# EDGAR Filing Document

**Accession Number:** 0001817417
**File Stem:** 0001104659-25-124840
**Filing Date:** 2025-12
**Character Count:** 943349
**Document Hash:** beb79d665f564eafe05e70f0b26be6ea
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-124840.hdr.sgml**: 20251229

**ACCESSION NUMBER**: 0001104659-25-124840

**CONFORMED SUBMISSION TYPE**: 1-A/A

**PUBLIC DOCUMENT COUNT**: 21

**FILED AS OF DATE**: 20251229

**DATE AS OF CHANGE**: 20251229

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Immersed Inc.
- **CENTRAL INDEX KEY:** 0001817417
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-PREPACKAGED SOFTWARE [7372]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 815011777
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 1-A/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12657
- **FILM NUMBER:** 251609168

**BUSINESS ADDRESS:**
- **STREET 1:** 12 MAIN STREET
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78704
- **BUSINESS PHONE:** 5106982462

**MAIL ADDRESS:**
- **STREET 1:** 106 E. 6TH STE 900-202
- **CITY:** AUSTIN
- **STATE:** TX
- **ZIP:** 78701

## Part

**As filed with the Securities and Exchange Commission on December 29, 2025**

**Filed pursuant to Rule 252(d)**

**File No. 024-12657**

**PART II – INFORMATION REQUIRED IN OFFERING CIRCULAR**

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

**PRELIMINARY OFFERING CIRCULAR, pre-qualification amendment no. 2**

**SUBJECT TO COMPLETION**

![](tm2528799d3_1asp01img001.jpg)

**IMMERSED INC.**

106 E. 6th St. STE 900-202<br> Austin, Texas 78701<br> 512-649-5589<br> https://immersed.com

Up to 31,818,181 Shares of Series B Common Stock to be issued and sold by the Company in the Primary Offering

Up to 6,060,606 Shares of Series B Common Stock to be sold by Selling Stockholders in the Secondary Offering

Consisting of up to 37,878,787 Shares of Series B Common Stock to be sold for Cash Consideration

and up to 6,363,636 Shares of Series B Common Stock to be issued as Bonus Shares

This pre-qualification offering circular amendment no. 2 (this "Offering Circular") amends the Form 1-A offering statement of Immersed Inc., a Delaware corporation (the "Company," "Immersed," "we," "us" or "our"), dated September 4, 2025, as amended on October 29, 2025, related to (i) the primary offering for the issuance and sale of up to 31,818,181 shares of the Company's Series B common stock, par value $0.00001 per share (the "Series B Common Stock" and "Shares," respectively) by us for cash consideration of up to $21,000,000 (the "Primary Offering"), and (ii) the secondary offering for sale of up to 6,060,606 Shares by the Selling Stockholders (as defined under "Plan of Distribution—Selling Stockholders" on page 38) for cash consideration of up to $4,000,000 (the "Secondary Offering"), consisting of a maximum of up to 37,878,787 Shares to be offered by us and the Selling Stockholders at a price per share of $0.66 per share issuable or resold, as applicable, in exchange for cash consideration (plus a 3.0% Transaction Fee (as defined below) in connection with the Primary Offering and Secondary Offering), and a maximum of 6,363,636 Shares to be issued to eligible investors as "Bonus Shares" for no additional cash consideration to us, pursuant to Regulation A, Tier 2, under the Securities Act of 1933, as amended (the "Securities Act" and the "Offering"). The Company will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders.

This Offering is being conducted on a "best efforts" basis, and we and the Selling Stockholders intend to sell the Shares either directly to investors or through registered broker-dealers who are paid commissions. This Offering will terminate on the earlier of (i) the date that is two (2) years after the date on which the SEC qualifies this offering statement on Form 1-A, (ii) the date on which the Primary Offering Maximum Amount (as defined below) is sold, or (iii) when the board of directors of the Company (the "Board"), at its sole discretion, elects to terminate the Offering (in each such case, the "Termination Date").

The minimum investment amount from an investor is $990.00 or 1,500 shares, plus a 3.0% investor transaction fee; however, we expressly reserve the right to waive this minimum in the sole discretion of our management. See "Description of Capital Stock" beginning on page 74 for a discussion of certain items required by Item 14 of Part II of Form 1-A.

We will hold closings at any time at the Company's discretion upon the receipt of investors' subscriptions and acceptance of such subscriptions by the Company. If, on the initial closing date, we have sold less than the Primary Offering Maximum Amount (as defined below), then we may hold one or more additional closings for additional sales of Shares, until the earlier of (i) the sale of the Primary Offering Maximum Amount (as defined below) or (ii) the Termination Date. There is no aggregate minimum requirement for the Offering to become effective; therefore, we reserve the right, subject to applicable securities laws, to begin applying the proceeds from the Offering in accordance with the uses set forth in the section entitled "Use of Proceeds" of this Offering Circular. No funds will be placed in an escrow account during the offering period, and no funds will be returned once an investor's subscription agreement has been accepted by us. Subscriptions for Shares are irrevocable, and the purchase price is non-refundable, unless the Company rejects a subscription, as expressly stated in this Offering Circular. All proceeds received by us from subscribers in this Offering will be available for use by us upon our acceptance of subscriptions for the Shares. We expect to commence the sale of Shares immediately following the qualification of this Offering Circular.

Investing in the Shares involves a high degree of risk. These are speculative securities. You should purchase these securities only if you can afford a complete loss of your investment. **See "<u>Risk Factors</u>" starting on page 5 for a discussion of certain risks that you should consider in connection with an investment in the Shares.**

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

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Number of<br> Shares** | **Price to<br> Public <sup>(2)</sup>** | **Broker-Dealer<br> Discounts<br> and Commissions <sup>(3)</sup>** | **Proceeds to<br> Issuer Before<br> Expenses <sup>(4)</sup>** | **Proceeds to<br> Selling<br> Stockholders<sup>(7)</sup>** |
| Per Share of Series B Common Stock | 37878787<sup>(1)</sup> | $0.66 | $0.03 | $0.63 | $0.63 |
| Bonus Shares | 6363636 |  |  |  |  |
| Transaction Fee (5) |  | $0.02 | $0.001 | $0.02 | $0.02 |
| Per Share plus Transaction Fee |  | $0.68 | $0.03 | $0.65 | $0.68 |
| Total Maximum with Transaction Fee (6) |  | $25750000 | $1632250 | $19997750 | $4120000 |
| Total Maximum Including Value of Bonus Shares and Transaction Fee (6) |  | $29950000 | $1632250 | $24197750 | $4120000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Represents
 up to 31,818,181 Shares to be issued and sold by the Company in the Primary Offering and up to 6,060,606 Shares to be sold by Selling
 Stockholders in the Secondary Offering.

(2) Reflects
 a public offering price using a price per share of $0.66 per Share, plus the $0.02 Transaction Fee
 (as defined below) per Share. In connection with the Primary Offering, the Company is offering up
 to 31,818,181 Shares directly to investors for up to a maximum of approximately $21,630,000. In connection
 with the Secondary Offering, the Selling Stockholders are offering up to 6,060,606 Shares directly
 to investors for up to a maximum of approximately $4,120,000. Additionally, the Company has allocated
 up to 6,363,636 additional Shares to be issued as Bonus Shares to eligible investors for no additional
 consideration (and no Transaction Fee will be applied to any Bonus Shares). The Bonus Shares
 represent 20% of the total number of Shares offered by the Company in connection with the Primary
 Offering. Investors who meet specified investment thresholds, and existing investors who make a new
 cash investment in this Offering, may receive Bonus Shares of up to 20% of the number of Shares purchased
 with their total cash investment in this Offering at the offering price of $0.66 per Share (excluding
 any Transaction Fees). In all cases, eligibility for, and the calculation of, Bonus Shares is based
 on an investor's total cash investment in this Offering and is determined without regard to
 the allocation of the offering proceeds between the Primary Offering and the Secondary Offering,
 and the total number of Bonus Shares issued in this Offering will not exceed 6,363,636 Shares. For
 the purposes of Rule 251(a)(2), the Company is using an implied value of up to approximately
 $4,200,000 for the Bonus Shares. For more information regarding the eligibility criteria and calculation
 of Bonus Shares, see "Plan of Distribution."

&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 minimum investment amount for each subscription is $990.00 or 1,500 shares, which must be rounded up to the nearest whole number,
 plus a 3.0% Transaction Fee (as defined below) per Share. The Offering may be made, in management's discretion, directly to
 investors by the management of the Company on a "best efforts" basis. We reserve the right to offer the Shares through
 broker-dealers who are registered with the Financial Industry Regulatory Authority ("FINRA"). The Company has engaged
 DealMaker Securities LLC, a FINRA/SIPC registered broker-dealer ("Broker") and its affiliates, to perform broker-dealer
 administrative and compliance related functions in connection with this Offering. The Broker does not purchase any securities from
 the Company or from the Selling Stockholders with a view to sell those for the Company or the Selling Stockholders as part of the
 distribution of the security. The Company has agreed to pay Broker and its affiliates a one-time payment of $67,500, and
 monthly payments of $13,000 for up to three months for accountable expenses (total of $39,000), which are subject to refund, if expenses
 are not incurred. Once the offering commences, monthly payments of $13,000 will be paid for service fees up to a maximum of $117,000,
 plus a budget of supplemental marketing fees of $250,000, which may be used at the Company's discretion on a case-by-case basis,
 and a 4.5% commission (x) on the aggregate amount raised by the Company in connection with the Primary Offering and on the aggregate
 amount sold by the Selling Stockholders in connection with the Secondary Offering, and (y) on the Transaction Fee. Neither the
 Broker nor its affiliates will receive compensation on the issuance of the Bonus Shares. In case this Offering is fully subscribed,
 the maximum amount the Company would pay to the Broker is approximately $1,632,250. See "Plan of Distribution" for more
 details.

&nbsp;&nbsp;&nbsp;&nbsp;(4) The amounts shown in
 the "Proceeds to Issuer Before Expenses" column include a deduction of 4.5% for commissions payable to Broker on all
 the Shares being offered in connection with the Primary Offering and the Secondary Offering, including on the Transaction Fee, and
 other Broker and affiliate compensation. The amount shown is before deducting other organization and Offering costs to be borne by
 the Company, including accounting, legal, printing, due diligence, software, marketing, selling and other costs incurred in the Offering
 of the Shares. The Company agreed to bear the costs and expenses on behalf of the Selling Stockholders in connection with
 the Secondary Offering. See "Use of Proceeds" and "Plan of Distribution."

&nbsp;&nbsp;&nbsp;&nbsp;(5) In connection with this
 Offering, investors will be required to pay a transaction fee equal to 3.0% of the subscription price per Share (the "Transaction
 Fee") to the Company at the time of the subscription to help offset estimated transaction costs of 2% for payment processing
 of the investors subscription proceeds (not reflected in the table above). The Broker and its affiliates will also receive compensation
 of 4.5% of the Transaction Fee up to approximately $33,750 (assuming all Shares are sold in connection with the Primary Offering
 and the Secondary Offering), which is included in the maximum compensation described in footnote (2) above. The remainder proceeds
 from the Transaction Fee of up to approximately $716,250 will be allocated to the Company to offset the transactions costs of this
 Offering. Transaction Fee applies to the Primary Offering and the Secondary Offering, but the Transaction Fee does not apply to the
 Bonus Shares eligible investors may receive in this Offering. See "Plan of Distribution" for more details.

&nbsp;&nbsp;&nbsp;&nbsp;(6) The
 Shares are being offered pursuant to Regulation A of Section 3(b) of the Securities Act for Tier 2 offerings. The Shares
 are only being issued to purchasers who satisfy the requirements set forth in Regulation A. We have the option in our sole discretion
 to accept less than the minimum investment. While the Company will not receive any additional consideration for the Bonus Shares
 issued as part of this Offering or the Shares sold by the Selling Stockholders in connection with the Secondary Offering, pursuant
 to Rule 251(a) the total value of the Offering, as reflected here and in Part I of the Offering Statement of which
 this Offering Circular is part, is approximately $29, 950,000 composed of approximately $19,997,750 in actual proceeds to the
 Company from investors, approximately $1,632,250 for the maximum amount the Company would have to pay to the Broker in case of a
 fully subscribed Offering (which includes the investor Transaction Fee), the value of the Bonus Shares of approximately $4,200,000,
 and approximately $4,120,000 in gross proceeds to the Selling Stockholders in connection with the Secondary Offering. This full amount
 of approximately $29,950,000 is the total amount the Company is offering towards its annual $75 million offering cap under Rule 251(a)(2).

(7) The
 Selling Stockholders are offering up to 6,060,606 Shares directly to investors for up to a maximum of approximately $4,120,000 (including
 the Transaction Fee). However, the aggregate amount of approximately up to $114,600, which is derived from the Transaction
 Fee, will be allocated to the Company at the time of the subscription to help offset transaction costs, while the amount of approximately
 up to $5,400 will be allocated to the Broker as part of Broker's commission of 4.5%, as described above. The Company
 will bear the Broker's commission of 4.5% and the other costs and expenses incurred by the Selling Stockholders in connection
 with the Secondary Offering. Therefore, the Selling Stockholders will receive up to $4,000,000, on a pro rata basis, assuming all
 of their Shares offered in the Secondary Offering are sold. The amounts shown in the "Proceeds to Selling Stockholders"
 column does not include a deduction of 4.5% for commissions payable to Broker on the Shares being offered in connection with the
 Secondary Offering through Dealmaker's platform and on the Transaction Fee applicable to those Shares. See "Plan of Distribution—Selling
 Stockholders" for more information.

BONUS SHARES ARE AVAILABLE TO INVESTORS BASED ON THE CRITERIA DISCUSSED BELOW UNDER "PLAN OF DISTRIBUTION." INVESTORS WILL PAY FULL PRICE FOR THEIR SECURITIES, AND IF ELIGIBLE, MAY RECEIVE BONUS SHARES EQUAL TO AN AMOUNT THAT IS UP TO 20% OF THE NUMBER OF SHARES PURCHASED. BONUS SHARES BASED ON THE AMOUNT OF INVESTMENT WILL BE BASED ON A SINGLE TRANSACTION AND ARE NOT CUMULATIVE OF MULTIPLE PURCHASES. THOSE INVESTORS NOT ELIGIBLE FOR ANY BONUS SHARES OR THE MAXIMUM VALUE OF BONUS SHARES WILL EXPERIENCE SIGNIFICANT DILUTION COMPARED TO INVESTORS RECEIVING 20% BONUS SHARES AND WILL RESULT IN INVESTORS PAYING DIFFERENT AMOUNTS FOR THEIR SHARES DEPENDENT ON HOW MANY BONUS SHARES THEY RECEIVE.

GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN TEN PERCENT (10%) OF THE GREATER OF YOUR ANNUAL INCOME OR YOUR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(D)(2)(I)(C) OF REGULATION A+. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV.

IF THE INVESTOR LIVES OUTSIDE OF THE U.S., IT IS THE INVESTOR'S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN INVESTOR.

This Offering Circular contains all of the representations by us concerning this Offering, and no person shall make different or broader statements than those contained herein. Investors are cautioned not to rely upon any information not expressly set forth in this Offering Circular.

The securities underlying this Offering Circular may not be sold until qualified by the Securities and Exchange Commission. This Offering Circular is not an offer to sell, nor soliciting an offer to buy, any Shares in any state or other jurisdiction in which such sale is prohibited.

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

The date of this Offering Circular is December 29, 2025.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [IMPORTANT INFORMATION ABOUT THIS OFFERING CIRCULAR](#front_001) | [ii](#front_001) |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#front_002) | [iii](#front_002) |
| [SUMMARY](#front_003) | [1](#front_003) |
| [REGULATION A+](#front_004) | [3](#front_004) |
| [THE OFFERING](#front_006) | [4](#front_006) |
| [RISK FACTORS](#front_007) | [5](#front_007) |
| [DILUTION](#ABC1) | [33](#ABC1) |
| [PLAN OF DISTRIBUTION](#ABC2) | [34](#ABC2) |
| [USE OF PROCEEDS](#ABC3) | [40](#ABC3) |
| [DESCRIPTION OF THE BUSINESS](#ABC4) | [41](#ABC4) |
| [DESCRIPTION OF PROPERTY](#ABC5) | [48](#ABC5) |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ABC6) | [49](#ABC6) |
| [DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES](#front_008) | [69](#front_008) |
| [COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS](#front_009) | [70](#front_009) |
| [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS](#front_010) | [72](#front_010) |
| [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#front_011) | [73](#front_011) |
| [DESCRIPTION OF CAPITAL STOCK](#front_012) | [74](#front_012) |
| [ABSENCE OF PUBLIC MARKET](#front_013) | [79](#front_013) |
| [DIVIDEND POLICY](#front_014) | [79](#front_014) |
| [WHERE YOU CAN FIND MORE INFORMATION](#front_015) | [79](#front_015) |
| [LEGAL MATTERS](#front_016) | [80](#front_016) |
| [INDEPENDENT AUDITORS](#front_017) | [80](#front_017) |
| [INDEX TO FINANCIAL STATEMENTS](#front_018) | [F-1](#front_018) |
| [PART III – EXHIBITS](#ABC18) | [III-1](#ABC18) |
| [SIGNATURES](#ABC19) | [S-1](#ABC19) |

---

i

**IMPORTANT INFORMATION ABOUT THIS OFFERING CIRCULAR**

We are offering to sell, and seeking offers to buy, our securities only in jurisdictions where such offers and sales are permitted. Please carefully read the information in this Offering Circular and any accompanying offering circular supplements, which we refer to collectively as the Offering Circular. You should rely only on the information contained in this Offering Circular. We have not authorized anyone to provide you with any information other than the information contained in this Offering Circular. The information contained in this Offering Circular is accurate only as of its date or as of the respective dates of any documents or other information incorporated herein by reference, regardless of the time of its delivery or of any sale or delivery of our securities. Neither the delivery of this Offering Circular nor any sale or delivery of our securities shall, under any circumstances, imply that there has been no change in our affairs since the date of this Offering Circular. This Offering Circular will be updated and made for delivery to the extent required by the federal securities laws.

This Offering Circular is part of an Offering Statement that we filed with the SEC using a continuous offering process pursuant to Rule 251(d)(3)(i)(F) under the Securities Act. Periodically, we may provide an offering circular supplement that would add, update or change information contained in this Offering Circular. Any statement that we make in this Offering Circular will be modified or superseded by any inconsistent statement made by us in a subsequent offering circular supplement. The Offering Statement we filed with the SEC includes exhibits that provide more detailed descriptions of the matters discussed in this Offering Circular. You should read this Offering Circular and the related exhibits filed with the SEC and any offering circular supplement, together with additional information contained in our annual reports, semi-annual reports and other reports that we will file periodically with the SEC. The offering statement and all supplements and reports that we have filed or will file in the future can be read at the SEC website, www.sec.gov.

Unless otherwise indicated, data contained in this Offering Circular concerning the business of the Company are based on information from various public sources. Although we believe that these data are generally reliable, such information is inherently imprecise, and our estimates and expectations based on these data involve a number of assumptions and limitations. As a result, you are cautioned not to give undue weight to such data, estimates or expectations.

Our board of directors and our stockholders approved a forward stock split that was effected on December 29, 2025 in a stock split ratio of 20-for-1 (which we refer to as the "Stock Split"). The Stock Split subdivided each outstanding share of capital stock into 20 shares of capital stock. All references to our capital stock, securities, share data, per share data, and related information in this prospectus have been retroactively adjusted, where applicable, to reflect the Stock Split as if it had occurred at the beginning of the earliest period presented.

In this Offering Circular, unless the context indicates otherwise, references to the "Company," "Immersed," "we," "our," and "us" refer to the activities of and the assets and liabilities of the business and operations of Immersed Inc., a Delaware corporation.

ii

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

Some of the statements under "Summary," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Description of Business" and elsewhere in this Offering Circular may constitute "forward-looking statements" for purposes of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar matters that are not historical facts. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "should," "will" and "would" or the negatives of these terms or other comparable terminology.

You should not place undue reliance on forward-looking statements. The cautionary statements set forth in this Offering Circular, including in "Risk Factors" and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These risk factors include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our history of losses and expectation to incur significant expenses and continuing losses at least for the near term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our limited operating history on which to judge our business plan, technology, and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our market opportunity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to properly manage our costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our Visor, Visor Plus and Curator, including the timing for development, manufacturing and initial deliveries of such products and the anticipated revenues and other benefits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The price of our securities has been determined by our management and such price may be deemed arbitrary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our limited resources compared to competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our business strategy, future operations, financial position, estimated revenues and losses, forecasts, projected costs, prospects and plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to grow market share in our existing markets or any new markets we may enter through sales and marketing investments or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to raise capital and the availability of future financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to compete
 and succeed in a highly competitive and rapidly evolving industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our ability to maintain
 key personnel to support our business development and activities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our
 multi-class common stock structure and the concentration of ownership and voting power in our Founder and CEO will continue to limit
 your ability to influence corporate matters after the Offering and could delay or prevent a change in corporate control.

Although the forward-looking statements in this Offering Circular are based on our beliefs, assumptions and expectations, taking into account all information currently available to us, we cannot guarantee future transactions, results, performance, achievements or outcomes. No assurance can be made to any investor by anyone that the expectations reflected in our forward-looking statements will be attained, or that deviations from them will not be material and adverse. We undertake no obligation, other than as may be required by law, to re-issue this Offering Circular or otherwise make public statements updating our forward-looking statements.

iii

**SUMMARY**

This summary highlights selected information contained elsewhere in this Offering Circular. This summary is not complete and does not contain all the information that you should consider before deciding whether to invest in our Shares. You should carefully read the entire Offering Circular, including the risks associated with an investment in the Company discussed in the "Risk Factors" section of this Offering Circular, before making an investment decision. Some of the statements in this Offering Circular are forward-looking statements. See the section entitled "Cautionary Statement Regarding Forward-Looking Statements."

**Overview**

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed spatial computing software optimized for enterprise, that allows users to work full-time with their team in virtual AR/VR offices. Immersed is also developing purpose-built spatial computing hardware called "Visor" that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets, which Immersed intends to bring to mass production with a major AR/VR manufacturing company, and an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs) that is expected to considerably increase worker productivity. With our innovative spatial computing software and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

Immersed's workplace productivity application is one of the most widely used AR/VR enterprise solutions, uniquely connecting any AR/VR headset to any computer operating system and providing up to five virtual monitors. Compatible with hardware from major companies like Meta, Microsoft, Apple, HTC, ByteDance, and SteamVR, the application enables users to work independently or collaborate by sharing screens and whiteboards, regardless of location. Additionally, its integrated AI assistant, Curator, is designed to index and analyze virtual interactions while preserving privacy, allowing users to recall information via natural language prompts and ultimately boosting productivity and cost savings. Built on the Unity game engine and OpenXR standards—and enhanced by Microsoft's Mixed Reality Toolkit 3 and Qualcomm's Snapdragon Spaces SDK—Immersed delivers a seamless, hardware-agnostic virtual experience now available across all major AR/VR app stores. Our technologies and services offerings are described in greater detail in "Description of Business" below together with a detailed description of our entire business.

Our principal place of business and mailing address is Immersed Inc., 106 E. 6th St. STE 900-202, Austin, Texas 78701, and our telephone number is 512-649-5589. Our website is https://immersed.com. The information contained therein or accessible thereby shall not be deemed to be incorporated into this Offering Circular.

**Summary Risk Factors**

Investing in our securities involves a high degree of risk. You should carefully consider the risks described in the "Risk Factors" section before making an investment decision. Some of the key risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We may need to raise additional funds and these funds may not be available when needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have experienced rapid growth and expect to invest in growth for the foreseeable future. If we fail to manage growth effectively, our business, operating results and financial condition would be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We have a history of losses and expect to incur significant expenses and continuing losses at least for the near term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at a similar rate, if at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We currently face competition from a number of companies and expect to face significant competition in the future as the market for spatial computing develops. If we do not compete effectively, our business, financial condition, and results of operations could be harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· As a provider of a virtual reality software solution for hybrid and remote work, we face potential risks associated with the post-pandemic return to office. The shift back to traditional office environments could impact the demand for our AR/ VR collaboration application and remote work solutions.

&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our
 multi-class common stock structure and the concentration of ownership and voting power in our Founder and CEO will continue to limit
 your ability to influence corporate matters after the Offering and could delay or prevent a change in corporate control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our success may be reliant on the development and integration of the Immersed Visor, which could introduce additional risks and challenges to the business. The following considerations address the potential risks associated with developing and incorporating essential hardware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We will rely on a limited number of suppliers and manufacturers for the Immersed Visor, and availability of supplied hardware may be affected by factors such as tariffs or supply disruptions caused by the COVID-19 pandemic and general economic conditions. We may not be able to obtain sufficient components or completed Visors to meet our needs, or obtain such materials on favorable terms or at all, which could impair our ability to fulfill orders in a timely manner or increase our costs of production.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Some of our facilities are located in areas susceptible to wildfires and other severe weather events. An earthquake, wildfire or other natural disaster or resource shortage, including public safety power shut-offs that have occurred and will continue to occur in Texas or other states, could disrupt and harm our operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to retain current subscribers or add new subscribers, our business would be seriously harmed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Computer malware, viruses, ransomware, hacking, phishing attacks and other network disruptions could result in security and privacy breaches and interruption in service, which would harm our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Immersed has identified a significant deficiency in its design and implement of internal controls to formalize roles and review responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are dependent on the success of our customers in the enterprise market. Adverse events relating to our customers could have a negative impact on our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We intend to provide service-level agreement commitments related to our platform. If we fail to meet these contractual commitments, we could be obligated to provide refunds of prepaid amounts or other credits, which would lower our revenue and harm our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to offer high-quality support, our ability to retain and attract customers could suffer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Acquisitions, strategic investments, partnerships, and alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We are exposed to collection and credit risks, which could impact our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our current research and development efforts may not produce successful products or features that result in significant revenue, cost savings or other benefits in the near future. If we do not realize significant revenue from our research and development efforts, our business and operating results could be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our future growth and success is dependent upon the continuing rapid adoption of spatial computing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The spatial computing market is characterized by rapid technological change, which requires us to continue to develop new services, products and service and product innovations. Any delays in such development could adversely affect market adoption of our products and services and could adversely affect our business and financial results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Developing and launching an AI assistant product presents unique challenges and risks that could adversely impact the business and operations of the Post-Combination Company. The unsuccessful development, deployment, and adoption of an AI assistant could adversely affect our business, financial condition and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If we fail to timely release updates and new features to our platform and adapt and respond effectively to rapidly changing technology, evolving industry standards, changing regulations, or changing customer needs, requirements, or preferences, our platform may become less competitive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our business may be adversely affected if we are unable to protect our spatial computing technology and intellectual property from unauthorized use by third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Because we store, process, and use data, some of which contains personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customers or retention, any of which could seriously harm our business.

**REGULATION A+**

We are offering our shares of Series B Common Stock pursuant to rules of the SEC mandated under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). These offering rules are often referred to as "Regulation A+." We are relying upon "Tier 2" of Regulation A+, which allows us to offer and sell up to $75 million in a 12-month period.

In accordance with the requirements of Tier 2 of Regulation A+, we are required to publicly file annual, semiannual, and current event reports with the SEC.

**Bonus Shares**

In connection with this Offering, the Company has allocated up to 6,363,636 additional shares of Series B Common Stock to be issued as Bonus Shares to eligible investors for no additional consideration, and no Transaction Fee will be applied to any Bonus Shares. The Bonus Shares represent 20% of the total number of Shares offered by the Company in connection with the Primary Offering. Investors who meet specified investment thresholds, and existing investors who make a new cash investment in this Offering, may receive Bonus Shares of up to 20% of the number of Shares purchased with their total cash investment in this Offering at the offering price of $0.66 per Share (excluding any Transaction Fees). In all cases, eligibility for, and the calculation of, Bonus Shares is based on an investor's total cash investment in this Offering and is determined without regard to the allocation of the offering proceeds between the Primary Offering and the Secondary Offering, and the total number of Bonus Shares issued in this Offering will not exceed 6,363,636 Shares. The amount of Bonus Shares investors in this Offering are eligible to receive and the criteria for receiving such Bonus Shares is described under "Plan of Distribution—Bonus Shares for Certain Investors (Up to 20%)" below.

Our current noteholders, including holders of convertible promissory notes issued by us, will not be deemed "investors" eligible for Bonus Shares unless and solely to the extent they make a new cash investment in this Offering after qualification by the SEC. No Bonus Shares will be issued in respect of any conversion, exchange, or cancellation of outstanding indebtedness, including the conversion of any notes issued by us, whether before or after qualification of this Offering by the SEC.

 **Corporate Actions**

In connection with this Offering, on October 8, 2025, the Board approved and recommended that the Company's stockholders approve certain corporate actions. These corporate actions were subsequently approved by the stockholders on October 20, 2025, and include, among others:

● <u>Second Amended and Restated Certificate of Incorporation</u>: the approval to amend and restate our certificate of incorporation to, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increase
 the number of shares of the authorized capital stock of the Company to the amount described
 under "Description of Capital Stock—Authorized Capital Stock;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) integrate
 and amend the voting powers, designations, preferences and relative, participating, optional
 or other special rights, and qualifications, limitations or restrictions of the Series 1
 Convertible Preferred Stock, par value $0.00001 per share, of the Company (the "Series
 1 Preferred Stock"), as are set forth in the Certificate of Designation of Series 1
 Convertible Preferred Stock of the Company, dated as of May 13, 2021, as amended by a Certificate
 of Amendment dated November 19, 2021;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) create
 three new series of common stock, par value of $0.00001 per share (the "Common Stock"),
 comprising of (A) shares designated Series A Common Stock, which shall be non-voting (the
 "Series A Common Stock"); (B) shares designated Series B Common Stock, which
 shall entitle the holder thereof to one vote per share on all matters submitted to the stockholders;
 and (C) shares designated Series C Common Stock, which shall entitle the holder thereof to
 ten (10) votes per share on all matters submitted to the stockholders (the "Series
 C Common Stock");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reclassify,
 change and subdivide each (A) share of Common Stock issued and outstanding immediately prior
 to the effectiveness of the Second Amended and Restated Certificate of Incorporation on December
 29, 2025 (the "Effective Date") into twenty (20) shares of Series B Common Stock,
 and (B) each share of Series 1 Preferred Stock issued and outstanding immediately prior to
 the Effective Date into twenty (20) shares of Series 1 Preferred Stock (the "Reclassification");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) adjust
 the conversion rate applicable to the Series 1 Preferred Stock, whereby each share of Series
 1 Preferred Stock when converted into shares of Series B Common Stock will be converted on
 a 1 to 1.1 ratio;

● <u>Founder Exchange</u>: the approval of that certain exchange agreement entered into by and between the Founder and the Company, dated as of the Effective Date, by which the Company issued 75,833,333 shares of Series C Common Stock to the Founder in consideration for the contribution of 75,833,333 shares of Series B Common Stock then held by the Founder after the Reclassification;

● <u>2017 Stock Option Plan</u>: the approval to amend the Company's 2017 Stock Option Plan to change the definition of "Shares" so that the Company's awards issued under the 2017 Stock Option Plan may only be converted into shares of Series A Common Stock; and

● <u>2025 Equity Incentive Plan</u>: the approval to adopt the Company's 2025 Equity Incentive Plan and the standard form of stock option agreement.

For additional information, see "Description of Capital Stock."

**THE** **OFFERING**

---

| | |
|:---|:---|
| **Issuer** | Immersed Inc., a Delaware corporation. |
| **Securities Offered by the Company** | A maximum of 31,818,181 shares of Series B Common Stock at an offering price of $0.66 per Share, plus up to 6,363,636 additional Shares eligible to be issued as Bonus Shares for no additional consideration. |
| **Securities Offered by Selling Stockholders** | A maximum of 6,06,606 shares of Series B Common Stock at an offering price of $0.66 for up to $4,000,000 to be received by the Selling Stockholders. |
| **Securities Outstanding before the Offering** <br> **(as of the date of this Offering Circular):**  |  |
| Shares of capital stock<sup>(1)</sup> | (i) Zero shares of Series A Common Stock; <br> (ii) 57,434,831 shares of Series B Common Stock; <br> (iii) 75,833,333 shares of Series C Common Stock; and <br> (iv) 166,305,280 shares of Series 1 Preferred Stock.  |
| **Securities Outstanding after the Offering<sup>(2)</sup>:** |  |
| Shares of capital stock <sup>(1)</sup> | (i) Zero Series A Common Stock; <br> (ii) 95,616,648 Series B Common Stock; <br> (iii) 75,833,333 Series C Common Stock; and <br> (iv) 166,305,280 Series 1 Preferred Stock.  |
| **Price per Share** | $0.66 |
| **Transaction Fee per Share** | $0.02 |
| **Primary Offering Maximum Amount** | Approximately $21,629,999 (including the investor Transaction Fee of 3.0% to offset our Offering costs assuming the Primary Offering Maximum Amount is raised). |
| **Secondary Offering Maximum Amount<sup>(3)</sup>** | Approximately $4,120,000 (including the investor Transaction Fee of 3.0%, which will be allocated to the Company to offset the Offering costs assuming the Secondary Offering Maximum Amount is sold). |
| **Use of Proceeds** | If the Primary Offering Maximum Amount is sold, our net proceeds (after our estimated offering expenses, broker-dealer discounts and commissions of approximately $2,369,630) are expected to be approximately $19,380,370 (including the Transaction Fee applied on the Selling Stockholders' Shares, assuming the total Selling Stockholders' Shares are sold in connection with the Secondary Offering, which will be allocated to the Company to offset the Offering costs). We intend to use the net proceeds from this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, offering expenses, and such other purposes described in the "Use of Proceeds" section of this Offering Circular. We will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders in connection with the Secondary Offering. |
| **Risk Factors** | Investing in our Shares involves a high degree of risk. See "Risk Factors" starting on page 5. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) As
 of December 29, 2025, 243,189,700 options to purchase shares of Series B Common Stock have been issued pursuant to stock option award
 agreements under the Company's 2017 Stock Option Plan (as amended from time to time, the "2017 Stock Option Plan"),
 with exercise prices ranging from $0.02 per share to $3.70 per share. In November 2025, the Board and the Company's
 stockholders approved the termination of the 2017 Stock Option Plan and the adoption of the Company's 2025 Equity Incentive
 Plan (the "2025 Plan"), which replaces the 2017 Stock Option Plan for all new equity compensation awards. As
 of December 29, 2025, 42,186,380 shares of Series A Common Stock remain available for future grants under the 2025 Plan. As of the
 date hereof, no options to purchase shares of Series A Common Stock have been issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Considering the maximum amount of Shares in connection
 with the Primary Offering is issued and sold by us and all Bonus Shares are issued, and considering the maximum amount of Shares in connection
 with the Secondary Offering is sold by the Selling Stockholders.

(3) The Selling Stockholders will receive up to $4,000,000, on a pro rata basis, assuming the Secondary Offering Maximum Amount is sold.

**RISK** **FACTORS**

You should carefully consider the risks described below in addition to all other information included in this Offering Circular before making an investment decision. The risks described below are not the only risks we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business operations. Any of the following risks could materially and adversely affect our business, results of operations and financial condition.

This Offering Circular also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks faced by us described below and elsewhere in this Offering Circular. You should read "Cautionary Statement Regarding Forward-Looking Statements" for more information.

**Risks Related to the Business**

***We may need to raise additional funds and these funds may not be available when needed.***

We may need to raise additional funds in the future to further scale our business and expand to additional markets. We may raise additional funds through the issuance of equity, equity-related or debt securities, or by obtaining credit from financial institutions. We cannot be certain that additional funds will be available on favorable terms when required, or at all. If we cannot raise additional funds when needed, our financial condition, results of operations, business and prospects could be materially and adversely affected. If we raise funds through the issuance of debt securities or other loan transactions, we could face significant interest payments, covenants that restrict our business, or other unfavorable terms. In addition, to the extent we raise funds through the sale of additional equity securities, our stockholders would experience additional dilution.

We could also be required to seek funds through arrangements with collaborative partners or otherwise at an earlier stage than would be desirable. In such a case, we may be required to relinquish rights to some of our technologies or product candidate or agree to terms unfavorable to us, any of which may have a material adverse effect on our business, operating results, and prospects.

If we are unable to obtain funding on a timely basis, we may be required to significantly curtail, delay or discontinue one or more of our research or development programs, the commercialization of any product candidate, or be unable to expand our operations or otherwise capitalize on our business opportunities, as desired, which could materially affect our business, financial condition, and results of operations.

***We may require additional capital to support the growth of our business, and this capital might not be available on acceptable terms, if at all.***

We have funded our operations since inception primarily with the issuance of equity securities, debt and cash generated from sales from our platform, including consumer subscriptions and order deposits. We cannot be certain when or if our operations will generate sufficient cash to fully fund our ongoing operations or the growth of our business. We intend to continue to make investments to support our business and may require additional funds to respond to business challenges, including the need to develop new solutions, products, services or enhance our existing solutions, products or services, enhance our operating infrastructure, expand globally and acquire complementary businesses and technologies. Additional financing may not be available on terms favorable to us, if at all. If adequate funds are not available on acceptable terms, we may be unable to invest in future growth opportunities, which could harm our business, operating results, and financial condition. If we incur additional debt, the debt holders would have rights senior to holders of common stock to make claims on our assets, and the terms of any debt could restrict our operations, including our ability to pay dividends on our common stock. Furthermore, if we issue additional equity securities, stockholders will experience dilution, and the new equity securities could have rights senior to those of our common stock. Because our decision to issue securities in the future will depend on numerous considerations, including factors beyond our control, we cannot predict or estimate the amount, timing, or nature of any future issuances of debt, equity, or other securities. As a result, our stockholders bear the risk of future issuances of debt, equity, or other securities reducing the value of our common stock and diluting their interests. Our inability to obtain adequate financing on terms satisfactory to us, when we require it, could significantly limit our ability to continue to support our business growth, respond to business challenges, expand our operations or otherwise capitalize on our business opportunities due to lack of sufficient capital. Even if we are able to raise such capital, we cannot assure you that it will enable us to achieve better operating results or grow our business.

***We have experienced rapid growth and expect to invest in growth for the foreseeable future. If we fail to manage growth effectively, our business, operating results and financial condition would be adversely affected.***

We have experienced rapid growth in recent periods. For example, the number of our team has grown from one employee as of January 4, 2017, to 27 team members as of the date of this Offering Circular, and we expect to continue to experience rapid growth over the near term. The growth and expansion of our business has placed and continues to place a significant strain on our management, operations, financial infrastructure and corporate culture.

In the event of further growth, our information technology systems and internal controls over financial reporting and procedures may not be adequate to support our operations and may introduce opportunities for data security incidents that may interrupt business operations or permit bad actors to obtain unauthorized access to business information or misappropriate funds.

To manage growth in operations and personnel, we will need to continue to improve our operational, financial and management controls and reporting systems and procedures. Failure to manage growth effectively could result in difficulty or delays in attracting new customers, declines in quality or customer satisfaction, increases in costs, difficulties in introducing or enhancing products and services, loss of customers, information security vulnerabilities or other operational difficulties, any of which could adversely affect our business performance and operating results.

***We have a history of losses and expect to incur significant expenses and continuing losses at least for the near term.***

For the six months ended June 30, 2025, we incurred a net loss of approximately $1,876,218, and as of June 30, 2025 we had an accumulated deficit of approximately $33,250,609. We incurred a net loss of approximately $14,269,329 and $5,307,684 for the years ended December 31, 2024 and 2023, respectively, and, as of December 31, 2024, had an accumulated deficit of approximately $31,374,391. We believe we will continue to incur operating and net losses each quarter at least for the near term. Even if we achieve profitability, there can be no assurance that we will be able to maintain profitability in the future. Though Immersed's leadership team desires to reach profitability as soon as possible and maintain it, our potential profitability is particularly dependent upon the continued adoption of spatial computing and the use of our platform by commercial and individual consumers, which may not occur at the levels we currently anticipate or at all.

We have historically funded the net cash needed for operating and investing activities through the sale of equity and through debt financing. Before this Offering, we have cash to fund our forecasted operating expenses, working capital requirements and capital expenditures through April 2026. Therefore, we do not have adequate liquidity to meet our forecasted obligations for a period of one year from the date of this Offering. We have historically raised capital through several financing arrangements, including the issuance of convertible promissory notes pursuant to Regulation D, public crowdfunding campaigns, agreements with merchant cash advance providers, and loan agreements. These financing arrangements have been entered into at different times and on varying terms, and some of them remain outstanding. See "Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Capital Resources—Debt and Financing Arrangements." Our plan is to raise additional capital through the issuance and sale of the Shares in connection with this Offering. If we are unable to raise additional capital through this Offering, we will decrease spending levels for labor, and sales and marketing programs, and we will also reduce discretionary spending, including reducing our direct and indirect labor, reducing sales and marketing costs and focusing our available capital on a reduced number of prioritized activities and programs, in order to have sufficient liquidity to fund our operations for at least one year from the date of the issuance of these financial statements. We cannot assure you that such measures would be sufficient to enable us to fund our operations for one year from the date of this Offering if we are unable to raise sufficient funds in connection with this Offering.

***We are subject to liquidity risk.***

Liquidity risk arises through the excess of financial obligations due over available financial assets at any point in time. Our objective in managing liquidity risk will be to maintain sufficient readily available cash reserves and credit in order to meet its liquidity requirements at any point in time. As we do not currently have revenue and are not expected to have revenue in the foreseeable future, we will be reliant upon debt and equity financing to mitigate liquidity risk. The total cost and planned timing of acquisitions and/or other development or construction projects is not currently determinable, and it is not currently known precisely when we will require external financing in future periods. There is no guarantee that external financing will be available on commercially reasonable terms, or at all, and our inability to finance future development and acquisitions would have a material and adverse effect on us and our business and prospects.

***We may not be able to continue as a "going concern."***

The Company sustained recurring losses and negative cash flows from operations for the six months ended June 30, 2025, and for the years ended December 31, 2024 and 2023. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on various factors, such as our ability to continue to raise additional debt or equity financing, including through this Offering, and to increase revenue through our sales efforts. We cannot assure you that the consummation of this Offering will eliminate any doubts about our ability to continue as a going concern. We cannot provide any assurance that we will be able to raise sufficient additional capital to meet the needs of our business. If we are unable to continue as a going concern, we may be forced to sell our assets, seek bankruptcy relief or otherwise restructure our balance sheet or liquidate, and you could lose all or a substantial portion of your investment.

***Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, our business could fail to grow at a similar rate, if at all.***

This Offering Circular includes estimates of the addressable market for our products. The estimates of market opportunity and forecasts of market growth we have made and may make may prove to be inaccurate. Market opportunity estimates and growth forecasts, including those we have generated ourselves, are subject to significant uncertainty and are based on assumptions and estimates that may not prove to be accurate. The variables that affect the calculation of our market opportunity are also subject to change over time.

Estimates of market opportunity in industries are uncertain, given the earlier stage of adoption of solutions for AR/VR in the markets. Our estimates of the addressable market opportunities depend on a variety of factors, including the number of potential users of our platform across various industries. We cannot be sure that such industries will adopt AR/VR generally, or our solutions specifically, to any particular extent or at any particular rate.

Our expectations regarding potential future market addressable opportunities are subject to even greater uncertainty. For example, our expectations regarding future market opportunities depend, among other things, on the extent to which we are able to develop new products and features that expand the applicability of our software platform. In addition, our expectations regarding future market opportunities represented by augmented reality and virtual reality applications are subject to uncertainties relating from the fact that such applications are at relatively early stages of development and may not grow at the rates we expect. The extent to which engineers, technicians or other potential users of our platform in industries outside higher education are representative of other future market opportunities will depend on those industries having use cases that can be served by AR/VR content. Our ability to address those opportunities will depend on our developing products that are responsive to those use cases.

We cannot assure you that any particular number or percentage of addressable users or companies covered by our market opportunity estimates will purchase our solutions at all or generate any particular level of revenue for us. In addition, any expansion in our market depends on a number of factors, including the cost, performance and perceived value associated with our platform and those of our competitors.

Even if the market in which we compete meets the size estimates and growth we forecast, our business could fail to achieve a substantial share of this market or grow at a similar rate, if at all. Our growth is subject to many risks and uncertainties. Accordingly, the estimates of market opportunity or forecasts of market growth we have made and may make should not be taken as indicative of our future growth.

***We currently face competition from a number of companies and expect to face significant competition in the future as the market for spatial computing develops. If we do not compete effectively, our business, financial condition, and results of operations could be harmed.***

The spatial computing market is relatively new and competition is still developing. The markets in which we operate are highly competitive. A significant number of companies have developed or are developing AR/VR solutions that currently, or in the future may, compete with some or all of our offerings and we also compete with competitors offering traditional, offline methods of workplace interaction and productivity. As we look to market and sell our platform to potential customers with existing solutions, we must convince their internal stakeholders that our platform is superior and/or more cost-effective to their current solutions.

With respect to our software platform, we primarily compete against Meta Workrooms, EngageXR, Virbela, etc., in the spatial computing industry. Outside of the enterprise industry, we also compete with other development platforms that offer virtual screens like Virtual Desktop, BigScreen, and Apple Vision Pro.

With respect to our Immersed Visor, we compete in a fragmented ecosystem composed of select divisions of large, well-established companies as well as privately held companies. The large companies in our ecosystem may play multiple roles given the breadth of their business. Examples of these large companies are Apple, Meta, Google, HTC, Bytedance and Microsoft. Most of these companies are or could be seen as our competition.

With the introduction of new technologies and market entrants, we expect that the competitive environment will remain intense or become even more intense in the future. Some of our actual and potential competitors have been acquired by other larger companies and have made or may make acquisitions, or may enter into partnerships or other strategic relationships that may provide more comprehensive offerings than they offered individually or achieve greater economies of scale than us.

Our competitors vary in size and in the breadth and scope of the solutions offered. Some of our competitors and potential competitors have greater name recognition, longer operating histories, more established customer relationships, larger marketing budgets and greater financial and operational resources than we do. Further, other potential competitors not currently offering competing products or services may expand their offerings to compete with our platform or enter the market through acquisitions, partnerships or strategic relationships. In addition, our current and potential competitors may have or establish cooperative relationships among themselves or with our customers or other third parties that may further enhance their resources and offerings in our addressable market. Our competitors may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards, and customer requirements. An existing competitor or new entrant could introduce new technology that is perceived to be easier to use or otherwise favorable to ours, which could reduce demand for our software platform or Immersed Visor.

For all of these reasons, we may not be able to compete successfully against our current or future competitors, which could result in the failure of our platform to continue to achieve or maintain market acceptance, which would harm our business, results of operations and financial condition.

Our business, like many others, is susceptible to the potential risks and uncertainties associated with general economic downturns, including those resulting from future pandemics. These economic downturns could significantly impact our operations, financial performance, and overall business.

The impact of a future pandemic, including changes in consumer and business behavior, pandemic fears and market downturns, and restrictions on business and individual activities, could create significant volatility in the global and domestic economy and lead to reduced economic activity.

The following are potential risks associated with a general economic downturn resulting from a future pandemic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Customer Spending: Economic downturns often lead to reduced consumer and business spending, resulting in decreased demand for our VR collaboration application and services. Organizations may cut back on non-essential expenses, including technology investments, negatively impacting our revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Delayed Decision-Making: During economic uncertainty, businesses may postpone or delay making purchasing decisions, leading to longer sales cycles and potential revenue decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Funding and Investments: Economic downturns can lead to reduced venture capital funding, fewer investments in technology companies, and lower valuations, limiting our ability to raise necessary capital for growth and expansion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disrupted Supply Chains: Economic downturns may disrupt supply chains, affecting the availability of necessary hardware components, equipment, and resources required for our platform's functionality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Impact on Advertising and Marketing: Organizations may cut back on advertising and marketing budgets during economic downturns, making it challenging to attract new users and customers to our platform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Subscription Cancellations: Economic pressures may lead businesses and individuals to cancel or downgrade their subscriptions, reducing our recurring revenue and impacting overall financial stability.

These potential risks associated with an economic downturn resulting from a future pandemic could significantly impact our operations, financial performance, and overall business.

***As a provider of a virtual reality software solution for hybrid and remote work, we face potential risks associated with the post-pandemic return to office. The shift back to traditional office environments could impact the demand for our AR/ VR collaboration application and remote work solutions.***

The following are potential risks associated with the return to the office:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reduced Demand for Remote Work Solutions: Organizations may transition back to in-office work arrangements, leading to decreased demand for remote-only work tools and virtual collaboration solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Disrupted Business Model: A widespread return to office environments could challenge our business model, which focuses on providing virtual collaboration tools for hybrid and remote work scenarios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Loss of Users: Users who adopted our platform primarily for remote work purposes may no longer require our solution once they return to office settings, leading to a potential loss of users and subscribers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Competition from Traditional Tools: Organizations may revert to using traditional communication and collaboration tools commonly used in office settings, reducing the perceived need for virtual reality solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adaptation to New Market Dynamics: We may need to adapt our product offering to cater to a changing market dynamic where remote work coexists with office-based work, which could require additional development efforts and resources.

These potential risks associated with post-pandemic return to work could significantly impact our operations, financial performance, and overall business.

***Our success may be reliant on the development and integration of the Immersed Visor, which could introduce additional risks and challenges to the business. The following considerations address the potential risks associated with developing and incorporating essential hardware.***

While we are in advanced discussions with various potential partners to help to develop and manufacture the Immersed Visor, no formal agreement/partnership has been struck yet. There is a risk that the plans for the Immersed Visor do not come to fruition since developing new hardware components involves intricate engineering, design, manufacturing, and testing processes. Technical challenges, unforeseen complexities, or delays in the development timeline could impact product launch schedules, leading to missed opportunities and revenue targets. Additionally, integrating new hardware seamlessly into our existing software platforms may be complex. Compatibility issues, interoperability challenges, or disruptions during integration could lead to customer frustration and hinder the successful deployment of the integrated solution. Developing and manufacturing hardware often involves significant upfront costs. Cost overruns due to unexpected expenses in research, development, production, or supply chain management could strain financial resources and negatively impact profitability.

The success of new hardware components depends on their adoption by customers. Poor market reception, reluctance to adopt new technology, or the emergence of competing solutions could impact the demand for the hardware product. Scaling up production to meet demand can be challenging. Scaling too quickly may lead to production issues, while scaling too slowly may result in missed market opportunities. The hardware development process may span multiple years, during which technology evolves rapidly. There is a risk that the developed hardware may become obsolete before or shortly after its launch, affecting its competitiveness and appeal.

Hardware development and manufacturing processes can have environmental implications. Failing to consider sustainable practices and address environmental concerns could lead to reputational damage and regulatory challenges. Offering warranties and providing reliable customer support for hardware products is essential. Inadequate warranty coverage or inefficient customer support could lead to dissatisfied customers and decreased brand loyalty. If the Immersed Visor is not manufactured and sold or is sold but received poorly, this could significantly impact our operations, financial performance, and overall business.

***We will rely on a limited number of suppliers and manufacturers for the Visor, and availability of supplied hardware may be affected by factors such as tariffs or supply disruptions and general economic conditions. We may not be able to obtain sufficient components or completed Visors to meet our needs, or obtain such materials on favorable terms or at all, which could impair our ability to fulfill orders in a timely manner or increase our costs of production.***

We will rely on a limited number of manufacturers and suppliers of components for the Visor, including in some cases only a single supplier. This reliance on a limited number of suppliers and manufacturers increases our risks, since we do not currently have proven reliable alternative or replacement manufacturers beyond these key parties. In the event of interruption, we may not be able to increase capacity from other sources or develop alternate or secondary sources, and if such sources become available, they may result in material additional costs and substantial delays.

Further, our suppliers are subject to government restrictions. Such restrictions may have a material adverse effect on our suppliers' ability to manufacture and supply such components in a timely manner. Such disruptions could adversely affect our business if it is not able to meet customer demands. In addition, some of our suppliers and manufacturers are located in China. Our access to suppliers in China may be limited or impaired as a result of tariffs or other government restrictions in response to geopolitical factors. The company must ensure that its own-brand hardware products comply with industry standards, safety regulations, and other legal requirements.

The company is dependent on its ability to secure favorable terms and pricing, and to maintain positive a relationship with its third-party manufacturers. Disagreements, contractual disputes, or changes in terms could impact the company's profitability and operational efficiency.

If we face supply constraints for any of the reasons described above, it may not be possible to obtain or increase supplies on acceptable terms, which may undermine our ability to satisfy customer demands in a timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build and supply necessary hardware components in sufficient volume.

Identifying suitable suppliers can be an extensive process that requires us to become satisfied with our suppliers' quality control, technical capabilities, responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers would have an adverse effect on our business, financial condition and operating results.

***As a company planning to sell and distribute our own-brand hardware manufactured by a third party, we face specific risks associated with the manufacturing, quality control, branding, and customer experience of these products that could harm our business, financial condition or result of operations.***

By planning to rely on third-party manufacturers to produce the Immersed Visor, our success relies on the manufacturing capabilities, quality, and reliability of third-party manufacturers. Any disruption in the manufacturing process, quality issues, or failure to meet production deadlines could lead to supply shortages, delays, and potential revenue loss. We introduce risks that could impact our product availability. Ensuring consistent quality and performance of the manufactured hardware requires stringent quality control measures. Failure to maintain quality standards can lead to product defects, customer dissatisfaction, and potential legal claims.

In addition, the quality and reliability of our products directly impact our brand reputation. Poor- quality products or product defects could tarnish our brand image and erode customer trust. The company may face risks related to intellectual property infringement or counterfeiting of its own-brand hardware by third parties. Legal disputes, reputational damage, and lost sales could result from such activities.

Inconsistent product quality, functionality, or customer support can lead to a negative customer experience, reduced customer satisfaction, and potential loss of repeat business.

Our products must comply with relevant regulations and standards to ensure they are safe and legal for consumers to use. Non-compliance could result in fines, recalls, or legal actions. Any one of the risks associated with selling and distributing our own-brand hardware manufactured by a third party could harm our business, financial condition or result of operations.

***Some of our facilities are located in areas susceptible to wildfires and other severe weather events. An earthquake, wildfire or other natural disaster or resource shortage, including public safety power shut-offs that have occurred and will continue to occur in Texas or other states, could disrupt and harm our operations.***

Our headquarters and largest facility is located in Austin, Texas. The occurrence of a natural disaster such as an earthquake, drought, flood, fire, localized extended outages of critical utilities or transportation systems, or any critical resource shortages could cause a significant interruption in our business, damage or destroy our facilities, or cause us to incur significant costs, any of which could harm our business, financial condition, and results of operations. Any insurance we maintain against such risks may not be adequate to cover losses in any particular case.

***If we fail to retain current subscribers or add new subscribers, our business would be seriously harmed.***

We had over 1.3 million free and paid subscribers as of December 31, 2024. Our future revenue growth will depend in significant part on our ability to retain our existing customers and increase the number of our subscribers. Spatial data is an emerging market, and businesses and consumers may not adopt the use of spatial computing or our platform on a widespread basis or on the timelines we anticipate. It is possible that our paid subscriber growth rate could decline over time if we achieve higher market penetration rates. If current and potential subscribers do not perceive our platform and products as useful, we may not be able to attract new subscribers or retain existing subscribers.

There are many factors that could negatively affect subscriber retention and growth, including if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our competitors develop superior offerings or attempt to mimic our products, which could harm our subscriber engagement and growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we fail to introduce new products and services or those we introduce are poorly received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we are unable to continue to develop products that work with a variety of mobile operating systems, networks, smartphones and computers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are changes in subscriber sentiment about the quality or usefulness of our existing products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are concerns about the privacy implications, safety, or security of our platform or products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· there are changes in our platform or products that are mandated by legislation, regulatory authorities or litigation, including settlements or consent decrees that adversely affect the subscriber's experience;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· technical or other problems frustrate subscribers' experiences with our platform or products, particularly if those problems prevent us from delivering our products in a fast and reliable manner; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· we fail to provide adequate service to subscribers.

Decreases to our subscriber retention or growth could seriously harm our business and results of operation.

***Computer malware, viruses, ransomware, hacking, phishing attacks and other network disruptions could result in security and privacy breaches and interruption in service, which would harm our business.***

Computer malware, viruses, physical or electronic break-ins and similar disruptions could lead to interruption and delays in our services and operations and loss, misuse or theft of data. Computer malware, viruses, ransomware, hacking and phishing attacks against online networks have become more prevalent and may occur on our systems in the future. Any successful attempts by cyber attackers to disrupt our services or systems could result in mandated user notifications, litigation, government investigations, significant fines and expenditures; divert management's attention from operations; deter people from using our platform; damage our brand and reputation; and materially adversely affect our business and results of operations.

Insurance may not be sufficient to cover significant expenses and losses related to cyber-attacks. Efforts to prevent cyber attackers from entering computer systems are expensive to implement, and we may not be able to avoid attacks that arise through computer systems of our third-party vendors. Though it is difficult to determine what, if any, harm may directly result from any specific interruption or attack, any failure to maintain performance, reliability, security and availability of systems and technical infrastructure may, in addition to other losses, harm our reputation, brand and ability to attract subscribers.

We have not previously experienced, but may in the future experience, service disruptions, outages and other performance problems due to a variety of factors, including infrastructure changes, third-party service providers, human or software errors and capacity constraints. If our services are unavailable when subscribers attempt to access them, they may seek other services, which could reduce demand for our solutions from target subscribers.

In the event of a disaster or catastrophe, we would seek to recover a local version of our code base and push it back up to another repository. It may be difficult or impossible to perform these steps and continue normal business operations due to the nature of a particular disaster or catastrophe, especially during peak periods, which could cause additional reputational damages, or loss of revenues, any of which would adversely affect our business and financial results.

***While we to date have not made material acquisitions, should we pursue acquisitions in the future, we would be subject to risks associated with acquisitions.***

We may acquire additional assets, products, technologies or businesses that are complementary to our existing business. The process of identifying and consummating acquisitions and the subsequent integration of new assets and businesses into our existing business would require attention from management and could result in a diversion of resources from our existing business, which in turn could have an adverse effect on our operations. Acquired assets or businesses may not generate the expected financial results.

Acquisitions could also result in significant cash expenditures, potentially dilutive issuances of equity securities, goodwill impairment charges, amortization expenses for other intangible assets and exposure to potential unknown liabilities of acquired businesses. To date, we have no experience with material acquisitions and the integration of acquired assets, businesses and personnel. Failure to successfully identify, complete, manage and integrate acquisitions could materially and adversely affect our business, financial condition and results of operations.

***Our products are highly technical and may contain undetected software bugs or hardware errors, which could manifest in ways that could seriously harm our reputation and our business.***

Our products and services are highly technical and complex. Our platform and any products we may introduce in the future may contain undetected software bugs, hardware errors, and other vulnerabilities. These bugs and errors can manifest in any number of ways in our products and services, including through diminished performance, security vulnerabilities, malfunctions, or even permanently disabled products. We have a practice of rapidly updating our products and some errors in our products may be discovered only after a product has been shipped and used by customers. Any errors, bugs or vulnerabilities discovered in our code after release could damage our reputation, drive away customers, lower revenue, and expose us to damages claims, any of which could seriously harm our business.

We could also face claims for product liability, tort, or breach of warranty. In addition, our contracts with subscribers contain provisions relating to warranty disclaimers and liability limitations, which may not be upheld. Defending a lawsuit, regardless of its merit, is costly and may divert management's attention and seriously harm our reputation and business. In addition, if our liability insurance coverage proves inadequate or future coverage is unavailable on acceptable terms or at all, our business could be seriously harmed.

***Our platform facilitates user interactions within a virtual environment, creating opportunities for collaboration, communication, and networking. While we strive to foster a positive and inclusive community, there are inherent risks associated with user behavior, including potential harassment, abuse, or inappropriate conduct.***

As such, we acknowledge the following risks related to user interaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Harassment and Inappropriate Conduct: Users may engage in harassment, cyberbullying, or other forms of inappropriate behavior while interacting within the virtual environment. Such actions can lead to negative experiences, emotional distress, and harm to affected users. Instances of harassment could tarnish our reputation and discourage user adoption, leading to potential financial and operational consequences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Privacy Violations: Within a virtual environment, users may inadvertently or intentionally share sensitive personal information or violate others' privacy rights. Failure to address privacy concerns adequately could lead to legal and regulatory issues, impacting our business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· User Compliance: Despite implementing guidelines and community standards, some users may disregard our policies on appropriate behavior, leading to continued misconduct. This non-compliance could lead to a hostile virtual environment and potential consequences for our platform's reputation and user retention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Content Moderation Challenges: As our platform enables user-generated content, we may face difficulties in effectively moderating and reviewing all interactions for potential violations. Inadequate content moderation may expose users to harmful behavior, negatively impacting our platform's user experience and brand perception.

***We have identified a significant deficiency in our design and implementation of internal controls to formalize roles and review responsibilities. If unable to remediate this significant deficiency or if management identifies additional deficiencies in the future or otherwise fail to maintain effective internal controls, we may not be able to accurately or timely report its financial position or results of operations, which may adversely affect our business and stock price or cause our access to the capital markets to be impaired.***

In connection with the preparation of our financial statements as of and for the years ended December 31, 2024 and 2023, we identified the below significant deficiency. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Company's financial statements will not be prevented, or detected and corrected, on a timely basis. We did not identify any deficiencies in internal control that we consider to be material weaknesses. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the following deficiency in internal control to be a significant deficiency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· We did not design and implement controls to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations.

Additionally, this significant deficiency could result in a misstatement of one or more account balances or disclosures that would result in a material misstatement to our annual or interim financial statements that would not be prevented or detected. Ineffective design and implementation controls to formalize roles and review responsibilities could expose us to an increased risk of financial reporting fraud and the misappropriation of assets.

Our failure to implement and maintain effective internal controls to formalize roles and review responsibilities could result in errors in our financial statements that could result in a restatement of our financial statements, and could cause us to fail to meet our reporting obligations, any of which could diminish investor confidence in us and cause a decline in the price of our Series B Common Stock. Failure could also subject us to potential regulatory investigations and civil or criminal sanctions.

We intend to implement measures to remediate this significant deficiency, including designing and implementing controls to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties. The primary costs associated with such measures are corresponding recruiting and additional salary and consulting costs, which are difficult to estimate at this time but which may be significant. These additional resources and procedures are intended to enable us to formalize our internal control procedures and documentation and to establish more robust processes to support our internal control over financial reporting, including clearly defined roles and responsibilities and appropriate segregation of duties.

The significant deficiency will not be considered remediated until our remediation plan has been fully implemented, the applicable controls operate for a sufficient period of time, and we have concluded, through testing, that the newly implemented and enhanced controls are operating effectively. We currently expect that our remediation plan will be implemented upon the closing of this Offering, following which we will continue to test such controls over time. We cannot predict the success of such efforts or the outcome of our assessment of the remediation efforts. Our efforts may not remediate this significant deficiency in our design and implementation of internal controls to formalize roles and review responsibilities, or additional deficiencies may be identified in the future.

***We will incur additional expenses and administrative costs upon the consummation of this Offering, which could have an adverse effect on our business, financial condition and results of operations.***

Upon the consummation of this Offering, we will be required to publicly report on an ongoing basis under the reporting rules set forth in Regulation A+ for Tier 2 issuers. The ongoing reporting requirements under Regulation A+ are more relaxed than for public companies reporting under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The differences include, but are not limited to, being required to file only annual and semi-annual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semi-annual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year. The additional reporting and other obligations imposed by these rules and regulations will increase legal and financial compliance costs and the costs of related legal, accounting and administrative activities.

***Operating system platform providers or application stores may change terms of service, policies or technical requirements to require us or our customers to change data collection and privacy practices, business models, operations, practices, advertising activities or application content, which could adversely impact our business.***

We and our customers are subject to the standard policies and terms of service of the operating system platforms on which we create, run and monetize applications and content, as well as policies and terms of service of the various application stores that make applications and content available to end users. These policies and terms of service govern the promotion, distribution, content, technical requirements, and operation generally of applications and content on such platforms and stores. Each of these platforms and stores has broad discretion to change and interpret its terms of service and policies with respect to us, our customers and other creators, and those changes may be unfavorable to us or our customers' use of our platform. An operating system platform or application store may also change its fee structure, add fees associated with access to and use of its platform, alter how customers are able to advertise on their platform, change how the personal or other information of its users is made available to application developers on their platform, limit the use of personal information for advertising purposes or restrict how end users can share information on their platform or across other platforms.

In particular, operating system platform providers or application stores such as Apple or Google may change their technical requirements or policies in a manner that adversely impacts the way in which we or our customers offer solutions or collect, use, and share data from end-user devices. Restrictions on our ability to collect and use data as desired could negatively impact our resource planning and feature development planning for our software. Actions by operating system platform providers or application stores such as Apple or Google may affect the manner in which we or our customers offer solutions or collect, use, and share data from end-user devices. For example, Apple has recently implemented a requirement for applications using its mobile operating system, iOS, to affirmatively (on an opt-in basis) obtain an end user's permission to "track them across apps or websites owned by other companies" or access their device's advertising identifier for advertising and advertising measurement purposes, as well as other restrictions. The long-term impact of these and other privacy and regulatory changes remains uncertain. In addition, if customers have applications removed from these third-party platforms because of a change in platform guidelines that impact our code or practices, we could be exposed to legal risk and lose customers. In addition, these platforms could change their business models and could, for example, increase application store fees to our customers, which could have an adverse impact on our business.

If we or our customers were to violate, or an operating system platform provider or application store believes that we or our customers have violated, its terms of service or policies, that operating system platform provider or application store could limit or discontinue our or our customers' access to its platform or store. In some cases, these requirements may not be clear, and our interpretation of the requirements may not align with the interpretation of the operating system platform provider or application store, which could lead to inconsistent enforcement of these terms of service or policies against us or our customers and could also result in the operating system platform provider or application store limiting or discontinuing access to its platform or store. An operating system platform provider or application store could also limit or discontinue our access to its platform or store if it establishes more favorable relationships with one or more of our competitors or it determines that it is in their business interests to do so. Any limitation on or discontinuation of our or our customers' access to any third-party platform or application store could adversely affect our business, financial condition, or results of operations.

***We may not be able to successfully manage our growth, and if we are not able to grow efficiently, our business, financial condition, and results of operations could be harmed.***

The growth and expansion of our business places a continuous significant strain on our management, operational and financial resources. As usage of our platform grows, we will need to devote additional resources to improving its capabilities, features and functionality. In addition, we will need to appropriately scale our internal business, IT, and financial, operating and administrative systems to serve our growing customer base, and continue to manage headcount, capital and operating and reporting processes in an efficient manner. Any failure of or delay in these efforts could result in impaired performance and reduced customer satisfaction, resulting in decreased sales to new customers or lower dollar-based net expansion rates, which would hurt our revenue growth and our reputation. Further, any failure in optimizing the costs associated with our third-party cloud services as we scale could negatively impact our gross margins. Even if we are successful in our expansion efforts, they will be expensive and complex, and require the dedication of significant management time and attention. We may also suffer inefficiencies or service disruptions as a result of our efforts to scale our internal infrastructure. We cannot be sure that the expansion of and improvements to our internal infrastructure will be effectively implemented on a timely basis, if at all, and such failures could harm our business, financial condition and results of operations.

***We are dependent on the success of our customers in the enterprise market. Adverse events relating to our customers could have a negative impact on our business.***

Our enterprise customers use our software platform to enable their staff to work and collaborate in virtual offices. As a result, our success depends in part on the ability of our customers to integrate their business with our solutions. If our customers' marketing efforts are unsuccessful or if our customers experience a decrease in demand for their business, sales of our platform could be reduced. The enterprise market is characterized by intense competition, rapid technological change, increased focus by regulators, and economic uncertainty and, as such, there is no guarantee that any of our customers' AR/VR experiences will gain any meaningful traction with end users which is ultimately required. If our customers fail to use our platform in their business, and we are not able to maintain a diversified portfolio of customers, our results of operations may be adversely affected.

***Third parties with whom we do business may be unable to honor their obligations to us or their actions may put us at risk.***

We rely on third parties, including our strategic partners, for various aspects of our business, including deep technology collaborations, development and manufacturing outsourcing, co-marketing, advertising partners, development services agreements and revenue share arrangements. Their actions may put our business, reputation and brand at risk. In many cases, third parties may be given access to sensitive and proprietary information or personal information in order to provide services and support to our teams or customers, and they may misappropriate and engage in unauthorized use of our information, technology or customers' data.

In addition, the failure of these third parties to provide adequate services and technologies, or the failure of the third parties to adequately maintain or update their services and technologies, could result in a disruption to our business operations. Further, disruptions in the mobile application industry, financial markets, economic downturns, poor business decisions, or reputational harm may adversely affect our partners and may increase their propensity to engage in fraud or otherwise illegal activity which could harm our business reputation, and they may not be able to continue honoring their obligations to us, or we may cease our arrangements with them. Alternative arrangements and services may not be available to us on commercially reasonable terms or at all and we may experience business interruptions upon a transition to an alternative partner or vendor. If we lose one or more business relationships, or experience a degradation of services, our business could be harmed and our financial results could be adversely affected.

***We plan to use third party partners to sell, market, and deploy our solutions to a variety of customers, and our failure to effectively develop, manage, and maintain our indirect sales channels would harm our business.***

We plan to use third party partners to sell, market, and deploy our platform to a variety of customers. Loss of or reduction in sales through these third parties could reduce our revenue. Identifying and retaining strategic partners, training them in our technology and solution offerings, and negotiating and documenting relationships with them, requires significant time and resources. We cannot assure you that we will be able to maintain our relationships with our strategic partners on favorable terms or at all.

Third party partners may cease marketing our software platform and the Immersed Visor with limited or no notice and without penalty. Further, a substantial number of our agreements with third parties are non-exclusive such that they may offer customers the products of several different companies, including products that compete with ours. Third party partners may favor our competitors' products or services over ours, including due to incentives that our competitors provide to them. If our third party partners do not effectively sell, market or deploy our platform and Immersed Visor, choose to promote our competitors' products, or otherwise fail to meet the needs of our customers, our ability to sell our platform and Immersed Visor could be adversely affected.

***Our direct sales force will be targeting larger customers, and sales to these customers involve risks that may not be present or that are present to a lesser extent with respect to sales to smaller customers or to individual consumers.***

One of the factors affecting our growth and financial performance is the adoption of our platform and solutions by enterprise customers over legacy and proprietary technologies. To increase adoption within larger enterprise customers and to expand into new industries, where potential customers are typically larger organizations, we will utilize a direct sales organization. We have relatively limited experience selling our platform and solutions in industries outside of enterprise. To increase sales of our platform and solutions to other industries, we are expanding our sales organization with personnel who have experience in enterprise software sales in the specific industries on which we are focusing. If we do not effectively expand our direct sales capabilities to address these industries effectively and develop effective sales and marketing strategies for those industries, or if we focus our efforts on non-higher education industries that end up being slow adopters of our platform and solutions, our ability to increase sales of our platform and solutions to industries and for use cases outside of higher education will be adversely affected.

Sales to larger customers involve risks that may not be present or that are present to a lesser extent than with sales to smaller customers, such as longer sales cycles, more complex customer requirements, substantial upfront sales costs, and less predictability in completing some of our sales. For example, larger customers may require considerable time to evaluate and test our platform and those of our competitors prior to making a purchase decision, or may have specific compliance and product requirements we may not meet. A number of factors influence the length and variability of our sales cycle, including the need to educate potential customers about the uses and benefits of our platform, the discretionary nature of purchasing and budget cycles, and the competitive nature of evaluation and purchasing approval processes. As a result, the length of our sales cycle, from identification of the opportunity to deal closure, may vary significantly from customer to customer, with sales to larger customers typically taking longer to complete. Moreover, larger customers are likely to begin to deploy our platform on a limited basis, but nevertheless demand configuration, integration services and pricing negotiations, which increase our upfront investment in the sales effort with no guarantee that these customers will deploy our platform widely enough across their organization to justify our substantial upfront investment. If we fail to increase adoption of our platform and solutions by larger enterprise customers, our growth could be impaired.

***We intend to provide service-level agreement commitments related to our platform. If we fail to meet these contractual commitments, we could be obligated to provide refunds of prepaid amounts or other credits, which would lower our revenue and harm our business, financial condition and results of operations.***

Our software platform will include service-level agreement commitments. If we are unable to meet the stated service-level commitments, including failure to meet the uptime and response time requirements under our customer agreements, we could face terminations with refunds of prepaid amounts or other credits, which could significantly affect both our current and future revenue. Any service-level failures could also damage our reputation, which could also adversely affect our business, financial condition and results of operations.

***Indemnity provisions in various agreements to which we are a party potentially expose us to substantial liability for infringement, misappropriation or other violation of intellectual property rights, data protection and other losses.***

Our agreements with our customers and other third parties may include indemnification provisions under which we agree to indemnify or otherwise be liable to them for losses suffered or incurred as a result of claims of infringement, misappropriation or other violation of intellectual property rights, data protection or other data rights, damages caused by us to property or persons, or other liabilities relating to or arising from our software, services, platform, our acts or omissions under such agreements or other contractual obligations. Some of our historical indemnity agreements, and renewals of such agreements, provide for uncapped liability and some indemnity provisions survive termination or expiration of the applicable agreement. Large indemnity payments would harm our business, financial condition and results of operations. Although we attempt to contractually limit our liability with respect to such indemnity obligations in our more recent customer agreements, in some cases, the liability is not limited given other strategic facets of the relationship and we may still incur substantial liability related to such agreements, and we may be required to cease providing certain functions or features on our platform as a result of any such claims. Even if we succeed in contractually limiting our liability, such limitations may not always be enforceable. Any dispute with a customer or other third party with respect to such obligations could have adverse effects on our relationship with such customer or other third party and other existing or prospective customers, reduce demand for our platform and adversely affect our business, financial conditions and results of operations.

In addition, although we carry general liability insurance, our insurance may not be adequate to indemnify us for all liability that may be imposed on us or otherwise protect us from liabilities or damages with respect to claims, including clams on such matters as alleged compromises of customer data, which may be substantial. Any such coverage may not continue to be available to us on acceptable terms or at all.

***If we fail to offer high-quality support, our ability to retain and attract customers could suffer.***

Our customers rely on our sales, customer success and customer support personnel and tools to resolve issues and realize the full benefits that our platform provides. High-quality support is important for the retention of our existing customers and expanding their use of our platform. The importance of these functions will increase as we expand our business, pursue new customers and seek to expand the use of our platform and solutions by enterprise customers in new industries outside of higher education. If we do not help our customers quickly resolve issues and provide effective ongoing support, our ability to maintain and expand our solution to existing and new customers could suffer, and our reputation with existing or potential customers could suffer.

***Acquisitions, strategic investments, partnerships, and alliances could be difficult to identify, pose integration challenges, divert the attention of management, disrupt our business, dilute stockholder value, and adversely affect our business, financial condition and results of operations.***

We may in the future seek to acquire or invest in businesses, joint ventures, platform or technologies that we believe could complement or expand our platform, enhance our technical capabilities, or otherwise offer growth opportunities. Although our revenue growth to-date has all been organic, we may enter into acquisitions in the future. Any such acquisition or investment may divert the attention of management and cause us to incur various expenses in identifying, investigating and pursuing suitable opportunities, whether or not the transactions are completed, and may result in unforeseen operating difficulties and expenditures. In particular, we may encounter difficulties assimilating or integrating the businesses, technologies, data, platform, personnel or operations of any acquired companies, particularly if the key personnel of an acquired company choose not to work for us or face cultural challenges integrating with our company, or if their software or technology is not easily adapted to work with our platform, or we have difficulty retaining the customers of any acquired business due to changes in ownership, management, or otherwise.

We could also face risks related to liability for activities of the acquired company before the acquisition, including intellectual property infringement claims, violations of laws, commercial disputes, tax liabilities and other known and unknown liabilities, and litigation or other claims in connection with the acquired company, including claims from terminated employees, users, former stockholders or other third parties, and our efforts to limit such liabilities could be unsuccessful. These transactions may also disrupt our business, divert our resources, and require significant management attention that would otherwise be available for the development of our existing business. Any such transactions that we are able to complete may not result in any synergies or other benefits we had expected to achieve, which could result in impairment charges that could be substantial. In addition, we may not be able to find and identify desirable acquisition targets or business opportunities or be successful in entering into an agreement with any particular strategic partner. These transactions could also result in dilutive issuances of equity securities or the incurrence of debt, contingent liabilities, amortization expenses, incremental operating expenses, or the impairment of goodwill, any of which could adversely affect our results of operations. In addition, if the resulting business from such a transaction fails to meet our expectations, our business, financial condition and results of operations may be adversely affected or we may be exposed to unknown risks or liabilities.

***We are exposed to collection and credit risks, which could impact our operating results.***

Immersed is currently updating its subscription models and planning the best approach to monetize future enterprise customers. However, our accounts receivable will likely become subject to collection and credit risks, which could impact our operating results. We may face timing issues with our accounts payable on shorter cycles than our accounts receivable, requiring us to remit payments from our own funds, and accept the risk of bad debt. Businesses that are good credit risks at the time of sale may become bad credit risks over time. In times of economic recession, the number of our customers who default on payments owed to us will increase. Our operating results may be impacted by significant bankruptcies among customers, which could negatively impact our revenue and cash flows. We cannot assure you that our processes to monitor and mitigate these risks will be effective. If we fail to adequately assess and monitor our credit risks, we could experience longer payment cycles, increased collection costs and higher bad debt expense, and our business, operating results and financial condition could be harmed.

***If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected.***

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and accompanying notes appearing elsewhere in this offering statement on Form 1-A. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates." The results of these estimates form the basis for making judgments about the carrying values of assets, liabilities and equity, and the amount of revenue and expenses that are not readily apparent from other sources. Significant estimates and judgments involve revenue recognition, the valuation of our stock-based compensation awards, including the determination of fair value of our common stock, accounting for business combinations and income taxes, among others.

Actual results may differ from these estimates under different assumptions or conditions and any such differences may be material. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the market price of our common stock.

***Our current research and development efforts may not produce successful products or features that result in significant revenue, cost savings or other benefits in the near future. If we do not realize significant revenue from our research and development efforts, our business and operating results could be adversely affected.***

Our future growth depends on penetrating new markets, adapting existing products to new applications and customer requirements, and introducing new projects that achieve market acceptance. We plan to incur significant research and development costs in the future as part of our efforts to design, develop, manufacture and introduce new products and enhance existing products. Our research and development ("R&D") expense was approximately $534,760 and $4.2 million for the six months ended June 30, 2025 and for the year ended December 31, 2024, respectively, and is expected to grow substantially in the future.

Developing products and related enhancements in our field is expensive. Investments in R&D may not result in significant design improvements, marketable products or features or may result in products that are more expensive than anticipated. We may not achieve the cost savings or the anticipated performance improvements expected, and we may take longer to generate revenue from products in development, or generate less revenue than expected.

Our management believes that we must continue to dedicate a significant amount of resources to research and development efforts to maintain a competitive position. However, we may not receive significant revenue from these investments in the near future, or longer-term these investments may not achieve market acceptance, create additional revenue or become profitable, either of which could adversely affect our business and operating results.

**Risks Related to our Intellectual Property**

***Our business may be adversely affected if we are unable to protect our spatial computing technology and intellectual property from unauthorized use by third parties.***

We currently do not own any patents or registered trademarks. An inherent risk for companies that develop rapidly evolving technology is that the technology quickly becomes outdated and stale, meaning that it is often not worth the time and effort to apply for a patent for it. However, despite this challenge, our future success will depend, at least in part, on our ability to protect our core spatial computing technology and intellectual property. To accomplish this, when possible, we plan to rely on a combination of patents, trade secrets, employee and third-party nondisclosure agreements, copyright, trademarks, intellectual property licenses and other contractual rights to retain ownership of, and protect, our technology. Such agreements may not effectively prevent unauthorized use or disclosure of our confidential information, intellectual property or technology and may not provide an adequate remedy in the event of unauthorized use or disclosure of our confidential information, intellectual property or technology, and we may fail to consistently obtain, police and enforce such agreements. Failure to adequately protect our technology and intellectual property could result in competitors offering similar products, potentially resulting in the loss of some of our competitive advantage and a decrease in revenue, which would adversely affect our business prospects, financial condition and operating results.

***Any failure to obtain, maintain, protect or enforce our intellectual property and proprietary rights could impair our ability to protect our proprietary technology and our brand.***

Our success depends to a significant degree on our ability to obtain, maintain, protect and enforce our intellectual property rights, including our proprietary technology, know-how and our brand. We rely on a combination of trademarks, trade secret laws, patents, copyrights, service marks, contractual restrictions and other intellectual property laws and confidentiality procedures to establish and protect our proprietary rights. However, the steps we take to obtain, maintain, protect and enforce our intellectual property rights may be inadequate. We will not be able to protect our intellectual property rights if we are unable to enforce our rights or if we do not detect unauthorized use of our intellectual property rights.

If we fail to protect our intellectual property rights adequately, or fail to continuously innovate and advance our technology, our competitors could gain access to our proprietary technology and develop and commercialize substantially identical products, services or technologies. In addition, defending our intellectual property rights might entail significant expense. Any patents, trademarks or other intellectual property rights that we have or may obtain may be challenged or circumvented by others or invalidated or held unenforceable through administrative processes, including re-examination, inter partes review, interference and derivation proceedings and equivalent proceedings in foreign jurisdictions, such as opposition proceedings, or litigation.

In addition, despite our pending patent applications, we cannot assure you that our patent applications will result in issued patents. Even if we continue to seek patent protection in the future, we may be unable to obtain or maintain patent protection for our technology. In addition, any patents issued from pending or future patent applications or licensed to us in the future may not provide us with competitive advantages, or may be successfully challenged by third parties.

Furthermore, legal standards relating to the validity, enforceability and scope of protection of intellectual property rights are uncertain. Despite our precautions, it may be possible for unauthorized third parties to copy our solutions and use information that we regard as proprietary to create products that compete with ours. Patent, trademark, copyright and trade secret protection may not be available to us in every country in which our platform and solutions are available. The value of our intellectual property could diminish if others assert rights in or ownership of our trademarks and other intellectual property rights, or trademarks that are similar to our trademarks. We may be unable to successfully resolve these types of conflicts to our satisfaction. In some cases, litigation or other actions may be necessary to protect or enforce our trademarks and other intellectual property rights.

Furthermore, third parties may assert intellectual property claims against us, and we may be subject to liability, required to enter into costly license agreements, required to rebrand our platform or prevented from selling our platform and solutions if third parties successfully oppose or challenge our trademarks or successfully claim that we or our infringe, misappropriate or otherwise violate their trademarks or other intellectual property rights. We may be subject to claims that we and our employees may have inadvertently or otherwise used or disclosed trade secrets or other proprietary information of former employers or competitors. Litigation may be necessary to defend against these claims. We may be subject to unexpected claims of infringement of third party intellectual property rights, either for intellectual property rights of which we are not aware, or for which we believe are invalid or narrower in scope than the accusing party. Even if we are successful in defending against these claims, litigation could result in substantial costs and be a distraction to management. If we fail in defending such claims, in addition to paying money claims, we may lose valuable intellectual property rights or personnel or be enjoined from selling certain products or providing certain services. A loss of key research personnel or their work product could hamper or prevent our ability to commercialize certain products, which could severely harm our business.

In addition, the laws of some foreign countries may not be as protective of intellectual property rights as those in the United States, and mechanisms for enforcement of intellectual property rights may be inadequate. As we expand our global activities, our exposure to unauthorized copying and use of our platform and proprietary information will likely increase. Moreover, policing unauthorized use of our technologies, trade secrets and intellectual property may be difficult, expensive and time-consuming, particularly in foreign countries where the laws may not be as protective of intellectual property rights as those in the United States and where mechanisms for enforcement of intellectual property rights may be weak. Accordingly, despite our efforts, we may be unable to prevent third parties from infringing upon, misappropriating or otherwise violating our intellectual property rights.

We enter into confidentiality and invention assignment agreements with our employees and independent contractors and enter into confidentiality agreements with other third parties, including suppliers and other partners.

However, we cannot guarantee that we have entered into such agreements with each party that has or may have had access to our proprietary information, know-how and trade secrets or that has or may have developed intellectual property in connection with their engagement with us. Moreover, we cannot assure you that these agreements will be effective in controlling access to, distribution, use, misuse, misappropriation, reverse engineering or disclosure of our proprietary information, know-how and trade secrets. Further, these agreements may not prevent our competitors from independently developing technologies that are substantially equivalent or superior to our platform. These agreements may be breached, and we may not have adequate remedies for any such breach.

In order to protect our intellectual property rights, we may be required to spend significant resources to monitor and protect our intellectual property rights. Litigation may be necessary in the future to enforce our intellectual property rights, such as rights under our software licenses, and to protect our trade secrets.

Litigation brought to protect and enforce our intellectual property rights could be costly, time-consuming and distracting to management, and could result in the impairment or loss of portions of our intellectual property.

Further, our efforts to enforce our intellectual property rights may be met with defenses, counterclaims, and countersuits attacking the validity and enforceability of our intellectual property rights, and if such defenses, counterclaims or countersuits are successful, we could lose valuable intellectual property rights. Our inability to enforce our unique licensing structure, including financial eligibility tiers, and our inability to protect our proprietary technology against unauthorized copying or use, as well as any costly litigation or diversion of our management's attention and resources, could delay further sales or the implementation of our solutions, impair the functionality of our platform, delay introductions of new solutions, result in our substituting inferior or more costly technologies into our platform, or injure our reputation.

***Our ability to acquire and maintain licenses to intellectual property may affect our revenue and profitability. These licenses may become more expensive and increase our costs.***

Proprietary licenses typically limit our use of intellectual property to specific uses and for specific time periods. If we are unable to maintain these licenses or obtain additional licenses on reasonable economic terms or with significant commercial value, our revenue and profitability may be adversely impacted. These licenses may become more expensive and increase the advances, guarantees and royalties that we may pay to the licensor, which could significantly increase our costs and adversely affect our profitability.

***We face potential risks associated with prior art. Prior art refers to existing technologies, patents, publications, or other publicly available information that may be relevant to our products or technology.***

These risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Patent Infringement: Our technology and products may unknowingly infringe upon existing patents or intellectual property rights of other companies or individuals. Identifying and addressing potential patent infringement risks is crucial to avoid costly legal disputes and potential damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Intellectual Property Challenges: We must be vigilant in conducting thorough searches for prior art to ensure that our products and technology are unique and do not infringe on existing intellectual property rights. Failure to identify prior art could lead to challenges from competitors or other stakeholders, negatively impacting our ability to protect our own intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Product Development Delays: Discovery of prior art that conflicts with our technology may require us to modify our product design or technology, leading to delays in product development and launch.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Legal Liability: If our products or technology are found to infringe on existing patents or intellectual property rights, we may face legal liabilities, including injunctions, licensing fees, or damage claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Loss of Market Advantage: Our competitors may hold patents or intellectual property rights that could give them a competitive advantage. Failure to identify and address potential infringement risks could limit our ability to compete effectively in the market.

***We are and may in the future become subject to intellectual property disputes, which are costly and may subject us to significant liability and increased costs of doing business.***

Technology companies are frequently subject to litigation based on allegations of infringement or other violations of intellectual property rights. From time to time, the holders of intellectual property rights may assert their rights and urge us to take licenses, and/or bring suits alleging infringement or misappropriation of such rights.

There can be no assurance that we will be able to mitigate the risk of potential suits or other legal demands by such third parties. Although we may have meritorious defenses, there can be no assurance that we will be successful in defending against these allegations or in reaching business resolutions that are satisfactory to us. Defending any future claims can be expensive and impose a significant burden on management and employees, and we may receive unfavorable preliminary, interim, or final rulings in the course of litigation, which could seriously harm our business.

We may in the future become subject to additional intellectual property disputes, and may become subject to liability as a result of these disputes. Our success depends, in part, on our ability to develop and commercialize our solutions without infringing, misappropriating, or otherwise violating the intellectual property rights of third parties. However, there is no assurance that our technologies, products, services, or platform will not be found to infringe, misappropriate or otherwise violate the intellectual property rights of third parties. Lawsuits are time-consuming and expensive to resolve and they divert management's time and attention. Companies in the internet, technology, and other industries own large numbers of patents, copyrights, trademarks, domain names and trade secrets and frequently enter into litigation based on allegations of infringement, misappropriation or other violations of intellectual property or other rights. As we face increasing competition and gain a higher profile, the possibility of intellectual property rights and other claims against us grows. Our technologies may not be able to withstand any third-party claims against their use.

In addition, many companies have the capability to dedicate substantially greater resources to enforce their intellectual property rights and to defend claims that may be brought against them. Any litigation may also involve patent holding companies or other adverse patent owners that have no relevant product revenue, and therefore, our patents and patent applications may provide little or no deterrence as we would not be able to assert them against such entities or individuals.

With respect to any intellectual property rights claim, we may have to seek a license to continue operations that are found or alleged to violate such rights. Such licenses may not be available, or if available, may not be available on favorable or commercially reasonable terms and may significantly increase our operating expenses. Some licenses may be non-exclusive, and therefore our competitors may have access to the same technology licensed to us. If a third party is able to obtain an injunction preventing us from accessing such third-party intellectual property rights, or if we cannot license or develop alternative technology for any infringing aspect of our business, we would be forced to limit or stop sales of our solutions or cease business activities related to such intellectual property.

To the extent that our subscribers and business partners become the subject of allegations or claims regarding the infringement or misappropriation of intellectual property rights related to our products and services, we may be required to indemnify such subscribers and business partners. Even if we are not a party to any litigation between a subscriber or business partner and a third party relating to infringement by our products, an adverse outcome in any such litigation could make it more difficult for us to defend our products against intellectual property infringement claims in subsequent litigation in which we are a named party.

In addition, we may need to settle litigation and disputes on terms that are unfavorable to us. Although we carry general liability insurance and patent infringement insurance, our insurance may not cover potential claims of this type or may not be adequate to indemnify us for all liability that may be imposed. We cannot predict the outcome of lawsuits and cannot ensure that the results of any such actions will not have an adverse effect on our business, financial condition or results of operations. Any intellectual property claim asserted against us, or for which we are required to provide indemnification, may require us to do one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· cease selling or using products that incorporate the intellectual property rights that we allegedly infringe, misappropriate or violate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· make substantial payments for legal fees, settlement payments, or other costs or damages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· obtain a license, which may not be available on reasonable terms or at all, to sell or use the relevant technology; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· redesign or rebrand the allegedly infringing products to avoid infringement, misappropriation, or violation, which could be costly, time-consuming or impossible.

Even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating results. Moreover, there could be public announcements of the results of hearings, motions or other interim proceedings or developments and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. We expect that the occurrence of infringement claims is likely to grow as the market for our solutions grow. Accordingly, our exposure to damages resulting from infringement claims could increase, and this could further exhaust our financial and management resources.

**Risks Related to Immersed's Management, Brand, and Culture**

***We rely on the performance of highly skilled personnel, including our management and other key employees, and the loss of one or more of such personnel, or of a significant number of our employees, or the inability to attract and retain executives and employees we need to support our operations and growth, could harm our business.***

Our success and future growth depend upon the continued services of our management team and other key employees. In particular, our Chief Executive Officer, is critical to our overall management, as well as the continued development of our platform, our culture and our strategic direction. From time to time, there may be changes in our management team resulting from the hiring or departure of executives and key employees, which could disrupt our business. We also are dependent on the continued service of our existing software engineers because of the complexity of our solutions. Our senior management and key employees are employed on an at-will basis. We may terminate any employee's employment at any time, with or without cause, and any employee may resign at any time, with or without cause. The loss of one or more members of our senior management, especially our VP of XR Development and our primary OS Engineer, or other key employees could harm our business, and we may not be able to find adequate replacements. We cannot ensure that we will be able to retain the services of any members of our senior management or key employees.

In addition, to execute our growth plan, we must attract and retain highly qualified personnel. We have had difficulty quickly filling certain open positions in the past, and we expect to have significant future hiring needs. Competition is intense, particularly in Austin, Texas, for engineers experienced in designing and developing cloud-based platform products, data scientists with experience in machine learning and artificial intelligence and experienced sales professionals. In order to continue to access top talent, we will likely continue to grow our footprint of office locations, which may add to the complexity and costs of our business operations. From time to time, we have experienced, and we expect to continue to experience, difficulty in hiring and retaining employees with appropriate qualifications. Many of the companies with which we compete for experienced personnel have greater resources than we have. If we hire employees from competitors or other companies, their former employers may attempt to assert that these employees or we have breached their legal obligations, resulting in a diversion of our time and resources. In addition, prospective and existing employees often consider the value of the equity awards they receive in connection with their employment. If the perceived value of our equity awards declines, experiences significant volatility or increases such that prospective employees believe there is limited upside to the value of our equity awards, it may adversely affect our ability to recruit and retain key employees. In addition, we may experience employee turnover as a result of the ongoing "great resignation" occurring throughout the U.S. economy.

New hires require training and take time before they achieve full productivity. New employees may not become as productive as we expect, and we may be unable to hire or retain sufficient numbers of qualified individuals. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects would be harmed.

***If we are unable to attract and hire qualified management, technical, engineering and sales personnel, our ability to compete and successfully grow our business would be adversely affected.***

Our success depends, in part, on our continuing ability to identify, hire, train and retain highly qualified personnel. Any inability to do so effectively would adversely affect our business. Competition for employees is intense and the ability to attract, hire, train and retain them depends on our ability to provide competitive compensation. We may not be able to attract, hire or retain qualified personnel in the future, and any failure to do so would adversely affect our business, financial condition and financial results.

***Our culture emphasizes innovation, and if we cannot maintain this culture as we grow, our business could be harmed.***

We have a culture that encourages employees to develop and launch new and innovative solutions, which we believe is essential to attracting customers and partners and serving the best, long-term interests of our company. As our business grows and becomes more complex, it may become more difficult to maintain this cultural emphasis. Any failure to preserve our culture could negatively affect our ability to retain and recruit personnel, which is critical to our growth, and to effectively focus on and pursue our strategies. If we fail to maintain our company culture, our business and competitive position may be harmed.

**Risks Related to Data Privacy**

***Because we store, process, and use data, some of which contains personal information, we are subject to complex and evolving federal, state and foreign laws and regulations regarding privacy, data protection, and other matters. Many of these laws and regulations are subject to change and uncertain interpretation, and could result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customers or retention, any of which could seriously harm our business.***

We are subject to a variety of laws and regulations in the United States and other countries relating to user privacy, rights of publicity, data protection, content, intellectual property, distribution, electronic contracts and other communications, competition, consumer protection, taxation, and online-payment services. These laws can be particularly restrictive in countries outside the United States. Both in the United States and abroad, these laws and regulations constantly evolve and remain subject to significant change.

State and local governments and agencies in the jurisdictions in which we operate, and in which our subscribers operate or reside, have adopted or may adopt laws and regulations regarding the collection, use, storage, processing, and disclosure of information regarding consumers, which could impact our ability to offer services in certain jurisdictions. Laws and regulations relating to the collection, use, disclosure, security, and other processing of individuals' information can vary significantly from jurisdiction to jurisdiction and are particularly stringent in Europe. The costs of compliance with, and other burdens imposed by, laws, regulations, standards and other obligations relating to privacy, data protection and information security are significant. In addition, some companies, particularly larger enterprises, often will not contract with vendors that do not meet these rigorous standards. Accordingly, the failure, or perceived inability, to comply with these laws, regulations, standards, and other obligations may limit the use and adoption of our products and services, reduce overall demand, lead to regulatory investigations, litigation, and significant fines, penalties, or liabilities for actual or alleged noncompliance, or slow the pace at which we close sales transactions, any of which could harm our business. Moreover, if we or any of our employees or contractors fail or are believed to fail to adhere to appropriate practices regarding customers' data, we may damage our reputation and brand.

Additionally, existing laws, regulations, standards, and other obligations may be interpreted in new and differing manners in the future, and may be inconsistent among jurisdictions. Future laws, regulations, standards, and other obligations, and changes in the interpretation of existing laws, regulations, standards, and other obligations could result in increased regulation, increased costs of compliance and penalties for non-compliance, and limitations on data collection, use, disclosure, and transfer for us and our subscribers. Further, California adopted the California Consumer Privacy Protection Act ("CCPA") and the California State Attorney General has begun enforcement actions in connection with the CCPA.

The application and interpretation of these laws and regulations are often uncertain, particularly in the new and rapidly evolving industry in which we operate. The costs of compliance with, and other burdens imposed by, laws and regulations relating to privacy, data protection and information security that are applicable to the businesses of customers may adversely affect ability and willingness to process, handle, store, use, and transmit certain types of information, such as demographic and other personal information.

In addition to government activity, privacy advocacy groups, the technology industry and other industries have established or may establish various new, additional or different self-regulatory standards that may place additional burdens on technology companies. Customers may expect that we will meet voluntary certifications or adhere to other standards established by them or third parties. If we are unable to maintain these certifications or meet these standards, we could reduce demand for our solutions and adversely affect our business. These laws and regulations may result in investigations, claims, changes to our business practices, increased cost of operations, or declines in customer retention and growth, any of which could seriously harm our business.

***If we or our third-party service providers experience a security breach or unauthorized parties otherwise obtain access to our customers' data, our data, or our platform, our platform may be perceived as not secure, our reputation may be harmed, our business operations may be disrupted, demand for our platform may be reduced, and we may incur significant liabilities.***

Operating our business and platform involves the collection, storage and transmission of sensitive, proprietary and confidential information, including personal information of our personnel, customers and their end users, our proprietary and confidential information and the confidential information we collect from our partners, customers and creators.

The security measures we take to protect this information may be breached as a result of cyber-attacks, computer malware, software bugs and vulnerabilities, malicious code, viruses, social engineering (including spear phishing and ransomware attacks), denial-of-service attacks (such as credential stuffing attacks), supply chain attacks and vulnerabilities through our third party vendors, hacking, and other efforts by individuals or groups of hackers and sophisticated organizations, including state-sponsored organizations or nation- states. Such incidents have become more prevalent in our industry in recent years. For example, attempts by malicious actors to fraudulently induce our personnel into disclosing usernames, passwords or other information that can be used to access our systems have increased and could be successful. Ransomware attacks are becoming increasingly prevalent and severe and can lead to significant interruptions, delays, or outages in our operations, loss of data, loss of income, significant extra expenses to restore data or systems, reputational harm, and the diversion of funds. Extortion payments may alleviate the negative impact of a ransomware attack, but we may be unwilling or unable to make such payments due to, for example, applicable laws or regulations prohibiting payments. Our security measures could also be compromised by personnel, theft or errors, or be insufficient to prevent harm resulting from security vulnerabilities in software or systems on which we rely. Additionally, the COVID-19 pandemic and our remote workforce pose increased risks to our information technology assets and data. Future acquisitions could also expose us to additional cybersecurity risks and vulnerabilities from any newly acquired information technology infrastructure.

Such incidents have occurred in the past, and may occur in the future, resulting in unauthorized, unlawful or inappropriate access to, inability to access, disclosure of or loss of the sensitive, proprietary and confidential information that we handle. Investigations into potential incidents occur on a regular basis as part of our security program. Security incidents could also damage our IT systems, our ability to provide our platform and solutions, and our ability to make the financial reports and other public disclosures required under the securities laws.

We rely on third parties to provide critical services that help us deliver our solutions and operate our business. In the course of providing their services, these third parties may support or operate critical business systems for us or store or process personal information and any of the same sensitive, proprietary and confidential information that we handle. These third-party providers may not have adequate security measures and have experienced and could experience in the future security incidents that compromise the confidentiality, integrity or availability of the systems they operate for us or the information they process on our behalf. Such occurrences could adversely affect our business to the same degree as if we had experienced these occurrences directly and we may not have recourse to the responsible third parties for the resulting liability we incur.

Because there are many different cybercrime and hacking techniques and such techniques continue to evolve, we may be unable to anticipate attempted security breaches, react in a timely manner or implement adequate preventative measures. While we have developed systems and processes designed to protect the integrity, confidentiality and security of our and our customers' confidential and personal information under our control, we cannot assure you that any security measures that we or our third-party service providers have implemented will be effective against current or future security threats. A security breach or other security incident, or the perception that one has occurred, could result in a loss of customer confidence in the security of our platform and damage to our reputation and brand, reduce demand for our solutions, disrupt normal business operations, require us to incur material costs to investigate and remedy the incident and prevent recurrence, expose us to litigation, regulatory enforcement action, fines, penalties and damages and adversely affect our business, financial condition and results of operations. These risks are likely to increase as we continue to grow and process, store and transmit an increasingly large volume of data.

We have contractual and legal obligations to notify relevant stakeholders of security breaches. Most jurisdictions have enacted laws requiring companies to notify individuals, regulatory authorities and others of security breaches involving certain types of data. In addition, our agreements with certain customers and partners may require us to notify them in the event of a security breach. Such mandatory disclosures are costly, could lead to negative publicity and may cause our customers to lose confidence in the effectiveness of our security measures.

A security breach could lead to claims by our customers, their end users or other relevant parties that we have failed to comply with contractual obligations to implement specified security measures. As a result, we could be subject to legal action or our customers could end their relationships with us. We cannot assure you that the limitations of liability in our contracts would be enforceable or adequate or would otherwise protect us from liabilities or damages. Security breaches could similarly result in enforcement actions by government authorities alleging that we have violated laws requiring us to maintain reasonable security measures.

Additionally, we cannot be certain that our insurance coverage will be adequate for data security liabilities actually incurred, will cover any indemnification claims against us relating to any incident, will continue to be available to us on economically reasonable terms, or at all, or that any insurer will not deny coverage as to any future claim. The successful assertion of one or more large claims against us that exceed available insurance coverage, or the occurrence of changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements, could adversely affect our reputation, business, financial condition, and results of operations.

In addition, we continue to expend significant costs to seek to protect our platform and solutions and to introduce additional security features for our customers, and we expect to continue to have to expend significant costs in the future. Any increase in these costs will adversely affect our business, financial condition, and results of operations.

***We are subject to rapidly changing and increasingly stringent laws, contractual obligations, and industry standards relating to privacy, data security, and the protection of children. The restrictions and costs imposed by these requirements, or our actual or perceived failure to comply with them, could harm our business.***

Our platform and solutions rely on our ability to process sensitive, proprietary, confidential, and regulated information, including personal information, trade secrets, intellectual property, and business information, which belongs to us or that we handle on behalf of others such as our customers. These activities are regulated by a variety of federal, state, local, and foreign privacy and data security laws and regulations, which have become increasingly stringent in recent years and continue to evolve. Any actual or perceived non-compliance could result in litigation and proceedings against us by governmental entities, customers, individuals or others; fines and civil or criminal penalties for us or company officials; obligations to cease offerings or to substantially modify our ways that make them less effective in certain jurisdictions; negative publicity and harm to our brand and reputation; and reduced overall demand for our platform or reduced returns on our Operate Solutions.

Internationally, most jurisdictions in which we or our customers operate have adopted privacy and data security laws. For example, the European Union's ("EU") General Data Protection Regulation (EU) 2016/679 ("GDPR") applies to the European Economic Area ("EEA") and, in substantially equivalent form, to UK establishments and UK-focused processing operations ("UK GDPR"). European data protection laws, including EU GDPR, UK GDPR, and others, impose significant and complex burdens on processing personal information and provide for robust regulatory enforcement and significant penalties for noncompliance. For example, companies that violate the GDPR can face private litigation, bans on data processing and fines of up to the greater of 20 million Euros or 4% of their worldwide annual revenue.

Regulators, courts, and platforms have increasingly interpreted the GDPR and other data protection laws as requiring affirmative opt-in consent to use cookies and similar technologies for personalization, advertising, or analytics. A new regulation that has been proposed in the European Union, known as the ePrivacy Regulation, may further restrict the use of cookies and other online tracking technologies on which our platform relies, as well as increase restrictions on online direct marketing. Such restrictions could increase our exposure to regulatory enforcement action, increase our compliance costs, and adversely affect our business.

Globally, certain jurisdictions have enacted data localization laws and have imposed requirements for cross-border transfers of personal information. For example, the cross-border transfer landscape in Europe is currently unstable and other countries outside of Europe have enacted or are considering enacting cross- border data transfer restrictions and laws requiring data residency. For example, the GDPR and other European data protection laws also generally prohibit the transfer of personal information to countries outside the EEA, such as the United States, which are not considered by the European Commission to provide an adequate level of data protection. In addition, Swiss and UK law contain similar data transfer restrictions as the GDPR. The European Commission recently released guidance on Standard Contractual Clauses, a mechanism to transfer data outside of the EEA, which imposes additional obligations to carry out cross- border data transfers. Although there are currently valid mechanisms available to transfer data from these jurisdictions, there remains some uncertainty regarding the future of these cross-border data transfers.

Countries outside of Europe have enacted or are considering similar cross-border data transfer restrictions and laws requiring local data residency and restricting cross-border data transfer, which could increase the cost and complexity of doing business. If we cannot implement a valid mechanism for cross-border personal information transfers, we may face increased exposure to regulatory actions, penalties, and data processing restrictions or bans, and reduce demand for our services. Loss of our ability to import personal information from Europe and elsewhere may also require us to increase our data processing capabilities outside the U.S. at significant expense.

Additionally, in August 2021, China adopted the Personal Information Protection Law ("PIPL"), which takes effect on November 1, 2021. The PIPL introduces a legal framework similar to the GDPR and is viewed as the beginning of a comprehensive system for the protection of personal information in China, although numerous aspects of the law remain uncertain and developing and the impact that PIPL will have on businesses remains uncertain.

In the United States, federal, state, and local governments have enacted numerous privacy and data security laws, including data breach notification laws, personal information privacy laws, health information privacy laws, and consumer protection laws.

States have begun to introduce more comprehensive privacy legislation. For example, California enacted the California Consumer Privacy Act ("CCPA"), which took effect on January 1, 2020 and imposes several obligations on covered businesses, including requiring specific disclosures related to a business's collection, use, and sharing of personal information, new operational practices, and requirements to respond to requests from California residents related to their personal information. The CCPA contains significant potential penalties for noncompliance (up to $7,500 per violation). Additionally, it is anticipated that the California Privacy Rights Act of 2020 ("CPRA"), which became effective January 1, 2023, will expand the CCPA. The CPRA established a new California Privacy Protection Agency to implement and enforce the CPRA, which could increase the risk of enforcement. Other states have enacted data privacy laws. For example, Virginia passed the Consumer Data Protection Act, and Colorado passed the Colorado Privacy Act, both of which became effective in 2023. In addition, data privacy and security laws have been proposed at federal, state, and local levels in recent years, which could further intensify the challenges associated with compliance efforts.

There is also increasing focus at the state and federal level on use of sensitive categories of data that we may be deemed to collect from time to time. For example, several states and localities have enacted statutes banning or restricting the collection of biometric information. Our platform and solutions employ technology to help creators build augmented and virtual reality applications, and their use to recognize and collect information about individuals could be perceived as subject to these biometric privacy laws. Although we have endeavored to comply with these laws, the collection of biometric information has increasingly been subject to litigation.

There are emerging cases applying existing privacy and data security laws in the U.S., such as the federal and state wiretapping laws in novel and potentially impactful ways, which may affect our ability to offer certain products. The outcome of these cases could cause us to make changes to our platform to avoid costly litigation, government enforcement actions, damages, and penalties under these laws, which could adversely affect our business, results of operations, and our financial condition.

Another area of increasing focus by regulators is children's privacy. Enforcement of longstanding privacy laws, such as the Children's Online Privacy Protection Act ("COPPA"), has increased and that trend is expected to continue under the new generation of privacy and data security laws, such as the GDPR, CCPA, and CPRA. For example, the U.K.'s Information Commissioner's Office recently enacted the Age- Appropriate Design Code ("Children's Code"), which imposes various obligations relating to the processing of children's data. We have previously been subject to claims related to the privacy of minors predicated on COPPA and other privacy and data security laws, and we may in the future face claims under COPPA, the GDPR, the Children's Code, the CCPA, the CPRA, or other laws relating to children's privacy.

In response to the increasing restrictions of global privacy and data security laws, our customers have sought and may continue to seek increasingly stringent contractual assurances regarding our handling of personal information and may adopt internal policies that limit their use of our Operate Solutions. In addition, privacy advocates and industry groups have regularly proposed, and may propose in the future, self- regulatory standards by which we are legally or contractually bound. If we fail to comply with these contractual obligations or standards, we may face substantial contractual liability or fines.

As also described in "Risk Factors — Operating system platform providers or application stores may change terms of service, policies or technical requirements to require us or our customers to change data collection and privacy practices, business models, operations, practices, advertising activities or application content, which could adversely impact our business," the requirements imposed by rapidly changing privacy and data security laws, platform providers, and application stores requires us to dedicate significant resources to compliance, and could also limit our ability to operate, harm our reputation, reduce demand for our platform, and subject us to regulatory enforcement action (including fines, investigations, audits, or bans on processing personal information), private litigation, and other liability. Such occurrences could adversely affect our business, financial condition, and results of operations.

**Risks Related to Laws, Regulations, and the Global Economy**

***Failure to comply with laws relating to employment could subject us to penalties and other adverse consequences.***

We are subject to various employment-related laws in the jurisdictions in which our employees are based. We face risks if we fail to comply with applicable United States federal or state employment laws, or employment laws applicable to our employees outside of the United States. Any violation of applicable wage laws or other employment-related laws could result in complaints by current or former employees, adverse media coverage, investigations, and damages or penalties which could have a materially adverse effect on our reputation, business, operating results and prospects. In addition, responding to any such proceedings may result in a significant diversion of management's attention and resources, significant defense costs, and other professional fees.

***We may be materially adversely affected by the geopolitical conditions resulting from the invasion of Ukraine by Russia, and subsequent sanctions against Russia, Belarus and related individuals and entities, and the status of debt and equity markets, as well as protectionist legislation in our target markets.***

The United States and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Ukraine by Russia in February 2022. In response to such invasion, the North Atlantic Treaty Organization ("NATO") deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine during the ongoing military conflict, increasing geopolitical tensions with Russia. The invasion of Ukraine by Russia and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing military conflict in Ukraine is highly unpredictable, the conflict could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. Additionally, Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets. In addition, the invasion of Ukraine by Russia, and the impact of sanctions against Russia and the potential for retaliatory acts from Russia, could result in increased cyber-attacks against U.S. companies.

Additionally, changes in international trade policies by governments around the world, including the imposition or continuation of tariffs, could materially and adversely affect our business. In 2018, the U.S. imposed tariffs on certain imports from China and other countries, resulting in retaliatory tariffs by China and other countries. On February 1, 2025, the United States imposed a 25% tariff on imports from Canada and Mexico, which were subsequently suspended for a period of one month, and a 10% additional tariff on imports from China. Historically, tariffs have led to increased trade and political tensions, between not only the United States and China, but also between the United States and other countries in the international community. In response to tariffs, other countries have implemented retaliatory tariffs on U.S. goods. These tariffs, any new tariffs or policies imposed by governments around the world, or any resulting retaliatory measures, to the extent implemented, could increase our costs, reduce our sales and earnings or otherwise have an adverse effect on our operations.

Any of the abovementioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions, could adversely affect our target business. The extent and duration of the Russian invasion of Ukraine, resulting sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly if current or new sanctions continue for an extended period of time or if geopolitical tensions result in expanded military operations on a global scale. If these disruptions or other matters of global concern continue for an extensive period of time, our operations may be materially adversely affected.

***Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business and operations.***

We are subject to laws and regulations enacted by national, regional, and local governments. We will be required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments, and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business and operations.

***We are subject to anti-corruption, anti-bribery, anti-money laundering, and similar laws, and non-compliance with such laws can subject us to criminal or civil liability and harm our business, financial condition and results of operations.***

We are subject to the Foreign Corrupt Practices Act of 1977, as amended ("FCPA") and U.S. domestic bribery laws. Anti-corruption and anti-bribery laws have been enforced aggressively in recent years and are interpreted broadly to generally prohibit companies, their employees and their third-party intermediaries from authorizing, offering or providing, directly or indirectly, improper payments or benefits to recipients in the public or private sector. The current U.S. President Donald Trump signed an Executive Order on February 10, 2025, pausing all future investigations and enforcement actions under the FCPA for at least 180 days, along with directing the U.S. attorney general to (1) resolve existing FCPA investigations or enforcement matters, taking into account the current administration's foreign policy objectives, and (2) issued updated FCPA guidelines or policies. As of the date of this offering statement on Form 1-A, no new guidelines have been issued. As we increase our global sales and business to the public sector and further develop our reseller channel, we may engage with business partners and third-party intermediaries to market our solutions and obtain necessary permits, licenses and other regulatory approvals. In addition, we or our third-party intermediaries may have direct or indirect interactions with officials and employees of government agencies or state-owned or affiliated entities. We can be held liable for the corrupt or other illegal activities of these third-party intermediaries, our employees, representatives, contractors, partners and agents, even if we do not authorize such activities.

While we have policies and procedures to address compliance with such laws, we cannot assure you that none of our employees and agents will take actions in violation of our policies and applicable law, for which we may be ultimately held responsible. As we increase our global sales and business, our risks under these laws may increase.

Detecting, investigating and resolving actual or alleged violations of anti-corruption laws can require a significant diversion of time, resources and attention from senior management. In addition, noncompliance with anti-corruption, anti-bribery or anti-money laundering laws could subject us to whistleblower complaints, investigations, sanctions, settlements, prosecution, enforcement actions, fines, damages, other civil or criminal penalties or injunctions, suspension or debarment from contracting with certain persons, reputational harm, adverse media coverage and other collateral consequences. If any subpoenas or investigations are launched, or governmental or other sanctions are imposed, or if we do not prevail in any possible civil or criminal proceeding, our business, financial condition and results of operations could be harmed. In addition, responding to any action will likely result in a materially significant diversion of management's attention and resources and significant defense costs and other professional fees.

***We are subject to governmental export and import controls and economic sanctions laws that could impair our ability to compete in global markets or subject us to liability if we violate the controls.***

The Immersed Visor will be subject to U.S. export controls. Our AR/VR headset and the underlying technology may be exported outside of the United States only with the required export authorizations, including by license, a license exception, or other appropriate government authorizations.

Furthermore, all our activities are subject to U.S. economic sanctions laws and regulations administered by the Office of Foreign Assets Control ("OFAC"), that prohibit the shipment of most solutions to embargoed jurisdictions or sanctioned parties without the required export authorizations. Obtaining the necessary export license or other authorization for a particular sale may be time-consuming and may result in the delay or loss of sales opportunities.

We have taken precautions to prevent our platform from being provided, deployed or used in violation of U.S. sanctions laws. We cannot assure you that our policies and procedures relating to export control and sanctions compliance will prevent violations in the future. If we are found to be in violation of U.S. sanctions or export control regulations, it can result in significant fines or penalties and possible incarceration for responsible employees and managers, as well as reputational harm and loss of business.

If we or our partners fail to obtain appropriate import, export, or re-export licenses or permits, we may also be adversely affected through reputational harm, as well as other negative consequences, including government investigations and penalties.

Also, various countries, in addition to the United States, regulate the import and export of certain encryption and other technology, including import and export licensing requirements, and have enacted laws that could limit our ability to distribute our platform or could limit our customers' ability to implement our platform in those countries. Changes in our platform or future changes in export and import regulations may create delays in the introduction of our platform in global markets, prevent our customers with global operations from deploying our platform globally or, in some cases, prevent the export or import of our platform to certain countries, governments or persons altogether. From time to time, various governmental agencies have proposed additional regulation of encryption technology.

Our customers outside of North America generated approximately 25% and 33% of our revenue for the years ended December 31, 2024, and 2023, respectively, and approximately 15% of our revenue for the six months ended June 30, 2025. Our growth strategy includes further expanding our operations and customer base across all major global markets. However, any change in export or import regulations, economic sanctions or related legislation, increased export and import controls, or change in the countries, governments, persons or technologies targeted by such regulations, could result in decreased use of our platform by, or in our decreased ability to export or sell our platform to, existing or potential customers with global operations. Any decreased use of our platform or limitation on our ability to export or sell our platform in major global markets would adversely affect our business, results of operations, and growth prospects.

***Sales to government entities and highly regulated organizations are subject to a number of challenges and risks.***

We may sell our software to U.S. federal, state, and local, as well as foreign, governmental agency customers, as well as to customers in highly regulated industries. Sales to such entities are subject to a number of challenges and risks. Selling to such entities can be highly competitive, expensive, and time-consuming, often requiring significant upfront time and expense without any assurance that these efforts will generate a sale. Government contracting requirements may change and in doing so restrict our ability to sell into the government sector until we have attained the revised certification. Government demand and payment for solutions are affected by public sector budgetary cycles and funding authorizations and funding reductions or delays may adversely affect public sector demand that could develop for our solutions.

Further, governmental, and highly regulated entities may demand or require contract terms and product and solution features or certifications that differ from our standard arrangements and are less favorable or more difficult to maintain than terms that we negotiate with private sector customers or otherwise make available. Such entities may have statutory, contractual or other legal rights to terminate contracts with us or our partners for convenience or for other reasons. Any such termination may adversely affect our ability to provide our platform to other government customers and could adversely impact our reputation, business, financial condition and results of operations.

***We are subject to laws and regulations worldwide, many of which are unsettled and still developing, and which could increase our costs or adversely affect our business.***

We are subject to a variety of laws in the United States and abroad that affect our business, including state and federal laws regarding consumer protection, advertising, electronic marketing, protection of minors, data protection and privacy, data localization requirements, online services, anti-competition, labor, real estate, taxation, intellectual property ownership and infringement, export and national security, tariffs, anti- corruption and telecommunications, all of which are continuously evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting, particularly laws outside the United States, and compliance with laws, regulations and similar requirements may be burdensome and expensive. Laws and regulations may be inconsistent from jurisdiction to jurisdiction, which may increase the cost of compliance and doing business. Any such costs, which may rise in the future as a result of changes in these laws and regulations or in their interpretation, could make our platform less attractive to our customers or cause us to change or limit our ability to sell our platform. We have policies and procedures designed to ensure compliance with applicable laws and regulations, but we cannot assure you that our employees, contractors or agents will not violate such laws and regulations or our policies and procedures. Changes in current laws or regulations or the imposition of new laws and regulations in the United States or elsewhere regarding our platform may lessen the growth of mobile academic institutions and impair our business, financial condition or results of operations.

***Any legal proceedings, claims against us, or other disputes could be costly and time-consuming to defend and could harm our reputation regardless of the outcome.***

We are and may in the future become subject to legal proceedings and claims that arise from time to time, such as claims brought by our customers in connection with commercial disputes or employment claims made by our current or former employees.

Any litigation or dispute, whether meritorious or not, could harm our reputation, will increase our costs and may divert management's attention, time and resources, which may in turn harm our business, financial condition and results of operations. Insurance might not cover such claims, might not provide sufficient payments to cover all the costs to resolve one or more such claims, and might not continue to be available on terms acceptable to us. A claim brought against us that is uninsured or underinsured could result in unanticipated costs, potentially harming our business, financial position and results of operations.

**Risks Related to Taxation**

***Changes in our effective tax rate or tax liability may have an adverse effect on our results of operations.***

Our effective tax rate could increase due to several factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in the relative
 amounts of income before taxes in the various jurisdictions in which we operate that have differing statutory tax rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes in tax laws, tax
 treaties, and regulations or the interpretation of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· changes to our assessment
 of our ability to realize our deferred tax assets that are based on estimates of our future results, the feasibility of possible
 tax planning strategies, and the economic and political environments in which we do business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the outcome of current
 and future tax audits, examinations or administrative appeals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· limitations or adverse
 findings regarding our ability to do business in some jurisdictions. Any of these developments could adversely affect our results
 of operations.

***Changes to applicable U.S. tax laws and regulations or exposure to additional income tax liabilities could affect our business and future profitability.***

We are an U.S. corporation that is subject to U.S. corporate income tax on our worldwide operations. Moreover, most of our operations and customers are located in the United States, and as a result, we are subject to various U.S. federal, state and local taxes. To the extent that we conduct activities with connections to other countries, we may be subject to taxes imposed by those countries. New U.S. federal, state and local, and, to the extent applicable, non-U.S., laws and policy relating to taxes may have an adverse effect on our business and future profitability. Further, existing U.S. and foreign tax laws, statutes, rules, regulations or ordinances could be interpreted, changed, modified or applied adversely to us.

***Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited.***

As of June 30, 2025 and December 31, 2024, we had $29,525,481 and $28,107,567, respectively, of U.S. federal net operating loss carryforwards available to reduce future taxable income. Certain of these carryforwards may be carried forward indefinitely for U.S. federal tax purposes. It is possible that we will not generate taxable income in time to use these net operating loss carryforwards before their expiration or at all. Under legislative changes made in December 2017, U.S. federal net operating losses incurred in 2018 and in future years may be carried forward indefinitely, but the deductibility of such net operating losses is limited. It is uncertain if and to what extent various states will conform to such federal tax law. In addition, the federal and state net operating loss carryforwards and certain other attributes may be subject to significant limitations under Section 382 and Section 383 of the U.S. Tax Code, respectively, and similar provisions of state law. Under those sections of the U.S. Tax Code, if a corporation undergoes an "ownership change," the corporation's ability to use its pre-change net operating loss carryforwards and other pre-change attributes, such as research tax credits, to offset its post-change income or tax may be limited. In general, an "ownership change" will occur if there is a cumulative change in our ownership by "5-percent shareholders" that exceeds 50 percentage points over a rolling three-year period. Similar rules may apply under state tax laws.

***We could be required to collect additional sales, value added or similar taxes or be subject to other tax liabilities that may increase the costs our customers would have to pay for our solutions and adversely affect our results of operations.***

We collect sales, value added or similar indirect taxes in a number of jurisdictions. An increasing number of states have considered or adopted laws that attempt to impose sales tax collection obligations on out-of-state companies. Additionally, the Supreme Court of the United States ruled in South Dakota v. Wayfair, Inc. et al ("Wayfair") that online sellers can be required to collect sales and use tax despite not having a physical presence in the buyer's state. In response to Wayfair, or otherwise, states or local governments may adopt, or begin to enforce, laws requiring us to calculate, collect, and remit taxes on sales in their jurisdictions. Similarly, many foreign jurisdictions have considered or adopted laws that impose value added, digital service, or similar taxes, on companies despite not having a physical presence in the foreign jurisdiction. A successful assertion by one or more states, or foreign jurisdictions, requiring us to collect taxes where we presently do not do so, or to collect more taxes in a jurisdiction in which we currently do collect some taxes, could result in substantial tax liabilities, including taxes on past sales, as well as penalties and interest. The requirement to collect sales, value added or similar indirect taxes by foreign, state or local governments for sellers that do not have a physical presence in the jurisdiction could also create additional administrative burdens for us, put us at a competitive disadvantage if they do not impose similar obligations on our competitors, and decrease our future sales, which could have a material adverse effect on our business and results of operations. We continually monitor the evolving tax requirements in the jurisdictions in which we operate and those jurisdictions where our customers reside.

***Tax Consequences***

IN VIEW OF THE COMPLEXITY OF THE TAX ASPECTS OF THE OFFERING, PARTICULARLY IN LIGHT OF CHANGES IN THE LAW AND POSSIBLE FUTURE CHANGES IN THE LAW AND THE FACT THAT CERTAIN OF THE TAX ASPECTS OF THE OFFERING WILL NOT BE THE SAME FOR ALL INVESTORS, PROSPECTIVE INVESTORS ARE STRONGLY ADVISED TO CONSULT THEIR TAX ADVISORS WITH SPECIFIC REFERENCE TO THEIR OWN TAX SITUATION PRIOR TO INVESTMENT IN THE COMPANY.

THE FOREGOING RISK FACTORS REFLECT MANY, BUT PERHAPS NOT ALL OF THE RISKS INCIDENT TO AN INVESTMENT IN THE COMPANY'S SHARES. EACH INVESTOR MUST MAKE HIS OWN INDEPENDENT EVALUATION OF THE RISKS OF THIS INVESTMENT.

**Risks Related to this Offering and our** **Shares**

***Our Stockholders are subject to dilution.***

If we are successful in raising the Maximum Offering, we believe with the net proceeds from this Offering that we are adequately financed to carry out our technology and development plans in the near term and to reach a commercial construction decision. However, financing the development of processing operations through to commercial production will be expensive and we may require additional capital to fund large commercial construction and development, technology programs, and potential acquisitions. We cannot predict the size of future issuances of Company shares, the issuance of debt instruments, or other securities convertible into Company shares in connection with any such financing, or the issuance of options to Company employees to add key members to the team. Likewise, we cannot predict the effect, if any, that future issuances and sales of our securities will have on the market price of such shares. If we raise additional funds by issuing additional equity securities, such financing may substantially dilute the interests of existing stockholders. Sales of substantial numbers of our shares, or the availability of such shares for sale, could adversely affect prevailing market prices for our securities and a securityholder's interest in us.

***Investors in this Offering will incur immediate dilution from the offering price.***

Because our price per share being offered is higher than our book value per share, investors will suffer immediate dilution in our net tangible book value purchased in this Offering. After giving effect to (i) the sale by us in the Primary Offering of Shares at an assumed public offering price of $0.66 per share, and the deduction of approximately $2.370 million in offering expenses and commissions payable by us, and (ii) issuance of all Bonus Shares, and assuming that (a) all Shares subject to the Secondary Offering are sold by the Selling Stockholders (which sales will not result in proceeds to us) and (b) no other shares of the Company are sold, and after giving effect to the conversion of certain convertible notes into an aggregate of 16,433,924 shares of Series B Common Stock pursuant to the note conversion and cancellation agreements entered into on December 24, 2025 and the exercise of 400,000 stock options for shares of Series B Common Stock, our post-Offering pro forma net tangible book value as of June 30, 2025 would be approximately $3.594 million, or $0.02 per share. This amount represents an immediate increase in pro forma net tangible book value of $0.16 per share to our existing stockholders as of June 30, 2025, and an immediate dilution in pro forma net tangible book value of approximately $0.64 per share to investors purchasing Shares in this Offering. See "Dilution" on page 33 for a more detailed description of the dilution to new investors in the Offering.

 ***The price per share has been determined by our management and our Board and such determination of price per share may be arbitrary.***

The price per share of our Shares has been determined by the Company's management as recommended and approved by our Board in its sole discretion projecting the value of the Company based on (i) the addition of new commercial agreements, (ii) valuations of peer companies in our industry, (iii) projections of our future cash flows (because the present value of a future cash flow increases as the future cash flow gets closer). The price per share of our Shares has not been determined by an independent valuation specialist and may be arbitrary. Additionally, our management may in its discretion offer securities of the Company in "down rounds" at lower pricing than the share price in this Offering. There are no guarantees investors will realize any appreciation on the Shares sold in this Offering.

***This Offering does not require a minimum funding to close.***

We do not have a minimum capitalization and we may use the proceeds from this Offering immediately following our acceptance of the corresponding subscription agreements and funding. We do not have any track record for self-underwritten Regulation A+ offerings and there can be no assurance we will sell the Maximum Offering or any other amount. It is possible we may only raise a minimum amount of capital, which could leave us with insufficient capital to implement our business plan, potentially resulting in greater operating losses unless we are able to raise the required capital from alternative sources. There is no assurance that alternative capital, if needed, would be available on terms acceptable to us, or at all.

***Our*** ***multi-class common stock structure and the concentration of ownership and voting power in our Founder and CEO will continue to limit your ability to influence corporate matters after the Offering and could delay or prevent a change in corporate control.***

Our capital structure includes multiple series of common stock, including Series A Common Stock, Series B Common Stock and Series C Common Stock, each with the same economic rights, but with different voting rights and conversion features. In particular, the terms of our Series C Common Stock provide for automatic conversion into Series B Common Stock upon certain events, including after the seventh anniversary of an initial public offering, direct listing or SPAC transaction, certain written elections of the holders and, subject to limited permitted transfers, upon transfer of such shares. These features are intended to mitigate, over time, the effects of our multi-class structure, but they will not eliminate them and may have the effect of further concentrating voting power in those stockholders who retain their higher-voting shares for longer periods.

Immediately following the completion of this Offering, including any Shares that are purchased in this Offering (including the Primary Offering and the Secondary Offering), if any, and assuming no other shares are sold, the existing holdings of our Founder and CEO will represent a voting power, in the aggregate, of approximately 73.4% on a fully diluted basis (without giving effect to the exercise of outstanding stock options held by the Founder), assuming the Company issues the Primary Offering Maximum Amount of Shares and the Selling Stockholders sell the Secondary Offering Maximum Amount of Shares as set forth on the cover page of this Offering Circular. Please see "Security Ownership of Management and Certain Security Holders" on page 72 for more information.

As a result, our Founder and CEO will be able to substantially influence our management and affairs and the outcome of matters submitted to our stockholders for approval for the foreseeable future, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets. Our Founder and CEO acquired his shares of Common Stock for substantially less than the price of the Shares being offered in this Offering.

This multi-structure and concentration of voting power may:

· delay,
 defer or prevent a change of control of the Company;

· impede a
 merger, consolidation, takeover or other business combination involving the Company; or

· discourage
 a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company, even if such an offer or
 attempt is favored by stockholders holding a majority of the economic value of our outstanding capital stock.

As a result, the market price of our Shares could be adversely affected, and you may be deprived of an opportunity to receive a control premium for your Shares that you might otherwise receive in a sale of the Company. For more information, see "Description of Capital Stock."

***We have broad discretion in how we use the proceeds of this Offering and may not use these proceeds effectively, which could affect our results of operations and cause our*** ***Shares price to decline.***

 ****

We will have considerable discretion in the application of the net proceeds of this Offering. We intend to use the net proceeds from this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, and offering expenses, which may include funding for the hiring of additional personnel. As a result, investors will be relying upon management's judgment with only limited information about our specific intentions for the use of the balance of the net proceeds of this Offering. We may use the net proceeds for purposes that do not yield a significant return or any return at all for our stockholders. In addition, pending their use, we may invest the net proceeds from this Offering in a manner that does not produce income or that loses value.

***There is no existing market for our*** ***Shares, and investors cannot be certain that an active trading market will ever exist or a specific share price will be established.***

Prior to this Offering, there has been no public market for our Shares. We cannot predict the extent to which investor interest in our Company will lead to the development of a trading market or how liquid that market might become. Our Shares may be traded on the over-the-counter market to the extent any demand exists. 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. The Company currently has no plans to list any of its shares on any OTC or similar exchange.

The Offering price for the Shares has been arbitrarily determined by the Company and may not be indicative of the price that will prevail in any trading market following this Offering, if any. The market price for our Shares may decline below the Offering price, and our stock price is likely to be volatile.

***We will use our best efforts to list our*** ***Shares for trading on a securities exchange however it is uncertain when our Shares will be listed on an exchange for trading, if ever.***

There is currently no public market for our Shares and there can be no assurance that one will ever develop. Our Board may take actions necessary to list our Shares over-the-counter (OTC) or on a national securities exchange, such as the NYSE American, the Nasdaq Stock Exchange, the Toronto Stock Exchange or the London Stock Exchange among others, however such a listing is not guaranteed. As a result, our Shares sold in this Offering may not be listed on a securities exchange for an extended period of time, if at all. If our Shares is not listed on an exchange it may be difficult to sell or trade our Shares.

***If our stock becomes publicly traded and the price fluctuates after the Offering, you could lose a significant part of your investment.***

The market price of our Shares, if it were traded, could be subject to wide fluctuations in response to, among other things, the risk factors described in this section of this Offering Circular, and other factors beyond our control, such as fluctuations in the valuation of companies perceived by investors to be comparable to us. Furthermore, the stock markets typically experience price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political, and market conditions, such as recessions, interest rate changes or international currency fluctuations, may negatively affect the market price of our Shares. In the past, many companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. If this type of securities litigation occurred against us in the future, it could result in substantial costs and divert management's attention from other business concerns, which could seriously harm our business.

***Different classes*** ***or series of our Shares may have different rights than our Shares.***

Different classes or series of our Shares may exist in the Company such as Series A Common Stock, Series C Common Stock, and Preferred Shares. These shares may have different rights and preferences, such as voting rights, liquidation rights, participation rights, rights of first refusal, co-sale rights, and various other rights that do not exist for the Shares being sold in this Offering. As a result, holders of Series C Common Stock or Preferred Shares will be able to influence certain decisions in management and affairs, and control the outcome of matters submitted to our stockholders for approval, including the election of directors and any sale, merger, consolidation, or sale of all or substantially all of our assets. See "Description of Capital Stock."

***After the completion of this Offering, we may be at an increased risk of securities class action litigation.***

Historically, securities class action litigation has often been brought against a company following a decline in the market price of its securities. This risk is especially relevant for us because extractive mineral processing and battery material related companies have experienced significant stock price volatility in recent years. If we were to be sued, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business.

***We do not intend to pay dividends on***  ***any series or classes of our Common Stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price and eventual liquidity of our Shares.***

We have never declared or paid any cash dividend on any series or classes of our Common Stock and do not currently intend to do so in the foreseeable future. We currently anticipate that we will retain future earnings for the development, operation, and expansion of our business, and do not anticipate declaring or paying any cash dividends in the foreseeable future. Therefore, the success of an investment in our Shares will depend upon any future appreciation in their value. There is no guarantee that the Shares will appreciate in value or even maintain the price at which they are purchased.

***We may terminate this Offering at any time during the Offering Period.***

We reserve the right to terminate this Offering at any time regardless of the number of Shares sold. In the event that we terminate this Offering at any time prior to the sale of all of the Shares offered hereby, whatever amount of capital that we have raised at that time will have already been utilized by the Company and no funds will be returned to subscribers.

 ***We are offering Bonus Shares to certain investors, which will result in increased dilution to investors who do not receive Bonus Shares or receive a lower percentage of Bonus Shares.***

In connection with this Offering, we have allocated up to 6,363,636 additional Shares to be issued as Bonus Shares to eligible investors for no additional consideration, and no Transaction Fee will be applied to any Bonus Shares. The Bonus Shares represent 20% of the total number of Shares offered by the Company in connection with the Primary Offering. Under our Bonus Share program described under "Plan of Distribution," investors who meet specified investment thresholds, and existing investors who make a new cash investment in this Offering, may receive Bonus Shares in an amount of up to 20% of the number of Shares purchased with their total cash investment in this Offering (and, in the case of existing investors, additional Bonus Shares equal to 20% of such purchased Shares), in each case without regard to the allocation of the offering proceeds between the Primary Offering and the Secondary Offering.

As a result, investors who qualify for higher Bonus Share percentages (including existing investors who receive additional Bonus Shares) will effectively pay a lower average price per Share than investors who do not qualify for Bonus Shares or qualify for a lower percentage of Bonus Shares. The issuance of Bonus Shares for no additional consideration will increase the total number of Shares outstanding and dilute the economic and voting interests of investors who do not receive Bonus Shares, or who receive fewer Bonus Shares than other investors, compared to those investors who receive a higher percentage of Bonus Shares.

***Our valuation and our offering price have been established internally and are difficult to assess.***

The Company has set the price of its Shares at $0.66 per share. The valuation for this offering was established by the company. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially early-stage companies, is difficult to assess and you may risk overpaying for your investment.

***We have conducted multiple offerings of securities, and the integration of these offerings could materially harm our business and financial condition.***

We are currently and will in the future be involved in one or more unrelated offerings of our securities. Any two or more of our securities offerings could be found by the SEC or a state securities agency to be "integrated" and therefore constitute a single offering of securities. The integration of our offerings could lead to a disallowance of certain exemptions from registration for the sale of our securities in such other securities offerings. Such a finding could give rise to various legal actions on behalf of a federal or state regulatory agency against the Company.

 ***We will not receive any proceeds from Shares sold by Selling Stockholders, which may limit our ability to use offering proceeds for corporate purposes.***

A portion of the Shares offered in this Offering are being sold by existing Selling Stockholders rather than by us. We will not receive any proceeds from the sale of Shares by Selling Stockholders. Selling Stockholders are offering up to 6,060,606 Shares, representing approximately 13.7% of the total Shares offered (including the Bonus Shares), or approximately 16.0% of the total Shares being sold for cash consideration. Investors will not be able to choose whether they are purchasing Shares from the Company or from Selling Stockholders. Further, the proceeds from Shares sold by Selling Stockholders will go directly to those Selling Stockholders. As a result, we will receive less capital from this Offering than if we were selling all of the offered Shares ourselves. This reduction in proceeds may limit our ability to fund operations, pursue growth opportunities, or achieve other corporate objectives that we might otherwise accomplish with the full proceeds of the Offering.

**DILUTION**

As of December 29, 2025, an aggregate of 133,268,164 shares of Common Stock is outstanding. In addition, 243,189,700 options to purchase shares of Series B Common Stock have been issued pursuant to stock option award agreements under the 2017 Plan, with exercise prices ranging from $0.02 to $3.70 per share. In November 2025, the Board and the Company's stockholders approved the termination of the 2017 Stock Option Plan and the adoption of the 2025 Plan, which replaces the 2017 Stock Option Plan for all new equity compensation awards. As of December 29, 2025, 42,186,380 shares of Series A Common Stock remain available for future grants under the 2025 Plan. As of the date hereof, no options to purchase shares of Series A Common Stock have been issued.

Additionally, 52,320,960 options to purchase shares of Series B Common Stock have been issued to our founder pursuant to stock option award agreements, with exercise prices ranging from $0.03 to $0.82 per share. Future awards could be issued at per share prices above or below the Offering Price. The following dilution discussion does not include any conversion of our outstanding convertible notes into shares of Series B Common Stock, or any awards under our 2017 Stock Option Plan and 2025 Plan, or awards granted to our executive officers outside of the 2017 Stock Option Plan and 2025 Plan.

If you purchase Shares in this Offering, your ownership interest in our Common Stock will be diluted immediately, to the extent of the difference between the price to the public charged for each share in this Offering and the net tangible book value per share of our Common Stock after this Offering.

Our net tangible book value as of June 30, 2025, was approximately $(15.787) million or $(0.14) per share based on 116,434,240 outstanding shares of Common Stock. Net tangible book value per share equals the amount of our total tangible assets less total liabilities, divided by the total number of shares of Common Stock outstanding, all as of the date specified.

After giving effect to (i) the sale by us in the Primary Offering of Shares at an assumed public offering price of $0.66 per share, and the deduction of approximately $2.370 million in offering expenses and commissions payable by us, and (ii) issuance of all Bonus Shares, and assuming that (a) all Shares subject to the Secondary Offering are sold by the Selling Stockholders (which sales will not result in proceeds to us) and (b) no other shares of the Company are sold, and after giving effect to the conversion of certain convertible notes into an aggregate of 16,433,924 shares of Series B Common Stock pursuant to the note conversion and cancellation agreements entered into on December 24, 2025 and the exercise of 400,000 stock options for shares of Series B Common Stock, our post-Offering pro forma net tangible book value as of June 30, 2025, would be approximately $3.594 million, or $0.02 per share. This amount represents an immediate increase in pro forma net tangible book value of $0.16 per share to our existing stockholders as of June 30, 2025, and an immediate dilution in pro forma net tangible book value of approximately $0.64 per share to investors purchasing Shares in this Offering.

Because all series of shares of our Common Stock have the same economic rights (and differ only with respect to voting rights), we have counted the outstanding Series A Common Stock, Series B Common Stock and Series C Common Stock equally for purposes of the dilution calculations below. The following table illustrates the per share dilution to investors discussed above, assuming the sale of, respectively, 100%, 75%, 50% and 25% of the Shares offered for sale in this Offering (after deducting our estimated offering expenses and Broker commission of approximately $2.370 million, $1.951 million, $1.533 million, and $1.114 million), respectively, as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Funding Level | $19380370 | $13361307 | $7342245 | $1323182 |
| Offering Price | $0.66 | $0.66 | $0.66 | $0.66 |
| Net tangible book value per Share at June 30, 2025 | $(0.14) | $(0.14) | $(0.14) | $(0.14) |
| Increase per Share attributable to existing investors in this Offering | $0.16 | $0.12 | $(0.31) | $(1.38) |
| Pro forma net tangible book value per Share after Offering at June 30, 2025 | $0.02 | $(0.02) | $(0.06) | $(0.11) |
| Dilution to investors purchasing Share in the Offering | $0.64 | $0.68 | $0.72 | $0.77 |

---

**PLAN OF** **DISTRIBUTION**

The Shares are being offered by us on a "best-efforts" basis. There is no aggregate minimum to be raised in order for the Offering to become effective, and therefore the Offering will be conducted on a "rolling basis." This means we are entitled to begin applying "dollar one" of the proceeds from the Offering towards our business strategy, including, without limitation, research and development expenses, offering expenses, working capital, general corporate purposes, repayment of debt (if any) and, prior to our use of the proceeds, other uses, including short-term, interest-bearing investments, as more specifically set forth in the "Use of Proceeds" starting on page 40.

**Agreement with DealMaker Securities, LLC**

DealMaker Securities, LLC, a broker-dealer registered with the Commission and a member of FINRA (the "Broker"), has been engaged to provide the administrative and compliance related functions in connection with this Offering, and as broker-dealer of record. Although this role differs from that of a traditional underwriter in that the Broker does not purchase any securities from the Company with a view to sell such for the Company as part of the distribution of the security, the Broker is a statutory underwriter under Section 2(a)(11) of the Securities Act of 1933. Affiliates of Broker have also been engaged to provide technology services and marketing advisory services, specifically Novation Solutions Inc. O/A DealMaker ("DealMaker") and DealMaker Reach, LLC ("Reach").

Neither the Broker nor its affiliates will receive compensation for the sale or issuance of bonus securities. The aggregate fees payable to the Broker and its affiliates are described below.

***Administrative and Compliance Related Functions***

The Broker will provide administrative and compliance related functions in connection with this Offering, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing and performing
 due diligence on the Company and the Company's management and principals and consulting with the Company regarding same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing with the Company
 on best business practices regarding this raise in light of current market conditions and prior self-directed capital raises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing with the Company
 on question customization for investor questionnaire, selection of webhosting services, and template for the Offering campaign page;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Advising us on compliance
 of marketing material and other communications with the public with applicable legal standards and requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Providing advice to the
 Company on preparation and completion of this Offering Circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Providing extensive review,
 training and advice to the Company and Company personnel on how to configure and use the electronic platform for the Offering powered
 by Novation Solutions Inc. O/A DealMaker ("DealMaker"), an affiliate of the Broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Assisting the Company in
 the preparation of state, Commission and FINRA filings related to the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Working with Company personnel
 and counsel in providing information to the extent necessary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing investor information,
 including identity verification, performing Anti-Money Laundering ("AML") and other compliance background checks, and
 providing the Company with information on an investor in order for the Company to determine whether to accept such investor into
 the offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· If necessary, discussions
 with us regarding additional information or clarification on a Company-invited investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Coordinating with third
 party agents and vendors in connection with performance of services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing each investor's
 subscription agreement to confirm such investor's participation in the Offering and provide a recommendation to us whether
 or not to accept the subscription agreement for the investor's participation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Contacting and/or notifying
 us, if needed, to gather additional information or clarification on an investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Providing ongoing advice
 to us on compliance of marketing material and other communications with the public, including with respect to applicable legal standards
 and requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing with the Company
 regarding any material changes to the Form 1-A which may require an amended filing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reviewing third party provider
 work-product with respect to compliance with applicable rules and regulations.

Such services shall not include providing any investment advice or any investment recommendations to any investor. For these services, we have agreed to pay Broker:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $27,500 payment
 for accountable expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A cash commission equal
 to four and one-half percent (4.5%) of each investor's total amount invested in the Offering (including the 3.0% Transaction
 Fee), not to exceed a maximum of $1,158,749.54, if fully subscribed.

***Technology Services***

The Company has also engaged DealMaker, an affiliate of Broker, to create and maintain the online subscription processing platform for the Offering.

After the qualification by the Commission of the Offering Statement of which this Offering Circular is a part, this Offering will be conducted using the online subscription processing platform of DealMaker through our website at https://invest.immersed.com, whereby investors will receive, review, execute and deliver subscription agreements electronically as well as make payment of the purchase price through a third party processor by ACH debit transfer, wire transfer or credit card to an account we designate. There is no escrow established for this Offering. We will hold closings upon the receipt of investors' subscriptions and our acceptance of such subscriptions.

For these services, we have agreed to pay DealMaker:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $10,000 payment
 and monthly payments of $2,000 for three months (up to $6,000) for accountable expenses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· After the Offering commences,
 $2,000 monthly marketing advisory fee, to a maximum of $18,000.

***Marketing and Advisory Services***

The Company has also engaged Reach, an affiliate of Broker, for certain marketing advisory and consulting services. Reach will consult and advise on the design and messaging on creative assets, website design and implementation, paid media and email campaigns, advise on optimizing the Company's campaign page to track investor progress, and advise on strategic planning, implementation, and execution of Company's capital raise marketing budget.

For these services, we have agreed to pay Reach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A one-time $30,000 payment
 and monthly payments of $11,000 for three months (up to $33,000) for accountable expenses for the provision of marketing consulting
 services and developing materials with respect to the self-directed electronic roadshow; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· After the Offering commences,
 $11,000 monthly marketing advisory fee, to a maximum of $99,000.

For supplemental marketing services, Reach will receive as compensation a maximum of $250,000, which will be requested on a case-by-case basis as the Company requests for the placement of marketing advertisements.

The Administrative and Compliance fees, the Technology Services Fees, and the Marketing and Advisory Services Fees described above will, in aggregate, not exceed $1,632,249.54.

**Transaction Fee**

In connection with this Offering, Investors will be required to pay a Transaction Fee to the Company at the time of the subscription to help offset transaction costs equal to 3.0% of the subscription price per Share (the "Transaction Fee"). The Transaction Fee will apply in connection with the issuance and sale of new Shares by the Company in the Primary Offering and in connection with the sale of Shares by the Selling Stockholders in the Secondary Offering. The aggregate amount paid by the investors related to the Transaction Fee will be allocated to the Company to offset the Offering costs. The Transaction Fee is subject to the 4.5% commission calculation charged by DealMaker Securities. These expenses are included in the maximum compensation set forth in the table above.

**Offering Period and Expiration Date**

This Offering will start on or after the date on which the Offering Statement is qualified by the SEC, and will terminate at our discretion or, on the Termination Date.

**Procedures for Subscribing**

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, and checks will not be accepted. Investors will subscribe via the Company's website and investor funds will be processed via DealMaker's integrated payment solutions. Funds will be held in the Company's payment processor account until the Broker has reviewed the proposed subscription, and the Company has accepted the subscription. Funds released to the Company's bank account will be net funds (investment less payment for processing fees and a holdback equivalent to 5.0% for 90 days).

The Company will be responsible for payment processing fees in relation to this Offering, estimated to be approximately 2.0% of the total proceeds. Upon each 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 Company's website integrating DealMaker's technology and agree to the terms of the offering, Subscription Agreement, and any other relevant exhibits 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 that does not exceed the greater of 10% of his or her annual income or 10% of their net worth (excluding the investor's principal residence).

Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. Broker will review all subscription agreements completed by the investors. After Broker has completed its review of a subscription agreement for an investment in the Company, and the Company has elected to accept the investor into the offering, the funds may be released to the Company.

The Company maintains the right to accept or reject subscriptions in whole or in part, for any reason or for no reason, including, but not limited to, in the event that an investor fails to provide all necessary information, even after further requests from the Company, in the event an investor fails to provide requested follow up information to complete background checks or fails background checks, and in the event the Company receives oversubscriptions in excess of the Primary Offering Maximum Amount.

The Subscription Agreement is to be construed in accordance with and governed by the laws of the State of Texas. The Subscription Agreement provides further that the parties to the Subscription Agreement will submit to the jurisdiction of the state courts of Texas and to the jurisdiction of the United States District Court in the City and County of Austin, Travis County for the purpose of any suit, action or other proceeding arising out of or based upon the Subscription Agreement.

In the interest of allowing interested investors as much time as possible to complete the paperwork associated with a subscription, the Company has not set a maximum period of time to decide whether to accept or reject a subscription. If a subscription is rejected, funds will not be accepted by wire transfer or ACH, and payments made by debit card or credit card will be returned to subscribers within 30 days of such rejection without deduction or interest.

The Broker has not investigated the desirability or advisability of investment in the Shares, nor approved, endorsed or passed upon the merits of purchasing the Shares. Broker is not purchasing the Company's securities for its own account with the intent to resell those, and under no circumstance will it recommend the Company's securities or provide investment advice to any prospective investor or make any securities recommendations to investors. Broker is not distributing any offering circulars or making any oral representations concerning this Offering Circular or this Offering. Based upon Broker's anticipated limited role in this Offering, it has not and will not conduct extensive due diligence of this Offering and no investor should rely on the involvement of Broker in this offering as any basis for a belief that it has done extensive due diligence. Broker does not expressly or impliedly affirm the completeness or accuracy of the Offering Statement and/or Offering Circular presented to investors by the Company. All inquiries regarding this Offering should be made directly to the Company.

**Commissions and Discounts**

The following table sets forth the total discounts and compensation payable to the Broker in connection with this Offering:

---

| | | |
|:---|:---|:---|
|  | **Per Share** | **Maximum** |
| Public Offering Price | $0.66 | $24999990<sup>(1)</sup> |
| Transaction Fee | $0.02 | $750000<sup>(2)</sup> |
| Broker and Affiliate Compensation | $0.04 | $1632250 |
| Proceeds, before expenses, to us | $0.53 | $20117750<sup>(3)</sup> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This
 includes the total amount of 31,818,181 Shares subject to the Primary Offering and the total amount of 6,060,606 Shares subject to
 the Secondary Offering.

(2) The
 Transaction Fee does not apply to the Bonus Shares.

(3) Represents
 the proceeds, before expenses, to the Company, after deducting $4,000,000, which will be received by the Selling Stockholders, on
 a pro rata basis, assuming all of their Shares offered in the Secondary Offering are sold.

**Selling Stockholders**

The Selling Stockholders set forth below will sell up to a maximum of 6,060,606 Shares for up to $4,000,000.

The table below sets forth the names of the Selling Stockholders, the number of shares of capital stock (on an as-converted basis to Series B Common Stock basis) beneficially owned prior to this Offering, the number of Shares being offered in connection with the Secondary Offering and the number of shares of capital stock to be beneficially owned after this Offering, on a fully diluted basis, assuming that all of Selling Stockholders' Shares are sold in connection with the Secondary Offering.

Subscriptions for the Shares will be allocated between the Company and the Selling Stockholders, with 84% of the gross proceeds in each closing (until the maximum primary amount is reached) payable to the Company in respect of newly issued Shares in the Primary Offering and 16% of the gross proceeds (until the maximum secondary amount is reached) payable to the Selling Stockholders in respect of Shares sold in the Secondary Offering. The portion of the gross proceeds allocated to the Selling Stockholders in any closing will then be apportioned among the Selling Stockholders on a pro rata basis. In each closing in which Selling Stockholders participate, each Selling Stockholder will be entitled to sell its "Pro Rata Portion" of the secondary Shares, which is determined by multiplying (i) the total number of Shares being sold by all Selling Stockholders in that closing by (ii) a fraction, the numerator of which is the number of Shares such Selling Stockholder is offering in this Offering and the denominator of which is the aggregate number of Shares being offered by all Selling Stockholders, as set forth in the table below.

For example, if the Company holds a closing for $1,000,000 in gross proceeds, the Company will issue Shares and receive $840,000 in gross proceeds in the Primary Offering, and the Selling Stockholders, in the aggregate, will receive $160,000 in gross proceeds in the Secondary Offering and will transfer to investors the number of Shares corresponding to that $160,000, apportioned among them based on their respective Pro Rata Portions. Selling Stockholders will not offer fractional Shares, and the number of Shares represented by a Selling Stockholder's Pro Rata Portion in any closing will be determined by rounding down to the nearest whole Share.

The Broker will receive a 4.5% commission on sales of Shares by the Selling Stockholders through Dealmaker's platform prior to disbursement to the Selling Stockholder. The Company will not receive any of the proceeds from the sale of Shares by the Selling Stockholders in connection with the Secondary Offering, except for the Transaction Fee applied on the Shares sold by the Selling Stockholders which will be allocated to the Company to offset the costs of the Offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Selling Stockholder** | **Amount of Shares<br> Owned Prior to the<br> Offering (on a Fully <br> Diluted Basis)** | **Amount Offered** | **Amount Owned After <br> the Offering <br> (Assuming Sale of All<br> Amount Offered)** | **Selling Stockholders<br> Pro Rata Portion <sup>(1)</sup>** |
| Renji Bijoy | 331893100 | 4166667 | 327726433 | 6875% |
| Joseph Bernardi | 21248420 | 1136364 | 20112056 | 18.75% |
| Tatsuya Yamashita | 5674520 | 757576 | 4916944 | 12.50% |
| &nbsp;&nbsp;&nbsp; **Total** | **358816040** | **6060606** | **352755433** | **100.00%** |

---

(1) "Pro
 Rata Portion" represents that portion that a Selling Stockholder may sell in the Offering expressed as a percentage where the
 numerator is the amount offered by the Selling Stockholder divided by the total number of shares offered by all Selling Stockholders.

All of the aforementioned Selling Stockholders will be entering into an irrevocable power of attorney ("POA") with an individual, as attorney-in-fact, in which they will be directing the Company and the attorney-in-fact to take the actions necessary in connection with the Offering and the sale of shares. This includes the signature of any required subscription agreements with each purchaser.

 **Bonus Shares for Certain Investors (Up to 20%)**

In connection with this Offering, we have allocated up to 6,363,636 additional Shares to be issued as "Bonus Shares" to eligible investors for no additional consideration, and no Transaction Fee will be applied to any Bonus Shares. This maximum allocation of 6,363,636 Bonus Shares represents 20% of the 31,818,181 Shares offered by the Company in connection with the Primary Offering. Investors who meet specified investment thresholds, and existing investors who make a new cash investment in this Offering, may receive Bonus Shares of up to 20% of the number of Shares purchased with their total cash investment in this Offering at the offering price of $0.66 per Share (excluding any Transaction Fees). Existing investors in the Company who make a new cash investment in this Offering may be entitled to receive additional Bonus Shares equal to 20% of the number of Shares purchased with their total cash investment, in addition to any Bonus Shares earned based on their investment amount. In all cases, eligibility for, and the calculation of, Bonus Shares is based on an investor's total cash investment in this Offering and is determined without regard to the allocation of the offering proceeds between the Primary Offering and the Secondary Offering, and the total number of Bonus Shares issued in this Offering will not exceed 6,363,636 Shares.

The Company's current noteholders, including holders of convertible promissory notes issued by the Company, will not be deemed "investors" eligible for Bonus Shares unless and solely to the extent they make a new cash investment in this Offering after qualification by the SEC. No Bonus Shares will be issued in respect of any conversion, exchanger, or cancellation of outstanding indebtedness, including the conversion of any notes issued by the Company, whether before or after qualification of this Offering by the SEC.

The amount of Bonus Shares investors in this Offering are eligible to receive and the criteria for receiving such Bonus Shares is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Investment Amount</u>. Investors will be eligible to receive Bonus Shares based on the amount of
 their investment in this Offering. The below table summarizes the available bonus by amount invested:

---

| | |
|:---|:---|
| **Amount Invested** | **Bonus Shares** |
| $5000.00 | 5% |
| $10000.00 | 10% |
| $25000.00 | 15% |
| $50000.00 | 20% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Existing Immersed Investor</u>. Existing investors in the Company will also be eligible to receive Bonus
 Shares if they invest in this Offering. Each existing investor that invests in this Offering will receive Bonus Shares equal to 20%
 of the number of shares purchased, rounded down to the nearest whole share.

The maximum amount of Bonus Shares an investor may receive with respect to any single investment in this Offering is 20% of such investor's total cash investment (i.e., the number of Shares purchased for cash at the offering price of $0.66 per Share, excluding any Transaction Fees, rounded down to the nearest whole Share).

Investors in this Offering are only eligible to receive one Bonus Share benefit, and the bonus tiers are not cumulative. Accordingly, an investor who qualifies both under the investment amount thresholds and as an existing investor will receive Bonus Shares at a rate of 20% of such investor's total cash investment, and no single investor will receive Bonus Shares in excess of 20% of such investor's total cash invesmeent in respect of any investment in this Offering. Bonus Shares will be applied to each investor following the completion of the subscription in the Offering. The Broker and the Company will verify eligibility for Bonus Shares based on records of prior investments in the Company and current investments in this Offering.

 **Transfer Agent and Registrar**

DealMaker Transfer Agent will serve as transfer agent to maintain shareholder information on a book-entry basis. We will not issue shares in physical or paper form. Instead, our shares will be recorded and maintained on our shareholder register.

**USE OF** **PROCEEDS**

If the Primary Offering Maximum Amount is sold in connection with the Primary Offering (at a public offering price per share of $0.66, plus the $0.02 of Transaction Fee per Share) pursuant to this Offering Circular, our net proceeds (after our estimated offering expenses, broker-dealer discounts and commissions of approximately $2,369,630) are expected to be approximately $19,380,370 (including the Transaction Fee applied on the Selling Stockholders' Shares, assuming the total Selling Stockholders' Shares are sold in connection with the Secondary Offering, which will be allocated to the Company to offset the Offering costs). The estimate of the budget for Offering costs is an estimate only and the actual Offering costs may differ. The following table represents management's best estimate of the uses of the net proceeds received from the sale of the Shares assuming the sale of, respectively, 100%, 75%, 50% and 25% of Shares offered for sale in this Offering.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Percentage of Offering Sold** | **Percentage of Offering Sold** | **Percentage of Offering Sold** | **Percentage of Offering Sold** |
| <br>**Use of <br> Proceeds** | **100%** | **75%** | **50%** | **25%** |
| Total amount raised | $21749999 | $15312500 | $8875000 | $2437500 |
| Product development | $11628222 | $8016784 | $4405347 | $793909 |
| Salaries and compensation | $5814111 | $4008392 | $2202673 | $396955 |
| General corporate purposes | $1938037 | $1336131 | $734224 | $132318 |
| Offering Expenses (including broker-dealer fees and commissions) | $1854630 | $1564942 | $1275255 | $985567 |
| Payment and Transaction Processing Fees | $515000 | $386250 | 257500 | $128750 |

---

We will not receive any of the proceeds from the sale of Shares being sold by the Selling Stockholders in connection with the Secondary Offering, except for up to $114,600 resulting from the Transaction Fee applied on the Selling Stockholders' Shares (assuming all Selling Stockholders' Shares offered in connection with the Secondary Offering are sold), which will be allocated to the Company to offset the Offering costs.

We are an early-stage company that began development efforts in 2017. As set forth above, we expect to utilize the majority of capital raised in connection with this Offering to fund our business strategy, including without limitation, product development, salaries and compensation, general corporate purposes, and offering expenses. Our plan of operations for the next few years includes scaling Visor through mass production, developing a newer version of Visor, the Visor 2, further developing and scaling adoption of Curator AI, as well as other AI initiatives where our hardware provides value to other AI companies.

The amounts set forth above are our current estimates for such development, and we cannot be certain that actual costs will not vary from these estimates. This expected use of the net proceeds from the Primary Offering represents our intentions based upon our current financial condition, results of operations, business plans and conditions. Our management has significant flexibility and broad discretion in applying the net proceeds received in the Primary Offering, including the repayment of any indebtedness. We cannot assure that our assumptions, expected costs and expenses, and estimates will prove to be accurate or that unforeseen events, problems or delays will not occur that would require us to seek additional debt and/or equity funding, which may not be available on favorable terms, or at all. See "Risk Factors" starting on page 5.

Although our business does not presently generate profit, we believe that if we raise the Primary Offering Maximum Amount, that we will have sufficient capital to finance our operations at least through the end of December 2027. However, if we do not sell the Maximum Amount or if our operating and development costs are higher than expected, we will need to obtain additional financing prior to that time. Further, we expect that during and/or after such period, we may be required to raise additional funds to finance our operations until such time that we can conduct profitable revenue-generating activities.

Pending our use of the net proceeds from the Primary Offering, we may choose to invest the net proceeds in a variety of capital preservation investments, including, without limitation, short-term, investment grade, interest bearing instruments and United States government securities. We may also use a portion of the net proceeds for the investment in strategic partnerships and possibly the acquisition of complementary businesses, products, and/or technologies, although we have no present commitments or agreements for any specific acquisitions or investments.

**DESCRIPTION OF THE BUSINESS**

The following business description is made as of the time of this Offering Circular and may change course as the Company evolves.

**Overview**

The incorporation of the company that is today, Immersed Inc., took place on January 4, 2017, as a Delaware Corporation under the name of "Arajoy, Inc.". The company initially focused on building computer vision-driven AI models for autonomous drones and human-pose estimation algorithms. In 2017, the company changed its focus to working on what Immersed does today. The company changed its name to "Immersed Inc." on November 29, 2017.

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed a spatial computing software optimized for enterprise that allows users to work full-time with their team in virtual AR/VR offices, which is available on several AR/VR app stores. Our Immersed application remains a cornerstone of our business. Additionally, Immersed has developed with industry partners a purpose-built spatial computing hardware called the Visor that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets. The Visor is a key differentiator in our hardware portfolio, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it apart from gaming-centric alternatives. In addition to that, Immersed is developing an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs). With Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for managing tasks and retrieving critical information.

With our innovative spatial computing software, integrated with the Visor and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce, as well as offer new solutions to enhance collaboration and individual productivity, and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

The mailing address of Immersed's principal executive office is 106 E. 6th St. STE 900-202, Austin, Texas 78701.

**Products and Technology**

We believe that Immersed's workplace productivity application, which allows users to work in a virtual office environment, is one of the most used enterprise applications within AR/VR measured by the number of hours spent in the application. Using its proprietary intellectual property that has been developed over the last seven years, Immersed is, to our knowledge, the only application that connects any AR/VR headset to any computer operating system (Mac, PC, or Linux) and provides up to five software-emulated virtual monitors.

Immersed's application is compatible with third-party hardware provided by companies like Meta, Microsoft, Apple, HTC, ByteDance, and SteamVR devices. The Immersed application allows users to optimize focus and productivity independent of the physical location where they choose to work. This can be done individually or in collaboration with a team where users can share multiple screens and whiteboard together.

As employees work within Immersed's spatial computing application, it is intended that Curator will have the unique capability to index and analyze everything that the "virtualized" workers see, say, hear, or interact with while maintaining individual privacy and security. Curator will observe the information that the user experiences during meetings or interactions with colleagues, curate that information, and summarize it for later use. We expect that Curator will provide a mechanism for the information to be recalled using natural language prompts interpreted by the LLM in order to return the best context-related answer. We believe that using this mechanism will help employees be more productive in the tasks that require repetition but low cognitive load, while freeing them up to concentrate on higher-value work that requires a higher cognitive load. We expect that the outcome for the employer will be higher productivity and cost savings.

Immersed has deployed existing class-leading, industry-proven software to deliver a seamless virtual experience. Immersed's spatial computing software is built on the ubiquitous Unity game engine and follows OpenXR standards to easily port to any future third-party AR/VR hardware. Immersed also leverages Microsoft's Mixed Reality Toolkit 3 which enables hand-tracked interactions to feel fluid when interacting with virtual user interface elements. Immersed has partnered with Qualcomm to adopt their Snapdragon Spaces SDK which accelerates performance for eye-tracking, face-tracking, hand-tracking, simultaneous localization and mapping (SLAM), visual see-through (VST), also known as "passthrough", and other computationally demanding processes, leading to an overall smoother experience.

In 2022, Immersed became hardware agnostic, being able to be run on any compatible third-party hardware, and its application can now be downloaded from all major AR/VR app stores.

In 2023, Immersed began development with industry partners on a work-focused AR/VR headset, the "Visor," which is higher resolution than Apple Vision Pro, 70% lighter weight, and 70% less expensive. Owning the entire technology stack, from the software to the hardware, Immersed is enabled to have one of the world's most valuable data engines for the imminent AI future.

In 2024 and currently, Immersed continued refining Visor based on demoing it to prospective enterprise customers, and also began development of Curator AI.

**Business Model**

Our business model is built on a three-pronged approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Software*** :
 our immersive application on the multiple AR/VR app stores delivers high-performance virtual workspaces that enhance collaboration
 and individual productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***Hardware*** :
 the Visor is purpose-designed for work, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it
 apart from gaming-centric alternatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  ***AI Integration*** :
 with our AI assistant, Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for
 managing tasks and retrieving critical information.

Immersed has evolved from its initial consumer model to also include enterprise clients business to business. We do still maintain a consumer offering.

In June 2019, Immersed released a 3-tiered SaaS model: free, $14.99 one-time payment, and $9.99/ month, with each higher tier having an increased set of features. Once Immersed was released to the Meta Oculus App Store in August 2020, that model was iterated to a 2-tiered software as a service (SaaS) model: Free and $14.99/month (called "Elite"). In July 2022, Immersed decided to discontinue this subscription model.

In September 2023, Immersed released a new subscription tier for $4.99/month.

Immersed's focus on enterprise monetization consists of three revenue streams that correspond to its three solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The first revenue stream
 is expected to be similar to the tiers that were released in the Meta Oculus App Store, but specifically tailored for enterprise
 customers. We expect that this will have additional sets of features that are relevant to teams at companies, such as User Access
 Management, administrator privileges, custom virtual office floor plans, Mobile Device Management, and increased security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The second revenue stream
 is expected to be from Immersed's sales of "Visor", which has been developed with the assistance of industry partners,
 with initial deliveries in 2025. We expect to sell at scale to enterprise customers to complement our revenue stream from our spatial
 computing software. We intend that Visor will provide a seamless and comfortable user experience, optimized specifically for enterprise
 work-related tasks. By combining hardware and software expertise, Immersed is aiming to deliver a vertically integrated solution
 that should transform the way employees work, increasing collaboration and driving productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The third revenue stream
 is expected to be from monetizing "Curator" and will be charged per user, which we believe would complement our hardware
 and software solutions both from Immersed's own vertically integrated solutions and third-party hardware.

More recently, Immersed is implementing innovative monetization strategies, including, for example, reducing the upfront cost for the hardware, Visor, to approximately $500 if the customer commits to a one-year subscription model, to drive recurring revenue and broaden market access.

**Market Size**

The demand for augmented and virtual reality (XR) is growing, not just in the entertainment landscape but in the enterprise space as well, according to Morder Intelligence. Our platform already serves over 1.4 million unique users and has generated billions of social media views organically. This is because Immersed not only serves the spatial computing market, but also serves the general computing market. As hybrid and remote work models gain tractions—and as emerging applications such as remote physical labor and humanoid robotics come to the forefront—the potential market size continues to grow dramatically. Our evolving customer base now includes not only early teach adopters but also professionals across multiple industries, confirming the expansive opportunity ahead. According to the Extended Reality Market Report issued by Mordor Intelligence in 2025, XR market will grow with a CAGR of 40.61% from 2025-2030. The study suggested that a significant portion of the XR market growth would come from the enterprise space, where businesses are now moving more rapidly into the age of digital transformation. Although there has long been potential for XR in the enterprise environment, we believe that most organizations have only begun to see the technology's true value during 2020, as a result of the COVID-19 pandemic.

COVID-19 pushed companies outside of their traditional environments, shutting down physical locations, and reducing the ways that companies could interact, both internally and externally. Although there has been a return to the office for some companies, in this new landscape that includes remote working, XR is emerging as the solution to help bridge the gap separating employees.

We believe that the growing demand for immersive and collaborative technologies is fueling the adoption of Immersed's solutions. Based on market research published by Enterprise Collaboration Market in January 2025, the global enterprise collaboration market was valued at $54.5 billion in 2023 and is expected to surpass $154.96 billion by the end of 2033, driven by the need for seamless remote collaboration, enhanced productivity, and improved communication across geographically dispersed teams. We believe Immersed is poised to capture a significant share of this market by offering cutting-edge solutions that enable organizations to unlock the full potential of their workforce.

According to Next Move Strategy Consulting's report from 2025, the market for AI is expected to show strong growth in the coming decade – its value of nearly $225 billion in 2024 is expected to grow five times by 2030, up to nearly $1.2 trillion. In addition, according to the World Economic Forum, by 2030, an estimated nine million jobs will be displaced by AI, emphasizing the urgent need for reskilling and upskilling the workforce. Furthermore, according to The Business Research Company's report from 2025, the current global corporate training market size in 2024 was approximately $398.8 billion and with a compound annual growth rate (CAGR) of 4.7%. This is a key market for Immersed solutions that fit well within the context of training new employees and retraining existing employees.

**Customers**

Immersed has had over 1.4 million unique users since inception, with users spending more than 1,600 years in our application. See "Management's Discussion and Analysis of Results of Operations" for more information.

**Product Development**

In an ever-evolving industry, the key to our long-term success and growth lies in our commitment to embracing technological advancements. As pioneers in spatial computing, we understand the critical importance of staying ahead of the curve, and our executive management diligently fosters an environment of innovation and adaptability. We remain vigilant in exploring and leveraging new technologies that can augment our product and service offerings, propelling us into new dimensions of efficiency and user experience. Our multi-year product roadmap is a testament to this dedication, encompassing a strategic vision that centers around expanding the application of our cutting-edge proprietary spatial computing hardware, while continually enhancing our flagship Immersed application and empowering our workforce with AI-driven assistance. We intend to deliver a comprehensive ecosystem that reshapes the way professionals work, ensuring they have access to the most advanced tools and capabilities in the ever-expanding landscape of remote collaboration.

***Immersed Application: Revolutionizing Remote Collaboration***

We believe our flagship product, the Immersed application, can be at the forefront of revolutionizing remote collaboration. We are dedicated to continually enhancing the application to provide users with a seamless and intuitive virtual workspace. As our product development cycles are tightly integrated and informed by user data, user feedback, and user interviews, our product roadmap for the Immersed application includes ongoing improvements to enhance user experience and productivity, in addition to incorporating user-requested integrations. We are actively developing features that enable more efficient virtual meetings, streamlined project management, and innovative ways to interact with digital content and co-workers. One of our Immersed application capabilities is to transform any compatible AR/VR headset into a multi-screen workstation by providing up to five virtual displays that are intuitively aligned and persistently available throughout the workday. This tool not only elevates individual productivity, but also fosters dynamic, real-time collaboration—whether for pair programming, creative brainstorming, or executive strategy sessions—mimicking the benefits of physical co-location in a virtual space. As we expand our application's capabilities, we are committed to ensuring that it remains a leading-edge solution for enterprises seeking to optimize their remote work capabilities. This also includes capabilities for enterprise companies to recreate their real-world offices in the Immersed application.

***Visor: Unlocking a New Dimension of Work***

Complementing our Immersed application, our work-optimized spatial computing hardware, Visor, is designed to elevate the immersive experience for professionals. We have developed and intend to continuously refine Visor's design and capabilities to offer users comfort and performance during extended wear. The Visor is developed specifically for workplace productivity, its features include: (i) ultra-lightweight and ergonomic design—weighing only six ounces and with a thickness of roughly 41 millimeters (less than half that of many competing headsets)—the Visor is engineered for all-day comfort and ease of use; (ii) high-resolution visuals—delivering 4K resolution per eye, it ensures clear, detailed images critical for productivity tasks; and (iii) enhanced user experience—its sleek, unobtrusive design makes it suitable for public use, and upcoming enhancements such as slip-in prescription lens inserts will further broaden its appeal.

The Visor product roadmap is expected to encompass advancements in display technology, enhanced tracking precision, and ergonomic design improvements. We aim to create a next-generation device that seamlessly integrates with the Immersed application, creating a cohesive and efficient workflow for remote collaboration. As we forge ahead, our goal is to continuously improve the quality of the hardware while simultaneously reducing costs for manufacturing. Development of Visor commenced in March 2023. Since that time, Immersed has co-developed initial units with a high-volume hardware manufacturer and is working with them to design manufacturing lines to produce Visor at scale. Immersed received $500,000 in pre-orders for Visor within the first week of launching pre-orders and began initial deliveries of Visor in 2025, with fulfillment through 2026. The anticipated distributions are subject to completion of the manufacturing of Visor within the anticipated schedule. There can be no assurance that the manufacturing and distribution of Visor will not experience delays or other setbacks. In January 2024, Immersed introduced Visor Plus, a membership bundle for new Visor customers that lowers the upfront hardware price and includes added benefits to enhance the user's experience. Immersed intends to honor its pre-orders from customers who purchased the Visor at a higher cost by offering 12 months of Visor Plus free in addition to the features they will already receive. A Visor Plus membership is expected to be issued with the Visor for all orders placed from February 2024. A Visor Plus membership is expected to include Immersed Pro features (and early access to beta features), standard warranty during membership, Curator professional AI assistant, customizable 3D work spaces, discounts on Visor accessories, extended 3 hour battery, VIP co-working spaces, priority support and a priority trade-in program.

***AI-Driven Assistance: Empowering the Workforce***

Immersed is also about empowering the workforce with AI-driven assistance. Curator is at the heart of our next-generation productivity offerings. Built on state-of-the-art LLMs, Curator will feature: (i) proactive task management—it intelligently reviews past interactions and meeting data to suggest actionable tasks and schedule adjustments; (ii) contextual awareness—by combining virtual data with real-world sensor inputs, Curator can help users locate misplaced items and recall important details, effectively acting as an ever-present "second brain;" and (iii) future-proof capabilities—the continuous data stream from our devices sets the stage for extending AI functions into future applications such remote-controlled humanoid robotics, further expanding the practical applications of our platform.

We expect our AI solution, "Curator," will function as a knowledgeable and proactive AI assistant for knowledge workers, but this will require secure training data at scale. We are dedicated to developing and then expanding Curator's capabilities to provide users with instant access to expert knowledge, proactive task suggestions, and personalized support. In our product roadmap for AI-driven assistance, we are focused on developing Curator's ability to comprehend and contextualize virtualized work experiences. As time progresses, Immersed intends to work to improve the cost of training while increasing the throughput of data that will greatly improve the precision and utility of our AI.

**Growth Strategy**

***Enterprise Partnerships: Goal of Uniting Hardware, Channel Sales, and Expansion***

At Immersed, one of our key growth strategies lies in fostering strategic partnerships with enterprise partners, focusing on securing long-term market leadership. Our approach goes beyond hardware development: it encompasses sales channel and a dynamic land-and-expand model. By creating alliances with major players in the enterprise sector, we aim to create a powerful ecosystem that amplifies our reach and impact. Collaborating with renowned hardware manufacturers, we aim to ensure seamless integration of Visor into existing enterprise setups, enhancing the immersive experience for professionals worldwide.

Furthermore, our channel sales strategy targets diverse markets and industries, leveraging established networks to bring Immersed's spatial computing solution to a broader audience. Through carefully orchestrated land-and-expand tactics, we expect to secure new customer relationships and fortify our presence with existing clients. We believe this multi-pronged approach empowers Immersed to establish strong and lasting connections, potentially driving widespread adoption of our revolutionary spatial computing technology across enterprises.

***Consumer Adoption: Goal of Uniting Ecosystems, Expanding Brand Awareness Globally***

As part of our growth strategy, Immersed will aim to penetrate all major headset ecosystems. As consumer adoption grows, we expect brand awareness and seamless user connectivity across devices to increase with it. Our platform has garnered significant traction with over 1.4 billion social media views in 2024 alone and a growing base of satisfied users, achieved without reliance on paid advertising. Our dedication to providing an immersive experience extends to users of various AR/VR headsets, proving essential hardware-agnostic software that connects users regardless of what ecosystem they are already part of.

Through currently growing SEO moats and strategic integration with leading headset ecosystems, we intend to create a unified platform where users can collaborate effortlessly, irrespective of their device preferences. We believe this holistic approach to consumer adoption will allow us to reach a broader audience and establish Immersed as the go-to solution for remote collaboration, virtual meetings, and enhanced individual productivity.

We plan to continue expanding our user base across both consumers and enterprise sectors. Additionally, we are actively exploring applications beyond traditional office productivity, including remote physical labor and the integration of intelligent robotics, leveraging our unparalleled data insights and hardware.

***AI Adoption: Curator's Path to Potential Viral Adoption and Growth***

By unlocking value and streamlining the workflow of knowledge workers using data that no other company has access to, Curator has the potential to drive the viral growth of AI-empowered workers. We believe that the ability that it will have to make jobs significantly easier and more efficient will inspire users to share their experiences through word-of-mouth referrals, potentially fostering organic expansion and widespread adoption. Immersed will aim to make it very easy for users to share their experiences, whether it be through easy ways to export experiences to social media or referral incentives.

As professionals discover the ease and productivity gains afforded by Curator's AI-powered assistance, our hope is that the appeal of Immersed's ecosystem will increase. If we achieve our aim of making Curator an indispensable tool in the work arsenal of countless users, we expect that it will act as an ambassador for Immersed, generating organic momentum for our entire suite of products. We are committed to developing and then continually enhancing Curator's capabilities and intelligence, solidifying its position as the ultimate AI assistant for knowledge workers and the catalyst for Immersed's exponential growth.

**Sales and Marketing**

Moving ahead, Immersed is focused on advancing its sales and marketing endeavors with a strategic approach. We aim to expand our market presence and capitalize on hardware development and channel sales opportunities. Our commitment to consumer adoption will continue, as we plan to extend our platform onto various headset ecosystems, bolstering brand awareness and fostering user connections across devices. Immersed's content team also releases viral social media content to spread awareness of its products. In parallel, we believe that our AI-driven workforce augmentation solution, Curator, will play a pivotal role in driving organic growth through word-of-mouth referrals and user-generated social media content, unlocking new market opportunities.

We continue to work with bulk orders and strategic partnerships with major corporations, reinforcing our position as the go-to solution for large-scale, remote, and hybrid work environments.

Through these cohesive efforts, Immersed believes it is positioned to strengthen its market position as a leading player in spatial computing and enterprise AI. Our sales approach is highly adaptable and responsive to both consumer and enterprise needs,

**Research and Development**

Our research and development activities have primarily been focused on enhancing our spatial computing software, developing our AI assistant "Curator," and modernizing our hardware offering "Visor," which is being developed in partnership with a major AR/VR manufacturing company. Part of our research and development consists of gathering user feedback, which then informs swift, iterative improvements.

Our management believes that we must dedicate a significant amount of resources to research and development in order to develop our offerings and then maintain a competitive position in the market. Our products intersect many emerging fields including AI, spatial computing, augmented reality, and space management, and we plan to continue to innovate and patent new methods to solve problems for our customers. Our ability to rapidly iterate and respond to customer feedback ensures that our research and development practices create fast solutions.

**Competition, Strengths, and Differentiation**

We both compete and aim to collaborate and partner with companies such as Apple, Meta, Microsoft, Google, and Samsung. While aiming to co-develop mutually beneficial projects with these companies, we may also simultaneously have competing offerings with them that appeal to similar but different audiences.

We believe that we offer a unique and differentiated approach to the market that our competition is currently not positioned or not capable of servicing, as described below.

*Our Platform.* We understand today's workplace is a collection of spaces, people, activity-based work, virtual and physical interactions, culture, experiences, and the technology that binds them. Immersed has built a solution that we believe helps enterprise companies build culture, foster innovation, empower employees, and create equitable experiences for a distributed workforce that is cross-platform.

*Connectivity and workplace experience.* The Immersed platform can connect every employee in an organization whether they are in the office or remote working. We focus on improving the workplace experience and helping companies deliver that experience direct to employees to help attract and retain top talent, keep employees engaged and invested in company culture, and support them through a hybrid workforce model that is easy to navigate and easy to use.

*Comprehensive Uses.* The Immersed technology supports a multitude of uses for enterprise organizations including but not limited to hybrid remote work experience, conference and meeting rooms, individual productivity, analytics, and security, across numerous industries.

*Visor*. Our aim is to seamlessly integrate Visor with our spatial computing platform and thereby empower professionals to work in an immersive environment with one-fifth of the weight on their heads compared to alternative solutions. Furthermore, our plan for Visor is that it should also cut costs in ways that competitive products are not incentivized to do. Unlike competitors focused on general-purpose VR, we expect Visor to be meticulously optimized for the modern workforce. We believe its scalability will accommodate client growth and diverse applications, from workplace experiences to meeting room reservations, analytics, and security. We believe Visor will reflect our commitment to leading spatial computing's future, and expect that it will establish Immersed as a driving force in the enterprise collaboration landscape.

*Scalability*. We are building to support customers' expanding needs and uses. We believe our solutions will allow for employee growth and will aid onboarding and employee orientation.

We believe our integrated strategy is a major competitive advantage in an increasingly competitive field.

**Intellectual Property**

We are highly conscious of the need to protect our core technology and intellectual property. Given the speed of current innovation and the ongoing iterations in our technology and products, we need to time any future patent applications carefully. We intend to protect our intellectual property rights, both in the United States and abroad, through a combination of patent, trademark, copyright, and trade secret laws, and will continue to employ nondisclosure and invention assignment agreements with our independent contractors employees and non-disclosure agreements with our commercial partners and vendors. Unpatented research, development, know-how, and engineering skills make an important contribution to our business, but we will pursue patent protection when we believe it is possible and consistent with our overall strategy for safeguarding intellectual property.

The table below summarizes our trademark applications to date:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Country Name** | **Trademark** | **Application No.** | **Filed Date** | **Registration No.** | **Status** |
| United States | Immersed | 98136225 | 2023.08.16 | 7690471 | Registration expire on 2030.02.11 |
| United States | Immersed | 98615375 | 2024.06.24 |  | Pending |
| United States | Curator | 98118228 | 2023.08.04 |  | Pending |
| United States | Visor | 98118204 | 2023.08.04 |  | Pending |

---

The table below summarizes our patent applications to date:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Country Name** | **Title** | **Application No.** | **Filed Date** | **Status** |
| United States | Augmented and Virtual Reality Visor | 63/747,679 | 2025.01.21 | Pending |
| United States | AR/VR headset lens configuration | 63/636,402 | 2024.04.19 | Pending |
| United States | Artificial intelligence (ai)-based virtual assistant | 63/746,565 | 2025.01.17 | Pending |

---

**Employees**

Our employees are critical to our success. As of the date of this Offering Circular, we had a total of 27 team members, 17 of which are full-time employees. Our team members include one management personnel, three marketing personnel, 21 technical and engineering personnel, one customer service personnel, and one finance, legal, human resource, and administration personnel. To date, we have not experienced any work stoppages and consider our relationship with our employees to be in good standing. None of our employees are represented by a labor union or are subject to a collective bargaining agreement.

**Government Regulation**

In general, we are subject to numerous federal, state, and foreign legal requirements on matters as diverse as data privacy and protection, employment and labor relations, immigration, taxation, anti- corruption, import/export controls, trade restrictions, internal and disclosure control obligations, securities regulation and anti-competition.

Violations of one or more of these diverse legal requirements in the conduct of our business could result in significant fines and other damages, criminal sanctions against us or our officers, prohibitions on doing business, and damage to our reputation. Violations of these regulations or contractual obligations related to regulatory compliance in connection with the performance of customer contracts could also result in liability for significant monetary damages, fines and/or criminal prosecution, unfavorable publicity and other reputational damage, restrictions on our ability to compete for certain work and allegations by our customers that we have not performed our contractual obligations. To date, compliance with these regulations has not been financially burdensome.

**Export and Trade Matters**

We are subject to various trade restrictions, including trade and economic sanctions and export controls, imposed by governments around the world with jurisdiction over our operations. For example, in accordance with trade sanctions administered by the Office of Foreign Assets Control and the U.S. Department of Commerce, we are prohibited from engaging in transactions involving certain persons and certain designated countries or territories, including Cuba, Iran, Syria, North Korea and the Crimea Region of Ukraine. In addition, our products are subject to export regulations that can involve significant compliance and administrative time to address. In recent years the United States government has a renewed focus on export matters. Our current and future products may be subject to these heightened regulations, which could increase our compliance costs. We are subject to anti-corruption laws and regulations imposed by governments around the world with jurisdiction over our operations, including the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act 2010, as well as the laws of the countries where we do business.

**Legal Proceedings**

We are not presently a party to any litigation. However, we may from time to time be subject to claims, lawsuits, and other legal and administrative proceedings arising in the ordinary course of business. Defending such proceedings is costly and can impose a significant burden on management and employees. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.

**DESCRIPTION OF PROPERTY**

Our main office is located at 106 E. 6<sup>th</sup> St. STE 900-202, Austin, Texas 78701.

We do not currently lease or own any real property.

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

You should read the following discussion and analysis of our financial condition and results of our operations, together with our financial statements and the notes thereto appearing elsewhere in this Offering Circular. This discussion contains forward-looking statements reflecting our current expectations, whose actual outcomes involve risks and uncertainties. Actual results and the timing of events may differ materially from those stated in or implied by these forward-looking statements due to a number of factors, including those discussed in the sections entitled "Risk Factors" starting on page 5, "Cautionary Statement Regarding Forward-Looking Statements" starting on page iii, and elsewhere in this Offering Circular. Please see the notes to our Financial Statements for information about our Significant Accounting Policies.

**Overview**

Our mission is to become a leading provider of AR/VR productivity solutions that is building artificial intelligence ("AI") productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Founded in 2017 and headquartered in Austin, Texas, Immersed has developed spatial computing software optimized for enterprise, that allows users to work full-time with their team in virtual AR/VR offices, which is available on several AR/VR app stores. Our Immersed application remains a cornerstone of our business. Additionally, Immersed has developed with industry partners a purpose-built spatial computing hardware called the Visor that is 70% lighter weight and 70% less expensive than other 4K-per-eye headsets. The Visor is a key differentiator in our hardware portfolio, boasting an ultra-lightweight, ergonomic design and high-resolution displays that set it apart from gaming-centric alternatives. In addition to that, Immersed is developing an AI assistant named "Curator" that is optimized for enterprise office productivity using multi-modal large language models (LLMs). With Curator, we are pioneering proactive, context-aware support that acts as a "second brain" for managing tasks and retrieving critical information. With our innovative spatial computing software, integrated with the Visor and AI-driven solutions, we believe Immersed is well positioned to help organizations adapt to the changing dynamics of the workforce, as well as offer new solutions to enhance collaboration and individual productivity, and equip employees with the skills and capabilities needed for the jobs of the future. Immersed has a limited operating history and has not generated a profit.

**Our Business Model**

Immersed provides immersive virtual reality offices where customers can spawn multiple virtual monitors and collaborate with others in the same virtual space. Immersed has evolved from its initial consumer model to also include enterprise clients business to business. We do still maintain a consumer offering.

During 2023, Immersed began development of Visor, an AR/VR headset to be used in conjunction with a laptop and designed for work. Immersed announced the headset in August 2023 and started pre-orders in September 2023. Immersed received $500,000 in pre-orders for Visor within the first week of launching pre-orders and began initial deliveries of Visor in 2025, with fulfillment through 2026. The anticipated distributions are subject to completion of the development and manufacturing of Visor within the anticipated schedule.

There can be no assurance that the development, manufacturing and distribution of Visor will not experience delays or other setbacks. In January 2024, Immersed introduced Visor Plus, a membership bundle for new Visor customers that lowers the upfront hardware price and includes added benefits to enhance the user's experience. Immersed intends to honor its pre-orders from customers who purchased the Visor at a higher cost by offering 12 months of Visor Plus free in addition to the features they will already receive. A Visor Plus membership is expected to be included with the delivery of the Visor for all orders placed from February 2024.

**Consumer Revenue**

Immersed enters into monthly and annual subscription plans with its customers. Immersed recognizes subscription revenue ratably over the term of the subscription agreement, as its performance obligation is satisfied over time. Subscription revenue accounted for approximately 41% and 71% of Immersed's total revenue for the six months ended June 30, 2025 and for the year ended December 31, 2024, respectively, and 100% of Immersed's total revenue for the year ended December 31, 2023. Immersed released a new subscription plan for consumers in September 2023 and it can be purchased or earned through app usage. Immersed plans to release a new subscription for enterprise customers in 2026 that will include additional collaboration features, user-access management dashboards for administrators, and other features that are important for remote hybrid teams.

The majority of Immersed's subscription services are billed either monthly or annually in advance and are typically non-refundable. Consequently, for month-to-month subscriptions, Immersed recognizes the revenue monthly, and for annual or longer-term subscriptions, Immersed records deferred revenue on its consolidated balance sheet and recognizes the deferred revenue ratably over the subscription term.

**Enterprise Revenue**

As Immersed shifts focus to enterprise, monetization will consist of three revenue streams that correspond to its three solutions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AR/VR Immersed Software
 Subscriptions — The first revenue stream is expected to be similar to the subscriptions that were released in other App Stores,
 but specifically tailored for enterprise customers. This is expected to have additional sets of features that are relevant to teams
 at companies, such as User Access Management, administrator privileges, custom virtual office floor plans, Mobile Device Management,
 and increased security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AR/VR Headset Sales —
 The second revenue stream is expected to be from sales of Immersed's "Visor", which began development in March 2023.
 Immersed plans to continue Visor development with industry partners and then sell at scale to enterprise customers. This is expected
 to complement Immersed's revenue stream from its spatial computing software. Visor is expected to provide a seamless and comfortable
 user experience, optimized specifically for enterprise work-related tasks. By combining the hardware and software expertise, Immersed
 expects to deliver a vertically integrated solution that should transform the way employees work, increasing collaboration and driving
 productivity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AI Services Revenue —
 The third revenue stream is expected to be from monetizing "Curator" – Immersed's AI assistant, computer-using
 agent – and will be charged per user. Curator is expected to complement the hardware and software solutions both from Immersed's
 own vertically integrated solutions and third-party hardware.

**Key Metrics**

Immersed monitors the following key metrics to help evaluate its business, identify trends affecting the business, formulate business plans, and make strategic decisions. The calculation of the key metrics discussed below may differ from other similarly titled metrics used by other companies, analysts, investors and other industry participants.

***New Unique Users ("NUUs")***

Immersed defines a NUU as an individual that has downloaded the Immersed software application and opened it for the first time during the applicable measurement period. Immersed has had over 1 million unique users since inception. We view our number of NUUs as a key indicator of our market penetration, and the strength of our brand awareness and intend to consistently track this data on a monthly basis. Management believes monitoring the growth of unique users helps it evaluate the growth of our business and future revenue trends. We believe this metric would be valuable for investors because it illustrates the growth of unique users over a specified period of time. We believe the number of free unique users on our platform is important because, not only may free users become paid users on our platform over time, but they also add presence to the Immersed community co-working spaces and share their experiences on social media which may help Immersed with its word-of-mouth advertising.

***Shipped Visors***

Immersed defines a Shipped Visor as a Visor that has been ordered, manufactured and shipped to a customer during the applicable measurement period. Immersed began development of Visor in March 2023 and began initial deliveries in 2025. We view our number of Shipped Visors as a key indicator of our company performance and intend to consistently track this data on a quarterly basis. We believe this metric would be valuable for investors because it illustrates Company performance over a specified period of time. We believe that the development of the Visor, not only will grow revenue through sales of the Visor but will increase the total number of customers since we believe the Visor will have better retention than currently available headsets due to being higher resolution and lighter-weight, enabling users to work in their headset more frequently and consistently.

**Non-GAAP Financial Measures**

In addition to our results of operations below, we report certain financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). These measures have limitations as analytical tools when assessing our operating performance and should not be considered in isolation or as a substitute for GAAP measures, including gross profit and net income. We may calculate or present our non-GAAP financial measures differently than other companies who report measures with similar titles and, as a result, the non-GAAP financial measures we report may not be comparable with those of companies in our industry or in other industries.

***Non-GAAP Loss from Operations***

We calculate non-GAAP loss from operations as GAAP loss from operations excluding stock-based compensation expense. We believe this measure provides our management and investors with consistency and comparability with our past financial performance and is an important indicator of the performance and profitability of our business. Additionally, this measure eliminates the effects of stock-based compensation, which we do not consider to be indicative of our overall operating performance.

The following table presents our non-GAAP loss from operations for each of the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** | **As of December 31,** | **As of December 31,** |
| <br>**(in thousands)** | **2025** | **2024** | **2024** | **2023** |
| GAAP loss operations | $(1876) | $(7112) | $(14269) | $(5308) |
| Add back: Stock based compensation expense, net of amounts capitalized | $34 | $144 | $220 | $216 |
| Non-GAAP loss from operations | $(1842) | $(6968) | $(14049) | $(5092) |

---

***Free Cash Flow***

We calculate free cash flow as net cash used in operating activities less purchases of property and equipment and capitalized software and development costs. We believe this metric provides our management and investors with an important indicator of the ability of our business to generate additional cash from our business operations or our need to access additional sources of cash, in order to fund our operations and investments.

The following table presents our free cash flow for each of the periods presented:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **As of June 30,** | **As of June 30,** | **As of December 31,** | **As of December 31,** |
| <br>**(in thousands)** | **2025** | **2024** | **2024** | **2023** |
| **Net cash used in operating activities** | $(1646) | $(3092) | $(5942) | $(4717) |
| Less: Purchases of property and equipment, and intangibles | $(9) | $(12) | $(17) | $(215) |
| Free (Negative) cash flow | $(1655) | $(3104) | $(5959) | $(4932) |

---

**Factors Affecting our Performance**

We believe that our growth and financial performance are dependent upon many factors, including the key factors described below, which are in turn subject to significant risks and challenges, including those discussed below and in the section of this Offering Circular entitled "Risk Factors."

***Retention and Expansion of Existing Users***

Our ability to increase revenue depends in part on retaining our existing users and expanding their use of our platform. We offer an integrated, comprehensive set of hybrid and remote work solutions including up to five virtual monitors, distraction-free environments and an assortment of remote collaboration tools. We have subscription plans to meet the needs of our users, including a free and a paid subscription plan, and we are able to provide customized subscription plans tailored to the specific needs of large enterprises. Our desire to increase our value proposition to our customers has led us to the development of the Immersed Visor, the first AR/VR headset optimized for work, to better serve the entirety of the hybrid and remote work experience. As a result, we believe we are positioned to grow our revenue with our existing users as our platform continues to help them to more effectively and efficiently work with hybrid and remote teams.

***Adoption of our Solutions by Enterprise Customers***

We are pioneering the transformation of the work world from in-office to hybrid and remote. In conjunction with our software platform, we think that mass adoption of our hybrid and remote work solutions will be dependent on the successful development and distribution of the Immersed Visor, optimized for work, to enterprise customers. Visor has been developed with industry partners and we plan to sell it at scale to enterprise customers. Visor sales are expected to complement our revenue stream from our spatial computing software. We aim to create a next-generation device that seamlessly integrates with the Immersed application, creating a cohesive and efficient workflow for remote collaboration. As we forge ahead, our goal will be to develop and then continuously improve the quality of the hardware while simultaneously reducing costs for manufacturing. By combining hardware and software expertise, Immersed expects to deliver a vertically integrated solution that can transform the way employees work, increasing collaboration and driving productivity. We expect operating margins to improve over the long term as we continue to scale and gain higher operating leverage.

***Investing in Research and Innovation for Growth***

We plan to continue to invest in research and development to improve our Immersed virtual and augmented reality application with the goal of supporting seamless use of our platform with our computer-based customers' work needs. We plan to concentrate on in-house innovation and expect to consider acquisitions on an opportunistic basis. We have a robust pipeline of new product releases. For example, in March 2024, we began development of Curator, with internal betas beginning in December 2024 and external betas beginning in March 2025. In March 2023, we began development on the Immersed Visor, the first AR/VR headset specifically designed for work. In November 2022, we started research and development to launch Immersed on the Bytedance Pico 4 headset (except for China), which launched in March 2023, making our virtual reality offices available to additional markets in Europe and Asia. We launched our application on the Apple Vision Pro in May 2024. In October 2022, we launched Immersed on the Meta Quest Pro headset, making our virtual reality offices available on the headset with the highest specs for resolution and color passthrough to date, enabling users to significantly increase time spent using the application for work. In March 2022, Immersed released a new feature to enable keyboard tracking within the Immersed application, bringing a user's keyboard inside the application, no longer requiring touch-typing.

We see significant potential for future user growth as we release more products and create additional upselling opportunities through sale of additional features — extra virtual screens, virtual environments and other features. We also continue to strengthen our AI and ML capabilities as we enlarge our user data library, enabling continuous improvement of the fidelity and accuracy of our use of multi-modal large language models and enhancing the commercial value from data-driven analytics. These investments may lower our operating profitability in the near term, but we expect our operating margins to improve over the long term as we solidify our scale and reach.

While we plan to concentrate on in-house innovation, we may also pursue acquisitions of products, teams, and technologies on an opportunistic basis to further expand the functionality of and use cases for our platform. As with organic research and development, we adopt a long-term perspective in the evaluation of acquisition opportunities in order to ensure sustainable value creation for our customers.

**COMPONENTS OF RESULTS OF OPERATIONS**

**Revenue**

Our revenue consists of subscription revenue and software contract service revenue. Immersed provides virtual reality offices for remote teams and individuals. Currently, Immersed's technology is available on the following platforms: Meta Quest, HTC, Pico, and Apple Vision Pro.

Immersed enters into monthly and annual subscription plans with our customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. We recognize revenue ratably over the term of the agreement, as our performance obligation is satisfied over time.

**Deferred Revenue**

Our deferred revenue consists of subscription revenue collected but not yet earned for the Immersed virtual reality application annual subscriptions. Additionally, we began taking pre-order deposits in September 2023 for the Visor, which will be recognized as revenue when orders are ready for fulfillment.

**Cost of Revenue**

Cost of revenue consists of direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers, storage costs, supplies, and direct cost of any merchandise sold.

**Operating Expense**

Our operating expenses consist primarily of AR/VR product expenses, marketing and advertising, and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, and stock-based compensation.

*AR/VR Product Expenses* — AR/VR product expenses are expensed as incurred and include expenses related directly to producing and maintaining the Immersed virtual reality (AR/VR) software application and products accessed within it. It also includes expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

*Digital asset impairment losses (gain on sale), net* — Immersed's digital assets are comprised solely of Ethereum and USDC, and are accounted for as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") 350, Intangibles — Goodwill and Other.

*General and administrative expenses* — General, and administrative expenses consist primarily of personnel-related expenses associated with our finance, information technology, human resources, and administrative employees, including salaries, benefits, bonuses, and stock-based compensation. General and administrative expenses also include external legal, accounting, and other professional services fees, software and subscription services, and other corporate expenses.

*Marketing and advertising expenses* — Marketing and advertising expenses consist primarily of content production, paid advertisements, sponsored videos and sponsored events.

**Other Income**

*Other Income —* Other income pertains to reversal of vProperty deposits.

*Interest Income* — Interest income consists of interest income earned on our cash and cash equivalents.

*Interest Expense* — Interest expense consists primarily of interest payments for our debt facilities. See "Liquidity and Capital Resources — Debt and Financing Arrangements."

**Provision for Income Taxes**

Provision for income taxes consists primarily of income taxes in certain foreign and state jurisdictions in which we conduct business. We record income taxes using the asset and liability method. Under this method, deferred income tax assets and liabilities are recorded based on the estimated future tax effects of differences between the financial statement and income tax basis of existing assets and liabilities. These differences are measured using the enacted statutory tax rates that are expected to apply to taxable income for the years in which differences are expected to reverse. We recognize the effect on deferred income taxes of a change in tax rates in income in the period that includes the enactment date.

We record a valuation allowance to reduce our deferred tax assets and liabilities to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and ongoing tax planning strategies in assessing the need for a valuation allowance.

**RESULTS OF OPERATIONS**

**Six Months Ended June 30, 2025 Compared to the Six Months Ended June 30, 2024**

The following table sets forth our results of operations for the six months ended June 30, 2025 and June 30, 2024 (in thousands, except percentages):

---

| | | | |
|:---|:---|:---|:---|
|  | **Six Months Ended June 30,** | **Six Months Ended June 30,** | **Change** |
|  | **2025** | **2024** | **%** |
| Revenues | 494 | 224 | 121% |
| Cost of Revenue | (57) | (81) | (30)% |
| Gross profit | 437 | 143 | 206% |
| Gross margin | 88% | 64% |  |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative and other | 493 | 1051) | (53)% |
| &nbsp;&nbsp;&nbsp;AR/VR product expenses | 1084 | 5813) | (81)% |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 277 | 32 | 766% |
| &nbsp;&nbsp;&nbsp;Digital asset impairment losses (gain on sale), net |  | (2) | (100)% |
| &nbsp;&nbsp;&nbsp;Professional Fees | 90 | 218 | (59)% |
| Total operating expenses | 1944 | 7112 | (73)% |
| Loss from operations | (1507) | (6969) | (78)% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income | 73 |  | 100% |
| &nbsp;&nbsp;&nbsp;Interest expense | (442) | (147) | 201% |
| &nbsp;&nbsp;&nbsp;Gain on disposal of digital assets, property and equipment | - | 4 | (100)% |
| Total other income (expense) | (369) | (143) | 158% |
| Net loss | $(1876) | $(7112) | (74)% |

---

***Revenues***

Total revenue increased by $270 thousand, or 121%, to $494 thousand for the six months ended June 30, 2025, from $224 thousand for the six months ended June 30, 2024. Subscription revenue decreased by $23 thousand, or 10%, to $201 thousand for the six months ended June 30, 2025, from $224 thousand for the six months ended June 30, 2024. The increase in total revenue is attributable to a new revenue stream, which is software contract revenue which amounted to $293 thousand for the six months ended June 30, 2025.

***Gross Profit and Gross Margin***

Gross profit increased by $294 thousand, or 206%, to $437 thousand for the six months ended June 30, 2025, from $143 thousand for the six months ended June 30, 2024. The increase is attributable to a new revenue stream, which is software contract revenue.

***AR/VR Product Expenses***

AR/VR product expenses decreased by $4.7 million, or 81%, to $1.1 million for the six months ended June 30, 2025, from $5.8 million for the six months ended June 30, 2024. The decrease was primarily attributable to a decrease in personnel-related costs associated with salaries and third-party design, engineering and manufacturing services which was greater in 2024 to support the initial development of Immersed's own AR/VR headset, Visor.

***General and Administrative Expenses***

General and administrative expenses decreased by $558 thousand, or 53%, to $493 thousand for the six months ended June 30, 2025 from $1.1 million for the six months ended June 30, 2024. The decrease was primarily attributable to an decrease in non-product-related facilites and personnel costs during the year.

***Digital Asset Impairment losses (gain on sale), net***

Digital asset impairment losses (gains on sale) decreased by $2 thousand, or 100%, to $0 gain on sale for the six months ended June 30, 2025 from $2 thousand gain on sale for the six months ended June 30, 2024. The decrease was primarily attributable to decreased activity with held digital assets during the six months ended June 30, 2025.

***Marketing and Advertising Expenses***

Marketing and advertising expenses increased by $245 thousand, or 766%, to $277 thousand for the six months ended June 30, 2025 from $32 thousand for the six months ended June 30, 2024. The increase was primarily attributable to increased marketing and advertising efforts for our public crowdfundraises.

***Other income***

Other income increased by $73 thousand, or 100%, to $73 for the six months ended June 30, 2025 from $0 for the year six months ended June 30, 2024. The increase was primarily attributable to recognizing income on the remaining vProperty deposits in January 2025.

***Interest Expense***

Interest expense increased by $295 thousand, or 201%, to $442 thousand for the six months ended June 30, 2025 from $147 thousand for the six months ended June 30, 2024. The increase was primarily attributable to the company recognizing accrued interest expense on convertible notes issued, merchant cash advances, loans payable and notes payable.

***Total Other Income (Expense), Net***

Total other (expense) income, net increased by $238 thousand, or 166%, to net other expense of $381 thousand for the six months ended June 30, 2025 from net other expense of $143 thousand for the six months ended June 30, 2024. The increase was primarily attributable to increase in interest expense.

***Provision for Income Taxes***

The provision for income taxes did not significantly fluctuate year over year. The U.S. federal statutory tax rate is 21%, while our effective tax rate for the six months ended June 30, 2025 and 2024 was 0% and 0%, respectively.

**Year Ended December 31, 2024 Compared to the Year Ended December 31, 2023**

The following table sets forth our results of operations for the years ended December 31, 2024 and December 31, 2023 (in thousands, except percentages):

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31,** | **Year Ended December 31,** | **Change** |
|  | **2024** | **2023** | **%** |
| Revenues | 660 | 220 | 200% |
| Cost of Revenue | (155) | (72) | 115% |
| Gross profit | 505 | 148 | 241% |
| Gross margin | 77% | 67% |  |
| Operating expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative and other | 1868 | 1652 | 13% |
| &nbsp;&nbsp;&nbsp;AR/VR product expenses | 12036 | 3826 | 215% |
| &nbsp;&nbsp;&nbsp;Marketing and advertising | 142 | 88 | 61% |
| &nbsp;&nbsp;&nbsp;Digital asset impairment gains, net | (2) | (255) | (99)% |
| &nbsp;&nbsp;&nbsp;Professional fees | 274 | 400 | (32)% |
| Total operating expenses | 14318 | 5711 | (151)% |
| Loss from operations | (13813) | (5563) | (148)% |
| Other income (expense): |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income |  | 204) | (100)% |
| &nbsp;&nbsp;&nbsp;Interest income |  | 8) | (100)% |
| &nbsp;&nbsp;&nbsp;Interest expense | (458) | (14) | 3171% |
| &nbsp;&nbsp;&nbsp;Gain on disposal of digital assets, property and equipment | 2 | 58 | (97)% |
| Total other income (expense) | (456) | 256 | (278)% |
| Net loss | $(14269) | $(5307) | (169)% |

---

***Revenues***

Total revenue increased by $440 thousand, or 200%, to $660 thousand for the year ended December 31, 2024, from $220 thousand for the year ended December 31, 2023. Subscription revenue increased by $247 thousand, or 112%, to $467 thousand for the year ended December 31, 2024, from $220 thousand for the year ended December 31, 2023. The increase in total revenue is attributable both to an increase in subscription revenue and to a new revenue stream in 2024 from software contract revenue, which amounted to $193 thousand for the year ended December 31, 2024. The increase in subscription revenue is attributable to the new consumer subscription being available for all of 2024, while it was only available from September to December in 2023. The consumer subscription features can be purchased or earned through app usage.

***Gross Profit and Gross Margin***

Gross profit increased by $357 thousand, or 241%, to $505 thousand for the year ended December 31, 2024, from $148 thousand for the year ended December 31, 2023.

***AR/VR Product Expenses***

AR/VR product expenses increased by $8.2 million, or 215%, to $12.0 million for the year ended December 31, 2024, from $3.8 million for the year ended December 31, 2023. The increase was primarily attributable to an increase in personnel-related costs associated with salaries and third-party design, engineering and manufacturing services to support the development of Immersed's own AR/VR headset, Visor.

***General and Administrative Expenses***

General and administrative expenses increased by $216 thousand, or 13%, to $1.9 million for the year ended December 31, 2024, from $1.7 million for the year ended December 31, 2024. The increase was primarily attributable to an increase in non-product-related personnel costs and salaries during the year.

***Digital Asset Impairment losses (gain on sale), net***

Digital asset impairment losses (gains on sale) decreased by $253 thousand, or 99%, to $2 thousand gains on sale for the year ended December 31, 2024, from $255 thousand gains on sale for the year ended December 31, 2023. The decrease was primarily attributable to decreased activity with held digital assets during the year ended December 31, 2023.

***Marketing and Advertising Expenses***

Marketing and advertising expenses increased by $54 thousand, or 61%, to $142 thousand for the year ended December 31, 2024, from $88 thousand for the year ended December 31, 2024. The increase was primarily attributable to hosting an in-person production launch for Visor in September 2024 - Immersed IRL.

***Other income***

Other income decreased by $204 thousand, or 100%, to $0 for the year ended December 31, 2024, from $204 thousand for the year ended December 31, 2023. The decrease was primarily attributable to no additional grants awarded by Meta (Facebook) during the year.

***Interest Income***

Interest income decreased by $8 thousand, or 100%, to $0 for the year ended December 31, 2024, from $8 thousand for the year ended December 31, 2024. The decrease was primarily attributable to closing the Company's interest-bearing Money Market Account.

***Interest Expense***

Interest expense increased by $444 thousand, or 3,171%, to $458 thousand for the year ended December 31, 2024, from $14 thousand for the year ended December 31, 2023. The increase was primarily attributable to the company recognizing accrued interest expense on convertible notes issued, merchant cash advances, loans payable and notes payable.

***Total Other Income (Expense), Net***

Total other (expense) income, net decreased by $712 thousand, or 278%, to net other expense of $456 thousand for the year ended December 31, 2024, from net other income of $256 thousand for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in grant income and increase in interest expense.

***Provision for Income Taxes***

The provision for income taxes did not significantly fluctuate year over year. The U.S. federal statutory tax rate is 21%, while our effective tax rate for the year ended December 31, 2024 and 2023 was 0% and 0%, respectively.

**LIQUIDITY AND CAPITAL RESOURCES**

**Sources of Liquidity**

Our capital requirements will depend on many factors, including the growth and expansion of our paid subscribers, development of our software platform and our new AR/VR headset (including research and development efforts), expansion of our sales and marketing activities and sales, general and administrative expenses. As of June 30, 2025, we had cash of $372,274, which primarily comprised cash in banks deposit with financial institutions. As of December 31, 2024 and 2023, we had cash, cash equivalents, and restricted cash of approximately $242,290 and $1.6 million, respectively, which comprised primarily cash on hand and amounts on deposit with financial institutions. To date, our principal sources of liquidity have been proceeds received from the issuance of equity and financing activities.

Until we can generate sufficient revenue from paid subscribers and sales of products and services to cover operating expenses, working capital and capital expenditures, we expect the funds raised in this Offering to fund our cash needs. If we are required to raise additional funds by issuing equity securities, dilution to our stockholders would result. Furthermore, the terms of any debt securities or borrowings could impose significant restrictions on our operations. In addition, the credit market and financial services industry have experienced in the past, and may experience in the future, periods of uncertainty that could impact the availability and cost of equity and debt financing.

We generated negative cash flows from operating activities during the periods ended June 30, 2025 and 2024 and during the years ended December 31, 2024 and 2023, and have incurred negative cash flows from operating activities and significant losses from operations prior to this fiscal year as reflected in our accumulated deficit of $33.25 million as of June 30, 2025, and $31.37 million and $17.1 million as of December 31, 2024 and 2023, respectively. We expect to incur operating losses for the foreseeable future due to the planned spending to develop our AR/VR headset and to improve our software platform as well as costs associated with acquiring additional paid subscribers in connection with the growth of our business. As a result, we may require additional capital resources to grow our business. We believe that current cash, cash equivalents, and expected net proceeds from this Offering will be sufficient to fund our operating and capital expenditure requirements through at least 12 months following the date of issuance of our audited consolidated financial statements.

We have historically funded the net cash needed for operating and investing activities through the sale of equity and through debt financing. Before this Offering, we have cash to fund our forecasted operating expenses, working capital requirements and capital expenditures through April 2026. Therefore, we do not have adequate liquidity to meet our forecasted obligations for a period of one year from the date of this Offering. If we are unable to complete this Offering, we plan to decrease spending levels for labor, and also plan to reduce discretionary spending, including reducing our direct and indirect labor, reducing sales and marketing costs and focusing our available capital on a reduced number of prioritized activities and programs, in order to have sufficient liquidity from the convertible notes and public crowdfunding raised to fund our operations for at least one year from the date of the issuance of these consolidated financial statements. We cannot assure you that such measures would be sufficient to enable us to fund our operations for one year from the date of this Offering if we are unable to complete this Offering.

**Equity Offerings**

In August 2023, Immersed conducted a public crowdfunding campaign pursuant to Regulation Crowdfunding through Wefunder Portal LLC ("WeFunder"). In connection with the offering, Immersed issued an aggregate amount of 604,546 shares of then common stock at a price per share of $4.9624, for gross proceeds of approximately $3.0 million. Immersed paid WeFunder fees and offering expenses of approximately $150,000, resulting in net proceeds of approximately $2.85 million. The offering was closed on August 31, 2023. Immersed used the net proceeds for working capital and general corporate costs and expenses. The shares of common stock issued in the Regulation Crowdfunding offering were restricted securities and were subject to transfer limitation under Regulation Crowdfunding for one year from the date of purchase, subject to limited exceptions.

**Debt and Financing Arrangements**

***Convertible Note Financing***

In August 2023, Immersed entered into three note purchase agreements with certain investors, pursuant to which we issued to such investors convertible promissory notes in an aggregate amount of $450,000 (as amended from time to time, the "2023 Convertible Notes") with a 20% discount. The 2023 Convertible Notes bear interest at a rate of 8% per annum with all principal and interest due and payable on the earlier of: (i) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date"), or (ii) in the events of default, which includes voluntary and involuntary proceedings. On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, one of the noteholders of the 2023 Convertible Notes had its note converted into 479,568 shares of Series B Common Stock. Assuming conversion of the remaining outstanding 2023 Convertible Notes in connection with the consummation of this Offering, an aggregate of approximately 1,680,652 shares of Series B Common Stock would be issuable to the noteholders.

In May 2024, Immersed entered into a note purchase agreement with a certain investor, pursuant to which Immersed issued to such investor a convertible promissory note in an aggregate amount of $1,000,000, with a 10% discount. The note bears interest at a rate of 8% per annum with all principal and interest due and payable on the earlier date of: (i) 5 days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or (ii) in the events of default, which includes voluntary and involuntary proceedings. On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, the outstanding principal and accrued but unpaid interest under this note automatically converted into 4,543,905 shares of our Series B Common Stock, and the note was deemed paid in full, cancelled and of no further force or effect. We did not receive any cash proceeds from this conversion.

In July 2024, Immersed issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; (i) 5 days after the receipts of demand for payment, which demand shall not be made prior to July 2026, or (ii) in the events of default, which includes voluntary and involuntary proceedings. On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, certain noteholders had their notes converted into 3,027,240 shares of Series B Common Stock. Assuming conversion of the remaining outstanding notes in connection with the consummation of this Offering, an aggregate of approximately 6,625,907 shares of Series B Common Stock would be issuable to the noteholders.

In November 2024, Immersed issued a single convertible promissory note for a total principal of $1,000,000, with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of: (i) 5 days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or (ii) in the events of default, which includes voluntary and involuntary proceedings. On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, the outstanding principal and accrued but unpaid interest under this note automatically converted into 2,297,405 shares of our Series B Common Stock, and the note was deemed paid in full, cancelled and of no further force or effect. We did not receive any cash proceeds from this conversion.

In January 2025, Immersed issued a single convertible note for a total principal of $50,000, with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to January 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings. On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, the outstanding principal and accrued but unpaid interest under this note automatically converted into 216,019 shares of our Series B Common Stock, and the note was deemed paid in full, cancelled and of no further force or effect.

In January 2025, Immersed commenced selling convertible promissory notes in connection with its public crowdfunding campaign (the "2025 Reg CF Offering"). The notes issued in the 2025 Reg CF Offering (the "2025 Reg CF Notes") bear simple interest at 8% per annum, with all principal and interest due and payable on the earlier of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to second anniversary of the issuance date, or (b) in the events of default, which includes voluntary and involuntary proceedings. Investors in the 2025 Reg CF Offering purchased convertible notes (i) through Immersed III EB, a series of Wefunder SPV, LLC (the "III EB SPV"), in connection with early bird investments up to April 30, 2025, with a 10% discount, and (ii) Immersed III, a series of Wefunder SPV, LLC (the "III SPV"), with 0% discount. The III EB SPV and III SPV are each a special purpose vehicle that invested all of its assets in the convertible notes issued by Immersed in connection with the 2025 Reg CF Offering. Immersed raised aggregate proceeds of approximately $1.75 million as of May 6, 2025, when the 2025 Reg CF Offering ended.

In connection with the 2025 Reg CF Offering:

(a) in
 February 2025, Immersed issued multiple convertible notes which were part of a series of notes for a total principal of
 $559,400, of which $230,000 includes notes with a 10% discount;

(b) in March 2025, Immersed
 issued multiple convertible notes which were part of a series of notes for a total principal of $165,800, of which $10,000 includes
 notes with a 10% discount;

(c) in April 2025, Immersed
 issued multiple convertible notes which were part of a series of notes for a total principal of $408,612; and

(d) in May 2025, Immersed
 issued multiple convertible notes which were part of a series of notes for a total principal of $620,922.

On December 24, 2025, pursuant to a Note Conversion and Cancellation Agreement, the outstanding principal and accrued but unpaid interest under the 2025 Reg CF Notes automatically converted into 5,869,787 shares of Series B Common Stock, and the 2025 Reg CF Notes were deemed paid in full, cancelled and of no further force or effect. We did not receive any cash proceeds from this conversion.

In June 2025, Immersed issued a single convertible note for a total principal of $250,000, with a 10% discount. The note bears interest at a rate of 8% per annum, with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to June 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings. Assuming the conversion of the note upon consummation of this Offering, an aggregate of 572,159 shares of Series B Common Stock would be issuable to the noteholder.

In June 2025, Immersed commenced selling convertible promissory notes in connection with its public crowdfunding campaign (the "June Reg CF Offering"). The notes issued in the June Reg CF Offering (the "June Reg CF Notes") bear simple interest at 8% per annum, with all principal and interest due and payable on the earlier of (a) five days after the receipt of demand for payment, which demand shall not be made prior to third anniversary of the issuance date, or (b) in the events of default, which includes voluntary and involuntary proceedings. Investors in the June Reg CF Offering purchased convertible notes through DealMaker portal, with a 10% discount. Immersed raised aggregate proceeds of approximately $3.0 million as of December 24, 2025 (subject to final accounting by DealMaker), when the June Reg CF Offering ended. Assuming conversion of the outstanding notes in connection with the consummation of this Offering, an aggregate of approximately 7,557,274 shares of Series B Common Stock would be issuable to the noteholders.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Immersed's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing, and (iii) in the case of other liquidity event, the aggregate fair market value of Immersed's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense recognized for the years ended December 31, 2024 and 2023, on these notes amounted to $167,511 and $14,104, respectively, all of which remained accrued and outstanding at December 31, 2024. As of December 31, 2024 and 2023, the outstanding principal was $4,599,300 and $450,000, respectively.

For the six months ended June 30, 2025, Immersed recorded a discount on the convertible notes amounting to $114,058, which is being amortized to interest expense over the term of the loans. For the six months ended June 30, 2025, $13,490 of discount was amortized to interest expense. No discount on convertible notes was recorded for the six months ended June 30, 2024.

Interest expense recognized for the six months ended June 30, 2025 and 2024 on these notes amounted to $212,974 and $26,400, respectively, all of which remained accrued and outstanding as of June 30, 2025. As of June 30, 2025 and 2024, the outstanding principal was $6,553,466 and $1,450,000, net of unamortized discount of $100,568 and $0, respectively.

***Notes Payable***

On July 11, 2024, Immersed entered into multiple promissory note agreements for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of; (a) July 11, 2025, or (b) in the events of default, which include voluntary and involuntary proceedings. As of June 30, 2025 and December 31, 2024, the Company had outstanding principal balances of $62,000 and $177,000, respectively.

Interest expense recognized for the year ended December 31, 2024, on these notes amounted to $20,300, of which $16,917 remained accrued and outstanding as of December 31, 2024.

Interest expense recognized for the six months ended June 30, 2025, on these notes amounted to $21,117, of which $9,514 remained accrued and outstanding at June 30, 2025.

***Merchant Cash Advances***

Immersed entered into multiple agreements with the merchant cash advance providers. Below is a summary of those agreements:

In March 2024, Immersed received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000, with interest rate of 35% per annum. Immersed recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan was paid in full in March 2025.

On March 25, 2024, Immersed entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, Immersed entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan was paid in full in April 2025.

On September 27, 2024, Immersed entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan was paid in full in March 2025.

On October 1, 2024, Immersed entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from Immersed's bank account until the total required payments are made.

On March 4, 2025, Immersed entered into a short-term agreement with Fundfi Merchant Funding, LLC totaling $454,530. Total weekly required payments are $13,369 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $127,530, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Immersed's bank account until the total required payments are made.

On May 12, 2025, Immersed entered into a short-term agreement with Cedar Advance LLC totaling $147,000. Total weekly required payments are $6,516 for the whole term of the loan. Immersed recorded a discount on the loan amounting to $42,000, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 30% which is being deducted automatically from the Immersed's bank account until the total required payments are made.

As of June 30, 2025 and December 31, 2024, the Company has an outstanding balance of $404,910 and $295,350, net of unamortized discount of $88,965 and $78,735, respectively. Interest expense recognized for the periods ended June 30, 2025 and 2024 on these loans amounted to $180,660 and $77,778, respectively. Interest expense from amortization of loan discount for the year ended December 31, 2024, amounted to $205,665.

***Loan Agreements***

Immersed entered into multiple loan agreements. Below is a summary of those agreements:

In March 2024, Immersed received its first loan from Shopify totaling $270,000. Immersed recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of Immersed's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by Immersed's balances on its Shopify account.

On May 13, 2024, Immersed received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. Immersed recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, Immersed received a second loan from Shopify totaling $75,000. Immersed recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by Immersed's balances on its Shopify account.

On October 15, 2024, Immersed received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. Immersed recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loan. The loan matures in April 2026 and carries an interest rate of 8% per annum. The loan was paid in full in February 2025.

On February 18, 2025, Immersed received a loan from Stripe Capital, a financial institution, for a total principal of $132,900. Immersed recorded a discount on the loan amounting to $14,220, which is being amortized to interest expense over the term of the loan. The loan matures in August 2026 and carries interest rate of 7.1% per annum.

As of June 30, 2025 and December 31, 2024, Immersed had an outstanding balance of $232,176 and $195,854, net of unamortized discount of $18,503 and $32,087, respectively. Interest expense recognized for the periods ended June 30, 2025 and 2024 on these loans amounted to $27,803 and $8,626, respectively. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $30,883.

***Other commitments***

Immersed leased office space under an operating lease for our U.S. headquarters that expired in 2024.

**Digital Assets**

During 2022, the Company acquired 384 Ethereum through the sale of Immersed Virtual Property ("vProperty"). The Company held a minimal amount of Ethereum through the sale of vProperty during 2024 and 2023. During 2023, the Company acquired 1 additional Ethereum through the sale of vProperty, sold the 363 Ethereum held on February 18, 2023 and recorded a gain of $259,048. In June 2023, the Company decided to cancel vProperty project due to refocusing on spatial computing. The Company purchased 327 Ethereum to facilitate refunds of the vProperty deposits and refunded 321 Ethereum of the vProperty deposits resulting in a gain on the refund settlements of $58,149. The Company recorded digital asset impairment losses of $3,729 for the year ended December 31, 2023 on the remaining 6 Ethereum held as of December 31, 2023.

During 2024, Immersed reversed digital impairment losses of $1,895 and recorded and additional gain of $4,064 due to the exchange of Ethereum for another NFT "USDC". As of December 31, 2024, Immersed held approximately $6.00 and $2,635 of Ethereum and USDC, respectively.

During the period ended June 30, 2025, Immersed has not recorded digital asset impairment losses. As of June 30, 2025, Immersed held approximately $6.00 and $2,635 of Ethereum and USDC, respectively.

**Known Trends or Uncertainties**

As discussed elsewhere in this Offering Circular, the world has continued to be affected by the lingering effects of the COVID-19 pandemic, the ongoing conflicts between Russia and Ukraine as well as Israel and Hamas, economic uncertainty in human capital management and certain other macroeconomic factors. Inflation has risen, Federal Reserve interest rates have increased over the last year, and the general consensus among economists continues to suggest that we should expect a higher recession risk to continue for the near term. Additionally, it is possible that U.S. policy changes, including changes and uncertainty, could increase market volatility. These factors, amongst other things, could result in further economic uncertainty and volatility in the capital markets in the near term, and could negatively affect our operations. Effects of recent economic volatility have negatively impacted our business in various ways over the last three years, including as a result of global supply chain constraints at least partially attributable to the pandemic.

Global supply chain shortages (especially when coupled with the increase in inflation and other economic factors) could result in an increase in the cost of the components used in our products, which could result in a decrease in our gross margins or in us having to increase the price at which we sell our products until supply chain constraints are resolved. Additionally, in the event that the price of our components increases significantly or we are unable to source sufficient components and materials from our current suppliers, or to develop relationships with additional suppliers, to manufacture enough of our products to satisfy demand, we may have to slow down production and our business operations and financial condition may be materially harmed and we may need to alter our plan of operation.

The United States has implemented tariffs on certain imported goods, including on certain items imported from China. In addition, China has imposed tariffs on a wide range of American products and placed restrictions on the export of certain items in retaliation for these American tariffs. As a result, there is a concern that the imposition of additional tariffs by the United States could result in the adoption of additional tariffs or export restrictions by China and/or other countries. Any resulting trade war could negatively impact on our business. The imposition of tariffs on items imported by us from China or other countries could increase our costs and could result in lowering our gross margin on products sold.

Additionally, U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the ongoing military conflicts between Russia and Ukraine and between Israel and Hamas. Although the length and impact of the ongoing military conflicts is highly unpredictable, the conflicts in Ukraine and the Middle East could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as further supply chain interruptions. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets, potentially making it more difficult for us to obtain additional funds.

Although our business has not been materially impacted by the ongoing military conflict between Russian and Ukraine or the conflict between Israel and Hamas to date, it is impossible to predict the extent to which our operations, or those of our suppliers and manufacturers, will be impacted in the short and long term, or the ways in which the conflict may impact our business. The extent and duration of the military action and resulting market disruptions are impossible to predict, but could be substantial. We are continuing to monitor the situations in Ukraine, the Middle East and globally to assess potential impacts on our business.

As a result of these global issues and other macroeconomic factors, it has been difficult to accurately forecast our revenues or financial results, especially given the near- and long-term impact of the pandemic, geopolitical issues, inflation, the Federal Reserve maintaining high interest rates, the potential for a recession and recent uncertainties from the new presidential administration. In addition, while the potential impact and duration of these issues on the economy and our business may be difficult to assess or predict, these world events have resulted in, and may continue to result in, significant disruption of global financial markets, and may reduce our ability to access additional capital, which could negatively affect our liquidity in the future. Our results of operations could be materially below our forecasts as well, which could adversely affect our results of operations, disappoint analysts and investors, or cause our stock price to decline. Furthermore, a decrease in orders in a given period could negatively affect our revenues in future periods.

These global issues and events may also have the effect of heightening many risks associated with our customers and supply chain. We may take further actions that alter our operations as may be required by federal, state, or local authorities from time to time, or which we determine are in our best interests. In addition, we may decide to postpone or abandon planned investments in our business in response to changes in our business, which may impact our ability to attract and retain customers and our rate of innovation, either of which could harm our business.

***Inflation***

Inflation has increased recently and future rates are unknown. Inflationary factors, such as increases in the cost of our products (and components thereof), interest rates, overhead costs and transportation costs may adversely affect our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, we may experience some effect in the near future (especially if inflation rates continue to rise) due to supply chain constraints, consequences associated with the ongoing conflicts between Russia and Ukraine and Israel and Hamas, employee availability and wage increases, trade tariffs imposed on certain products from China and increased component and services pricing.

**Cash Flows for the six months ended June 30, 2025 and 2024**

The following table sets forth a summary of our cash flows for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | (1646) | (3092) |
| &nbsp;&nbsp;&nbsp;Investing activities | (9) | (4) |
| &nbsp;&nbsp;&nbsp;Financing activities | 1784 | 1534 |

---

***Net Cash Provided by (Used in) Operating Activities***

Net cash used in operating activities was $1.7 million for the six months ended June 30, 2025. This amount primarily consisted of a net loss of $1.9 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.20 million amortization of discounts on merchant cash advances and loans payable. Changes in net operating assets and liabilities primarily consisted of decrease in accounts receivable, prepaid expenses, and vProperty deposits, operating lease right-of-use asset, and operating lease liability and offset by increase in accounts payable, accrued expenses, and deferred revenue.

Net cash used in operating activities was $3.1 million for the six months ended June 30, 2024. This amount primarily consisted of a net loss of $7.1 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.10 million amortization of discounts on merchant cash advances and loans payable and $0.14 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in operating lease right-of-use asset and accounts receivable and increase in accounts payable, accrued expenses and deferred revenue offset by increase in prepaid expenses, vProperty deposits and operating lease liability.

***Net Cash Used in Investing Activities***

Net cash used in investing activities was $9 thousand for the six months ended June 30, 2025. This amount primarily consisted of $6 thousand purchase of intangible and $3 thousand purchase of property and equipment.

Net cash used in investing activities was $4 thousand for the six months ended June 30, 2024. This amount primarily consisted of $12 thousand purchase of property and offset by $8 thousand sale of digital assets.

***Net Cash Provided by Financing Activities***

Net cash provided by financing activities was $1.8 million for the six months ended June 30, 2025. This amount primarily consisted of proceeds from convertible notes payable, merchant cash advances, and loans payable for an aggregate amount of $2.5 million.

Net cash provided by financing activities was $1.5 million for the six months ended June 30, 2024. This amount primarily consisted of proceeds from convertible notes payable, merchant cash advances, and loans payable for an aggregate amount of $1.9 million.

**Cash Flows for the year ended December 31, 2024 and 2023**

The following table sets forth a summary of our cash flows for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** |
| <br>**(in thousands)** | **2024** | **2023** |
| Cash provided by (used in): |  |  |
| Operating activities | $(5941) | $(4717) |
| Investing activities | $(3) | $391 |
| Financing activities | $4597 | $3425 |

---

***Net Cash Provided by (Used in) Operating Activities***

Net cash used in operating activities was $5.9 million for the year ended December 31, 2024. This amount primarily consisted of a net loss of $14.3 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.24 million amortization of discounts on merchant cash advances and loans payable and $0.22 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in accounts receivable, prepaid expenses, and vProperty deposits, operating lease right-of-use asset, and operating lease liability and offset by increase in accounts payable, accrued expenses, and deferred revenue.

Net cash used in operating activities was $4.7 million for the year ended December 31, 2023. This amount primarily consisted of a net loss of $5.3 million, offset by certain non-cash charges, and a decrease in net operating assets and liabilities. The non-cash charges primarily consisted of $0.25 million of digital asset gains on sale, and $0.22 million of stock-based compensation expense. Changes in net operating assets and liabilities primarily consisted of decrease in operating lease right-of-use asset and increase in accounts payable and accrued expenses, significantly offset by increase in accounts receivable, prepaid expenses and deferred revenue, vProperty deposits and operating lease liability.

***Net Cash Used in Investing Activities***

Net cash used in investing activities was $3 thousand for the year ended December 31, 2024. This amount primarily consisted of $17 thousand purchase of property and offset by equipment and sale of digital assets and property and equipment for $8 thousand and $6 thousand, respectively.

Net cash provided by investing activities was $391 thousand for the year ended December 31, 2023. This amount primarily consisted of the sale of digital assets.

***Net Cash Provided by Financing Activities***

Net cash provided by financing activities was $4.5 million for the year ended December 31, 2024. This amount primarily consisted of proceeds from convertible notes payable, notes payable, merchant cash advances, and loans payable for an aggregate amount of $5.9 million.

Net cash provided by financing activities was $3.4 million for the year ended December 31, 2023. This amount primarily consisted of proceeds from the issuance of common stock for $3.1 million.

**Off-Balance Sheet Arrangements**

As of the balance sheet date of June 30, 2025, we have not engaged in any off-balance sheet arrangements as defined in the rules and regulations of the SEC. As of the balance sheet date of December 31, 2024, we have not engaged in any off-balance sheet arrangements as defined in the rules and regulations of the SEC.

**Relaxed Ongoing Reporting Requirements**

Regulation A+ provides that a filer can take advantage of an extended transition period for complying with new or revised accounting standards. We have elected to avail ourselves of this exemption and, therefore, we will not be subject to the same adoption period for new or revised accounting standards as public companies.

Upon the completion of this Offering Statement, we may elect to become a public reporting company under the Securities Exchange Act of 1934, as amended (the Exchange Act). If we elect to do so, we will be required to publicly report on an ongoing basis as an "emerging growth company" (as defined in the JOBS Act) under the reporting rules set forth under the Exchange Act. As defined in the JOBS Act, an emerging growth company is defined as a company with less than $1 billion in revenue during its last fiscal year. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies.

For so long as we remain an "emerging growth company," we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not "emerging growth companies," including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· not being required to comply
 with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· taking advantage of extensions
 of time to comply with certain new or revised financial accounting standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· being permitted to comply
 with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· being exempt from the requirement
 to hold a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously
 approved.

If we are required to publicly report under the Exchange Act as an "emerging growth company", we expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an "emerging growth company" for up to 5 years, though if the market value of shares of our common stock that is held by non-affiliates exceeds $750 million, we would cease to be an "emerging growth company."

We have commenced reporting under the Regulation A+ reporting requirements. If we elect not to become a public reporting company under the Exchange Act, we will be required to continue to publicly report on an ongoing basis under the reporting rules set forth in Regulation A+ for Tier 2 issuers. The ongoing reporting requirements under Regulation A+ are more relaxed than for "emerging growth companies" under the Exchange Act. The differences include, but are not limited to, being required to file only annual and semi-annual reports, rather than annual and quarterly reports. Annual reports are due within 120 calendar days after the end of the issuer's fiscal year, and semi-annual reports are due within 90 calendar days after the end of the first six months of the issuer's fiscal year.

**CRITICAL ACCOUNTING POLICIES AND ESTIMATES**

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP. We evaluated the development and selection of our critical accounting policies and estimates and believe that the following involve a higher degree of judgment or complexity and are most significant to reporting our results of operations and financial position and are therefore discussed as critical. The following critical accounting policies reflect the significant estimates and judgements used in the preparation of our consolidated financial statements. Actual results could differ materially from those estimates and assumptions, and those differences could be material to our consolidated financial statements.

We re-evaluate our estimates on an ongoing basis. For information on our significant accounting policies, refer to Note 2 — Summary of Significant Accounting Policies to our audited consolidated financial statements contained elsewhere in this Offering Circular.

**Revenue**

Effective January 1, 2019, our revenue recognition policy is a critical policy due to the adoption of the guidance from ASC 606, Revenue from Contracts with Customers, and because of the variety of revenue generating transactions. We determine the amount of revenue to be recognized through the application of the following steps: (1) identify the contract; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) performance obligations are satisfied.

Immersed enters into monthly and yearly subscription plans with our customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. We recognize revenue ratably over the term of the agreement, as our performance obligation is satisfied over time.

Immersed records contract service revenue when services are performed. Immersed records grant income as milestones are achieved.

**Stock-Based Compensation**

We measure and record the expense related to stock-based payment awards based on the fair value of those awards as determined on the date of grant. We recognize stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and use the straight-line method to recognize stock-based compensation. For stock options with performance conditions, we record compensation expense when it is deemed probable that the performance condition will be met. We account for forfeitures as they occur. We selected the Black-Scholes option-pricing model as the method for determining the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of highly subjective and complex assumptions, which determine the fair value of stock-based awards, including the option's expected term and the price volatility of the underlying stock.

We calculated the fair value of options granted by using the Black-Scholes option-pricing model with the following assumptions:

*Expected Volatility* — We estimated volatility for option grants by evaluating the average historical volatility of a peer group of companies for the period immediately preceding the option grant for a term that is approximately equal to the options' expected term.

*Expected Term* — The expected term of the Immersed's options represents the period that the stock-based awards are expected to be outstanding. We have elected to use the midpoint of the stock options vesting term and contractual expiration period to compute the expected term, as we do not have sufficient historical information to develop reasonable expectations about future exercise patterns and post vesting employment termination behavior.

*Risk-Free Interest Rate* — The risk-free interest rate is based on the implied yield available on US Treasury zero coupon issues with a term that is equal to the options' expected term at the grant date. Dividend Yield — We have never declared or paid dividends and do not anticipate declaring dividends.

As such, the dividend yield has been estimated to be zero.

Refer to Note 4 — Stockholders' Equity to our audited consolidated financial statements included elsewhere in this Offering Circular.

**Common Stock Valuation**

In the absence of a public trading market for our common stock, the fair value of our common stock has historically been determined by our Board with inputs from management, taking into account our most recent valuations from an independent third-party valuation specialist. Our Board intended all stock options granted to have an exercise price per share not less than the per share fair value of our common stock on the date of grant. The valuations of our common stock were determined in accordance with the guidelines outlined in the American Institute of Certified Public Accountants ("AICPA") Accounting and Valuation Guide: Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the "AICPA guide"). The assumptions used to determine the estimated fair value of our common stock are based on numerous objective and subjective factors, combined with management's judgment, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· relevant precedent transactions
 involving our capital stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· external market conditions
 affecting the industry and trends within the industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the rights, preferences
 and privileges of our redeemable convertible preferred stock relative to those of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our financial condition
 and operating results, including our levels of available capital resources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the progress of our research
 and development efforts, our stage of development and business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the likelihood of achieving
 a liquidity event, such as an initial public offering or a sale of our given prevailing market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the history and nature
 of our business, industry trends and competitive environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the lack of marketability
 of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· recent secondary stock
 sales and tender offers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· equity market conditions
 affecting comparable public companies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· general U.S. and global
 market conditions.

In determining the fair value of our common stock, we have established the enterprise value of our business using the Market Approach: Guideline Public Company Method. The Market Approach: Guideline Public Company Method relies on an analysis of publicly traded companies similar in industry and/or business model to the Company. This methodology uses these guideline companies to develop relevant market multiples and ratios, using metrics such as revenue, earnings before interest and taxes (EBIT), earnings before interest, taxes, depreciation and amortization (EBITDA), net income and/or tangible book value. These multiples and values are then applied to the Company's corresponding financial metrics.

In order to determine the value of the Company's common shares as of September 8, 2024, 409a valuation, a global list of companies that could be considered similar to the Company. was compiled for comparative purposes from a variety of sources including Capital IQ and communication with management. Publicly traded guideline companies were selected based on consideration of business descriptions, operations and geographic presence, financial size and performance, stock liquidity, and management recommendations regarding most similar companies. The total equity value implied by the guideline companies was then applied in the context of an option pricing model ("OPM") to determine the value of each class of the Company's shares. The OPM allocates a company's equity value among the various capital investors. The OPM takes into account the preferred shareholders' liquidation preferences, participation rights, dividend policy, and conversion rights to determine how proceeds from a liquidity event shall be distributed among the various ownership classes at a future date. The reliance on the OPM through December 31, 2024, was appropriate when the range of possible future outcomes was difficult to predict and resulted in a highly speculative forecast.

Application of these approaches and methodologies involves the use of estimates, judgments and assumptions that are highly complex and subjective, such as those regarding our expected future revenue, expenses and future cash flows, discount rates, market multiples, the selection of comparable public companies, and the probability of and timing associated with possible future events. Changes in any or all of these estimates and assumptions or the relationships between those assumptions impact on our valuations as of each valuation date and may have a material impact on the valuation of our common stock.

**Internal Control Over Financial Reporting**

In connection with the audits of our financial statements for the years ended December 31, 2024 and 2023, a significant deficiency in our internal control was identified.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Company's financial statements will not be prevented, or detected and corrected, on a timely basis. No deficiencies in internal control were identified that are considered to be material weaknesses.

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. The following deficiency in internal control is considered to be a significant deficiency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Design and implement controls
 to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations.

For a description of the identified significant deficiency see section titled "Risk Factors — We have identified a significant deficiency in our design and implementation of controls to formalize roles and review responsibilities. If unable to remediate this significant deficiency or if management identifies additional deficiencies in the future or otherwise fail to maintain effective internal controls, we may not be able to accurately or timely report its financial position or results of operations, which may adversely affect our business and stock price or cause our access to the capital markets to be impaired."

We expect that our remediation efforts for this significant deficiency will include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· design and implement controls
 to formalize roles and review responsibilities to align the team's skills and experience, including segregation of duties considerations;

We plan to continue to assess our internal controls and procedures and intend to take further action as necessary or appropriate to address any other matters we identify.

**Quantitative and Qualitative Disclosures About Market Risk**

We are subject to market risk, primarily relating to potential losses arising from adverse changes in foreign currency exchange rates.

**DIRECTORS, EXECUTIVE** **OFFICERS AND SIGNIFICANT EMPLOYEES**

The table below sets forth our directors and executive officers as of the date of this Offering Circular.

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| | | | |
|:---|:---|:---|:---|
| **Name**  | **Age**  | **Position**  | **Term of Office**  |
| **Executive Officers:** |  |  |  |
| Renji Bijoy | 34 | Chief Executive Officer | January 2017 |
| Ryan Yep<sup>(1)</sup> | 38 | Secretary | Upon the qualification of this Offering |
| **Directors:** |  |  |  |
| Renji Bijoy | 34 | Director | January 2017 |
| Jacob Thomsen<sup>(1)</sup> | 43 | Director | Upon the qualification of this Offering |
| David Willbrand<sup>(1)</sup> | 55 | Director | Upon the qualification of this Offering |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) On
 October 8, 2025, the Board approved (i) the appointment of Jacob Thomsen and David Willbrand
 to serve as members of our Board, in each case effective upon the qualification of this Offering
 by the SEC; and (ii) the appointment of Ryan Yep to serve as the secretary effective upon
 the qualification of this Offering.

The members of the Board are elected at each annual meeting of stockholders to hold office until the next annual meeting. Each director, including a director elected to fill a vacancy, shall hold office until his or her successor is elected and qualified or until his or her earlier resignation or removal. The Board has no nominating, auditing, or compensation committees. No date for the next annual meeting of stockholders is specified in the Company's bylaws or has been fixed by the Board.

The Board may appoint, or empower the chief executive officer or the president to appoint, such other officers and agents as the business of the corporation may require, each of whom shall hold office for such period, have such authority, and perform such duties as are provided in these bylaws or as the Board may from time to time determine. Subject to the rights (if any) of an officer under any contract of employment, any officer may be removed, either with or without cause, by an affirmative vote of the majority of the Board at any regular or special meeting of the board or, except in the case of an officer chosen by the Board, by any officer upon whom the power of removal is conferred by the Board. Any vacancy occurring in any office of the corporation shall be filled by the Board.

**Biographical Information**

***Renji Bijoy***

Mr. Bijoy is the Founder, Chief Executive Officer and Director of Immersed Inc. He is responsible for all aspects of building the company into one of the leading providers of enterprise AR/VR productivity solutions that is building AI productivity solutions to digitally transform the working environment to enhance worker and company efficiency. Prior to Immersed, he previously dedicated his time as an engineering mentor (consultant) in the Firehose Project (from April 2016 to August 2017) and at Viking Code school (from August 2017 to February 2017). Mr. Bijoy also worked for CNN as the lead software architect of greatbigstory.com (from September 2015 and May 2016) and at CareerBuilder as a senior software engineer (from November 2014 to August 2015). Prior to that, Mr. Bijoy worked at NCR Corporation as a mid-level software engineer (from January 2014 to November 2014). Mr. Bijoy holds a Bachelor of Science (B.S.), in Mathematics and Computer science from Emory University, and a Master of Science (M.S.) in Computer Science, specializing in Computational Perception and Robotics from Georgia Institute of Technology.

 ***Jacob Thomsen***

Mr. Thomsen has been with Sovereign's Capital Management, a registered investment advisor, since September 2016. He currently serves as the Managing Partner overseeing venture capital. Previously, among other roles, from July 2013 to September 2016, he served as Lead Associate and Manager of the Strategic Innovation Group at Booz Allen Hamilton. Mr. Thomsen earned a Bachelors Degree in Economics from Pomona College, and an MBA and MPP from Duke University.

 ***David Willbrand***

Mr. Willbrand has served as Chief Legal Officer & Corporate Secretary at Pasaco, Inc., a PropTech startup, since April 2021. Previously, from May 2004 to April 2021, he served as the founder and chair of the Emerging Company & Venture Capital practice group at Thompson Hine LLP, where he was a partner. Mr. Willbrand is the author of "Seed Deals: How to Grow from Startup to Venture Capital," and is a professor of law at the University of Michigan. He is also an Entrepreneur-in-Residence with the TechStars San Francisco program, and a guest lecturer, instructor and mentor at various universities and accelerators. Mr. Willbrand earned a Bachelor of Arts Degree from Harvard University and a Juris Doctor from The University of Cincinnati College of Law.

 ***Ryan Yep***

Mr. Yep serves as Head of Partnerships at Immersed Inc. and had been with the company since July 2021. He oversees go-to-market strategy and partnerships. Previously, from September 2016 to July 2021, Mr. Yep served as Territory Sales Representative at MLC CAD Systems, LLC, a value-added reseller of industrial design and manufacturing technologies. Mr. Yep earned a Bachelor of Arts in Government from the University of Texas at Austin.

**Involvement in Certain Legal Proceedings**

No executive officer, member of the Board or control person of our Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

**COMPENSATION OF** **DIRECTORS AND EXECUTIVE OFFICERS**

Our Board has historically determined the compensation for our executive officers.

Our Board has designed, and intends to modify as necessary, our compensation and benefits programs to attract, retain, incentivize and reward talented and qualified executives who share our philosophy and desire to work towards achieving our goals. We believe our compensation programs should promote our success and align executive incentives with the long-term interests of our stockholders. Our current compensation programs reflect our startup origins and consist primarily of salary, bonus and equity awards. As our needs evolve, we intend to continue to evaluate our philosophy and compensation programs as circumstances require.

The following table represents information regarding the total compensation for the three highest paid executive officers or directors of the Company during the last completed fiscal year ended 2024:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Capacity in which<br> compensation was received** | **Cash <br> Compensation ($)** | **Bonus ($)** | **Option <br> Awards ($)** | **Total<br> Compensation ($)** |
| Renji Bijoy | Chief Executive Officer | 72625.13 | 0 | 0 | 72625.13 |

---

**Directors Compensation**

No cash compensation was paid to the Company's directors for their service as directors for the year ended December 31, 2024.

**Executive Officers Compensation**

For 2024, the compensation program for our executive officers consisted of base salary and certain standard employee benefits. No cash bonus or equity awards were paid or granted during the fiscal year 2024.

**Equity Compensation**

Although we do not have a formal policy with respect to the grant of equity incentive awards to our executive officers, we believe that equity grants provide our executives with a strong link to our long-term performance, create an ownership culture and help to align the interests of our executives and our stockholders. In addition, we believe that equity grants promote executive retention because they incentivize executive officers to remain our employees during the vesting period. Accordingly, our Board may grant equity incentive awards to them from time to time. For additional information regarding outstanding equity awards held by our executive officer as of December 31, 2024, see the "Outstanding Equity Awards at 2024 Fiscal Year-End" table below.

**2017 Stock Option Plan**

On November 28, 2017, our Board adopted and our stockholders approved our 2017 Stock Option Plan. The 2017 Stock Option Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary). Our Board is the administrator of the 2017 Stock Option Plan.

As of December 29, 2025, 243,189,700 options to purchase shares of Series B Common Stock have been issued pursuant to stock option award agreements under the 2017 Stock Option Plan, with exercise prices ranging from $0.02 per share to $3.70 per share. In November 2025, the Board and our stockholders approved the termination of the 2017 Plan and adoption of the 2025 Plan, which replaces the 2017 Stock Option Plan for all new equity compensation awards. All of the remaining shares available for future grants under the 2017 Stock Option Plan have been transferred to the new 2025 Plan.

 **2025 Equity Incentive Plan**

In November 2025, the Board and our stockholders approved the 2025 Plan. The 2025 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary), officers, directors, consultants, advisors, and other service providers as determined by the Board or compensation committee. The Board is the administrator of the 2025 Plan.

The 2025 Plan does not affect or modify awards currently outstanding under the 2017 Stock Option Plan, which will continue to govern any outstanding options and awards granted pursuant to the 2017 Stock Option Plan until exercised, forfeited, settled, or expired.

The fair market value of each option granted is estimated in good faith by the Board to be the fair market value of a share of Series B Common Stock on such day (which determination shall, to the extent applicable, be made in a manner that complies with Section 409A of the Code), and such determination shall be conclusive and binding for all purposes.

As of December 29, 2025, 42,186,380 shares of Series A Common Stock remain available for future grants under the 2025 Plan. As of the date hereof, no options to purchase shares of Series A Common Stock have been issued.

**Benefits and Perquisites**

In 2024, we provided benefits to our named executive officers on the same basis as provided to all of our employees, including medical, dental, vision, flexible spending accounts, vacation and paid holidays.

**Outstanding Equity Awards at 2024 Fiscal Year-End**

The following table presents, for each of our named executive officers, information regarding outstanding equity awards as of December 31, 2024.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Award Grant<br> Date** | **Number of <br> Securities<br> Underlying<br> Unexercised<br> Options<br> Exercisable (#)** | **Number of<br> Securities<br> Underlying<br> Unexercised<br> Options<br> Unexercisable (#)** | **Option Exercise<br> Price<sup>(2)</sup>**  | **Option<br> Expiration Date** |
| Renji Bijoy | 11/03/2018 | 26375680<sup>(3)</sup> | – $| 0.03 | 11/03/2028 |
|  | 12/31/2021 | 25945280<sup>(3)</sup> | – $| 0.82 | 12/31/2031 |
|  | 12/31/2021 | 98245760<sup>(4)</sup> | – $| 0.82 | 12/31/2031 |
|  | 02/01/2022 | 67239380<sup>(4)</sup> | – $| 0.82 | 02/01/2032 |
|  | 11/14/2022 | 34087000<sup>(4)</sup> | – $| 0.82 | 11/14/2032 |

---

(1) All options
 listed above cover shares of Series B Common Stock.

(2) Represents the fair market value of a share of our
 Series B Common Stock on the date of grant, as determined by our Board.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Represent stock options granted outside of the 2017 Stock Option Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(4) Represent stock options granted under the 2017 Stock Option Plan.

**Employment Agreement**

We do not currently have an employment agreement with any of our directors or executive officers. We expect that our employment agreements when entered into with our executive officers will provide for a cash salary and participation in all employee benefit plans sponsored by us, in addition to paid vacation time and reimbursement for reasonable expenses.

**Advisor Agreement**

We have an advisor agreement (the "Advisor Agreement") with Lonsdale Enterprises Inc. (the "Advisor"), pursuant to which the Advisor will provide services as agreed with our Chief Executive Officer and members of our management as an independent contractor until the earlier of (i) final completion of the services, or (ii) termination by either party upon 30 day's prior written notice to the other party. The Advisor will receive no employee or similar benefits from us. In consideration for performing the services to us, the Advisor shall be granted an option to purchase shares of our Series B Common Stock representing 0.20% of our fully-diluted capitalization as of the date of grant (the "Option"). The Option was granted on August 3, 2023, at a strike price of $0.56 and represented a total amount of 59,245 (or 1,184,900 after the Stock Split) shares of Series B Common Stock fully-vested.

Pursuant to the Advisor Agreement, we acknowledged that Joe Lonsdale is affiliated with Advisor and that Mr. Lonsdale is the managing member of Eight Partners VC, LLC, and its affiliated venture capital funds (collectively, the "8VC"), which are in the business of company incubation and formation and venture capital and private equity investing and which may now or in the future incubate, evaluate and/or invest in technologies or businesses similar to, or competitive with, those of ours.

**SECURITY OWNERSHIP OF** **MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table and accompanying footnotes set forth information with respect to the beneficial ownership of our Series A Common Stock, Series B Common Stock, Series C Common Stock, and our Preferred Stock, as of the date of this Offering Circular, for (1) each person known by us to be the beneficial owner of more than 5% of our outstanding shares, (2) each member of our Board, (3) each of our named executive officers, and (4) all of the members of our Board and our executive officers as a group. As of the date of this Offering Circular, our outstanding capital stock was (a) 133,268,164 shares of Common Stock, consisting of (i) zero shares of Series A Common Stock, (ii) 57,434,831 shares of Series B Common Stock, (iii) 75,833,333 shares of Series C Common Stock, and (iv) the remaining shall be undesignated; and (b) 179,000,000 shares of Preferred Stock, consisting of (i) 166,305,280 shares of Series 1 Convertible Preferred Stock, and (ii) the remaining is currently undesignated.

The number of shares and the percentages of beneficial ownership below are based on the number of shares issued and outstanding as of the date of this Offering Circular. In computing the number of shares beneficially owned by a person and the percentage ownership of such person, we deemed to be outstanding all shares subject to options held by the person that are currently exercisable or exercisable within 60 days of the date of this Offering Circular. We did not deem such shares outstanding, however, for the purpose of computing the percentage ownership of any other person.

Beneficial ownership for the purposes of the following table is determined in accordance with the rules and regulations of the SEC. A person is a "beneficial owner" of a security if that person has or shares "voting power", which includes the power to vote or to direct the voting of the security, or "investment power", which includes the power to dispose of or to direct the disposition of the security or has the right to acquire such powers within 60 days.

Unless otherwise noted in the footnotes to the following table, and subject to applicable community property laws, the persons and entities named in the table have sole voting and investment power with respect to their beneficially owned common stock and preferred stock. Unless otherwise noted, the address of each beneficial owner is c/o Immersed Inc., 106 E. 6th St. STE 900-202, Austin, Texas 78701.

---

| | | | | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **Shares Beneficially Owned Prior to Offering** | **% of<br> Total<br> Voting<br> Power<br> (1)**  | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **Shares Beneficially Owned After the Offering** | **%** **of<br> Total<br> Voting<br> Power<br> (1)**  |
| | **Series A**  | **Series A**  | **Series B**  | **Series B**  | **Series C**  | **Series C**  | **Series 1** <br> **Preferred Stock**  | **Series 1** <br> **Preferred Stock**  | | **Series A**  | **Series A**  | **Series B**  | **Series B**  | **Series C**  | **Series C**  | **Series 1** <br> **Preferred Stock**  | **Series 1** <br> **Preferred Stock**  | |
| <br>**Stockholders**  | **Shares**  | **%**  | **Shares**  | **%**  | **Shares**  | **%**  | **Shares** <sup>(6)</sup>**  | **%**  | | **Shares**  | **%**  | **Shares**  | **%**  | **Shares**  | **%**  | **Shares**  | **%**  | |
| Renji Bijoy(2)(7) |  |  | 256059767 | 82.8% | 75833333 | 100% |  |  | 76.6% |  |  | 251893100<sup>(8)</sup> | 72.5% | 75833333 | 100% |  |  | 73.4% |
| All directors and executive officers(3) |  |  | 258225647 | 82.9% | 75833333 | 100% | 440760 | \* | 76.7% |  |  | 254058980<sup>(8)</sup> | 72.7% | 75833333 | 100% | 440760 | \* | 73.4% |
| **10% Stockholders** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Entities affiliated to Sovereign's Capital II, LP(4) |  |  |  |  |  |  | 37628800 | 22.6% | 4.2% |  |  |  |  |  |  | 37628800 | 22.6% | 3.6% |
| Entities affiliated to XX Investments LLC(5) |  |  |  |  |  |  | 64559200 | 38.8% | 7.1% |  |  |  |  |  |  | 64559200 | 38.8% | 6.2% |

---

\* Represents less than 1.0%.

(1) "Percentage of total voting power" represents the voting power of the holder with respect to all of our Series A Common Stock, Series B Common Stock, Series C Common Stock, and Series 1 Preferred Stock, voting together as a single class. Holders of our Series 1 Preferred Stock are entitled to vote on an as-converted basis into Series B Common Stock at a conversion ratio of 1.1-for-1. The calculation of total voting power does not give effect to the exercise of outstanding stock options or the conversion of our outstanding convertible notes. Holders of our Series A Common Stock have no voting rights, holders of our Series B Common Stock are entitled to one vote per share, and holders of our Series C Common Stock are entitled to ten votes per share. For a description of the voting rights of our capital stock, see "Description of Capital Stock."

(2) Our Founder, Chief Executive Officer, and Director.

(3) As of the date of this Offering Circular, Renji Bijoy is the sole director and the only executive officer of the Company.

(4) Address at 3350 Riverwood Parkway, SE, Suite 670 Atlanta, GA 30339. 

(5) Address at 4104 24<sup>th</sup> St. PMB 8113, San Francisco, CA 94114.

(6) Calculated on an as-converted basis, with one share of Series 1 Preferred Stock being converted to one-tenth (1.1) shares of Series B Common Stock.

(7) Includes, as applicable, (i) 199,572,140 options to acquire shares of Series B Common Stock granted under the 2017 Stock Option Plan and (ii) 52,320,960 options to acquire shares of Series B Common Stock granted outside of the 2017 Stock Option Plan, in each case exercisable within 60 days of the date of this Offering Circular.

(8) Assuming the sale of 4,166,667 Shares by the Founder, which represents his total pro rata portion of the total number of Shares offered by the Selling Stockholders in connection with the Secondary Offering.

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

**Transactions with Related Persons**

***Notes Payable***

On July 11, 2024, Immersed entered into multiple promissory note agreements with related parties, including Immersed's chief executive officer, for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of (a) July 11, 2025, or (b) in the events of default, which include voluntary and involuntary proceedings. As of June 30, 2025, Immersed has an outstanding principal of $62,000. The interest expense on the notes for the year ended December 31, 2024, and the period of six months ended June 30, 2025, amounted to $20,300 and $21,117, respectively, of which $16,917 and $9,514 remained accrued and outstanding as of December 31, 2024 and as of June 30, 2025, respectively.

***Indemnification Agreements***

We have also entered into indemnification agreements with each of our directors and executive officers. In general, these indemnification agreements require us to indemnify directors and officers to the fullest extent permitted by law against liabilities that may arise by reason of his or her service for us.

**Review, Approval and Ratification of Related Party Transactions**

Our Board reviews and approves all related party transactions.

**DESCRIPTION OF CAPITAL STOCK**

 **Recent Amendments to Our Certificate of Incorporation**

In connection with this Offering, on October 20, 2025, our stockholders approved the Second Certificate of Incorporation, which became effective on the Effective Date. The Second Certificate of Incorporation, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) increased
 the number of shares of the authorized capital stock of the Company to the amount described
 under "Description of Capital Stock—Authorized Capital Stock;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) integrated
 and amended the voting powers, designations, preferences and relative, participating, optional
 or other special rights, and qualifications, limitations or restrictions of the Series 1
 Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) created
 three new series of Common Stock, comprising of (A) shares designated Series A Common Stock,
 which shall be non-voting; (B) shares designated Series B Common Stock, which shall entitle
 the holder thereof to one vote per share on all matters submitted to the stockholders; and
 (C) shares designated Series C Common Stock, which shall entitle the holder thereof to ten
 (10) votes per share on all matters submitted to the stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) reclassified,
 changed and subdivided each (A) share of Common Stock issued and outstanding immediately
 prior to Effective Date into twenty (20) shares of Series B Common Stock, and (B) each share
 of Series 1 Preferred Stock issued and outstanding immediately prior to the Effective Date
 into twenty (20) shares of Series 1 Preferred Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) adjusted
 the conversion rate applicable to the Series 1 Preferred Stock, whereby each share of Series
 1 Preferred Stock when converted into shares of Series B Common Stock will be converted on
 a 1 to 1.1 ratio.

Additionally, the stockholders also approved that certain exchange agreement entered into by and between the Founder and the Company, dated as of the Effective Date, by which the Company issued 75,833,333 shares of Series C Common Stock to the Founder in consideration for the contribution of 75,833,333 shares of Series B Common Stock then held by the Founder after the Reclassification.

The following is a summary of the rights of our capital stock as provided in our Second Certificate of Incorporation and bylaws. This summary is qualified in its entirety by reference to the Second Certificate of Incorporation and bylaws, which are filed as exhibits to the Offering Statement of which this Offering Circular is a part.

As of the date hereof, the total number of shares of all series and classes of capital stock which we shall have authority to issue is 1,002,569,762, which shall be divided into two classes as follows: (a) 823,569,762 shares of Common Stock, of which (i) 42,186,380 shares of Series A Common Stock, (ii) 666,332,441 shares of Series B Common Stock, (iii) 75,833,333 shares of Series C Common Stock, and (iv) the remaining is currently undesignated; and (b) 179,000,000 shares of Preferred Stock, consisting of (i) 166,305,280 shares of Series 1 Convertible Preferred Stock, and (ii) the remaining is currently undesignated.

**Common Stock**

 ***General***

All series of Common Stock have the same rights and privileges except as to voting as described below, and except as otherwise provided in the Second Certificate of Incorporation or required by applicable law. Subject to the rights of the holders of Preferred Stock, holders of Common Stock share ratably in any dividends that may be declared by our Board and in any assets available for distribution to stockholders in the event of a liquidation, dissolution or winding up of the Company.

 ****

***Voting***  ***Rights***

 ****

***Series A Common Stock:*** shares of Series A Common Stock are non-voting. Holders of Series A Common Stock are not entitled to vote on any matter submitted to a vote of stockholders, except as required by applicable law.

***Series B Common Stock:*** each share of Series B Common Stock entitles its holder to one (1) vote per share on all matters submitted to a vote of stockholders, voting together with the holders of Series C Common Stock as a single class (and, where applicable, together with any other voting stock).

***Series C Common Stock:*** each share of Series C Common Stock entitles its holder to ten (10) votes per share on all matters submitted to a vote of stockholders, voting together with the holders of Series B Common Stock as a single class (and, where applicable, together with any other voting stock).

Except as expressly provided in the Second Certificate of Incorporation or as required by law, holders of Series A Common Stock, Series B Common Stock and Series C Common Stock vote together (to the extent entitled to vote) as a single class on all matters submitted to a vote of stockholders. The holders of Common Stock are not entitled to cumulative voting in the election of directors.

In addition, except as otherwise required by law, holders of Common Stock, as such, are not entitled to vote on any amendment to the Company's certificate of incorporation that relates solely to the terms of one or more series of Preferred Stock, if the holders of such series are entitled to vote thereon separately (or together with one or more other series) pursuant to the Second Certificate of Incorporation or the Delaware General Corporation Law ("DGCL").

 ***Dividend Rights***

Subject to the rights of holders of any outstanding series of Preferred Stock, holders of Common Stock are entitled to receive dividends out of any assets legally available therefor, when, as and if declared by our Board. Dividends, if declared, are paid on a pari passu basis among all shares of Common Stock, provided that any dividend payable in shares of Common Stock (or rights to acquire Common Stock) must be paid in shares or rights of the same series of Common Stock held by the recipient.

Our Board may or may not declare dividends in the future, and any decision to do so will depend on our results of operations, financial condition, capital requirements and other factors that the Board deems relevant.

***Liquidation Rights***

Upon any voluntary or involuntary liquidation, dissolution or winding up of the Company, or a "Deemed Liquidation Event" (as defined in the Second Certificate of Incorporation), and subject to the prior rights of the holders of Preferred Stock, the holders of all classes and series of Common Stock share ratably, on a per share basis, in the assets of the Company available for distribution to stockholders.

 **Series C Common Stock – Conversion and Transfer** 

***Optional Conversion:*** each outstanding share of Series C Common Stock is convertible, at the option of the holder, into one (1) fully-paid and non-assessable share of Series B Common Stock, subject to the procedures and adjustments set forth in the Second Certificate of Incorporation.

***Automatic Conversion:*** each share of Series C Common Stock will automatically convert into one share of Series B Common Stock upon the earliest to occur of certain events, including (among others): (a) the seventh anniversary of the closing of the Company's initial public offering, (b) the seventh anniversary of the effectiveness of a registration statement relating to the initial listing of our equity securities on a national securities exchange in a direct listing, (c) the seventh anniversary of the consummation of a business combination with a special purpose acquisition company in which the surviving entity's equity is listed on a national securities exchange, (d) the date specified in a written conversion election delivered by holders of a majority of the voting power of the Series C Common Stock, or (e) upon a Transfer (as defined in the Second Certificate of Incorporation) of such shares, other than certain "Permitted Transfers" to specified family members and entities or as otherwise approved by our Board.

The Second Certificate of Incorporation also authorizes the Company to adopt policies and procedures relating to the multiple-class common stock structure and the conversion of Series C Common Stock into Series B Common Stock, including procedures to determine whether a Transfer has occurred and to effect automatic conversion in connection therewith.

**Series 1 Preferred Stock**

***Rank***

 ****

With respect to dividends and distributions of assets upon liquidation, dissolution or winding up of the Company, the Series 1 Preferred Stock ranks senior to the Common Stock and any other class or series of capital stock that is expressly designated as junior to the Series 1 Preferred Stock (collectively, the "Junior Securities").

***Voting***  ***Rights and Board Representation***

Each share of Series 1 Preferred Stock entitles the holder to cast the number of votes equal to the number of whole shares of Series B Common Stock into which such share is then convertible, on an as-converted basis, as of the applicable record date. Except as provided by law or otherwise in the Second Certificate of Incorporation, holders of Series 1 Preferred Stock vote together with the holders of voting Common Stock as a single class, on an as-converted to Series B Common Stock basis.

For so long as the Series 1 Preferred Stock is outstanding, the holders of Series 1 Preferred Stock, voting as a separate class on an as-converted basis, are entitled to elect one director of the Company (the "Preferred Stock Director"), who serves on our Board. The holders of Series B Common Stock and Series C Common Stock, voting together as a single class, are entitled to elect two directors of the Company, one of whom must qualify as an independent director, with any remaining directors elected as provided in the Second Certificate of Incorporation.

If at any time fewer than the number of shares of Series 1 Preferred Stock set forth in the Second Certificate of Incorporation (subject to adjustment for stock dividends, splits and similar recapitalizations) remain outstanding, the Preferred Stock Director may be removed by the holders of Series B Common Stock voting as a separate class, and thereafter the holders of Series B Common Stock, voting as a separate class, are entitled to elect the Preferred Stock Director.

***Dividend Rights***

The Company may not declare, pay or set aside any dividends on any other class or series of capital stock (other than dividends on Common Stock payable solely in additional shares of Common Stock) unless the holders of Series 1 Preferred Stock first receive, or simultaneously receive, a dividend per share at least equal to the greater of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For
 dividends on Common Stock or on any class or series convertible into Common Stock: the amount
 that would be payable on the number of shares of Common Stock issuable upon conversion of
 one share of Series 1 Preferred Stock, calculated as if all such shares of the other class
 or series were converted into Common Stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For
 dividends on any class or series that is not convertible into Common Stock: a dividend equal
 to (i) the dividend per share of such non-convertible class divided by its original issuance
 price (adjusted for stock splits and similar events), multiplied by (ii) the Series 1 Original
 Issue Price (as defined in the Second Certificate of Incorporation).

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company (including certain "Deemed Liquidation Events" as defined in the Second Certificate of Incorporation), holders of Series 1 Preferred Stock are entitled to receive, prior to any distribution to the holders of Junior Securities, an amount per share in cash equal to the greater of: (i) the Series 1 Original Issue Price, plus any declared but unpaid dividends thereon, and (ii) the amount that such holder would have received if all shares of Series 1 Preferred Stock had been converted into shares of Series B Common Stock immediately prior to such Liquidation (the "Liquidation Amount").

If the assets available for distribution upon a Liquidation are insufficient to pay the full Liquidation Amount to all holders of Series 1 Preferred Stock, such assets are distributed among the holders of Series 1 Preferred Stock on a pro rata basis, before any distribution is made to the holders of Junior Securities. After payment in full of the Liquidation Amount to the holders of Series 1 Preferred Stock, any remaining assets are distributed among the holders of Junior Securities as provided in the Second Certificate of Incorporation.

***Conversion Rights***

***Optional Conversion:*** subject to the terms and procedures set forth in the Second Certificate of Incorporation, each holder of Series 1 Preferred Stock may, at any time and from time to time, elect to convert some or all of its shares of Series 1 Preferred Stock into shares of Series B Common Stock.

 ****

***Automatic Conversion:*** all outstanding shares of Series 1 Preferred Stock will automatically convert into shares of Series B Common Stock upon the earliest to occur of: (a) immediately prior to the closing of the Company's initial public offering of a class or series of Common Stock under an effective registration statement, (b) immediately prior to the effectiveness of a direct listing of our equity securities on a national securities exchange, (c) immediately prior to the consummation of a business combination with a special purpose acquisition company in which the surviving entity's equity is listed on a national securities exchange, or (d) such other date, time or event as may be specified by the written consent of the holders of a majority of the outstanding shares of Series 1 Preferred Stock (voting together as a single class on an as-converted to Series B Common Stock basis, the "Requisite Holders").

***Conversion Rate:*** each share of Series 1 Preferred Stock is convertible into one and one-tenth (1.1) shares of Series B Common Stock (subject to equitable adjustment in the event of any stock dividend, stock split, combination or similar recapitalization). No fractional shares of Series B Common Stock are issued upon conversion, and any fractional share that would otherwise be issued is rounded up to the next whole share at no cost to the stockholder.

The Company is required at all times to reserve out of its authorized but unissued shares of Series B Common Stock a sufficient number of shares to effect the conversion of all outstanding Series 1 Preferred Stock.

***Redemption Rights***

The shares of Series 1 Preferred Stock are not redeemable.

***Amendment and Protective Provisions***

For so long as the protective provisions remain in effect, the Company may not, directly or indirectly (including by merger, consolidation or otherwise), undertake certain specified corporate actions without the written consent or affirmative vote of the Preferred Stock Director, given in writing or by vote at a meeting. These actions include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) liquidating,
 dissolving or winding up the business and affairs of the Company, or effecting any merger,
 consolidation or other Deemed Liquidation Event (as defined in the Certificate of Incorporation),
 unless the aggregate consideration payable to the Company and/or its stockholders is at least
 $140,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amending,
 altering or repealing any provision of the Certificate of Incorporation or bylaws in a manner
 that adversely affects the powers, preferences or rights of the Series 1 Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) creating,
 authorizing or issuing any new class or series of capital stock (or reclassifying existing
 capital stock) that ranks senior to or on parity with the Series 1 Preferred Stock with respect
 to rights, preferences or privileges, or increasing the authorized number of shares of Series
 1 Preferred Stock (or any class or series that ranks senior to or on parity with the Series
 1 Preferred Stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) purchasing
 or redeeming, or paying dividends or making other distributions on, any shares of capital
 stock, subject to limited exceptions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) creating
 or adopting, or amending, any equity or equity-linked compensation plan to increase the number
 of shares authorized for issuance thereunder.

These protective provisions terminate upon the earliest to occur of: (a) the Company having raised, in one or more equity or equity-linked financings (including under Regulation A, Regulation Crowdfunding or Regulation D), at least $15,000,000 in aggregate gross proceeds (counting only financings consummated on or after November 1, 2024); or (b) the number of shares of Series 1 Preferred Stock outstanding falling below a threshold set forth in the Second Certificate of Incorporation.

No provision of the portion of the Second Certificate of Incorporation governing the Series 1 Preferred Stock may be amended, modified or waived except by an instrument in writing executed by the Company and the Requisite Holders.

**Lock-Up Agreement**

The Subscribers holding shares of Common Stock issued under this Offering Statement, will provide an undertaking in the Subscription Agreement to lock-up its shares of Common Stock if requested by the Company. By providing this undertaking, Subscribers agree that in the event of an underwritten public offering or direct listing on a public exchange of the Company's securities or the closing of a merger or other business combination of the Company with a publicly-traded special purpose acquisition company following which the capital stock of the combined or surviving entity are listed for trading on a public exchange, that such Subscriber will irrevocably agree not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, lend, pledge, or otherwise transfer or dispose of any interest in any shares of Common Stock or any securities convertible into or exchangeable or exercisable for or any other rights to purchase or acquire shares of Common Stock during the 180-day period following the effective date of a registration statement or offering statement of the Company filed under the Securities Act.

**Fully Paid and Non-assessable**

All outstanding Shares are, and the Shares to be outstanding upon completion of this Offering will be, when issued and paid for, duly authorized, validly issued, fully paid and non-assessable.

**Changes in Authorized Number**

Subject to the rights of the holders of any outstanding series of Preferred Stock, the number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares then outstanding) by the affirmative vote of the holders of a majority of the voting power of all outstanding shares of our capital stock entitled to vote thereon, without a separate class vote by the holders of Common Stock, notwithstanding Section 242(b)(2) of the DGCL.

The Board is also authorized, subject to applicable law and the Second Certificate of Incorporation, to establish additional series of Preferred Stock, to fix the number of shares constituting any such series, and to determine the designations, powers, preferences and rights of each such series (and any qualifications, limitations or restrictions thereon) by filing appropriate certificates of designation.

**Limitations on Liability and Indemnification of Officers and Directors**

Delaware law authorizes corporations to limit or eliminate (with a few exceptions) the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors' fiduciary duties as directors. Our Second Certificate of Incorporation include a provision that eliminate, to the extent permitted by the Delaware law, the personal liability of directors for monetary damages for breach of fiduciary duty as a director. Additionally, our bylaws include provisions that eliminate, to the extent allowable under Delaware law, the personal liability of directors or officers for monetary damages for actions taken as a director or officer, as the case may be.

Our bylaws also provide that we must indemnify and advance reasonable expenses to our directors and officers to the fullest extent permitted by Delaware law. We are also expressly authorized to carry directors' and officers' insurance for our directors, officers, employees and agents for some liabilities. We currently maintain directors' and officers' insurance, covering liabilities that may be incurred by directors and officers in the performance of their duties.

The limitation of liability and indemnification provisions in our Second Certificate of Incorporation and bylaws, as applicable may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent that, in a class action or direct suit, we pay the costs of settlement and damage awards against directors and officers pursuant to the indemnification provisions in our Second Certificate of Incorporation and bylaws.

There is currently no pending litigation or proceeding involving any of the directors, officers, or employees for which indemnification is sought.

**2017 Stock Option Plan**

On November 28, 2017, our Board adopted and our stockholders approved our 2017 Stock Option Plan. The 2017 Stock Option Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary). Our Board is the administrator of the 2017 Stock Option Plan.

As of December 29, 2025, 243,189,700 options to purchase shares of Series B Common Stock have been issued pursuant to stock option award agreements under the 2017 Stock Option Plan, with exercise prices ranging from $0.02 per share to $3.70 per share. In November 2025, the Board and our stockholders approved the termination of the 2017 Plan and adoption of the 2025 Plan, which replaces the 2017 Stock Option Plan for all new equity compensation awards. All of the remaining shares available for future grants under the 2017 Stock Option Plan have been transferred to the new 2025 Plan.

 **2025 Equity Incentive Plan**

On October 20, 2025, our stockholders approved our 2025 Plan, which became effective on the Effective Date. The 2025 Plan provides for the grant of incentive stock options, non-statutory stock options, restricted stock and restricted stock awards to our employees (and employees of any of our parent or majority-owned subsidiary), officers, directors, consultants, advisors, and other service providers as determined by the Board or compensation committee. The Board is the administrator of the 2025 Plan.

The 2025 Plan does not affect or modify awards currently outstanding under the 2017 Stock Option Plan, which will continue to govern any outstanding options and awards granted pursuant to the 2017 Stock Option Plan until exercised, forfeited, settled, or expired.

The fair market value of each option granted is estimated in good faith by the Board to be the fair market value of a share of Series B Common Stock on such day (which determination shall, to the extent applicable, be made in a manner that complies with Section 409A of the Code), and such determination shall be conclusive and binding for all purposes.

As of December 29, 2025, 42,186,380 shares of Series A Common Stock remain available for future grants under the 2025 Plan. As of the date hereof, no options to purchase shares of Series A Common Stock have been issued.

**Transfer Agent and Registrar**

The transfer agent and registrar for the Shares to be issued pursuant to this Offering Statement will be DealMaker Transfer Agent LLC, an agent registered pursuant to Section 17A(c) of the Exchange Act.

**ABSENCE OF** **PUBLIC MARKET**

No public market has developed nor is expected to develop for our shares of Common Stock, and in the near future we do not intend to list our shares of Common Stock on a national securities exchange or interdealer quotation system. (See Risk Factors starting on page 5.)

**DIVIDEND POLICY**

We plan to retain any earnings from future revenues for the foreseeable future for our operations. We have never paid any cash dividends on our shares of Common Stock and do not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay cash dividends will be at the sole discretion of our Board and will depend on our financial condition, operating results, capital requirements and such other factors as our Board deems relevant.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a Regulation A+ Pre-Qualification Amendment No. 1 to the Offering Statement on Form 1-A under the Securities Act with respect to the Shares of Common Stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the shares of Common Stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. The SEC maintains an Internet website that contains reports and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

**LEGAL** **MATTERS**

We have retained Greenberg Traurig, P.A. to advise us in connection with the preparation of this Offering Circular, the Subscription Agreement and any other documents related thereto. Greenberg Traurig, P.A. has not been retained to represent the interests of any stockholder in connection with this offering. All prospective investors that are evaluating or purchasing Shares should retain their own independent legal counsel to review this Offering Circular, the Subscription Agreements and any other documents and matters related whatsoever to this Offering, and to advise them accordingly.

**INDEPENDENT AUDITORS**

Our interim financial statements (unaudited) for the six months ended June 30, 2025, included in this Offering Circular, have been prepared by Alice CPA, an independent registered public accounting firm ("Alice CPA"). Our financial statements as of December 31, 2024 and 2023, and for each of the two years in the period ended December 31, 2024 and 2023, included in this Offering Circular, have been audited by Alice CPA as stated in their report appearing herein and elsewhere in this Offering Circular. Such financial statements have been included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

**INDEX TO FINANCIAL** **STATEMENTS**

---

| | |
|:---|:---|
|  | <u>Page</u> |
| **Interim Financial Statements (Unaudited) as of June 30, 2025 and December 31, 2024 and for the six months ended June 30, 2025 and 2024** |  |
| [Independent Account's Review Report](#a_001) | [F-3](#a_001) |
| [Balance Sheets](#a_002) | [F-4](#a_002) |
| [Statements of Operations](#a_003) | [F-5](#a_003) |
| [Statements of Changes in Stockholders' Equity (Deficit)](#a_004) | [F-6](#a_004) |
| [Statements of Cash Flows](#a_005) | [F-7](#a_005) |
| [Notes to Interim Financial Statements](#a_006) | [F-8 – F-23](#a_006) |

---

---

| | |
|:---|:---|
| **Audited Financial Statements as of December 31, 2024 and 2023, and for the years then ended** |  |
| [Independent Accountant's Audit Report](#pra_001) | [F-26](#pra_001) |
| [Balance Sheets](#pra_002) | [F-28](#pra_002) |
| [Statements of Operations](#pra_003) | [F-29](#pra_003) |
| [Statements of Changes in Stockholders' Equity (Deficit)](#pra_004) | [F-30](#pra_004) |
| [Statements of Cash Flows](#pra_005) | [F-31](#pra_005) |
| [Notes to Financial Statements](#pra_006) | [F-32 – F-44](#pra_006) |

---

**Immersed Inc.**

(a Delaware Corporation)

Interim Financial Statements (Unaudited)

As of June 30, 2025 and December 31, 2024

and for the six months ended June 30, 2025 and June 30, 2024

Reviewed by

![](tm2528799d3_1aimg01.jpg)

Alice.CPA LLC

A New Jersey CPA Company

![](tm2528799d3_1aimg02.jpg)

Independent Accountant's Review Report

December 18, 2025

To: Board of Directors of Immersed Inc.

Re: Interim Period June 30, 2025—Financial Statement Review

Financial Review of the Financial Statements

We have reviewed the accompanying financial statements of Immersed Inc., which comprise the balance sheets as of June 30, 2025, and the related statements of income, changes in stockholders' equity, and cash flows for the six-month period then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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.

Accountant's Responsibility

Our responsibility is to conduct the review engagements in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

We are required to be independent of Immersed Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our reviews.

Accountant's Conclusion

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America.

/s/ Alice.CPA LLC

Alice.CPA LLC

Robbinsville, New Jersey

December 18, 2025

![](tm2528799d3_1aimg03.jpg)

Immersed Inc.

Balance Sheet

As of the interim period ended June 30, 2025 and the year

ended December 31, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 <br> (Unaudited) | December 31, 2024 <br> (Audited) |
| ASSETS |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash in bank | $372274 | $242490 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 2540 | 114314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other assets | 46930 | 312117 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Digital Assets, net | 2642 | 2642 |
| Total Current Assets | 424386 | 671563 |
| Non-Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 30831 | 40089 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 197809 | 199132 |
| Total Non-Current Assets | 228640 | 239221 |
| TOTAL ASSETS | $653026 | $910784 |
| LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $5111273 | $5558992 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses | 859938 | 740656 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued interest payable | 390613 | 198531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 2751587 | 3025713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; vProperty deposits |  | 73391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Merchant cash advances, net | 404910 | 295350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loans payable, net | 232176 | 195854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Note payable - related party | 62000 | 177000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other accrued liabilities | 73578 | - |
| Total Current Liabilities | 9886075 | 10265487 |
| Non-Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Convertible notes payable | 6553466 | 4599300 |
| Total Liabilities | 16439541 | 14864787 |
| Stockholders' Equity/(Deficit): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock, $0.00001 par value, 750,890,349 shares authorized as of June 30, 2025 and December 31, 2024 as restated, 116,434,240 shares issued and outstanding as of June 30, 2025 and December 31, 2024 | 1164 | 1164 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Series 1 Preferred stock, $0.00001 par value, 166,305,280 shares authorized as restated, 166,305,280 shares issued and outstanding, liquidation preference of $34,184,635, as of June 30, 2025 and December 31, 2024 | 1663 | 1663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 17461267 | 17417561 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (33250609) | (31374391) |
| Total Stockholders' Equity/(Deficit) | (15786515) | (13954003) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY/(DEFICIT) | $653026 | $910784 |

---

All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025**.** The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Income Statement

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025<br>(Unaudited) | June 30, 2024<br>(Unaudited) |
| Revenues | 493936 | 224180 |
| Cost of revenues | (56779) | (81332) |
| Gross profit | 437157 | 142848 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administration expenses | 492594 | 1051253 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AR/VR product expenses | 1084126 | 5812832 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketing and advertising | 277291 | 31852 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Digital asset impairment gains, net |  | (1900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 89591 | 218445 |
| Total Operating Expenses | 1943602 | 7112482 |
| Loss from Operations | (1506445) | (6969634) |
| Other Income (Expenses): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other income | 73391 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (442554) | (146554) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gain (Loss) on disposal of digital assets, property and equipment | (610) | 3812 |
| Total Other Income (Expenses) | (369773) | (142742) |
| Net loss | $(1876218) | $(7112376) |
| Weighted average common stock outstanding - basic and diluted | 116434240  | 116036140  |
| Net loss per share - basic and diluted | $(0.02) | $(0.06) |

---

All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025**.** The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Statement of Changes in Stockholders' Equity

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | Series 1 Preferred stock | Series 1 Preferred stock | | | |
|  | <br>Shares | Value<br>($ par) |<br>Shares | Value<br>($ par) |<br>Additional Paid<br>in Capital |<br>Accumulated<br>Deficit |<br>Total Stockholders'<br>Equity |
| Balance as of December 31, 2023 (Audited) | 116000900 | $1160 | 166305280 | $1663 | $17181606 | $(17105062) | $79367 |
| Issuance of common stock upon exercise of stock options | 17120 |  |  |  | 702 |  | 702 |
| Issuance of common stock for services | 50380 |  |  |  |  |  |  |
| Stock-based compensation-stock options |  |  |  |  | 144312 |  | 144312 |
| Net loss | - | - | - | - | - | (7112376) | (7112376) |
| Balance as of June 30, 2024 (Unaudited) | 116068400 | $1160 | 166305280 | $1663 | $17326620 | $(24217438) | $(6887995) |
| Issuance of common stock upon exercise of stock options | 365840 | 4 |  |  | 14996 |  | 15000 |
| Stock-based compensation-stock options |  |  |  |  | 75945 |  | 75945 |
| Net loss | - | - | - | - | - | (7156953) | (7156953) |
| Balance as of December 31, 2024 (Audited) | 116434240 | $1164 | 166305280 | $1663 | $17417561 | $(31374391) | $(13954003) |
| Stock-based compensation-stock options |  |  |  |  | 34386 |  | 34386 |
| Issuance of common stock for services |  |  |  |  | 9320 |  | 9320 |
| Net loss | - | - | - | - | - | (1876218) | (1876218) |
| Balance as of June 30, 2025 (Unaudited) | 116434240 | $1164 | 166305280 | $1663 | $17461267 | $(33250609) | $(15786515) |

---

All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025. The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Statement of Cash Flows

For the Six Months Ended June 30, 2025 and June 30, 2024

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 <br>(Unaudited) | June 30, 2024 <br>(Unaudited) |
| Cash Flows from Operating Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(1876218) | $(7112376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 18767 | 27049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt expense | 1860 | 6450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 34386 | 144312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock issued for services | 9320 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discounts on convertible notes payable | 13490 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discounts on merchant cash advances and loans payable | 187104 | 86404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount on operating lease liability |  | 6547 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 610 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Digital asset impairment losses (gains on sale), net |  | (1900) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in accounts receivable | 109914 | 247122 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in prepaid expenses and other assets | 265187 | (66703) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase)/decrease in operating lease right-of-use asset |  | 196263 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in accounts payable | (447718) | 2241191 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in accrued expenses and interest | 311364 | 318752 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in deferred revenue | (274126) | 1015980 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in operating lease liability |  | (188657) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in vProperty deposits | (73391) | (12309) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase/(decrease) in other current liabilities | 73578 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used in Operating Activities | (1645873) | (3091662) |
| Cash Flows from Investing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible assets | (6390) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of digital assets |  | 8284 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment | (3167) | (12280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of property and equipment | 760 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Used in Investing Activities | (8797) | (3996) |
| Cash Flows from Financing Activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 1940676 | 1000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of notes payable | (115000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from merchant cash advances | 432000 | 525000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of merchant cash advances | (481740) | (223468) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loans payable | 132900 | 337600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of loans payable | (124382) | (105428) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock |  | 702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Cash Provided by Financing Activities | 1784454 | 1534406 |
| Net change in cash in bank | 129784 | (1561252) |
| Cash in bank at beginning of period | 242490 | 1589997 |
| Cash in bank at end of period | $372274 | $28745 |
| Supplemental Disclosure of Cash Flow Information |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest | $- | $- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |

---

The accompanying footnotes are an integral part of these financial statements.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

NOTE 1 – NATURE OF OPERATIONS

Immersed Inc., previously known as AraJoy Inc., (the "Company"), was incorporated on January 4, 2017 under the laws of the State of Delaware. Effective November 29, 2017, the Company amended its certificate of incorporation to change its corporate name from AraJoy Inc. to Immersed Inc.

The Company is a software company providing virtual reality offices for remote teams and individuals. The Company's technology is available on the following platforms: Facebook/Meta Quest, HTC, Pico, Apple, and planning to expand onto other platforms in the future.

During 2023, the Company began the development of Visor, its own work-optimized spatial computing AR/VR headset. The Company announced Visor in August 2023 and started pre-orders in September 2023, with initial deliveries of Visor beginning in 2025 and targeting mass production in 2026.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of the significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Basis of Accounting

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("US GAAP"). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Significant estimates used in the preparation of the accompanying financial statements include recording of depreciation and amortization, digital assets impairment gains/losses, collectible valuation of accounts receivable and the estimate of valuation of stock-based compensation.

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.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Concentration of Credit Risk

The Company maintains its cash with financial institutions located in the United States of America, which it believes to be credit worthy. 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. The Company has not experienced any losses for balances in excess of federally insured limits.

Going Concern

The accompanying financial statements have been prepared using US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

The Company sustained net losses amounting to $1,876,218 and $7,112,376 for the six-month periods ended June 30, 2025 and 2024, respectively. It has a working capital deficit of $9,461,689 and an accumulated deficit of $33,250,609 as of June 30, 2025. The Company also reported negative cash flows from operating activities of $1,645,873 and $3,091,662 for the six-month periods ended June 30, 2025, and 2024, respectively. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans to mitigate the conditions and events that raise substantial doubt about the Company's ability to continue as a going concern include immediate efforts to raise additional funds through both a private capital raise and a public crowdfunding campaign, as well as plans to increase revenue by hiring sales staff and aggressively marketing current and future product offerings. The Company's ability to meet its obligations as they become due is dependent upon its ability to generate sufficient cash flow from operations and/or obtain additional external capital financing. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Cash and Cash Equivalents

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. The Company's cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of June 30, 2025 and December 31, 2024, the Company's cash in bank balance has exceeded federally insured limits by $122,274 and $0, respectively. As of June 30, 2025, and December 31, 2024, the Company held cash balances at Silicon Valley Bank, which carries a credit risk that deposits may not be collectible or fully liquid. The Company has not experienced any losses through the date when the financial statements were available to be issued.

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. As of June 30, 2025 and December 31, 2024, the Company held cash balances at Silicon Valley Bank, which carried a credit risk that deposits may not be collectible or fully liquid.

Accounts Receivable

Accounts receivables are carried at their estimated collectible amounts and are periodically evaluated for collectability based on past credit history with customers and other factors. Provisions for losses on accounts receivable are determined based on loss experience, known and inherent risk in the account balance and current economic conditions. As of June 30, 2025, and December 31, 2024, management considers its accounts receivable as fully collectible and no allowance for credit losses has been recorded.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

For the six-month periods ending June 30, 2025 and 2024, the Company wrote off $1,860 and $6,450 of its accounts receivable as bad debt expense.

Prepaid Expenses

Prepaid expenses include engineering consulting service fees and subscription fees for periods after June 30, 2025, and December 31, 2024.

Digital Assets

During the period ended June 30, 2025 and December 31, 2024, the Company held a minimal amount of Ethereum and USDC through the sale of Immersed Virtual Property ("vProperty") in prior years. See deferred revenue accounting policy for additional information on deposits held from these vProperty sales.

The Company accounts for its digital assets, which are comprised solely of Ethereum and USDC, as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") 350, *Intangibles-Goodwill and Other*. The Company's digital assets are initially recorded at cost and assessed for impairment based on observable market prices in accordance with ASC 820.

Prior to 2024, the Company's activities included the acquisition, sale, and refunding of Ethereum in connection with its discontinued vProperty project, resulting in gains and impairment losses on digital assets.

During 2024, the Company reversed previously recognized digital asset impairment losses of $1,895 and recognized an additional gain of $4,064 from the exchange of Ethereum for USDC. No additional gain or loss was recorded on digital assets during the period January to June 2025. As of December 31, 2024, and June 30, 2025, the Company held approximately $6 in Ethereum and $2,635 in USDC, with no changes to these balances during the six-month period ended June 30, 2025.

Property and Equipment

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. 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 the income statement. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of assets which is 3 to 7 years.

Property and equipment as of June 30, 2025, and December 31, 2024, were as follows:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Equipment | $111681 | $115602 |
| Furniture and fixture | 26511 | 28019 |
|  | 138192 | 143621 |
| Less: accumulated depreciation | (107361) | (103532) |
| Total property and equipment, net | $30831 | $40089 |

---

Depreciation expense of $11,054 and $19,426 was recorded for the six-month periods ended June 30, 2025 and 2024, respectively.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

For the six-month periods ended June 30, 2025 and 2024, the Company disposed property and equipment with carrying amount of $1,370 and $213, received $760 and $0 in proceeds, and recognized $610 and $213 as loss on disposals of property and equipment in the statements of operations, all respectively.

Intangible Assets

During the six months ended June 30, 2025, the Company purchased two domain names. As of June 30, 2025, the Company has capitalized a total of $235,075 in domain names. All domain names capitalized are amortized over the length of 15 years. Amortization expense for the six-month periods ended June 30, 2025 and 2024 was $7,713 and $7,623, respectively.

Impairment of Long-Lived Assets

The management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the management assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the management recognizes an impairment loss based on the excess of the carrying amount over the fair value of the Company's long-lived assets. The Company did not recognize any impairment losses on its property and equipment and intangibles assets during the six-month period ended June 2025 and the year ended December 31, 2024.

Convertible Instruments

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in preferred shares.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash, accounts receivable, digital assets, accounts payable, accrued expenses and convertible notes payable.

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

As of June 30, 2025, and December 31, 2024, the carrying amounts of the Company's financial assets and liabilities reported in the balance sheets approximate their fair value.

Revenue Recognition

ASC Topic 606, *Revenue from Contracts with Customers* establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 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. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted on January 1, 2019 and retroactively applied to the periods presented.

The Company enters monthly and yearly subscription plans with the customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. The Company recognizes revenue ratably over the term of the agreement, as the Company's performance obligation is satisfied over time.

During the period ended June 30, 2025, the Company recognized software subscription revenue totaling $200,594 and contract services revenue totaling $293,342. These amounts are included in revenues in the accompanying statements of operations.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

Deferred Revenue

Deferred revenue consists of the following as of June 30, 2025, and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Subscriptions | 52829 | 50168 |
| Visor pre-order and visor plus deposits | 2698758 | 2975545 |
| Total deferred revenue | $2751587 | $3025713 |

---

*Subscriptions*

Deferred revenue as of December 31, 2024, and June 30, 2025, pertains to subscription payments collected but not yet earned for the Immersed virtual reality application annual subscriptions. The Company expects to recognize the deferred revenue balance as of December 31, 2024, in 2025, and the deferred revenue balance as of June 30, 2025, over the period from 2025 through 2026, as the related service obligations are satisfied.

*Visor Pre-Order Deposits*

During 2023, the Company began development of its work-focused AR/VR headset, Visor, and commenced accepting pre-order deposits in September 2023. Additional pre-order deposits were received during 2024 and through mid-2025. Pre-order deposits will be recognized as revenue when the related orders are fulfilled.

vProperty Deposits

During 2022, the Company created Immersed Virtual Property ("vProperty") and received Ethereum deposits from customers for vProperty. The deeds to the virtual property were in the form of non-fungible tokens (NFT's).

In 2023, the Company discontinued the vProperty project to refocus on spatial computing, and no vProperty was delivered to customers. Customers were notified of the refund process and were required to return their vProperty NFTs in order to receive a refund. As customers returned their vProperty deeds, the Company refunded deposits in Ethereum to customers from 2023 through the end of 2024. The remaining deposit balances were presented as vProperty deposits on the balance sheets.

As of December 31, 2024, vProperty deposits totaled 51 Ethereum valued at $73,391. During the period ended June 30, 2025, the Company recognized $73,391 in other income, pertaining to unclaimed vProperty deposits following the cancellation of the project and conclusion of the refund process. As of June 30, 2025, the vProperty deposits had a balance of $0.

Cost of Revenues

Cost of revenue primarily includes the direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers and storage costs and supplies. The cost of revenues also includes the direct cost of any merchandise sold.

Marketing and Advertising Expense

Marketing and advertising expenses are expensed as incurred.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

AR/VR Product Expenses

AR/VR product expenses are expensed as incurred and include expenses related directly to producing the Immersed virtual reality (AR/VR) software application and products accessed within it. Also included are expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

Stock Based Compensation

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method.

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

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

Income Taxes

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will be realized.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements. The Company has determined that there are no material uncertain tax positions.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

Net Loss per Share

Net earnings or loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of June 30, 2025 and 2024, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of June 30, 2025 and 2024 consist of outstanding options (Note 4).

Recent Accounting Pronouncements

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

NOTE 3 – DEBTS

Merchant Cash Advances

During 2024, the Company entered into multiple agreements with the merchant cash advance providers.

In March 2024, the Company received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000. The Company recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan matures in March 2025 and carries an interest rate of 35% per annum. The loan was paid in full in March 2025.

On March 25, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. The Company recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, the Company entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. The Company recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan is being repaid at 6%, which is being deducted automatically from the Company's bank account until the total payments required are made. The loan was paid in full in April 2025.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

On June 4, 2024, the Company entered into a short-term agreement with RedStone Advance totaling $125,000. Total weekly required payments are $3,122 for the whole term of the loan. The loan was repaid in November 2024.

On September 27, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on a loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made. The loan was paid in full in March 2025.

On October 1, 2024, the Company entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of December 31, 2024, the Company has an outstanding balance of $295,350, net of unamortized discount of $78,735.

During 2025, the Company entered into additional agreements with merchant cash advance providers:

On March 4, 2025, the Company entered into a short-term agreement with Fundfi Merchant Funding, LLC totaling $454,530. Total weekly required payments are $13,369 for the whole term of the loan. The Company recorded a discount on the loan amounting to $127,530, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made.

On May 12, 2025, the Company entered into a short-term agreement with Cedar Advance LLC totaling $147,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $42,000, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 30% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of June 30, 2025, the Company has an outstanding balance of $404,910, net of unamortized discount of $88,965. Interest expense recognized, for the six-month periods ended June 30, 2025 and 2024, on these loans amounted to $180,660 and $77,778, respectively.

Loans Payable

During 2024, the Company entered into multiple loan agreements.

In March 2024, the Company received its first loan from Shopify totaling $270,000. The Company recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of the Company's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by the Company's balances on its Shopify account.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

On May 13, 2024, the Company received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. The Company recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, the Company received a second loan from Shopify totaling $75,000. The Company recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by the Company's balances on its Shopify account.

On October 15, 2024, the Company received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. The Company recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loan. The loan matures in April 2026 and carries an interest rate of 8% per annum. The loan was paid in full in February 2025.

As of December 31, 2024, the Company has a total outstanding balance of $195,854, net of unamortized discount of $32,087.

On February 18, 2025, the Company received a loan from Stripe Capital, a financial institution, for a total principal of $132,900. The Company recorded a discount on the loan amounting to $14,220, which is being amortized to interest expense over the term of the loan. The loan matures in August 2026 and carries an interest rate of 7.1% per annum.

As of June 30, 2025, the Company had a total outstanding balance of $232,176, net of unamortized discount of $18,503. Interest expense from the amortization of loan discount for the six-month periods ended June 30, 2025 and 2024, amounted to $27,803 and $8,626, respectively.

Notes Payable – Related Party Liabilities

On July 11, 2024, the Company entered into multiple promissory note agreements with related parties, including the Company's CEO, for a total principal amount of $420,000. The notes bear interest at 10% per annum, with all principal and accrued interest due earlier of July 11, 2025, or in the event of default, which includes voluntary and involuntary proceedings. As of June 30, 2025 and December 31, 2024, the Company has an outstanding principal of $62,000 and $177,000, respectively.

Interest expense recognized for the six-month period ended June 30, 2025 on these notes at 10% per annum amounted to $21,117, of which $9,514 remained accrued and outstanding on June 30, 2025.

Convertible Notes Payable

In August 2023, the Company issued a series of convertible notes for a total principal of $450,000 with a 20% discount. The notes bear interest of 8% per annum with all principal and interest due and payable on the earlier of: (a) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date") and (b) in the events of default, which includes voluntary and involuntary proceedings.

In May 2024, the Company issued a single convertible note for a total principal of $1,000,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

In July 2024, the Company issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, the demand which shall not be made prior to July 2026, or b) in the events of default, which includes voluntary and involuntary proceedings.

In November 2024, the Company issued a single convertible promissory note for a total principal of $1,000,000 with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In January 2025, the Company issued a single convertible note for a total principal of $50,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to January 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings.

Between February and May 2025, the Company also issued a series of convertible notes via Wefunder for a total principal of $1,754,734, of which $240,000 includes notes with a 10% discount. The notes bear an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to February 2027 for notes issued in February 2025, not prior to March 2027 for those issued in March 2025, not prior to April 2027 for those issued in April 2025, and not prior to May 2027 for those issued in May 2025 or (b) in the events of default, which includes voluntary and involuntary proceedings.

In June 2025, the Company issued a single convertible note for a total principal of $250,000, with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of: (a) five days after the receipt of demand for payment, which demand shall not be made prior to June 2028, or (b) in the events of default, which includes voluntary and involuntary proceedings.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Company's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing and (iii) in the case of other liquidity event, the aggregate fair market value of the Company's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense recognized for the six-month periods ended June 30, 2025 and 2024 amounted to $212,974 and $26,400, respectively, all of which remained accrued and outstanding as of June 30, 2025 and December 31, 2024.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

The Company analyzed the notes for beneficial conversion features and concluded that no beneficial conversion feature discount should be recorded until the contingency of a qualified equity financing is resolved. As no notes had been repaid or converted under the conversion terms, the outstanding principal balances were $6,654,034 and $4,599,300 as of June 30, 2025, and December 31, 2024, respectively. The discount on convertible loan was $100,568 and $0 as of June 30, 2025 and December 31, 2024, respectively.

NOTE 4 – STOCKHOLDERS' EQUITY

Capital Structure (Restated for Stock Split)

During December 2025, the Company amended and restated its articles of incorporation (the "Amended Articles") and effected a 20-for-1 stock split of its preferred and common stock. As a result, each share of preferred stock and common stock issued and outstanding was split into 20 shares. The number of authorized shares was also increased proportionally. The par value per share remained unchanged.

All share and per-share data presented in the financial statements and notes have been adjusted retroactively to reflect this stock split for all periods presented.

During October 2023, the Company amended and restated its articles of incorporation (the "Amended Articles"). The Amended Articles authorized 166,305,280 shares of preferred stock, designated as Series 1 Preferred Stock, and 750,890,349 shares of common stock, both $0.00001 par value per share (post-split).

As of June 30, 2025, and December 31, 2024, the Company had 166,305,280 shares of preferred stock and 116,434,240 shares of common stock issued and outstanding (post-split).

Preferred Stock (Restated for Stock Split)

The holders of Series 1 Preferred Stock are entitled to various protective provisions and preferences, as defined in the certificate of designation of Series 1 Preferred Stock (the "Agreement"). Holders of Series 1 Preferred Stock are entitled to vote on an as-converted basis with holders of Common Stock. The holders of Series 1 Preferred Stock are entitled to a dilution protected dividend preference over holders of Common Stock, as defined in the agreement. The holders of Series 1 Preferred Stock are entitled to a liquidation preference over holders of Common Stock at the original issuance price ($0.2055535) per share, providing a total liquidation preference of $34,184,635 as of June 30, 2025, and December 31, 2024, or such greater amount as would be payable on an as-converted basis to Common Stock. The Series 1 Preferred Stock are convertible, at the holder's election, into Common Stock at a dilution protected conversion rate that is currently 1:1, which is unaffected by the stock split (as both classes split equally).

Common Stock

On January 9, 2017, the founder was granted 80,000,000 shares of common stock (post-split) which are subject to a 4-year vesting period. Vested common stock issued and outstanding as of June 30, 2025, and December 31, 2024, were 116,434,240 and 116,434,240, respectively (post-split).

During 2024, 382,960 stock options were exercised for $15,702 and converted into 382,960 shares of common stock (post-split).

During 2024, the Company issued 50,380 common stock shares at a price of $0.185 per share (post-split) to the lead investor of its 2023 Wefunder crowd fundraiser.

During 2025, no additional common stock shares were issued.

Stock Options (Restated for Stock Split)

The Company accounts for stock-based compensation under the provisions of Topic 718, Compensation - Stock Compensation, which requires measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee officers based on estimated fair values as of the date of grant. Compensation expense is recognized on a straight-line basis over the requisite service period. The Company has a stock- based employee compensation plan, the 2017 Stock Option Plan (the "Plan"), for which 28,000,000 shares of common stock (post-split) were initially reserved for issuance under the Plan to certain employees. Awards granted under the Plan are made in the form of Incentive Stock Options (ISOs).

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

During May 2021, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 37,480,440 to 149,600,000 shares of common stock (post-split). During February 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 149,600,000 to 240,000,000 shares of common stock (post-split). During November 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 240,000,000 to 281,247,960 shares of common stock (post-split). 29,851,900 and 16,711,260 shares (post-split) were available for issuance under the Plan as of June 30, 2025, and December 31, 2024, respectively.

Incentive Stock Options ("ISOs") are granted to certain employees of the Company from time to time. As of June 30, 2025, and December 31, 2024, a total of 21,929,440 and 28,914,600 ISOs, respectively, were issued and outstanding under the Plan (post-split). Vested ISOs totaled 20,191,200 and 25,419,280 as of June 30, 2025, and December 31, 2024, respectively (post-split). During the periods ended June 30, 2025, and December 31, 2024, 6,985,160 and 6,590,260 ISOs, were forfeited, respectively (post-split).

Non-Qualified Stock Options ("NQSOs") are granted to certain employees of the Company from time to time. As of June 30, 2025, and December 31, 2024, a total of 217,753,380 and 223,908,860 NQSOs, respectively, were issued and outstanding under the Plan (post-split). Vested NQSOs totaled 214,244,440 and 216,404,120 as of June 30, 2025, and December 31, 2024, respectively (post-split). During the periods ended June 30, 2025, and December 31, 2024, 6,155,480 and 8,130,060 NQSOs were forfeited, respectively (post-split).

Outside the Plan, prior to 2020, the Company granted 26,375,680 non-qualified stock options ("NQSOs") with an exercise price of $0.0015 per share (post-split). During the year ended December 31, 2021, the Company granted 25,945,280 NQSOs with an exercise price of $0.041 per share (post-split). NQSOs of 52,320,960 remain outstanding as of June 30, 2025, and December 31, 2024, of which 52,320,960 NQSOs were vested as of June 30, 2025, and December 31, 2024 (post-split).

The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The estimation of the number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company's current estimates, such amounts are recognized as an adjustment in the period in which estimates are revised. In accordance with ASC 718, as a private company, the Company has elected to use a 0% forfeiture rate in calculating its stock compensation expense.

The Company's ISOs and NQSOs typically expire ten years after the grant date and vesting occurs immediately or over a period of four years.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025. A summary of options activities for the six-month periods ended June 30, 2025 and June 30, 2024 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | June 30, 2025 | June 30, 2025 | June 30, 2024 | June 30, 2024 |
|  |<br><br>Options | Weighted<br>Average<br>Exercise<br>Price |<br><br>Options | Weighted<br>Average<br>Exercise<br>Price |
| Balance at beginning of period | 305144420 | $0.037 | 313047860 | $0.037 |
| Granted |  |  |  |  |
| Exercised |  |  | (17120) | $0.041 |
| Forfeited | (13140640) | $0.041 | - | - |
| Outstanding at end of period | 292003780 | $0.037 | 313030740 | $0.036 |
| Exercisable at end of period | 286756600 | $0.037 | 296082600 | $0.036 |
| Intrinsic value of options outstanding at period-end | $43219513 |  | $46317667 |  |
| Weighted average duration (years) to expiration of outstanding options at year-end | 6.29 |  | 7.32 |  |
| Weighted average duration (years) to expiration of exercisable options at year-end | 6.26 |  | 7.24 |  |

---

Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of the Company's common stock, and for stock options, the expected life of the option, and expected stock price volatility. The Company used the Black- Scholes Option Pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The expected life of stock options was estimated using the "simplified method," which is the midpoint between the vesting start date and the end of the contractual term, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock options grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of options grants.

For the six-month periods ended stock-based compensation expense was $34,386 and $144,312, respectively.

As of June 30, 2025 and 2024, there were $169,292 and $513,133, respectively, of costs to be recognized over a weighted-average period of approximately 2.47 years and 1.89 years, all respectively.

NOTE 5 – INCOME TAXES

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which result in taxable or deductible amounts in the future.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

As of June 30, 2025 and December 31, 2024, the Company had net deferred tax assets before valuation allowance of $6,249,649 and $5,951,989, respectively.

The following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Net operating loss carryforward | $6200351 | $5902589 |
| Research and development credits | 50100 | 50100 |
| Depreciation methods | (802) | (700) |
| Deferred tax assets | 6249649 | 5951989 |
| Valuation allowance | (6249649) | (5951989) |
| Net deferred tax assets | - | - |

---

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to taxable losses for the periods ended June 30, 2025 and December 31, 2024, cumulative losses through June 30, 2025, and no history of generating taxable income. Therefore, valuation allowances of $6,249,649 and $5,951,989 were recorded as of June 30, 2025 and December 31, 2024, respectively. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 21.0%. The effective rate is reduced to 0% due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of June 30, 2025 and December 31, 2024, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $29,525,481 and $28,107,567, respectively, which may be carried forward to offset future income.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax position through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception, other than minimum state tax. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2019-2024 tax years remain open to examination.

NOTE 6 – CONTINGENCIES

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations. As of June 30, 2025, and December 31, 2024, the Company has not reported any lawsuit or known plans of litigation by or against the Company.

Immersed Inc.

Notes to the Financial Statements

As of the interim period ended June 30, 2025 (unaudited) and the year

ended December 31, 2024 (audited)

NOTE 7 – SUBSEQUENT EVENTS

The Company opened a Regulation Crowdfunding (Reg CF) in June 2025 and is actively raising capital through a Reg CF campaign via a convertible note with a $300M valuation cap. Additionally, in September 2025, the Company filed a Form 1-A Offering Statement under Regulation A with the SEC to raise up to $25 million in capital. As of the date of these financial statements, the offering has not yet been qualified. There can be no assurance as to if or when the offering will be qualified or the amount of capital that may be raised.

During December 2025, the Company effected a 20-for-1 forward stock split of its common and preferred stock. All share and per-share information for all periods presented in the accompanying financial statements and notes has been retroactively adjusted to reflect the stock split, as if it had occurred at the beginning of the earliest period presented.

Management has evaluated subsequent events through December 18, 2025, the date the financial statements were available to be issued. Based on the management's evaluation, no other material subsequent events requiring adjustment to or disclosure in the financial statements were identified.

**IMMERSED INC.**

**(A Delaware Corporation)**

**AUDITED FINANCIAL STATEMENTS**

**YEARS ENDED DECEMBER 31, 2024 AND 2023**

**Immersed Inc.**

(a Delaware Corporation)

Audited Financial Statements

As of the years ended December 31, 2024 and December 31, 2023

Audited by:

![](tm2528799d3_1aaimg01.jpg)

Alice.CPA LLC

A New Jersey CPA Company

![](tm2528799d3_1aaimg02.jpg)

**Independent Auditor's Report**

December 18, 2025

To: Board of Directors of Immersed Inc.

Attn: Renji Bijoy, CEO

Re: 2024 and 2023 Financial Statement Audit – Immersed Inc.

**Report on the Audit of the Financial Statements**

**Opinion**

We have audited the financial statements of Immersed Inc., which comprise the balance sheets as of December 31, 2024 and December 31, 2023, and the related statements of income, changes in stockholders' equity, and cash flows for the years 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 Immersed Inc. as of December 31, 2024 and December 31, 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audits 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 Immersed Inc. and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. 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 Immersed Inc.'s ability to continue as a going concern.

**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.

![](tm2528799d3_1aaimg03.jpg)

**In performing an audit in accordance with GAAS, we:**

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

&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;· 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 Immersed Inc.'s internal control. Accordingly, no such opinion is expressed.

&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;· Conclude whether, in our judgment, there are conditions or events, considered
in the aggregate, that raise substantial doubt about Immersed Inc.'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.

Sincerely,

/s/ Alice.CPA LLC

Alice.CPA LLC

December 18, 2025

![](tm2528799d3_1aaimg05.jpg)

**Immersed Inc.**

**BALANCE SHEETS**

**December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| **Current Assets** |  |  |
| Cash | $242490 | $1589997 |
| Accounts receivable | 114314 | 625463 |
| Prepaid and other current assets | 312117 | 367815 |
| Digital assets, net | 2642 | 9026 |
| **Total Current Assets** | **671563** | **2592301** |
| Property and equipment, net | 40089 | 64350 |
| Intangible assets, net | 199132 | 214378 |
| Operating lease right-of-use asset, net | - | 337123 |
| **Total Assets** | $**910784** | $**3208152** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| **Current Liabilities** |  |  |
| Accounts payable | $5558992 | $566953 |
| Accrued expenses | 740656 | 200063 |
| Accrued interest | 198531 | 14104 |
| Deferred revenue | 3025713 | 1474585 |
| Operating lease liability, current |  | 337380 |
| vProperty deposits | 73391 | 85700 |
| Merchant cash advances, net | 295350 |  |
| Loans payable, net | 195854 |  |
| Notes payable | 177000 | - |
| **Total Current Liabilities** | **10265487** | **2678785** |
| Convertible notes payable | 4599300 | 450000 |
| **Total Liabilities** | **14864787** | **3128785** |
| **Stockholders' Equity (Deficit)** |  |  |
| Common stock, $0.00001 par value; 750,890,349 and 750,890,349 shares authorized as restated, 116,434,240 and 116,000,900 shares issued and outstanding as of December 2024 and 2023, respectively | 1164  | 1160  |
| Series 1 Preferred stock, $0.00001 par value; 166,305,280 shares authorized as restated, 166,305,280 shares issued and outstanding, liquidation preference of $34,184,635, as of December 2024 and 2023 | 1663  | 1663  |
| Additional paid-in capital | 17420246 | 17184289 |
| Accumulated deficit | (31374391) | (17105062) |
| **Total Stockholders' Equity (Deficit)** | **(13954003)** | **79367** |
| **Total Liabilities and Stockholders' Equity (Deficit)** | $**910784** | $**3208152** |

---

**All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025.** **The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**STATEMENTS OF OPERATIONS**

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Revenues | $659590 | $220413 |
| Cost of revenues | (155331) | (72068) |
| **Gross Profit** | **504259** | **148345** |
| **Operating Expenses** |  |  |
| &nbsp;&nbsp;&nbsp; General and administrative | $1868107 | $1652324 |
| &nbsp;&nbsp;&nbsp; AR/VR product expenses | 12036253 | 3826309 |
| &nbsp;&nbsp;&nbsp; Marketing and advertising | 141919 | 88260 |
| &nbsp;&nbsp;&nbsp; Digital assets impairment gains, net | (1895) | (255318) |
| &nbsp;&nbsp;&nbsp; Professional fees | 273746 | 400213 |
| **Total Operating Expenses** | **14318130** | **5711788** |
| **Loss from Operations** | **(13813871)** | **(5563443)** |
| **Other Income (Expense)** |  |  |
| &nbsp;&nbsp;&nbsp; Other income |  | 203810 |
| &nbsp;&nbsp;&nbsp; Interest income |  | 7932 |
| &nbsp;&nbsp;&nbsp; Interest expense | (457701) | (14104) |
| &nbsp;&nbsp;&nbsp; Gain on disposal of digital assets, property and equipment | 2243 | 58121 |
| **Total Other Income (Expense)** | **(455458)** | **255759** |
| **Net Loss** | $**(14269329)** | $**(5307684)** |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common stock** | **Common stock** | **Series 1 Preferred stock** | **Series 1 Preferred stock** | | | |
|  | **Shares** | **Value** | **Shares** | **Value** |<br>**Additional<br> Paid-in<br> Capital** |<br>**Accumulated<br> Deficit** |<br>**Total<br> Stockholders'<br> Equity<br> (Deficit)** |
| **Balance as of January 1, 2023** | 4641185 | $46 | 8315265 | $82 | $13993016 | $(11797378) | $2195766 |
| 20-for-1 stock split | 88182515 | 882 | 157990015 | 1581 | (2463) |  | 0 |
| **Balance as of January 1, 2023, after stock split** | 92823700 | $928 | 166305280 | $1663 | $13990553 | $(11797378) | $2195766 |
| Issuance of common stock upon exercise of stock options | 11086280 | 111 |  |  | 124871 |  | 124982 |
| Issuance of common stock through WeFunder | 12090920 | 121 |  |  | 2999879 |  | 3000000 |
| Offering costs |  |  |  |  | (150000) |  | (150000) |
| Stock-based compensation - stock options |  |  |  |  | 216303 |  | 216303 |
| &nbsp;&nbsp;&nbsp; Net loss | - | - | - | - | - | (5307684) | (5307684) |
| **Balance as of December 31, 2023** | 116000900 | 1160 | 166305280 | 1663 | 17181606 | (17105062) | 79367 |
| Issuance of common stock upon exercise of stock options | 382960 | 4 |  |  | 15698 |  | 15702 |
| Issuance of common stock through WeFunder | 50380 |  |  |  |  |  |  |
| Stock-based compensation - stock options |  |  |  |  | 220257 |  | 220257 |
| &nbsp;&nbsp;&nbsp; Net loss | - | - | - | - | - | (14269329) | (14269329) |
| **Balance as of December 31, 2024** | 116434240 | $1164 | 166305280 | $1663 | $17417561 | $(31374391) | $(13954003) |

---

**All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025. The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**STATEMENTS OF CASH FLOWS**

**For the Years Ended December 31, 2024 and 2023**

**(Audited)**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| **Cash Flows from Operating Activities** |  |  |
| Net loss | $(14269329) | $(5307684) |
| Adjustments to reconcile net loss to net cash provided by operations: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 48551 | 51347 |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 6686 | 28348 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 220257 | 216303 |
| &nbsp;&nbsp;&nbsp;Amortization of discount on operating lease liability | 8493 | 26238 |
| &nbsp;&nbsp;&nbsp;Amortization of discount on merchant cash advances and loans payable | 236548 |  |
| &nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 1819 | 28 |
| &nbsp;&nbsp;&nbsp;Digital assets impairment gains, net | (1895) | (255318) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 504463 | (640242) |
| &nbsp;&nbsp;&nbsp;Prepaid and other current assets | 55698 | (329700) |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use asset | 337123 | 376634 |
| &nbsp;&nbsp;&nbsp;Other noncurrent assets |  | 70000 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 4992039 | 559228 |
| &nbsp;&nbsp;&nbsp;Accrued expenses and interest | 725020 | 79133 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 1551128 | 1437765 |
| &nbsp;&nbsp;&nbsp;Operating lease liability | (345873) | (368156) |
| &nbsp;&nbsp;&nbsp;vProperty deposits | (12309) | (661396) |
| **Net cash provided by (used in) operating activities** | (5941581) | (4717472) |
| **Cash Flows from Investing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Sale/(purchase) of digital assets | 8279 | 599756 |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | (17280) | (14727) |
| &nbsp;&nbsp;&nbsp;Purchase of intangible assets |  | (200000) |
| &nbsp;&nbsp;&nbsp;Sale of property and equipment | 6417 | 5505 |
| **Net cash used in investing activities** | (2584) | 390534 |
| **Cash Flows from Financing Activities** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from convertible notes payable | 4149300 | 450000 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 420000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of notes payable | (243000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from merchant cash advances | 825000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of merchant cash advances | (735315) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from loans payable | 500900 |  |
| &nbsp;&nbsp;&nbsp;Repayment of loans payable | (335929) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock | 15702 | 3124982 |
| &nbsp;&nbsp;&nbsp;Offering costs | - | (150000) |
| **Net cash used in financing activities** | 4596658 | 3424982 |
| &nbsp;&nbsp;&nbsp;**Net change in cash and cash equivalents** | (1347507) | (901956) |
| Cash at beginning of year | 1589997 | 2491953 |
| **Cash at end of year** | $242490 | $1589997 |
| **Supplemental information** |  |  |
| &nbsp;&nbsp;&nbsp;Interest paid | $- | $- |
| &nbsp;&nbsp;&nbsp;Income taxes paid | $- | $- |

---

**The accompanying footnotes are an integral part of these financial statements.**

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 1 – NATURE OF OPERATIONS**

Immersed Inc., previously known as AraJoy Inc., ("the Company") was incorporated on January 4, 2017 under the laws of the State of Delaware. Effective November 29, 2017, the Company amended its certificate of incorporation to change its corporate name from AraJoy Inc. to Immersed Inc.

The Company is a software company providing virtual reality offices for remote teams and individuals. The Company's technology is available on the following platforms: Facebook/Meta Quest, HTC, Pico, Apple, and planning to expand onto other platforms in the future.

During 2023, the Company began the development of Visor, its own work-optimized spatial computing AR/VR headset. The Company announced Visor in August 2023 and started pre-orders in September 2023, targeting initial deliveries of Visor in mid-2025.

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

This summary of the significant accounting policies of the Company is presented to assist in understanding the Company's financial statements. The financial statements and notes are representations of the Company's management, who is responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

**Basis of Accounting**

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("US GAAP"). Any reference in these notes to applicable guidance is meant to refer to U.S. GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Updates ("ASU") of the Financial Accounting Standards Board ("FASB").

**Use of Estimates**

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Significant estimates used in the preparation of the accompanying financial statements include recording of depreciation and amortization, digital assets impairment gains/losses, collectible valuation of accounts receivable and the estimate of valuation of stock-based compensation.

**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**

The Company maintains its cash with financial institutions located in the United States of America, which it believes to be credit worthy. 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. The Company has not experienced any losses for balances in excess of federally insured limits.

**Going Concern**

The accompanying financial statements have been prepared using US GAAP applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The Company sustained net losses amounting to $14,269,329 and $5,307,684 for the years ended December 31, 2024 and 2023, respectively, has a working capital deficit of $9,593,924 and an accumulated deficit of $31,374,391 as of December 31, 2024. The Company has negative cash flows from operating activities of $5,941,581 and $4,717,472 for the years ended December 31, 2024 and 2023, respectively. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The management's plans to mitigate the conditions and events that raise substantial doubt about the Company's ability to continue as a going concern include immediate plans to raise additional funds to meet obligations through both a private capital raise and a public crowdfunding campaign and to increase revenue through hiring sales staff and aggressively selling current and future product offerings. The Company's ability to meet its obligations as they become due is dependent upon its ability to generate sufficient cash flow from operations to meet its obligations, and/or to obtain additional external capital financing. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as going concern.

**Cash and Cash Equivalents**

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. As of December 31, 2024 and 2023, the Company held cash balances at Silicon Valley Bank, which carried a credit risk that deposits may not be collectible or fully liquid.

**Accounts Receivable**

Accounts receivable are carried at their estimated collectible amounts and are periodically evaluated for collectability based on past credit history with customers and other factors. Provisions for losses on accounts receivable are determined based on loss experience, known and inherent risk in the account balance and current economic conditions. As of December 31, 2024 and 2023, management considers its accounts receivable as fully collectible and no allowance for credit losses has been recorded.

For the years ended December 31, 2024 and 2023, the Company wrote off $6,686 and $28,348 of its accounts receivable as bad debt expense.

**Prepaid Expenses**

Prepaid expenses include engineering consulting service fees, subscription fees and others for periods subsequent to December 31, 2024 and 2023.

**Digital Assets**

The Company held a minimal amount of Ethereum through the sale of vProperty during 2024 and 2023. The deeds to the vProperty are in the form of Non-Fungible Tokens ("NFTs"); see deferred revenue accounting policy for additional information on deposits held from these vProperty sales.

The Company accounts for its digital assets, which are comprised solely of Ethereum, as indefinite-lived intangible assets in accordance with Accounting Standards Codification ("ASC") 350, *Intangibles-Goodwill and Other*. The Company has ownership of and control over its Ethereum and uses a self-custodial wallet to store its Ethereum. The Company's digital assets are initially recorded at cost. Subsequently, they are measured at cost, net of any impairment losses incurred since acquisition.

The Company determines the fair value of its Ethereum on a nonrecurring basis in accordance with ASC 820, *Fair Value Measurement*, based on quoted (unadjusted) prices on the Coinbase exchange, the active exchange that the Company has determined is its principal market for Ethereum (Level 1 inputs). The Company performs an analysis each quarter to identify whether events or changes in circumstances, principally decreases in the quoted (unadjusted) prices on the active exchange, indicates that it is more likely than not that any of the assets are impaired. In determining if an impairment has occurred, the Company considers the lowest price of one Ethereum quoted on the active exchange at any time since acquiring the specific Ethereum held by the Company. If the carrying value of an Ethereum exceeds that lowest price, an impairment loss has occurred with respect to that Ethereum in the amount equal to the difference between its carrying value and such lowest price.

Impairment losses are recognized as Digital assets impairment losses in the Company's statements of operations in the period in which the impairment occurs.

The impaired digital assets are written down to their fair value at the time of impairment and this new cost basis will not be adjusted upward for any subsequent increase in fair value. Gains (if any) are not recorded until realized upon sale, at which point they would be presented net of any impairment losses in the Company's statements of operations. In determining the gain to be recognized upon sale, the Company calculates the difference between the sales price and carrying value of the specific Ethereum sold immediately prior to sale.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

During 2023, the Company acquired 1 additional Ethereum through the sale of vProperty, sold the 363 Ethereum held on February 18, 2023 and recorded a gain of $259,048.

In June 2023, the Company decided to cancel vProperty project due to refocusing on spatial computing. The Company purchased 327 Ethereum to facilitate refunds of the vProperty deposits and refunded 321 Ethereum of the vProperty deposits resulting in a gain on the refund settlements of $58,149. The Company recorded digital asset impairment losses of $3,729 for the year ended December 31, 2023 on the remaining 6 Ethereum held as of December 31, 2023.

During 2024, the Company reversed digital asset impairment losses of $1,895 and recorded an additional gain of $4,064 due to the exchange of Ethereum for another NFT "USDC". As of December 31, 2024, the Company held approximately $6 and $2,636 of Ethereum and USDC, respectively.

The Company may continue to incur significant digital asset impairment losses in the future.

**Property and Equipment**

Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. 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 the income statement. Depreciation is recorded for property and equipment using the straight-line method over the estimated useful lives of assets which is 3 to 7 years.

Property and equipment as of December 31, 2024 and 2023 were as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Equipment | $115602 | $112118 |
| Furniture and fixture | 28019 | 34250 |
|  | 143621 | 146368 |
| Less: accumulated depreciation | 103532 | 82018 |
| Total property and equipment, net | $40089 | $64350 |

---

Depreciation expense of $33,305 and $40,386 was recorded for the years ended December 31, 2024 and 2023, respectively.

**Intangible Assets**

The Company has capitalized purchase fees related to two domain names. As of December 31, 2024, the Company has capitalized a total of $228,685 in domain names. All domain names capitalized are amortized over the length of 15 years. Amortization expense for the years ended December 31, 2024 and 2023 was $15,246 and $10,961, respectively.

**Leases**

The Company recognizes and measures its leases in accordance with ASU 2016-02, *Leases (Topic 842)* ("ASC 842")*.* In accordance with ASC 842, the Company determines if an arrangement contains a lease at inception. Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities, current and noncurrent, on the balance sheet. Lease liabilities are initially recorded at the present value of the lease payments by discounting the lease payments by the discount rate and then recording accretion over the lease term using the effective interest method.

Operating lease classification results in straight-line expense recognition pattern over the lease term and recognized lease expense as a single expense component, which results in amortization of the ROU asset that equals the difference between straight-line lease expense and the expense recorded to related to the lease liability. Operating lease expense is presented under operating expenses, based on the use of the leased asset, on the statement of operations.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The operating lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense is recognized on a straight-line basis over the lease term.

**Impairment of Long-Lived Assets**

The management continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the management assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the management recognizes an impairment loss based on the excess of the carrying amount over the fair value of the Company's long-lived assets. The Company did not have any impairment losses during 2024 and 2023.

**Convertible Instruments**

GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company also records, when necessary, deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the transaction and the effective conversion price embedded in preferred shares.

**Fair Value of Financial Instruments**

The Company's financial instruments consist primarily of cash, accounts receivable, digital assets, accounts payable, accrued expenses and convertible notes payable.

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

As of December 31, 2024 and 2023, the carrying amounts of the Company's financial assets and liabilities reported in the balance sheets approximate their fair value.

**Offering Costs**

The Company complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized as deferred offering costs on the balance sheets. The deferred offering costs are charged to stockholders' equity (deficit) upon the completion of an offering or to expense if the offering is not completed. During the year ended December 31, 2023, the Company incurred $150,000 offering costs.

**Revenue Recognition**

ASC Topic 606, *Revenue from Contracts with Customers* establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 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. No adjustments to revenue recognition were required from the adoption of ASC 606, which was adopted on January 1, 2019 and retroactively applied to the periods presented.

The Company enters into monthly and yearly subscription plans with the customers to provide immersive virtual reality offices where customers can spawn up to five virtual monitors and can collaborate with others in the same virtual space. The Company recognizes revenue ratably over the term of the agreement, as the Company's performance obligation is satisfied over time.

During the year ended December 31, 2023, the Company achieved additional milestones for the Meta (Facebook) grant valued at $200,000. These amounts are included in other income on the statements of operations.

**Deferred Revenue**

Deferred revenue consists of the following as of December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Subscriptions | $50168 | $38599 |
| Visor pre-order and visor plus deposits | 2975545 | 1435986 |
| Total deferred revenue | $3025713 | $1474585 |

---

*Subscriptions*

This pertains to subscription revenue collected but not yet earned for the Immersed virtual reality application annual subscriptions. The Company expects to recognize all deferred revenue for subscriptions in 2025.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

*Visor Pre-Order Deposits*

During 2023, the Company began development of its own work-focused AR/VR headset, Visor, and began taking pre-order deposits in September 2023. Pre-order deposits will be recognized as revenue when orders are ready for fulfillment.

**vProperty Deposits**

During 2022, the Company created Immersed Virtual Property ("vProperty") and was paid a total of 377 Ethereum in deposits for vProperty with a total of $747,096 at 2022. This was presented as vProperty deposits under the current liabilities on the balance sheets.

During 2023, the Company was paid 2 Ethereum in deposits for vProperty valued at $2,338. Furthermore, during 2023, the Company decided to cancel that vProperty project due to refocusing on spatial computing. No vProperty was delivered to customers. As customers returned the vProperty deeds, the Company refunded the vProperty deposits to customers in Ethereum. During 2023, the Company refunded deposits in the amount of 328 Ethereum valued at $663,734 as of the date of the deposits. The remaining balance of vProperty deposits as of December 31, 2023 was 51 Ethereum valued at $85,700.

During 2024, the Company refunded deposits in the amount of 6 Ethereum valued at $12,309 as of the date of the deposits. As of December 31, 2024, the remaining Ethereum held by the Company was exchanged for another NFT, "USDC" in the amount of $2,642. See digital assets accounting policy for additional information regarding digital assets.

**Cost of Revenues**

Cost of revenue primarily includes the direct costs of maintaining the Immersed virtual reality (AR/VR) software application, software subscriptions, hosting, servers and storage costs and supplies. The cost of revenues also includes the direct cost of any merchandise sold.

**Marketing and Advertising Expense**

Marketing and advertising expenses are expensed as incurred. Marketing and advertising expenses consist of the following for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Sponsored events | $85579 | $76680 |
| Content production | 56340 | 11124 |
| Business conference tickets |  | 406 |
| Paid advertisements | - | 50 |
| Marketing and advertising expenses | $141919 | $88260 |

---

**AR/VR Product Expenses**

AR/VR product expenses are expensed as incurred and include expenses related directly to producing the Immersed virtual reality (AR/VR) software application and products accessed within it. Also included are expenses directly related to developing Immersed's work-focused AR/VR headset, Visor. Within the Immersed virtual reality (AR/VR) software application, there are both paid-use and free-use products.

**Stock Based Compensation**

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

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

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

**Income Taxes**

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will be realized.

The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon its evaluation of the facts, circumstances and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy is to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the financial statements. The Company has determined that there are no material uncertain tax positions.

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

**Net Loss per Share**

Net earnings or loss per share is computed by dividing net income or loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2024 and 2023, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of December 31, 2024 and 2023 consist of outstanding options (Note 4).

The following table presents the calculation and reconciliation of basic and diluted net loss per share for the years ended December 31, 2024 and 2023, as retroactively adjusted for the 20-for-1 stock split effected in December 2025. All potentially dilutive securities were excluded from the computation of diluted net loss per share because their effect would have been antidilutive for the periods presented. The methods used to compute diluted net loss per share are described in the Net Loss Per Share note to the financial statements.

---

| | | |
|:---|:---|:---|
| Year Ended December 31 | 2024 | 2023 |
| Net loss (numerator) | $(14269329) | $(5307684) |
| Weighted-average common shares outstanding (post-split) | 116200000 | 116000000 |
| Net loss per share, basic and diluted | $(0.12) | $(0.05) |

---

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 3 – DEBTS**

**Merchant Cash Advances**

During 2024, the Company entered into multiple agreements with the merchant cash advance providers.

In March 2024, the Company received a loan from Ondeck Capital, a financial institution, for a total principal of $150,000. The Company recorded a discount on the loan amounting to $52,500, which is being amortized to interest expense over the terms of the loan. The loan matures in March 2025 and carries an interest rate of 35% per annum.

On March 25, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $7,821 for the whole term of the loan. The Company recorded a discount on the loan amounting to $69,000, which is amortized to interest expense over the term of the loan. The loan was paid in full in October 2024.

On March 26, 2024, the Company entered into a short-term agreement with Superfast Capital totaling $100,000. Total weekly required payments are $3,393 for the whole term of the loan. The Company recorded a discount on the loan amounting to $45,900, which is being amortized to interest expense over the term of the loan. The loan is being repaid at 6% which is being deducted automatically from the Company's bank account until the total required payments are made.

On June 4, 2024, the Company entered into a short-term agreement with RedStone Advance totaling $125,000. Total weekly required payments are $3,122 for the whole term of the loan. The loan was repaid in November 2024.

On September 27, 2024, the Company entered into a short-term agreement with FundFi Merchant Funding totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded discount on loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 25% which is being deducted automatically from the Company's bank account until the total required payments are made.

On October 1, 2024, the Company entered into a short-term agreement with Specialty Capital totaling $150,000. Total weekly required payments are $6,516 for the whole term of the loan. The Company recorded a discount on the loan amounting to $58,500, which is being amortized to interest expense over the term of the loans. The loan is being repaid at a 7% which is being deducted automatically from the Company's bank account until the total required payments are made.

As of December 31, 2024, the Company has an outstanding balance of $295,350, net of unamortized discount of $78,735. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $205,665.

**Loans Payable**

During 2024, the Company entered into multiple loan agreements.

In March 2024, the Company received its first loan from Shopify totaling $270,000. The Company recorded a discount on the loan amounting to $35,100, which is being amortized to interest expense over the term of the loan. The loan is being repaid daily at 17% of the Company's Shopify account's sales proceeds, which is being deducted automatically until the total required payments are made. The loan is secured by the Company's balances on its Shopify account.

On May 13, 2024 the Company received its first loan from Stripe Capital, a financial institution, for a total principal of $67,600. The Company recorded a discount on the loan amounting to $7,436, which is being amortized to interest expense over the term of the loan. The loan matures in November 2025 and carries an interest rate of 7.3% per annum. The loan was paid in full in October 2024.

In September 2024, the Company received a second loan from Shopify totaling $75,000. The Company recorded a discount on the loan amounting to $9,750, which is being amortized to interest expense over the term of the loan. The loan repayment will begin after the first loan is paid in full. The loan is secured by the Company's balances on its Shopify account.

On October 15, 2024 the Company received a loan from Stripe Capital, a financial institution, for a total principal of $88,300. The Company recorded a discount on the loan amounting to $10,684, which is being amortized to interest expense over the term of the loans. The loan matures in April 2026 and carries an interest rate of 8% per annum.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

As of December 31, 2024, the Company has a total outstanding balance of $195,854, net of unamortized discount of $32,087. Interest expense from amortization of loan discount for the year ended December 31, 2024 amounted to $30,883.

**Notes Payable – Related Party Liabilities**

On July 11, 2024, the Company entered into multiple promissory note agreements with related parties of the company, including the Company's CEO, for a total principal amount of $420,000. The notes bear interest of 10% per annum with all principal and interest due and payable on the earlier of; (a) July 11, 2025 or, (b) in the events of default, which include voluntary and involuntary proceedings. As of December 31, 2024, the Company has an outstanding principal of $177,000.

Interest expense for the year ended December 31, 2024 on these notes amounted to $20,300, of which $16,917 remained accrued and outstanding at December 31, 2024.

**Convertible Notes Payable**

In August 2023, the Company issued a series of convertible notes for a total principal of $450,000 with a 20% discount. The notes bear interest of 8% per annum with all principal and interest due and payable on the earlier of: (a) 5 days after the receipt of demand for payment, which demand shall not made prior to August 11, 2025 (the "Maturity Date") and (b) in the events of default, which includes voluntary and involuntary proceedings.

In May 2024, the Company issued a single convertible note for a total principal of $1,000,000 with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipt of demand for payment, which demand shall not be made prior to May 11, 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In July 2024, the Company issued multiple convertible notes for a total principal of $2,149,300, of which $425,000 includes notes with a 10% discount. The note bears an interest of 8% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to July 2026, or b) in the events of default, which includes voluntary and involuntary proceedings.

In November 2024, the Company issued a single convertible promissory note for a total principal of $1,000,000 with a 25% discount. The note bears an interest equal to the prime rate plus 5% per annum with all principal and interest due and payable on the earlier date of; a) five days after the receipts of demand for payment, which demand shall not be made prior to November 2027, or b) in the events of default, which includes voluntary and involuntary proceedings.

In case of liquidity event, which means a change of control, private placement equity financing, direct listing, an initial public offering (IPO) or special purpose acquisition companies (SPAC) merger, the outstanding principal and accrued interest will automatically convert into Company's shares issued in the triggering financing, as applicable. The conversion price per share equal to: (a) (i) in the case of an IPO, the price per share at which conversion shares are sold to the public, (ii) in the case of private placement equity financing, the lowest per share purchase price of the conversion shares issued in such financing and (iii) in the case of other liquidity event, the aggregate fair market value of the Company's equity interest divided by the number of shares constituting the Company equity interest outstanding immediately prior to such liquidity event; in each case multiplied by (ii) the 75-100% discount rate.

Interest expense for the years ended December 31, 2024 and 2023 on these notes amounted to $167,511 and $14,104, respectively, all of which remained accrued and outstanding at December 31, 2024.

The Company analyzed the notes for beneficial conversion features and concluded that no beneficial conversion feature discount should be recorded until resolution of the contingency of the qualified equity financing. As no notes had been repaid nor converted under the conversion terms, the outstanding principal was $4,599,300 and $450,000 as of December 31, 2024 and 2023, respectively.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

**NOTE 4 – STOCKHOLDERS' EQUITY**

 **Capital Structure (Restated for Stock Split)**

During December 2025, the Company amended and restated its articles of incorporation (the "Amended Articles") and effected a 20-for-1 stock split of its preferred and common stock. As a result, each share of preferred stock and common stock issued and outstanding was split into 20 shares. The number of authorized shares was also increased proportionally. The par value per share remained unchanged.

All share and per-share data presented in the financial statements and notes have been adjusted retroactively to reflect this stock split for all periods presented.

During October 2023, the Company amended and restated its articles of incorporation (the "Amended Articles"). The Amended Articles authorized 166,305,280 shares of preferred stock, designated as Series 1 Preferred Stock, and 750,890,349 shares of common stock (post-split), both $0.00001 par value per share.

As of December 31, 2023, the Company had 166,305,280 issued and outstanding shares of preferred stock and 116,000,900 issued and outstanding shares of common stock (post-split).

As of December 31, 2024, the Company had 166,305,280 issued and outstanding shares of preferred stock and 116,434,240 issued and outstanding shares of common stock (post-split).

**Preferred Stock** **(Restated for Stock Split)**

The holders of Series 1 Preferred Stock are entitled to various protective provisions and preferences, as defined in the certificate of designation of Series 1 Preferred Stock (the "Agreement"). Holders of Series 1 Preferred Stock are entitled to vote on an as-converted basis with holders of Common Stock. The holders of Series 1 Preferred Stock are entitled to a dilution protected dividend preference over holders of Common Stock, as defined in the agreement. The holders of Series 1 Preferred Stock are entitled to a liquidation preference over holders of Common Stock at the original issuance price ($0.2055535) per share (post-split), providing a total liquidation preference of $34,184,635 as of December 31, 2024 and 2023, or such greater amount as would be payable on an as-converted basis to Common Stock. The Series 1 Preferred Stock are convertible, at the holder's election, into Common Stock at a dilution protected conversion rate that is currently 1:1, which is unaffected by the stock split (as both classes split equally).

 **Common Stock (Restated for Stock Split)**

On January 9, 2017, the founder was granted 80,000,000 shares of common stock (post-split) which are subject to 4-year vesting period. Vested common stock issued and outstanding as of December 31, 2024 and 2023 were 116,434,240 and 116,000,900, respectively (post-split).

During 2023, 11,086,280 stock options were exercised for $124,982 and converted into 11,086,280 shares of common stock (post-split).

During 2023, the Company undertook an offering of common stock pursuant to a Regulation Crowdfunding offering, raised $3,000,000 and issued 12,090,920 common stock shares at a price of $0.248 (post-split).

During 2024, 382,960 stock options were exercised for $15,702 and converted into 382,960 shares of common stock (post-split).

During 2024, the Company issued 50,380 common stock shares at a price of $0.185 (post-split) to the lead investor of its 2023 Wefunder crowd fundraiser.

**Stock Options** **(Restated for Stock Split)**

The Company accounts for stock-based compensation under the provisions of Topic 718, Compensation - Stock Compensation, which requires measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee officers based on estimated fair values as of the date of grant. Compensation expense is recognized on a straight-line basis over the requisite service period. The Company has a stock-based employee compensation plan, the 2017 Stock Option Plan (the "Plan"), for which 28,000,000 shares of common stock (post-split) were initially reserved for issuance under the Plan to certain employees. Awards granted under the Plan are made in the form of Incentive Stock Options (ISOs). During May 2021, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 37,480,440 to 149,600,000 shares of common stock (post-split). During February 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 149,600,000 to 240,000,000 shares of common stock (post-split). During November 2022, the Board of Director and stockholders of the Company approved the increase in total shares to be reserved for issuance under the Plan from 240,000,000 to 281,247,960 shares of common stock (post-split). 16,711,260 and 9,190,780 shares (post-split) were available for issuance under the Plan as of December 31, 2024 and 2023, respectively.

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

ISOs are granted to certain employees of the Company from time to time. As of December 31, 2024, and 2023, 28,914,600 and 35,880,700 ISOs were issued and outstanding, respectively, under the Plan (post-split). Vested ISOs were 25,419,280 and 25,470,800 as of December 31, 2024 and 2023, respectively (post-split). During the years ended December 31, 2024 and 2023, 6,590,260 and 4,096,840 ISOs were forfeited, respectively (post-split).

NQSOs are granted to certain employees of the Company from time to time. As of December 31, 2024 and 2023, 223,908,860 and 224,846,200 NQSOs were issued and outstanding, respectively, under the Plan (post-split). Vested NQSOs were 216,404,120 and 213,266,640 as of December 31, 2024 and 2023, respectively (post-split). During the years ended December 31, 2024 and 2023, 8,130,060 and 834,240 NQSOs were forfeited, respectively (post-split).

Outside the Plan, prior to 2020, the Company granted 26,375,680 non-qualified stock options ("NQSOs") with an exercise price of $0.0015 per share (post-split). During the year ended December 31, 2021, the Company granted 25,945,280 NQSOs with an exercise price of $0.041 per share (post-split). NQSOs of 52,320,960 remain outstanding as of December 31, 2024 and 2023, of which 52,320,960 NQSOs were vested as of December 31, 2024 and 2023 (post-split).

The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option. The estimation of the number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company's current estimates, such amounts are recognized as an adjustment in the period in which estimates are revised. In accordance with ASC 718, as a private company, the Company has elected to use a 0% forfeiture rate in calculating its stock compensation expense.

The Company's ISOs and NQSOs typically expire ten years after the grant date and vesting occurs immediately or over a period of four years.

All share and per-share amounts have been retroactively adjusted to reflect the 20-for-1 stock split effected in December 2025. A summary of options activities for the years ended December 31, 2024 and 2023 is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2024** | **2023** | **2023** |
|  |<br><br>**Options** | **Weighted**<br>**Average**<br>**Exercise**<br>**Price** |<br><br>**Options** | **Weighted**<br>**Average**<br>**Exercise**<br>**Price** |
| Balance beginning of period | 313047860 | $0.037 | 327880320 | $0.036 |
| Granted | 7199840 | $0.185 | 1184900 | $0.028 |
| Exercised | (382960) | $0.041 | (11086280) | $0.041 |
| Forfeited | (14720320) | $0.107 | (4931080) | $0.041 |
| Outstanding - end of period | 305144420 | $0.037 | 313047860 | $0.037 |
| Exercisable at end of period | 294144360 | $0.037 | 291058400 | $0.036 |
| Intrinsic value of options outstanding at year-end | $45320849 |  | $1249840 |  |
| Weighted average duration (years) to expiration of outstanding options at year-end | 6.80 |  | 7.99 |  |
| Weighted average duration (years) to expiration of exercisable options at year-end | 6.75 |  | 7.60 |  |

---

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions, including the fair value of the Company's common stock, and for stock options, the expected life of the option, and expected stock price volatility. The Company used the Black-Scholes Option Pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The expected life of stock options was estimated using the "simplified method," which is the midpoint between the vesting start date and the end of the contractual term, as the Company has limited historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock options grants. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. For stock price volatility, the Company uses comparable public companies as a basis for its expected volatility to calculate the fair value of options grants.

The stock option issuances were valued using the following inputs for the years ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Risk free interest rate | 0.23% | 3.37% |
| Expected dividend yield | 0.00% | 0.00% |
| Expected volatility | 33.75% | 33.75% |
| Expected life (years) | 7 | 5 |
| Fair value per stock option | $0.065 | $0.010 |

---

As of December 31, 2024 and 2023, there were $239,797 and $572,438, respectively, of costs to be recognized over a weighted-average period of approximately 1.70 years and 2.74 years, respectively.

The fair value of stock options issued during the years ended December 31, 2024 and 2023 was $466,190 and $11,790, respectively.

**NOTE 5 – INCOME TAXES**

Income taxes are accounted for using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which result in taxable or deductible amounts in the future.

As of December 31, 2024 and 2023, the Company had net deferred tax assets before valuation allowance of $5,951,989 and $2,992,850, respectively.

The following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Net operating loss carryforward | $5902589 | $2947668 |
| Research and development credits | 50100 | 50100 |
| Depreciation methods | (700) | (4918) |
| Deferred tax assets | 5951989 | 2992850 |
| Valuation allowance | (5951989) | (2992850) |
| Net deferred tax assets | $- | $- |

---

**Immersed Inc.**

**Notes to the Financial Statements**

**December 31, 2024 and 2023**

**(Audited)**

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required due to taxable losses for the years ended December 31, 2024 and 2023, cumulative losses through December 31, 2024, and no history of generating taxable income. Therefore, valuation allowances of $5,951,989 and $2,992,850 were recorded as of December 31, 2024 and 2023, respectively. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 21.0%. The effective rate is reduced to 0% due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of December 31, 2024 and 2023, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $28,107,567 and $14,036,515, respectively, which may be carried forward to offset future income.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax position through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception, other than minimum state tax. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2019-2024 tax years remain open to examination.

**NOTE 6 – CONTINGENCIES**

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matter will have a material adverse effect on its business, financial condition or results of operations. As of December 31, 2024 and 2023, the Company has not reported any lawsuit or known plans of litigation by or against the Company.

**NOTE 7 – LEASE COMMITMENTS**

In September 2022, the Company entered into a 25-month operating lease agreement for office space, which started in November 2022. The agreement called for a security deposit of $70,000 and monthly payments of $30,527 for the first year, and $31,443 for the remaining 13 months. Additionally, the Company is responsible for $19,148 of the monthly common area maintenance charges. The Company initially recognized an operating lease right-of-use asset and an operating lease liability of $673,673, discounted using the Company's incremental borrowing rate of 5.0% and lease term of 25 months. As of December 31, 2023, the carrying amount of the operating lease right-of-use asset was $337,123, net of accumulated amortization of $367,993 and the carrying amount of operating lease liability was $337,380, net of unamortized interest of $8,493. On November 30, 2024, the lease agreement was fully consummated and was not renewed.

For the years ended December 31, 2024 and 2023, the Company incurred $553,182 and $577,995 of rent expense, respectively.

**NOTE 8 – SUBSEQUENT EVENTS**

The Company opened a Regulation Crowdfunding (Reg CF) in January 2025 and is actively raising capital through a Reg CF campaign via a convertible note with a $200M valuation cap.

During December 2025, the Company effected a 20-for-1 forward stock split of its common and preferred stock. All share and per-share information for all periods presented in the accompanying financial statements and notes has been retroactively adjusted to reflect the stock split, as if it had occurred at the beginning of the earliest period presented.

Management has evaluated subsequent events through December 18, 2025, the date the financial statements were available to be issued. Based on this evaluation, no other material events were identified which require adjustment or disclosure in the financial statement.

**PART III – EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [2.1\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-1.htm) | [Amended and Restated Certificate of Incorporation dated May 13, 2021](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-1.htm) |
| [2.2\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-2.htm) | [Amendment dated November 19, 2021, to the Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-2.htm) |
| [2.3\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-3.htm) | [Amendment dated October 24, 2023, to the Amended and Restated Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-3.htm) |
| [2.4\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-4.htm) | [Certificate of Designation of Series 1 Convertible Preferred Stock dated May 13, 2021](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-4.htm) |
| [2.5\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-5.htm) | [Amendment dated November 19, 2021 to the Certificate of Designation of Series 1 Preferred Stock](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-5.htm) |
| [2.6\*\*](tm2528799d3_ex2-6.htm) | [Second Amended and Restated Certificate of Incorporation dated December 29, 2025](tm2528799d3_ex2-6.htm) |
| [2.7\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-6.htm) | [Bylaws of Immersed Inc. (former AraJoy, Inc.)](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex2-6.htm) |
| [4.1\*\*](tm2528799d3_ex4-1.htm) | [Form of Subscription Agreement](tm2528799d3_ex4-1.htm) |
| [6.1\*](http://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-1.htm) | [Agreement with DealMaker Securities LLC (and affiliates), dated October 28, 2025](http://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-1.htm) |
| [6.2\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-2.htm) | [Advisor Agreement between the Immersed Inc. and Lonsdale Enterprises Inc., dated May 18, 2023](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-2.htm) |
| [6.3\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-3.htm) | [Form of indemnification agreement for directors and officers](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-3.htm) |
| [6.4\*\*](tm2528799d3_ex6-4.htm) | [2017 Stock Option Plan, as amended on September 30, 2019, May 13, 2021, February 1, 2022, November 14, 2022, and October 20, 2025](tm2528799d3_ex6-4.htm) |
| [6.5\*](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-5.htm) | [2017 Form of Stock Option Agreement](https://www.sec.gov/Archives/edgar/data/1817417/000110465925087368/tm259922d1_ex6-5.htm) |
| [6.6\*\*](tm2528799d3_ex6-6.htm) | [2025 Equity Incentive Plan](tm2528799d3_ex6-6.htm) |
| [6.7\*\*](tm2528799d3_ex6-7.htm) | [2025 Form of Stock Option Agreement](tm2528799d3_ex6-7.htm) |
| [6.8\*\*](tm2528799d3_ex6-8.htm) | [Founder Stock Exchange Agreement, dated December 29, 2025](tm2528799d3_ex6-8.htm) |
| [11.1\*\*](tm2528799d3_ex11-1.htm) | [Consent of Independent Auditor](tm2528799d3_ex11-1.htm) |
| [12.1\*\*](tm2528799d3_ex12-1.htm) | [Opinion of Greenberg Traurig, P.A. regarding legality of the securities covered in this Offering](tm2528799d3_ex12-1.htm) |

---

\* Previously filed.

\*\* Filed herewith.

**SIGNATURES**

Pursuant to the requirements of Regulation A, as amended, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing this Offering Statement on Form 1-A and has duly caused this Offering Circular and the correlating Offering Statement to be signed on its behalf, by the undersigned, thereunto duly authorized, in the city of Austin, Texas on this 29<sup>th</sup> day of December 2025.

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

---

| |
|:---|
| **IMMERSED INC.** |
| By: /s/ Renji Bijoy |
| Name: Renji Bijoy<br> Title: Founder and Chief Executive Officer |

---

## Ex1A-2A

**Exhibit 2.6**

**SECOND AMENDED AND RESTATED<br> CERTIFICATE OF INCORPORATION<br> OF IMMERSED INC.**

(Pursuant to Sections 242 and 245 of the<br> General Corporation Law of the State of Delaware)

Immersed Inc., a corporation organization under and by virtue of the provisions of the General Corporation Law of the State of Delaware (the "**DGCL**"),

**DOES HEREBY CERTIFY**:

**FIRST:** The present name of the corporation is Immersed Inc. (the "**Corporation**"). The Corporation was incorporated under the name "AraJoy, Inc." by the filing of its original certificate incorporation (as amended, the "**Original Certificate of Incorporation**") with the Secretary of State of the State of Delaware (the "**Delaware Secretary of State**") on January 4, 2017. The Corporation subsequently changed its name to "Immersed Inc." by filing a certificate of amendment to its certificate of incorporation with the Delaware Secretary of State on November 29, 2017. The Corporation subsequently amended and restated the certificate of incorporation by filing an Amended and Restated Certificate of Incorporation of the Corporation with the Delaware Secretary of State on May 13, 2021 (the "**Amended and Restated Certificate of Incorporation**"). The Corporation filed its Certificate of Designation of Series 1 Convertible Preferred Stock with the Delaware Secretary of State on May 13, 2021, and amended the same by Certificate of Amendment of Certificate of Designation of Series 1 Convertible Preferred Stock on November 22, 2021. The Corporation subsequently amended the Amended and Restated Certificate of Incorporation of the Corporation by filing a certificate of amendment to its Amended and Restated Certificate of Incorporation with the Delaware Secretary of State on October 24, 2023.

**SECOND:** This Second Amended and Restated Certificate of Incorporation (as the same may be amended and/or restated from time to time, the "**Certificate of Incorporation**"), which amends, restates and integrates the provisions of the Amended and Restated Certificate of Incorporation, was duly adopted by the Board of Directors of the Corporation (the "**Board of Directors**") in accordance with the provisions of Sections 242 and 245 of the DGCL and by the written consent of the stockholders of the Corporation in accordance with Section 228 of the DGCL.

**RESOLVED**, that the Amended and Restated Certificate of Incorporation of the Corporation is hereby amended and restated to read in its entirety as follows:

**ARTICLE I**

**NAME**

The name of the Corporation is Immersed Inc.

**ARTICLE II**

**AGENT**

The address of the Corporation's registered office in the State of Delaware is 251 Little Falls Drive, Wilmington, New Castle County, Delaware 19808. The name of its registered agent at such address is Corporation Service Company.

**ARTICLE III**

**PURPOSE**

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the DGCL.

**ARTICLE IV**

**STOCK**

The total number of shares of all classes of capital stock which the Corporation shall have authority to issue is 1,002,569,762, which shall be divided into two classes as follows: (a) 823,569,762 shares of Common Stock, par value $0.00001 per share ("**Common Stock**"), of which (i) 42,186,380 shares shall be designated as Series A Common Stock (the "**Series A Common Stock**"), (ii) 666,332,441 shares shall be designated as Series B Common Stock (the "**Series B Common Stock**"), (iii) 75,833,333 shares shall be designated as Series C Common Stock (the "**Series C Common Stock**"), and (iv) the remaining shall be undesignated; and (b) 179,000,000 shares of Preferred Stock, par value $0.00001 per share ("**Preferred Stock**"), of which (i) 166,305,280 shares shall be designated as Series 1 Convertible Preferred Stock (the "**Series 1 Preferred Stock**"), and (ii) the remaining shall be undesignated.

Notwithstanding any other provision of this Second Amended and Restated Certificate of Incorporation, upon this Second Amended and Restated Certificate of Incorporation of the Corporation becoming effective pursuant to the DGCL (the "**Effective Time**"), each (i) share of common stock of the Corporation, par value $0.00001 per share (the "**Old Common Stock**"), issued and outstanding immediately prior to the Effective Time shall be automatically reclassified as, changed and subdivided into twenty (20) shares of Series B Common Stock, and any stock certificate that, immediately prior to the Effective Time, represented shares of Old Common Stock shall, from and after the Effective Time, automatically and without the necessity of presenting the same for exchange, represent that number of shares of Series B Common Stock as equals the product obtained by multiplying the number of shares of Old Common Stock represented by such certificate immediately prior to the Effective Time by twenty (20), and (ii) each share of Series 1 Preferred Stock issued and outstanding immediately prior to the Effective Time shall be automatically reclassified as and subdivided into twenty (20) shares of Series 1 Preferred Stock, and any stock certificate that, immediately prior to the Effective Time, represented shares of Series 1 Preferred Stock shall, from and after the Effective Time, automatically and without the necessity of presenting the same for exchange, represent that number of shares of Series 1 Preferred Stock as equals the product obtained by multiplying the number of shares of Series 1 Preferred Stock represented by such certificate immediately prior to the Effective Time by twenty (20).

The number of authorized shares of Common Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of all of the then-outstanding shares of the capital stock of the Corporation entitled to vote thereon, irrespective of the provisions of Section 242(b)(2) of the General Corporation Law, and no vote of the holders of Common Stock voting separately as a class shall be required therefor.

The following is a statement of the designations and the powers, preferences and special rights, and the qualifications, limitations or restrictions thereof in respect of each class of capital stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **COMMON STOCK**

Unless otherwise indicated, references to "Sections" or "Subsections" in this Part A of this <u>Article IV</u> refer to Sections and Subsections in this Part A of this <u>Article IV</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>General</u>. The voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the powers, preferences, and special rights of the holders of the Preferred Stock set forth herein. Except as expressly set forth in this <u>Article IV</u> or required by applicable law, shares of Series A Common Stock, Series B Common Stock, and Series C Common Stock shall have the same powers, preferences, and relative, participating, optional, special, or other rights, if any, and the same qualifications, limitations, or restrictions, if any, and be identical in all respects as to all matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Dividend Rights</u>. Subject to the rights of holders of Preferred Stock as to dividends, the 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 Corporation legally available therefor, such dividends as may be declared from time to time by the Board of Directors and available for distribution to the holders of Common Stock; *provided*, *however*, that in the event that such dividends are paid in the form of shares of Common Stock or rights to acquire Common Stock, the holders of shares of Series A Common Stock shall receive shares of Series A Common Stock or rights to acquire shares of Series A Common Stock, as the case may be, the holders of shares of Series B Common Stock shall receive shares of Series B Common Stock or rights to acquire shares of Series B Common Stock, as the case may be, and the holders of shares of Series C Common Stock shall receive shares of Series C Common Stock or rights to acquire shares of Series C Common Stock, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Voting Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Series A Common Stock</u>. Shares of Series A Common Stock are non-voting stock. No holder of shares of Series A Common Stock, as such, shall be entitled to vote on any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), except as required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Series B Common Stock</u>. Each holder of shares of Series B Common Stock shall be entitled to vote on all matters presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), voting together with the holders of Series C Common Stock as a single class, and shall be entitled to one (1) vote for each one (1) share of Series B Common Stock held as of the record date for the determination of the stockholders entitled to vote; *provided*, *however*, that, except as otherwise required by law, holders of shares of Series B Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate of Incorporation that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation or pursuant to the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Series C Common Stock</u>. Each holder of shares of Series C Common Stock shall be entitled to vote on all matters presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), voting together with the holders of shares of Series B Common Stock as a single class, and shall be entitled to ten (10) votes for each one (1) share of Series C Common Stock held as of the record date for the determination of the stockholders entitled to vote; *provided*, *however*, that, except as otherwise required by law, holders of shares of Series C Common Stock, as such, shall not be entitled to vote on any amendment to this Certificate of Incorporation that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to this Certificate of Incorporation or pursuant to the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Liquidation Rights</u>. Subject to the rights of holders of shares of Preferred Stock as to liquidation, in the event of the voluntary or involuntary liquidation, dissolution, distribution of assets, winding up of the Corporation or any Deemed Liquidation Event (as defined below), the holders of shares of Common Stock shall be entitled to share equally, on a per share basis, in all assets of the Corporation of whatever kind available for distribution to the holders of shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Conversion of the Series C Common Stock</u>. Shares of Series C Common Stock shall be convertible into Series B Common Stock, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Optional Conversion</u>. Each outstanding share of Series C Common Stock shall be convertible into one fully paid and nonassessable share of Series B Common Stock at the option of the holder thereof at any time upon written notice to the Corporation. Before any record holder of shares of Series C Common Stock shall be entitled to convert any of such holder's shares of Series C Common Stock into shares of Series B Common Stock, such holder shall deliver an instruction, duly signed at the principal corporate office of the Corporation or of any transfer agent for the shares of Series C Common Stock, and shall give written notice to the Corporation at its principal corporate office of such holder's election to convert the same and shall state therein the name or names in which the shares of Series B Common Stock issuable on conversion thereof are to be registered on the books of the Corporation. The Corporation shall, as soon as practicable thereafter, register on the Corporation's books ownership of the number of shares of Series B Common Stock to which such record holder of shares of Series C Common Stock, or to which the nominee or nominees of such record holder, shall be entitled as aforesaid. Such conversion shall be deemed to have occurred immediately prior to the close of business on the date such notice of the election to convert is received by the Corporation, and the person or persons entitled to receive the shares of Series B Common Stock issuable upon such conversion shall be treated for all purposes as the record holder or holders of such shares of Series B Common Stock as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Automatic Conversion</u>. Each outstanding share of Series C Common Stock shall automatically, without further action by the Corporation or the holder thereof, be converted into one fully-paid, nonassessable share of Series B Common Stock, at the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately prior to the close of business at the principal corporate office of the Corporation on the seventh anniversary of the date of the closing of the Corporation's initial public offering pursuant to an effective registration statement under the Securities Act of 1933, as amended, covering the offer and sale of a class or series of Common Stock, or successor equity, to the public (the "**IPO Closing Date**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately prior to the close of business at the principal corporate office of the Corporation on the seventh anniversary of the date of the effectiveness of the registration statement in connection with the initial listing of the Common Stock (or other equity securities of the Corporation) on the Nasdaq Stock Market, New York Stock Exchange or another exchange or marketplace approved by the Board of Directors of the Corporation by means of an effective registration statement filed by the Corporation with the Securities and Exchange Commission, without a related underwritten offering of such Common Stock (or other equity securities) (a "**Direct Listing**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) immediately prior to the close of business at the principal corporate office of the Corporation on the seventh anniversary of the date of the consummation of a transaction or series of related transactions by merger, consolidation, share exchange, or otherwise of the Corporation with a publicly-traded "special purpose acquisition company" or its subsidiary (collectively, a "**SPAC**"), immediately following the consummation of which the common stock or share capital of the SPAC or its successor entity is listed on the Nasdaq Stock Market, the New York Stock Exchange or another exchange or marketplace approved by the Board of Directors of the Corporation (such transaction or series of related transactions, the "**SPAC Transaction**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the date and time, or upon the occurrence of an event, specified in a written conversion election delivered by the holders of a majority of the voting power of the shares of Series C Common Stock electing to convert all shares of Series C Common Stock; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) upon the Transfer of such shares of Series C Common Stock; *provided*, *however*, that a Permitted Transfer shall not trigger such automatic conversion.

The first to occur of any of the events referred to in (a), (b), (c), (d) and (e) above are referred to herein as a "**Series C Common Stock Automatic Conversion Event**." The Corporation shall provide notice of a Series C Common Stock Automatic Conversion Event pursuant to this <u>Section 5.2</u> to record holders of such shares of Series C Common Stock as soon as practicable following the Series C Common Stock Automatic Conversion Event. Such notice shall be provided by any means then permitted by the DGCL; *provided*, *however*, that no failure to give such notice nor any defect therein shall affect the validity of the Series C Common Stock Automatic Conversion Event. Upon and after the Series C Common Stock Automatic Conversion Event, the person registered on the Corporation's books as the record holder of the shares of Series C Common Stock so converted immediately prior to the Series C Common Stock Automatic Conversion Event shall be registered on the Corporation's books as the record holder of the shares of Series B Common Stock issued upon conversion of such shares of Series C Common Stock, without further action on the part of the record holder thereof. Immediately upon the effectiveness of the Series C Common Stock Automatic Conversion Event, the rights of the holders of shares of Series C Common Stock as such shall cease, and the holders shall be treated for all purposes as having become the record holder or holders of such shares of Series B Common Stock into which such shares of Series C Common Stock were converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Policies and Procedures</u>. The Corporation may, from time to time, establish such policies and procedures, not in violation of applicable law, the Certificate of Incorporation or the bylaws of the Corporation (the "**Bylaws**"), relating to the conversion of shares of the Series C Common Stock into shares of Series B Common Stock and the multiple class common stock structure contemplated by the Certificate of Incorporation, as it may deem necessary or advisable. If the Corporation has reason to believe that a Transfer that is not a Permitted Transfer has occurred, the Corporation may request that the purported transferor furnish affidavits or other evidence to the Corporation as it reasonably deems necessary to determine whether a Transfer that is not a Permitted Transfer has occurred, and if such transferor does not within ten (10) days after the date of such request furnish sufficient (as determined by the Board of Directors) evidence to the Corporation (in the manner provided in the request) to enable the Corporation to determine that no such Transfer has occurred, any such shares of Series C Common Stock, to the extent not previously converted, shall be automatically converted into shares of Series B Common Stock and such conversion shall thereupon be registered on the books and records of the Corporation. In connection with any action of stockholders taken at a meeting or by written consent, the stock ledger of the Corporation shall be presumptive evidence as to who are the stockholders entitled to vote in person or by proxy at a meeting of stockholders or in connection with any written consent and the classes of shares held by each such stockholder and the number of shares of each class held by such stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Definitions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.1 "**Family Member**" shall mean with respect to any natural person who is a Qualified Stockholder, the spouse, ex-spouse, domestic partner, parents, grandparents, lineal descendants, siblings, and lineal descendants of siblings of such Qualified Stockholder. Lineal descendants shall include adopted persons, but only so long as they are adopted during minority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.2 "**Incompetency**" shall mean permanent and total disability such that a stockholder is unable to engage in any substantial gainful activity by reason of any medically determinable mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months as determined by a licensed medical practitioner. In the event of a dispute as to whether a stockholder suffers from Incompetency, no Incompetency of such stockholder shall be deemed to have occurred unless and until an affirmative ruling regarding such Incompetency has been made by a court of competent jurisdiction, and such ruling has become final and non-appealable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.3 "**Parent**" of an entity shall mean any entity that directly or indirectly owns or controls a majority of the voting power of the voting securities of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.4 "**Permitted Entity**" shall mean with respect to a Qualified Stockholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a trust solely for the benefit of (i) such Qualified Stockholder, (ii) one or more Family Members of such Qualified Stockholder, (iii) any other Permitted Entity of such Qualified Stockholder and/or (iv) such other beneficiaries as approved by a disinterested majority of the Board of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a corporation, partnership, or limited liability company in which such holder of Series C Common Stock (a "**Series C Stockholder**") directly, or indirectly through one or more Permitted Entities, owns an ownership interest with sufficient Voting Control in such entity, or otherwise has legally enforceable rights, such that the Series C Stockholder retains sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held by such entity; provided that in the event the Series C Stockholder no longer owns sufficient shares or has sufficient legally enforceable rights to enable the Series C Stockholder to retain sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held by such entity, each share of Series C Common Stock then held by such entity shall automatically convert into one fully paid and nonassessable share of Series B Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a revocable living trust, which revocable living trust is itself both a Permitted Trust and a Qualified Stockholder, during the lifetime of the natural person grantor of such trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an individual retirement account, as defined in Section 308(a) of the Code, or a pension, profit sharing, stock bonus or other type of plan or trust of which such Series C Stockholder is a participant or beneficiary and which satisfies the requirements for qualification under Section 301 of the Code; provided that in each case such Series C Stockholder has sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held in such account, plan or trust, and provided, further, that in the event the Series C Stockholder no longer has sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held by such account, plan or trust, each share of Series C Common Stock then held by such trust shall automatically convert into one fully paid and nonassessable share of Series B Common Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any other entity approved by a disinterested majority of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.5 "**Permitted Transfer**" shall mean, and be restricted to, any Transfer of a share of Series C Common Stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by a Qualified Stockholder to any Family Member or Permitted Entity of such Qualified Stockholder; <u>provided</u> that, such Transfer does not involve any payment of cash, securities, property or other consideration to the Qualified Stockholder, and <u>provided</u>, <u>further</u>, that the transferring Qualified Stockholder must retain Voting Control of the shares of Series C Common Stock Transferred in accordance with this <u>Section 5.4.5</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by a Family Member or Permitted Entity of a Qualified Stockholder to (A) such Qualified Stockholder, or (B) any other Permitted Entity of such Qualified Stockholder; <u>provided</u> that, in each case, such Qualified Stockholder must retain Voting Control of the shares of Series C Common Stock Transferred in accordance with this <u>Section 5.4.5(b)</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any transfer approved by a disinterested majority of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.6 "**Permitted Transferee**" shall mean a transferee of shares of Series C Common Stock received in a Transfer that constitutes a Permitted Transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.7 "**Permitted Trust**" shall mean

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a trust for the benefit of such Qualified Stockholder and for the benefit of no other person, and over which such Qualified Stockholder has dispositive or joint power and Voting Control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a trust for the benefit of persons other than the Qualified Stockholder so long as the Qualified Stockholder has sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held by such trust; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a trust under the terms of which such Qualified Stockholder has retained a "qualified interest" within the meaning of Section 2702(b)(1) of the Code or a reversionary interest so long as the Qualified Stockholder has sole dispositive power and exclusive Voting Control with respect to the shares of Series C Common Stock held by such trust; <u>provided</u> that, in each case, such Transfer does not involve any payment of cash, securities, property or other consideration (other than an interest in such trust) to the Qualified Stockholder, and, <u>provided</u>, <u>further</u>, that, in each case, in the event and at such time as such Qualified Stockholder is no longer the exclusive beneficiary of such trust or no longer holds dispositive or joint power and Voting Control, such trust shall cease to be a "Permitted Transferee" and each share of Series C Common Stock then held by such trust shall automatically convert into one (1) fully paid and nonassessable share of Series C Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.8 "**Qualified Stockholder**" shall mean (a) the record holder of a share of Series C Common Stock and (b) a Permitted Transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.9 "**Transfer**" of a share of Series C Common Stock shall mean, directly or indirectly, any sale, exchange, issuance, assignment, distribution, encumbrance, gift, pledge, retirement, resignation, conveyance, hypothecation or other transfer or disposition of such share or any legal or beneficial interest in such share, whether or not for value and whether voluntary or involuntary or by operation of law (including by merger, consolidation or otherwise), including, without limitation, (a) assignment and distribution resulting from death, Incompetency, bankruptcy, liquidation and dissolution, (b) following an initial public offering by the Corporation, a transfer of a share of Series C Common Stock to a broker or other nominee (regardless of whether there is a corresponding change in beneficial ownership), or (c) following an initial public offering by the Corporation, the transfer of, or entering into a binding agreement with respect to, Voting Control (as defined below) over such share by proxy or otherwise, but excluding any proxy given by a stockholder pursuant to the Corporation's form of stock option agreement or stock option exercise agreement, unless the Board of Directors, in their sole and absolute discretion and prior to the occurrence of a "Transfer," in a valid board action referring to this subsection of this Certificate of Incorporation, decide that a waiver of the conversion provisions should take place for a particular transaction and that, as a result, such transaction shall not constitute a "Transfer"; <u>provided</u>, <u>however</u>, that the following shall not be considered a "Transfer": (i) the grant of a revocable proxy to officers or directors of the Corporation at the request of the Board of Directors in connection with actions to be taken at an annual or special meeting of stockholders or in connection with any action by written consent of the stockholders solicited by the Board of Directors (if action by written consent of stockholders is permitted at such time under the Certificate of Incorporation); (ii) the pledge of shares of Series C Common Stock by the holder of such share of Series C Common Stock that creates a mere security interest in such shares pursuant to a *bona fide* loan or indebtedness transaction so long as the holder of shares of Series C Common Stock continues to exercise full Voting Control over such pledged shares, provided, however, that a foreclosure on such shares of Series C Common Stock or other similar action by the pledge shall constitute a "Transfer;" or (iii) the fact that, as of the filing date of this Certificate of Incorporation or at any time after the filing date of this Certificate of Incorporation, the spouse of any holder of shares of Series C Common Stock possesses or obtains an interest in such holder's shares of Series C Common Stock arising solely by reason of the application of the community property laws of any jurisdiction, so long as no other event or circumstances shall exist or have occurred that constitutes a "Transfer" of such shares of Class C Common Stock. Notwithstanding, a "Transfer" shall also be deemed to have occurred with respect to a share of Series C Common Stock beneficially held by (i) an entity that is a Permitted Entity, if there occurs any act or circumstance that causes such entity to no longer be a Permitted Entity or (ii) an entity that is a Qualified Stockholder, if there occurs a Transfer on a cumulative basis of a majority of the voting power of the voting securities of such entity or any direct or indirect Parent of such entity, other than a Transfer to parties that are holders of voting securities of any such entity or Parent of such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.10 "**Voting Control**" shall mean, with respect to a share of Series C Common Stock, the power (whether exclusive or shared) to vote or direct the voting of such share by proxy, voting agreement, or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Reservation of Stock</u>. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Series B Common Stock, solely for the purpose of effecting the conversion of the shares of Series C Common Stock, such number of shares of Series B Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of Series C Common Stock into shares of Series B Common Stock. The Corporation shall take all such actions as may be necessary to assure that all such shares of Series B Common Stock may be so issued without violation of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which shares of Series B Common Stock may be listed (except for official notice of issuance which shall be immediately delivered by the Corporation upon each such issuance). The Corporation shall not close its books against the transfer of any of its capital stock in any manner which would prevent the timely conversion of the shares of Series C Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>No Reissuance of Series C Common Stock</u>. No share or shares of Series C Common Stock acquired by the Corporation by reason of redemption, purchase, conversion or otherwise shall be reissued, and all such shares shall be cancelled, retired and eliminated from the shares that the Corporation shall be authorized to issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **PREFERRED STOCK**

The shares of the Preferred Stock shall have the powers (including voting powers), if any, preferences and relative, participating, optional, special or other rights, if any, and the qualifications, limitations or restrictions, if any, set forth in this Part B of this <u>Article IV</u>. Unless otherwise indicated, references to "Sections" or "Subsections" in this Part B of this Article IV refer to Sections and Subsections in this Part B of this Article IV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Preferred Stock</u>. The Preferred Stock may be issued from time to time in one or more series. Subject to limitations prescribed by law and the provisions of this Article IV, the Board of Directors is hereby authorized to provide by resolution and by causing the filing of an amendment or amendment and restatement to this Second Amended and Restated Certificate of Incorporation for the issuance of the shares of Preferred Stock in one or more series, and to establish from time to time the number of shares to be included in each such series, and to fix the designations, powers, preferences, and relative, participating, optional or other rights, if any, and the qualifications, limitations or restrictions, if any, of the shares of each such series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Rank</u>. With respect to distribution of assets upon liquidation, dissolution or winding up of the Corporation, whether voluntary or involuntary, all shares of the Series 1 Preferred Stock shall rank senior to the Common Stock and any other class of securities that is specifically designated as junior to the Series 1 Preferred Stock (collectively, the "**Junior Securities**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Dividends</u>. The Corporation shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Corporation (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in this Certificate of Incorporation) the holders of the Series 1 Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Series 1 Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series 1 Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Series 1 Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series 1 Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Series 1 Original Issue Price (as defined below); provided that, if the Corporation declares, pays or sets aside, on the same date, a dividend on shares of more than one (1) class or series of capital stock of the Corporation, the dividend payable to the holders of Series 1 Preferred Stock pursuant to this <u>Section 2</u> shall be calculated based upon the dividend on the class or series of capital stock that would result in the highest Series 1 Preferred Stock dividend. The "**Series 1 Original Issue Price**" shall mean, with respect to the Series 1 Preferred Stock, $4.11107 per share, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series 1 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Liquidation; Deemed Liquidation Event.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Liquidation</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation (collectively with a Deemed Liquidation Event, as defined below, a "**Liquidation**"), the holders of shares of Series 1 Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders, before any payment shall be made to the holders of Junior Securities by reason of their ownership thereof, an amount per share in cash equal to the greater of (i) the Series 1 Original Issue Price, plus any dividends declared but unpaid thereon, or (ii) such amount per share as would have been payable had all shares of Series 1 Preferred Stock been converted into Common Stock pursuant to <u>Section 5</u> below immediately prior to such Liquidation (the amount payable pursuant to this sentence is hereinafter referred to as the "**Liquidation Amount**"). In the event of such Liquidation, after the payment in full of all Liquidation Amounts required to be paid to the holders of shares of Series 1 Preferred Stock, the remaining assets of the Corporation available for distribution to its stockholders or, in the case of a Deemed Liquidation Event, the consideration not payable to the holders of shares of Preferred Stock pursuant to this <u>Section 3.1</u>, as the case may be, shall be distributed among the holders of Junior Securities, pro rata based on the number of shares held by each such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Deemed Liquidation Event</u>. Each of the following events shall be considered a "**Deemed Liquidation Event**":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a merger, consolidation, statutory conversion, transfer, domestication, or continuance in which

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation is a constituent party, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a subsidiary of the Corporation is a constituent party and the Corporation issues shares of its capital
stock pursuant to such merger, consolidation, statutory conversion, transfer, domestication, or continuance;

except any such merger, consolidation, statutory conversion, transfer, domestication, or continuance involving the Corporation or a subsidiary in which the shares of capital stock of the Corporation outstanding immediately prior to such merger, consolidation, statutory conversion, transfer, domestication, or continuance continue to represent, or are converted into or exchanged for shares of capital stock or other equity interests that represent, immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, a majority, by voting power, of the capital stock or other equity interests of (1) the surviving or resulting corporation or entity, or (2) if the surviving or resulting corporation or entity is a wholly owned subsidiary of another corporation or entity immediately following such merger, consolidation, statutory conversion, transfer, domestication, or continuance, the parent corporation or entity of such surviving or resulting corporation or entity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) the sale lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or (ii) the sale, lease, transfer, exclusive license or other disposition (whether by merger, consolidation, statutory conversion, domestication, continuance or otherwise, and whether in a single transaction or a series of related transactions) of one or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Effecting a Deemed Liquidation Event</u>. Upon the consummation of any such Deemed Liquidation Event, the holders of the Series 1 Preferred Stock shall, in consideration for cancellation of their shares, be entitled to the same rights such holders are entitled to under <u>Section 3.1</u> upon the occurrence of a Liquidation, including the right to receive the full payment from the Corporation of the Liquidation Amount payable with respect to the Series 1 Preferred Stock under <u>Section 3.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation shall not have the power to effect a Deemed Liquidation Event referred to in <u>Section 4.2(a)(i)</u> unless the agreement or plan of merger or consolidation for such transaction (the "**Transaction Agreement**") provides that the consideration payable to the stockholders of the Corporation in such Deemed Liquidation Event shall be allocated to the holders of capital stock of the Corporation in accordance with <u>Section 4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of a Deemed Liquidation Event pursuant to <u>Section 4.2(a)(i)</u>, if any portion of the consideration payable to the stockholders of the Corporation is payable only upon satisfaction of contingencies (the "**Additional Consideration**"), the Transaction Agreement shall provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the portion of such consideration that is not Additional Consideration (such portion, the "**Initial Consideration**") shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Section 3.1</u> as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Additional Consideration which becomes payable to the stockholders of the Corporation upon satisfaction
of such contingencies shall be allocated among the holders of capital stock of the Corporation in accordance with <u>Section 3.1</u> after taking into account the previous payment of the Initial Consideration as part of the same transaction.

For the purposes of <u>Section 4.2</u>, consideration placed into escrow or retained as a holdback to be available for satisfaction of indemnification or similar obligations in connection with such Deemed Liquidation Event shall be deemed to be Additional Consideration. Notwithstanding the foregoing, nothing in <u>Section 4.2</u> shall limit in any respect the right of any holder of Series 1 Preferred Stock to elect the benefits of this <u>Section 4</u> in connection with any Liquidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Insufficient Assets</u>. If upon any Liquidation the remaining assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the holders of the shares of Series 1 Preferred Stock the full preferential amount to which they are entitled under <u>Section 4</u>, (a) the holders of Series 1 Preferred Stock shall share ratably in any distribution of the remaining assets and funds of the Corporation in proportion to the respective full Liquidation Amounts which would otherwise be payable in respect of the Series 1 Preferred Stock in the aggregate upon such Liquidation if all amounts payable on or with respect to such shares were paid in full, and (b) the Corporation shall not make or agree to make any payments to the holders of Junior Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Notice</u>. In the event of any Liquidation, the Corporation shall, within ten (10) days of the date the Board approves such action, or no later than twenty (20) days of any stockholders' meeting called to approve such action, or within twenty (20) days of the commencement of any involuntary proceeding, whichever is earlier, give each holder of shares of Series 1 Preferred Stock written notice of the proposed action. Such written notice shall describe the material terms and conditions of such proposed action, including a description of the stock, cash, and property to be received by the holders upon consummation of the proposed action and the date of delivery thereof. If any material changes in the facts set forth in the initial notice shall occur, the Corporation shall promptly give written notice to each holder of such material change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Voting</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Voting Generally</u>. On any matter presented to the stockholders of the Corporation for their action or consideration at any meeting of stockholders of the Corporation (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Series 1 Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Series B Common Stock into which the shares of Series 1 Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of this Certificate of Incorporation, holders of Series 1 Preferred Stock shall vote together with the holders of voting Common Stock as a single class and on an as-converted to Common Stock basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Election of Directors</u>. (a) The holders of record of the Series 1 Preferred Stock representing at least a majority of the votes attributable to all then issued and outstanding Series 1 Preferred Stock, voting on an as-converted basis and exclusively and as a separate class, shall be entitled by vote or written consent to elect one director of the Corporation (the "**Preferred Stock Director**"), and (b) the holders of record of shares of Series B Common Stock and shares of Series C Common Stock representing at least a majority of the voting power of the then issued and outstanding shares of Series B Common Stock and shares of Series C Common Stock, voting together as a single class, shall be entitled by vote or written consent to elect two directors of the Corporation, one of whom shall qualify as an independent director (i.e., an individual with no material relationship with the Corporation that might interfere with independent judgment in carrying out his/her responsibilities as a director); *provided*, *however*, that any initial director or directors that any class or classes or series of capital stock of the Corporation shall be entitled to elect in accordance with the foregoing may also be appointed by the Board of Directors, regardless of whether any such sitting directors are elected by any particular class or classes or series of capital stock, without any action by the holders of such class or classes or series of capital stock. Any director elected (or appointed) pursuant to the foregoing may be removed without cause by, and only by, the affirmative vote of the holders of the shares of the class or series of capital stock entitled to elect such director or directors, either at a duly called special meeting or by written consent. At any time when less than 19,956,634 shares of Series 1 Preferred Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series 1 Preferred Stock) are issued and outstanding, the then-serving Preferred Stock Director may be removed by the holders of record of shares of Series B Common Stock representing at least a majority of the then issued and outstanding shares of Series B Common Stock, voting exclusively and as a separate class, and the holders of record of the shares of Series B Common Stock, exclusively and as a separate class, shall be entitled to elect the Preferred Stock Director.

Except as otherwise contemplated in this Section 4.2, if the holders of shares of Series 1 Preferred Stock (or the holders of shares of Series B Common Stock, as applicable) fail to elect the Preferred Stock Director (and to the extent the Preferred Stock Director seat is not otherwise filled by a director appointed by the Board of Directors in accordance with this Section 4.2), then the Preferred Stock Director seat shall remain unfilled until such time as the holders of the shares of Series 1 Preferred Stock (or the holders of shares of Series B Common Stock, as applicable) elect a person to fill such Preferred Stock Director seat by vote or written consent in lieu of a meeting; and, except as stated above, no such Preferred Stock Director seat may be filled by stockholders of the Corporation other than by the stockholders of the Corporation that are entitled to elect a person to fill such Preferred Stock Director seat, voting exclusively and as a separate class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Series 1 Preferred Stock Protective Provisions</u>. Subject to the expiration upon the earliest to occur of either (i) the Corporation raising, in one or more transactions, equity or equity-linked financing (including in connection with an offering under Regulation A, Tier 2, Regulation Crowdfunding, or Regulation D) yielding at least $15,000,000 in gross proceeds in the aggregate, provided that, for purposes of determining whether the $15,000,000 aggregate gross-proceeds threshold set forth in this clause (i) has been satisfied, only the gross proceeds of equity or equity-linked financings consummated by the Corporation on or after November 1, 2024 shall be taken into account, or (ii) at any time when less than 19,956,634 shares of Series 1 Preferred Stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series 1 Preferred Stock) are issued and outstanding, the Corporation shall not, either directly or indirectly by amendment, merger, consolidation, recapitalization, reclassification, or otherwise, do any of the following without (in addition to any other vote required by law or the Certificate of Incorporation of the Corporation) the written consent or affirmative vote of the Preferred Stock Director given in writing or by vote at a meeting, consenting or voting (as the case may be):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) liquidate, dissolve or wind-up the business and affairs of the Corporation, effect any merger or consolidation or any other Deemed Liquidation Event, or consent to any of the foregoing, unless the aggregate consideration payable to the Corporation and/or its stockholders is at least $140,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) amend, alter, or repeal any provision of this Certificate of Incorporation of the Corporation or the Bylaws of the Corporation in a manner that adversely affects the powers, preferences or rights of the Series 1 Preferred Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) create, or authorize the creation of, or issue or obligate itself to issue shares of, or reclassify, any capital stock unless the same ranks junior to the Series 1 Preferred Stock with respect to its rights, preferences and privileges, or (ii) increase the authorized number of shares of Series 1 Preferred Stock or any additional class or series of capital stock of the Corporation unless the same ranks junior to the Series 1 Preferred Stock with respect to its rights, preferences and privileges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) purchase or redeem (or permit any subsidiary to purchase or redeem) or pay or declare any dividend or make any distribution on, any shares of capital stock of the Corporation other than (i) redemptions of or dividends or distributions on the Series 1 Preferred Stock as expressly authorized herein, (ii) dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock, (iii) repurchases of stock from former employees, officers, directors, consultants or other persons who performed services for the Corporation or any subsidiary in connection with the cessation of such employment or service at no greater than the original purchase price thereof, and (iv) redemptions, dividends or distributions made in proportion to each stockholders' percentage ownership in the Corporation (on an as-converted to Common Stock basis) where the stockholders of the Corporation receive at least $140,000,000 in the aggregate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (i) create or adopt any equity (or equity-linked) compensation plan, or (ii) amend any such plan to increase the number of shares authorized for issuance thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conversion of Series 1 Preferred Stock</u>. The Series 1 Preferred Stock shall be convertible into shares of Series B Common Stock, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Optional Conversion</u>. Subject to the provisions of this <u>Section 6</u>, at any time and from time to time, any holder of shares of Series 1 Preferred Stock shall have the right by written election to the Corporation to convert all or any portion of the outstanding shares of Series 1 Preferred Stock held by such holder into shares of Series B Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Automatic Conversion</u>. All outstanding shares of Series 1 Preferred Stock shall automatically, without further action by the Corporation or the holder thereof, be converted into fully-paid, nonassessable shares of Series B Common Stock, at the earliest to occur of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately prior to the close of business at the principal corporate office of the Corporation of the IPO Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) immediately prior to the effectiveness of a Direct Listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) immediately prior to the consummation of SPAC Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the date and time, or upon the occurrence of an event, specified by a vote or written consent of the holders of the majority of the outstanding shares of Series 1 Preferred Stock, voting together as a single class on an as-converted to shares of Series B Common Stock basis (the "**Requisite Holders**").

Shares of Series 1 Preferred Stock shall be converted as provided in <u>Sections 6.1</u> and <u>6.2</u> above, on a one to one and one-tenth basis (subject to equitable adjustments for any stock splits, recapitalizations, reclassifications or the like), such that each share of Series 1 Preferred Stock shall be converted into one and one-tenth (1.1) shares of Series B Common Stock. No fractional shares shall be issued to any registered holder of Series 1 Preferred Stock immediately prior to the conversion into shares of Series B Common Stock, and that instead of issuing such fractional shares to such holders, such fractional shares shall be rounded up to the next even number of shares of Series B Common Stock issued as a result of the conversion at no cost to the stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Procedures for Conversion; Effect of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Procedures for Holder Conversion</u>. In order to effectuate a conversion of shares of Series 1 Preferred Stock pursuant to <u>Section 6.1</u>, a holder shall (i) submit a written election to the Corporation that such holder elects to convert shares, the number of shares elected to be converted, and (ii) surrender, along with such written election, to the Corporation the certificate or certificates representing the shares being converted, duly assigned or endorsed for transfer to the Corporation (or accompanied by duly executed stock powers relating thereto) or, in the event the certificate or certificates are lost, stolen or missing, accompanied by an affidavit of loss executed by the holder. The conversion of such shares hereunder shall be deemed effective as of the date of surrender of such Series 1 Preferred Stock certificate or certificates or delivery of such affidavit of loss. All shares of capital stock issued hereunder by the Corporation shall be duly and validly issued, fully paid and nonassessable, free and clear of all taxes, liens, charges and encumbrances with respect to the issuance thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Effect of Conversion</u>. All shares of Series 1 Preferred Stock converted as provided in <u>Section 6.1</u> and <u>Section 6.2</u> shall no longer be deemed outstanding as of the effective time of the applicable conversion and all rights with respect to such shares shall immediately cease and terminate as of such time, other than the right of the holder to receive shares of Series B Common Stock in exchange therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Reservation of Stock</u>. The Corporation shall at all times when any shares of Series 1 Preferred Stock is outstanding reserve and keep available out of its authorized but unissued shares of capital stock, solely for the purpose of issuance upon the conversion of the Series 1 Preferred Stock, such number of shares of Series B Common Stock issuable upon the conversion of all outstanding Series 1 Preferred Stock pursuant to this <u>Section 6</u>. The Corporation shall take all such actions as may be necessary to assure that all such shares of Series B Common Stock may be so issued without violation of any applicable law or governmental regulation or any requirements of any domestic securities exchange upon which shares of Series B Common Stock may be listed (except for official notice of issuance which shall be immediately delivered by the Corporation upon each such issuance). The Corporation shall not close its books against the transfer of any of its capital stock in any manner which would prevent the timely conversion of the shares of Series 1 Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>No Charge or Payment</u>. The issuance of certificates for shares of Series B Common Stock upon conversion of shares of Preferred Stock pursuant to <u>Section 6.1</u> shall be made without payment of additional consideration by, or other charge, cost or tax to, the holder in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Reissuance of Preferred Stock</u>. Any shares of Series 1 Preferred Stock redeemed, converted, or otherwise acquired by the Corporation or any subsidiary shall be cancelled and retired as authorized and issued shares of capital stock of the Corporation and no such shares shall thereafter be reissued, sold or transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Amendment and Waiver</u>. No provision of Part B of this <u>Article IV</u> of the Certificate of Incorporation may be amended, modified or waived except by an instrument in writing executed by the Corporation and the Requisite Holders, and any such written amendment, modification or waiver will be binding upon the Corporation and each holder of Series 1 Preferred Stock.

**ARTICLE V**

**BOARD OF DIRECTORS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Number</u>. Except as otherwise provided for or fixed pursuant to the provisions of Article IV hereof, the Board of Directors shall consist of such number of directors as shall be determined from time to time solely by resolution adopted by the affirmative vote of a majority of the total number of directors then authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Directors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the rights of the holders of any outstanding series of Preferred Stock, and unless otherwise required by law, newly created directorships resulting from any increase in the authorized number of directors and any vacancies in the Board of Directors resulting from death, resignation, retirement, disqualification, removal from office or other cause shall be filled solely by the affirmative vote of a majority of the remaining directors then in office (other than any director elected by a separate vote of the holders of one or more outstanding series of Preferred Stock), even though less than a quorum of the Board of Directors. Any director so chosen shall hold office until the next election of the class for which such director shall have been chosen and until his or her successor shall have been duly elected and qualified. No decrease in the authorized number of directors shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any director elected by the stockholders generally may be removed from office at any time, but only for cause and only by the affirmative vote of a majority of the voting power of the stock outstanding and entitled to vote thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) During any period when the holders of any series of Preferred Stock have the right to elect additional directors as provided for or fixed pursuant to the provisions of Article IV hereof, and upon commencement and for the duration of the period during which such right continues: (i) the then otherwise total authorized number of directors of the Corporation shall automatically be increased by such number of directors that the holders of any series of Preferred Stock have a right to elect, and the holders of such Preferred Stock shall be entitled to elect the additional directors so provided for or fixed pursuant to said provisions; and (ii) each Preferred Stock Director shall serve until such Preferred Stock Director's successor shall have been duly elected and qualified, or until such director's right to hold such office terminates pursuant to said provisions, whichever occurs earlier, subject to his or her earlier death, disqualification, resignation or removal. Except as otherwise provided for or fixed pursuant to the provisions of Article IV hereof, whenever the holders of any series of Preferred Stock having such right to elect additional directors are divested of such right pursuant to said provisions, the terms of office of all Preferred Stock Directors elected by the holders of such Preferred Stock, or elected to fill any vacancies resulting from the death, resignation, disqualification or removal of such additional directors, shall forthwith terminate (in which case such Preferred Stock Director shall cease to be qualified as a director and shall cease to be a director) and the total authorized number of directors of the Corporation shall be automatically reduced accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Powers</u>. Except as otherwise required by the DGCL or as provided in this Certificate of Incorporation, the business and affairs of the Corporation shall be managed by or under the direction of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Election: Annual Meeting of Stockholders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Ballot Not Required</u>. The directors of the Corporation need not be elected by written ballot unless the Bylaws of the Corporation so provide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice</u>. Advance notice of nominations for the election of directors, and of business other than nominations, to be proposed by stockholders for consideration at a meeting of stockholders of the Corporation shall be given in the manner and to the extent provided in or contemplated by the Bylaws of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Annual Meeting</u>. The annual meeting of stockholders, for the election of directors to succeed those whose terms expire and for the transaction of such other business as may properly come before the meeting, shall be held at such place, if any, either within or without the State of Delaware, on such date, and at such time as the Board of Directors shall fix.

**ARTICLE VI**

**SPECIAL MEETINGS OF STOCKHOLDERS**

Except as otherwise required by law, and except as otherwise provided for or fixed pursuant to the provisions of Article IV hereof, a special meeting of the stockholders of the Corporation may be called at any time only by the Board of Directors. Only such business shall be conducted at a special meeting of stockholders as shall have been brought before the meeting by or at the direction of the Board of Directors.

**ARTICLE VII**

**EXISTENCE**

The Corporation shall have perpetual existence.

**ARTICLE VIII**

**AMENDMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendment of Certificate of Incorporation</u>. The Corporation reserves the right at any time, and from time to time, to amend, alter, change or repeal any provision contained in this Certificate of Incorporation, and other provisions authorized by the laws of the State of Delaware at the time in force may be added or inserted, in the manner now or hereafter prescribed by the laws of the State of Delaware, and all powers, preferences and rights of any nature conferred upon stockholders, directors or any other persons by and pursuant to this Certificate of Incorporation in its present form or as hereafter amended are granted subject to this reservation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment of Bylaws</u>. In furtherance and not in limitation of the powers conferred by the laws of the State of Delaware, but subject to the terms of any series of Preferred Stock then outstanding, the Board of Directors is expressly authorized to adopt, amend or repeal the Bylaws of the Corporation. Except as otherwise provided in this Certificate of Incorporation (including the terms of any Preferred Stock Designation that require an additional vote) or the Bylaws of the Corporation, and in addition to any requirements of law, the affirmative vote of a majority of the voting power of the stock outstanding and entitled to vote thereon, voting together as a single class, shall be required for the stockholders to adopt, amend or repeal, or adopt any provision inconsistent with, any provision of the Bylaws of the Corporation.

**ARTICLE IX**

**LIABILITY OF DIRECTORS AND OFFICERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>No Personal Liability</u>. To the fullest extent permitted by the DGCL as the same exists or as may hereafter be amended, no director or officer of the Corporation shall be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendment or Repeal</u>. Any amendment, alteration or repeal of this Article IX that adversely affects any right of a director or officer shall be prospective only and shall not limit or eliminate any such right with respect to any proceeding involving any occurrence or alleged occurrence of any action or omission to act that took place prior to such amendment, alteration or repeal.

**ARTICLE X**

**CORPORATE OPPORTUNITIES**

The Corporation renounces, to the fullest extent permitted by law, any interest or expectancy of the Corporation in, or in being offered an opportunity to participate in, any Excluded Opportunity. An "**Excluded Opportunity**" is any matter, transaction or interest that is presented to, or acquired, created or developed by, or which otherwise comes into the possession of (i) any director of the Corporation who is not an employee of the Corporation or any of its subsidiaries, or (ii) any holder of Preferred Stock or any partner, member, director, stockholder, employee, affiliate or agent of any such holder, other than someone who is an employee of the Corporation or any of its subsidiaries (collectively, the persons referred to in clauses (i) and (ii) all are "**Covered Persons**"), unless such matter, transaction or interest is presented to, or acquired, created or developed by, or otherwise comes into the possession of, a Covered Person expressly and solely in such Covered Person's capacity as a director of the Corporation while such Covered Person is performing services in such capacity. Any repeal or modification of this Article X will only be prospective and will not affect the rights under this Article X in effect at the time of the occurrence of any actions or omissions to act giving rise to liability. Notwithstanding anything to the contrary contained elsewhere in this Certificate of Incorporation, the affirmative vote of the holders of a majority of the shares of Preferred Stock then outstanding will be required to amend or repeal, or to adopt any provisions inconsistent with this Article X.

**ARTICLE XI**

**FORUM FOR ADJUDICATION OF DISPUTES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Forum</u>. Unless the Corporation consents in writing to the selection of an alternative forum, (A) (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any current or former director, officer, other employee or stockholder of the Corporation to the Corporation or the Corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, this Certificate of Incorporation or the Bylaws or as to which the DGCL confers jurisdiction on the Court of Chancery of the State of Delaware or (iv) any action asserting a claim governed by the internal affairs doctrine of the law of the State of Delaware shall, to the fullest extent permitted by law, be exclusively brought in the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, the federal district court of the State of Delaware; and (B) the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act of 1933, as amended. To the fullest extent permitted by law, any person or entity purchasing or otherwise acquiring or holding any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article XI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Enforceability</u>. If any provision of this Article XI shall be held to be invalid, illegal or unenforceable as applied to any person or entity or circumstance for any reason whatsoever, then, to the fullest extent permitted by law, the validity, legality and enforceability of such provision in any other circumstance and of the remaining provisions of this Article XI (including, without limitation, each portion of any sentence of this Article XI containing any such provision held to be invalid, illegal or unenforceable that is not itself held to be invalid, illegal or unenforceable) and the application of such provision to other persons or entities or circumstances shall not in any way be affected or impaired thereby.

\* \* \*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. That the foregoing amendment and restatement was approved by the holders of the requisite number of shares of this corporation in accordance with Section 228 of the DGCL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. That this Certificate of Incorporation, which restates and integrates and further amends the provisions of the Corporation's Certificate of Incorporation, has been duly adopted in accordance with Sections 242 and 245 of the DGCL.

[Signature Page Follows]

**IN WITNESS WHEREOF**, this Second Amended and Restated Certificate of Incorporation has been executed by a duly authorized officer of this corporation on this 29 day of December, 2025.

---

| | |
|:---|:---|
| By: | /s/ Renji Bijoy |
| Name: Renji Bijoy | Name: Renji Bijoy |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

---

## Ex1A-4

**Exhibit 4.1**

**THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK.** THIS INVESTMENT IS SUITABLE ONLY FOR PERSONS WHO CAN BEAR THE ECONOMIC RISK FOR AN INDEFINITE PERIOD OF TIME AND WHO CAN AFFORD TO LOSE THEIR ENTIRE INVESTMENT. FURTHERMORE, INVESTORS MUST UNDERSTAND THAT SUCH INVESTMENT IS ILLIQUID AND IS EXPECTED TO CONTINUE TO BE ILLIQUID FOR AN INDEFINITE PERIOD OF TIME. NO PUBLIC MARKET EXISTS FOR THE SECURITIES, AND NO PUBLIC MARKET IS EXPECTED TO DEVELOP FOLLOWING THIS OFFERING.

**THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND ARE BEING OFFERED AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND STATE SECURITIES OR BLUE SKY LAWS.** ALTHOUGH AN OFFERING STATEMENT HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "**SEC**"), THAT OFFERING STATEMENT DOES NOT INCLUDE THE SAME INFORMATION THAT WOULD BE INCLUDED IN A REGISTRATION STATEMENT UNDER THE ACT. THE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, ANY STATE SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON THE MERITS OF THIS OFFERING OR THE ADEQUACY OR ACCURACY OF THE SUBSCRIPTION AGREEMENT OR ANY OTHER MATERIALS OR INFORMATION MADE AVAILABLE TO SUBSCRIBER IN CONNECTION WITH THIS OFFERING OVER THE WEB-BASED PLATFORM MAINTAINED BY DEALMAKER.TECH OR THROUGH DEALMAKER SECURITIES LLC (THE "**BROKER**"). ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.

**INVESTORS WHO ARE NOT "ACCREDITED INVESTORS" (AS THAT TERM IS DEFINED IN SECTION 501 OF REGULATION D PROMULGATED UNDER THE ACT) ARE SUBJECT TO LIMITATIONS ON THE AMOUNT THEY MAY INVEST, AS SET OUT IN SECTION 3.** THE COMPANY IS RELYING ON THE REPRESENTATIONS AND WARRANTIES SET FORTH BY EACH SUBSCRIBER IN THIS SUBSCRIPTION AGREEMENT AND THE OTHER INFORMATION PROVIDED BY SUBSCRIBER IN CONNECTION WITH THIS OFFERING TO DETERMINE THE APPLICABILITY TO THIS OFFERING OF EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE ACT.

**THE COMPANY RESERVES THE RIGHT IN ITS SOLE DISCRETION AND FOR ANY REASON WHATSOEVER TO MODIFY, AMEND AND/OR WITHDRAW ALL OR A PORTION OF THE OFFERING AND/OR ACCEPT OR REJECT IN WHOLE OR IN PART ANY PROSPECTIVE INVESTMENT IN THE SECURITIES OR TO ALLOT TO ANY PROSPECTIVE INVESTOR LESS THAN THE AMOUNT OF SECURITIES SUCH INVESTOR DESIRES TO PURCHASE.** EXCEPT AS OTHERWISE INDICATED, THE OFFERING MATERIALS SPEAK AS OF THEIR DATE. NEITHER THE DELIVERY NOR THE PURCHASE OF THE SECURITIES SHALL, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE COMPANY SINCE THAT DATE.

SUBSCRIPTION AGREEMENT

THIS SUBSCRIPTION AGREEMENT (this "**Agreement**" or this "**Subscription**") is made and entered into as of _________, 202___ by and between the undersigned (the "**Subscriber**") and Immersed Inc., a Delaware corporation ("**Immersed**"), with reference to the facts set forth below.

WHEREAS, subject to the terms and conditions of this Agreement, the Subscriber wishes to irrevocably subscribe for and purchase (subject to acceptance of such subscription by Immersed) certain shares of Series B Common Stock, par value $0.00001 per share, of Immersed (the "**Series B Common Stock**" and, together with the Bonus Shares (as defined in the Offering Circular) if the Subscriber is eligible, the "**Series B Shares**"), as more particularly set forth in Section 1 and on the signature page hereto, offered pursuant to that certain Offering Circular of Immersed on Form 1-A, as qualified by the Securities and Exchange Commission (SEC File No. 024-12657), as may be amended from time to time (the "**Offering Circular**").

NOW, THEREFORE, in order to implement the foregoing and in consideration of the mutual representations, warranties, covenants and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1. <u>Subscription for the Series B Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Subject to the express terms and conditions of this Agreement, the Subscriber hereby irrevocably subscribes for and agrees to purchase the number of Series B Shares (except for the Bonus Shares issued to the eligible subscribers, as applicable, for no additional consideration), at a price of $0.66 per Series B Share (the "**Purchase**"), plus a transaction fee (described further below) for the aggregate subscription price (the "**Subscription Price**") set forth on the signature page to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 The offering of Series B Shares is described in the Offering Circular, that is available at www.invest.immersed.com (the "**Site**"), as well as on the SEC's EDGAR website. Please read this Agreement and the Offering Circular. While they are subject to change, as described below, Immersed advises the Subscriber to print and retain a copy of these documents for the Subscriber's records. By signing below, the Subscriber agrees to the terms set forth herein and consents to receive communications relating to the Series B Shares electronically from Immersed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Immersed has the right to reject this Subscription in whole or in part for any reason. The Subscriber may not cancel, terminate or revoke this Agreement, which, in the case of an individual, shall survive the Subscriber's death or disability and shall be binding upon the Subscriber and the Subscriber's heirs, trustees, beneficiaries, executors, personal or legal administrators or representatives, successors, transferees and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 In committing to purchase Series B Shares, Subscribers will also be required to pay a Transaction Fee equal to 2.0% of the Subscription Price to Immersed to manage and offset offering costs associated with the Offering Circular (the "**Transaction Fee**", and together with the Subscription Price, the "**Purchase Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 Once the Subscriber makes a funding commitment to purchase Series B Shares, such commitment shall be irrevocable until the Series B Shares are issued, the Purchase is rejected by Immersed, or Immersed otherwise determines not to consummate the transaction contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 Upon acceptance of this Agreement and receipt of funds by Immersed, the Subscriber will become a stockholder of Immersed as a holder of Series B Shares.

2. <u>Purchase of the Series B Shares</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Subscriber understands that the Purchase Price is payable with the execution and delivery of this Agreement, and accordingly, will submit to Immersed payment in the amount of the Purchase Price by certified check or wire transfer of immediately available funds drawn on a United States bank in accordance with the banking instructions to be provided to the Subscriber upon execution and delivery of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 If Immersed returns the Subscriber's Purchase Price to the Subscriber, Immersed will not owe or pay any interest to the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 The Subscriber understands that Immersed will not utilize a third-party escrow account for this offering, and all funds tendered by Subscriber will be held in a segregated account until Subscriber subscriptions are accepted by Immersed and reviewed by the Broker. Once Subscriber subscriptions are accepted by Immersed and reviewed by the Broker, funds will be deposited into an account controlled by Immersed. The Subscriber shall receive notice and evidence of the digital entry of the number of shares of Series B Common Stock (and Bonus Shares, as applicable, if the Subscriber is eligible) owned by the Subscriber reflected on the books and records of Immersed and verified by Immersed's transfer agent, which books and records shall bear a notation that the shares of Series B Common Stock (and Bonus Shares, as applicable, if the Subscriber is eligible) were sold and issued in reliance upon Regulation A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 If this Subscription is accepted by Immersed, the Subscriber agrees to comply fully with the terms of this Agreement, the Series B Shares and all other applicable documents or instruments of Immersed. The Subscriber further agrees to execute any other necessary documents or instruments in connection with this Subscription and the Subscriber's purchase of the Series B Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 In the event that this Subscription is rejected in full or the offering is terminated, payment made by the Subscriber for the Series B Shares will be refunded to the Subscriber without interest and without deduction, and all of the obligations of the Subscriber hereunder shall terminate. To the extent that this Subscription is rejected in part, Immersed shall refund to the Subscriber any payment made by the Subscriber to Immersed with respect to the rejected portion of this Subscription, without interest and without deduction, and all of the obligations of Subscriber hereunder shall remain in full force and effect except for those obligations with respect to the rejected portion of this Subscription, which shall terminate.

3. <u>Investment Representations and Warranties of the Subscriber</u>. The Subscriber represents and warrants to Immersed the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The information that the Subscriber has furnished herein and in connection herewith, including, without limitation, the information set forth in any investor questionnaire completed by the Subscriber at the request of Immersed or its representatives in connection with this Subscription, and any other information furnished by the Subscriber to Immersed regarding whether the Subscriber qualifies as (i) an "accredited investor" as that term is defined in Rule 501 under Regulation D ("**Regulation D**") promulgated under the Act, which definition is set forth on **Annex A** attached hereto, and/or (ii) a "qualified purchaser" as that term is defined in Regulation A promulgated under the Act, is correct and complete as of the date of this Agreement and will be correct and complete on the date, if any, that Immersed accepts this Subscription. Further, the Subscriber shall immediately notify Immersed of any change in any statement made herein prior to the Subscriber's receipt of Immersed's acceptance of this Subscription, including, without limitation, the Subscriber's status as an "accredited investor" and/or "qualified purchaser." The representations and warranties made by the Subscriber herein may be fully relied upon by Immersed and by any investigating party relying on them. The Subscriber (a) is an "accredited investor" as that term is defined in Rule 501 under Regulation D, which definition is set forth on **Annex A** attached hereto, or (b) if the Subscriber is not an "accredited investor" as that term is defined in Rule 501 under Regulation D, the amount of Series B Shares being purchased by the Subscriber does not exceed 10% of the greater of the Subscriber's (i) annual income or net worth (for natural persons), or (ii) revenue or net assets at the most recent fiscal year-end (for non-natural persons). The Subscriber agrees to provide to Immersed any additional documentation Immersed may reasonably request, including documentation as may be required by Immersed to form a reasonable basis that the Subscriber qualifies as an "accredited investor" as that term is defined in Rule 501 under Regulation D promulgated under the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The Subscriber, if an entity, is, and shall at all times while it holds Series B Shares remain, duly organized, validly existing and in good standing under the laws of the state or other jurisdiction of the United States of America (or non-U.S. country) of its incorporation or organization, having full power and authority to own its properties and to carry on its business as conducted. The Subscriber, if a natural person, is eighteen (18) years of age or older and competent to enter into a contractual obligation. The principal place of business or principal residence of the Subscriber is as shown on the signature page to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The Subscriber has the requisite power and authority to deliver this Agreement, perform his, her or its obligations set forth herein, and consummate the transactions contemplated hereby. The Subscriber has duly executed and delivered this Agreement and has obtained the necessary authorization to execute and deliver this Agreement and to perform his, her or its obligations herein and to consummate the transactions contemplated hereby. This Agreement, assuming the due execution and delivery hereof by Immersed, is a legal, valid and binding obligation of the Subscriber enforceable against the Subscriber in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 At no time has it been expressly or implicitly represented, guaranteed or warranted to the Subscriber by Immersed or any other person that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A percentage of profit and/or amount or type of gain or other consideration will be realized as a result
of this investment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The past performance or experience on the part of Immersed and/or its officers or directors in any way
indicates the predictable or probable results of the ownership of the Series B Shares or the overall Immersed venture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The Subscriber has received and reviewed this Agreement and the Offering Circular. The Subscriber and/or the Subscriber's advisors, who are not affiliated with and not compensated directly or indirectly by Immersed or any affiliate thereof, have such knowledge and experience in business and financial matters as will enable them to utilize the information which they have received regarding Immersed and its business to evaluate the merits and risks of this investment, to make an informed investment decision and to protect the Subscriber's own interests in connection with the Purchase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 The Subscriber understands that the Series B Shares being purchased are a speculative investment which involves a substantial degree of risk of loss of the Subscriber's entire investment in the Series B Shares, and the Subscriber understands and is fully cognizant of the risk factors related to the purchase of the Series B Shares. The Subscriber has read, reviewed and understood the risk factors set forth in the Offering Circular.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The Subscriber understands that any forecasts or predictions as to Immersed's performance are based on estimates, assumptions and forecasts that Immersed believes to be reasonable but that may prove to be materially incorrect, and no assurance is given that actual results will correspond with the results contemplated by the various forecasts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 The Subscriber is able to bear the economic risk of an investment in the Series B Shares being purchased and, without limiting the generality of the foregoing, is able to hold the Series B Shares being purchased for an indefinite period of time. The Subscriber has adequate means to provide for the Subscriber's current needs and personal contingencies and has a sufficient net worth to sustain the loss of the Subscriber's entire investment in Immersed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 The Subscriber has had an opportunity to ask questions of Immersed or anyone acting on behalf of Immersed and to receive answers concerning the terms of this Agreement and the Series B Shares, as well as about Immersed and its business generally, and to obtain any additional information that Immersed possesses or can acquire without unreasonable effort or expense, that is necessary to verify the accuracy of the information contained in this Agreement. Further, all such questions have been answered to the full satisfaction of the Subscriber.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.10 The Subscriber understands that no state or federal authority in the United States or authority outside the United States has scrutinized this Agreement or the Series B Shares offered pursuant hereto, has made any finding or determination relating to the fairness of an investment in the Series B Shares, or has recommended or endorsed the Series B Shares, and that the Series B Shares have not been registered under the Act or any state securities laws, in reliance upon exemptions from registration thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.11 The Subscriber is subscribing for and purchasing the Series B Shares without being furnished any offering materials, other than the Offering Circular and this Agreement, and such other related documents, agreements or instruments as may be attached to the foregoing documents as exhibits or supplements thereto, or as the Subscriber has otherwise requested from Immersed in writing, and without receiving any representations or warranties from Immersed or its agents and representatives other than the representations and warranties contained in said documents, and is making this investment decision solely in reliance upon the information contained in said documents and upon any independent investigation made by the Subscriber or the Subscriber's advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.12 The Subscriber's true and correct full legal name, address of residence (or, if an entity, principal place of business), phone number, electronic mail address, United States taxpayer identification number, if any, and other contact information are accurately provided on the signature page hereto. The Subscriber is currently a bona fide resident of the state or jurisdiction set forth in the current address provided to Immersed on the signature page hereto. The Subscriber has no present intention of becoming a resident of any other state or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.13 The Subscriber is subscribing for and purchasing the Series B Shares solely for the Subscriber's own account, for investment purposes only, and not with a view toward or in connection with resale, distribution (other than to its shareholders or members, if any), subdivision or fractionalization thereof. The Subscriber has no agreement or other arrangement, formal or informal, with any person or entity to sell, transfer or pledge any part of the Series B Shares, or which would guarantee the Subscriber any profit, or insure against any loss with respect to the Series B Shares, and the Subscriber has no plans to enter into any such agreement or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.14 The execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, and the performance of the obligations hereunder will not conflict with or result in any violation of or default under any provision of any other agreement or instrument to which the Subscriber is a party or any license, permit, franchise, judgment, order, writ or decree, or any statute, rule or regulation, applicable to the Subscriber. The Subscriber confirms that the consummation of the transactions contemplated herein, including, but not limited to, the Subscriber's Purchase, will not violate any foreign law and that such transactions are lawful in the Subscriber's country of citizenship and residence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.15 Immersed's intent is to comply with all applicable federal, state and local laws designed to combat money laundering and similar illegal activities, including the provisions of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the "**PATRIOT Act**"). The Subscriber agrees that, if at any time it is discovered that Immersed has been or may be found to have violated the PATRIOT Act or any other anti-money laundering laws or regulations as a result of the Purchase or receipt of the Purchase Price, or if otherwise required by applicable laws or regulations, Immersed may undertake appropriate actions, and the Subscriber agrees to cooperate with such actions, to ensure compliance with such laws or regulations, including, but not limited to segregation and/or redemption of the Subscriber's interest in the Series B Shares. The Subscriber agrees to provide any and all documentation requested by Immersed to ensure compliance with the PATRIOT Act or other laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.16 The Subscriber confirms that the Subscriber has been advised to consult with the Subscriber's independent attorney regarding legal matters concerning Immersed and to consult with independent tax advisors regarding the tax consequences of investing in Immersed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.17 If the Subscriber is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), the Subscriber hereby represents that the Subscriber has satisfied itself as to the full observance of the laws of its jurisdiction in connection with any invitation to subscribe for the Series B Shares or any use of this Agreement, including (i) the legal requirements within its jurisdiction for the purchase of the Series B Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that may need to be obtained, and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale, or transfer of the Series B Shares. The Subscriber's subscription for and Purchase of and continued beneficial ownership of the Series B Shares will not violate any applicable securities or other laws of the Subscriber's jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.18 The Subscriber acknowledges that the subscription price per Series B Share to be sold in this offering was set by Immersed on the basis of Immersed's internal valuation and no warranties are made as to value. The Subscriber further acknowledges that future offerings of securities of Immersed may be made at lower valuations, with the result that the Subscriber's investment will bear a lower valuation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.19 The Subscriber acknowledges and agrees that the availability and allocation of the Bonus Shares, of which up to 6,363,636 are available for issuance in the offering, is subject to the terms and conditions set forth in the Offering Circular respective to Subscriber's eligibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.20 By submitting this payment, Subscriber hereby authorizes the Broker to charge my designated payment method for the investment amount indicated. Subscriber understands this investment is subject to the terms of the offering and its associated rules and investor protections. Subscriber understands the subscription is not a purchase of goods or services. Subscriber acknowledges that this transaction is final, non-refundable unless otherwise stated or required, and represents an investment subject to risk, including loss. Subscriber confirms that he/she/it has reviewed all offering documents, including without limitation the Offering Circular and this Agreement and agrees not to dispute this charge with my bank or card issuer, so long as the transaction corresponds to the agreed terms and disclosures.

4. <u>Indemnification</u>. The representations, warranties and covenants made by the Subscriber herein shall survive the closing of the Purchase. The Subscriber agrees to indemnify and hold harmless Immersed, its affiliates, and each of their respective officers, directors, employees, agents and representatives, the selling stockholders identified in the Offering Circular the selling stockholders identified in the Offering Circular (the "**Selling Stockholders**"), and each other person, if any, who controls Immersed or any Selling Stockholder within the meaning of Section 15 of the Act against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys' fees, including attorneys' fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach or failure by the Subscriber to comply with any covenant or agreement made by the Subscriber herein or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction.

5. <u>No Advisory Relationship</u>. The Subscriber acknowledges and agrees that the purchase and sale of the Series B Shares pursuant to this Agreement is an arms-length transaction between the Subscriber and Immersed. Immersed is not acting as the Subscriber's agent or fiduciary in connection with the Purchase. Immersed has not provided the Subscriber with any legal, accounting, regulatory or tax advice with respect to the Series B Shares, and the Subscriber has consulted his, her or its own respective legal, accounting, regulatory and tax advisors to the extent the Subscriber has deemed appropriate.

6. <u>Bankruptcy</u>. In the event that the Subscriber files or enters bankruptcy, insolvency or other similar proceeding, the Subscriber agrees to use the Subscriber's best efforts to avoid Immersed being named as a party or otherwise involved in the proceeding. Furthermore, this Agreement shall be interpreted so as to prevent, to the maximum extent permitted by applicable law, any bankruptcy trustee, receiver or debtor-in-possession from asserting, requiring or seeking that (i) the Subscriber be allowed by Immersed to return the Series B Shares to Immersed for a refund or (ii) Immersed be mandated or ordered to redeem or withdraw Series B Shares held or owned by the Subscriber.

7. Legends. It is understood that the certificates evidencing the Series B Shares may bear any legend required by the Bylaws of Immersed or applicable state or federal securities laws in the United States, or by applicable laws and regulations of the non-U.S. jurisdiction where the Subscriber is resident or domiciled.

8. <u>Consent to Electronic Delivery</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The Subscriber hereby agrees that Immersed may deliver all SEC reports, including offering circulars, exhibits, supplements, legends, notices, financial statements, valuations, reports, reviews, analyses or other materials, and any and all other documents, information and communications concerning the affairs of Immersed and its investments, including, without limitation, information about the investment, required or permitted to be provided to the Subscriber with respect to the Series B Shares or hereunder, by means of e-mail or by posting on an electronic message board or by other means of electronic communication. The Subscriber hereby consents to receive from Immersed electronically all documents, communications, notices, contracts, and agreements arising from or relating in any way to the Subscriber's or Immersed's rights, obligations or services under this Agreement (each, a "**Disclosure**"). The decision to do business with Immersed electronically is the Subscriber's decision. This Agreement informs the Subscriber of its rights concerning Disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 The Subscriber's consent to receive Disclosures and transact business electronically, and Immersed's agreement to do so, applies to any transactions to which such Disclosures relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Before the Subscriber decides to do business electronically with Immersed, the Subscriber should consider whether he, she or it has the required hardware and software capabilities described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 In order to access and retain Disclosures electronically, the Subscriber must satisfy the following computer hardware and software requirements: access to the Internet; an e-mail account and related software capable of receiving e-mail through the Internet; a web browser which is SSL-compliant and supports secure sessions; and hardware capable of running this software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 The Subscriber agrees to keep Immersed informed of any change in the Subscriber's e-mail or home mailing address. If the Subscriber's registered e-mail address changes, the Subscriber must notify Immersed of the change by sending an e-mail to renji@immersed.com. The Subscriber also agrees to update the Subscriber's registered residence address and telephone number on file with Immersed if they change. The Subscriber will print a copy of this Agreement for his, her or its records, and the Subscriber agrees and acknowledges that the Subscriber can access, receive and retain all Disclosures electronically sent via e-mail.

9. <u>Lock-Up Agreement</u>. The Subscriber agrees that, in the sole discretion of Immersed, in the event of an underwritten public offering of securities of Immersed under the Act or the closing of a merger or other business combination of Immersed with a publicly-traded special purpose acquisition company or its subsidiary, following which the capital stock of the combined or surviving entity or its parent are listed for trading on a public exchange, the Subscriber hereby irrevocably agrees not to sell, contract to sell, grant any option to purchase, transfer the economic risk of ownership in, make any short sale of, lend, pledge or otherwise transfer or dispose of any interest in any Series B Shares or any securities convertible into or exchangeable or exercisable for or any other rights to purchase or acquire Series B Shares (except Series B Shares included in such offering or acquired on the public market after such offering) during the 180-day period following the effective date of a registration statement or offering statement of Immersed filed under the Act. The Subscriber further agrees that in order to effect the foregoing, Immersed may impose stop-transfer instructions with respect to such Series B Shares subject to the lock-up period until the end of such period. Immersed and the Subscriber acknowledge that each underwriter of such offering of Immersed's securities, during the period of such offering and for the lock-up period thereafter, is an intended beneficiary of this Section 9.

10. <u>Limitations on Damages</u>. IN NO EVENT SHALL IMMERSED BE LIABLE TO THE SUBSCRIBER FOR ANY LOST PROFITS OR SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, EVEN IF INFORMED OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING SHALL BE INTERPRETED AND HAVE EFFECT TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, RULE OR REGULATION.

11. <u>Miscellaneous Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 This Agreement, and all claims or cause of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement) shall be governed by and construed and enforced in accordance with the internal laws of the State of Delaware without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Texas and to the jurisdiction of the United States District Court in the City and County of Austin, Travis County for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Texas or the United States District Court in the City and County of Austin, Travis County, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court. Notwithstanding the foregoing or anything to the contrary, the Subscriber and Immersed agree that no provisions under applicable federal laws and regulations, including the Act and the Securities Exchange Act of 1934, as amended, respective to jurisdiction, venue and/or forum, shall be waived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 All notices and communications to be given or otherwise made to the Subscriber shall be deemed to be sufficient if sent by electronic mail to such address as set forth for the Subscriber in the records of Immersed (or that the Subscriber submitted to Immersed). The Subscriber shall send all notices or other communications required to be given hereunder to Immersed via e-mail to renji@immersed.com with a copy to be sent concurrently via prepaid certified mail to: 106 E. 6th STE 900-202, Austin, Texas 78701, Attention: Investor Relations. Any such notice or communication shall be deemed to have been delivered and received on the first business day following that on which the electronic mail has been sent (assuming that there is no error in delivery). As used in this Section, "**business day**" shall mean any day other than a day on which banking institutions in Delaware are legally closed for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 This Agreement, and the rights, obligations and interests of the Subscriber hereunder, may not be assigned, transferred or delegated by the Subscriber without the prior written consent of Immersed. Any such assignment, transfer or delegation in violation of this Section shall be null and void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 The parties agree to execute and deliver such further documents and information as may be reasonably required in order to effectuate the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 Any term of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of each of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 If one or more provisions of this Agreement are held to be unenforceable under applicable law, rule or regulation, such provision shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 In the event that either party hereto shall commence any suit, action or other proceeding to interpret this Agreement, or determine to enforce any right or obligation created hereby, then such party, if it prevails in such action, shall recover its reasonable costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorneys' fees and expenses and costs of appeal, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 This Agreement and the documents referred to herein constitute the entire agreement among the parties and shall constitute the sole documents setting forth the terms and conditions of the Subscriber's contractual relationship with Immersed with regard to the matters set forth herein. This Agreement supersedes any and all prior or contemporaneous communications, whether oral, written or electronic, between Immersed and the Subscriber with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 This Agreement may be executed in any number of counterparts, or facsimile counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. The singular number or masculine gender, as used herein, shall be deemed to include the plural number and the feminine or neuter genders whenever the context so requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 Except as otherwise expressly set forth herein, the parties acknowledge that there are no third party beneficiaries of this Agreement.

[Signature page follows]

IN WITNESS WHEREOF, the Subscriber, or its duly authorized representative(s), hereby acknowledges that the Subscriber has read and understood the risk factors set forth in the Offering Circular, and has hereby executed and delivered this Agreement, and executed and delivered herewith the Purchase Price, as of the date set forth above.

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| |
|:---|
| Full Legal Name of Subscriber(s) (shares will be issued to name as written) |
| Type of Owner - Individual, Joint Tenants, Tenancy in Common, Trust, IRA, Corporation, etc. |
| Signature |
| Name and Title (if applicable) of Person Signing on Behalf of Subscriber |

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| |
|:---|
| Address: |
| Telephone: |
| E-mail: |

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Number of Series B Shares Purchased:  

Subscription Price per

Series B Share: $0.66

Aggregate Subscription Price: $_____________________

Transaction Fee of 2.0% of the

Subscription Price: $_____________________

Aggregate Purchase Price to be Remitted: $________________________

Number of Bonus Shares issued to the Subscriber, if any (for no additional consideration): _____________________

Accredited Investor (See **Annex A**): Yes<u> </u> No<u> </u>

**Additional required information if ownership to be held in a Trust:**

Trustee Name:   <br>Trust Formation Date:  

[Signature Page to Subscription Agreement]

AGREED AND ACCEPTED BY:

Immersed Inc.

By:   <br> Name: Renji Bijoy <br> Title: Founder and Chief Executive Officer

[Subscription Agreement signature page counterpart]

ANNEX A

*Accredited investor. "Accredited investor"* shall mean any person who comes within any of the following categories, or who Immersed reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any bank as defined in section 3(a)(2) of the Act, or any savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the Investment Advisers Act of 1940 or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the SEC under section 203(l) or (m) of the Investment Advisers Act of 1940; any insurance company as defined in section 2(a)(13) of the Act; any investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that act; any Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; any Rural Business Investment Company as defined in section 384A of the Consolidated Farm and Rural Development Act; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000; any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any private business development company as defined in section 202(a)(22) of the Investment Advisers Act of 1940;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any organization described in section 501(c)(3) of the Internal Revenue Code, corporation, Massachusetts or similar business trust, partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of $5,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent<sup>1</sup>, exceeds $1,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in paragraph (a)(5)(ii) of Rule 501, for purposes of calculating net worth under this paragraph (a)(5):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The person's primary residence shall not be included as an asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;

Note to paragraph (a)(5): For the purposes of calculating joint net worth in this paragraph (a)(5): joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent; assets need not be held jointly to be included in the calculation. Reliance on the joint net worth standard of this paragraph (a)(5) does not require that the securities be purchased jointly.

<sup>1</sup> "Spousal equivalent" is defined in Rule 501(j) as a cohabitant occupying a relationship generally equivalent to that of a spouse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Any trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Any entity in which all of the equity owners are accredited investors;

Note to paragraph (a)(8): It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this paragraph (a)(8). If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this paragraph (a)(8) may be available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Any entity, of a type not listed in paragraphs (a)(1), (a)(2), (a)(3), (a)(7), or (a)(8), not formed for the specific purpose of acquiring the securities offered, owning investments in excess of $5,000,000;

Note to paragraph (a)(9): For the purposes of this paragraph (a)(9), "investments" is defined in rule 2a51-1(b) under the Investment Company Act of 1940 (17 CFR 270.2a51-1(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Any natural person holding in good standing one or more professional certifications or designations or credentials from an accredited educational institution that the SEC has designated as qualifying an individual for accredited investor status. In determining whether to designate a professional certification or designation or credential from an accredited educational institution for purposes of this paragraph (a)(10), the SEC will consider, among others, the following attributes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The certification, designation, or credential arises out of an examination or series of examinations administered by a self-regulatory organization or other industry body or is issued by an accredited educational institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The examination or series of examinations is designed to reliably and validly demonstrate an individual's comprehension and sophistication in the areas of securities and investing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Persons obtaining such certification, designation, or credential can reasonably be expected to have sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of a prospective investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) An indication that an individual holds the certification or designation is either made publicly available by the relevant self-regulatory organization or other industry body or it otherwise independently verifiable;

Note to paragraph (a)(10): The SEC will designate professional certifications or designations or credentials for purposes of this paragraph (a)(10), by order, after notice and an opportunity for public comment. The professional certifications or designations or credentials currently recognized by the SEC as satisfying the above criteria will be posted on the SEC's website.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Any natural person who is a "knowledgeable employee," as defined in rule 3c-5(a)(4) under the Investment Company Act of 1940 (17 CFR 270.3c-5(a)(4)), of the issuer of the securities being offered or sold where the issuer would be an investment company, as defined in section 3 of such act, but for the exclusion provided by either section 3(c)(1) or section 3(c)(7) of such act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With assets under management in excess of $5,000,000,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) That is not formed for the specific purpose of acquiring the securities offered, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Whose prospective investment is directed by a person who has such knowledge and experience in

financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940 (17 CFR 275.202(a)(11)(G)-1), of a family office meeting the requirements in paragraph (a)(12) of this section and whose prospective investment in the issuer is directed by such family office pursuant to paragraph (a)(12)(iii).

## Ex1A-6

**Exhibit 6.4**

**IMMERSED INC.**

**2017 Stock Option Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purpose**. The purpose of this Plan is to promote share ownership by key employees, Directors and consultants of Immersed Inc. a Delaware corporation, and its Subsidiaries, thereby reinforcing a mutuality of interest with other stockholders, and to enable the Company and the Subsidiaries to attract, retain and motivate key employees, Directors and consultants by permitting them to share in its growth.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. **Definitions**. As used in this Plan,

"Affiliate" means, with respect to a Person, a Person that directly or indirectly Controls, or is Controlled by, or is under common Control with such Person.

"Award" means a grant of Options pursuant to the provisions of the Plan.

"Board" means the Board of Directors of the Company and, to the extent of any delegation by the Board to a committee (or subcommittee thereof) pursuant to Section 12 of this Plan, such committee (or subcommittee).

"Cause" means (i) conviction of, or the entry of a plea of guilty or no contest to, a felony or any other crime that causes the Company or its Affiliates public disgrace or disrepute, or materially and adversely affects the Company's or its Affiliates' operations or financial performance or the relationship the Company has with its customers, (ii) gross negligence or willful misconduct with respect to the Company or any of its Affiliates, including, without limitation fraud, embezzlement, theft or proven dishonesty in the course of his or her employment; (iii) alcohol abuse or use of controlled drugs other than in accordance with a physician's prescription; (iv) refusal to perform any lawful, material obligation or fulfill any duty (other than any duty or obligation of the type described in clause (vi) below) to the Company or its Affiliates (other than due to a Disability), which refusal, if curable, is not cured within 15 days after delivery of written notice thereof; (v) material breach of any agreement with or duty owed to the Company or any of its Affiliates, which breach, if curable, is not cured within 15 days after the delivery of written notice thereof; or (vi) any breach of any obligation or duty to the Company or any of its Affiliates (whether arising by statute, common law or agreement) relating to confidentiality, noncompetition, nonsolicitation or proprietary rights. Notwithstanding the foregoing, if a Participant and the Company (or any of its Affiliates) have entered into an employment agreement, consulting agreement or other similar agreement that specifically defines "cause," then with respect to such Participant, "Cause" shall have the meaning defined in that employment agreement, consulting agreement or other agreement.

"Change in Control" means a "Deemed Liquidation Event" as such term is defined in the Company's certificate of incorporation (as in effect from time to time), or if such term is not defined in the Company's certificate of incorporation, then it shall mean, unless otherwise defined in an Award agreement, the occurrence of any one or more of the following: (i) the sale of all of the outstanding equity interests of the Company to an unrelated person or entity; (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity; (iii) a merger, reorganization or consolidation after which the holders of the voting stock of the Company immediately prior to such transaction (and their related persons or entities) own less than fifty percent (50%) of the outstanding voting power of the surviving or resulting entity immediately upon completion of such transaction; or (iv) the dissolution or liquidation of the Company.

"Code" means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

"Control" means, as to any Person, the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise (the terms "Controlled by" and "under common Control with" shall have correlative meanings).

"Company" means Immersed Inc., a Delaware corporation, and any successor thereto.

"Date of Grant" means the date as of which an Option is determined to be effective and designated in a resolution by the Board. The Date of Grant shall not be earlier than the date of the resolution and action therein by the Board.

"Director" means a member of the Board.

"Disability" means a condition rendering a Participant Disabled.

"Disabled" with respect to a particular Participant will have the same meaning as set forth in any long-term disability policy or program sponsored by the Company or any Subsidiary covering such Participant, as in effect as of the date of such determination, or if no such policy or program shall be in effect, "Disabled" will have the meaning as set forth in Section 22(e)(3) of the Code.

"Fair Market Value" means, as of any given day, the amount determined in good faith by the Board to be the fair market value of a Share on such day (which determination shall, to the extent applicable, be made in a manner that complies with Section 409A of the Code), and such determination shall be conclusive and binding for all purposes.

"Incentive Stock Options" means Options that are intended to qualify as "incentive stock options" under Section 422 of the Code or any successor provision.

"Initial Public Offering" means the first public offering of the Company's equity securities registered under the Securities Act of 1933, as amended, or any successor statute, or such other event as a result of which outstanding equity securities of the Company (or any successor entity) shall be publicly traded.

"Nonqualified Stock Option" means an Option that is not intended to meet the requirements of Section 422 of the Code or otherwise does not meet such requirements.

"Option" means the right to purchase Shares upon exercise of an option granted pursuant to Section 4 of this Plan.

"Option Price" means the purchase price per Option Share payable on exercise of an Option.

"Option Shares" means Shares acquired upon the exercise of an Option.

"Participant" means a person who is selected by the Board to receive benefits under this Plan and who is at the time an employee, Director, advisor, or consultant of the Company or a Subsidiary.

"Person" means an individual, partnership, corporation, limited liability company, trust, joint venture, unincorporated association, or other entity or association.

"Plan" means this 2017 Stock Option Plan, as amended from time to time.

"Repurchase Right" means the Company's right to repurchase Option Shares as set forth in Section 5 of this Plan.

"Right of First Refusal" means the Company's right of first refusal as set forth in Section 6 of this Plan.

"Shares" means shares of the common stock, $0.00001 par value, of the Company or any security into which such shares may be changed by reason of any transaction or event of the type referred to in Section 7.

"Stockholder Agreement" means any stockholders' agreement (including, but not limited to, the Company's Bylaws and Certificate of Incorporation, if and as applicable, and as from time to time in effect) by and among, or otherwise binding, the Company and certain stockholders and/or one or more agreements among the Company, a Participant (or such Participant's estate, heirs or beneficiaries) and other parties thereto in such form determined from time to time by the Company in its sole discretion, that include terms and conditions that provide the Company and/or other stockholders with (i) a right of first refusal or impose other restrictions with respect to the transfer of Shares, (ii) a voting agreement with respect to Shares, (iii) "drag-along" rights in favor of the stockholders owning a specified threshold of Shares, (iv) "market standoff" or "lock-up" conditions, and (v) such other reasonable terms and conditions as the Board may require, if any.

"Stock Option Agreement" means the agreement entered into by the Company and Participant pursuant to Section 8 of this Plan.

"Subsidiary" means any corporation, company or other entity (i) more than 50 percent of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture, limited liability company or unincorporated association), but more than 50 percent of whose ownership interest representing the right generally to make decisions for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the Company.

"Ten Percent Stockholder" shall mean any Participant who owns more than 10% of the combined voting power of all classes of stock of the Company, within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Shares Available.** Subject to adjustment as provided in Section 7 of this Plan, the total number of Shares which may be issued and sold under Options granted pursuant to this Plan shall not exceed 1,400,000 Shares, any or all of which may be issued under Incentive Stock Options. Such shares may be treasury shares or shares of original issue or a combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Options**. The Board may, from time to time and upon such terms and conditions as it may determine, authorize the granting of Options to Participants. Each such grant shall be subject to all of the requirements contained in the following provisions and such other terms as the Board shall determine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each grant shall specify the number of Shares to which it pertains and shall separately designate whether the Options are intended to be Incentive Stock Options, Nonqualified Stock Options, or a combination of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each grant shall specify an Option Price, which shall be at least equal to the Fair Market Value of a Share on the Date of Grant. In the case of an Incentive Stock Option granted to a Ten Percent Stockholder, the Option Price shall be at least equal to one hundred ten percent (110%) of the Fair Market Value of a Share on the Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Option Price shall be payable (i) in cash or by other consideration acceptable to the Company, (ii) by the actual or constructive transfer to the Company of Shares owned by the Participant having a Fair Market Value at the time of exercise equal to the total Option Price, (iii) by a combination of such methods of payment, or (iv) any other method approved or accepted by the Board in its sole discretion, including, if the Board so determines, a cashless exercise that complies with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) Each grant shall specify the period or periods of continuous service by the Participant with the Company or any of its Subsidiaries that is necessary before the Options or installments thereof will become exercisable and may provide for earlier exercise of the Option, including, without limitation, in the event of a Change in Control or similar event. Any grant may specify performance conditions that must be satisfied as a condition to the exercise or early exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notwithstanding the foregoing, any grant of Options may provide for the immediate exercisability of the Options, subject to the additional restrictions described in this paragraph (d)(ii). Option Shares so acquired may not be transferred, sold, pledged, exchanged, assigned or otherwise encumbered or disposed of by the Optionee, except to the Company, until they have become vested in accordance with a vesting schedule set forth in the agreement evidencing the grant. Should the Optionee terminate service while holding Option Shares that have not become vested, the Company shall have the right to repurchase, at the Option Price paid per share, any or all of those unvested Option Shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Board and set forth in the document evidencing such repurchase right. Unless otherwise directed by the Board, all certificates representing unvested Option Shares shall be held in custody by the Company until all restrictions thereon have lapsed, together with a stock power or powers, executed by the Optionee in whose name such certificates are registered, endorsed in blank and covering such Option Shares. The repurchase rights described in this paragraph (d)(ii) shall be in addition to the Repurchase Right described in Section 5 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless otherwise approved by the Board, each Option shall be subject to the Repurchase Right and the Right of First Refusal in favor of the Company as specified in Sections 5 and 6 of this Plan, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise determined by the Board, no Option shall be transferable by the Participant except by will or the laws of descent and distribution. Except as otherwise determined by the Board, Options shall be exercisable during the Participant's lifetime only by the Participant or, in the event of the Participant's legal incapacity to do so, the Participant's guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law and court supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No Option shall be exercisable more than 10 years after the Date of Grant. In the case of an Incentive Stock Option granted to a Ten Percent Stockholder, the Incentive Stock Option shall not be exercisable later than 5 years after its Date of Grant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) A Participant may exercise an Option in whole or in part at any time and from time to time during the period within which an Option may be exercised. To exercise an Option, a Participant shall give written notice to the Company specifying the number of Shares to be purchased and provide payment of the Option Price and any other documentation that may be required by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Participant shall be treated for all purposes as the owner of record of the number of Shares purchased pursuant to exercise of the Option (in whole or in part) as of the date such Shares are issued following the complete and valid satisfaction of the conditions set forth in Section 4(h).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To the extent required for Incentive Stock Option status under Section 422 of the Code, the aggregate Fair Market Value (determined as of the Date of Grant) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year under the Plan and/or any other stock option plan of the Company (within the meaning of Section 424 of the Code) shall not exceed $100,000. To the extent any Option granted under the Plan which is intended to be an Incentive Stock Option exceeds the limitation set forth above in this Section 4(j), such Option shall be treated as a Nonqualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Notwithstanding the foregoing provisions of this Section 4, Incentive Stock Options may be granted only to eligible Participants who are "employees" (as defined in Section 3401(c) of the Code) of the Company, or a "parent" or "subsidiary" of the Company (each as defined in Section 424(e) and (f) of the Code). Eligible Participants who are employees of a Subsidiary may be granted Options under the Plan only if the Subsidiary qualifies as an "eligible issuer of service recipient stock" within the meaning of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (l) **Termination of Service**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding anything to the contrary set forth in the Plan, if a Participant's service with the Company or any Subsidiaries is terminated for Cause: (i) any Option not already exercised will be immediately and automatically forfeited as of the date of such termination without consideration therefor, and (ii) any Option Shares for which the Company has not yet delivered share certificates will be immediately and automatically forfeited and the Company will refund to the Participant the Option Price paid for such Option Shares, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If a Participant's service with the Company or any of its Subsidiaries terminates by reason of death, any Option held by such Participant may thereafter be exercised, to the extent then exercisable or on such accelerated basis as the Board may determine, at or after grant, by the legal representative of the estate or by the legatee of the Participant under the will of the Participant, for a period expiring (1) at such time as may be specified by the Board at or after the time of grant (which, in the event that the Participant resides in the State of California, shall be no less than 6 months from the date of termination), (2) if not specified by the Board, then 12 months from the date of death, or (3) if sooner than the applicable period specified under (1) or (2) above, then upon the expiration of the stated term of such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If a Participant's service with the Company or any of its Subsidiaries terminates by reason of Disability, any Option held by such Participant may thereafter be exercised by the Participant or his or her personal representative, to the extent it was exercisable at the time of termination, or on such accelerated basis as the Board may determine at or after grant, for a period expiring (1) at such time as may be specified by the Board at or after the time of grant (which, in the event that the Participant resides in the State of California, shall be no less than 6 months from the date of termination), (2) if not specified by the Board, then 12 months from the date of termination of service, or (3) if sooner than the applicable period specified under (1) or (2) above, then upon the expiration of the stated term of such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If a Participant's service with the Company or any Subsidiary terminates for any reason other than death, Disability or Cause, any Option held by such Participant may thereafter be exercised by the Participant, to the extent it was exercisable at the time of such termination, or on such accelerated basis as the Board may determine at or after grant, for a period expiring (1) at such time as may be specified by the Board at or after the time of grant (which, in the event that the Participant resides in the State of California, shall be no less than 30 days from the date of termination), (2) if not specified by the Board, then 90 days from the date of termination of service, or (3) if sooner than the applicable period specified under (1) or (2) above, then upon the expiration of the stated term of such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. **Company's Repurchase Right**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall have the right to repurchase some or all of the Option Shares of a Participant upon the occurrence of any of the events specified in Section 5(b) below (the "Repurchase Event"). The Repurchase Right may be exercised by the Company within 180 days following the date of such event (the "Repurchase Period"). The Repurchase Right shall be exercised by the Company by giving the holder written notice on or before the last day of the Repurchase Period of its intention to exercise the Repurchase Right, and, together with such notice, tendering to the holder an amount equal to the Fair Market Value of the Option Shares, as provided in Section 5(c); <u>provided</u>, <u>however</u>, that if the Repurchase Event was the termination of Participant's employment or other service with the Company and its Subsidiaries for Cause, the amount payable on exercise of the Repurchase Right shall equal the lesser of Fair Market Value of the Option Shares and the Option Price the Participant had paid for the exercise of the Option Shares. The Company may assign the Repurchase Right to one or more persons. Upon exercise of the Repurchase Right in the manner provided in this Section 5(a), the Participant shall promptly deliver to the Company the stock certificate or certificates representing the Option Shares being repurchased, duly endorsed and free and clear of any and all liens, charges and encumbrances. Upon the Company's receipt of the certificates from the Participant (or at such later date as is determined to be necessary by the Board to avoid any breach by the Company of any agreement to which it is a party), the Company shall deliver to the Participant a check for the purchase price of the Option Shares being purchased; <u>provided</u>, <u>however</u>, that the Company may pay the purchase price for such Option Shares by offsetting and canceling any indebtedness then owed by the Participant to the Company. If Option Shares are not purchased under the Repurchase Right, the Participant and his or her successor in interest, if any, will hold any such shares in his or her possession subject to all of the provisions of this Section 5 and Section 6 hereof. The Repurchase Right described in this Section 5 of the Plan shall be in addition to the rights of the Company described in Section 4(d)(ii) of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Company's Right to Exercise Repurchase Right.** The Company shall have the Repurchase Right in the event that any of the following events shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The termination of the Participant's employment or other service with the Company and its Subsidiaries for any reason whatsoever, regardless of the circumstances thereof, and including without limitation upon death, disability, retirement, discharge or resignation for any reason, whether voluntary or involuntarily; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The (x) filing of a voluntary petition under any bankruptcy or insolvency law, or a petition for the appointment of a receiver or the making of an assignment for the benefit of creditors, with respect to the Participant, or (y) the Participant being subjected involuntarily to a petition or assignment or to an attachment or other legal or equitable interest with respect to his or her assets, which involuntary petition or assignment or attachment is not discharged within 60 days after its date or (z) the Participant being subject to a transfer of Option Shares by operation of law, except by reason of death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Determination of Fair Market Value.** For purposes of this Section 5, the Fair Market Value of the Option Shares shall be determined by the Board as of a date no more than 90 days prior to the date on which the Company provides written notice (pursuant to Section 5(a)) of its exercise of the Repurchase Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Expiration of Company's Repurchase Right.** The Repurchase Right of the Company set forth in this Section 5 of the Plan shall remain in effect until the closing of an Initial Public Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Other Company Documents.** Notwithstanding the provisions of this Section 5 or this Plan in general, the repurchase rights set forth herein shall be superseded by any similar or comparable rights or provisions to which the Participant is subject or made subject under or by any other Company agreement, instrument or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. **Company's Right of First Refusal.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Exercise of Right.** If at a time other than within the period specified in Section 5(a) the Participant desires to transfer all or any part of the Option Shares to any person other than the Company (an "Offeror"), the Participant shall: (i) obtain in writing an arms' length, bona fide offer, subject only to customary (if any) closing conditions (the "Offer"), for the purchase thereof from the Offeror; and (ii) give written notice (the "Option Notice") to the Company setting forth the Participant's desire to transfer such shares, which Option Notice shall be accompanied by a photocopy of the Offer and shall set forth the name and address of the Offeror and the price and terms of the Offer. Upon receipt of the Option Notice, the Company shall have an assignable option to purchase any or all of such Option Shares (the "Company Option Shares") specified in the Option Notice, such option to be exercisable by giving, within 10 days after receipt of the Option Notice, a written counter notice to the Participant. If the Company elects to purchase any or all of such Company Option Shares, it shall be obligated to purchase, and the Participant shall be obligated to sell to the Company, such Company Option Shares at the price and terms indicated in the Offer within 30 days from the date of delivery by the Company of such counter notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Sale of Option Shares to Offeror.** The Participant may, for 60 days after the expiration of the 10 day option period as set forth in Section 6(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of such Company Option Shares not purchased or agreed to be purchased by the Company or its assignee. If any or all of such Company Option Shares are not sold pursuant to an Offer within the time permitted above, the unsold Company Option Shares shall remain subject to the terms of this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Adjustments for Changes in Capital Structure.** If there shall be any change in the Shares of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, or the like, the restrictions contained in this Section 6 shall apply with equal force to additional and/or substitute securities, if any, received by the Participant in exchange for, or by virtue of his or her ownership of, Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Failure to Deliver Option Shares.** If the Participant fails or refuses to deliver on a timely basis duly endorsed certificates representing Company Option Shares to be sold to the Company or its assignee pursuant to this Section 6, the Company shall have the right to deposit the purchase price for such Company Option Shares in a special account with any bank or trust company, giving notice of such deposit to the Participant, whereupon such Company Option Shares shall be deemed to have been purchased by the Company. All such monies shall be held by the bank or trust company for the benefit of the Participant. All monies deposited with the bank or trust company but remaining unclaimed for two years after the date of deposit shall be repaid by the bank or trust company to the Company on demand, and the Participant shall thereafter look only to the Company for payment. The Company may place a legend on any certificate for Option Shares delivered to the Participant reflecting the restrictions on transfer provided in this Section 6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Expiration of Company's Right of First Refusal.** The first refusal rights of the Company set forth above shall remain in effect until the closing of an Initial Public Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Other Company Documents.** Notwithstanding the provisions of this Section 6 or this Plan in general, the rights of first refusal set forth herein shall be superseded by any similar or comparable rights or provisions to which the Participant is subject or made subject under or by any other Company agreement, instrument or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Adjustments**. The Board shall make or provide for such adjustments in the Option Price and in the number or kind of shares or other securities covered by outstanding Options as the Board in its sole discretion determines to be equitably required in order to prevent dilution or enlargement of the rights of Participants that would otherwise result from any (a) stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) merger, consolidation, separation, reorganization, partial or complete liquidation, issuance of rights or warrants to purchase stock, or (c) other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event, the Board, in its discretion, may provide in substitution for any or all outstanding Options under this Plan such alternative consideration (including cash) as it, in good faith, determines to be equitable in the circumstances and may require in connection therewith the surrender of all Options so replaced. The Board may also make or provide for such adjustments in the number of shares specified in Section 3 of this Plan as the Board in its sole discretion, exercised in good faith, may determine is appropriate to reflect any transaction or event described in this Section 7. Notwithstanding the foregoing, the Board shall not make any adjustment pursuant to this Section 7 that would (i) cause any Option intended to qualify as an Incentive Stock Option to fail to so qualify, (ii) cause an Option that is otherwise exempt from Section 409A of the Code to become subject to Section 409A, or (iii) cause an Option that is subject to Section 409A of the Code to fail to satisfy the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Stock Option Agreement; Stockholder Agreement**. The form of each Stock Option Agreement shall be prescribed, and any Stock Option Agreement evidencing an outstanding Option may with the concurrence of the affected Participant be amended, by the Board, provided that the terms and conditions of each Stock Option Agreement and amendment are not inconsistent with this Plan and that no amendment shall adversely affect the rights of the Participant with respect to any outstanding Option without the Participant's consent. The Board may require that, upon exercise of any Award granted under the Plan, the Participant shall become party to, or otherwise agree to by bound by, (i) any Stockholder Agreement the Board may require and (ii) any other agreement the Board may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Withholding**. No later than the date as of which an amount first becomes includible in the gross income of the Participant for applicable tax purposes with respect to any Option under the Plan, the Participant shall pay to the Company, or make arrangements satisfactory to the Board regarding the payment of, any Federal, state, local, foreign or other taxes of any kind required by law to be withheld with respect to such amount. Unless otherwise determined by the Board, the minimum required withholding obligations may be settled with Shares, including Shares that are part of the award that gives rise to the withholding requirement. The obligations of the Company under this Plan shall be conditional on such payment or arrangements and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Governing Law**. The Plan and all Options granted and actions taken thereunder shall be governed by and construed in accordance with the laws of the State of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Fractional Shares**. The Company shall not be required to issue any fractional Shares pursuant to this Plan. The Board may provide for the elimination of fractional Shares or for the settlement of fractional Shares for cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Administration**. This Plan shall be administered by the Board, which may from time to time delegate all or any part of its authority under this Plan to a committee of not less than two Directors appointed by the Board. To the extent of any such delegation, references in this Plan to the Board shall also refer to the committee. A majority of the members of the committee shall constitute a quorum, and any action taken by a majority of the members of the committee who are present at any meeting of the committee at which a quorum is present, or any actions of the committee that are unanimously approved by the members of the committee in writing, shall be the acts of the committee. Any determination by the Board pursuant to any provision of this Plan shall be final, binding and conclusive. No member of the Board shall be liable for any act, omission, interpretation, construction or determination made in connection with the Plan in good faith, and each member of the Board shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including without limitation reasonable attorneys' fees) arising or resulting therefrom to the fullest extent permitted by law, indemnification agreement, and/or under any directors' and officers' liability insurance coverage which may be in effect from time to time. The Board shall have no obligation to treat Participants or eligible Participants uniformly, and the Committee may make determinations made under the Plan selectively among Participants who receive or who are eligible to receive Options (whether or not such Participants or eligible Participants are similarly situated). Directors who are eligible for Awards or have received Awards may vote on any matters affecting the administration of the Plan or the grant of Awards, except that no such member will act upon the grant of an Award to himself or herself, but any such member may be counted in determining the existence of a quorum at any meeting of the Board during which action is taken with respect to the grant of Awards to himself or herself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Lock-Up Agreement**. The Company may, in its discretion, require in connection with an Initial Public Offering that a Participant agree that any Option Share not be sold, offered for sale or otherwise disposed of for a period of time as determined by the Board, provided at least a majority of the Company's Directors and officers who hold Options or Shares at such time are similarly bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Foreign Employees**. In order to facilitate the making of any grant or combination of grants under this Plan, the Board may provide for such special terms for awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America as the Board may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Board may approve such sub-plans or supplements to or amendments, restatements or alternative versions of this Plan as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of this Plan as in effect for any other purpose, and the Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15. **Amendment, Etc**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may at any time and from time to time amend the Plan in whole or in part.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case of termination of employment or other service by reason of death, Disability or normal or early retirement, or in the case of hardship or other special circumstances, of a Participant who holds an Option not immediately exercisable in full, the Board may, in its sole discretion, accelerate the time at which such Option may be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Plan shall not confer upon any Participant any right with respect to continuance of employment or other service with the Company or any Subsidiary, nor shall it interfere in any way with any right the Company or any Subsidiary would otherwise have to terminate such Participant's employment or other service at any time. No individual shall have the right to be selected to receive an Option under the Plan, or, having been so selected, to be selected to receive future Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) By accepting any benefit under the Plan, each Participant and each person claiming under or through any such Participant shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Board or the Company, in any case in accordance with the terms and conditions of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything to the contrary set forth in the Plan, upon or in anticipation of any Change in Control of the Company or any of its Affiliates, the Board may, in its sole and absolute discretion and without the need for the consent of any Participant, take one or more of the following actions contingent upon the occurrence of that Change in Control: (i) cause any or all outstanding Options held by Participants affected by the Change in Control to become vested and immediately exercisable, in whole or in part; (ii) cause any or all outstanding unvested Options held by Participants affected by the Change in Control to be cancelled without consideration therefor; (iii) cancel any Option in exchange for a substitute option in a manner consistent with the requirements of Treas. Reg. §1.424-1(a) (notwithstanding the fact that the original Option may never have been intended to satisfy the requirements for treatment as an Incentive Stock Option); or (iv) cancel any Option held by a Participant affected by the Change in Control in exchange for cash and/or other substitute consideration with a value equal to (A) the number of Shares subject to that Option, multiplied by (B) the difference, if any, between the Fair Market Value per Share on the date of the Change in Control and the exercise price of that Option; <u>provided</u>, that if the Fair Market Value per Share on the date of the Change in Control does not exceed the exercise price of any such Option, the Board may cancel that Option without any payment of consideration therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything contained in the Plan or in a Stock Option Agreement to the contrary, in the event of a Change in Control, each Participant shall, except to the extent otherwise determined by the Board, be subject to substantially the same escrow, indemnification and similar obligations, contingencies and encumbrances contained in the definitive agreement relating to the Change in Control as other stockholders of the Company may be subject (including, without limitation, the requirement to contribute a proportionate number of Shares issued as a result of the exercise or vesting of an Award, or any cash or property that may be received upon exercise or exchange of an Award, to an escrow fund, or otherwise have a proportionate amount of such Shares, cash or other property encumbered by the indemnification, escrow and similar provisions of such definitive agreement). By accepting an Award, a Participant agrees to execute such documents and instruments as the Board may reasonably require for the Participant to be bound by such obligations. In the event that a Participant fails or refuses to execute such documents and instruments, such Participant's Award (to the extent outstanding as of the date of the Change in Control) shall, unless otherwise determined by the Board, be canceled and be of no further force and effect upon the consummation of a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Effective Date**. This Plan shall be effective immediately; <u>provided</u>, <u>however</u>, that the effectiveness of this Plan is conditioned on its approval by the stockholders of the Company in accordance with Delaware law within 12 months after the date this Plan is adopted by the Board. All awards under this Plan shall be null and void if the Plan is not approved by the stockholders within such 12-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Securities Laws.** The Board shall condition any Award upon compliance with applicable securities laws. The Board may require each Participant to represent to and agree with the Company in writing that the Participant is acquiring securities of the Company for investment purposes and without a view to distribution thereof and as to such other matters as the Board believes are appropriate. The certificate evidencing any Award and any securities issued pursuant thereto may include any legend which the Board deems appropriate to reflect any restrictions on transfer and compliance with applicable securities laws. All certificates for Option Shares or other securities delivered under the Plan will be subject to such share-transfer orders and other restrictions as the Board may deem advisable under the rules, regulations, and other requirements of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, any stock exchange upon which the Option Shares are then listed, and any other applicable federal or state securities laws, and the Board may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. **Invalid Provisions**. In the event that any provision of this Plan is found to be invalid or otherwise unenforceable under any applicable law, such invalidity or unenforceability will not be construed as rendering any other provisions contained herein as invalid or unenforceable, and all such other provisions will be given full force and effect to the same extent as though the invalid or unenforceable provision was not contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Term**. No Option shall be granted pursuant to this Plan more than 10 years after the earlier of (a) the date on which this Plan is first approved by the stockholders of the Company or (b) the date the Plan is adopted by the Board, but awards granted prior to such date shall continue in effect thereafter subject to the terms thereof and of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **Notices**. Any notice to be given to the Company pursuant to the provisions of the Plan will be given by registered or certified mail, postage prepaid, and, addressed, if to the Company to its Secretary (or such other person as the Company may designate in writing from time to time) at its principal executive office, and, if to a Participant, to the address given beneath his or her signature on his or her Stock Option Agreement, or at such other address as such Participant may hereafter designate in writing to the Company. Any such notice will be deemed duly given on the date and at the time delivered via personal, courier or recognized overnight delivery service or on the date five (5) days after the date of the mailing (which will be by regular, registered or certified mail).

END OF DOCUMENT

**AMENDMENT NO. 1 TO IMMERSED INC.**

**2017 STOCK OPTION PLAN**

The Immersed Inc. 2017 Stock Option Plan (the "**Plan**") is hereby amended, effective as of September 30, 2019, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first sentence of Section 3 of the Plan is hereby deleted
in its entirety and replaced with the following:

"**Shares Available**. Subject to adjustment as provided in Section 7 of this Plan, the total number of Shares which may be issued and sold under Options granted pursuant to this Plan shall not exceed 1,874,022 Shares, any or all of which may be issued under Incentive Stock Options. Such shares may be treasury shares or shares of original issue or a combination of the foregoing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as explicitly set forth herein, the Plan will remain in full force and effect.

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| | |
|:---|:---|
| **IMMERSED INC.** | **IMMERSED INC.** |
| By: | /s/ Ranjit Bijoy |
| Name: | Ranjit Bijoy |
| Title: | Chief Executive Officer |

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**AMENDMENT NO. 2 TO IMMERSED INC.**

**2017 STOCK OPTION PLAN**

The Immersed Inc. 2017 Stock Option Plan (the "**Plan**") is hereby amended, effective as of May 13, 2021, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first sentence of Section 3 of the Plan is hereby deleted
in its entirety and replaced with the following:

"**Shares Available**. Subject to adjustment as provided in Section 7 of this Plan, the total number of Shares which may be issued and sold under Options granted pursuant to this Plan shall not exceed 7,480,000 Shares, any or all of which may be issued under Incentive Stock Options. Such shares may be treasury shares or shares of original issue or a combination of the foregoing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as explicitly set forth herein, the Plan will remain in full force and effect.

---

| | |
|:---|:---|
| **IMMERSED INC.** | **IMMERSED INC.** |
| By: | /s/ Ranjit Bijoy |
| Name: | Ranjit Bijoy |
| Title: | Chief Executive Officer |

---

**AMENDMENT NO. 3 TO IMMERSED INC.**

**2017 STOCK OPTION PLAN**

The Immersed Inc. 2017 Stock Option Plan (the "**Plan**") is hereby amended, effective as of February 1, 2022, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first sentence of Section 3 of the Plan is hereby deleted in its entirety and replaced with the following:

"**Shares Available**. Subject to adjustment as provided in Section 7 of this Plan, the total number of Shares which may be issued and sold under Options granted pursuant to this Plan shall not exceed 12,000,000 Shares, any or all of which may be issued under Incentive Stock Options. Such shares may be treasury shares or shares of original issue or a combination of the foregoing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as explicitly set forth herein, the Plan will remain in full force and effect.

---

| | |
|:---|:---|
| **IMMERSED INC.** | **IMMERSED INC.** |
| By: | /s/ Ranjit Bijoy |
| Name: | Ranjit Bijoy |
| Title: | Chief Executive Officer |

---

**AMENDMENT NO. 4 TO IMMERSED INC.**

**2017 STOCK OPTION PLAN**

The Immersed Inc. 2017 Stock Option Plan (the "**Plan**") is hereby amended, effective as of November 14, 2022, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The first sentence of Section 3 of the Plan is hereby deleted in its entirety and replaced with the following:

"**Shares Available**. Subject to adjustment as provided in Section 7 of this Plan, the total number of Shares which may be issued and sold under Options granted pursuant to this Plan shall not exceed 14,062,398 Shares, any or all of which may be issued under Incentive Stock Options. Such shares may be treasury shares or shares of original issue or a combination of the foregoing."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as explicitly set forth herein, the Plan will remain in full force and effect.

---

| | |
|:---|:---|
| **IMMERSED INC.** | **IMMERSED INC.** |
| By: | /s/ Ranjit Bijoy |
| Name: | Ranjit Bijoy |
| Title: | Chief Executive Officer |

---

**AMENDMENT NO. 5 TO IMMERSED INC.**

**2017 STOCK OPTION PLAN**

The Immersed Inc. 2017 Stock Option Plan (the "**Plan**") is hereby amended, effective as of October 20, 2025, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The definition of "Shares" is deleted in its entirety and replaced with the following:

"**Shares**" means shares of the Series A Common Stock, $0.00001 par value, of the Company or any security into which such shares may be changed by reason of any transaction or event of the type referred to in Section 7 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Except as explicitly set forth herein, the Plan will remain in full force and effect.

---

| | |
|:---|:---|
| **IMMERSED INC.** | **IMMERSED INC.** |
| By: | /s/ Renji Bijoy |
| Name: | Renji Bijoy |
| Title: | Chief Executive Officer |

---

## Ex1A-6

**Exhibit 6.6**

**IMMERSED INC.**

**2025 Equity Incentive Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.*** ***Purpose***. The purpose of this Immersed Inc. 2025 Equity Incentive Plan is to assist Immersed Inc., a Delaware corporation (together with any successor thereto, the "<u>Company</u>"), and its Affiliates (as hereinafter defined) in attracting, motivating, retaining and rewarding high-quality executives and other employees, officers, directors, consultants and other Persons who provide services to the Company or any of its Affiliates by enabling such Persons to acquire or increase a proprietary interest in the Company in order to strengthen the mutuality of interests between such Persons and the Company's stockholders, and providing such Persons with performance incentives to expend their maximum efforts in the creation of stockholder value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. ***Definitions***. For purposes of the Plan, the following terms shall be defined as set forth below, in addition to such terms defined in <u>Section 1</u> hereof and elsewhere herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Affiliate</u>" of any Person means any other Person controlled by, controlling or under common control with such Person; <u>provided</u> that the Company and its Subsidiaries shall not be deemed to be Affiliates of (i) any stockholder of the Company or (ii) any Person that would qualify as an Affiliate of the Company and its Subsidiaries solely by virtue of such Person's affiliation with any stockholder of the Company. As used in this definition, "control" (including, with its correlative meanings, "controlling," "controlled by" and "under common control with") shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities, by contract or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Award</u>" means any Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Share granted as a bonus or in lieu of another Award, Dividend Equivalent, Other Stock-Based Award or Performance Award, together with any other right or interest relating to Shares or other property (including cash), granted to a Participant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Award Agreement</u>" means any written agreement, contract or other instrument or document, which may be electronic, evidencing any Award granted by the Committee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Beneficiary</u>" means the individual, individuals, trust or trusts that have been designated by a Participant in his or her most recent written beneficiary designation filed with the Committee to receive the benefits specified under the Plan upon such Participant's death or to which Awards or other rights are Transferred if and to the extent permitted under <u>Section 9(b)</u> hereof. If, upon a Participant's death, there is no designated Beneficiary or surviving designated Beneficiary, then the term Beneficiary means the Participant's estate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Beneficial Owner</u>" and "<u>Beneficial Ownership</u>" shall have the meaning ascribed to such terms in Rule 13d-3 under the Exchange Act and any successor to such Rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Board</u>" means the Company's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Bylaws</u>" means the Bylaws of the Company, as the same may be amended, supplemented, restated and/or replaced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Cause</u>" shall, with respect to a Participant, have the meaning set forth in the Participant's Award Agreement, or if there is no definition of cause in the Participant's Award Agreement, shall have the meaning set forth in the Participant's written employment agreement, offer letter or consulting agreement with the Company or any of its Affiliates, and in the absence of a definition of cause in the Participant's Award Agreement and the absence of a written employment agreement, offer letter or consulting agreement (or a definition of cause in such agreement), shall mean: (i) the commission of (A) a felony or a crime involving moral turpitude or (B) any other act or omission (1) involving dishonesty, disloyalty or fraud with respect to the Company or any of its Affiliates or any of their respective customers, clients, suppliers, vendors, franchisors, licensors, licensees, employees, advisors or other business relations or (2) which has had or the Committee reasonably believes could have a material negative effect upon the Company or any of its Affiliates, (ii) substantial and repeated failure to perform Participant's duties of employment or other engagement, (iii) substantial and repeated failure to perform Participant's duties as reasonably directed by the board of directors or board of directors of the entity that employs or engages Participant, (iv) gross negligence, willful misconduct or breach of fiduciary duty with respect to the Company or any of its Affiliates or any of their respective customers, clients, suppliers, vendors, franchisors, licensors, licensees, employees, advisors or other business relations, (v) reporting to work under the influence of alcohol or illegal drugs, (vi) any conduct causing or reasonably expected to cause the Company or any of its Affiliates public disgrace or disrepute or economic harm, (vii) any act or omission aiding or abetting a competitor, supplier, vendor, client or customer of the Company or any of its Affiliates to the disadvantage or detriment of the Company or any of its Affiliates, (viii) any breach by Participant of an Award Agreement or any other agreement between Participant and the Company or any of its Affiliates, including the breach of any restrictive covenant contained in any agreement between Participant, on the one hand, and the Company or any of its Affiliates, on the other hand, and/or (ix) a material failure to observe any policies or standards of the Company or any of its Affiliates in effect from time to time (including nondiscrimination and sexual harassment policies). Notwithstanding the foregoing, in the case of an Award which is intended to comply with section 25102(o) of the California Corporations Code, such event must also constitute "cause" under applicable law. The good faith determination by the Committee of whether there was "Cause" for termination shall be final and binding for all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Certificate of Incorporation</u>" means the Company's Amended and Restated Certificate of Incorporation, as the same may be amended, supplemented, restated and/or replaced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Change in Control</u>" shall, with respect to an Award, have the definition ascribed to such term in the Award Agreement for such Award or in the absence of such a definition shall mean a "Deemed Liquidation Event" as such term is defined in the Company's certificate of incorporation (as in effect from time to time), or if such term is not defined in the Company's certificate of incorporation, then it shall mean, unless otherwise defined in an Award agreement, the occurrence of any one or more of the following: (i) the sale of all of the outstanding equity interests of the Company to an unrelated person or entity; (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity; (iii) a merger, reorganization or consolidation after which the holders of the voting stock of the Company immediately prior to such transaction (and their related persons or entities) own less than fifty percent (50%) of the outstanding voting power of the surviving or resulting entity immediately upon completion of such transaction; or (iv) the dissolution or liquidation of the Company; <u>provided</u>, <u>however</u>, no transaction that is undertaken for purposes of raising capital for the Company, as determined by the Committee in good faith, shall constitute a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Code</u>" means the Internal Revenue Code of 1986, as amended from time to time, including regulations thereunder and successor provisions and regulations thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Consultant</u>" means any Person (other than an Employee or a Director, solely with respect to rendering services in such Person's capacity as a director) who is engaged by the Company or any of its Affiliates to render consulting or advisory services to the Company or such Affiliate, so long as (i) such Person renders bona fide services that are not in connection with the offer and sale of the Company's securities in a capital-raising transaction, (ii) such Person does not directly or indirectly promote or maintain a market for the Company's securities, and (iii) the identity of such Person would not preclude the Company from offering or selling securities to such Person pursuant to the Plan in reliance on either the exemption from registration provided by Rule 701 under the Securities Act of 1933 or, if the Company is required to file reports pursuant to Section 13 or 15(d) of the Exchange Act, registration on a Form S-8 Registration Statement under the Securities Act of 1933.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Continuous Service</u>" means the uninterrupted provision of services to the Company or any of its Affiliates in any capacity of Employee, Director, Consultant or other service provider. Continuous Service shall not be considered to be interrupted in the case of (i) any approved leave of absence, (ii) transfers among the Company, any of its Affiliates, or any successor entities, in any capacity of Employee, Director, Consultant or other service provider, or (iii) any change in status from one type of Eligible Person to another type of Eligible Person (for example, from Employee to Consultant) as long as the Person remains in the continuous service of the Company or an Affiliate in any capacity of Employee, Director, Consultant or other service provider (except as otherwise provided in the Award Agreement). In the event that a Participant is employed or engaged by an entity that at the time of grant of such Participant's Award qualified as an "Affiliate" of the Company for purposes of the Plan but such entity thereafter ceases to qualify as an "Affiliate" of the Company for purposes of the Plan, such Participant's Continuous Service shall, unless otherwise determined by the Committee, automatically cease as of the date on which such entity ceases to qualify as an "Affiliate" of the Company for purposes of the Plan notwithstanding that such Participant may continue to be employed or engaged by such entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Director</u>" means a member of the Board or the board of directors of any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Disability</u>" means a permanent and total disability (within the meaning of Section 22(e) of the Code), as determined by a medical doctor satisfactory to the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Dividend Equivalent</u>" means a right, granted to a Participant under <u>Section 6(g)</u> hereof, to receive cash, Shares, other Awards or other property equal in value to regular dividends paid with respect to a specified number of Shares, or other periodic payments made by the Company to a holder of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Effective Date</u>" means the effective date of the Plan, which shall be December 29, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Eligible Person</u>" means each officer, Director, Employee, Consultant and other Person who provides services to the Company or any of its Affiliates. The foregoing notwithstanding, only Employees of the Company, or any parent corporation or subsidiary corporation of the Company (as those terms are defined in Sections 424(e) and (f) of the Code, respectively), shall be Eligible Persons for purposes of receiving any Incentive Stock Options. An Employee on leave of absence may, in the discretion of the Committee, be considered as still in the employ of the Company or an Affiliate for purposes of eligibility for participation in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Employee</u>" means any individual, including an officer or Director, who is an employee of the Company or any of its Affiliates, or is a prospective employee of the Company or any of its Affiliates (provided that vesting is conditioned upon such individual becoming an employee of the Company or any of its Affiliates). The payment of a director's fee by the Company or an Affiliate shall not be sufficient to constitute "employment" by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Fair Market Value</u>" means the fair market value of Shares, Awards or other property on the date as of which the value is being determined, as determined by the Committee, or under procedures established by the Committee, subject to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If, on such date, the Shares are listed on a national or regional securities exchange or market system, the Fair Market Value of a Share shall be the closing price of a Share (or the mean of the closing bid and asked prices of a Share if the Share is so quoted instead) as quoted on the Nasdaq Stock Market or such other national or regional securities exchange or market system constituting the primary market for the Shares, as reported in <u>The Wall Street Journal</u> or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Shares have traded on such securities exchange or market system, the date on which the Fair Market Value shall be established shall be the last day on which the Shares were so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If, on such date, the Shares are not listed on a national or regional securities exchange or market system, the Fair Market Value of a Share shall be as determined by the Committee in good faith without regard to any restriction other than a restriction which, by its terms, will never lapse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>Incentive Stock Option</u>" means any Option intended to be designated as an incentive stock option within the meaning of Section 422 of the Code or any successor provision thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>Independent</u>", when referring to either the Board or members of the Committee, shall have the same meaning as used in the applicable rules of any applicable Listing Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Listing Market</u>" means the national securities exchange on which any securities of the Company are listed for trading, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "<u>Option</u>" means a right granted to a Participant under <u>Section 6(b)</u> hereof, to purchase Shares or other Awards at a specified price during specified time periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "<u>Optionee</u>" means a Person to whom an Option is granted under the Plan or any Person who succeeds to the rights of such Person under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "<u>Other Stock-Based Awards</u>" means Awards granted to a Participant under <u>Section 6(i)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "<u>Participant</u>" means a Person who has been granted an Award under the Plan which remains outstanding, including a Person who is no longer an Eligible Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "<u>Performance Award</u>" means any Award of Performance Shares or Performance Units granted pursuant to <u>Section 6(h)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "<u>Performance Period</u>" means that period established by the Committee at the time any Performance Award is granted or at any time thereafter during which any performance goals specified by the Committee with respect to such Award are to be measured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "<u>Performance Share</u>" means any grant pursuant to <u>Section 6(h)</u> hereof of a unit valued by reference to a designated number of Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including cash, Shares, other property, or any combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "<u>Performance Unit</u>" means any grant pursuant to <u>Section 6(h)</u> hereof of a unit valued by reference to a designated amount of property (including cash) other than Shares, which value may be paid to the Participant by delivery of such property as the Committee shall determine, including cash, Shares, other property, or any combination thereof, upon achievement of such performance goals during the Performance Period as the Committee shall establish at the time of such grant or thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "<u>Person</u>" means, except as otherwise expressly set forth herein, an individual, a partnership (general or limited), a joint venture, a corporation, an association, a joint stock company, a limited liability company, a trust, an unincorporated organization or a government or any department or agency or political subdivision thereof. Notwithstanding the foregoing, for purposes of the definition of "Change in Control", "Person" shall have, in lieu of the meaning ascribed to such term the preceding sentence, the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, and shall include a "group" as defined in Section 13(d) thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "<u>Plan</u>" shall mean this Immersed Inc. 2025 Equity Incentive Plan and <u>Appendix A</u>, attached hereto, each as amended and/or restated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "<u>Publicly Held Corporation</u>" shall mean an issuer as defined in Section 3 of the Exchange Act, the securities of which are required to be registered under Section 12 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "<u>Restricted Stock</u>" means any Share issued with such risks of forfeiture and other lawful restrictions as the Committee, in its sole discretion, may impose in the Award Agreement (including any restriction on the right to vote such Share and restrictions on the right to receive dividends), which restrictions may lapse separately or in combination at such time or times, in installments or otherwise, as the Committee may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "<u>Restricted Stock Award</u>" means an Award of Restricted Stock granted to a Participant under <u>Section 6(d)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "<u>Restricted Stock Unit</u>" means a right to receive Shares, including Restricted Stock, cash measured based upon the value of Shares or a combination thereof, at the end of a specified deferral period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "<u>Restricted Stock Unit Award</u>" means an Award of Restricted Stock Unit granted to a Participant under <u>Section 6(e)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "<u>Restriction Period</u>" means the period of time specified by the Committee that Restricted Stock Awards shall be subject to such restrictions on transferability, risk of forfeiture and other lawful restrictions, if any, as the Committee may impose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "<u>Rule 16b-3</u>" means Rule 16b-3, as from time to time in effect and applicable to the Plan and Participants, promulgated by the Securities and Exchange Commission under Section 16 of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "<u>Shares</u>" means the shares of the Company's common stock, $0.00001 par value per share, and such other securities as may be substituted (or resubstituted) for Shares pursuant to <u>Section 8(b)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "<u>Stock Appreciation Right</u>" means a right granted to a Participant under <u>Section 6(c)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "<u>Substitute Awards</u>" means Awards granted or Shares issued by the Company in assumption of, or in substitution or exchange for, awards previously granted, or the right or obligation to make future awards, by a company (i) acquired by the Company or any of its Affiliates, (ii) which becomes an Affiliate of the Company after the date hereof, or (iii) with which the Company or any of its Affiliates combines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "<u>Subsidiary</u>" means any corporation or other entity of which the securities or other ownership interests having the voting power to elect a majority of the board of directors or other governing body are, at the time of determination, owned by the Company, directly or through one or more Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Transfer</u>" means (in either the noun or the verb form, including with respect to the verb form, all conjugations thereof within their correlative meanings) with respect to any security, the gift, sale, assignment, transfer, pledge, hypothecation or other disposition (whether for or without consideration, whether directly or indirectly, and whether voluntary, involuntary or by operation of law) of such security or any interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. ***Administration.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Authority of the Committee</u>. Subject to any applicable requirements of the Certificate of Incorporation, Bylaws, any Stockholder-Related Agreement and any other agreement that governs the appointment of committees of the Board, the Plan shall be administered by the Committee; provided, however, that except as otherwise expressly provided in the Plan, the Board may exercise any power or authority granted to the Committee under the Plan and in that case, references herein shall be deemed to include references to the Board. The Committee shall have full and final authority, subject to and consistent with the provisions of the Plan, to select Eligible Persons to become Participants, grant Awards, determine the type, number and other terms and conditions of, and all other matters relating to, Awards, prescribe Award Agreements (which need not be identical for each Participant) and rules and regulations for the administration of the Plan, construe and interpret the Plan and Award Agreements and correct defects, supply omissions or reconcile inconsistencies therein, and to make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan. In exercising any discretion granted to the Committee under the Plan or pursuant to any Award, the Committee shall not be required to follow past practices, act in a manner consistent with past practices, or treat any Eligible Person or Participant in a manner consistent with the treatment of any other Eligible Persons or Participants. Decisions of the Committee shall be final, conclusive and binding on all Persons, including the Company, any of its Affiliates or any Participant or Beneficiary, or any transferee under <u>Section 9(b)</u> hereof or any other Person claiming rights from or through any of the foregoing Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Manner of Exercise of Committee Authority</u>. In the event that the Company becomes a Publicly Held Corporation, the Committee, and not the Board, shall exercise sole and exclusive discretion (i) on any matter relating to a Participant then subject to Section 16 of the Exchange Act with respect to the Company to the extent necessary in order that transactions by such Participant shall be exempt under Rule 16b-3 under the Exchange Act, and (ii) with respect to any Award to an Independent Director. Any action of the Committee shall be final, conclusive and binding on all Persons, including the Company, its Affiliates, Eligible Persons, Participants, Beneficiaries, transferees under <u>Section 9(b)</u> hereof or other Persons claiming rights from or through a Participant, and stockholders. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. Subject to applicable law, the Committee may delegate to a subcommittee of the Committee, or officers or managers of the Company or any of its Affiliates, or a committee of the Board or the governing body of any Affiliate, the authority, subject to such terms and limitations as the Committee shall determine, to perform such functions, including administrative functions as the Committee may determine to the extent that such delegation will not result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company, if applicable. The Committee may appoint agents to assist it in administering the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Limitation of Liability</u>. The Committee and the Board, and each member thereof, shall, in the performance of their, his or her duties under the Plan, including in the administration of the Plan, be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any of the Company's officers or employees, or by any other Person as to matters the Committee or the Board or such member thereof, as applicable, reasonably believes are within such other Person's professional or expert competence and who has been selected with reasonably care by or on behalf of the Company. To the fullest extent permitted by applicable law, members of the Committee and members of the Board, and any officer or Employee acting at the direction or on behalf of the Committee or the Board, shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan and shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action or determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. ***Shares Subject to Plan***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Limitation on Overall Number of Shares Available for Delivery Under Plan</u>. Subject to adjustment as provided in <u>Section 8(b)</u> hereof, the total number of Shares reserved and available for delivery under the Plan (including Options or Stock Appreciation Rights and Restricted Stock, Restricted Stock Units, Performance Shares and/or Other Stock-Based Awards) shall be 42,186,380 Shares. Any Shares delivered under the Plan may consist, in whole or in part, of authorized and unissued shares or treasury shares. If and to the extent any portion of any option outstanding under the Company's 2017 Stock Option Plan as of the date of Board approval of the Plan expires, terminates or is canceled or forfeited for any reason without having been exercised in full, the shares associated with that portion of such option will be automatically added to the limit set forth in the first sentence of this <u>Section 4(a)</u>, and all of such shares may be issued in respect of Incentive Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Limitation to Grants of Awards</u>. No Award may be granted if the number of Shares to be delivered in connection with such an Award exceeds the number of Shares remaining available for delivery under the Plan, minus the number of Shares deliverable in settlement of or relating to then outstanding Awards. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of Shares actually delivered differs from the number of Shares previously counted in connection with an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Availability of Shares Not Delivered under Awards and Adjustments to Limits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If any Awards are forfeited, expire or otherwise terminate without issuance of such Shares, or any Award is settled for cash or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award, the Shares to which those Awards were subject, shall, to the extent of such forfeiture, expiration, termination, cash settlement or non-issuance, again be available for delivery with respect to Awards under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that any Option or other Award granted hereunder is exercised through the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, or withholding tax liabilities arising from such Option or other Award are satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, then only the number of Shares issued net of the Shares tendered or withheld shall be counted for purposes of determining the maximum number of Shares available for grant under the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Substitute Awards shall not reduce the Shares authorized for delivery under the Plan or authorized for delivery to a Participant in any period. Additionally, in the event that an entity acquired by the Company or any of its Affiliates or with which the Company or any of its Affiliates combines has shares available under a pre-existing plan approved by its stockholders and not adopted in contemplation of such acquisition or combination, the shares available for delivery pursuant to the terms of such pre-existing plan (as adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in such acquisition or combination to determine the consideration payable to the holders of common stock of the entities party to such acquisition or combination) may be used for Awards under the Plan and shall not reduce the Shares authorized for delivery under the Plan if and to the extent that the use of such Shares would not require approval of the Company's stockholders under any applicable rules of any applicable Listing Market. Awards using such available shares shall not be made after the date awards or grants could have been made under the terms of the pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees or Directors prior to such acquisition or combination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding anything in this <u>Section 4(c)</u> to the contrary but subject to adjustment as provided in <u>Section 8(b)</u> hereof, the maximum aggregate number of Shares that may be delivered under the Plan as a result of the exercise of the Incentive Stock Options shall be 42,186,380 Shares. In no event shall any Incentive Stock Options be granted under the Plan after the tenth anniversary of the date on which the Board adopts the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. ***Eligibility***. Awards may be granted under the Plan only to Eligible Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ***Specific Terms of Awards***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>. Awards may be granted on the terms and conditions set forth in this <u>Section 6</u>. In addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to <u>Section 9(e)</u>), such additional terms and conditions, not inconsistent with the provisions of the Plan or applicable law, as the Committee shall determine, including terms requiring or permitting forfeiture of Awards and/or repurchase of Shares issued under the Plan in the event of termination of the Participant's Continuous Service and terms permitting a Participant to make elections relating to his or her Award. Except as otherwise expressly provided herein, the Committee shall retain full power and discretion to accelerate, waive or modify, at any time, any term or condition of an Award that is not mandatory under the Plan. Except in cases in which the Committee is authorized to require other forms of consideration under the Plan, or to the extent other forms of consideration must be paid to satisfy the requirements of Delaware or other applicable law, no consideration other than services may be required for the grant (as opposed to the exercise) of any Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Options</u>. The Committee is authorized to grant Options to any Eligible Person on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Exercise Price*. Other than in connection with Substitute Awards, the initial exercise price per Share purchasable under an Option shall be determined by the Committee, provided that such initial exercise price shall not be less than 100% of the Fair Market Value of a Share on the date of grant of the Option and shall not, in any event, be less than the par value of a Share on the date of grant of the Option. If an Employee owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and an Incentive Stock Option is granted to such Employee, the exercise price of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no less than 110% of the Fair Market Value of a Share on the date such Incentive Stock Option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Time and Method of Exercise*. The Committee shall determine the time or times at which or the circumstances under which an Option may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the method by which notice of exercise is to be given and the form of exercise notice to be used, the time or times at which Options shall cease to be or become exercisable following termination of Continuous Service or upon other conditions, the methods by which the exercise price may be paid or deemed to be paid (including in the discretion of the Committee a cashless exercise procedure), the form of such payment, including, without limitation, cash, Shares (including without limitation the withholding of Shares otherwise deliverable pursuant to the Award), other Awards or awards granted under other plans of the Company or an Affiliate, or other property (including notes or other contractual obligations of Participants to make payment on a deferred basis provided that such deferred payments are not in violation of Section 13(k) of the Exchange Act, or any rule or regulation adopted thereunder or any other applicable law), and the methods by or forms in which Shares will be delivered or deemed to be delivered to Participants, subject to the requirements of applicable law. The terms of any Option granted under the Plan shall be set forth in a written Award Agreement evidencing such Award to which the relevant Participant is party, which Award Agreement shall contain provisions that are determined by the Committee and not inconsistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Form of Settlement*. The Committee may, in its sole discretion, provide that the Shares to be issued upon exercise of an Option shall be in the form of Restricted Stock or other similar securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Incentive Stock Options*. The terms of any Incentive Stock Option granted under the Plan shall comply in all respects with the provisions of Section 422 of the Code. Anything in the Plan to the contrary notwithstanding, except as set forth in <u>Section 8 or 9</u> hereof, no term of the Plan relating to Incentive Stock Options (including any Stock Appreciation Right issued in tandem therewith) shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify either the Plan or any Incentive Stock Option under Section 422 of the Code, unless the Participant has first requested, or consents to, the change that will result in such disqualification. Thus, if and to the extent required to comply with Section 422 of the Code, Options granted as Incentive Stock Options shall be subject to the following special terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the Option shall not be exercisable for more than ten years after the date such Incentive Stock Option is granted; provided, however, that if a Participant owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10% of the combined voting power of all classes of stock of the Company (or any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) and the Incentive Stock Option is granted to such Participant, the term of the Incentive Stock Option shall be (to the extent required by the Code at the time of the grant) for no more than five years from the date of grant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the aggregate Fair Market Value (determined as of the date the Incentive Stock Option is granted) of the Shares with respect to which Incentive Stock Options granted under the Plan and all other option plans of the Company (and any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and (f) of the Code, respectively) that become exercisable for the first time by the Participant during any calendar year shall not (to the extent required by the Code at the time of the grant) exceed $100,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if Shares acquired upon exercise of an Incentive Stock Option are disposed of within two (2) years following the date the Incentive Stock Option is granted or one year following the issuance of such Shares to the Participant upon exercise, the Participant shall, promptly following such disposition, notify the Company in writing of the date and terms of such disposition and provide such other information regarding the disposition as the Committee may reasonably require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Stock Appreciation Rights</u>. The Committee may grant Stock Appreciation Rights to any Eligible Person in conjunction with all or part of any Option granted under the Plan or at any subsequent time during the term of such Option (a "<u>Tandem Stock Appreciation Right</u>"), or without regard to any Option (a "<u>Freestanding Stock Appreciation Right</u>"), in each case upon such terms and conditions as the Committee may establish in its sole discretion, not inconsistent with the provisions of the Plan, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Right to Payment*. A Stock Appreciation Right shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one Share on the date of exercise over (B) the grant price of the Stock Appreciation Right as determined by the Committee. The grant price of a Stock Appreciation Right shall not be less than 100% of the Fair Market Value of a Share on the date of grant, in the case of a Freestanding Stock Appreciation Right, or less than the associated Option exercise price, in the case of a Tandem Stock Appreciation Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Other Terms*. The Committee shall determine at the date of grant or thereafter, the time or times at which and the circumstances under which a Stock Appreciation Right may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the time or times at which Stock Appreciation Rights shall cease to be or become exercisable following termination of Continuous Service or upon other conditions, the method of exercise, method of settlement, form of consideration payable in settlement, method by or forms in which Shares will be delivered or deemed to be delivered to Participants, whether or not a Stock Appreciation Right shall be in tandem or in combination with any other Award, and any other terms and conditions of any Stock Appreciation Right. The terms of any Stock Appreciation Right granted under the Plan shall be set forth in a written Award Agreement evidencing such Award to which the relevant Participant is party, which Award Agreement shall contain provisions that are determined by the Committee and not inconsistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Tandem Stock Appreciation Rights*. Any Tandem Stock Appreciation Right may be granted at the same time as the related Option is granted or, for Options that are not Incentive Stock Options, at any time thereafter before exercise or expiration of such Option. Any Tandem Stock Appreciation Right related to an Option may be exercised only when the related Option would be exercisable and the Fair Market Value of the Shares subject to the related Option exceeds the exercise price at which Shares can be acquired pursuant to the Option. In addition, if a Tandem Stock Appreciation Right exists with respect to less than the full number of Shares covered by a related Option, then an exercise or termination of such Option shall not reduce the number of Shares to which the Tandem Stock Appreciation Right applies until the number of Shares then exercisable under such Option equals the number of Shares to which the Tandem Stock Appreciation Right applies. Any Option related to a Tandem Stock Appreciation Right shall no longer be exercisable to the extent the Tandem Stock Appreciation Right has been exercised, and any Tandem Stock Appreciation Right shall no longer be exercisable to the extent the related Option has been exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Restricted Stock Awards</u>. The Committee is authorized to grant Restricted Stock Awards to any Eligible Person on the following terms and conditions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Grant and Restrictions*. Restricted Stock Awards shall be subject to such restrictions on transferability, risk of forfeiture and other lawful restrictions, if any, as the Committee may impose, or as otherwise provided in the Plan during the Restriction Period. The restrictions may lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise, as the Committee may determine at the date of grant or, subject to applicable law, thereafter. Except to the extent restricted as permitted by applicable law under the terms of the Plan and any Award Agreement relating to a Restricted Stock Award, a Participant granted Restricted Stock shall have all of the rights of a stockholder, including the right to vote the Restricted Stock and the right to receive dividends thereon (subject to any lawful requirement imposed by the Committee such as mandatory reinvestment). During the period that the Restricted Stock Award is subject to a risk of forfeiture, subject to <u>Section 9(b)</u> below and except as otherwise provided in the Award Agreement, the Restricted Stock may not be sold, pledged, hypothecated, margined or otherwise encumbered or Transferred by the Participant or Beneficiary. The terms of any Restricted Stock Award granted under the Plan shall be set forth in a written Award Agreement evidencing such Restricted Stock Award to which the relevant Participant is party, which Award Agreement shall contain provisions that are determined by the Committee and not inconsistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Forfeiture*. Except as otherwise determined by the Committee, upon termination of a Participant's Continuous Service during the applicable Restriction Period, the Participant's Restricted Stock that is at that time subject to a risk of forfeiture that has not lapsed or otherwise been satisfied shall, to the fullest extent permitted by applicable law, be forfeited and reacquired by the Company; provided that the Committee may provide, by resolution or other action or in any Award Agreement, or may determine in any individual case, that forfeiture conditions relating to Restricted Stock Awards shall be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Certificates for Stock*. Subject to applicable law, Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted Stock are registered in the name of the Participant, the Committee may require that such certificates bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company retain physical possession of the certificates, and that the Participant deliver a stock power to the Company, endorsed in blank, relating to the Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Dividends and Splits*. As a condition to the grant of a Restricted Stock Award, the Committee may require or permit a Participant to elect that any cash dividends paid on a Share of Restricted Stock be automatically reinvested in additional Shares of Restricted Stock or applied to the purchase of additional Awards under the Plan or, except as otherwise provided herein, may require that payment be delayed (with or without interest at such rate, if any, as the Committee shall determine) and remain subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect to which such cash dividend is payable, in each case in a manner that does not violate the requirements of Section 409A of the Code or other applicable law. Unless otherwise determined by the Committee, Shares distributed in connection with a stock split or stock dividend, and other property distributed as a dividend, shall be subject to restrictions on transfer and a risk of forfeiture and any other lawful restrictions to the same extent as the Restricted Stock with respect to which such Shares or other property have been distributed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Restricted Stock Unit Award</u>. The Committee is authorized to grant Restricted Stock Unit Awards to any Eligible Person on the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Award and Restrictions*. Satisfaction of a Restricted Stock Unit Award shall occur upon expiration of the deferral period specified for such Restricted Stock Unit Award by the Committee (or, if permitted by the Committee, as elected by the Participant in a manner that does not violate the requirements of Section 409A of the Code). In addition, a Restricted Stock Unit Award shall be subject to such lawful restrictions (which may include a risk of forfeiture) as the Committee may impose, if any, which restrictions may lapse at the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or future service requirements), separately or in combination, in installments or otherwise, as the Committee may determine. A Restricted Stock Unit Award may be satisfied by delivery of Shares, cash equal to the Fair Market Value of the specified number of Shares covered by the Restricted Stock Units, or a combination thereof, as determined by the Committee at the date of grant or, subject to applicable law, thereafter. Prior to satisfaction of a Restricted Stock Unit Award satisfied by the delivery of Shares, such Restricted Stock Unit Award carries no voting or dividend or other rights associated with Share ownership. Prior to satisfaction of a Restricted Stock Unit Award, except as otherwise provided in an Award Agreement and as permitted under Section 409A of the Code, a Restricted Stock Unit Award may not be sold, pledged, hypothecated, margined or otherwise encumbered or Transferred by the Participant or any Beneficiary. The terms of any Restricted Stock Unit Award granted under the Plan shall be set forth in a written Award Agreement evidencing such Restricted Stock Unit Award to which the relevant Participant is party, which Award Agreement shall contain provisions that are determined by the Committee and not inconsistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Forfeiture*. Except as otherwise determined by the Committee, upon termination of a Participant's Continuous Service during the applicable deferral period or portion thereof to which forfeiture conditions apply (as provided in the Award Agreement evidencing the Restricted Stock Unit Award), the Participant's Restricted Stock Unit Award that is at that time subject to a risk of forfeiture that has not lapsed or otherwise been satisfied shall, to the fullest extent permitted by applicable law, be forfeited; provided that the Committee may provide, by resolution or other action or in any Award Agreement, or may determine in any individual case, that forfeiture conditions relating to a Restricted Stock Unit Award shall be waived in whole or in part in the event of terminations resulting from specified causes, and the Committee may in other cases waive in whole or in part the forfeiture of any Restricted Stock Unit Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Dividend Equivalents*. Unless otherwise determined by the Committee at the date of grant, any Dividend Equivalents that are granted with respect to any Restricted Stock Unit Award shall be either (A) paid with respect to such Restricted Stock Unit Award at the dividend payment date in cash or in Shares of unrestricted stock having a Fair Market Value equal to the amount of such dividends, or (B) deferred with respect to such Restricted Stock Unit Award and the amount or value thereof may be automatically deemed reinvested in additional Restricted Stock Units, other Awards or other investment vehicles, as the Committee shall determine or permit the Participant to elect. The applicable Award Agreement shall specify whether any Dividend Equivalents shall be paid at the dividend payment date, deferred or deferred at the election of the Participant. If the Participant may elect to defer the Dividend Equivalents, such election shall be made within 30 days after the grant date of the Restricted Stock Unit Award, but in no event later than 12 months before the first date on which any portion of such Restricted Stock Unit Award vests (or at such other times prescribed by the Committee as shall not result in a violation of Section 409A of the Code) or applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Bonus Stock and Awards in Lieu of Obligations</u>. The Committee is authorized to grant Shares to any Eligible Persons as a bonus, or to grant Shares or other Awards in lieu of obligations to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, provided that, in the case of Eligible Persons subject to Section 16 of the Exchange Act, the amount of such grants remains within the discretion of the Committee to the extent necessary to ensure that acquisitions of Shares or other Awards are exempt from liability under Section 16(b) of the Exchange Act. Shares or Awards granted hereunder shall be subject to such other lawful terms as shall be determined by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Dividend Equivalents</u>. Subject to the requirements of applicable law, the Committee is authorized to grant Dividend Equivalents to any Eligible Person entitling the Eligible Person to receive cash, Shares, other Awards, or other property equal in value to the dividends paid with respect to a specified number of Shares, or other periodic payments made by the Company to all holders of Shares. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award. Subject to the requirements of applicable law, the Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or at some later date, or whether such Dividend Equivalents shall be deemed to have been reinvested in additional Shares, Awards, or other investment vehicles, and subject to such lawful restrictions on transferability and risks of forfeiture, as the Committee may specify. Any such determination by the Committee shall be made at the grant date of the applicable Award. Notwithstanding the foregoing, Dividend Equivalents credited in connection with an Award that vests based on the achievement of performance goals shall be subject to restrictions on transfer and risk of forfeiture to the same extent as the Award with respect to which such Dividend Equivalents have been credited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Performance Awards</u>. The Committee is authorized to grant Performance Awards to any Eligible Person payable in cash, Shares, or other Awards, on lawful terms and conditions established by the Committee. The performance criteria to be achieved during any Performance Period and the length of the Performance Period shall be determined by the Committee upon the grant of each Performance Award. Except as provided in <u>Section 8</u> or as may be provided in an Award Agreement, Performance Awards will be distributed only after the end of the relevant Performance Period. The performance goals to be achieved for each Performance Period shall be conclusively determined by the Committee and may be based upon any criteria that the Committee, in its sole discretion, shall determine should be used for that purpose. The amount of the Award to be distributed shall be conclusively determined by the Committee. Performance Awards may be paid in a lump sum or in installments following the close of the Performance Period or, in accordance with procedures established by the Committee, on a deferred basis in a manner that does not violate the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Other Stock-Based Awards</u>. The Committee is authorized, subject to limitations under applicable law, to grant to any Eligible Person such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Shares, as deemed by the Committee to be consistent with the purposes of the Plan. Subject to any limitations imposed by any applicable law, other Stock-Based Awards may be granted to Participants either alone or in addition to other Awards granted under the Plan, and such Other Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards granted under the Plan. Except as otherwise provided herein and subject to the requirements of applicable law, the Committee shall determine the terms and conditions of such Awards. Shares delivered pursuant to an Award in the nature of a purchase right granted under this <u>Section 6(i)</u> shall be purchased for such consideration, (including without limitation loans from the Company or an Affiliate provided that such loans are not in violation of Section 13(k) of the Exchange Act, or any rule or regulation adopted thereunder or any other applicable law) paid for at such times, by such methods, and in such forms, including cash, Shares, other Awards or other property, as the Committee shall determine. The terms of any other Award denominated or payable in, or otherwise based on, or related to, Shares, shall be set forth in a written Award Agreement evidencing such Award to which the relevant Participant is a party, which Award Agreement shall contain provisions that are determined by the Committee and not inconsistent with the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.*** ***Certain Provisions Applicable to Awards***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Stand-Alone, Additional, Tandem, and Substitute Awards</u>. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any of its Affiliates, or any business entity to be acquired by the Company or an Affiliate, or any other right of a Participant to receive payment from the Company or any of its Affiliates. Such additional, tandem, and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award or award, the Committee shall require the surrender of such other Award or award in consideration for the grant of the new Award. In addition, Awards may be granted in lieu of cash compensation, including in lieu of cash amounts payable under other plans of the Company or any of its Affiliates, in which the value of Shares subject to the Award is equivalent in value to the cash compensation (for example, Restricted Stock or Restricted Stock Units), or in which the exercise price, grant price or purchase price of the Award in the nature of a right that may be exercised is equal to the Fair Market Value of the underlying Shares minus the value of the cash compensation surrendered (for example, Options or Stock Appreciation Right granted with an exercise price or grant price "discounted" by the amount of the cash compensation surrendered), provided that any such determination to grant an Award in lieu of cash compensation must be made in a manner intended to be exempt from or to comply with Section 409A of the Code or other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term of Awards</u>. The term of each Award shall be for such period as may be determined by the Committee; provided that in no event shall the term of any Option or Stock Appreciation Right exceed a period of ten years (or in the case of an Incentive Stock Option such shorter term as may be required under Section 422 of the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Form and Timing of Payment Under Awards; Deferrals</u>. Subject to the terms of the Plan and any applicable Award Agreement, payments to be made by the Company or an Affiliate upon the exercise of an Option or other Award or settlement of an Award may be made in such forms as the Committee shall determine, including cash, Shares, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis, provided that any determination to pay in installments or on a deferred basis shall be made by the Committee at the date of grant. Any installment or deferral provided for in the preceding sentence shall, however, be subject to the Company's compliance with applicable law and all applicable rules of any applicable Listing Market, and in a manner intended to be exempt from or otherwise satisfy the requirements of Section 409A of the Code. Subject to <u>Section 7(e)</u> hereof, the settlement of any Award may be accelerated, and cash paid in lieu of Shares in connection with such settlement, in the sole discretion of the Committee or upon occurrence of one or more specified events (in addition to a Change in Control). Any such settlement shall be at a value determined by the Committee in its sole discretion, which, without limitation, shall in the case of an Option or Stock Appreciation Right not exceed the amount if any by which the Fair Market Value of a Share on the settlement date exceeds the exercise or grant price. Installment or deferred payments may be required by the Committee (subject to <u>Section 7(e)</u> hereof, including the consent provisions thereof in the case of any deferral of an outstanding Award not provided for in the original Award Agreement) or permitted at the election of the Participant on terms and conditions established by the Committee. The acceleration of the settlement of any Award, and the payment of any Award in installments or on a deferred basis, all shall be done in a manner that is intended to be exempt from or otherwise satisfy the requirements of Section 409A of the Code. The Committee may, without limitation, make provision for the payment or crediting of a reasonable interest rate on installment or deferred payments or the grant or crediting of Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exemptions from Section 16(b) Liability</u>. If the Company becomes a Publicly Held Corporation, it is the intent of the Company that the grant of any Awards to or other transaction by a Participant who is subject to Section 16 of the Exchange Act shall be exempt from Section 16 pursuant to an applicable exemption (except for transactions acknowledged in writing to be non-exempt by such Participant). Accordingly, if any provision of the Plan or any Award Agreement does not comply with the requirements of Rule 16b-3 then applicable to any such transaction, such provision shall, to the fullest extent permitted by applicable law, be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule 16b-3 so that such Participant shall avoid liability under Section 16(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Code Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Award Agreement for any Award that the Committee reasonably determines to constitute a "nonqualified deferred compensation plan" under Section 409A of the Code (a "<u>Section 409A Award</u>"), and the provisions of the Plan applicable to that Award and the applicable Award Agreement, shall be construed in a manner consistent with the applicable requirements of Section 409A of the Code, and the Committee, in its sole discretion and without the consent of any Participant, may amend any Award Agreement (and the provisions of the Plan applicable thereto) if and to the extent that the Committee determines that such amendment is necessary or appropriate to comply with the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If any Award constitutes a Section 409A Award, then the Award shall be subject to the following additional requirements, if and to the extent required to comply with Section 409A of the Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Payments under the Section 409A Award may be made only upon (u) the Participant's "separation from service", (v) the date the Participant becomes "disabled", (w) the Participant's death, (x) a "specified time (or pursuant to a fixed schedule)" specified in the Award Agreement at the date of the deferral of such compensation, (y) a "change in the ownership or effective control" of the Company, or "in the ownership of a substantial portion of the assets of the" Company", or (z) the occurrence of an "unforeseeable emergency";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) The time or schedule for any payment of the deferred compensation may not be accelerated, except to the extent provided in applicable Treasury Regulations or other applicable guidance issued by the Internal Revenue Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Any elections with respect to the deferral of such compensation or the time and form of distribution of such deferred compensation shall comply with the requirements of Section 409A(a)(4) of the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) In the case of any Participant who is "specified employee", a distribution on account of a "separation from service" may not be made before the date which is six (6) months after the date of the Participant's "separation from service" (or, if earlier, the date of the Participant's death).

For purposes of the foregoing, the terms in quotations shall have the same meanings as those terms have for purposes of Section 409A of the Code, and the limitations set forth herein shall be applied in such manner (and only to the extent) as shall be necessary to comply with any requirements of Section 409A of the Code that are applicable to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) It is the Company's intent that any Options and Stock Appreciation Rights granted hereunder not constitute a Section 409A Award that fails to meet the requirements of Section 409A(a)(2), (3) or (4) of the Code and the provisions of the Plan applicable to that Award and the applicable Award Agreement shall be construed in a manner consistent with that intent, and the Committee, in its sole discretion and without the consent of any Participant, may amend any Award Agreement (and the provisions of the Plan applicable thereto) if and to the extent that the Committee determines that such amendment is necessary or appropriate to be exempt from, or to comply with, the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Notwithstanding the foregoing, or any provision of the Plan or any Award Agreement, the Company does not make any representation to any Participant or Beneficiary that any Awards made pursuant to the Plan are exempt from, or satisfy, the requirements of, Section 409A of the Code, and the Company shall have no liability or other obligation to indemnify or hold harmless the Participant or any Beneficiary for any tax, additional tax, interest or penalties that the Participant or any Beneficiary may incur in the event that any provision of the Plan, or any Award Agreement, or any amendment or modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. ***Corporate Transactions.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Vesting</u>. If and only to the extent specifically provided in any employment or other agreement between the Participant and the Company or any of its Affiliates, or in any Award Agreement, or to the extent otherwise determined by the Committee in its sole discretion and without any requirement that any types of Award or any Participants be treated consistently, upon the occurrence of a "Change in Control," as defined in <u>Section 8(b)</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any Option or Stock Appreciation Right that was not previously vested and exercisable as of the time of the Change in Control, shall become immediately vested and exercisable, subject to applicable restrictions set forth in <u>Section 9(a)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any restrictions, deferral of settlement, and forfeiture conditions applicable to a Restricted Stock Award, Restricted Stock Unit Award or an Other Stock-Based Award subject only to future service requirements granted under the Plan shall lapse and such Awards shall be deemed fully vested as of the time of the Change in Control, except to the extent of any waiver by the Participant and subject to applicable restrictions set forth in <u>Section 9(a)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) With respect to any outstanding Award subject to achievement of performance goals and conditions under the Plan, the Committee may, in its discretion, consider such Awards to have been earned and payable based on achievement of performance goals or based upon target performance (either in full or pro-rata based on the portion of the Performance Period completed as of the Change in Control) or based on such other factors as the Committee may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Adjustments to Awards*. In the event of a subdivision of outstanding Shares, a combination or consolidation of outstanding Shares into a lesser number of Shares, a recapitalization, a stock split, a spin-off or a similar occurrence that results in an increase or decrease in the number of outstanding Shares effected without receipt of consideration by the Company, then the Committee shall, in such manner as it deems appropriate and equitable, and subject to and in compliance with applicable law, substitute, exchange or adjust any or all of (A) the number and kind of securities which may be delivered in connection with Awards granted thereafter, (B) the number and kind of securities subject to or deliverable in respect of outstanding Awards, (C) the exercise price, grant price or purchase price relating to any Award and/or make provision for payment of cash or other property in respect of any outstanding Award, and (D) any other aspect of any Award. In the event of a declaration of an extraordinary dividend, a divided payable in Shares, a repurchase, a share exchange, a liquidation, a dissolution or other similar corporate transaction or event that affects the Shares and/or such other securities of the Company, the Committee may in its sole discretion make appropriate adjustments to one or more of the items listed in clause (A), (B), (C) and/or (D) of the preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Adjustments in Case of Certain Transactions*. In the event of any merger, consolidation or other reorganization in which the Company does not survive, or in the event of any Change in Control, any outstanding Awards may be dealt with in accordance with any of the following approaches, without the requirement of obtaining any consent or agreement of a Participant as such and without any requirement that any Award be treated the same as any other Award, as determined by the agreement effectuating the transaction or, if and to the extent not so determined, as determined by the Committee: (A) the continuation of the outstanding Awards by the Company, if the Company is a surviving entity, (B) the assumption or substitution for, as those terms are defined below, the outstanding Awards by the surviving entity or its parent or subsidiary, (C) full exercisability or vesting and accelerated expiration of the outstanding Awards, (D) cancellation of outstanding Awards that do not become vested or that are not exercised before or in connection with the transaction; or (E) cancellation of outstanding Awards and settlement of the value of outstanding vested Awards in cash or cash equivalents or other property (which value, in the case of Options or Stock Appreciation Rights, may be measured by the amount, if any, by which the per Share consideration in the applicable transaction exceeds the exercise or grant price of the Option or Stock Appreciation Right and which value may be zero). Notwithstanding anything herein or in an Award Agreement to the contrary, to the extent provided in the definitive agreement for any such transaction: (W) Awards shall be subject to any deferred or contingent payments (such as purchase price adjustments, earn-outs, milestones, escrows or installment payments) set forth in the definitive agreement for the transaction on the terms set forth therein subject to <u>Section 7(e)</u> to the extent applicable; (X) each Participant shall have been deemed to accept the appointment and decisions of any "stockholder representative" or similar Person who under the definitive agreement acts as a representative of and for the Company's stockholders or equityholders for purposes of the definitive agreement and each Participant shall be required to execute any document required by the definitive agreement to reflect such acceptance; (Y) each Participant shall be subject to any indemnification obligations as may be set forth in the definitive agreement; and (Z) each Participant shall execute such agreements as may be required by the definitive agreement, including letters of transmittal and cash-out agreements. For the purposes of the Plan, an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based Award shall be considered assumed or substituted for if, immediately following the effectiveness of the applicable transaction, the Award confers the right to purchase or receive, for each Share subject to the Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based Award immediately prior to the applicable transaction, on substantially the same vesting and other terms and conditions as were applicable to the Award immediately prior to the effectiveness of the applicable transaction, the consideration (whether stock, cash or other securities or property) received in the applicable transaction by holders of Shares for each Share held immediately prior to the effectiveness of such transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares); provided, however, that if such consideration received in the applicable transaction is not solely common stock of the successor company or its parent or subsidiary, the Committee may, with the consent of the successor company or its parent or subsidiary, provide that the consideration to be received upon the exercise or vesting of an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award, Performance Award or Other Stock-Based Award, for each Share subject thereto, will be solely common stock of the successor company or its parent or subsidiary substantially equal in Fair Market Value to the per share consideration received by holders of Shares in the applicable transaction. The determination of such substantial equality of value of consideration shall be made by the Committee in its sole discretion and its determination shall be conclusive and binding. If determined to be appropriate by the Committee, the Committee may give written notice of any proposed transaction referred to in this <u>Section 8(b)(ii)</u> a reasonable period of time prior to the closing date for such transaction (which notice may be given either before or after the approval of such transaction), in order that Participants may have a reasonable period of time prior to the closing date of such transaction within which to exercise any Awards that are then exercisable (including any Awards that may become exercisable upon the closing date of such transaction). A Participant may condition his or her exercise of any Awards upon the consummation of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Dissolution or Liquidation*. To the extent not previously exercised or settled, each Award shall terminate immediately prior to the dissolution or liquidation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Other Adjustments*. The Committee is authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards (including Performance Awards, or performance goals and conditions relating thereto) in recognition of unusual or nonrecurring events (including acquisitions and dispositions of businesses and assets) affecting the Company, any of its Affiliates or any business unit, or the financial statements of the Company or any of its Affiliates, or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations or business conditions or in view of the Committee's assessment of the business strategy of the Company, any of its Affiliates or business unit thereof, performance of comparable organizations, economic and business conditions, personal performance of a Participant, and any other circumstances deemed relevant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. ***General Provisions***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Compliance with Legal and Other Requirements</u>. The Company may, to the extent deemed necessary or advisable by the Committee, postpone the issuance or delivery of Shares or payment of other benefits under any Award until completion of such registration or qualification of such Shares or other required action under any federal or state law, rule or regulation, listing or other required action with respect to any applicable Listing Market, or compliance with any other obligation of the Company, as the Committee, may consider appropriate, and may require any Participant to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the issuance or delivery of Shares or payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Limits on Transferability; Beneficiaries</u>. No Award or other right or interest granted under the Plan that is not a Share, and without the prior written consent of the Company, no Share, shall be sold, pledged, hypothecated or otherwise encumbered or subject to any lien, obligation or liability of such Participant to any party, or assigned or otherwise Transferred by such Participant otherwise than by will or the laws of descent and distribution or to a Beneficiary upon the death of a Participant, and such Awards or rights that may be exercisable shall be exercised during the lifetime of the Participant only by the Participant or his or her guardian or legal representative, except that Awards and other rights (other than Incentive Stock Options and Stock Appreciation Rights in tandem therewith) may be Transferred to one or more Beneficiaries or other transferees during the lifetime of the Participant, and may be exercised by such transferees in accordance with the terms of such Award, but only if and to the extent such Transfers are permitted by any applicable Stockholder Related Agreement (as defined below) and the Committee pursuant to the express terms of an Award Agreement (subject to any lawful terms and conditions which the Committee may impose thereon), are by gift or pursuant to a domestic relations order, and are to a Permitted Assignee (as defined below) that is a permissible transferee under the applicable rules of the Securities and Exchange Commission for registration of shares of stock on a Form S-8 registration statement. For this purpose, a "<u>Permitted Assignee</u>" shall mean (i) the Participant's spouse, children or grandchildren (including any adopted and step children or grandchildren), parents, grandparents or siblings, (ii) a trust for the benefit of one or more of the Participant or the natural Persons referred to in clause (i), (iii) a partnership, limited liability company or corporation in which the Participant or the Persons referred to in clauses (i) or (ii) are the only partners, members or stockholders, or (iv) a foundation in which any Person designated in clauses (i), (ii) or (iii) above control the management of assets. A Beneficiary, transferee, or other Person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award Agreement applicable to such Participant, except as otherwise determined by the Committee, and to any additional lawful terms and conditions deemed necessary or appropriate by the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Taxes</u>. The Company and any of its Affiliates are authorized to withhold from any Award granted, any payment relating to an Award under the Plan, including from a distribution of Shares, or any payroll or other payment to a Participant, amounts of withholding and other taxes due or potentially payable in connection with any transaction involving an Award, and to take such other action as the Committee may deem advisable to enable the Company or any of its Affiliates and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to withhold or receive Shares or other property and to make cash payments in respect thereof in satisfaction of a Participant's tax obligations, either on a mandatory or elective basis in the discretion of the Committee. The amount of withholding tax paid with respect to any Award by the withholding of Shares otherwise deliverable pursuant to any Award or by delivering Shares already owned shall not exceed the maximum statutory tax rates in the jurisdictions applicable to the Participant or Beneficiary with respect to the taxable amount. For this purpose, the maximum statutory rates shall be based on the applicable rates of the relevant tax authorities (for example, federal, state, local or foreign), including the Participant's or Beneficiary's share of payroll or similar taxes, as provided in tax law, regulations, or the authority's administrative practices, not to exceed the highest statutory rate in that jurisdiction, even if that rate exceeds the highest rate that may be applicable to the Participant or the Beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Changes to the Plan and Awards</u>. The Board may amend, alter, suspend, discontinue or terminate the Plan, or the Committee's authority to grant Awards under the Plan, without the consent of stockholders or Participants, except that any amendment or alteration to the Plan shall be subject to the approval of the Company's stockholders not later than the annual meeting next following such Board action if such stockholder approval is required by any federal or state law or regulation (including Rule 16b-3) or the rules of the Listing Market, and the Board may otherwise, in its discretion, determine to submit other such changes to the Plan to stockholders for approval; provided that, except as otherwise permitted by the Plan or Award Agreement, without the consent of an affected Participant, no such Board action may materially and adversely affect the rights of such Participant under the terms of any previously granted and outstanding Award. The Committee may waive any conditions or rights under, or amend, alter, suspend, discontinue or terminate any Award theretofore granted and any Award Agreement relating thereto, except as otherwise provided in the Plan; provided that, except as otherwise permitted by the Plan or Award Agreement, without the consent of an affected Participant, no such Committee or the Board action may materially and adversely affect the rights of such Participant under terms of such Award. Notwithstanding anything herein to the contrary, the Committee shall be authorized to amend any outstanding Option and/or Stock Appreciation Right to reduce the exercise price or grant price without the prior approval of the stockholders of the Company. In addition, the Committee shall be authorized to cancel outstanding Options and/or Stock Appreciation Rights replaced with Awards having a lower exercise price without the prior approval of the stockholders of the Company. Notwithstanding anything herein or in an Award Agreement to the contrary, if any proposed amendment to the Plan or to one or more Award Agreements would affect the affected Participants in substantially the same manner (disregarding differences in the number of Shares subject to and the price of affected Awards), consent from each affected Participant shall not be required if consent is obtained from those Participants whose Awards represent, in the aggregate, a majority of the Shares subject to Awards that would be affected by such amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Limitation on Rights Conferred Under Plan</u>. Neither the Plan nor any action taken hereunder or under any Award Agreement or with respect to any Award shall be construed as (i) giving any Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or an Affiliate, (ii) interfering in any way with the right of the Company or an Affiliate to terminate any Eligible Person's or Participant's Continuous Service at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and Employees, or (iv) conferring on a Participant any of the rights of a stockholder of the Company or any of its Affiliates including any right to receive dividends or distributions, any right to vote or act by written consent, any right to attend meetings of stockholders or any right to receive any information concerning the Company's or any of its Affiliates' business, financial condition, results of operation or prospects, unless and until such time as the Participant is duly issued Shares on the stock ledger of the Company or any of its Affiliates in accordance with the terms of an Award. None of the Company, its officers or its directors shall have any fiduciary obligation to the Participant with respect to any Awards unless and until the Participant is duly issued Shares pursuant to the Award on the stock ledger of the Company in accordance with the terms of an Award and applicable law. Neither the Company, nor any of its Affiliates, nor any of their respective officers, directors, representatives or agents is granting any rights under the Plan to the Participant whatsoever, oral or written, express or implied, other than those rights expressly set forth in the Plan or the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Unfunded Status of Awards; Creation of Trusts</u>. The Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant or obligation to deliver Shares pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give any such Participant any rights that are greater than those of a general creditor of the Company or Affiliate that issues the Award; provided that the Committee may authorize the creation of trusts and deposit therein cash, Shares, other Awards or other property, or make other arrangements to meet the obligations of the Company or Affiliate under the Plan. Such trusts or other arrangements shall be consistent with the "unfunded" status of the Plan unless the Committee otherwise determines with the consent of each affected Participant. The trustee of such trusts may be authorized to dispose of trust assets and reinvest the proceeds in alternative investments, subject to such terms and conditions as the Committee may specify and in accordance with applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Nonexclusivity of the Plan</u>. Neither the adoption of the Plan by the Board nor its submission to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to adopt such other incentive arrangements as it may deem desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Fractional Shares</u>. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other Awards or other property shall be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Governing Law</u>. Except as otherwise provided in any Award Agreement or required by the laws of the State of Delaware, the validity, construction and effect of the Plan, any rules and regulations under the Plan, and any Award Agreement shall be determined in accordance with the laws of the State of Delaware without giving effect to principles of conflict of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Non-U.S. Laws</u>. Notwithstanding anything herein (including <u>Section 9(e)</u>) or in any Award Agreement to the contrary, the Committee shall have the authority to adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of foreign countries in which the Company or its Affiliates may operate to assure the viability of the benefits from Awards granted to Participants performing services in such countries and to meet the objectives of the Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Plan Effective Date and Stockholder Approval; Termination of Plan</u>. The Plan shall become effective on the Effective Date, subject to subsequent approval, within 12 months of its adoption by the Board, by stockholders of the Company eligible to vote in the election of directors, by a vote sufficient to meet the requirements of Code Section 422, Rule 16b-3 under the Exchange Act (if applicable), applicable requirements under the rules of any stock exchange or automated quotation system on which the Shares may be listed or quoted, and other laws, regulations, and obligations of the Company applicable to the Plan. Awards may be granted subject to stockholder approval, but may not be exercised or otherwise settled in the event the stockholder approval is not obtained. The Plan shall terminate at the earliest of (i) such time as no Shares remain available for issuance under the Plan, (i) termination of the Plan by the Board, or (c) the tenth anniversary of the Effective Date. Awards outstanding upon expiration of the Plan shall remain in effect until they have been exercised or terminated, or have expired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Construction and Interpretation</u>. Whenever used herein, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender. Headings of Articles and Sections hereof are inserted for convenience and reference and constitute no part of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Severability</u>. If any provision of the Plan or any Award Agreement shall be determined to be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Award Agreements</u>. Subject to the requirements of applicable law, each Award Agreement shall either be (a) in writing in a form approved by the Committee and executed by the Company by an officer duly authorized to act on its behalf, or (b) an electronic notice in a form approved by the Committee and recorded by the Company (or its designee) in an electronic recordkeeping system used for the purpose of tracking one or more types of Awards as the Committee may provide; in each case and if required by the Committee, the Award Agreement shall be executed or otherwise electronically accepted by the recipient of the Award in such form and manner as the Committee may require. The Committee may authorize any officer of the Company to execute any or all Award Agreements on behalf of the Company. The Award Agreement shall set forth the material terms and conditions of the Award as established by the Committee consistent with the provisions of the Plan and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Stockholders' Agreement, etc.</u> The issuance of Shares upon the grant, exercise or settlement of an Award under the Plan shall be conditioned upon the Participant executing, upon the request of the Company, any stockholders' agreement, any agreement restricting the transfer of shares, any voting agreement, any lock-up agreement or any other agreement by and among some or all of the Company's stockholders as may be required by the Company at the time of exercise or any later date (each, a "<u>Stockholder-Related Agreement</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Clawback of Benefits</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company may, to the fullest extent permitted by applicable law, (A) cause the cancellation of any Award, (B) require reimbursement with respect to proceeds attributable to any Award by a Participant or Beneficiary, and (C) effect any other right of recoupment of equity or other compensation provided under the Plan or otherwise in accordance with (1) any applicable law, rule, regulation, (2) any requirement of any applicable Listing Market and (3) any Company policies that currently exist or that may from time to time be adopted or modified in the future by the Company or any of its Affiliates and that are established in good faith to comply with or implement any such applicable law (including Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act), rule, regulation or requirement of a Listing Market (each of (1), (2) and (3), a "<u>Clawback Requirement</u>"). By accepting an Award, a Participant is also agreeing to be bound by any existing or future Clawback Requirements, or any amendments that may from time to time be made to any Clawback Requirements in the future by the Company in its discretion (including without limitation any Clawback Requirements adopted or amended to comply with applicable laws, rules or regulations or requirements of any Listing Market) and is further agreeing that all of the Participant's Award Agreements may be unilaterally amended by the Company, without the Participant's consent, to the extent that the Company in its discretion determines to be necessary or appropriate to comply with or give effect to any Clawback Requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An Award Agreement may provide, to the fullest extent permitted by applicable law for the forfeiture of any Award, or portion thereof, or Shares acquired in respect thereof and the claw back of amounts received with respect thereto if a Participant, while employed by or providing services to the Company or any of its Affiliates or after termination of such employment or service, violates a non-competition, non-solicitation, non-disparagement, non-disclosure, invention assignment or similar covenant or agreement with the Company or any of its Affiliates, as determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Interpretation</u>. The article, section and paragraph headings contained in the Plan are for reference purposes only and shall not affect in any way the meaning or interpretation of the Plan. The terms "include," "including" and "includes" mean "include, without limitation", "including, without limitation" and "includes, without limitation", respectively.

\* \* \* \*

**APPENDIX A**

**TO**

**IMMERSED INC.**

**2025 EQUITY INCENTIVE PLAN**

**(for California residents only, to the extent required by 25102(o))**

This Appendix A to the Immersed Inc. 2025 Equity Incentive Plan shall apply *only* to Awards that are granted under the Plan to residents of California and are intended to qualify for exemption under Section 25102(o) of the California Corporations Code, if and as expressly designated as a "<u>California Section 25102(o) Award</u>" in the Award Agreement.

Capitalized terms contained herein shall have the same meanings given to them in the Plan, unless otherwise provided by this Appendix A. Notwithstanding any provisions contained in the Plan to the contrary and to the extent required by applicable laws, the following terms shall apply to all Awards granted to residents of the State of California, until such time as the Board amends this Appendix A or the Committee otherwise provides.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term of each Option and Stock Appreciation Right shall be stated in the Award Agreement, provided, however, that the term shall be no more than ten (10) years from the date of grant thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless determined otherwise by the Committee, Awards may not be sold, pledged, assigned, hypothecated or otherwise transferred in any manner other than by will or by the laws of descent and distribution, and may be exercised, during the lifetime of the Participant, only by the Participant. If the Committee makes an Award transferable, such Award may only be transferred (i) by will, (ii) by the laws of descent and distribution, or (iii) as permitted by Rule 701 of the Securities Act of 1933, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a Participant ceases Continuous Service, such Participant may exercise his or her Option and/or Stock Appreciation Right within such period of time as specified in the Award Agreement, which shall not be less than thirty (30) days following the date of the Participant's termination, to the extent that such Award is vested on the date of termination (but in no event later than the expiration of the term of the Award as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Award shall remain exercisable for three (3) months following the Participant's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If a Participant ceases Continuous Service as a result of the Participant's Disability, the Participant may exercise his or her Option and/or Stock Appreciation Right within such period of time as specified in the Award Agreement, which shall not be less than six (6) months following the date of the Participant's termination, to the extent the Award is vested on the date of termination (but in no event later than the expiration of the term of such Award as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Award shall remain exercisable for twelve (12) months following the Participant's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a Participant ceases Continuous Service as a result of the Participant's death, the Option and/or Stock Appreciation Right may be exercised within such period of time as specified in the Award Agreement, which shall not be less than six (6) months following the date of the Participant's death, to the extent the Award is vested on the date of death (but in no event later than the expiration of the term of such Award as set forth in the Award Agreement) by the Participant's designated beneficiary, personal representative, or by the person(s) to whom the Award is transferred pursuant to the Participant's will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option shall remain exercisable for twelve (12) months following the Participant's termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No Award shall be granted to a resident of California more than ten (10) years after the earlier of the date of adoption of the Plan or the date the Plan is approved by the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Committee, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan will adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award; provided, however, that the Committee will make such adjustments to an Award required by Section 25102(o) of the California Corporations Code only to the extent the Company is relying upon the exemption afforded thereby with respect to the Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This Appendix A shall be deemed to be part of the Plan and the Board shall have the authority to amend this Appendix A in accordance with Section 9(d) of the Plan.

## Ex1A-6

**Exhibit 6.7**

**FORM**

**IMMERSED INC.**

**2025 Equity Incentive Plan**

**STOCK OPTION AGREEMENT**

1. ***Grant of Option.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant</u>. Immersed Inc., a Delaware corporation (the "<u>Company</u>"), hereby grants, as of the date first set forth below (the "<u>Grant Date</u>"), pursuant to the Company's 2025 Equity Incentive Plan (the "<u>Plan</u>") and this Stock Option Agreement (this "<u>Agreement</u>"), to the individual named below (the "<u>Optionee</u>") an option (the "<u>Option</u>") to purchase the number of shares of the Company's Series A Common Stock, $0.00001 par value per share (the "<u>Shares</u>") at a purchase price per share (the "<u>Exercise Price per Share</u>") as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;<u>Optionee</u>: | &nbsp;&nbsp;[_____________] |
| &nbsp;&nbsp;<u>Number of Shares</u>: | &nbsp;&nbsp;[_____________] |
| &nbsp;&nbsp;<u>Exercise Price per Share</u>: | &nbsp;&nbsp;$[_____________] |
| &nbsp;&nbsp;<u>Grant Date</u>: | &nbsp;&nbsp;[_____________, 2025] |
| &nbsp;&nbsp;<u>Expiration Date</u>: | &nbsp;&nbsp;[10<sup>th</sup> anniversary of Grant Date] |
| &nbsp;&nbsp;<u>Vesting Commencement Date</u>: | &nbsp;&nbsp;[Grant Date] |
| &nbsp;&nbsp;<u>Type of Option</u>: | &nbsp;&nbsp;[¨ x Incentive Stock Option<br> [¨ x Non-Qualified Stock Option |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Defined Terms</u>. Unless otherwise provided herein, capitalized terms used in this Agreement but not defined in this Agreement shall have the corresponding meanings attributed thereto in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Plan and Agreement</u>. The Option shall be subject to the terms and conditions set forth in this Agreement and the Plan, which is hereby incorporated by reference as if fully set forth herein. The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms and conditions hereof and thereof and all applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Type of Option</u>. Unless designated as a Non-Qualified Stock Option in <u>Section 1(a)</u>, the Option will be an Incentive Stock Option to the maximum extent permitted by applicable law. If the Option is designed as an Incentive Stock Option in <u>Section 1(a)</u>, the Optionee acknowledges that (i) to the extent that the aggregate Fair Market Value (determined as of the Grant Date) of all shares with respect to which Incentive Stock Options granted to the Optionee, including the Option (if applicable), are exercisable for the first time by the Optionee in any calendar year exceeds $100,000 (or such other limitation as imposed by Section 424(d) of the Code), the Option and such other options will be treated as not qualifying under Section 422 of the Code and therefore will be treated as Non-Qualified Stock Options, (ii) the rule set forth in the immediately preceding clause (a) shall be applied by taking options into account in the order in which they were granted and (iii) the Code imposes other limitations on the ability of the Option to qualify as an Incentive Stock Option.

2. ***Vesting and Exercise Schedule***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Generally</u>. The Option shall initially be unvested and shall be eligible to become vested and exercisable in increments as provided in this <u>Section 2(a)</u>, which increments shall be cumulative. Provided that the Continuous Service of the Optionee continues through and on the applicable vesting date (each, a "<u>Vesting Date</u>"), twenty-five percent (25%) of the Option shall be eligible to vest on the one-year anniversary of the Vesting Commencement Date, and the balance of the Option shall vest in thirty-six (36) equal and consecutive monthly installments thereafter such that, provided that the Option has not otherwise terminated or expired in accordance with the provisions hereof, the Option shall be fully-vested on the fourth anniversary of the Vesting Commencement Date. For purposes of this Agreement, "<u>Vesting Commencement Date</u>" means [the Grant Date].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Partial Vesting</u>. There shall be no proportionate or partial vesting of the Option for or in the periods prior to each Vesting Date, and all vesting of the Option shall occur, if at all, only on the appropriate Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Termination of Continuous Service</u>. Upon the termination of the Optionee's Continuous Service for any reason, any unvested portion of the Option shall automatically terminate and be null and void. Moreover, in the event that the Optionee's Continuous Service is terminated by the Company or any of its Affiliates for Cause or terminates at a time when grounds for Cause exist, the vested portion of the Option shall also automatically terminate and be null and void upon the termination of the Optionee's Continuous Service.

3. ***Method of Exercise***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notice of Exercise and Payment</u>. The vested portion of this Option shall be exercisable in whole or in part in accordance with the exercise schedule set forth in <u>Section 2</u> hereof by written notice, in a form to be provided by the Company or, in the Company's discretion, in any other form acceptable to the Company, which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the holder's investment intent with respect to such Shares as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised after (i) receipt by the Company of such written notice accompanied by the Exercise Price, (ii) arrangements that are satisfactory to the Committee in its sole discretion have been made for Optionee's payment to the Company of the amount, if any, that is necessary to be withheld in accordance with applicable federal, state, local or other withholding requirements and (iii) receipt by the Company of the additional agreements or instruments referred to in <u>Section 3(b</u>) below. No Shares shall be issued pursuant to the Option unless and until such issuance and such exercise shall comply with all relevant provisions of applicable law, including the requirements of any stock exchange upon which the Shares then may be traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Additional Agreements</u>. As a condition to the exercise of any portion of the Option pursuant to this Agreement and at any time after the exercise of any portion of the Option, the Company may in its discretion require that the Optionee (or other Person exercising the Option) execute: (i) any Stockholder-Related Agreements or a joinder to any such Stockholder-Related Agreements, (ii) if the Optionee or the Optionee's spouse is a resident of a community property jurisdiction, an executed spousal consent in the form attached hereto as <u>Exhibit A</u> (or in such other form as may be required by the Company), (iii) the Investment Representation Statement in the form attached hereto as <u>Exhibit B</u> (or in such other form as may be required by the Company) and (iv) the transfer power in the form attached hereto as <u>Exhibit C</u> (or in such other form as may be required by the Company).

4. ***Method of Payment***. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee: (a) cash; (b) check; (c) to the extent permitted by the Committee, with Shares owned by the Optionee, or the withholding of Shares that otherwise would be delivered to the Optionee as a result of the exercise of the Option; (d) to the extent permitted by the Committee, following an initial public offering of securities of the Company, pursuant to a "cashless exercise" procedure, by delivery of a properly executed exercise notice together with such other documentation, and subject to such guidelines, as the Committee shall require to effect an exercise of the Option and delivery to the Company by a licensed broker acceptable to the Company of proceeds from the sale of Shares or a margin loan sufficient to pay the Exercise Price and any applicable income or employment taxes; or (e) such other consideration or in such other manner as may be determined by the Committee in its absolute discretion.

5. ***Termination of Option***. Any vested but unexercised portion of the Option shall automatically and without notice terminate and become null and void at the time of the earliest to occur of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) immediately upon the termination of the Optionee's Continuous Service by the Company or any Affiliate of the Company for Cause or a termination of the Optionee's Continuous Service for any other reason at a time when grounds for Cause exist;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one year after the date on which the Optionee's Continuous Service is terminated by reason of the Optionee's death or Disability provided that no grounds for Cause existed at the time of such termination of Continuous Service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) three months after the date on which the Optionee's Continuous Service terminates for any reason other than under the circumstances described in clauses (a) or (b) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Expiration Date.

6. ***Restrictions While Stock is Not Registered.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definition of Restricted Securities</u>. Any (i) Shares acquired upon exercise of the Option, (ii) shares of the Company's capital stock or other securities received as a dividend or other distribution upon such shares and (iii) shares of capital stock or other securities of the Company or any other entity into which such shares may be changed or for which such shares shall be exchanged, whether through reorganization, recapitalization, stock split-ups or the like (collectively, (i), (ii) and (iii), the "<u>Restricted Securities</u>"), shall be subject to the provisions of this <u>Section 6</u> at all times, and only at those times, that the Registered Securities are not registered under the Securities Exchange Act of 1934, as amended (such times during which any Restricted Securities are not so registered sometimes hereinafter being referred to as the "<u>Unregistered Period</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Sale or Pledge of Restricted Securities</u>. Except as otherwise provided herein, the Optionee agrees and covenants that during the Unregistered Period the Optionee shall not Transfer, either voluntarily or by operation of law (all hereinafter collectively referred to as "transfers"), any or all of the Restricted Securities or any interest therein except in accordance with and subject to the terms of this <u>Section 6</u> and any applicable Stockholder-Related Agreements. The terms and conditions set forth in this <u>Section 6</u> shall not be interpreted to limit in any way the terms and conditions set forth in any applicable Stockholder-Related Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Call Right upon Termination of Continuous Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Call Option*. In accordance with and subject to the terms and conditions set forth in this <u>Section 6</u>, at any time during the Unregistered Period, in the event of the occurrence of the Optionee's termination of Continuous Service for any reason (a "<u>Trigger Event</u>") the Company shall have the right to require the Optionee and, if applicable, any or all permitted transferees of the Shares (the Optionee and each such permitted transferee, a "<u>Repurchase Holder</u>") to sell to the Company or one or more of its designees any or all of the Restricted Securities (such right, the "<u>Call Option</u>", and any Restricted Securities elected to be repurchased as a result of the exercise of the Call Option, "<u>Repurchase Securities</u>"). The Company or its designee(s) may elect to exercise the Call Option by delivering an irrevocable written notice of exercise (the "<u>Repurchase Call Notice</u>") to the applicable Repurchase Holder (or such Repurchase Holder's estate in the event of such Repurchase Holder's death) within one year after the later of (x) the Trigger Event and (y) the date on which no portion of the Option remains exercisable. If any Repurchase Securities are held by more than one Repurchase Holder, the Repurchase Securities will, unless otherwise determined by the Company, be repurchased pro rata from the Repurchase Holders based on each such Person's percentage ownership of the Repurchase Securities. The Optionee agrees to cause any other Repurchase Holders to fully and faithfully comply with the provisions of this Agreement, including this <u>Section 6</u>, applicable to such Repurchase Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Purchase Price*. In the event of a purchase pursuant to this <u>Section 6(c)</u>, the purchase price for the applicable Repurchase Securities shall be the Fair Market Value of such Repurchase Securities on the date of the Trigger Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Closing of Repurchase*. The closing of the purchase of the Repurchase Securities pursuant to the exercise of the Call Option shall take place on the date designated by the Company or its designee(s) in the Repurchase Call Notice, which date shall not be more than ninety (90) days nor less than five (5) days after the date of such notice. The Company or its designee(s) shall pay for the Repurchase Securities by delivery of a check or wire transfer of funds, in the aggregate amount of the purchase price for Repurchase Securities. In addition, the Company may pay the purchase price for the Repurchase Securities by offsetting any *bona fide* debts owed by the Optionee or any Repurchase Holder to the Company. If the Company repurchases any Repurchase Securities, the purchase price for such Repurchase Securities may, at the option of the Company, be payable in cash or in the form of a promissory note payable by the Company in up to five equal annual installments commencing 12 months after the date of the closing of the repurchase of such Restricted Securities, together with interest on the unpaid balance thereof at the rate equal to the prime rate of interest as quoted in the Wall Street Journal on such date. The Company or its designee(s) shall be entitled to receive customary representations, warranties, covenants and indemnities from the Repurchase Holders of any Repurchase Securities purchased pursuant to this <u>‎Section 6(c)</u> regarding such sale of Repurchase Securities (including representations and warranties regarding good title to such Repurchase Securities, free and clear of any liens or encumbrances, but exclusive of any representations or warranties concerning the Company or its business). If there is more than one Repurchase Holder of Repurchase Securities, the failure of any one Repurchase Holder to perform its obligations hereunder shall not excuse or affect the obligations of any other Repurchase Holder, and the closing of the purchases from such other Repurchase Holders shall not excuse, or constitute a waiver of the Company's or its designee(s)' rights against, the defaulting Repurchase Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Miscellaneous Issues*.

1) If the Company or its designee shall make available, at the time and place and in the amount and form provided in this Agreement, the consideration for the Repurchase Securities to be purchased in accordance with the provisions of this <u>Section 6</u>, then from and after such time, (i) the Repurchase Holder from whom such Repurchase Securities are to be repurchased shall cease to have any rights as a holder of such Repurchase Securities (other than the right to receive payment of such consideration in accordance with this <u>Section 6</u>), (ii) such Repurchase Securities shall be deemed purchased in accordance with the applicable provisions hereof and the purchaser thereof shall be deemed the owner (of record and beneficially) and holder of such securities, whether or not the certificate (if certificated) representing such Repurchase Securities has been delivered as required by this Agreement and the Company shall update its ownership ledger accordingly and (iii) the purchaser(s) thereof may complete the transfer power executed by the Optionee attached hereto as <u>Exhibit C</u> to evidence such transfer.

2) If any payment contemplated by this <u>Section 6(c)</u> would cause the Company or any of its Affiliates to violate Delaware or any other applicable law or would cause the Company or any of its Affiliates to breach any agreement to which any of them is a party relating to indebtedness for borrowed money or any other material agreement, the time periods provided in this <u>Section 6(c)</u> shall be tolled, and the Company may make such repurchases as soon as it is permitted to do so under such restrictions.

3) In the event of the Optionee's death or Disability, references in this <u>Section 6</u> to the Optionee shall be read to include the executor, executrix or representative of the Optionee, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Legends</u>. The certificate or certificates representing any Restricted Securities acquired pursuant to the exercise of this Option prior to the last day of the Unregistered Period shall bear the following legends or notices, as applicable (as well as any legends or notices, as applicable, required by applicable state and federal corporate and securities laws or any Stockholder-Related Agreements):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "THE SECURITIES REPRESENTED HEREBY OR REFERENCED HEREIN HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND REPURCHASE OPTIONS HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED FROM THE SECRETARY OF THE COMPANY AT NO CHARGE. SUCH TRANSFER RESTRICTIONS AND REPURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Transfer Restrictions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Voluntary Transfer Repurchase Option.* If Optionee desires to effect a voluntary Transfer of any of the Restricted Securities during the Unregistered Period, Optionee shall first give written notice to the Company of such intent to Transfer (the "<u>Offer Notice</u>") specifying (i) the number of the Restricted Securities (the "<u>Offered Shares</u>") and the date of the proposed Transfer (which shall not be less than thirty (30) days after the giving of the Offer Notice), (ii) the name, address, and principal business of the proposed transferee (the "<u>Transferee</u>"), and (iii) the price and other terms and conditions of the proposed Transfer of the Offered Shares to the Transferee. The Offer Notice by Optionee shall constitute an offer to sell all, but not less than all, of the Offered Shares, at the price and on the terms specified in such Offer Notice, to the Company and/or its designated purchaser. If the Company desires to accept Optionee's offer to sell, either for itself or on behalf of its designated purchaser, the Company shall signify such acceptance by written notice to Optionee within thirty (30) days following the giving of the Offer Notice. Failing such acceptance, Optionee's offer shall lapse on the thirty-first (31<sup>st</sup>) day following the giving of the Offer Notice. With such written acceptance, the Company shall designate a day not later than the later of (i) twenty (20) days following the date of giving its notice of acceptance, or (ii) the closing date in the Offer Notice, on which the Company or its designated purchaser shall deliver the purchase price of the Offered Shares (in the same form as provided in the Offer Notice) and Optionee shall deliver to the Company or its designated Purchaser, as applicable, all certificates evidencing the Offered Shares endorsed in blank for transfer or with separate stock powers endorsed in blank for transfer. The Company may in its sole and absolute discretion, notify the Optionee within thirty-one (31) days following the giving of the Offer Notice that it does not permit the Transfer of the Offered Shares to the Transferee pursuant to the terms and conditions set forth in the Offer Notice in which event any such Transfer or attempted Transfer by the Optionee to the Transferee shall be null and void. Upon the lapse without acceptance by the Company of Optionee's offer to sell the Offered Shares, and unless the Company shall provide written notice to the Optionee within thirty-one (31) days following the giving of the Offer Notice that it will not permit the Transfer of the Offered Shares to the Transferee pursuant to the terms and conditions set forth in the Offer Notice, Optionee shall be free to Transfer the Offered Shares not purchased by the Company or the designated purchaser to the Transferee (and no one else), for a price and on terms and conditions which are no more favorable to the Transferee than those set forth in the Offer Notice, for a period of thirty (30) days thereafter, but after such period the restrictions of this Section 6 shall again apply to the Restricted Securities. The Offered Shares so Transferred by Optionee to the Transferee shall continue to be subject to all of the terms and conditions of this Section 6 (including paragraph (c) of this <u>Section 6</u>) and the Company shall have the right to require, as a condition of such Transfer, that the Transferee execute an agreement substantially in the form and content of the provisions of this Section 6, as well as any Stockholder-Related Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Involuntary Transfer Repurchase Option*. Whenever, during the Unregistered Period, Optionee has any notice or knowledge of any attempted, pending, or consummated involuntary Transfer or lien or charge upon any of the Restricted Securities, whether by operation of law or otherwise, Optionee shall give immediate written notice thereof to the Company. Whenever the Company has any other notice or knowledge of any such attempted, impending, or consummated involuntary Transfer, lien, or charge, it shall give written notice thereof to the Optionee. In either case, Optionee agrees to disclose forthwith to the Company all pertinent information in his possession relating thereto. If during the Unregistered Period any of the Restricted Securities are subjected to any such involuntary Transfer, lien, or charge, the Company and its designated purchaser shall at all times have the immediate and continuing option to purchase such of the Restricted Securities upon notice by the Company to Optionee or other record holder at a price and on terms determined according to <u>Section 6(c)</u> above, and any of the Restricted Securities so purchased by the Company or its designated purchaser shall in every case be free and clear of such Transfer, lien, or charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) *Excepted Transfers*. The provisions of <u>Sections 6(e)(i)</u> and <u>(ii)</u> shall not apply to Transfers of Restricted Securities by Optionee, either during his or her lifetime or upon his or her death, to his or her spouse and/or lineal descendants, with the Consent of the Committee, to the trustee of any trusts for the sole benefit of the Optionee and/or the Optionee's spouse and/or the Optionee's lineal descendants, or any partnership, limited liability company, corporation, or other entity all of the beneficial owners of which are the Optionee and/or the Optionee's spouse and/or the Optionee's lineal descendants, provided, however, that during the Unregistered Period Optionee shall continue to be subject to all of the terms and provisions of this <u>Section 6</u> with respect to any remaining present or future interest whatsoever he/she/they may have in the transferred Restricted Securities, and, further provided that during the Unregistered Period the transferee of any such Restricted Securities shall likewise be subject to all such terms and conditions of this Section 6 as though such transferee were a party hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Drag-Along</u>. In the event of a Change in Control, the Company shall have the right (but not the obligation) to require the sale to the acquirer such percentage of the Restricted Securities (including any Restricted Securities transferred pursuant to <u>Section 6(e)</u>) as the Company shall elect, up to and including the percentage of the Company's equity securities held by the selling equityholders which are sold by such selling equityholders in such Change in Control, for the price per share (after taking into account any applicable liquidation or other preferences) and the same form of consideration as the selling equityholders (except that if such consideration includes securities and Optionee or such other Optionee is not an "accredited investor" or receipt of the securities by such Person would otherwise require registration or qualification of such securities, the Company may cause to be paid, in lieu of such securities, an amount of cash equal to the Fair Market Value of such securities (as determined by the Committee in its sole discretion) to such Person). The foregoing provision shall not in any way limit or be construed to limit the right of the Company to require the Optionee to execute any Stockholder-Related Agreement upon or following the exercise of the Option or the effect of any different drag-along or similar right of the Company or any of its stockholders that may be applicable to the Restricted Securities pursuant to such agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Voting Rights</u>. As a condition to the Optionee's exercise of any Option pursuant to this Agreement, the Company may in its discretion require that the Optionee enter into a voting agreement that grants the Company the voting rights for all Shares acquired pursuant to the exercise of such Options, until the earlier of (i) 10 years from the date of exercise of the Option, or (ii) the end of the Unregistered Period, such voting agreement to be in such form as the Company reasonably may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Market Stand-Off Agreement</u>. In the event of an initial public offering of the Company's securities and upon request of the Company or the underwriters managing any underwritten offering of the Company's securities, the Optionee agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Shares (other than those included in the registration) acquired pursuant to the exercise of the Option, without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days) from the effective date of such registration as may be requested by the Company or such managing underwriters.

7. ***Optionee's Representations***. In the event that the Company's issuance of the Shares purchasable pursuant to the exercise of this Option has not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached to this Agreement as Exhibit A or in such other form as the Company may request.

8. ***Transferability of Option***. Unless otherwise determined by the Committee if and to the extent the Option is a Non-Qualified Stock Option, the Option granted hereby is not Transferable otherwise than by will or under the applicable laws of descent and distribution and during the lifetime of the Optionee the Option shall be exercisable only by the Optionee or the Optionee's guardian or legal representative. In addition, the Option shall not be assigned, negotiated, pledged or hypothecated in any way (whether by operation of law or otherwise), and the Option shall not be subject to execution, attachment or similar process. Upon any attempt to Transfer, assign, negotiate, pledge or hypothecate the Option, or in the event of any levy upon the Option by reason of any execution, attachment or similar process contrary to the provisions hereof, the Option shall immediately become null and void. All of the terms and conditions of this Agreement, including Transfer restrictions, vesting conditions and repurchase rights, shall be binding upon the executors, administrators, heirs, successors, assigns and any permitted transferees of the Optionee, *mutatis mutandis*.

9. ***No Rights of Stockholders***. Neither the Optionee nor any personal representative (or Beneficiary) shall be, or shall have any of the rights and privileges of, a stockholder of the Company with respect to any Shares purchasable or issuable upon the exercise of the Option, in whole or in part, prior to the date on which the Shares are issued.

10. ***No Right to Continued Employment or Service***. Neither the Option nor this Agreement shall confer upon the Optionee any right to continued employment or service with the Company or any of its Affiliates.

11. ***Interpretation / Provisions of Plan Control***. This Agreement is subject to all the terms, conditions and provisions of the Plan, including the amendment provisions thereof, and to such rules, regulations and interpretations relating to the Plan adopted by the Committee as may be in effect from time to time. If and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. The Optionee accepts the Option subject to all of the terms and provisions of the Plan and this Agreement. The undersigned Optionee hereby accepts as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Plan and this Agreement, unless shown to have been made in an arbitrary and capricious manner.

12. ***Miscellaneous.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law; Jurisdiction; Jury Trial Waiver</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) THE GENERAL CORPORATION LAW OF THE STATE OF DELAWARE SHALL GOVERN ALL QUESTIONS ARISING UNDER THIS AGREEMENT CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND THE OPTIONEE OR ANY OTHER HOLDER OF THE OPTION OR SHARES. ALL OTHER QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF DELAWARE OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF DELAWARE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In addition, the Optionee (i) consents to submit himself, herself or itself to the personal jurisdiction of the federal and state courts located in Texas if any dispute arises out of this Agreement or any of the transactions contemplated by this Agreement; (ii) agrees that he, she or it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from such court; (iii) agrees that he, she or it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the federal or state courts located in Texas; and (iv) to the fullest extent permitted by law, consents to service being made through the notice procedures set forth in <u>Section 12(d)</u>. The Optionee hereby agrees that, to the fullest extent permitted by law, service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in <u>Section 12(d)</u> shall be effective service of process for any suit or proceeding in connection with this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **NOTICE: BY SIGNING THIS AGREEMENT, EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, HIS, HER OR ITS RIGHT TO A JURY TRIAL IN CONNECTION WITH ALL CLAIMS, CAUSES OF ACTIONS AND PROCEEDINGS (WHETHER IN CONTRACT, IN TORT, AT LAW OR OTHERWISE) THAT MAY BE BASED UPON, ARISE OUT OF OR BE RELATED TO THE PLAN AND THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, CAUSE OF ACTION OR PROCEEDING WILL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Amendments and Waivers</u>. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, shall be effective unless in writing signed by the parties to this Agreement. No delay or failure to require performance of any provision of this Agreement shall constitute a waiver of that provision as to that or any other instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Successors and Assigns</u>. Except as otherwise provided in this Agreement or in the Plan, this Agreement, and the rights and obligations of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this Agreement may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Notices</u>. Any notice provided for in this Agreement shall be in writing and shall be (a) personally delivered or sent by reputable overnight courier service (charges prepaid) to the Company at the address set forth below and to the Optionee at such address as reflected on the signature page hereto, or at such address or to the attention of such other Person as the Optionee party has specified by prior written notice to the sending party or (b) sent by electronic mail (with electronic confirmation receipt). Notices will be deemed to have been given hereunder when delivered personally and one day after deposit with a reputable overnight courier service. Notice given by facsimile shall be deemed to have been given hereunder when the facsimile transmission itself is received, except if receipt by facsimile cannot be established, in which event notice shall be deemed to have been given when the confirmation is deemed to have been received (as specified in the preceding sentence). The Company's address is:

Immersed Inc.<br> 106 E. 6<sup>th</sup> STE 900-202

Austin, Texas 78701

Attn: Renji Bijoy<br> Email: renji@immersed.com

with a copy to (which shall not constitute notice):

 

Greenberg Traurig, LLP

One Vanderbilt Avenue

New York, NY 10017

Attention: Adam Namoury

Email: Adam.Namoury@gtlaw.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Severability</u>. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate in good faith to replace unenforceable provision(s) with an enforceable provision(s), the effect of which comes as close as possible to that of the unenforceable provision(s). In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Construction</u>. This Agreement is the result of negotiations between and has been reviewed by each of the parties hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto, and no ambiguity shall be construed in favor of or against any one of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, and each such counterpart hereof shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Electronic Delivery</u>. The Company may, in its sole discretion, decide to deliver any documents related to this Agreement by electronic means. Optionee hereby consents to receive such documents by electronic delivery and agrees to participate through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Attorney Representation</u>. Optionee acknowledges that: (a) he, she or it has read this Agreement; (b) he, she or it has either been represented in the preparation, negotiation and execution of this Agreement by legal counsel of his own choice or has voluntarily declined to seek such counsel; and (c) he, she or it understands the terms and consequences of this Agreement and is fully aware of the legal and binding effect of this Agreement. Optionee understands that the Company and/or its stockholders have been represented in the preparation, negotiation and execution of this Agreement by Greenberg Traurig, LLP and that Greenberg Traurig, LLP has not represented Optionee in the preparation, negotiation and execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Entire Agreement</u>. This Agreement, together with the Plan and other agreements or instruments referred to herein or therein, represents the entire understanding between the Optionee and the Company regarding the subject matter hereof and supersedes all prior letters, discussions or other communications between the Optionee and the Company or any of its Affiliates regarding equity- or equity-based compensation from the Company or any of its Affiliates. The Optionee represents that neither the Company nor any of its Affiliates have made any representations or promises regarding equity- or equity-based compensation that are not set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Section 83(i) Disclosure</u>. The Participant is hereby advised, in accordance with IRS Notice 2018-97, that, unless otherwise determined by the Company, no election under Section 83(i) of the Code will be available with respect to any Shares delivered upon exercise of the Option, regardless of whether the Shares constitute "qualified stock" to a "qualified employee" as such terms are defined in Section 83(i) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Interpretation</u>. The section and paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. The terms "include," "including" and "includes" mean "include, without limitation", "including, without limitation" and "includes, without limitation", respectively.

13. ***Section 409A.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is intended that the Option awarded pursuant to this Agreement be exempt from Section 409A of the Code ("<u>Section 409A</u>"). The provisions of this Agreement and the Plan shall be interpreted in a manner consistent with this intention. In the event that the Company believes, at any time, that any benefit or right under this Agreement is subject to Section 409A, then the Committee may (acting alone and without any required consent of the Optionee) amend this Agreement in such manner as the Committee deems necessary or appropriate to be exempt from or otherwise comply with the requirements of Section 409A (including amending the Agreement to increase the Exercise Price to such amount as may be required in order for the Option to be exempt from Section 409A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, the Company does not make any representation to the Optionee that the Option awarded pursuant to this Agreement is exempt from, or satisfies, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless the Optionee or any Beneficiary for any tax, additional tax, interest or penalties that the Optionee or any Beneficiary may incur in the event that any provision of this Agreement, or any amendment or modification thereof or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Optionee hereby is advised to consult with his or her own tax advisors as to the tax consequences of the grant, vesting and exercise of the Option and sale of the Shares.

14. ***Clawback.*** If the Optionee, at any time during his or her Continuous Service or thereafter, breaches any of the provisions of any non-competition, non-solicitation, non-interference, non-disparagement, confidentiality or other restrictive covenant by which the Optionee is or may become bound for the benefit of the Company or any Affiliate of the Company, then, in addition to any other remedy that may be available to the Company or any of its Affiliates in law or equity and/or pursuant to any other provisions of this Agreement, the Plan and/or the applicable agreement with the restrictive covenant, the Committee may, in its sole discretion, (a) cancel the Option (whether or not then vested or exercisable) in its entirety without any payment in respect thereof, (b) cancel the Shares issued upon exercise (if applicable) upon payment of a cash payment in an amount equal to the lesser of the exercise price paid in respect thereof and the Fair Market Value thereof, as of the date of such cancellation, as determined by the Committee, and/or (c) require the Optionee to repay any dividends, repurchase payments or other proceeds, whether in cash or stock, received by the Optionee (or any permitted transferee) in respect of the Option, and/or in respect of the Shares acquired upon exercise of the Option, in the two-year period preceding the date of such breach.

15. ***Restrictive Covenants*.** The Optionee, as consideration for, and as a condition to receiving, the Option hereunder agrees to, and shall be obligated to, concurrently with the execution of this Agreement, enter into any restrictive covenant agreement in such form as the Company reasonably may request, including, but not limited to, the Company's Invention Assignment, Confidentiality, Non-Solicit, and Non-Compete Agreement.

16. ***[California Award***. The Option is a California Section 25102(o) Award as defined in Appendix A to the Plan.]

[Remainder of page intentionally left blank]

**IN WITNESS WHEREOF,** the undersigned have executed this Agreement as of the Grant Date.

---

| |
|:---|
| **COMPANY:** |
| IMMERSED INC. |
| By: |
| Name: |
| Its: |

---

The Optionee acknowledges receipt of a copy of the Plan and represents that he, she or it has reviewed the provisions of the Plan and this Agreement in their entirety, is familiar with and understands their terms and provisions, and hereby accepts this Option subject to all of the terms and provisions of the Plan and the Agreement. The Optionee further represents that he, she or it has had an opportunity to obtain the advice of counsel and the Optionee's tax adviser prior to executing this Agreement.

---

| | |
|:---|:---|
| **OPTIONEE:** | **OPTIONEE:** |
| By: |  |
|  | [ ] |
| Address: |  |

---

*Signature Page to Stock Option Agreement*

**EXHIBIT A**

**SPOUSAL CONSENT**

I, the undersigned spouse of ___________, hereby acknowledge that I have read (i) the Immersed Inc. 2025 Equity Incentive Plan Stock Option Agreement, dated as of the __ day of _________, 2025, by and between Immersed Inc., a Delaware corporation, and my spouse (the "<u>Agreement</u>"), and (ii) the Immersed Inc. 2025 Equity Incentive Plan (the "<u>Plan</u>"), and that I understand their contents. I am aware that the Agreement, the Plan and/or other Stockholder-Related Agreements (as defined in the Plan) (collectively, the Agreement, the Plan and other applicable Stockholder-Related Agreements, the "<u>Applicable Agreements</u>") provide for the repurchase of my spouse's Shares (as such term is defined in the Agreement) under certain circumstances and imposes other restrictions on the transfer of such Shares. I agree that my spouse's interest in the Shares are subject to the Applicable Agreements and any interest I may have in such Shares shall be irrevocably bound by the Applicable Agreements and further that my community property interest, if any, shall be similarly bound by the Applicable Agreements.

I am aware that the legal, financial and other matters contained in the Applicable Agreements are complex and I am free to seek advice with respect thereto from independent counsel. I have either sought such advice or determined after carefully reviewing the Applicable Agreements that I will waive such right.

Spouse

Witness

**EXHIBIT B**

**INVESTMENT REPRESENTATION STATEMENT**

PURCHASER: [__________]

COMPANY: Immersed Inc.

SECURITY: Series A Common Stock of Immersed Inc.

NUMBER OF SHARES: [__________]

DATE: [__________]

In connection with the purchase of the above-listed Securities, I, the Purchaser, represents to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) I am aware of the Company's business affairs and financial condition, and have acquired sufficient information about the Company and its risks as an early-stage entity to reach an informed and knowledgeable decision to acquire the Securities. I have had access to management of the Company and an opportunity to ask questions about the investment. I am purchasing these Securities for my own account for investment purposes only and not with a view to, or for the resale in connection with, any "distribution" thereof for purposes of the Securities Act of 1933, as amended (the "Securities Act").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) I understand that the Company's issuance of the Securities has not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of my investment intent as expressed herein. In this connection, I understand that, in the view of the Securities and Exchange Commission (the "SEC"), the statutory basis for such exemption may be unavailable if my representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the Securities, or for a period of one year or any other fixed period in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) I further understand that the Securities must be held indefinitely unless the transfer is subsequently registered under the Securities Act or unless an exemption from registration is otherwise available. Moreover, I understand that the Company is under no obligation to register any transfer of the Securities. In addition, I understand that the certificate evidencing the Securities will be imprinted with a legend which prohibits the transfer of the Securities unless registered or such registration is not required in the opinion of counsel for the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) I am familiar with the provisions of Rule 701 and Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of "restricted securities" acquired, directly or indirectly, from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions specified in such rules as they may be in effect at the time of any resale by me. Notwithstanding this paragraph (d), I acknowledge and agree to the restrictions set forth in paragraph (e) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) I further understand that in the event all of the applicable requirements of Rule 144 or Rule 701 are not satisfied, registration under the Securities Act, compliance with Section 4(a)(2), Regulation D, Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that Rule 144 and Rule 701 are not exclusive, the Staff of the SEC has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to Rule 144 or Rule 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at their own risk.

Signature of Purchaser: <br> 

Date:_____________________

**<u>EXHIBIT C</u>**

**ASSIGNMENT SEPARATE FROM CERTIFICATE**

FOR VALUE RECEIVED, [insert name] ("<u>Optionee</u>") does hereby sell, assign and transfer unto _________________________, _______________ ________________ of Immersed Inc., a Delaware corporation (the "<u>Company</u>"), standing in the undersigned's name on the books of the Company represented by Certificate Nos. _________________ herewith and does hereby irrevocably constitute and appoint each principal of _________________________ (acting alone or with one or more other such principals) as attorney to transfer said securities on the books of the Company with full power of substitution in the premises to the appropriate acquirer thereof pursuant to that certain Option Agreement executed by Optionee, or any agreement or instrument referred to therein or contemplated thereby, and under no other circumstances.

Dated:       <br> Name: [insert name]

## Ex1A-6

**Exhibit 6.8**

**STOCK EXCHANGE AGREEMENT**

This STOCK EXCHANGE AGREEMENT (this "**Agreement**"), dated as of December 29, 2025, is entered into by and among Immersed Inc., a Delaware corporation (the "**Company**"), and the person listed on the signature page hereto (the "**Stockholder**").

**RECITALS**

WHEREAS, the Company has filed with the United States Securities and Exchange Commission an offering statement on Form 1-A in connection with an exempt offering under Regulation A, Tier 2 (the "**Offering**") promulgated under Section 3(b)(2) of the Securities Act of 1933, as amended, and in connection with the Offering, the Company performed certain corporate governance changes;

WHEREAS, following stockholder consent, on December 29, 2025, the Company filed with the Secretary of State of Delaware its Second Amended and Restated Certificate of Incorporation reclassifying its capital stock;

WHEREAS, following reclassification, the Stockholder currently owns 80,000,000 shares of Series B common stock, par value $0.00001 per share, of the Company (the "**Series B Common Stock**" and "**Stockholder's Common Stock**," respectively);

WHEREAS, the Company agreed to exchange up to all Stockholder's 80,000,000 shares of Series B Common Stock for shares of Series C Shares (as defined below);

WHEREAS, upon the execution of this Agreement, the Company shall exchange the Stockholder's 75,833,333 shares of Series B Common Stock as detailed herein for 75,833,333 shares of Series C Common Stock (the "**Series C Shares**" and the "**Exchange of Shares**," respectively); and

WHEREAS, the Stockholder agrees to accept the 75,833,333 shares of Series C Shares in exchange for the Stockholder's 75,833,333 shares of Series B Common Stock in accordance with the terms of this Agreement;

WHEREAS, the Stockholder desires to retain 4,166,667 shares of Series B Common Stock that the Stockholder will continue to hold after the Exchange of Shares;

NOW THEREFORE, in order to implement the foregoing and in consideration of the mutual agreements contained herein and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the Company and the Stockholder hereby agree as follows:

**AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Exchange of Shares; Replacement of Certificates</u>. The Company and the Stockholder hereby agree that the Company shall issue to the Stockholder, and the Stockholder shall acquire from the Company, the 75,833,333 shares of Series C Shares in consideration of and in exchange for (i) the Stockholder's 75,833,333 shares of Series B Common Stock, (ii) the surrender by the Stockholder of the 75,833,333 shares of Stockholder's Series B Common Stock, and (iii) the release by the Stockholder as set forth in <u>Section 2</u>. In furtherance of the foregoing, the Stockholder shall surrender to the Company a certificate or certificates evidencing the Stockholder's 75,833,333 shares of Series B Common Stock (the "**Share Certificate**"), if any, for cancellation, upon the surrender of such Share Certificate, such Share Certificate shall forthwith be canceled and the Company shall, subject to <u>Section 3</u>, execute and deliver to the Stockholder a stock certificate or certificates evidencing the 75,833,333 shares of Series C Shares, as well as the 4,166,667 shares of Series B Common Stock that the Stockholder will continue to hold after the Exchange of Shares. For U.S. federal income tax purposes, the Exchange of Shares is intended to be treated as a tax-deferred recapitalization under section 368(a)(1)(E) of the Internal Revenue Code of 1986, as amended (the "**Code**"), and/or as a tax-deferred exchange described in section 1036(a) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Release of Claims</u>. The Stockholder, its respective successors and assigns, and all persons or entities acting by, through, under or in concert with the Stockholder, do hereby release and forever discharge the Company, all past and present officers, directors, employees, stockholders, counsel, agents, representatives, and advisors of the Company, all successors and past and present affiliates and subsidiaries of the Company, if any, and all of the Company's successors' and past and present subsidiaries' and affiliates', if any, officers, directors, employees, stockholders, counsel, agents, representatives, and advisors of and from any and all manner of (and hereby waive any) claims, actions or proceedings of any nature which have been, could have been, or could be brought in any local, state or federal court, administrative agency or other tribunal, including but not limited to, those arising under common law, federal or state law, whether in law or in equity, suits, debts, liens, contracts, agreements, promises, liabilities, claims, demands, damages, losses, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent, including all claims for incidental, consequential, punitive, rescissory or exemplary damages or equitable relief, which any party hereto now has or may hereafter have against any of the foregoing, arising out of or related to the prior issuance of, or any alleged prior issuance of, the Stockholder's Series B Common Stock and/or the execution and delivery of the Share Certificate, including for the avoidance of doubt and without limitation any right, title, or interest in or to any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Governing Law</u>. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflict of laws thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Assignment; Binding Effect; Benefits</u>. This Agreement is not assignable without the written consent of each of the Company and the Stockholder. Subject to the foregoing, the provisions of this Agreement shall be binding upon and inure to the benefit of the Company, the Stockholder and their respective heirs, legal representatives, successors and permitted assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any person or entity other than the Company, the Stockholder and their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Amendment</u>. This Agreement may be amended only by a written instrument signed by each of the Company and the Stockholder which specifically states that it is amending this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Counterparts</u>. This Agreement may be signed in any number of counterparts (manually or by facsimile, conformed or electronic signature), each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument.

[Signature Pages Follow]

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

---

| | |
|:---|:---|
| IMMERSED INC. | IMMERSED INC. |
| By: | /s/ Renji Bijoy |
| Name: | Renji Bijoy |
| Title: | Chief Executive Officer |

---

[*Signature Page to Stock Exchange Agreement*]

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

---

| |
|:---|
| STOCKHOLDER |
| /s/ Renji Bijoy |
| Renji Bijoy |

---

[*Signature Page to Stock Exchange Agreement*]

## Ex1A-11

**Exhibit 11.1**

![](tm2528799d3_ex11-1img001.jpg)

**CONSENT OF INDEPENDENT PUBLIC ACCOUNTING FIRM**

December 29, 2025

To the Board of Directors of Immersed Inc.,

We hereby consent to the inclusion of our Auditors' Report, dated February 14, 2025, on the financial statements of Immersed Inc. – which comprise the balance sheet as of December 31, 2024 and December 31, 2023, and the related statements of income, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements— in the Company's Form 1-A. We also consent to the inclusion of our Financial Review Report, dated December 18, 2025, on the interim financial statements of Immersed Inc. – which comprise the balance sheet as of June 30, 2025, and the related statements of income, changes in stockholders' equity, and cash flows for the interim six month period then ended, and the related notes to the financial statements— in the Company's Form 1-A.

We also consent to application of such report to the financial information in the Report on Form 1-A, when such financial information is read in conjunction with the financial statements referred to in our report.

Best,

/s/ Alice.CPA LLC

Alice.CPA LLC

Robbinsville, New Jersey

December 29, 2025

![](tm2528799d3_ex11-1img002.jpg)

## Ex1A-12

**Exhibit 12.1**

![](tm2528799d3_ex12-1img001.jpg)

December 29, 2025

Board of Directors

Immersed Inc.

106 E. 6th St. STE 900-202

Austin, Texas 78701

Re: **<u>Offering Statement on Form 1-A</u>**

Dear Board of Directors,

We have acted as counsel to Immersed Inc., a Delaware corporation (the "<u>Company</u>"), in connection with the proposed primary offering of securities by the Company (the "<u>Primary Offering</u>") and secondary offering of securities by certain selling stockholders of the Company (the "<u>Secondary Offering</u>" and, together with the Primary Offering, the "<u>Offering</u>"), pursuant to an offering statement on Form 1-A (File No.: 024-12657) (as may be amended, the "<u>Offering Statement</u>") filed with the U.S. Securities and Exchange Commission (the "<u>Commission</u>") pursuant to Regulation A under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"). The Offering Statement relates to and covers (i) the primary offering for the issuance and sale of up to 31,818,181 shares (the "<u>Primary Shares</u>") of Series B Common Stock, par value $0.00001 per share, of the Company ("<u>Series B Common Stock</u>") by the Company, (ii) the secondary offering for sale of up to 6,060,606 shares (the "<u>Secondary Shares</u>") of Series B Common Stock by certain selling stockholders (the "<u>Selling Stockholders</u>"), and (iii) the issuance of up to 6,363,636 shares of Series B Common Stock to eligible investors as bonus shares (the "<u>Bonus Shares</u>" and, together with the Primary Shares and the Secondary Shares, the "<u>Securities</u>"). We have been requested by the Company to render this opinion letter with respect to the legality of the Securities in accordance with the requirements of Section 12 of Item 17 of Part III of Form 1-A.

In rendering the opinions expressed below, we have examined and relied upon originals (or copies certified or otherwise identified to our satisfaction) of the Company's certificate of incorporation and bylaws, each as amended and currently in effect, the Offering Statement, the offering circular forming a part of the Offering Statement (the "<u>Offering Circular</u>") and the exhibits thereto, the subscription agreement (the "Subscription Agreement") as well as such other records, documents, agreements, certificates and instruments, and we have considered such questions of law and such matters of fact as we have deemed relevant and necessary as a basis for the opinions set forth herein.

In our examination, we have assumed, without independent investigation, the authenticity of all documents submitted to us as originals, the genuineness of all signatures, the legal capacity of all natural persons who have executed any of the documents reviewed by us, and the conformity with the original documents of any copies thereof submitted to us for our examination.

In making our examination of documents executed by parties other than the Company, we have assumed that such other parties had the power, corporate or other, to enter into and perform all of their obligations thereunder, and have also assumed the due authorization by all requisite action, corporate or other, the execution and delivery by such other parties of such documents, and the validity and binding effect thereof. We have also assumed the accuracy of all other information provided to us by the Company during the course of our investigations, on which we have relied in issuing the opinions expressed below. We have further assumed that the sale and issuance of the Securities will not exceed, as applicable, (a) the aggregate amount of Securities authorized under the resolutions in connection with the Offering, and (b) the authorized number of shares of Series B Common Stock set forth in the certificate of incorporation, as amended.

Greenberg Traurig, P.A. ■ Attorneys at Law ■ WWW.GTLAW.COM

Immersed Inc.

December 29, 2025

Based upon the foregoing, and subject to the assumptions, qualifications and limitations set forth herein, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the Securities have been duly authorized
 by all necessary corporate action of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. when the Primary Shares are paid for and
 sold and issued by the Company, pursuant to the Subscription Agreement and in the manner described
 in the Offering Statement, such shares will be validly issued, fully paid and non-assessable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the Secondary Shares are legally issued,
 fully paid, and non-assessable, and may be resold pursuant to the Subscription Agreement and in the manner described in the Offering Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. the Bonus Shares when issued by the Company,
 pursuant to the Subscription Agreement and in the manner described in the Offering Statement
 will be validly issued, fully paid, and non-assessable.

The foregoing opinions are limited to the General Corporation Law of the State of Delaware, and the federal securities laws of the United States, and we do not express any opinion herein with respect to the laws of any other jurisdiction. In addition, we express no opinions other than as expressly set forth herein, and no opinion may be inferred or implied beyond that expressly stated herein.

The foregoing opinions are subject to (i) the effect of bankruptcy, insolvency, reorganization, preference, fraudulent transfer, moratorium or other similar laws relating to or affecting the rights and remedies of creditors; (ii) the effect of general principles of equity, whether considered in a proceeding in equity or at law (including the possible unavailability of specific performance or injunctive relief), concepts of materiality, reasonableness, good faith and fair dealing, and the discretion of the court before which a proceeding is brought; and (iii) the invalidity under certain circumstances under law or court decisions of provisions providing for the indemnification of or contribution to a party with respect to a liability where such indemnification or contribution is contrary to public policy.

We hereby consent to the filing of this opinion letter as Exhibit 12.1 to the Offering Statement, and to the reference to our firm appearing under the heading "Legal Matters" in the Offering Circular. We further consent to the incorporation by reference of this opinion letter and consent to any further amendment to the Offering Statement. In giving such consents, we do not thereby admit that we are within the category of persons whose consent is required to be filed under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

This opinion letter is for your benefit in connection with the Offering Statement and may be relied upon by you and by persons entitled to rely upon it pursuant to the applicable provisions of the Securities Act.

---

| |
|:---|
| Sincerely, |
| /s/ Greenberg Traurig, P.A. |
| Greenberg Traurig, P.A. |

---

Greenberg Traurig, P.A. ■ Attorneys at Law ■ WWW.GTLAW.COM

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Immersed Inc.

**Jurisdiction of Incorporation/Organization:** DE

**Year of Incorporation:** 2017

**CIK:** 0001817417

**I.R.S. Employer Identification Number:** 81-5011777

**Primary Standard Industrial Classification Code:** 3577

**Total number of full-time employees:** 17

**Total number of part-time employees:** 10

**Address of Principal Executive Offices:** 106 E. 6th St. STE 900-202, —, AUSTIN, TX 78701

**Company Phone:** 512-649-5589

**Person to contact:** Rebecca DiStefano

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount        |
|:---|:---|
| Cash and Cash Equivalents                | $372274.00    |
| Investment Securities                    | $0.00         |
| Accounts and Notes Receivable            | $2540.00      |
| Property, Plant and Equipment (PP&E)     | $30831.00     |
| Total Assets                             | $653026.00    |
| Accounts Payable and Accrued Liabilities | $6361824.00   |
| Long-Term Debt                           | $6553466.00   |
| Total Liabilities                        | $16439541.00  |
| Total Stockholders' Equity               | $-15786515.00 |
| Total Liabilities and Equity             | $653026.00    |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $493936.00   |
| Costs and Expenses Applicable to Revenues | $56779.00    |
| Depreciation and Amortization             | $18767.00    |
| Net Income                                | $-1876218.00 |
| Earnings Per Share - Basic                | -0.32        |
| Earnings Per Share - Diluted              | -0.32        |

**Auditor Information**

| Metric          | Amount    |
|:---|:---|
| Name of Auditor | Alice CPA |

### Outstanding Securities

| Class                    |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Series B Common Stock    |      57569371 | 000000N/A | N/A               |
| Series 1 Preferred Stock |     166305280 | 000000N/A | N/A               |
| Convertible Notes        |      16916594 | 000000N/A | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** Yes

**Was or is the offering to commence within two days after qualification?** No

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** No

**Are there any resale securities by affiliates of the issuer?** Yes

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 44242423     |
| Number of securities outstanding                                | 57569371     |
| Price per security                                              | $0.66        |
| Issuer's aggregate offering price                               | $21000000.00 |
| Aggregate offering price of securities held by security holders | $4000000.00  |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $25000000.00 |

**Anticipated Fees**

| Service Provider   | Name                    | Fees       |
|:---|:---|:---|
| Auditor            | Alice CPA               | $33000.00  |
| Legal              | Greenberg Traurig, P.A. | $150000.00 |
| Promoters          |  |  |

**Estimated Net Proceeds to the Issuer:** $19380370.00

### Item 5. Jurisdictions in Which Securities are to be Offered

AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC, PR, A0, A1, A2, A3, A4, A5, A6, A7, A8, A9, B0, Z4

### Item 6. Unregistered Securities Issued or Sold Within One Year

**Name of Such Issuer:** Immersed Inc.

**Title of Securities Issued:** Convertible Promissory Notes

**Total Amount of Securities Issued:** 44140

**Amount of such securities sold by principal security holders:** 0

**Aggregate consideration:** $44,140 in gross proceeds sold, subject to final accounting.

**Basis for aggregate consideration:** —

**Securities Act Exemption:** Section 4(a)(2), Regulation D, Rule 506(b), Rule 506(c), Reg. CF, Section 4(a)(6).