# EDGAR Filing Document

**Accession Number:** 0001841851
**File Stem:** 0001669191-23-000267
**Filing Date:** 2023-3
**Character Count:** 135475
**Document Hash:** 5f8cfe9999350751f5f8d9d6128f7c18
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001669191-23-000267.hdr.sgml**: 20230321

**ACCESSION NUMBER**: 0001669191-23-000267

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 9

**FILED AS OF DATE**: 20230321

**DATE AS OF CHANGE**: 20230321

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Artificial Intelligence Economic Development Corp
- **CENTRAL INDEX KEY:** 0001841851
- **IRS NUMBER:** 825194418
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-27607
- **FILM NUMBER:** 23749789

**BUSINESS ADDRESS:**
- **STREET 1:** 6242 WARNER AVENUE , SUITE 7-F
- **CITY:** HUNTINGTON BEACH
- **STATE:** CA
- **ZIP:** 92647
- **BUSINESS PHONE:** 949-400-0126

**MAIL ADDRESS:**
- **STREET 1:** 6242 WARNER AVENUE
- **STREET 2:** SUITE 7-F
- **CITY:** HUNTINGTON BEACH
- **STATE:** CA
- **ZIP:** 92647

## Ex-99

html![](offeringpage.jpg)

### Attached PDF Documents

**Attachment 1:** `offeringstatement.pdf`

# Offering Statement for Artificial Intelligence Economic Development Corporation

This document is generated by a website that is operated by Netcapital Systems LLC ('Netcapital'), which is not a registered broker-dealer. Netcapital does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included in this document are the responsibility of, the applicable issuer of such securities. Netcapital has not taken any steps to verify the adequacy, accuracy or completeness of any information. Neither Netcapital nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information in this document or the use of information in this document.

All Regulation CF offerings are conducted through Netcapital Funding Portal Inc. ('Portal'), an affiliate of Netcapital, and a FINRA/SEC registered funding-portal. For inquiries related to Regulation CF securities activity, contact Netcapital Funding Portal Inc.:

**Paul Riss:**

paul@netcapital.com

Netcapital and Portal do not make investment recommendations and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Equity crowdfunding investments in private placements, Regulation A, D and CF offerings, and start-up investments in particular are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investments through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Additionally, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for start-up investing, start-ups should only be part of your overall investment portfolio. Further, the start-up portion of your portfolio may include a balanced portfolio of different start-ups. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company's control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

# The Company

1. What is the name of the issuer?

Artificial Intelligence Economic Development Corporation

6242 Warner Avenue

Suite 7-F

Huntington Beach, CA 92647

# Eligibility

2. The following are true for Artificial Intelligence Economic Development Corporation :

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding. (For more information about these disqualifications, see Question 30 of this Question and Answer format).
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding?

No.

# Directors, Officers and Promoters of the Company

4. The following individuals (or entities) represent the company as a director, officer or promoter of the offering:

Name

Kris Skrinak

Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates

3- year work experience (https://www.linkedin.com/in/skrinak) : (AWS) Global Machine Learning Segment Technical Lead - 5/2017 - Present Board Member, AIEDC- 5/2017 - Present; Kris is a Member of the Board of the Artificial Intelligence Economic Development Corporation. Short Bio: He has expertise in

Economics and Mathematics, as well as being the Global Machine Learning Technical Lead at Amazon Web Services (AWS), and the Co-Founder of the Machine Learning Group for the Amazon Partner Network (APN). Prior to Amazon --- Kris was a Computer Vision Architect at GoPro. He founded and sold 2 Silicon Valley startups in Finance and Network Monitoring. Kris started his career as a Quantitative Strategist at Goldman Sachs, developed predictive maintenance apps as an AI Engineer at ATT, and later was with Sun Microsystems where he developed a love for entrepreneurial ventures. His first start-up was Capital Technologies. CapTech developed a network monitoring system, renamed FogLight, and service organization, renamed SiteRock. FogLight was acquired by Quest Software Inc (NASDAQ: QSFT) and SiteRock by Navisite Inc (NASDAQ: NAVI). Kris left CapTech to be the lead investor and President of the Web-based investment research firm, ClearStation. After 18 months of aggressive growth Kris guided the sale of the company to E*TRADE Financial (NYSE: ET).

**Name**

Leonard S. Johnson Ph.D. student

**Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates**

3- year work experience (https://ideasplatformx.com/Leonard.html) : CEO, AIEDC - 2017 - Present; Leonard "LS" is the Founder and CEO of the Artificial Intelligence Economic Development Corporation. Short Bio: He is a "Stanford University Educated Entrepreneur" and a member of the National Diversity Coalition (NDC) -- additionally, he has been the former CEO of several Startups, as well as - an Author (2011), and conducting Senior Stock Loans for corporate executives. "LS" has also been a member of several other prominent organizations including some of the following: The Association for the Advancement of Artificial Intelligence (AAAI), The Internet Society, The Royal Institute of International Affairs (RIIA), Forbes CEO Network, and Citizens for Global Solutions. After completing Stanford's Post-Graduate SDRM Program, under the School of Engineering which focused on Decision and Probability Theory, as well as being part of the distinguishable low 17% graduation rate. He is now pursuing a Ph.D. Degree in Artificial Intelligence, where his work is focused on building a "Universal Artificial Intelligence" --- M.I.N.D ® Machine Intelligence NeuralNetwork Database with Sequential Decisions Based on Algorithmic Probability and the Markov Decision Processes (MDP) in A.I. --- centered around "IDEAS" in Economics, to take the process from Ideation to Monetization, (Endogenous Growth Theory), as well as to set Policy and Value Iteration.

**Name**

Dr. Alexander Nawrocki Ph.D.

**Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates**

3- year work experience (https://www.linkedin.com/in/anawrocki) : Chairman, AIEDC - 5/2020 to Present; CEO, Airspeed Equity - 2016 to Present; Dr. Nawrocki is the Chairman of the Artificial Intelligence Economic Development Corporation. Short Bio: Alexander is also the CEO of Airspeed Equity and brings more than 20 years of technology leadership, management, and industry experience in many areas. He has broad-based experience in several technical areas, as well as being a founding member of the Java-Consortium, he is active in and on several other technology standards boards, and chairs various technical and advisory committees. In addition to the above activities, he is also acting CEO and chairs several companies' Board of Directors. Dr. Nawrocki was responsible for managing all aspects of space operations for the Canadian-built, Space Station Robotics, among them systems used to maintain and operate the International Space Station and Space Shuttle. He staffed and managed a team of 1,200 engineers in multiple geographies with responsibility for designing, developing, and maintaining embedded, real-time, safety-critical robotic systems. Dr. Nawrocki also served as a Professor at École de technologie supérieure (ÉTS) teaching "Object-Oriented Software Engineering" (Graduate Level) and a Professor at École Polytechnique de Montréal Educational Institution teaching "Operations of Human Space Flights" (Graduate Level) and "Space Tele-robotics" (Graduate Level). Dr. Nawrocki holds a Bachelor's degree

with Honors in Electronic Engineering, a Master’s degree in Computer Science (“Summa Cum Laude”), and a Ph.D. in Aerospace Engineering.

# **Name**

Dr. Radosław Adamus Ph.D.

# ***Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates***

3- year work experience: CSO, AIEDC - 5/2020 - Present; Assistant Professor at Lodz University of Technology - 2016 - Present; Short Bio: Radosław is the CSO of the Artificial Intelligence Economic Development Corporation, he is also the Assistant Professor at the Institute of Applied Computer Science at Lodz University of Technology (TUL). Radosław received his Ph.D. in Computer Science from the Institute of Computer Science Polish Academy of Science in 2005. He is a passionate teacher and researcher in the field of software engineering with a particular emphasis on distributed system design, software architecture, clean code, and testing. During his career, he participated in many scientific projects in different roles. In addition to academic activity, he is also involved with professional software development in several different roles -- such as; Developer, Analysts, Architect. The experience he has gained is used in teaching his students. The result is the quality and confirmation for 'Software testing methods' courses conducted for Computer Science students at the Faculty of Electrical, Electronic, Computer and Control Engineering, at the Lodz University of Technology (TUL).

# **Name**

Dr. Andrew Romanowski Ph.D., D.Sc.

# ***Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates***

3- year work experience: CTO, AIEDC - 5/2020 - Present; Vice Dean and Assistant Professor at Lodz University of Technology - 2016 - Present; Short Bio: Andrew is the CTO of Artificial Intelligence Economic Development Corporation, he is also the Vice Dean and Assistant Professor at the Institute of Applied Computer Science at Lodz University of Technology (TUL). His Ph.D. thesis was related to statistical algorithms for inverse problem-solving in electrical process tomography measurement systems. His DSc (habilitation) was related to contextual data processing and crowdsourcing methods for industrial processes monitored with tomography systems. Andrew’s current research focuses on combining data together with users and their needs. He is looking for progress in applications where data processing has not been fully automatized yet. He investigates how to couple human and computer intelligence in order to achieve improved outcomes. Additionally, as a practice-oriented academic with industry experience, he is primarily interested in stimulating user development through interactive systems. His goal is to establish coherent practices that use human computer interaction (HCI) in everyday life, industrial and professional contexts to create knowledge and innovation. Andrew has served for several years as Chapter President and Officer for Polish Information Processing Society Chapter, ACM Lodz Chapter, and SIGCHI Poland Chapter. Andrew is a co-author of more than 150 publications, including several books, book chapters, and numerous journal and conference papers. He gained scientific experience during research internships at leading European research centers.

## Principal Security Holders

5. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer’s outstanding voting equity securities, calculated on the basis of voting power. To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being “beneficially owned.” You should include an explanation of these circumstances in a footnote to the “Number of and Class of Securities Now Held.” To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

### **Leonard S. Johnson**

| Securities: | 450,000 |
| --- | --- |
| Class: | Common Stock |
| Voting Power: | 70.8% |

## **Business and Anticipated Business Plan**

6. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

5G Cloud Mobile App Maker with Artificial Intelligence & Machine Learning for Small & Midsize Companies, --- that will use our (Proprietary Technology), as well as other Digitization Services for the Front & Back Office. It will help Small & Midsize Companies create their own IOS & Android Mobile Apps with No-Code or Low-Code to engage and service their customer base. The App(s) is planned to have several features such as; In-App Purchases - Sell Professional Services & or Food from within the App. Social Media Integration - Integration with Facebook, Twitter, LinkedIn, & YouTube. Quote Request - Request a Quote for Professional Services. Push Notifications - Announce Specials, News & Events to App Users. Customer Loyalty - Membership, Loyalty Points, & Discount Coupons. Navigation - Give Customers (GPS) turn by turn directions to their business. Back Office Services Powered by M.I.N.D ® Our Machine Intelligence NeuralNetwork Database via Machine Learning and other Data Analytics with Sequential Decisions Based on Algorithmic Probability and the Markov Decision Processes (MDP) in A.I. via the Cloud Churn Prediction Service Using our M.I.N.D ® Machine Intelligence NeuralNetwork Database via Machine Learning and other Data Analytics to identify Small & Midsize Companies Churn rate as a result of COVID-19 and other Variables. Tech Digitization Service Automation Efficiencies, Application Development for Websites, Cloud Migration, Data Storage Technological Development, (IT) Consulting, (IT) Solutions for Small & Midsize Companies. A.I. via the Cloud Future Trends Service Using the M.I.N.D ® Machine Intelligence NeuralNetwork Database and our unique Algorithm “IA > M1 ∴ IC + AI = W”, via Machine Learning and other Data Analytics with Sequential Decisions Based on Algorithmic Probability and the Markov Decision Processes (MDP) in A.I. to predict the Economic & Business Cycle Trends.

AIEDC currently has 4 employees.

## **Risk Factors**

A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.

In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.

The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.

7. Material factors that make an investment in Artificial Intelligence Economic Development Corporation speculative or risky:

1. Public health epidemics or outbreaks could adversely impact our business. In December 2019, a novel strain of coronavirus (COVID-19) emerged in Wuhan, Hubei Province, China. While initially the outbreak was largely concentrated in China and caused significant disruptions to its economy, it has now spread to several other countries and infections have been reported globally. The extent to which the coronavirus impacts our operations will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration of the outbreak, new information which may emerge concerning the severity of the coronavirus and the actions to contain the coronavirus or treat its impact, among others. In particular, the continued spread of the coronavirus globally could adversely impact our operations, and could have an adverse impact on our business and our financial results.
2. We rely heavily on our technology and intellectual property, but we may be unable to adequately or cost-effectively protect or enforce our intellectual property rights, thereby weakening our competitive position and increasing operating costs. To protect our rights in our services and technology, we rely on a combination of copyright and trademark laws, patents, trade secrets, confidentiality agreements with employees and third parties, and protective contractual provisions. We also rely on laws pertaining to trademarks and domain names to protect the value of our corporate brands and reputation. Despite our efforts to protect our proprietary rights, unauthorized parties may copy aspects of our services or technology, obtain and use information, marks, or technology that we regard as proprietary, or otherwise violate or infringe our intellectual property rights. In addition, it is possible that others could independently develop substantially equivalent intellectual property. If we do not effectively protect our intellectual property, or if others independently develop substantially equivalent intellectual property, our competitive position could be weakened. Effectively policing the unauthorized use of our services and technology is time-consuming and costly, and the steps taken by us may not prevent misappropriation of our technology or other proprietary assets. The efforts we have taken to protect our proprietary rights may not be sufficient or effective, and unauthorized parties may copy aspects of our services, use similar marks or domain names, or obtain and use information, marks, or technology that we regard as proprietary. We may have to litigate to enforce our intellectual property rights, to protect our trade secrets, or to determine the validity and scope of others' proprietary rights, which are sometimes not clear or may change. Litigation can be time consuming and expensive, and the outcome can be difficult to predict.
3. Our management may not be able to control costs in an effective or timely manner. The Company's management anticipates it can use reasonable efforts to assess, predict and control costs and expenses. However, implementing our business plan may require more employees, capital equipment, supplies or other expenditure items than management has predicted. Likewise, the cost of compensating employees and consultants or other operating costs may be higher than management's estimates, which could lead to sustained losses. The Company's expenses will significantly increase as we seek to execute our current business model. Although we estimate that we will have enough runway if we

are able to fully raise the proposed amount of capital, we will be ramping up cash burn to promote business development, further develop R&D, and fund other company operations after the raise.

1. 4. The process of developing the Cloud Future Trends Service Using the M.I.N.D.® Machine Intelligence NeuralNetwork Database and our unique Algorithm 'IA > M1 : IC + AI = W', via Machine Learning and other Data Analytics with Sequential Decisions Based on Algorithmic Probability and the Markov Decision Processes (MDP) in A.I. to predict the Economic & Business Cycle Trends, will require significant research and development which is costly and may not result in immediate success and/or revenue. There can be no guarantee that Artificial Intelligence services will eventually be fully developed according to the business plan.
2. 5. If AIEDC is unable to raise additional capital on acceptable terms, we may be unable to execute our business plan. In fact, AIEDC will require substantial future capital to continue research and development as well as marketing to promote business development, further develop R&D, and fund other company operations.
3. 6. The Company may not pay dividends for the foreseeable future. Unless otherwise specified in the offering documents and subject to state law, Netcapital investors are not entitled to receive any dividends on their interest in the Company. Accordingly, any potential investor who anticipates the need for current dividends or income from an investment should not purchase any of the securities offered on the Site by AIEDC.
4. 7. Any valuation at this stage is difficult to assess. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equities being sold.
5. 8. Any forecasts we make about our operations may prove to be inaccurate. There can be no assurance that we will be successful in meeting these challenges and addressing such risks and the failure to do so could have a materially adverse effect on our business, results of operations, and financial condition. Our prospects must be considered in light of the risks, expenses, and difficulties frequently encountered by companies in the early stage of development. As a result of these risks, challenges, and uncertainties, the value of your investment could be significantly reduced or completely lost.
6. 9. We will be operating in a competitive and rapidly developing technology space, even though we have not been able to identify any direct competitors in our target market space at this time. Potential competitors may emerge as the market develops, we may also face potential competition from other large companies with abundant resources which may enable them to take over the market at an overwhelmingly pace.
7. 10. Start-up investing is risky. Investing in early-stage companies is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the company.
8. 11. Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the company does not have any plans to list these shares on an exchange or other secondary market. At some point the company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a 'liquidation event' occurs. A 'liquidation event' is when the company either lists their shares on an exchange, is acquired, or goes bankrupt.
9. 12. We are highly dependent on the Services of our founder. Our future business and results of operations depend in significant part upon the continued contributions of our CEO and founder. If we lose those services or if he fails to perform in his current position, or if we are not able to attract and retain skilled employees in addition to our CEO and the current team, this could adversely affect the development of our business plan and harm our business. In addition, the loss of any other member of the board of directors or executive officers could harm the Company's business, financial condition, cash flow and results of operations.

13. *The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.*

You should not rely on the fact that our Form C, and if applicable Form D is accessible through the U.S. Securities and Exchange Commission's EDGAR filing system as an approval, endorsement or guarantee of compliance as it relates to this Offering.

14. *Neither the Offering nor the Securities have been registered under federal or state securities laws, leading to an absence of certain regulation applicable to the Company.*

The securities being offered have not been registered under the Securities Act of 1933 (the 'Securities Act'), in reliance on exemptive provisions of the Securities Act. Similar reliance has been placed on apparently available exemptions from securities registration or qualification requirements under applicable state securities laws. No assurance can be given that any offering currently qualifies or will continue to qualify under one or more of such exemptive provisions due to, among other things, the adequacy of disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change of any securities law or regulation that has retroactive effect. If, and to the extent that, claims or suits for rescission are brought and successfully concluded for failure to register any offering or other offerings or for acts or omissions constituting offenses under the Securities Act, the Securities Exchange Act of 1934, or applicable state securities laws, the Company could be materially adversely affected, jeopardizing the Company's ability to operate successfully. Furthermore, the human and capital resources of the Company could be adversely affected by the need to defend actions under these laws, even if the Company is ultimately successful in its defense.

15. *The Company has the right to extend the Offering Deadline, conduct multiple closings, or end the Offering early.*

The Company may extend the Offering Deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the Minimum Amount even after the Offering Deadline stated herein is reached. While you have the right to cancel your investment up to 48 hours before an Offering Deadline, if you choose to not cancel your investment, your investment will not be accruing interest during this time and will simply be held until such time as the new Offering Deadline is reached without the Company receiving the Minimum Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Minimum Amount, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you. If the Company reaches the target offering amount prior to the Offering Deadline, they may conduct the first of multiple closings of the Offering prior to the Offering Deadline, provided that the Company gives notice to the investors of the closing at least five business days prior to the closing (absent a material change that would require an extension of the Offering and reconfirmation of the investment commitment). Thereafter, the Company may conduct additional closings until the Offering Deadline. The Company may also end the Offering early; if the Offering reaches its target offering amount after 21-calendar days but before the deadline, the Company can end the Offering with 5 business days' notice. This means your failure to participate in the Offering in a timely manner, may prevent you from being able to participate - it also means the Company may limit the amount of capital it can raise during the Offering by ending it early.

16. *The Company's management may have broad discretion in how the Company uses the net proceeds of the Offering.*

Despite that the Company has agreed to a specific use of the proceeds from the Offering, the Company's management will have considerable discretion over the allocation of proceeds from the

Offering. You may not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.

17. *The Securities issued by the Company will not be freely tradable until one year from the initial purchase date. Although the Securities may be tradable under federal securities law, state securities regulations may apply, and each Investor should consult with his or her attorney.*

You should be aware of the long-term nature of this investment. There is not now and likely will not be a public market for the Securities. Because the Securities offered in this Offering have not been registered under the Securities Act or under the securities laws of any state or non-United States jurisdiction, the Securities have transfer restrictions and cannot be resold in the United States except pursuant to Rule 501 of Regulation CF. It is not currently contemplated that registration under the Securities Act or other securities laws will be affected. Limitations on the transfer of the shares of Securities may also adversely affect the price that you might be able to obtain for the shares of Securities in a private sale. Investors should be aware of the long-term nature of their investment in the Company. Investors in this Offering will be required to represent that they are purchasing the Securities for their own account, for investment purposes and not with a view to resale or distribution thereof.

18. *Investors will not be entitled to any inspection or information rights other than those required by Regulation CF.*

Investors will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information - there are numerous methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Investors. This lack of information could put Investors at a disadvantage in general and with respect to other security holders.

19. *The shares of Securities acquired upon the Offering may be significantly diluted as a consequence of subsequent financings.*

Company equity securities will be subject to dilution. Company intends to issue additional equity to future employees and third-party financing sources in amounts that are uncertain at this time, and as a consequence, holders of Securities will be subject to dilution in an unpredictable amount. Such dilution may reduce the purchaser’s economic interests in the Company.

20. The amount of additional financing needed by Company will depend upon several contingencies not foreseen at the time of this Offering. Each such round of financing (whether from the Company or other investors) is typically intended to provide the Company with enough capital to reach the next major corporate milestone. If the funds are not sufficient, Company may have to raise additional capital at a price unfavorable to the existing investors. The availability of capital is at least partially a function of capital market conditions that are beyond the control of the Company. There can be no assurance that the Company will be able to predict accurately the future capital requirements necessary for success or that additional funds will be available from any source. Failure to obtain such financing on favorable terms could dilute or otherwise severely impair the value of the investor’s Company securities.

21. *There is no present public market for these Securities and we have arbitrarily set the price.*

The offering price was not established in a competitive market. We have arbitrarily set the price of the Securities with reference to the general status of the securities market and other relevant factors. The Offering price for the Securities should not be considered an indication of the actual value of the

Securities and is not based on our net worth or prior earnings. We cannot assure you that the Securities could be resold by you at the Offering price or at any other price.

22. In addition to the risks listed above, businesses are often subject to risks not foreseen or fully appreciated by the management. It is not possible to foresee all risks that may affect us. Moreover, the Company cannot predict whether the Company will successfully effectuate the Company's current business plan. Each prospective Investor is encouraged to carefully analyze the risks and merits of an investment in the Securities and should take into consideration when making such analysis, among other, the Risk Factors discussed above.

23. THE SECURITIES OFFERED INVOLVE A HIGH DEGREE OF RISK AND MAY RESULT IN THE LOSS OF YOUR ENTIRE INVESTMENT. ANY PERSON CONSIDERING THE PURCHASE OF THESE SECURITIES SHOULD BE AWARE OF THESE AND OTHER FACTORS SET FORTH IN THIS OFFERING STATEMENT AND SHOULD CONSULT WITH HIS OR HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN THE SECURITIES. THE SECURITIES SHOULD ONLY BE PURCHASED BY PERSONS WHO CAN AFFORD TO LOSE ALL OF THEIR INVESTMENT.

## The Offering

Artificial Intelligence Economic Development Corporation ("Company") is offering securities under Regulation CF, through Netcapital Funding Portal Inc. ("Portal"). Portal is a FINRA/SEC registered funding portal and will receive cash compensation equal to 4.9% of the value of the securities sold through Regulation CF. Investments made under Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.

The Company plans to raise between $10,000 and $249,600 through an offering under Regulation CF. Specifically, if we reach the target offering amount of $10,000, we may conduct the first of multiple or rolling closings of the offering early if we provide notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

In the event The Company fails to reach the offering target of $10,000, any investments made under the offering will be cancelled and the investment funds will be returned to the investor.

### 8. What is the purpose of this offering?

We believe that allocation of our resources in this manner will allow us efficiently deploy the capital raised: Cloud Computing and Data Hosting - $60,000; SG&A - $15,250; Management Compensation $44,000; Outsourced Development Compensation $118,120;

### 9. How does the issuer intend to use the proceeds of this offering?

| Uses | If Target Offering Amount Sold | If Maximum Amount Sold |
| --- | --- | --- |
| Intermediary Fees | $490 | $12,230 |
| Cloud Computing and Data Hosting | $0 | $60,000 |
| SG&A | $2,000 | $15,250 |
| Management Compensation | $6,000 | $44,000 |
| Outsourced Development Compensation | $1,510 | $118,120 |
| Total Use of Proceeds | $10,000 | $249,600 |

#### 10. How will the issuer complete the transaction and deliver securities to the investors?

In entering into an agreement on the Netcapital Funding Portal to purchase securities, both investors and Artificial Intelligence Economic Development Corporation must agree that a transfer agent, which keeps records of our outstanding Common Stock (the 'Securities'), will issue digital Securities in the investor's name (a paper certificate will not be printed). Similar to other online investment accounts, the transfer agent will give investors access to a web site to see the number of Securities that they own in our company. These Securities will be issued to investors after the deadline date for investing has passed, as long as the targeted offering amount has been reached. The transfer agent will record the issuance when we have received the purchase proceeds from the escrow agent who is holding your investment commitment.

#### 11. How can an investor cancel an investment commitment?

You may cancel an investment commitment for any reason until 48 hours prior to the deadline identified in the offering by logging in to your account with Netcapital, browsing to the Investments screen, and clicking to cancel your investment commitment. Netcapital will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment. If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

#### 12. Can the Company perform multiple closings or rolling closings for the offering?

If we reach the target offering amount prior to the offering deadline, we may conduct the first of multiple closings of the offering early, if we provide notice about the new offering deadline at least five business days prior (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Thereafter, we may conduct additional closings until the offering deadline. We will issue Securities in connection with each closing. Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

## Ownership and Capital Structure

### The Offering

**13. Describe the terms of the securities being offered.**

We are issuing Securities at an offering price of $10.40 per share.

**14. Do the securities offered have voting rights?**

The Securities are being issued with voting rights. However, so that the crowdfunding community has the opportunity to act together and cast a vote as a group when a voting matter arises, a record owner will cast your vote for you. Please refer to the record owner agreement that you sign before your purchase is complete.

**15. Are there any limitations on any voting or other rights identified above?**

You are giving your voting rights to the record owner, who will vote the Securities on behalf of all investors who purchased Securities on the Netcapital crowdfunding portal.

**16. How may the terms of the securities being offered be modified?**

Any provision of the terms of the Securities being offered may be amended, waived or modified by written consent of the majority owner(s) of the Company. We may choose to modify the terms of the Securities before the offering is completed. However, if the terms are modified, and we deem it to be a material change, we need to contact you and you will be given the opportunity to reconfirm your investment. Your reconfirmation must be completed within five business days of receipt of the notice of a material change, and if you do not reconfirm, your investment will be canceled and your money will be returned to you.

**Restrictions on Transfer of the Securities Offered**

The securities being offered may not be transferred by any purchaser of such securities during the one-year period beginning when the securities were issued, unless such securities are transferred:

- to the issuer;
- to an accredited investor;
- as part of an offering registered with the U.S. Securities and Exchange Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

The term “accredited investor” means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term “member of the family of the purchaser or the equivalent” includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.

**Description of Issuer’s Securities**

**17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.**

**Securities**

| Class of Security | Amount Authorized | Amount Outstanding | Voting Rights | Other Rights |
| --- | --- | --- | --- | --- |
| Common Stock | 660,000 | 635,800 | Yes |  |
| Preferred Stock | 340,000 | 0 | No |  |

## Options, Warrants and Other Rights

None.

18. **How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of securities?**

The rights of currently outstanding securities are common shares, which are the same class of shares we are selling in this offering. The company has a note payable with $7,267 outstanding as of March 31, 2022. The loan is collateralized by 170 Preferred Shares of AIEDC stock. If these shares were to be issued, your stock would be diluted accordingly.

19. **Are there any differences not reflected above between the securities being offered and each other class of security of the issuer?**

The main difference between preferred and common stock is that preferred stock gives no voting rights to shareholders while common stock does. Preferred shareholders have priority over a company's income, meaning they are paid dividends before common shareholders. Common stockholders are last in line when it comes to company assets, which means they will be paid out after creditors, bondholders, and preferred shareholders.

20. **How could the exercise of rights held by the principal owners identified in Question 5 above affect the purchasers of Securities being offered?**

The offering represents a proposed sale of less than 20% of the outstanding voting securities, if fully raised. AIEDC is an early-stage closely held company. Even though the management of AIEDC shall act diligently under the guidelines of the corporate governance structure, the exercise of rights by the individuals who each hold greater than 20% of the outstanding voting securities may adversely affect the purchaser of the securities being offered in certain major corporate actions which may include but not limited to financing, mergers and acquisitions, bankruptcy or liquidation, name changing, new trademark adoption, etc.

21. **How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.**

At issuer discretion.

22. **What are the risks to purchasers of the securities relating to minority ownership in the issuer?**

Prior to the offering, the Company's current owners of 20% or more, beneficially own up to 70.78% of the Company. Subject to any fiduciary duties owed to our owners or investors under Delaware law, these owners may be able to exercise significant influence over matters requiring owner approval, including the election of directors or managers and approval of significant Company transactions, and will have significant control over the Company's management and policies. Some of these persons may have interests that are different from your interests. For example, these owners may support proposals and actions with which you may disagree. The concentration of ownership could delay or prevent a change in control of the Company or otherwise discourage a potential acquirer from attempting to obtain control of the Company, which in turn could reduce the price potential investors are willing to pay for the Company. In addition, these owners could use their voting influence to maintain the Company's existing management, delay or prevent changes in control of the Company, or support or reject other management and board proposals that are subject to current owners approval.

**23. What are the risks to purchasers associated with corporate actions including:**

- additional issuances of securities,
- issuer repurchases of securities,
- a sale of the issuer or of assets of the issuer or
- transactions with related parties?

The issuance of additional shares of our common stock will dilute your. As a result, if we achieve profitable operations in the future, our net income per share will be reduced because of dilution, and the market price of our common stock, if there is a market price, could decline as a result of the additional issuances of securities. If we repurchase securities, so that the above risk is mitigated, and there are fewer shares of common stock outstanding, we may not have enough cash available for marketing expenses, growth, or operating expenses to reach our goals. If we do not have enough cash to operate and grow, we anticipate the market price of our stock would decline. A sale of our company or of the assets of our company may result in an entire loss of your investment. We cannot predict the market value of our company or our assets, and the proceeds of a sale may not be cash, but instead, unmarketable securities, or an assumption of liabilities. In addition to the payment of wages and expense reimbursements, we may need to engage in transactions with officers, directors, or affiliates. By acquiring an interest in the Company, you will be deemed to have acknowledged the existence of any such actual or potential related party transactions and waived any claim with respect to any liability arising from a perceived or actual conflict of interest. In some instances, we may deem it necessary to seek a loan from related parties. Such financing may not be available when needed. Even if such financing is available, it may be on terms that are materially averse to your interests with respect to dilution of book value, dividend preferences, liquidation preferences, or other terms. No assurance can be given that such funds will be available or, if available, will be on commercially reasonable terms satisfactory to us. If we are unable to obtain financing on reasonable terms, we could be forced to discontinue our operations. We anticipate that any transactions with related parties will be vetted and approved by executives(s) unaffiliated with the related parties.

**24. Describe the material terms of any indebtedness of the issuer:**

| Creditor(s): | Note Payable |
| --- | --- |
| Amount Outstanding: | $7,267 |
| Interest Rate: | 12.0% |
| Maturity Date: | June 15, 2022 |
| Other Material Terms: | In 2021, the Company entered into a short-term loan of $27,292 which matures on June 15, 2022 with an implicit interest rate of 12%. The loan is collateralized by 170 Preferred Shares of AIEDC stock. The total interest expense on this loan recognized during the year was $1,680 |

**25. What other exempt offerings has Artificial Intelligence Economic Development Corporation conducted within the past three years?**

| Date of Offering: | 01/2020 |
| --- | --- |
| Exemption: | Section 4(a)(2) |
| Securities Offered: | Common Stock |
| Amount Sold: | $5,148 |
| Use of Proceeds: | The proceeds were used for operating costs, such as rent. |

26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:
1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer; or
4. any immediate family member of any of the foregoing persons.

No.

## Financial Condition of the Issuer

27. Does the issuer have an operating history?

Yes.

28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.

Artificial Intelligence Economic Development Corporation (the "Company") was incorporated in the State of Delaware on May 1, 2017, and maintains its headquarters in Huntington Beach, California. The Company is a 5G - Cloud Mobile App Maker and Service Provider with Machine Learning to help small and midsize businesses create their own (IOS & Android) mobile apps with no-code or low-code so they can engage and service their customer base, as well as provide front & back-office digitization services. The Company is still in its pre-revenue stage. During 2021, the Company had a net operating loss of $47,784 and an average monthly burn rate of approximately $4,000. Operating expenses consisted primarily of rent expense of $27,516, utilities for $7,693, business development for $6,055, and research and development for $5,120. Additionally, the Company had interest expense of $1,680, resulting in an overall net loss of $49,464. On June 16, 2021, the Company entered into a short-term loan of $27,292. The loan is collateralized by 170 Preferred Shares of AIEDC stock. The loan carries an implicit interest rate of 12%. Interest expense recognized on the loan during the year was $1,680. As of March 31, 2022, $7,267 was the outstanding balance of the note payable. During 2021, the Company issued 7,884 shares of Common Stock for net proceeds of $76,176 through a Regulation CF Offering via Netcapital. The Offering is still ongoing. Additionally, the Company repaid back its owner capital contributions of $43,479, resulting in net proceeds from financing of $32,697 for the year. Expenses for the year ended on December 31, 2020, amounted to $25,000, which resulted in a $25,000 loss. Expenses consisted of rent expense of $24,000, legal expense of $600, and amortization expense for $400. During 2020, $5,148 was put into the business via owner capital contributions to help fund the operations of the business. For the year ended on December 31, 2019, expenses amounted to $29,600, which resulted in a $29,600 loss. Expenses consisted of rent expense of $24,000 and legal expense of $5,600. Upon closing this round, the Company plans to start executing the business plan while adhering to prudent accounting principles with regard to the documenting, as well as the reporting of the financial and operational activities of the Company. With this raise, the Company plans to spend money on the development of cloud computing and data hosting, as well as to outsourced development costs and general and administrative costs. The Company believe these activities will result in the traction we will need to court venture capital funding.

# Financial Information

29. Include the financial information specified by regulation, covering the two most recently completed fiscal years or the period(s) since inception if shorter.

See attachments:

CPA Review Report: reviewletter.pdf

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated in the same form as described in Question 6 of this Question and Answer format, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016:

1. Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:
1. in connection with the purchase or sale of any security?
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

2. Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:
1. in connection with the purchase or sale of any security?;
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

3. Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:
1. at the time of the filing of this offering statement bars the person from:
1. association with an entity regulated by such commission, authority, agency or officer?
2. engaging in the business of securities, insurance or banking?
3. engaging in savings association or credit union activities?

2. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement?

4. Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:
1. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal?
2. places limitations on the activities, functions or operations of such person?
3. bars such person from being associated with any entity or from participating in the offering of any penny stock?

If Yes to any of the above, explain:

5. Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

1. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder?
2. Section 5 of the Securities Act?

6. Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?
7. Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?
8. Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

Artificial Intelligence Economic Development Corporation answers 'NO' to all of the above questions.

## Other Material Information

31. In addition to the information expressly required to be included in this Form, include: any other material information presented to investors; and such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

Trade / Service Mark information: The Company has (3) Trade / Service Marks relating to Machine Intelligence /A.I. (owned by the founder) in the area of --- Financial Consultancy; Financial Information; Financial Management; Financial Research; and Financial Valuations. (USPTO) Serial Numbers: (87388589), (87390367), (87388841). Video Transcription: Computers can see and hear as well as humans can. There's intelligence substantially greater than the human brain. I want to use my artificial intelligence to help humans live a better life. The primitive forms of artificial intelligence we already have, have proved very useful. Artificial intelligence. As it is, the machines are taking over. The future of machine intelligence. Has been moving extremely quickly. AI. Artificial intelligence. In the beginning, there was man. What if you had the power of mind, an AI mind? A Machine Intelligence Neural Network Database. At the AIEDC we have answered the call for AI to be beneficial to humanity. To help municipalities, institutions, as well as organizations become more efficient, be more productive, and improve the quality of their decisions overall. Our artificial intelligence is a predictive and dep learning model. M.I.N.D. is a Machine Intelligence NeuralNetwork Database, and with the M.I.N.D. powered platform key decision-makers can utilize big data to make the best optimal strategic decisions going forward. The power of M.I.N.D will shorten your time to improving your organization and achieve your goals. What if you had the power of M.I.N.D?

The following documents are being submitted as part of this offering:

Governance:

| Certificate of Incorporation: | certificateofincorporation.pdf |
| --- | --- |
| Corporate Bylaws: | corporatebylaws.pdf |
| Opportunity: |  |
| Offering Page JPG: | offeringpage.jpg |
| Pitch Deck: | pitchdeck.pdf |
| Financials: |  |
| Additional Information: | otherfinancial.pdf |

## Ongoing Reporting

32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its web site, no later than 120 days after the end of each fiscal year covered by the report:

Once posted, the annual report may be found on the issuer's web site at: www.Aiedc.com

The issuer must continue to comply with the ongoing reporting requirements until:

- the issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
- the issuer has filed at least one annual report pursuant to Regulation Crowdfunding and has fewer than 300 holders of record and has total assets that do not exceed $10,000,000;
- the issuer has filed at least three annual reports pursuant to Regulation Crowdfunding;
- the issuer or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
- the issuer liquidates or dissolves its business in accordance with state law.

**Attachment 2:** `reviewletter.pdf`

# Artificial Intelligence Economic Development Corporation

Financial Statements and Report

December 31, 2021 and 2020

## Table of Contents

| Independent Accountant's Review Report | 2 |
| --- | --- |
| Balance Sheet | 4 |
| Statement of Income | 5 |
| Statement of Cash Flows | 7 |
| Notes to the Financial Statements | 8 |

![img-0.jpeg](img-0.jpeg)

# TESSERACT ADVISORY GROUP

## Independent Accountant's Review Report

Artificial Intelligence Economic Development Corporation Huntington Beach, CA

We have reviewed the accompanying financial statements of Artificial Intelligence Economic Development Corporation (the company), which comprise the balance sheets as of December 31, 2021 and 2020, 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. A review includes primarily applying analytical procedures to management's financial data and making inquiries of the company's 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

2

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 Artificial Intelligence Economic Development Corporation (the company) 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.

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

The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in Note 5 to the financial statements, the company is pre-revenue and has relied on capital from its owners and short term debt to finance operations and has stated that substantial doubt exists about the company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 5. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our conclusion is not modified with respect to this matter.

Philip Debaugh, CPA

OWINGS MILLS, MD March 15, 2022

3

# **Artificial Intelligence Economic Development Corporation**

# Balance Sheet

As of December 31, 2021 and 2020

|  | 2021 $ | 2020 $ |
| --- | --- | --- |
| Assets |  |  |
| Current Assets |  |  |
| Cash and cash equivalents | 8,702 | 11,802 |
| Total Current Assets | 8,702 | 11,802 |
| Noncurrent Assets |  |  |
| Trademark, net of accumulated amortization | 2,200 | 2,600 |
| Total Noncurrent Assets | 2,200 | 2,600 |
| Total Assets | 10,902 | 14,402 |
| Liabilities & Stockholders' Equity |  |  |
| Liabilities |  |  |
| Current Liabilities |  |  |
| Current Liabilities |  |  |
| Note Payable | 13,267 | - |
| Accrued expenses | 600 | 600 |
| Total Current Liabilities | 13,867 | 600 |
| Total Liabilities | 13,867 | 600 |
| Stockholders' Equity |  |  |
| Equity |  |  |
| Preferred stock, par value $0.06; 340,000 shares authorized, zero issued and outstanding | - | - |
| Common stock, par value $0.06; 660,000 shares authorized, 643,684 and 635,800 issued and outstanding as of December 31, 2021 and 2020, respectively | 38,621 | 38,148 |
| Additional paid-in capital | 86,078 | 53,854 |
| Accumulated Deficit | (127,664) | (78,200) |
| Total Stockholders' Equity | (2,965) | 13,802 |
| Total Liabilities & Stockholders' Equity | 10,902 | 14,402 |

4

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# **Artificial Intelligence Economic Development Corporation**

# Statement of Income

For the years ended December 31, 2021 and 2020

|  | 2021 $ | 2020 $ |
| --- | --- | --- |
| Operating Expenses |  |  |
| Rent | 27,516 | 24,000 |
| Utilities | 7,693 | - |
| Business Development | 6,055 | - |
| Research and development | 5,120 | - |
| Legal and other professional fees and services | 1,000 | 600 |
| Goodwill and intangible asset amortization | 400 | 400 |
| Total Operating Expenses | 47,784 | 25,000 |
| Operating Income (Loss) | (47,784) | (25,000) |
| Other Income (Expense) |  |  |
| Interest expense | (1,680) | - |
| Net Income (Loss) | (49,464) | (25,000) |

5

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# **Artificial Intelligence Economic Development Corporation**

# Statement of Changes in Stockholders' Equity

For the years ended December 31, 2021 and 2020

|  | Common Stock Shares | Common Stock Amount $ | Additional Paid- In Capital $ | Accumulated Deficit $ | Total Stockholders' Equity $ |
| --- | --- | --- | --- | --- | --- |
| Balance at January 1, 2020 | 635,800 | 38,148 | 48,706 | (53,200) | 33,654 |
| Net income (loss) | 0 | - | - | (25,000) | (25,000) |
| Additional Paid-In Capital, net | 0 | - | 5,148 | - | 5,148 |
| Balance at December 31, 2020 | 635,800 | 38,148 | 53,854 | (78,200) | 13,802 |
| Net income (loss) | 0 | - | - | (49,464) | (49,464) |
| Additional Paid-In Capital, net | 0 | - | 32,224 | - | 32,224 |
| Issuance of common stock | 7,884 | 473 | - | - | 473 |
| Balance at December 31, 2021 | 643,684 | 38,621 | 86,078 | (127,664) | (2,965) |

6

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# **Artificial Intelligence Economic Development Corporation**

# Statement of Cash Flows

For the years ended December 31, 2021 and 2020

|  | 2021 $ | 2020 $ |
| --- | --- | --- |
| Cash Flows |  |  |
| Cash Flows From Operating Activities |  |  |
| Net income (loss) | (49,464) | (25,000) |
| Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by (Used in) Operating Activities |  |  |
| Depreciation and amortization | 400 | 400 |
| Net Cash Provided by (Used in) Operating Activities | (49,064) | (24,600) |
| Cash Flows from Financing Activities |  |  |
| Net proceeds from (repayments of) short-term borrowings | 13,267 | - |
| Owner capital contributions/ (return of capital) | (43,479) | 5,148 |
| Net Proceeds from issuance of common stock | 76,176 | - |
| Net Cash Provided by (Used in) Financing Activities | 45,964 | 5,148 |
| Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash | (3,100) | (19,452) |
| Cash, cash equivalents, and restricted cash at beginning of year | 11,802 | 31,254 |
| Cash, Cash Equivalents, and Restricted Cash at End of Year | 8,702 | 11,802 |
| Reconciliation of Cash, Cash Equivalents, and Restricted Cash |  |  |
| Cash and cash equivalents | 8,702 | 11,802 |
| Supplemental Cash Flow Information |  |  |
| Cash Paid During the Year for |  |  |
| Interest | 1,680 | - |

7

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# Notes to the Financial Statements

# Artificial Intelligence Economic Development Corporation

## Notes to the Financial Statements

For the years ended December 31, 2021 and 2020

### 1. Summary of significant accounting policies

#### a. Nature of operations

Artificial Intelligence Economic Development Corporation (the company) was incorporated in the State of Delaware on May 1, 2017 and maintains its headquarters in Huntington Beach, California.

The Company is a 5G - Cloud Mobile App Maker and Service Provider with Machine Learning to help small and midsize businesses create their own (IOS & Android) mobile apps with no-code or low-code so they can engage and service their customer base, as well as provide front & back office digitization services.

#### b. Basis of accounting

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ('GAAP') as detailed in the Financial Accounting Standards Board's Accounting Standards Codification. The financial statements have been prepared on the accrual basis of accounting.

#### c. Use of estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from those estimates.

#### d. Cash and cash equivalents

Cash and cash equivalents includes short-term investments and highly liquid investments in money market instruments which are carried at the lower of cost and market value with a maturity date of three months or less from the acquisition date. These are valued at cost which approximates market value. Cash consists of funds held in the Company's checking account.

#### e. Intangible assets

The Company's intangible assets consist of trademarks that have been acquired since inception. The gross capitalized amount of trademarks is $4,000, all of which are amortized straight-line over a 10 year useful

8

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# Artificial Intelligence Economic Development Corporation

## Notes to the Financial Statements

For the years ended December 31, 2021 and 2020

life.

The company reviews its long-lived assets, including finite-lived intangible assets (trademarks) for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If such an event or change in circumstances is present, the company will estimate the undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. If the sum of the undiscounted future cash flows is less than the carrying amount of the related asset, the company will record the asset at fair value and recognize an impairment loss in operating income.

At December 31, 2021, management was not aware of any other events or circumstances indicating the company's long-lived assets would not be recoverable.

### f. Recent accounting pronouncements

In February 2019, FASB issued ASU No. 2019-02, Leases, that requires organizations that lease assets, referred to as 'lessees', to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2019-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard for nonpublic entities will be effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, and early application is permitted. The Company is currently evaluating the effect that the updated standard will have on the financial statements and related disclosures.

### g. Fair value of financial instruments

Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the factors that market participants would use in valuing the asset or liability. There are three levels of inputs that may be used to measure fair value:

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

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

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

9

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# Artificial Intelligence Economic Development Corporation

## Notes to the Financial Statements

For the years ended December 31, 2021 and 2020

The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Fair-value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of Inception. Fair values were assumed to approximate carrying values because of their short term in nature or they are payable on demand.

### h. Income taxes

The Company applies FASB ASC 740 Income Taxes ('ASC 740'). Deferred income taxes are recognized for the tax consequences in future years of differences between the tax bases of assets and liabilities and their financial statement reported amounts at each period end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The provision for income taxes represents the tax expense for the period, if any and the change during the period in deferred tax assets and liabilities. ASC 740 also provides criteria for the recognition, measurement, presentation and disclosure of uncertain tax positions. A tax benefit from an uncertain position is recognized only if it is 'more likely than not' that the position is sustainable upon examination by the relevant taxing authority based on its technical merit. The Company is subject to tax filing requirements as a corporation in the federal jurisdiction of the United States.

The Company uses a calendar year end for income tax reporting purposes and files a Corporate tax return annually. The Company's provision for income taxes is based on the asset and liability method of accounting whereby deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax assets and liabilities are related to differences in calculating depreciation on fixed assets, timing of deductions for certain accrued expenses, and taxes related to net operating losses.

The Company files tax returns in the United States federal jurisdiction and is subject to franchise and income tax filing requirements in the State's of California and Delaware. The Company's federal income tax returns for the tax years 2020 and forward remain subject to examination by the Internal Revenue Service. The Company's California income tax returns for the years 2020 and forward remain subject to examination by the Franchise Tax Board.

10

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# Artificial Intelligence Economic Development Corporation

## Notes to the Financial Statements

For the years ended December 31, 2021 and 2020

### i. Comprehensive income

The company does not have any comprehensive income items other then net income.

### 2. Stockholders' equity

The Company's Certificate of Incorporation authorizes the issuance of 660,000 shares of Common Stock with a par value of $0.06 per share and 340,000 shares of Preferred Stock, Series A with a par value of $0.06 per share has an unlimited number of authorized preference shares and common shares. The preference shares may be issued from time to time in one or more series, each series comprising the number of shares, designations, rights, privileges, restrictions and conditions determined by the Board of Directors.

Preferred shares are non-voting and rank in priority to the common shares with respect to dividends and distributions upon dissolution. No preference shares have been issued as of December 31, 2021 and 2020. There were 643,684 and 635,800 shares of Common Stock issued and outstanding at December 31, 2021 and 2020.

### 3. Notes Payable

In 2021, the Company entered into a short-term loan of $27,292 which matures on June 15, 2022 with an implicit interest rate of 12%. The loan is collateralized by 170 Preferred Shares of AIEDC stock.

The total interest expense on this loan recognized during the year was $1,680.

### 4. Crowdfunding Offering

During 2021, the Company entered into an offering to raise between $10,000 and $249,600 through the sale of its common stock under Regulation CF. During the year the Company issued 7,884 shares at a price of $10.40 per share for a total proceeds of $81,994. The net proceeds after payment of commission and fees to the SEC registered funding portal was $76,176.

### 5. Commitments and contingencies

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

### 6. Going concern

11

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

# Artificial Intelligence Economic Development Corporation

## Notes to the Financial Statements

For the years ended December 31, 2021 and 2020

These financial statements have been prepared on a going concern basis which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. As shown in the accompanying financial statements, during the year ended December 31, 2021 the company incurred losses from operations of $49,464 (2020 - $25,000). The company has relied on capital from its owners and short term loans to fund operations. Those factors and conditions create a substantial doubt about the company's ability to continue as a going concern for the year following the date the financial statements are available to be issued.

Management of the company has evaluated these conditions and has proposed a plan to raise capital via a crowdfunding campaign. The financial statements do not include any adjustments that might be necessary if the company is unable to continue as a going concern.

### 7. Subsequent events

#### a. Crowdfunding offering

The Company has continued its offering of common stock shares through a crowdfunding campaign (the 'Crowdfunding Offering'). As of March 15, 2022, the Company has raised over $119,000 in this offering and the offering has a maximum investment of $249,600. The securities offering is listed with an approved and qualified funding portal and they will receive compensation for the listing commensurate with its standard terms. Refer to Note 4 for more details on this offering.

#### b. Management's evaluation

Management evaluated all activity of the company through March 15, 2022 (the issuance date of the financial statements) and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the related notes to the financial statements.

12

See independent accountant's review report. The accompanying notes are an integral part of these financial statements.

**Attachment 3:** `certificateofincorporation.pdf`

# **STATE of DELAWARE**
**CERTIFICATE of INCORPORATION**
**A STOCK CORPORATION**

**FIRST - Name**

The name of the Corporation is:
Artificial Intelligence Economic Development Corporation

**SECOND - Registered Agent**

Its registered office in the State of Delaware is to be located at 8 The Green,
Ste A, in the City of Dover County of Kent Zip Code 19901. The registered
agent in charge thereof is
A Registered Agent, Inc.

**THIRD - Purpose**

The purpose of the corporation is to engage in any lawful act or activity for
which corporations may be organized under the General Corporation Law of
Delaware.

**FOURTH - Stock**

The amount of the total stock of this corporation is authorized to issue is
1,000,000 shares. This will include 660,000 shares of common stock
with a par value of $0.06 and 340,000 shares of preferred stock, Series A
with a par value of $0.06 per share.

**FIFTH - Incorporator**

The name and mailing address of the incorporator are as follows:

A Registered Agent, Inc. - 8 The Green, Ste A, Dover, DE 19901

**I, The Undersigned**, for the purpose of forming a corporation under the
laws of the State of Delaware, do make, file and record this Certificate, and
do certify that the facts herein stated are true, and I have accordingly
hereunto set my hand this 1st day of May, A.D. 2017.

BY:

A Registered Agent, Inc., Incorporator
Patrick Brickhouse, Assistant Secretary

State of Delaware
Secretary of State
Division of Corporations
Delivered 04:31 PM 05/01/2017
FILED 04:31 PM 05/01/2017
SR 20172954694 - File Number 6391705

**Attachment 4:** `corporatebylaws.pdf`

## INCORPORATOR INITIAL RESOLUTIONS

I, Patrick Brickhouse, of A Registered Agent, Inc, being the Incorporator of Artificial Intelligence Economic Development Corporation, hereby resolve to relinquish signing authority to the newly appointed officers and directors and adopt the following resolutions:

1. **Resolved**, that the following named officer(s) and director(s) of the are hereby appointed and directed to serve until the first annual meeting of stockholders, and/or until their successors are elected and appointed, or they are re-elected at their annual meeting.

President: Leonard S. Johnson

Treasurer: Leonard S. Johnson

Secretary: Leonard S. Johnson

Director: Leonard S. Johnson

2. **Resolved**, that Artificial Intelligence Economic Development Corporation was incorporated in Delaware on 05/01/17 with assigned filing number 6391705.
3. **Resolved**, that the copy of the Articles of Incorporation of the above named corporation is complete, and be inserted into the official corporate record book.
4. **Resolved**, that the bylaws be adopted as the bylaws for the corporation, and be inserted into the minute book of the corporation record book.
5. **Resolved**, that if the stockholders fail to hold their initial and/or annual meetings, that the above named directors will remain in their appointment until the stockholders hold their meeting, and that the corporation will stay active pursuant to state statute.

\_\_\_\_\_  
Patrick Brickhouse on behalf of  
A Registered Agent, Inc, Incorporator

05/01/2017

# BYLAWS

of

# Artificial Intelligence Economic Development Corporation

# ARTICLE I

# Offices

1.1 **Registered Office and Registered Agent:** The Corporation's registered office is located in the State of _______________. The registered office is as stated in the Articles of Incorporation or as agreed by the Board of Directors.
1.2 **Other Offices:** The Corporation may have other offices as selected by the Board of Directors.

# ARTICLE 2

# Shareholders' Meetings

2.1 **Meeting Place:** All shareholder meetings must be held at the corporation's principal office or other place determined by the Board of Directors.
2.2 **Annual Meeting Time:** The annual shareholder meeting for the election of directors and the transaction of such other business properly before the meeting, must be held each year on *date*, at the hour of *time*. If that date is a legal holiday, then the meeting must be held on the day following, at the same hour.
2.3 **Annual Meeting - Order of Business:** The order of business at the annual shareholder meeting is as follows:
(a) Calling the meeting to order.
(b) Proof of notice of meeting (or filing of waiver).
(c) Reading of minutes of last annual meeting.
(d) Officer reports.
(e) Committee reports.
(f) Election of directors.
(g) Miscellaneous business.
2.4 **Special Meetings:** Special shareholder meetings, for any purpose, may be called at any time by the President, Board of Directors, or the holders of at least one-tenth of all shares entitled to vote at the meeting.
2.5 **Notice:** Each shareholder of record entitled to vote at an annual or special meeting must be given written notice of the time and place the meeting by

1

Corporate Bylaws

mail or personal delivery. Notice of an annual or special meeting must be mailed or delivered at least ten days, and not more than fifty days, prior to the meeting.

Notice of a special meeting must also include the purpose(s) for which the meeting is called.

**2.6 Voting Record:** At least ten days before each shareholder meeting, a complete record of the shareholders entitled to vote at the meeting must be made. This list must be arranged in alphabetical order and include the address of and number of shares held by each shareholder. This record must be kept on file at the Corporation's principal office for a period of ten days prior to the meeting. The records must also be kept open for inspection at shareholder meetings.

**2.7 Quorum:** Except as otherwise required by law:

- (a) A quorum at any annual or special shareholder meeting consists of shareholders representing, either in person or by proxy, a majority of the Corporation's outstanding capital stock, entitled to vote at such meeting.
- (b) A quorum of voters, as defined in this paragraph, must be present to transact business at any properly called meeting or adjourned shareholder meeting.

**2.8 Closing of Transfer Books and Fixing Record Date:** In order to determine which shareholders are entitled to notice of or to vote at any shareholder meeting, or any adjournment thereof, or entitled to receive payment of any dividend, the Board of Directors may require that the stock transfer books must be closed for at least ten and not more than fifty days prior to the meeting. Instead of closing the stock transfer books, the Board of Directors may fix in advance a record date for determination of such shareholders. The record date must not be more than fifty or less than ten days prior to the date of the meeting, adjournment, or payment.

**2.9 Proxies:** A shareholder may vote either in person or by proxy, signed in writing by the shareholder or the shareholder's duly authorized attorney-in-fact. No proxy is valid after eleven months from the date signed, unless the proxy states otherwise.

**2.10 Action by Shareholders Without a Meeting:** Any action which may be taken at any annual or special shareholder meeting may be taken without a meeting if all of the shareholders entitled to vote on the subject consent to the action in writing. Such consent has the same force and effect as a unanimous vote of the shareholders.

2

Corporate Bylaws

**2.11 Waiver of Notice:** If a shareholder who is entitled to notice signs a written waiver of the required notice, before or after the stated meeting time, the waiver is the equivalent to the giving of the required notice.

### ARTICLE 3

#### Stock

**3.1 Certificates:** Certificates of stock must be issued in numerical order. Each shareholder is entitled to a certificate signed by the President or a Vice President and the Secretary or Assistant Secretary. The certificate may be sealed with the Corporation's seal or a facsimile thereof. If an officer who has signed or whose facsimile signature appears on any stock certificate ceases to be an officer before the certificate is used, it may be issued by the Corporation and is valid as if the person were an officer on the date of issue.

**3.2 Transfer:** Transfers of stock must be made upon the corporation's stock transfer books. Stock transfer books must be kept at the Corporation's registered office, its principal place of business, or the office of its transfer agent or registrar. Before a new certificate is issued, the old certificate must be surrendered for cancellation. The Board of Directors may, by resolution, open a share register in any state of the United States, and may employ an agent or agents to keep such register, and to record transfers or shares therein.

**3.3 Registered Owner:** Shareholders will be treated by the corporation as the holders in fact of the stock registered in his or her name. The Corporation is not bound to recognize any equitable or other claim to or interest in any share on the part of any other person, except as expressly provided below or by the laws of the State of __________. The Board of Directors may resolve to adopt a procedure by which a shareholder of the Corporation may certify in writing to the Corporation that all or a portion of the shares registered in the shareholder's name are held for the account of a specified person or persons. The resolution must set forth:
(a) The classification of shareholder who may certify;
(b) The purpose or purposes for which the certification may be made;
(c) The form of certification and information to be contained therein;
(d) If the certification is with respect to a record date or closing of the stock transfer books, the date within which the certification must be received by the Corporation; and
(e) Other provisions with respect to the procedure as are deemed necessary or desirable.

Upon receipt of a certification complying with this procedure, the Corporation must treat the persons specified in the certification as the

3

Corporate Bylaws

holders of record of the number of shares specified in place of the shareholder making the certification.

**3.4 Mutilated, Lost, or Destroyed Certificates:** In case of any mutilation, loss or destruction of any stock certificate, another may be issued in its place on proof of such mutilation, loss or destruction. The Board of Directors may impose conditions on such issuance and may require the giving of a satisfactory bond or indemnity to the Corporation or the board may establish other procedures as they deem necessary.

**3.5 Fractional Shares or Scrip:** The Corporation may:

- (a) Issue fractions of a share which entitle the holder to exercise voting rights, to receive dividends, and to participate in any of the Corporation's assets in the event of liquidation;
- (b) Arrange for the disposition of fractional interests by those entitled thereto;
- (c) Pay the fair market value, in cash, of fractions of a share as of the time when those entitled to receive such shares are determined; or
- (d) Issue script in registered or bearer form which entitles the holder to receive a certificate for the full share upon surrender of such script aggregating a full share.

**3.6 Shares of Another Corporation:** Shares owned by the Corporation in another corporation, domestic or foreign, may be voted by officer, agent or proxy chosen by the Board of Directors or, in the absence of such determination, by the President of the Corporation.

## ARTICLE 4

### Board of Directors

**4.1 Numbers and Powers:** The management of all the Corporation's affairs, property, and interests is vested in the Board of Directors. The Board of Directors consists of a person or persons who are elected for a term of one year, and hold office until their successors are elected and qualified. Directors need not be shareholders or residents of the State of State. In addition to the powers and authorities expressly granted by these Bylaws and the Articles of Incorporation, the Board of Directors may exercise all powers of the Corporation and do any lawful acts that is not directed or required to be done by the shareholders under statute, the Articles of Incorporation, or these Bylaws.

**4.2 Change of Number:** The number of directors may be increased or decreased at any time by amendment of these Bylaws. A decrease in

4

Corporate Bylaws

number does not have the effect of shortening the term of any incumbent director.

**4.3 Vacancies:** All vacancies in the Board of Directors may be filled by the affirmative vote of a majority of the remaining directors, though less than a quorum of the Board of Directors. A director elected to fill any vacancy will hold office for the unexpired term of his or her predecessor and until a successor is elected and qualified. Any vacancy to be filled due to an increase in the number of directors may be filled by the Board of Directors for a term lasting until the next election of directors by the shareholders.

**4.4 Removal of Directors:** At a shareholder meeting called expressly for that purpose, the entire Board of Directors, or any member of the Board, may be removed by a vote of the holders of a majority of shares entitled to vote at an election of shareholders.

**4.5 Regular Meetings:** Annual and other regular meetings of the Board of Directors or any committee may be held without notice at the corporation's principal office or at any other place designated by the board of directors or a committee thereof. The annual meeting of the Board of Directors will be held without notice immediately after the adjournment of the annual meeting of shareholders. Other regular meetings of the Board of Directors may be at dates and times chosen by the board.

**4.6 Special Meetings:** Special meetings of the Board of Directors may be held at any place and at any time and may be called by the Chairman of the Board, the President, Vice President, Secretary or Treasurer, or any two or more directors.

**4.7 Notice of Meetings:** Unless the Articles of Incorporation provide otherwise, regular meetings of the Board of Directors may be held without notice of the date, time, place, or purpose of the meeting. Any special meeting of the Board of Directors must be preceded by at least two days' notice of the date, time, and place of the meeting, unless the Articles of Incorporation or these Bylaws require otherwise. Notice may be given personally, by facsimile, by mail, or in any other lawful manner. Oral notification is sufficient only if a written record of the notice is included in the Corporation's minute book. Notice is effective at the earliest of
(a) Receipt;
(b) Delivery to the proper address or telephone number of the director(s) as shown in the Corporation's records; or
(c) Five days after its deposit in the United States mail, as evidenced by the postmark, if correctly addressed and mailed with first-class postage prepaid.

5

Corporate Bylaws

**4.8 Quorum:** A majority of the whole Board of Directors is necessary at all meetings to constitute a quorum to transact business.

**4.9 Waiver of Notice:** Attendance or participation of a meeting by a director constitutes a waiver of notice of the meeting, unless a director attends for the express purpose of promptly objecting to the transaction of any business because the meeting was not lawfully called or convened. A director may waive notice by a signed writing, delivered to the Corporation for inclusion in the minutes before or after the meeting.

**4.10 Registering Dissent:** A director who is present at a board meeting, at which action on a corporate matter is taken, is presumed to have assented to the action, unless the director expressly dissents to the action. A valid dissent must be entered in the meeting's minutes, filed with the meeting's acting Secretary before its adjournment, or forwarded by registered mail to the Corporation's Secretary immediately after the meeting's adjournment. These options for dissent do not apply to a director who voted in favor of the action.

**4.11 Executive and Other Committees:** Standing or special committees may be appointed by the Board of Directors from among its members. These committees are invested with powers and subject to conditions as the Board sees fit. An Executive Committee may be appointed by a resolution passed by a majority of the full Board of Directors. The Executive Committee will have and exercise all of the authority of the Board of Directors, except that it may not amend the Articles of Incorporation or Bylaws, adopt a plan of merger or consolidation, recommend the sale, lease, exchange, or other disposition of all or substantially all the Corporation's property and assets (other than in the equal and regular course of business), or recommend a voluntary dissolution or revocation. All committees must record regular minutes of their meetings and keep the minute book at the corporation's office. The delegation of authority to any committee does not relieve the Board of Directors, or any member thereof, of any responsibility imposed by law.

**4.12 Remuneration:** Directors are not paid a stated salary for their service, except by resolution of the Board of Directors. Directors may also be paid a fixed sum and expenses, if any, for attendance at each regular or special meeting of such Board. Nothing herein contained precludes any director from receiving compensation for serving the Corporation in any other capacity. Members of standing or special committees may be allowed like compensation for attending committee meetings.

**4.13 Loans:** The Corporation may not make loans to the directors, unless first approved by the holders of two-thirds of the voting shares. The Corporation may not make loans secured by its own shares.

6

Corporate Bylaws

**4.14 Action by Directors Without a Meeting:** Any action which may be taken at a meeting of the Directors, or of a committee thereof, may be taken without a meeting if all of the Directors or members of the committee sign a written consent which sets forth the action taken. Such consent has the same effect as a unanimous vote.

**4.15 Action of Directors by Communications Equipment:** Any action which may be taken at a meeting of Directors, or of a committee thereof, may be taken by means of a conference telephone or similar communications equipment which allows all persons participating in the meeting to hear each other at the same time.

## ARTICLE 5

### Officers

**5.1 Designations:** The Corporation's officers will be a President, one or more Vice-Presidents (one or more of whom may be Executive Vice-President), a Secretary and a Treasurer, and Assistant Secretaries and Assistant Treasurers as the Board may designate, who will be elected by the directors at their first meeting after the annual shareholder meeting. An elected officer will hold office for one year or until a successor is elected and qualified. The same person may hold any two or more office, except the offices of President and Secretary.

**5.2 The President:** The President will preside at all meetings of shareholders and directors, have general supervision of the Corporation's affairs, and perform all other duties as are incident to the office or are properly required of him or her by the Board of Directors.

**5.3 Vice President:** During the absence or disability of the President, the Executive Vice-Presidents, in the order designated by the Board of Directors, may exercise all functions of the President. Each Vice-President may have such powers and fulfill such duties as may be assigned to him or her by the Board of Directors.

**5.4 Secretary and Assistant Secretaries:** The Secretary must:- **a)** Issue notices for all meetings, except for notices for special meetings of shareholders and special meetings of the Directors which are called by the requisite number of shareholders or Directors;
- **b)** Keep the minutes of all meetings;
- **c)** Have charge of the corporate seal and books;
- **d)** Make reports and perform duties as are incident to the office, or are properly required of him or her by the Board of Directors.The Assistant Secretary, or Assistant Secretaries in the order designated by the Board of Directors, will perform all of the duties of the Secretary

7

Corporate Bylaws

during the absence or disability of the Secretary, and at other times may perform such duties as are directed by the President or the Board.

**5.5 The Treasurer:** The Treasurer will:- **a)** Have custody of all the Corporation's monies and securities and keep regular books of account;
- **b)** Disburse the Corporation's funds in payment of the just demands against the Corporation or as may be ordered by the Board of Directors, taking proper vouchers for such disbursements; and
- **c)** Provide the Board with an account of all his or her transactions as Treasurer and of the financial conditions of the office properly required of him or her by the Board of Directors. The Assistant Treasurer, or Assistant Treasurers in the order designated by the Board of Directors, must perform all of the duties of the Treasurer in the absence or disability of the Treasurer, and at other times may perform such other duties as are directed by the President or the Board of Directors.**5.6 Delegation:** In the absence or inability to act of any officer and of any person authorized to act in his or her place, the Board of Directors may delegate the officer's powers or duties to any other officer, director, or other person.**5.7 Vacancies:** Vacancies in any office arising from any cause may be filled by the Board of Directors at any regular or special board meeting.**5.8 Other Officers:** Directors may appoint other officers and agents as they deem necessary or expedient. The term, powers, and duties of such officers will be determined by the Board of Directors.**5.9 Loans:** No loans may be made by the Corporation to any officer, unless first approved by the holders of two-thirds of the voting shares.**5.10 Term - Removal:** The Corporation's officers hold office until their successors are chosen and qualify. Any officer or agent elected or appointed by the Board of Directors may be removed at any time, without cause, by the affirmative vote of a majority of the whole Board of Directors. Such removal does not impact the removed officer's contract rights, if any.**5.11 Bonds:** The Board of Directors may resolve to require any officer to give bonds to the Corporation, with sufficient surety or sureties, conditioned upon the faithful performance of the duties of their offices and compliance with other conditions as required by the Board of Directors.**5.12 Salaries:** Officers' salaries will be fixed from time to time by the Board of Directors. Officers are not prevented from receiving a salary by reason of the fact that he or she is also a director of the Corporation.

8

Corporate Bylaws

## ARTICLE 6
### Dividends and Finance

**6.1 Dividends:** Dividends may be declared by the Board of Directors and paid by the Corporation out of the unreserved and unrestricted earned surplus of the Corporation, or out of the unreserved and unrestricted net earnings of the current fiscal year, or in treasury shares of the Corporation, subject to the conditions and limitations imposed by the State of __________. The stock transfer books may be closed for the payment of dividends during periods not to exceed fifty days, as fixed by the Board of Directors. The Board of Directors, without closing the Corporation's books, may declare dividends payable only to holders of record at the close of business on any business day not more than fifty days prior to the date on which the dividend is paid.

**6.2 Reserves:** The Directors may, in their absolute discretion, set aside out of the Corporation's earned surplus, such sum or sums as they deem expedient for dividend, maintaining any corporate property, or any other purpose, before making any distribution of earned surplus.

**6.3 Depositories:** The Corporation's moneys must be deposited in the Corporation's name in a bank or trust company or trust companies designated by the Board of Directors. Corporate monies may be drawn out only by check or other order for payment signed by such persons and in such manner as may be determined by resolution of the Board of Directors.

## ARTICLE 7
### Notices

Except as may otherwise be required by law, any notice to any shareholder or director may be delivered personally or by mail. If mailed, the notice will be deemed to have been delivered when deposited in the United States mail, addressed to the shareholder or director at his or her last known address in the records of the Corporation, with postage prepaid.

## ARTICLE 8
### Seal

The Board of Directors may adopt a corporate seal with the form and inscription of their choosing. The adoption and use of a corporate seal is not required.

## ARTICLE 9
### Books and Records

9

Corporate Bylaws

The Corporation must keep a complete and accurate accounting and minutes of the proceedings of its shareholders and Board of Directors. The Corporation must keep a list of its shareholders, including the names and addresses of all shareholders and the number and class of the shares held by each at its registered office or principal place of business, or at the office of its transfer agent or registrar. Any books, records, and minutes may be in written form or any other form capable of being converted into written form within a reasonable time.

### Special Corporate Acts

**10.1 Execution of Written Instruments:** Contracts, deeds, documents, and instruments must be executed by the President alone unless the Board of Directors designates another procedure.

**10.2 Signing of Checks or Notes:** Checks, notes, drafts, and demands for money must be signed by an officer(s) designated by the Board of Directors.

**10.3 Indemnification of Directors and Officers:** The Corporation will indemnify any and all current or former Directors or officers or any person who may have served at its request as a director or officer of the Corporation or of any other corporation in which it is a creditor, against expenses actually or necessarily incurred by them in connection with the defense or settlement of any action, suit, or proceeding brought or threatened in which they, or any of them, are or might be made party, by reason of being or having been directors or officers or a director or an officer of the Corporation, or of such other corporation. This indemnification will not apply, however, to any matter as to which such Director or officer or former Director or officer or person be adjudged in such action, suit, or proceeding to be liable for negligence or misconduct in the performance of duty. Such indemnification shall not be deemed exclusive of other rights to which the indemnified person may be entitled, under any law, bylaw, agreement, vote of shareholders, or otherwise.

### Amendments

**11.1 By Shareholders:** These Bylaws may be altered, amended or repealed by the affirmative vote of a majority of the voting stock issued and outstanding at any regular or special shareholder meeting.

10

Corporate Bylaws

**11.2 By Directors:** The Board of Directors has the power to make, alter, amend and repeal the Corporation's Bylaws. Any alteration, amendment, or repeal of the Bylaws, may be changed or repealed by the holders of a majority of the stock entitled to vote at any shareholders meeting.

**11.3 Emergency Bylaws:** The Board of Directors may adopt emergency Bylaws, subject to repeal or change by the shareholders, which operate during any emergency in the Corporation's conduct of business resulting from an attack on the United States or a nuclear or atomic disaster.

Adopted by resolution of the Corporation's Board of Directors or incorporator on this _________ day of _________, 20___

Director(s) or Incorporator(s)

11

Corporate Bylaws

**Attachment 5:** `pitchdeck.pdf`

# AIEDC is powered by M.I.N.D®

An A.I. as a Service (AlaaS) Company

AIEDC is focused on building an Discrete-Event System Specification (DEVS), for Economic Prediction and Economic Forecasting Simulation in a Metaverse type of environment. Our core services are A.I. Research and Product Development, as well as digitization services for the front and back office for SME's, such as A.I. and (5G) Mobile App Commerce Services.

![img-0.jpeg](img-0.jpeg)

1

# Problem

AIEDC is powered by M.I.N.D®

## COVID-19 / Climate Change

1/3 of SME's were never expected to reopen (OCED, 2021)

## Digitization Remains Elusive

While digitization is a consensus solution for SME's, access to the technology and the technology skills gap continue to prevent digitization efforts.

## Access to A.I.

A shortage of skilled employees and budget constraints prevent SME's from deployment or acquisition of A.I. products and services.

AIEDC ![AIEDC logo]() is powered by M.I.N.D®

# 5G & Cloud Mobile App Maker powered by M.I.N.D®

will help to close the digital divide by empowering SME's create their own IOS & Android Mobile Apps with No-Code or Low-Code. This solution will democratize A.I. and provide an affordable and accessible platform for SME's to do business anywhere in the world.

Get started free

![img-1.jpeg](img-1.jpeg)

3

AIEDC is powered by M.I.N.D®

# 5G & Cloud Mobile App Maker powered by M.I.N.D® Features

In-App Purchases

Sell Professional Services
& or Food from within the App.

![img-2.jpeg](img-2.jpeg)

Social Media Integration

Instagram, Twitter, Facebook
and LinkedIn (more)

Navigation

Give Customers (GPS) turn by
turn directions to your business.

Quote Request

Request a Quote for Professional
Services.

Push Notifications

Announce Specials, News & Events to
App Users.

Customer Loyalty

Membership, Loyalty Points, &
Discount Coupons.

4

AIEDC is powered by M.I.N.D®

# Our Services

## A.I. Cloud Churn Prediction

Using our M.I.N.D® Machine Intelligence NeuralNetwork Database via machine learning and other data analytics AIEDC can identify SMB’s churn rate as a result of COVID-19 and other variables.

## A.I. Cloud Future Trends Services

Using the M.I.N.D® Machine Intelligence NeuralNetwork Database and our unique algorithm via machine learning and other data analytics, AIEDC helps SMBs predict the economic & business cycle trends.

## Tech Digitization Services

This includes automation efficiencies, application development for websites, cloud migration, data storage, technological development, IT consulting, IT solutions for SMB’s.

AIEDC also plans to provide a 5G - **Cloud Mobile App Maker with Machine Learning** to help small and midsize businesses create their own (IOS & Android) mobile apps with no-code or low-code so they can engage and service their customer base.

AIEDC ![AIEDC logo]() is powered by M.I.N.D®

# Who We Are

AIEDC is an A.I. as a Service (AIaaS) company, which is powered by M.I.N.D®, a Machine Intelligence Neural Network Database centered around Discrete-Event System Specification (DEVS), for Economic Prediction and Economic Forecasting Simulation in a Metaverse type of environment.

Our core services are A.I. Research and Product Development, as well as digitization services for the front and back office for SME's, such as A.I. and (5G) Mobile App Commerce Services.

![img-3.jpeg](img-3.jpeg)

AIEDC is powered by M.I.N.D®

# Partnership with Lodz University

Lodz University of Technology was created in 1945 and has developed into one of the Top Technical Universities in Poland. AIEDC and Lodz University of Technology exploring and collaborating on the use of Artificial Intelligence for Research and Product Development.

![img-4.jpeg](img-4.jpeg)

AIEDC is powered by M.I.N.D®

# Partnership with Sapiens Network

Sapiens is a Decentralized Human-Centric, User-Controlled A.I.-Driven Super Platform with Personalized A.I. Agents that not only empower individuals and Monetizes their Data and Services, but can also be extended to Families, Virtual Groups, Companies, Communities, Cities, City-States, Digital Nations, the Metaverse and beyond.

![img-5.jpeg](img-5.jpeg)

SAPIENS
NETWORK

AIEDC is powered by M.I.N.D®

# Partnership with AGI Laboratory

AGI Laboratory is focused on building Collective Superintelligence Systems: Augmenting Human Intelligence and Moving Beyond Narrow Artificial Intelligence.

A Collective system has multiple parts that work together. A working collective system is greater than the sum of its parts. In a collective Intelligence system, each part is also intelligent. A collective intelligence system, therefore, amplifies the intelligence of its parts - -- to produce a greater intelligence. i.e. “Superintelligence”

![img-6.jpeg](img-6.jpeg)

AIEDC is powered by M.I.N.D®

# Our Team

![img-7.jpeg](img-7.jpeg)

**Leonard S. Johnson “LS”**

Founder/CEO

![img-8.jpeg](img-8.jpeg)

**Dr. Andrzej Romanowski**
**Ph.D., D.Sc.**

AIEDC - CTO

![img-9.jpeg](img-9.jpeg)

**Dr. Radosław Adamus Ph.D.**

AIEDC - CSO

AIEDC is powered by M.I.N.D®

# Board of Directors / Advisors

![img-0.jpeg](img-0.jpeg)

Mr. Kris Skrinak

AIEDC - Board of Directors

![img-1.jpeg](img-1.jpeg)

Mr. David J Kelley

AIEDC - Advisory Board

![img-2.jpeg](img-2.jpeg)

Dr. Alexander

"Rocky" Nawrocki,
Ph.D.

![img-3.jpeg](img-3.jpeg)

Dr. Jacques Ludik

AIEDC - Advisory Board

![img-4.jpeg](img-4.jpeg)

Mr. Michael Benezra

AIEDC - Advisory Board

AIEDC - Chair, Board of Directors

CEO - Airspeed Equity

(Equity Investor: 13%)

**Attachment 6:** `otherfinancial.pdf`

# Custodial and Voting Agreement

This Custodial and Voting Agreement (this “Agreement”) is entered into as of the date of electronic consent by the parties on the NetCapital Funding Portal Inc. (the “Portal”), by and among Portal, Netcapital Systems LLC, a Delaware limited liability company (“Agent”), and the undersigned investor (“Investor”). Portal is signing this Agreement on behalf of the Investor pursuant to a power of attorney granted by Investor to Portal, but Investor is fully bound by this Agreement as if Investor had signed the Agreement.

Custodian has agreed to open and maintain the Account (as defined below) for Investor and to provide other services to Investor in connection with the Account. This Agreement sets out the terms under which Custodian will provide those services to Investor and the arrangements that will apply in connection with those services.

In consideration of the mutual promises herein made and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

## 1. Interpretation

### 1.1 Definitions

In this Agreement:

- • “Account” means the account constituted by Investor’s purchase of beneficial interests in the Shares that were offered for sale by the Issuer on the Portal.
- • “Account Balance” means, in relation to the Account, the number of Shares beneficially owned by Investor, including all of Investor’s rights to and interest in the balance from time to time on that Account.
- • “Business Day” means a weekday that is not a federal holiday.
- • “Fees” means the fees and charges referred to in clause 5.1 of this Agreement.
- • “Issuer” means each issuer of the Shares.
- • “Shares” means the beneficial interests in the uncertificated shares of common stock or preferred stock or the units of convertible debt, limited liability company membership interests or limited partnership interests that were beneficially purchased by Investor on the Portal.
- • “Transfer Agent” means Netcapital Systems LLC, or a successor transfer agent.
- • “Withdrawal Date” means the Business Day on which Investor wishes to withdraw Investor’s Account Balance.

### 1.2. Headings

The headings in this Agreement do not affect its interpretation.

### 1.3. Singular and plural

References to the singular include the plural and vice versa.

## 2. Account

### 2.1. Opening Account

Custodian shall open and maintain the Account for the beneficial interests in the Shares beneficially held by Investor.

### 2.2. Deposits and withdrawals

The balance of Investor's Account shall reflect the Shares beneficially held by Investor. A deposit is made into Investor's Account when the escrow agent sends money to the Issuer or a seller of Shares, as the case may be, and Custodian receives a record from the Transfer Agent of the number of Shares that Investor beneficially holds. A withdrawal occurs when Custodian receives notice from the Transfer Agent that the Shares have been beneficially sold or transferred.

### 2.3. Reports

Reports relating to deposits into and withdrawals from the Account and the Account Balance will be available to Investor daily by means of a section on the Portal to which Investor may login (the 'Website').

## 3. Custody Services

### 3.1. Appointment

Investor hereby appoints Custodian to act as custodian of the Shares in accordance with this Agreement and applicable law.

### 3.2. Ownership of Securities

Custodian will be the sole holder of legal title to the Shares while Investor will hold beneficial ownership of the Shares. The Custodian will be the sole record holder of the Shares on the books and records of the Issuer. The sole dispositive record of Investor's beneficial ownership of the Shares will be in the books and records of the Transfer Agent.

### 3.3. Voting of Securities

Prior to the Withdrawal Date, at every meeting of the equity or interest holders of the Issuer called with respect to any matter, and at every adjournment or postponement thereof, and on every action or approval by written consent or resolution of the equity or interest holders of the Issuer, Investor agrees that Custodian shall vote Investor's Shares, in the event Investor's Shares contain voting rights.

### 3.4. Insurance

Custodian undertakes that Custodian may maintain insurance in support of Custodian's custodial obligations under this Agreement including covering any loss of the Shares. In the event that Custodian elects to reduce, cancel or not to renew such insurance, Custodian may give Investor prior written notice as follows: in the case of a reduction, Custodian may endeavor to provide such notice at least 30 days prior to the effective date of the reduction; and in the event of a cancellation or expiration of the insurance without renewal Custodian may provide such notice at least 30 days prior to the last day of insurance coverage. Investor acknowledges that any such insurance is held for Custodian's benefit and not for the benefit of Investor, and that Investor may not submit any claim under the terms of such insurance.

### 3.5. Notice of Changes

Custodian may notify Investor promptly in writing of the following: (i) Custodian receives notice of any claim against the Account other than a claim for payment of safe custody or administration permitted by this Agreement; (ii) Custodian otherwise fails to comply with any of the provisions of this Agreement; or (iii) any of Custodian's representations and warranties in clause 4 shall cease to be true and correct.

## 4. Representations and Warranties

### 4.1. Investor's representations

Investor represents and warrants to us that:

1. Investor is the beneficial owner of the Shares;
2. Investor has all necessary authority, powers, consents, licenses and authorizations and has taken all necessary action to enable Investor lawfully to enter into and perform Investor's duties and obligations under this Agreement; and
3. this Agreement and the obligations created under it are binding upon Investor and enforceable against Investor in accordance with its terms (subject to applicable principles of equity) and do not and will not violate the terms of the rules or any order, charge or agreement by which Investor is bound.

### 4.2. Custodian's representations

Custodian represents and warrants to Investor that:

1. this Agreement has been duly authorized, executed and delivered on Custodian's behalf and constitutes Custodian's legal, valid and binding obligation; and
2. the execution, delivery and performance of this Agreement by Custodian does not and will not violate any applicable law or regulation and does not require the consent of any governmental or other regulatory body except for such consents and approvals as have been obtained.

## 5. Fees and Expenses

### 5.1. Fees

Custodian's fees will be paid in accordance with the fee agreement that has been executed by the Portal. There are no fees payable by the Investor.

## 6. Scope of Responsibility

### 6.1. Exclusion of liability

Custodian may use reasonable care in the performance of its duties under this Agreement and will only be responsible for any loss or damage suffered by Investor as a direct result of any gross negligence, fraud or willful misconduct on Custodian's part in the performance of Custodian's duties, and in which case Custodian's liability will not exceed the aggregate market value of the Shares at the time of such gross negligence, fraud or willful misconduct.

### 6.2. Force majeure

Neither Custodian, nor any of Custodian's directors, employees, agents or affiliates shall incur any liability to Investor if, by reason of any provision of any present or future law or regulation of any governmental or regulatory authority or stock exchange, or by reason of any act of God or war or terrorism or other circumstances beyond Custodian's control, Custodian is prevented or forbidden from, or would be subject to any civil or criminal penalty on account of, or are delayed in, doing or performing any act or thing which by the terms of this Agreement it is provided shall be done or performed and accordingly Custodian does not do that thing or does that thing at a later time than would otherwise be required.

### 6.3. Exculpation in respect of offer document

Custodian and its officers, directors, employees, agents and sub-custodians shall not be responsible or liable in any manner for any recitals, statements, representations or warranties made by any person other than Custodian.

## 7. Termination

## **7.1. Method**

Custodian may terminate this Agreement by giving not less than 60 Business Days written notice to Investor and Portal, provided that Custodian may terminate this Agreement immediately on written notice in the event that any of the statements set out in clause 4.1(a)-(c) become untrue. Clauses 6, 7.2 and 9 shall survive termination of this Agreement.

## **7.2. Existing rights**

Termination shall not affect rights and obligations then outstanding under this Agreement, which shall continue to be governed by this Agreement until all obligations have been fully performed.

## **7.3. Website**

Effective upon the Termination Date, the use of the Website will automatically be terminated and no further access to the Website will be permitted.

# **8. Notices and Record-Keeping**

## **8.1. Form**

A notice or other communication under or in connection with this Agreement may be given using the contact information Investor provided to the Portal.

## **8.2. Method of transmission**

Any notice or other communication required to be in writing may be delivered by email.

# **9. General**

## **9.1. No advice**

Custodian's duties and obligations under this Agreement do not include providing Investor with investment advice. In asking Custodian to open and maintain the Account, Investor does so in reliance upon Investor's own judgment and Custodian shall not owe to Investor any duty to exercise any judgment on Investor's behalf as to the merits or suitability of any deposits into, or withdrawals from, an Account.

## **9.2. Assignment**

This Agreement is for the benefit of and binding upon the parties and their respective heirs, successors and assigns. Investor may not assign, transfer or encumber, or purport to

assign, transfer or encumber, Investor’s right, title or interest in relation to any Account or any right or obligation under this Agreement or any part of any of the foregoing unless Custodian otherwise agrees in writing.

### 9.3. Amendments

amendment to this Agreement must be agreed in writing and be signed by all parties. Unless otherwise agreed, an amendment will not affect any legal rights or obligations that may already have arisen.

### 9.4. Partial invalidity

If any of the clauses (or part of a clause) of this Agreement becomes invalid or unenforceable in any way, the validity of the remaining clauses (or part of a clause) will not in any way be affected or impaired.

### 9.5. Entire agreement

This document represents the entire agreement, and supersedes any previous agreements among the parties relating to the subject matter of this Agreement.

### 9.6. Joint and several liability

Investor’s responsibilities under this Agreement are joint and several if applicable.

### 9.7. Counterparts

This Agreement may be executed in any number of counterparts each of which when executed and delivered is an original, but all the counterparts together constitute the same agreement.

### 9.8. Governing Law and Jurisdiction

This Agreement is governed by the laws of the State of Delaware without regard to its conflicts of laws principles.

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Artificial Intelligence Economic Development Corporation

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 05-01-2017

**Physical Address:** 6242 Warner Avenue, Huntington Beach, CA, 92647

**Issuer Website:** www.Aiedc.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** NetCapital Funding Portal Inc.

**Intermediary CIK:** 0001669191

**Intermediary File Number:** 007-00035

**Intermediary CRD Number:** 283596

### Offering Information

**Compensation to Intermediary:** Up to 4.9% of amount raised for a successful offering and a listing fee of up to $10,000

**Financial Interest in Issuer:** None.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 962

**Price per Security:** $10.40

**Method for Determining Price:** At issuer discretion.

**Target Offering Amount:** $10,004.80

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $249,600.00

**Deadline to Reach Target Amount:** 04-28-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 4

**Total Assets (Most Recent Fiscal Year):** $10,902.00

**Total Assets (Prior Fiscal Year):** $14,402.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $8,702.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $11,802.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $13,267.00

**Short-Term Debt (Prior Fiscal Year):** $0.00

**Long-Term Debt (Most Recent Fiscal Year):** $0.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $0.00

**Revenues/Sales (Prior Fiscal Year):** $0.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $0.00

**Cost of Goods Sold (Prior Fiscal Year):** $0.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-49,464.00

**Net Income (Prior Fiscal Year):** $-25,000.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, 1V, PR, VI

### Signatures

**Issuer:** Artificial Intelligence Economic Development Corporation

**Signature:** Leonard S.   Johnson Ph.D. student

**Title:** Principal Executive Officer

---

**Signature:** Leonard S.   Johnson Ph.D. student

**Title:** Principal Executive Officer

**Date:** 03-21-2023

---

**Signature:** Leonard S.   Johnson Ph.D. student

**Title:** Principal Financial Officer

**Date:** 03-21-2023

---

**Signature:** Leonard S.   Johnson Ph.D. student

**Title:** Principal Accounting Officer

**Date:** 03-21-2023

---

**Signature:** Leonard S.   Johnson Ph.D. student

**Title:** Board Member

**Date:** 03-21-2023

---

**Signature:** Dr. Alexander  Nawrocki Ph.D.

**Title:** Board Member

**Date:** 03-21-2023