

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

It is important to emphasize that the PCM is an exploratory research project at this stage of its development, and it may never become a product or component of a product that ultimately has significant value. As of November 2025, approximately 17 months of effort has been expended on development and early patenting of Atombeam's generative AI technology, with the result that an early prototype has been coded and as of November 24, 2025, 31 patents have been issued, 7 patents are allowed and 133 patents are pending related to the potential generative AI technology. Development of robust, reliable generative AI models is highly challenging and requires specialized expertise that may not be available to the Company. The Company believes that the PCM will require significant early investment, which it estimates will be approximately $2.5 million for its initial stage of field testing and advanced development. The Company believes that could take approximately nine to 12 months to complete this initial stage, which would primarily consist of prototype development, patenting costs and field testing to achieve a level of maturity sufficient to demonstrate the PCM to prospective development partners and customers. Currently, the Company intends to allocate approximately 50% of the funds allocated to "Software Development" in the "Use of Proceeds" section above on this development. The Company believes that until it gets the initial stage underway, it is too early to make assessments on this product on how much additional resources it will need to dedicate or whether it is worthwhile to continue this development at all. This project is still at an early stage would be subject to all the risks in developing a new technology including those described in "Risk Factors" and specifically, "Risk Factors - Developing new products and technologies entails significant risks and uncertainties."

**Our Customers**

The Company markets its product to manufacturers and end-users of IoT devices, including for use in cars, heavy machinery, factories, wearables, smart buildings, and much else, with significant engagement with several large corporations and the U.S. Government, including the U.S. Department of Defense. The Company has received minimal revenue from its Neurpac SaaS product but plans to derive its commercial revenue from one-time non-recurring engineering payments and periodic license and maintenance fees based on the number of connected devices and the amount of data processed. Based on feedback from the market, the Company developed an on-premise version of the product, which was released in December 2025. The on-premise product was demanded by customers because it enables customers to keep their data entirely behind their firewall, and provides its customers with the opportunity to more tightly control Neurpac's integration with their systems. There can be no assurance that the Company's relationships with current and prospective customers or partners will result in revenue to the Company.

The Company is currently in the early revenue stage of development and is currently performing under a Phase II contract and an Other Transaction Authority contract with the U.S. Department of Defense (the "DoD"), each for $1.2 million, and the Space Force recently renewed its contract for $0.8 million. The Company's customers consist of two branches of the DoD, the U.S. Air Force and the U.S. Space Force. In addition, the Company has submitted proposals to other Federal agencies and is actively working with members of different branches of the DoD to gain further traction in defense, as well as with large defense contractors.

**Our Partners**

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

**Industry and Competition**

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

**Employees**

The Company currently has 47 full-time and 9 part-time employees (including consultants).

**Regulation**

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

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

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

**Intellectual Property**

As of November 24, 2025, the Company has 159 issued and allowed patents and has filed an additional 227 pending patents. The Company's patent portfolio relates to both proposed uses of the technology as well as mathematical and architectural approaches that further optimize the Company's software. Potential uses include applications unrelated to IoT, including its use in data centers. Patent filings related to optimization include the application of highly complex mathematical techniques and approaches that are expected to have the effect of increasing execution speed, improving security, and further improving compaction ratios. The most recent patent filings of the Company are primarily concerned with its second product, Neurcom, which still under development and for which research continues to provide insights relevant to patenting opportunities. Many of the recent patent filings are related to development of intellectual property related to the PCM.

**Litigation**

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

**THE COMPANY'S PROPERTY**

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

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

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

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

**Overview**

AtomBeam Technologies Inc. is a California-based software company with a sophisticated technology that has the potential to change the way machine/IoT data is transmitted and stored. The Company focused on engineering its software to be simple to install and use, including automating tasks otherwise performed manually. Other engineering work included the development of key features demanded by prospects and by the U.S. Department of Defense.

The Company currently receives revenue from its two current contracts one with the U.S. Air Force for the development of Neurcom, and a contract with the Space Development Agency, a unit of the U.S. Space Force, for the development of Neurpac. Both contracts contain provisions in which the Company expects to receive a total of approximately $1.2 million over a period not to exceed 21 months. Each of the contracts contains provisions that provide for payments of $50,000 to $250,000 based on the achievement of milestones. Through October 31, 2025 the Company has recognized combined revenue of $2,147,433 on these two contracts. The Company's contract with the Space Force was recently renewed for $0.8 million.

The operating expenses for the Company consist of (i) cost of sales, (ii) sales and marketing (iii) general and administrative, research and development and depreciation and amortization. General and administrative costs include the costs related to complete filings of patents to protect its intellectual property. Cost of sales consists primarily of labor costs, subcontractor fees, and other direct expenses incurred to fulfill government contracts.

The Company emphasizes its commitment to patenting its ideas because it believes an extensive portfolio of patents forms a valuable moat against competitors and makes the Company more attractive to a potential acquirer. The Company intends to continue devoting a significant part of its resources to continue building its patent position.

**Restatement**

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

*Description of Restatement Table*

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

*Balance Sheet*

---

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

---

*Statement of Operations*

---

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

---

*Statement of Shareholders' Equity (Deficit)*

---

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

---

*Statement of Cash Flows*

---

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

---

**Change in Auditors**

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

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

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

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

The Company has provided IndigoSpire a copy of its disclosure in the Form 1-K and requested that it provide the Company with a letter addressed to the SEC indicating whether or not IndigoSpire agrees with the disclosures contained herein and, if not, the respects in which it is not in agreement. A copy of IndigoSpire's letter, dated September 5, 2025 was filed as Exhibit 9.1 to the on Form 1-K.

**Results of Operations**

***Six months ended June 30, 2025 ("Interim 2025") Compared with six months ended June 30, 2024 ("Interim 2024")***

For Interim 2025 the Company generated $125,604 in net revenues compared to $570,987 for Interim 2024. The decrease in revenues was due to delays in obtaining approvals for extensions to U.S. Department of Defense contracts. The Company subsequently received a $776,000 contract extension from the Space Development Agency in September 2025.

Total operating expenses for Interim 2025 was $6,444,434 compared with $2,957,381 for Interim 2024. The increase in expenses was due to:

● An approximately $60,000 decrease in cost of sales primarily related to the decrease in revenue indicated above.

● An approximately $194,000 increase in selling and marketing expenses is primarily due to additional headcount and compensation for the Company's employees and contractors in its sales and marketing functions.

● An approximately $3,390,000 increase in general and administrative expenses is primarily due to a significant increase in headcount and compensation for the Company's employees and contractors in corporate functions.

● An approximately $51,000 decrease in research and development due to reclassification of certain costs associated with patent development.

● An approximately $13,000 increase in depreciation and amortization.

For the Interim 2025, the Company had interest income of $63,993 compared to an interest expense in Interim 2024 of $49,839. The increase was related to the increase in investable cash resulting from fundraising activities.

As a result of the foregoing, the Company generated a net loss of $6,254,837, in Interim 2025 compared with a restated net loss of $2,442,184 in Interim 2024.

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

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

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

● An approximately $285,012 increase in cost of sales primarily related to increased consulting costs from the Company's university research partner, and an increase in compensation for the Company's employees and consultants, dedicated to the Company's governmental revenue contracts.

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

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

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

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

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

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

**Liquidity and Capital Resources**

<br> As of October 31, 2025, the Company's cash on hand was $725,400 generated primarily from financing activities including the issuance of shares to investors in the Company's Regulation A, Regulation CF and Regulation D offerings. The Company requires the continued infusion of new capital to continue business operations. The Company has recorded losses since inception. As of October 31, 2025, the Company had an accumulated deficit of $26,852,065.

The Company's current capital resources come from fundraising activities, specifically, as of the date of this offering circular the Company has raised funds through various offerings.

In 2024, AtomBeam raised net proceeds of approximately $14.3 million under its Regulation A offering on the StartEngine platform. Previously, AtomBeam raised approximately $8.2 million cumulatively under Regulation Crowdfunding on the StartEngine platform in three capital raises, including one that closed on December 28, 2023. AtomBeam has raised an additional $3.5 million in private placements of convertible notes, $1.7 million of which were converted in 2024 and $1.8 million of which were converted in 2023, $0.5 million in straight long-term debt and $0.4 million in equity under the registration exclusion of Section 4(a)(2) of the Securities Act of 1933. In 2024, AtomBeam raised approximately $1.8 million in its Regulation D offering. During Interim 2025, AtomBeam raised $4.2 million in its Regulation A offering and $0.6 million in its Regulation D offering. In October and November 2025, Atombeam raised $4.9 million in equity under Regulation Crowdfunding on the StartEngine Platform. In November 2025, Atombeam began a Regulation D Offering, and as of November 14, 2025, Atombeam had raised approximately $0.6 million. As of the date of this Offering Circular, there are no outstanding convertible notes.

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

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

**Indebtedness**

*Notes and Long Term Debt*

The Company entered into multiple non-convertible promissory notes during 2020 and 2022 with an investor of the Company with a total principal of $450,000. The amount outstanding at both October 31, 2025 and December 31, 2024 was $450,000. The promissory notes accrue simple interest at a rate of 5.0% per annum, which is due upon the maturity date of each promissory note. All outstanding principal and accrued interest for the promissory notes was originally due in 2025. On April 3, 2025, the Company and the investor agreed to extend the maturity date of the promissory notes from December 31, 2025 to January 1, 2027. The stated interest rate and all other terms of the notes remained unchanged. The promissory notes are classified as noncurrent liabilities as of October 31, 2025. Accrued interest related to these promissory notes totaled approximately $101,863 and $83,000 as of October 31, 2025 and December 31, 2024, respectively, and is presented as accrued interest payable in the balance sheets.

The Company also holds an SBA Disaster Loan with the US Small Business Administration. The original SBA Disaster Loan was authorized in June 2020 for $8,400 and was subsequently amended in September 2021 to increase the total loan amount to $36,400. As of October 31, 2025 and December 31, 2024, the outstanding principal balances were $34,366 and $35,118, respectively. The SBA Loan accrues interest at a rate of 3.75% per annum, and with a maturity date of June 5, 2050.

**Going Concern**

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

As described in the notes our financial statements, the accompanying financial statements have been prepared on a "going concern" basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred net losses since inception, including a loss of $10,403,558 for the ten months ended October 31, 2025, and used $11,635,289 of cash in operating and investing activities during that period, approximately $1,163,529 per month. Although the Company held $3,611,272 of cash and cash equivalents at November 17, 2025, it expects to continue to incur operating losses while it commercializes its technology. These factors raise substantial doubt about the Company's ability to continue as a going concern for the twelve-month period following the date of issuance of these financial statements. If the Company is unable to raise additional capital or further reduce expenditures, it may be required to curtail or cease operations and could seek protection under applicable bankruptcy laws.

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

**Trend Information**

AtomBeam is a participant in a highly competitive industry, AI-driven software technology. The Company's data reduction products, Neurpac and Neurcom, are differentiated from standard, open source compression products, but users must be convinced that Neurpac and Neurcom will offer them sufficient incremental benefits for them to adopt our technologies. Moreover, to be effective, the Company's technologies must be deeply embedded in the hardware and software of end user devices and networks, which make the Company's sales efforts more challenging compared to products that can be simply downloaded and installed as applications, such as cellular phone "apps". For example, the Company released the SaaS Beta version of its Neurpac product in Q2 2024, and the production version of Neurpac was released in Q1 2025. The Company introduced its on-premise version of the Neurpac product in December 2025. The Company is now working to gain commercial customers for the on-premise product, and will no longer support the SaaS version of the product. The Company relies upon the widely accepted view that, as greater amounts of data are generated, greater network capacity will commensurately be required, and the current array of options available to users of compression algorithms, particularly for IoT data, will be insufficient to satisfy the requirements of a significant number of these users. Such users, the Company believes, will be sufficiently interested in the potential value of the Company's technologies to address their needs in ways that compression cannot. The Company also believes that early commercial adopters will be onboarded and opportunities for expansion may follow.

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

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

**DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES**

The following table sets out the Company's officers and directors as of January 27, 2026. All of the officers and directors work with the Company on a full-time basis except as indicated below.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office<br> (if indefinite, give date appointed)** | **Approximate<br> hours per week<br> (if part-time)/full-time** |
| **Executive Officers:** | **Executive Officers:** | **Executive Officers:** | **Executive Officers:** | **Executive Officers:** |
| &nbsp;&nbsp;&nbsp;Charles Christopher Yeomans | Chairman, President & CEO | 70 | Appointed 9/01/2017 | Full-time |
| &nbsp;&nbsp;&nbsp;Rajiv Bhagat | CFO | 64 | Appointed 2/12/2024 | 35 hours |
| &nbsp;&nbsp;&nbsp;Joshua Cooper | Chief Scientific Officer | 47 | Appointed 4/14/2022 | 10 hours |
| **Directors:** | **Directors:** | **Directors:** | **Directors:** | **Directors:** |
| &nbsp;&nbsp;&nbsp;Charles Christopher Yeomans | Director | 70 | Appointed 9/01/2017 |  |
| &nbsp;&nbsp;&nbsp;Courtney Monroe Benham | Director | 66 | Appointed 4/1/2019 |  |
| &nbsp;&nbsp;&nbsp;Mojgan Haddad | Director | 59 | Appointed 4/1/2019 |  |
| &nbsp;&nbsp;&nbsp;Christian D. Becker | Director | 59 | Appointed 2/12/2024 |  |
| &nbsp;&nbsp;&nbsp;Greg Caltabiano | Director | 65 | Appointed 2/12/2024 |  |
| &nbsp;&nbsp;&nbsp;John Rogers | Director | 65 | Appointed 7/24/2025 |  |

---

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

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

**Rajiv Bhagat, Chief Financial Officer**

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

**Joshua Cooper, Chief Scientific Officer**

Dr. Joshua Cooper serves as AtomBeam's Chief Scientific Officer and has worked with AtomBeam for approximately 6 years. He has been a Professor at the University of South Carolina since 2006, and specializes in Discrete Mathematics, Combinatorial Algorithms, and Machine Learning. He has over 25 years of experience in a variety of industry roles. In addition to helping dozens of companies design and implement technological solutions informed by modern Data Science, he has led R&D efforts in multiple sectors, including digital signal processing, social media marketing, medical devices, and financial reporting. Dr. Cooper received a B.S., Mathematics and Linguistics from the Massachusetts Institute of Technology, and a PhD in Mathematics (Extremal Combinatorics) from the University of California, San Diego.

**Christian Becker, Director**

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

**Courtney Benham, Director**

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

**Greg Caltabiano, Director**

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

**Mojgan Haddad, Director**

Mojgan Haddad is a member of the Board of Directors of AtomBeam. Ms. Haddad has 24 years of software engineering and operating experience in the bioinformatics and biomedical industries. From 2021 to present, Ms. Haddad was a Vice President of Engineering at Dotmatics. From 2020 to 2021, she was a Senior Director Software Engineering at Corin Group. From 2015 to 2020, Ms. Haddad worked at Talis Biomedical Corporation. She received a Masters Degree in Computer Science and Artificial Intelligence from Technische Universitat Wien, and a PhD in Computer Science from Technische Universitat Wien. She also completed a Post-Doc in Computational & Mathematical Biology at University of California, San Francisco.

**John Rogers, Director**

John Rogers joined the Board of Directors of AtomBeam in 2025. Mr. Rogers has over 30 years of experience in the public and private sectors. In addition to Capstone, since 2025, Mr. Rogers has been the Founder of Stones Throw Public Affairs, LLC, a strategic advisory firm offering creative solutions for complex policy and communication challenges. Since 2025, Mr. Rogers has also been the President of the Americas Region of HUB Cyber Security LTD (NASDAQ: HUBC), a global leader in confidential computing and advanced data fabric technology. Since 2009, Mr. Rogers has been the Founder of Capstone National Partners ("Capstone"), a bipartisan public affairs firm with offices in Washington D.C. and Wisconsin. Mr. Rogers John attended Illinois State University and the University of Iowa.

**COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS**

For the fiscal year ended December 31, 2025, we compensated our three highest paid executive officers as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name** | **Capacities in which<br> compensation was<br> received** | **Cash <br> compensation ($)** |  | **Other <br> compensation ($)** |  | **Total<br> compensation ($)** |
| Charles Yeomans | CEO | $713815 | (1) | $64952 | (2) | $778767 |
| Chuba Udokwu\* | Chief Operating Officer | $446000 |  | $— | (3) | $446000 |
| Rajiv Bhagat | Chief Financial Officer | $354715 |  | $— | (4) | $354715 |

---

*\* On January 24, 2025, Mr. Udokwu resigned from all officer and director positions with the Company, with an effective date of December 31, 2025.*

In 2025, the Company had seven directors. One of the Company's directors, John Rogers, was granted 50,000 RSUs, subject to standard vesting over 24 months and a liquidity event. Other than for Mr. Rogers, none of our directors were issued cash or other compensation in 2025 for their capacity as directors.

&nbsp;&nbsp;&nbsp;&nbsp;(1) Mr. Yeomans' annual base salary is $360,000. In 2025,
Mr. Yeomans received a one-time milestone bonus of $350,000 due to the Company raising $7,000,000 of equity financing; this amount is
included in the cash compensation figure above. Mr. Yeoman is also entitled for a targeted, discretionary bonus of 100% of his annual
base salary for his work in 2025. This amount has yet to be determined and will be paid in 2026 upon board approval,

&nbsp;&nbsp;&nbsp;&nbsp;(2) Amounts include an auto allowance, a gym allowance, reimbursement
of medical expenses and membership in a social club. In addition, in 2025, Mr. Yeomans was granted 258,000 RSUs, subject to standard
vesting over 48 months and a liquidity event.

&nbsp;&nbsp;&nbsp;&nbsp;(3) In addition, in 2025, Mr. Udokwu was granted 276,000 RSUs, subject
to standard vesting over 48 months and a liquidity event.

&nbsp;&nbsp;&nbsp;&nbsp;(4) In addition, in 2025, Mr. Bhagat was granted 145,000 RSUs, subject to standard vesting over 48
 months and a liquidity event.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table displays, as of January 7, 2026, the voting securities beneficially owned by (1) any individual director or officer who beneficially owns more than 10% of any class of our capital stock, (2) all executive officers and directors as a group and (3) any other holder who beneficially owns more than 10% of any class of our capital stock:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and address of <br> beneficial owner (1)** | **Amount and nature of<br> beneficial ownership** |  | **Amount and nature<br> of<br> beneficial<br> ownership<br> acquirable (2)** |  | **Percent of <br> Class (6) (7)** |
| Common Shares | Courtney Benham | 3730423 |  | 0 |  | 19.4% |
| Common Shares | Mojgan Haddad & Asghar Riahi | 2970552 | (5) | 0 |  | 15.4% |
| Common Shares | Charles Yeomans | 2709477 |  | 7974657 | (3) | 55.4% |
| Common Shares | All executive officers and directors as a group (7 Persons) | 9550452 |  | 7974657<br> 285000 | <br> (3)<br> (4) | 91.0% |

---

---

| |
|:---|
| (1) The address for all beneficial owners is the Company's address, 1036 Country Club Drive, Moraga, CA 94556. |
| (2) Excludes 2,467,020 Restricted Stock Units owned by Executive Officers and Directors. Restricted Stock Units are not entitled to vote and are only convertible in limited circumstances. The following are the RSUs owned by the named individuals above: Courtney Benham (540000), Charles Yeomans (576000), and Mojgan Haddad (69000). In addition, one of our beneficial owners listed above, Asghar Riahi has 96,000 RSUs. |
| (3) Represents shares of Common Stock sold in prior Regulation Crowdfunding offerings or private placements, that Mr. Yeomans as CEO, has voting control over pursuant to the subscription agreement governing those offerings that granted our CEO a proxy to vote those shares. |
| (4) Shares acquirable through the exercise of options granted under the 2019 Equity Incentive Plan. |
| (5) Includes 2,494,552 of Common Stock held in the Ali A. Riahi & Mojgan Haddad Family Trust, and 476,000 shares held by Dr. Haddad's spouse, Asghar Riahi. |
| (6) Based on 19,277,290 shares of Common Stock outstanding as of January 7, 2026. |
| (7) This calculation is the amount the person owns now, plus the amount that person is entitled to acquire. That amount is then shown as a percentage of the outstanding amount of securities in that class if no other person exercised their rights to acquire those securities. The result is a calculation of the maximum amount that person could ever own based on their current and acquirable ownership, which is why the amounts in this column may not add up to 100% for each class. |

---

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

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

Courtney Benham, a Director of the Company has invested a total of $1,650,200 in the Company through his investment vehicle Wazoo Partners, LLC in the form of equity, convertible notes and debt. The total amount invested through straight promissory notes is $450,000, and the total invested through convertible promissory notes is $800,000, and these convertible notes have been converted into common stock. In addition, Wazoo Partners LLC invested $400,200 in equity when the Company was under its former name and corporate form, Drivewarp LLC. As of October 31, 2025, the only outstanding amounts are for the promissory note of $450,000 in principal and $101,863.01 in accrued interest.

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

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

The Form of Promissory Note, as amended, Form of Convertible Note, the 2021 Employee Stock Option Plan and Form of Notice of Restricted Unit Award have each been filed as an exhibit to the offering statement of which this offering circular forms a part.

**SECURITIES BEING OFFERED**

**General**

The Company is offering up to 1,680,000 shares of Common Stock in this offering. Investors in this offering will be required to sign an irrevocable proxy, which will restrict their ability to vote. The proxy will remain in effect until the Company's sale of its Common Stock in a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act. Investors in our previous offering of Common Stock under Regulation A were also required to grant a proxy on the same terms.

The following description summarizes the most important terms of the Company's capital stock. This summary does not purport to be complete and is qualified in its entirety by the provisions of the Company's Amended and Restated Certificate of Incorporation, as amended, Bylaws, copies of which have been filed as exhibits to the Offering Statement of which this Offering Circular is a part. For a complete description of the Company's capital stock, you should refer to the Amended and Restated Certificate of Incorporation, as amended, Bylaws and to the applicable provisions of Delaware General Corporation Law.

The Company is authorized to issue up to 40,000,000 shares of Common Stock, par value $0.00001 per share. As of January 7, 2026, there are 19,277,290 shares of Common Stock outstanding in addition to 6,332,497 RSUs and options to purchase 555,000 shares of Common Stock.

**The Company's Securities**

*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. The investors in Common Stock in this offering will be required to grant a proxy to the company's CEO, described in greater detail below under "The Proxy."

*Dividend Rights*

Subject to preferences that may be applicable to any then outstanding class of capital stock having prior rights to dividends, if any, holders of the Common Stock shall be entitled to receive, on a pari passu basis, when and as declared by the Board of Directors, out of any assets of the Company legally available therefore, such dividends as may be declared from time to time by the Board of Directors.

*Liquidation Rights*

Subject to preferences that may be applicable to any then outstanding class of capital stock having prior rights to dividends if any, in the event of the Company's liquidation, or winding up, whether voluntary or involuntary, subject to the rights of any Preferred Stock that may then be outstanding, the assets of the Company legally available for distribution to stockholders shall be distributed on an equal priority, pro rata basis to the holders of the Common Stock.

Holders of the Common Stock have no conversion, preemptive, subscription or other rights, and there are no redemption or sinking fund provisions applicable to the Company's shares of Common Stock.

***The Proxy***

Holders of Common Stock who purchase their shares in this offering will grant the Company a proxy in Section 5 of the Subscription Agreement and agree to allow the Company's CEO to vote their shares on all matters submitted to a vote of the stockholders, including the election of directors. The proxy will be irrevocable and will remain in effect until the closing of a firm-commitment underwritten public offering pursuant to an effective registration statement under the Securities Act of 1933 covering the offer and sale of Common Stock or the effectiveness of a registration statement under the Securities Exchange Act of 1934 covering the Common Stock.

***Bylaws***

*Right of First Refusal*

Section 8.14 of our Bylaws grants the Company the right of first refusal if any stockholder of any class of securities seeks to transfer its capital stock unless the proposed transaction relates to estate planning or a bona fide pledge or mortgage of shares with a commercial lending institution.

***Stockholder Agreement***

Holders of approximately 6,916,000 shares of our Common Stock have entered into a Stockholder Agreement which among other requirements has the following provision:

*Drag-along*

The holders agree that so long as holders of a majority of the holders of Common Stock agree, the Company may compel the participants in the Stockholder agreement to agree to such transfer.

***Stock Option Plan***

As of the date of this Offering Circular, there are options for 555,000 shares of Common Stock still outstanding issued under the Company's 2019 Stock Incentive Plan. The Company replaced that plan with the 2021 Stock Incentive Plan and no longer grants options under the plan.

***Restricted Stock Units (RSU)***

As of September 30, 2025, the Company has granted Restricted Stock Units to purchase 6,332,497 shares, and has authorized up to a total of 8,500,000 Restricted Stock Units. The Company's 2021 Stock Incentive Plan was put in place to be effective December 20, 2021 and set forth the terms under which the Company provides for grants of Restricted Stock Units to its employees, which was the primary means of incentivizing its employees in 2022, 2023 and 2024 and is expected to remain the principal means it uses for this purpose. Vesting of the Restricted Stock Units is based on "two-tier" vesting, which includes a time-based tier over a period between two and four years (standard is four years), and a second tier that is based on the Company realizing a liquidity event.

***Forum Selection Provisions***

Our Bylaws and subscription may have the effect of limiting an investor's ability to bring legal action against the Company and could limit an investor's ability to obtain a favorable judicial forum for disputes.

Our Bylaws, to the fullest extent permitted by law, provides that the Court of Chancery of the State of Delaware will be the exclusive forum for any derivative action or proceeding brought on our behalf; any action asserting a breach of fiduciary duty; any action asserting a claim against us arising pursuant to the DGCL, our Charter; our Bylaws, or any action asserting a claim against us that is governed by the internal affairs doctrine. For suits brought under the Securities Act or the Exchange Act the federal courts of the United States shall have exclusively jurisdiction. Our Subscription Agreements for certain of our Regulation CF offerings require that the forum for suits arising under the Subscription Agreement by Federal and State courts in Delaware. Our Subscription Agreement has a similar clause for suits arising from the subscription agreement.

***Jury Trial Waiver***

The Subscription Agreement that investors will execute in connection with the offering 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 Agreement, other than claims arising under federal securities laws. If the Company 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. In addition, by agreeing to the provision, subscribers will not be deemed to have waived the Company's compliance with the federal securities laws and the rules and regulations promulgated thereunder.

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

We will be required to make annual and semi-annual filings with the SEC. We will make annual filings on Form 1-K, which will be due by April 29, 2026 and will include audited financial statements for the previous fiscal year. We will make semi-annual filings on Form 1-SA, which will be due by September 28 each year, which will include unaudited financial statements for the six months to June 30. We will also file a Form 1-U to announce important events such as the loss of a senior officer, a change in auditors or certain types of capital-raising. We will be required to keep making these reports unless we file a Form 1-Z to exit the reporting system, which we will only be able to do if we have less than 300 shareholders of record and have filed at least one Form 1-K.

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.

We may supplement the information in this Offering Circular by filing a Supplement with the SEC.

All these filings will be available on the SEC's EDGAR filing system. You should read all the available information before investing.

**PART II**

**FINANCIAL STATEMENTS**

**ATOMBEAM TECHNOLOGIES INC.**

*(a Delaware corporation)*

Financial Statements

For the six-month periods ended June 30, 2025 and 2024

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| **[Condensed Balance Sheets](#a_001)** | **[F-3](#a_001)** |
| **[Condensed Statements of Operations](#a_002)** | **[F-4](#a_002)** |
| **[Condensed Statements of Shareholders' Equity (Deficit)](#a_003)** | **[F-5](#a_003)** |
| **[Condensed Statements of Cash Flows](#a_004)** | **[F-6](#a_004)** |
| **[Notes to Condensed Financial Statements](#a_005)** | **[F-7](#a_005)** |

---

**ATOMBEAM TECHNOLOGIES INC.**

**CONDENSED BALANCE SHEETS**

**As of June 30, 2025 and December 31, 2024**

**Unaudited**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br> **2025** | **December 31,**<br> **2024** |
| **Assets** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $5302608 | $8500580 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 4616 | 100000 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 45678 | 32755 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 5352902 | 8633335 |
| Property and equipment, net | 62289 | 25628 |
| Intangible assets, net | 2967360 | 2018882 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Assets | $8382551 | $10677845 |
| **Liabilities and Shareholders' Equity (Deficit)** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $20198 | $169061 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 92871 | 898754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 113069 | 1067815 |
| Notes payable | 450000 | 450000 |
| Convertible notes payable, net of issuance costs |  |  |
| Accrued interest payable | 94281 | 83123 |
| Derivative liability |  |  |
| Government-backed loans payable | 34666 | 35118 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 692016 | 1636056 |
| Shareholders' Equity (Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, par value $0.00001, 40,000,000 shares authorized, 18,183,020 and 17,476,981 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively | 182 | 175 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 30676918 | 27024028 |
| &nbsp;&nbsp;&nbsp;Subscriptions receivable | (283223) | (1533909) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (22703342) | (16448505) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Shareholders' Equity | 7690535 | 9041789 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities and Shareholders' Equity | $8382551 | $10677845 |

---

See Notes to the Condensed Financial Statements (Unaudited)

**ATOMBEAM TECHNOLOGIES INC.**

**CONDENSED STATEMENTS OF**

**OPERATIONS**

**For the six months ended June 30, 2025 and 2024**

**Unaudited**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended <br> June 30,** | **Six Months Ended <br> June 30,** |
|  | **2025** | **2024** |
| Revenues | $125604 | $570987 |
| Operating Expenses: |  |  |
| Cost of sales | 67316 | 126829 |
| Selling and marketing | 635001 | 440928 |
| General and administrative | 5212374 | 1822161 |
| Research and development | 507795 | 558844 |
| Depreciation and amortization | 21948 | 8619 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Operating Expenses | 6444434 | 2957381 |
| Loss from Operations | (6318830) | (2386394) |
| Other Expenses: |  |  |
| Interest income (expense) | 63993 | (49839) |
| Change in derivative fair value | - | (5951) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total Other Expenses | 63993 | (55790) |
| Loss Before Tax Provision | $(6254837) | $(2442184) |
| Tax provision |  |  |
| Net Loss | $(6254837) | $(2442184) |

---

See Notes to the Condensed Financial Statements (Unaudited)

**ATOMBEAM TECHNOLOGIES INC.**

**CONDENSED STATEMENTS OF**

**SHAREHOLDERS' EQUITY (DEFICIT)**

**For the six months ended June 30, 2025 and 2024**

**Unaudited**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | | |
|  | **Shares** | **Amount** |<br>**APIC** |<br>**Subscriptions<br> Receivable** |<br>**Retained Deficit** |<br>**Total Owners'<br> Equity** |
| **Balance as of December 31, 2023** | **12069854** | $**121** | $**8611909** | $**-** | $**(8625408)** | $**(13378)** |
| Net Loss |  |  |  |  | (2442185) | (2442185) |
| Issuance of Common Stock from Fundraise |  |  |  |  |  |  |
| Issuance Costs from Common Stock Issuance |  |  | (121400) |  |  | (121400) |
| Conversion of Convertible Notes |  |  |  |  |  |  |
| **Balance as of June 30, 2024** | **12069854** | $**121** | $**8490509** | $**-** | $**(11067593)** | $**(2576963)** |
| Net Loss |  |  |  |  | (5380912) | (5380912) |
| Issuance of Common Stock from Fundraise | 2436224 | 24 | 15858719 | (1533909) |  | 14324834 |
| Issuance Costs from Common Stock Issuance |  |  |  |  |  |  |
| Conversion of Convertible Notes | 2970903 | 30 | 2674800 |  |  | 2553430 |
| **Balance as of December 31, 2024** | **17476981** | $**175** | $**27024028** | $**(1533909)** | $**(16448505)** | $**9041789** |
| Net Loss |  |  |  |  | (6254837) | (6254837) |
| Issuance of Common Stock from Fundraise, net | 706039 | 7 | 3652890 |  |  | 3652897 |
| Collection of Subscription Receivable |  |  |  | 1250686 |  | 1250686 |
| Conversion of Convertible Notes |  |  |  |  |  |  |
| **Balance as of June 30, 2025** | **18183020** | $**182** | $**30676918** | $**(283223)** | $**(22703342)** | $**7690535** |

---

See Notes to the Condensed Financial Statements (Unaudited)

**ATOMBEAM TECHNOLOGIES INC.**

**CONDENSED STATEMENTS OF CASH FLOWS**

**For six months ended June 30, 2025 and 2024**

**Unaudited**

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended<br> June 30,** | **Six Months Ended<br> June 30,** |
|  | **2025** | **2024** |
| **Operating Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(6254837) | $(2442184) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense | 21948 | 8619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in derivative fair value |  | 5952 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in accounts receivable | 95384 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in prepaid expenses and other current assets | (12923) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts payable | (148863) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other current liabilities | (805883) | 42814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in interest payable | 11158 | 48937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (7094016) | (2335862) |
| **Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of fixed assets | (40408) | (5397) |
| &nbsp;&nbsp;&nbsp;Acquisition of intangible assets | (966678) | (468875) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (1007086) | (474272) |
| **Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from issuance of common stock | 3652896 | (121400) |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable | (452) | (10745) |
| &nbsp;&nbsp;&nbsp;Proceeds (repayment) of subscriptions receivable | 1250686 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible note issuance | - | 1620937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 4903130 | 1488792 |
| Net change in cash and cash equivalents | (3197972) | (1321342) |
| Cash and cash equivalents at beginning of period | 8500580 | 2488091 |
| Cash and cash equivalents at end of period | $5302608 | $1166749 |
| **Noncash investing and financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;Conversion of convertible notes | $- | $- |
| &nbsp;&nbsp;&nbsp;Receivable for common stock issuances | $- | $- |
| **Supplemental cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $646 | $902 |

---

See Notes to the Condensed Financial Statements (Unaudited)

**ATOMBEAM TECHNOLOGIES INC.**

**NOTES TO CONDENSED FINANCIAL**

**STATEMENTS (Unaudited)**

**NOTE 1 – NATURE OF OPERATIONS**

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

In 2024, the Company initiated a Regulation A offering and completed a Regulation CF offering to support operations. The Company has incurred net losses since inception, including a loss of $6,254,837 for the six months ended June 30, 2025, and used $7,094,016 of cash in operating activities during that period, approximately $1,182,336 per month. Although the Company held $5,302,608 of cash and cash equivalents at June 30, 2025, it expects to continue to incur operating losses while it commercializes its technology. These factors raise substantial doubt about the Company's ability to continue as a going concern for the twelve-month period following the date of issuance of these financial statements. If the Company is unable to raise additional capital or further reduce expenditures, it may be required to curtail or cease operations and could seek protection under applicable bankruptcy laws.

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

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

*Basis of Presentation*

The accompanying financial statements are unaudited condensed interim financial statements prepared in accordance with U.S. GAAP for interim reporting. In the opinion of management, all normal, recurring adjustments considered necessary for a fair presentation have been included. These interim financial statements should be read together with the audited financial statements for the year ended December 31, 2024. The Company's significant accounting policies are unchanged from those disclosed in the 2024 annual financial statements.

*Use of Estimates*

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

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

*Risks and Uncertainties*

There have been no material changes to the Company's risk factors since December 31, 2024.

*Concentration of Credit Risk*

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

*Revenue Recognition*

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

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

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

*Cash and Cash Equivalents*

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

*Accounts Receivable*

Consideration for the Company's contracts with its government agency customers is paid at or near the date of formal government acceptance of each milestone. The Company held accounts receivable of $4,616 and $100,000 as of June 30, 2025 and December 31, 2024, respectively. Effective January 1, 2024, the Company adopted ASC 326, Financial Instruments-Credit Losses ("CECL"). Management estimates expected lifetime credit losses on accounts receivable using historical loss experience, the credit quality of its government customers, and forward-looking information such as federal budget appropriations. Based on this evaluation, the allowance for credit losses was $0 at both June 30, 2025 and 2024, and no receivables were written off during either period.

*Advertising*

The Company expenses advertising costs as they are incurred. Advertising costs, included in selling and marketing expenses, were $635,001 and $440,928 for the six months ended June 30, 2025 and 2024, respectively.

*Convertible Instruments and Embedded Derivatives*

The Company adopted ASU 2020-06 on January 1, 2024. All previously outstanding convertible notes were converted or otherwise settled in 2024, and the related embedded derivative liability was derecognized. At both June 30, 2025 and December 31, 2024, no derivative liabilities were outstanding.

*Property and Equipment, Net*

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

*Impairment of Long-Lived Assets*

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If the carrying amount exceeds the asset's estimated fair value, an impairment charge is recorded. No impairment losses were recognized on the Company's long-lived assets for the six months ended June 30, 2025 and 2024.

*Intangible Assets, Net*

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

*Fair Value Measurements*

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

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

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

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

The carrying amounts of cash and cash equivalents, prepaid expenses, accounts payable and other current liabilities approximate fair value due to the short maturities. No recurring fair value measurements were recognized during the interim period. The derivative liability balance was $0 at both June 30, 2025 and December 31, 2024.

*Income Taxes*

The Company maintains a full valuation allowance against its net deferred tax assets. For the six months ended June 30, 2025, the Company recorded no income tax provision due to operating losses and the valuation allowance. The Company applies ASC 740 to uncertain tax positions and had no material uncertain tax positions as of June 30, 2025.

*Stock-Based Compensation*

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

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

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

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

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

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

**NOTE 3 – PROPERTY AND EQUIPMENT, NET AND INTANGIBLE ASSETS, NET**

Property and equipment are stated at cost and depreciated on a straight-line basis over their estimated useful lives. Intangible assets primarily consist of capitalized legal and filing costs related to patents; approved patents are amortized on a straight-line basis over their estimated useful lives, while pending patents are not amortized. These policies are unchanged from year-end.

As of June 30, 2025, property and equipment, net was $62,289. As of December 31, 2024, property and equipment, net was $25,628. As of June 30, 2025, intangible assets, net were $2,967,360. As of December 31, 2024, intangible assets, net were $2,018,882.

Total depreciation expense was $3,747 and $1,889 for the six months ended June 30, 2025 and 2024, respectively. Total amortization expense was $18,200 and $6,729 for the six months ended June 30, 2025 and 2024, respectively, and is included as a component of general and administrative expenses in the statements of operations.

**NOTE 4 – DEBT**

*Convertible Notes Payable*

The Company's historical convertible notes were converted during 2024. As a result, no convertible notes were outstanding and the related derivative liability was derecognized. No new convertible notes were issued during the six months ended June 30, 2025.

*Promissory Notes*

The Company entered into multiple non-convertible promissory notes during 2020 and 2022 with an investor of the Company with a total principal of $450,000. The investor is also a related party. The amount outstanding at both June 30, 2025 and December 31, 2024 was $450,000. The promissory notes accrue simple interest at a rate of 5.0% per annum, which is due upon the maturity date of each promissory note. All outstanding principal and accrued interest for the promissory notes was originally due in 2025. On April 3, 2025, the Company and the investor agreed to extend the maturity date of the promissory notes from December 31, 2025 to January 1, 2027. The stated interest rate and all other terms of the notes remained unchanged. The promissory notes are classified as noncurrent liabilities as of June 30, 2025.

Accrued interest related to these promissory notes totaled approximately $94,281 and $83,000 as of June 30, 2025 and December 31, 2024, respectively, and is presented as accrued interest payable in the balance sheets.

*SBA Loan*

The Company also holds an SBA Disaster Loan with the US Small Business Administration. As of June 30, 2025 and December 31, 2024, the outstanding principal balances were $34,666 and $35,118, respectively. The SBA Loan accrues interest at a rate of 3.75% per annum, and with a maturity date of June 5, 2050.

**NOTE 5 – COMMON STOCK**

The Company is authorized to issue up to 40,000,000 shares of common stock, with a par value of $0.00001 per share. The Company has a single class of common stock, and each share is entitled to one vote. As of June 30, 2025 and December 31, 2024, the Company had 18,183,020 and 17,476,981 shares, respectively, of common stock issued and outstanding.

During January 2025, the Company completed equity financings within the six-month period ended June 30, 2025 for a Regulation A financing for $4,221,590 of gross proceeds and 596,885 shares issued, and a Regulation D private placement for $595,926 of gross proceeds and 109,154 shares issued. Offering costs related to these transactions were recorded as a reduction of additional paid-in capital.

**NOTE 6 – STOCK-BASED COMPENSATION**

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

During the six months ended June 30, 2025, the Company granted a total of 2,538,685 RSUs, consisting of 38,685 units under the 2019 Plan and 2,500,000 units under the 2021 Plan. All restricted stock units require both a service-based condition and a performance-based condition. As the performance condition was not considered probable as of June 30, 2025, no stock-based compensation expense was recognized for the six months ended June 30, 2025 or June 30, 2024.

Unrecognized compensation cost related to RSUs totaled approximately $29,572,707 at June 30, 2025 and $9,482,419 at December 31, 2024, respectively. No compensation expense was recognized for stock options or warrants during the six months ended June 30, 2025.

**NOTE 7 – FAIR VALUE OF FINANCIAL INSTRUMENTS**

The carrying amounts of cash and cash equivalents, prepaid expenses and other current assets, accounts payable, and other current liabilities approximate fair value due to their short maturities.

The Company had no financial instruments measured at fair value on a recurring basis as of June 30, 2025 or December 31, 2024. In prior periods, the Company recorded a compound derivative liability related to convertible notes; this liability was derecognized in 2024 upon conversion, and no derivative liability was outstanding at either date.

There were no transfers between levels of the fair-value hierarchy and no non-recurring fair value measurements during the six months ended June 30, 2025.

**NOTE 8 – INCOME TAXES**

The Company accounts for income taxes under ASC 740. The Company incurred losses for the six months ended June 30, 2025 and 2024. Accordingly, no current income tax provision was recorded for either period.

*Deferred Tax Assets and Liabilities*

As disclosed in the annual financial statements, the Company had approximately $12.1 million of federal and state net operating loss carryforwards at December 31, 2024; there has been no change in management's conclusion regarding the valuation allowance during the six months ended June 30, 2025.

As of June 30, 2025, unrecognized tax benefits were approximately $65,700, primarily related to research and development credits. There were no material changes during the six months ended June 30, 2025, and the Company does not expect significant changes in the next 12 months.

The Company files U.S. federal and state income tax returns. Returns remain open to examination for at least three years from the filing date. The Company had no other material uncertain tax positions as of June 30, 2025.

**NOTE 9 – COMMITMENTS AND CONTINGENCIES**

No material changes to commitments or contingencies occurred during the six months ended June 30, 2025 compared to those disclosed at December 31, 2024.

**NOTE 10 – RELATED PARTY TRANSACTIONS**

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

During 2020 and 2022, the Company issued non-convertible promissory notes to a related-party investor and common shareholder. The outstanding principal was $450,000 as of June 30, 2025 and December 31, 2024, respectively, and accrued interest totaled approximately $94,281 and $83,000 as of those dates. The notes bear simple interest at 5% per annum and are due in 2027.

Additionally, three shareholders and/or directors were both common shareholders as well as holders of convertible notes. All related-party convertible notes with an aggregate principal of $258,500 were converted to common stock during 2024, and no additional notes were issued during the six months ended June 30, 2025. These notes relate to original founders and investors of the Company, with Note conversion terms consistent with those of other investors. No risk of compensation expense is believed to exist.

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

**NOTE 11 – SUBSEQUENT EVENTS**

Management has evaluated subsequent events from June 30, 2025, the date of these financial statements, through October 16, 2025, which represents the date the financial statements were available for issuance. The Company concluded that no events have occurred that would require recognition or disclosure in the financial statements, except as described below.

*Regulation CF Offering*

On September 30, 2025, the Company launched a Regulation CF equity offering with a maximum raise of $5,000,000 through StartEngine. The offering is was ongoing as of the date these financial statements were available for issuance.

**ATOMBEAM TECHNOLOGIES INC.**

*(a Delaware corporation)*

 

Financial Statements

For the fiscal years ended December 31, 2024 and 2023

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | |
| **[Independent Auditor's Reports](#m_001)** | **[F-16](#m_001)** |
| **[Balance Sheets](#m_002)** | **[F-21](#m_002)** |
| **[Statements of Operations](#m_003)** | **[F-22](#m_003)** |
| **[Statements of Shareholders' Equity (Deficit)](#m_004)** | **[F-23](#m_004)** |
| **[Statements of Cash Flows](#m_005)** | **[F-24](#m_005)** |
| **[Notes to Financial Statements](#m_006)** | **[F-25](#m_006)** |

---

**Independent Auditor's Repor**t

Board of Directors

Atombeam Technologies, Inc.

Moraga, California

***Opinion***

 ****

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

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

***Basis for Opinion***

 ****

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

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

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

***Other Matter***

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

 ****

***Emphasis of Matter***

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

Board of Directors

Atombeam Technologies, Inc.

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

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that these financial statements are available to be issued.

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

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

In performing an audit in accordance with GAAS, we:

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

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

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

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

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

Board of Directors

Atombeam Technologies, Inc.

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

/s/ Forvis Mazars, LLP

**San Jose, California**

**September 3, 2025**

![](tm2533165-1_partiiimg003.jpg)

**INDEPENDENT AUDITOR'S REPORT**

To: Board of Directors, AtomBeam Technologies, Inc.

Re: YE 2023 Restated Financial Statement Audit

**Opinion**

We have audited the accompanying restated financial statements of AtomBeam Technologies, Inc. (a corporation) (the "Company"), which comprise the restated balance sheet as of December 31, 2023, and the related restated and statements of income, shareholders' equity, and cash flows for the calendar year periods thus ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations, changes in shareholders' equity and its cash flows for the calendar year periods thus ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

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

**Responsibilities of Management for the Financial Statements**

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the financial statements are available to be issued.

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

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

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

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

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

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

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

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

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

**Emphasis of Matter**

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

**Going Concern**

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

Sincerely,

![](tm2533165-1_partiiimg002.jpg)

IndigoSpire CPA, PC

San Jose, CA

September 3, 2025

**ATOMBEAM TECHNOLOGIES INC.**

**BALANCE SHEETS**

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

---

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

---

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

**ATOMBEAM TECHNOLOGIES INC.**

**STATEMENTS OF OPERATIONS**

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

---

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

---

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

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

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

---

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

---

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

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

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

---

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

---

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

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

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

**NOTE 1 – NATURE OF OPERATIONS**

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

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

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

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

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

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

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

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

*Balance Sheet*

---

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

---

*Statement of Operations*

---

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

---

*Statement of Shareholders' Equity*

---

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

---

 

*Statement of Cash Flows*

---

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

---

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

**NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

*Basis of Presentation*

 

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("US GAAP"). In the opinion of management, all adjustments considered necessary for the fair presentation of the financial statements for the years presented have been included.

*Use of Estimates*

 

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

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

*Risks and Uncertainties*

 

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

*Concentration of Credit Risk*

 

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

*Revenue Recognition*

 

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

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

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

*Cash and Cash Equivalents*

 

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

*Accounts Receivable*

 

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

*Advertising*

 

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

*Convertible Instruments and Embedded Derivatives*

 

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

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

*Property and Equipment, Net*

 

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

 

*Impairment of Long-Lived Assets*

 

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

*Intangible Assets, Net*

 

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

*Fair Value Measurements*

 

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

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

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

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

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

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

*Income Taxes*

 

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

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

*Stock-Based Compensation*

 

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

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

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

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

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

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

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

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

---

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

---

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

---

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

---

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

**NOTE 5 – INTANGIBLE ASSETS, NET**

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

---

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

---

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

---

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

---

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

---

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

---

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

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

**NOTE 6 – CONVERTIBLE NOTES PAYABLE**

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

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

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

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

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

**NOTE 7 – NONCONVERTIBLE DEBT**

*Promissory Notes*

 

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

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

*SBA Loan*

 

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

*Future Principal Payments on Long-Term Debt*

 

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

---

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

---

**NOTE 8 – COMMON STOCK**

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

*Regulation A and CF Securities Offerings*

 

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

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

*Private Placement Offerings*

 

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

*Convertible Note Conversions*

 

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

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

*Common Stock Reserved for Future Issuance*

 

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

---

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

---

**NOTE 9 – STOCK-BASED COMPENSATION**

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

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

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

*Stock Options*

 

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

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

---

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

---

*RSU's*

 

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

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

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

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

A summary of restricted stock unit activity is as follows:

---

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

---

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

*Warrants*

 

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

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

A summary of warrant activity is as follows:

---

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

---

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

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

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

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

---

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

---

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

**NOTE 11 – INCOME TAXES**

The components of loss before tax provision were as follows:

---

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

---

*Deferred Tax Assets and Liabilities*

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

---

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

---

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

---

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

---

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

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

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

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

**NOTE 12 – COMMITMENTS AND CONTINGENCIES**

 

*Leases*

 

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

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

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

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

*Litigation*

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

**NOTE 13 – RELATED PARTY TRANSACTIONS**

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

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

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

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

**NOTE 14 – SUBSEQUENT EVENTS**

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

*Equity Financing – Regulation A*

 

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

*Equity Financing – Regulation D*

 

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