# EDGAR Filing Document

**Accession Number:** 0001895251
**File Stem:** 0001493152-23-007369
**Filing Date:** 2023-3
**Character Count:** 686073
**Document Hash:** ea68dc616a0e53663c32ea5baa1359f0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-007369.hdr.sgml**: 20230313

**ACCESSION NUMBER**: 0001493152-23-007369

**CONFORMED SUBMISSION TYPE**: 10-12G/A

**PUBLIC DOCUMENT COUNT**: 6

**FILED AS OF DATE**: 20230313

**DATE AS OF CHANGE**: 20230313

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sustainable Green Team, Ltd.
- **CENTRAL INDEX KEY:** 0001895251
- **STANDARD INDUSTRIAL CLASSIFICATION:** AGRICULTURE SERVICES [0700]
- **IRS NUMBER:** 844588111
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56510
- **FILM NUMBER:** 23725936

**BUSINESS ADDRESS:**
- **STREET 1:** 24200 CR-561
- **CITY:** ASTATULA
- **STATE:** FL
- **ZIP:** 34705
- **BUSINESS PHONE:** 407-886-8733

**MAIL ADDRESS:**
- **STREET 1:** 24200 CR-561
- **CITY:** ASTATULA
- **STATE:** FL
- **ZIP:** 34705

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10/A** 

 **AMENDMENT NO. 1**

**GENERAL FORM FOR REGISTRATION OF SECURITIES**

**PURSUANT TO SECTION 12(b) OR 12(g) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

**THE SUSTAINABLE GREEN TEAM, LTD.**

**(Exact name of registrant as specified in its charter)**

---

| | |
|:---|:---|
| **Delaware** | **61-1934413** |
| **(State or other jurisdiction of**<br> **incorporation or organization)** | **(I.R.S. employer**<br> **identification no.)** |

---

**24200 CR-561**

**Astatula, FL 34705**

**(Address of principal executive offices and zip code)**

**(407) 886-8733**

**(Registrant's telephone number, including area code)**

 ***Copies to:***

 **Laura Anthony, Esq.**

 **Craig D. Linder, Esq.<br> Anthony L.G., PLLC<br> 625 N. Flagler Drive, Suite 600<br> West Palm Beach, Florida 33401<br> Telephone: (561) 514-0936**

**Securities to be registered pursuant to Section 12(b) of the Act:**

**None**

**Securities to be registered pursuant to Section 12(g) of the Act:**

**Common Stock, par value $0.0001 per share**

**(Title of class)**

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
|  |  | Emerging growth company | ☒ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financing accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [IMPLICATIONS OF BEING AN EMERGING GROWTH COMPANY](#Link_001) | 1 |
| [DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS](#v_000001) | 2 |
| [RISK FACTOR SUMMARY](#Link_002) | 3 |
| [ITEM 1. BUSINESS](#Link_003) | 5 |
| [ITEM 1A. RISK FACTORS](#Link_004) | 20 |
| [ITEM 2. FINANCIAL INFORMATION](#Link_005) | 37 |
| [ITEM 3. PROPERTIES](#Link_006) | 52 |
| [ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#Link_007) | 52 |
| [ITEM 5. DIRECTORS AND EXECUTIVE OFFICERS](#Link_008) | 53 |
| [ITEM 6. EXECUTIVE COMPENSATION](#Link_009) | 58 |
| [ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE](#Link_010) | 62 |
| [ITEM 8. LEGAL PROCEEDINGS](#Link_011) | 63 |
| [ITEM 9. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS](#Link_012) | 65 |
| [ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES](#Link_013) | 67 |
| [ITEM 11. DESCRIPTION OF THE REGISTRANT'S SECURITIES TO BE REGISTERED](#Link_014) | 71 |
| [ITEM 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS](#Link_015) | 75 |
| [ITEM 13. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](#Link_016) | 76 |
| [ITEM 14. CHANGES IN AND DISAGREEMENTS WITH AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSURE](#Link_017) | 76 |
| [ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS](#Link_018) | 76 |
| [EXHIBIT INDEX](#Link_019) | 77 |

---

i

**Implications of Being an Emerging Growth Company**

As a company with less than $1.235 billion in revenues during our last fiscal year, we qualify as an emerging growth company as defined in the Jumpstart Our Business Startups Act, or the JOBS Act, enacted in 2012. As an emerging growth company, we expect to take advantage of reduced reporting requirements that are otherwise applicable to public companies. These provisions include, but are not limited to:

● being permitted to present only two years of audited financial statements, in addition to any required unaudited interim financial statements, with correspondingly reduced "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosure in this registration statement;

● not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended;

● reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and

● exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

We may continue to use these provisions until the last day of our fiscal year following the fifth anniversary of the completion of this offering. However, if certain events occur prior to the end of such five-year period, including if we become a "large, accelerated filer," our annual gross revenues exceed $1.235 billion or we issue more than $1.235 billion of non-convertible debt in any three-year period, we will cease to be an emerging growth company prior to the end of such five-year period.

As an emerging growth company, we intend to take advantage of an extended transition period for complying with new or revised accounting standards as permitted by The JOBS Act.

To the extent that we continue to qualify as a "smaller reporting company," as such term is defined in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, after we cease to qualify as an emerging growth company, certain of the exemptions available to us as an emerging growth company may continue to be available to us as a smaller reporting company, including: (i) not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes Oxley Act; (ii) scaled executive compensation disclosures; and (iii) the requirement to provide only two years of audited financial statements, instead of three years.

You should rely only on the information contained in this registration statement on Form 10 or to which we have referred you. We have not authorized anyone to provide you with information that is different. You should assume that the information contained herein is accurate as of the date of this registration statement on Form 10 only.

This registration statement will become effective automatically 60 days from the date of the original filing (the "**Effective Date**"), pursuant to Section 12(g)(1) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**"). As of the Effective Date, we will become subject to the reporting requirements of Section 13(a) under the Exchange Act and will be required to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act.

**Use of Names**

In this registration statement, unless the context otherwise requires, the terms "**we**," "**us**," "**our**," "**Company**" or "**The Sustainable Green Team**" refer to The Sustainable Green Team, Ltd. together with its wholly owned subsidiaries.

**Currency**

Unless otherwise indicated, all references to "$" or "US$" in this registration statement refer to United States dollars.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This registration statement contains forward-looking statements. Specifically, forward-looking statements may include statements relating to:

● Our future financial performance;

● Changes in the market for our products and services;

● Our expansion plans and opportunities; and

● Other statements preceded by, followed by or that include the words "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target" or similar expressions.

These forward-looking statements are based on information available as of the date of this registration statement and current expectations, forecasts, and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include:

● The level of demand for our products and services;

● Competition in our markets;

● Our ability to grow and manage growth profitably;

● Our ability to access additional capital;

● Changes in applicable laws or regulations;

● Our ability to attract and retain qualified personnel;

● The possibility that we may be adversely affected by other economic, business, and/or competitive factors; and

● Other risks and uncertainties indicated in this registration statement, including those under "Risk Factors."

**INDUSTRY AND MARKET DATA**

We are responsible for the disclosure in this registration statement. However, this registration statement includes industry data that we obtained from internal surveys, market research, publicly available information, and industry publications. The market research, publicly available information and industry publications that we use generally state that the information contained therein has been obtained from sources believed to be reliable. The information therein represents the most recently available data from the relevant sources and publications, and we believe remains reliable. We did not fund and are not otherwise affiliated with any of the sources cited in this registration statement. Forward-looking information obtained from these sources is subject to the same qualifications and additional uncertainties regarding the other forward-looking statements in this registration statement.

**TRADEMARKS AND COPYRIGHTS**

We own or have rights to trademarks or trade names that we use in connection with the operation of our business, including our corporate names, logos and website names. In addition, we own or have the rights to copyrights, trade secrets and other proprietary rights that protect the content of our products and the formulations for such products. This registration statement may also contain trademarks, service marks and trade names of other companies, which are the property of their respective owners. Our use or display of third parties' trademarks, service marks, trade names or products in this registration statement is not intended to, and should not be read to, imply a relationship with or endorsement or sponsorship of us. Solely for convenience, some of the copyrights, trade names and trademarks referred to in this registration statement are listed without their©,® and™ symbols, but we will assert, to the fullest extent under applicable law, our rights to our copyrights, trade names and trademarks. All other trademarks are the property of their respective owners.

**Risk Factor Summary**

Investing in our securities involves risks. You should carefully consider the risks described in Item 1A—"Risk Factors" beginning on page 20 before deciding to invest in our securities. If any of these risks actually occurs, our business, financial condition and results of operations would likely be materially adversely affected. In such case, the trading price of our securities would likely decline, and you may lose all or part of your investment. Set forth below is a summary of some of the principal risks we face:

● We are a holding company and depend upon our subsidiaries for our cash flows;

● We may require additional funding for our operations and expansion plans, and we cannot assure you that we will be able to obtain any additional financing on terms that are acceptable to us, or at all;

● If the voting power of our capital stock continues to be highly concentrated, it may prevent you and other minority stockholders from influencing significant corporate decisions and may result in conflicts of interest;

● The COVID-19 pandemic has impacted and will likely continue to impact our business, financial condition, supply chain, results of operations and cash flows;

● Our industry and the markets in which we operate are highly competitive with low barriers to entry. Increased competitive pressures could reduce our share of the markets we serve and adversely affect our business, financial position, results of operations and cash flows;

● Our business success depends on our ability to preserve long-term customer relationships and our growth projections may not be realized if we fail to attract more big box store business;

● Our growth projections assume efficiencies, cost savings and other benefits of our vertically integrated business model that might not be achieved;

● We may be adversely affected if customers reduce their outsourcing;

● Because we operate our business through dispersed locations across the United States, our operations may be materially adversely affected by inconsistent practices and the operating results of individual branches may vary;

● Future acquisitions or other strategic transactions could negatively impact our reputation, business, financial position, results of operations and cash flows;

● Seasonality affects the demand for our services and products and our results of operations and cash flows;

● Our operations are impacted by weather conditions, seasonality, and climate change;

● Increases in raw material costs, fuel prices, wages and other operating costs, and changes in our ability to source adequate supplies and materials in a timely manner, could adversely impact our business, financial position, results of operations and cash flows;

● If we are unable to accurately estimate the overall risks, requirements, or costs when we bid on or negotiate contracts that are ultimately awarded to us, we may achieve lower than anticipated profits or incur contract losses;

● Our success depends on our executive management and other key personnel;

● Our future success depends on our ability to attract, retain and maintain positive relations with trained workers;

● Our business could be adversely affected by a failure to properly verify the employment eligibility of our employees;

● Our use of subcontractors to perform work under certain customer contracts exposes us to liability and financial risk;

● If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business;

● Adverse litigation judgments or settlements resulting from legal proceedings relating to our business operations could materially adversely affect our business, financial position results of operations, and cash flows;

● Some of the equipment that our employees use is dangerous, and an increase in accidents resulting from the use of such equipment could negatively affect our reputation, results of operations and financial position;

● Any failure, inadequacy, interruption, security failure or breach of our information technology systems, whether owned by us or outsourced or managed by third parties, could harm our ability to effectively operate our business and could have a material adverse effect on our business, financial position, results of operations and cash flows;

● Our inability to adequately protect our intellectual property, which could harm the value of our brand and adversely affect our business.

● Our substantial indebtedness could have important adverse consequences and adversely affect our financial condition, including the potential for cross-defaults;

● We may be unable to generate sufficient cash flow to satisfy our significant debt service obligations, which could have a material adverse effect on our business, financial condition, and results of operations;

● Despite our current level of indebtedness, we, our subsidiaries and our acquisitions plans may cause us to incur substantially more debt, contractual obligations, and general and commercial liabilities. This could further exacerbate the risks to our financial condition described above; and

● The market price of our common stock is likely to be highly volatile because of several factors, including a limited public float and our failure to meet the expectations of investors, stockholders or financial analysts.

● Becoming a fully reporting public company results in additional expenses, diverts management's attention, and could also adversely affect our ability to attract and retain qualified directors.

● Shares eligible for future sale may adversely affect the market for our common stock.

● Risks related to a lack of dividend payments by us on our common stock.

● Our obligation to indemnify and hold harmless our officers and directors to the maximum extent permitted by Delaware law.

**ITEM 1. BUSINESS**

***Background***

Our common stock is traded in the United States on the OTCQX tier of the OTC Market Group Inc. (the "OTCQX") under the symbol "SGTM."

We are a provider of arbor care, tree trimming, and storm debris clean-up and disposal services, primarily in the southeastern United States with nationwide capabilities and a manufacturer of mulch, lumber and soil products in the midwest and southeast regions of the United States and the Ohio Valley. Our products are distributed through our national distribution channels. We are also installing equipment for producing soil products which we expect to start selling in 2023.

***Corporate History***

The Sustainable Green Team, Ltd., (f/k/a Sierra Gold Corp.)"", a Delaware corporation (the "Company"), conducts business activities principally through its two wholly-owned subsidiaries: National Storm Recovery LLC ("NSR LLC"), a Delaware limited liability company and Mulch Manufacturing, Inc., an Ohio corporation ("MM")".

The Company was initially formed, under the name Alpha Diamond Corporation in the State of Nevada on January 22, 1997. It's undergone multiple name changes over the years and a domicile change to Wyoming on February 15, 2011.

Effective April 18, 2019, Sierra Gold Corp., ("SGCP"), entered into an equity exchange agreement (the "Merger"), as amended on December 31, 2019 with NSR LLC, pursuant to which SGCP acquired all of the membership units of NSR LLC. Upon closing, NSR LLC became a wholly-owned subsidiary of SGCP.

On July 22, 2019, a Certificate of Amendment was filed with the State of Wyoming to change the name of the Company from "Sierra Gold Corporation" to "National Storm Recovery, Inc." and to effect a 1 for 10,000 reverse stock split. At September 11, 2019, the Company's trading symbol changed from "SGCP" to "NSRI".

The stock split decreased the issued and outstanding shares of its common stock from 3,406,865,285 to 602,636 (after rounding up to a 100 share minimum) before SGCP issued 40,000,000 shares of its common stock to the members of NSR LLC as consideration for the equity interests exchange. As a result of the Merger, NSR LLC members acquired 99% of SGCP's issued and outstanding shares of common stock and SGCP changed its principal focus to providing tree services, debris hauling and removal, biomass recycling, mulch manufacturing, packaging and sales.

The Merger was treated as a reverse recapitalization effected by an equity exchange for financial and reporting purposes since SGCP was deemed to be a shell corporation with nominal operations and no assets at the time of the merger. NSR LLC is considered the acquirer for accounting purposes, and SGCP's historical financial statements before the Merger have been replaced with the historical financial statements of NSR LLC before the Merger in future filings.

On December 31, 2019 the Company entered into a restructuring as a holding company pursuant to Delaware General Corporation Law ("DGCL") §251(g) known as "the Delaware Holding Company Statute." In order to effect this restructuring, NSRI and NSR LLC each changed domiciles to the State of Delaware. Immediately thereafter, NSRI incorporated SGTM as its wholly-owned subsidiary and SGTM formed Sierra Gold Merger Corp., a Delaware corporation ("SGMC") as its wholly-owned subsidiary. Similarly, NSR LLC issued SGTM, 1,000 limited liability company Common Membership Units. Each of the four parties next executed an Agreement and Plan of Merger (the "Merger Agreement") as well as a Certificate of Merger which was filed with the Delaware Secretary of State on December 31, 2019 (collectively, the "Reorganization"). Pursuant to the terms of the Reorganization, NSRI merged down into SGMC with SGMC surviving as the successor to the reorganization, with all of the assets and liabilities of NSRI merging into SGMC and the separate existence of NSRI ceasing. The shares of SGTM and Membership Interests of NSR LLC, held by NSRI were canceled in the reorganization as part of the restructuring and the shares of NSRI became exchangeable for shares of SGTM on a one for one basis making SGTM the parent to both SGMC and NSR LLC as well as making SGTM the publicly-traded successor to NSRI. After obtaining FINRA approval on July 21, 2020, the Company changed its trading symbol to SGTM.

Effective January 31, 2020, the Company entered into a Business Combination Agreement (the "Mulch Acquisition") pursuant to which MM became our wholly-owned subsidiary. Under the Mulch Acquisition, all issued and outstanding common stock in MM were converted into an aggregate of 40,000,000 shares of the Company's common stock.

The Company closed on the acquisition of 100% of the membership interests in Day Dreamer Productions LLC ("DDP") on December 30, 2021. DDP is in the business of producing informational and promotional videography.

On August 9, 2022, the Company entered into a restricted sublicense agreement (collectively with the VRM Sublicense Amendment defined below, the "VRM Sublicense") with a soil technology company, VRM Global Holdings Pty Ltd ("VRM Global"), and its wholly owned subsidiary VRM International PTY LTD ("VRM International," together with VRM Global, collectively referred to herein together as the "Licensor"). The VRM Sublicense was amended on October 12, 2022 (the "VRM Sublicense Amendment"), to expand collaboration between the Company and Licensor and add the Licensor's wholly-owned subsidiary VRM Biologik Inc. (the "VRM Biologik"), among other things.

Pursuant to the VRM Sublicense, the Licensor granted the Company a restricted sub-license, pursuant to which the Licensor will allow the Company to use certain rights and entitlements and provide the Company with certain catalyst ingredients which will allow the Company to manufacture Humisoil® and XLR8® Bio (the "VRM Products"). These products are made using wood materials provided by the Company and the Licensor's technology and catalyst ingredients to be acquired by the Company from the Licensor or produced by the Company pursuant to the VRM Sublicense. In addition, the VRM Sublicense grants the Company the non-exclusive right to distribute the VRM Products throughout the U.S., the exclusive right to market and distribute these products in packaging of less than one cubic yard in addition to the right to exclusively manufacture the Licensor's catalyst ingredients in Florida, Washington State and the Caribbean (the "Exclusive Territory").

The Company agreed to sell to Licensor the VRM Products manufactured by the Company in amounts determined in the sole discretion of the Company at an agreed-on price. In addition, Licensor has agreed to assign to the Company rights held by the Licensor to repurchase the VRM Products manufactured by others within the Exclusive Territory and an option to acquire such rights outside such territory.

In addition, pursuant to the VRM Sublicense Amendment, the Company acquired from Licensor 10% of VRM Biologik, certain catalyst ingredients for future delivery to be used in the Company's production of Humisoil®, XLR8® Bio and other products, co-location of Licensor's production facilities with the Company's facilities in Florida and the state of Washington and development of an agreed plan to complete licensed manufacture of soil amendment catalysts in other strategic locations across the U.S. The catalyst ingredients to be acquired by the Company from the Licensor are expected to be sufficient to produce a minimum of 4,000,000 cubic yards of Humisoil® and its companion products that, along with other inputs, has the potential to generate revenue in excess of $987,000,000 at suggested retail prices. The total inventory value as provided for the VRM Sublicense Amendment is equivalent to the Company's potential revenue from the sale of these products.

The Term of the VRM Sublicense is for a period of ten years from October 12, 2022 with the option to renew it for a five-year period. The VRM Sublicense may be terminated by written agreement of the parties, or immediately by the Licensor if the Company amends or alters any of the inputs, outputs, products, marks, materials, media, recipes, or any of the processes as described in any of the manuals provided by Licensor to the Company except as permitted by the VRM Sublicense or appointment of a liquidator, administrator, receiver, receiver and manager, mortgagee in possession or other external controller appointed by virtue of the laws of insolvency or appointed by a creditor, by VRM Global or by the holder of security over the assets of VRM Global or an assignment of VRM Global's rights pursuant to the VRM Sublicense without the approval of VRM Global. VRM Global may terminate the VRM Sublicense if at any time the Company is in breach of any of the terms or conditions of the VRM Sublicense and it fails to remedy such breach within 30 days of notice from Licensor. In consideration of the grant of the VRM Sublicense, the Company initially issued to the Licensor, 500,000 shares of the Company's common stock upon execution of the VRM Sublicense and an additional 6,000,000 shares upon execution of the VRM Sublicense Amendment. Additionally, the Company agreed to pay the Licensor an aggregate of $1,000,000 in cash in two installments, with the first installment of $500,000 payable within 10 days of the Company's completing an initial public offering of its common stock (the "IPO") and the second payment due on the one year anniversary of the date of the IPO. In addition, pursuant to the VRM Sublicense Amendment, the Company agreed to issue the Licensor 6,000,000 shares of the Company's common stock and pay an aggregate of $7,200,000 payable in tranches of $3,600,000 by December 31, 2022 and two payments of $1,800,000 on each of May 31, 2023 and October 31, 2023. If the Company does not complete the IPO by February 4, 2023 or make the $500,000 payment within 10 days of such date, VRM Global may terminate the VRM Sublicense and, the Company will be obligated to pay the Licensor its then market rates for all inputs utilized by the Company in the production of Humisoil®, XLR8® Bio and other products produced using these inputs during the term of the VRM Sublicense.

The Company, Day Dreamer Productions, LLC ("DDP") and ACCEL Media International LLC, FMW Media Works LLC (collectively, "ACCEL") entered into a Corporate Communications Services Agreement dated as of October 4, 2022 (the "ACCEL Agreement"). Pursuant to the terms of the ACCEL Agreement, ACCEL agreed to provide the Company with a variety of television, production, promotional media, media analysis, and media procurement to assist the Company in generating positive media awareness about its business. The term of the ACCEL Agreement is for a period of five years and any breach of the agreement may be remedied by injunctive or other equitable relief and specific performance. Neither party has a right to terminate the agreement prior to its expiration. The promotional media services provided by ACCEL are expected to have a market value of no less than $30,700,000. In addition, the ACCEL Agreement requires ACCEL to exclusively rely on and use DDP to offer, create and distribute any custom 30 minute or longer program for all ACCEL in-house video production and marketing content that is tendered to ACCEL customers.

In consideration for the services to be provided by ACCEL, the Company issued to ACCEL 3,500,000 shares of unregistered Common Stock, an option to acquire 5,000,000 shares of unregistered Common Stock at an exercise price of $2.00 per share (the "ACCEL Stock Option") and a warrant to purchase up to 2,000,000 shares of Common Stock at an exercise price of $1.00 per share (the "ACCEL Warrant"). The ACCEL Option expires three years after the date of issuance and the ACCEL Warrant expires 90 days after the date of issuance. In the event the ACCEL Warrant is exercised in whole or in part, then upon each exercise thereof, if any, the Company agreed to issue to ACCEL a three year option to acquire a number of shares of Common Stock equal to the number of shares of Common Stock acquired by ACCEL upon exercise of the ACCEL Warrant, at an option exercise price of $2.00 per share. The exercise price of the ACCEL Stock Options and the ACCEL Warrants is subject to proportional adjustment in the event of stock splits, stock dividends and similar corporate events.

ACCEL agreed that it will not, directly or indirectly, for a period of one year after October 4, 2022, lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of (or enter into any transaction or device that is designed to, or could be expected to, result in the disposition by any person at any time in the future of), directly or indirectly, any of the shares of Common Stock issued to ACCEL pursuant to the ACCEL Agreement, the ACCEL Stock Option or the ACCEL Warrant.

The ACCEL Agreement, ACCEL Stock Option and ACCEL Warrant also contains additional customary covenants, representations and warranties.

The address of our principal place of business is 24200 CR-561, Astatula, FL 34705.

**DESCRIPTION OF THE BUSINESS**

**Overview**

The Sustainable Green Team is a provider of environmentally conscious solutions in the arbor care, disposal, recycling, mulch and manufactured soil amendments business. The Company is a collector of tree debris ("feedstock"), throughout the southeast region of the United States. The Company beneficially-reuses feedstock to manufacture wood-based mulch and lumber products that are sold nationwide. The Company has a division that manufactures and sells proprietary mulch colorants and coloring equipment.

The Sustainable Green Team operates as a holding company with two operating subsidiaries:

● *<u>National Storm Recovery, LLC</u>* ("NSR"), a Delaware LLC, operating as "Central Florida Arborcare", provides arbor care, tree trimming, and storm debris clean-up and disposal services, primarily in the southeastern United States with nationwide capabilities; and

● *<u>Mulch Manufacturing, Inc.</u>* ("MMI"), an Ohio corporation, manufactures mulch, lumber and soil products in the United States midwest and southeast regions, and the Ohio Valley. MMI has nationwide distribution channels.

As illustrated below, the Company's vertically integrated business begins with the collection of feedstock through NSR. Feedstock is then beneficially-reused by MMI, for recycling and manufacturing of lumber and organic mulch. We package our products and sell them to retailers, wholesalers, landscapers, and garden centers nationwide. The diagram also includes soil products that we expect to begin manufacturing and selling in 2023.

The Company also currently holds all of the issued and outstanding capital stock of a non-operating direct subsidiary, Sierra Gold Merger Corp., a Delaware corporation, which was formed for the sole purpose of facilitating the restructuring of the Company as a holding company pursuant to Delaware General Corporation Law ("DGCL") §251(g) known as "the Delaware Holding Company Statute." In addition, the Company indirectly holds through MMI all of the issued and outstanding capital stock of a non-operating subsidiary, Rose Transport Inc., an Ohio Corporation, which was utilized for transporting feedstock and packaged mulch between locations owned and operated by MMI.

![](form10-12ga_001.jpg)

We process feedstock through several processing facilities we own that are strategically located in the southeast region of the United States. The Company owns sawmills in Homerville, Georgia; Jasper, Florida; and Beaver, Washington. The Homerville sawmill produces cypress bark for our mulch product lines, as well as marketable lumber. We closed on the acquisitions of the Jasper and Beaver sawmills in December 2021. We currently purchase our pine bark from other sawmills in addition to pine bark produced at the Jasper mill that commenced limited production of lumber and mulch in October 2022. We expect to ramp up both lumber and mulch production at the Jasper mill in the first quarter of 2023 and the Beaver mill once a funding source has been secured and we have completed a retrofit of the sawmill equipment at that location. With regard to our needs for additional working capital to complete these expansion initiatives, the estimated costs to complete the ramp up in production at the Jasper mill is included in our disclosure regarding anticipated capital expenditures. Please see "Management's Discussion & Analysis of Financial Condition and Results of Operations - Material Cash Requirements" and "Risk Factors - We will require additional funding for our growth plans, and such funding may result in a dilution of your investment."

The MMI division also creates proprietary mulch dyes, colorants, and mulch processing equipment. We manufacture a range of mulch products with different textures and colors for specific landscape needs using our coloring technology. For example, MMI's capabilities were instrumental in developing our innovative line of colored mulches that we market under our Nature's Reflections™ brand, including our patented Softscape® products. The Company also sells to other companies that produce landscaping materials colorants and Cheetah brand coloring equipment that it manufactures.

**Industry Overview**

The Sustainable Green Team's vertically integrated product categories operate in five interrelated divisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) tree care and removal services, (2) mulch products, (3) lumber, (4) manufactured soils, and (5) colorants and coloring equipment.

*Tree Care and Removal Industry*

Over the last five years, favorable macroeconomic trends, higher levels of construction activity and extreme weather conditions have increased demand for tree care and green waste removal. Housing starts have been growing at historic rates driving demand for these services. Residential construction is forecasted to increase at least through 2028. Extreme weather events across the United States have led to high demand for tree care and green waste removal. Restoration following extreme weather events also creates demand for products like lumber and mulches.

The market for tree trimming services in the United States has grown at a compound annual growth rate (CAGR) of 9.1% for the past five years, which is faster than the overall U.S. economy. The U.S. tree trimming service market is expected to generate $29 billion in revenue in 2022, according to research published by IBIS World in January 2022.

*Mulch Industry*

Over the past decade, demand has been increasing for pine needle, pine bark, hardwood, and cypress mulches world-wide. Many landscape venues, across publicly and privately owned land, such as gardens, parks, schools, and resorts, are converting to mulching materials, manufactured soils, and improved environmental practices to achieve cost savings. Manufactured products can be used as environmentally safe substitutes for traditional ground covers, such as grass and other plants, that require costly and wasteful watering. Traditional ground covers also require fertilizers and pest control products that are expensive and often harmful to the environment. There is also a trend towards environmentally friendly mulch products among homeowners and other retail customers.

According to statistics gathered by AmeriMulch, the color-enhanced landscape mulch market grew to 55 million cubic yards in 2015, from just 5 million yards in 2005. According to AmeriMulch, some 1,070 global mulch producers produced over 53 million yards of mulch in 2019. Further, according to HomeAdvisor.com, the national average cost of a cubic yard of mulch is roughly $30, suggesting the 2019 U.S. retail mulch market was roughly $1.6 billion. Looking forward, Grandview Research, Inc. forecasts the North American Lawn & Gardening Consumables Market, which includes mulch, to grow to $25.94 billion in 2027, from $20.13 billion in 2020. This represents a 3.6% CAGR. Extrapolating the 3.6% CAGR to the North American Mulch market suggests that market could grow to approximately $2.1 billion in 2027.

*Lumber Industry*

The historic demand for lumber was triggered by a perfect storm of factors set off during the pandemic. When COVID-19 broke out in spring 2020, sawmills cut production and unloaded inventory in fears of a looming housing crash. The crash did not happen—instead, the opposite occurred. Americans rushed to home improvement stores to buy materials for do-it-yourself projects. Favorable interest rates facilitated a housing boom. That boom, which was intensified by a large number of millennials starting to hit their peak home buying years, dried up housing inventory. This sent buyers in search of new construction. Home improvements and construction require significant amounts of lumber, exceeding the supply available from sawmills. The market for wholesale lumber in the United States is predicted to generate $131.6 billion in revenue in 2022, according to research published by IBIS World in August 2021. Between 2017 and 2022, the market grew by at CAGR of 6.2%.

*Manufactured Soil Industry*

Manufactured soil refers to a composition of different soils, soil components and other like materials used for various purposes in horticulture, gardening, and other applications such as site restoration. The primary purpose of manufactured soil is to modify and, in most cases, enhance the properties of soil to meet specific needs. The market continues to gain momentum with increasing development and innovations driven by increased demand for organic gardening, a growing market for horticulture, a growth in lawn and garden consumables, and government support and initiatives. The market for the soil treatment market in the United States is predicted to generate $58 billion in revenue in 2028, according to research published by Zion Market Research in August 2021. Between 2021 and 2028, the market is expected to grow by at CAGR of 5.7%.

*Colorants Industry*

Color treated mulch is appealing to homeowners that want to customize their landscaping and gardens. The demand for mulch treatment materials, including color tint and preservatives, has grown steadily. Therefore, we believe mulch manufacturers with the ability to treat and color process lower grades of wood could have a significant competitive advantage. The colorants market was valued at $34.7 Billion in 2021 and is projected to reach $98.3 Billion by 2030, according to research published by Precedence Research in July 2022. Between 2021 and 2030, the market is expected to grow by at CAGR of 12.27%.

**Our Products and Services**

Our tree services and storm recovery services collect some of the feedstock that we use to manufacture our products. The feedstock is processed at the recovery sites and the sawmills that we own to produce marketable lumber and the materials for our innovative mulch products. Our products include a variety of attractive, next-generation mulches that we sell to distributors, big box stores and other retailers for use by landscapers, installers, and other consumers. The vast majority of our revenues are derived from our manufacturing and sales of mulch, and we expect that to continue for the near future. We also wholesale manufactured soil products manufactured by other companies and expect to begin manufacturing our own soil products in 2023.

*Tree Care and Removal Services*

Our subsidiary NSR, operating as "Central Florida Arborcare", provides tree maintenance, disaster recovery, debris removal, and disposal services to residential, commercial, and government customers. The Company's customers include all levels of government, from federal disaster recovery projects to county schools. We have multi-year contracts with hundreds of municipal properties in Florida. We are paid by other companies in the disaster recovery, tree care and waste management industries to haul away and dispose of tree wood and debris.

In addition to the revenue generated by the services NSR provides, the feedstock we collect is valuable to our manufacturing operations. It provides us with raw material that our other lines of business use to produce mulch and soil products.

*Mulch Products*

In January 2020, the Company acquired Mulch Manufacturing, Inc., a company with decades of experience in manufacturing mulch products. Through the MMI acquisition, we were able to diversify our product lines. We now manufacture a wide variety of mulch products, including cypress and pine mulches, in an array of colors for many different applications. For example, our playground chips are used by schools, parks, and other play areas. They are manufactured in several colors and they are certified to be safe by the International Play Equipment Manufacturer's Association (IPEMA).

We sell our mulch products to wholesalers, retailers (including garden centers, nurseries, hardware stores, supermarkets and convenience stores), and direct to customers in the landscaping industry.

*Lumber Products*

The feedstock we collect is processed into lumber at the sawmill we own in Homerville, Georgia. We sell this cypress lumber wholesale to log home builders, specialty lumberyard outlets and backyard fence installers and direct to retail customers looking for durable and aesthetically pleasing building material resistant to rot and insects.

In December 2021, we closed on the acquisitions of sawmills in Jasper, Florida and Beaver, Washington. We began limited production of pine bark and marketable lumber at the Jasper mill in the third quarter of 2022, with the Beaver mill expected to begin production in 2024 once a funding source has been secured and we have completed a retrofit of the sawmill equipment at that location.

*Manufactured Soil Products*

We currently resell manufactured soil products produced by third parties. We sell these products wholesale to big box retailers and to retail customers in the landscaping industry.

In 2021, the Company purchased an automated soil blending system and production line which is being installed at our Jacksonville, Florida facility. This equipment, along with the raw materials we recently received from VRM Biologik pursuant to the terms of the VRM Sublicense, allows us to blend and produce our own manufactured soil products. Utilizing this equipment and and recently received raw materials, we commenced production of HumiSoil® in February 2023 and several proprietary blends of manufactured soil products which we expect to begin shipping to our customers in the third quarter of 2023. We expect to have the same channels of distribution for the soils we will be manufacturing that we have for our current reselling activities.

*Colorants Products and Machinery*

The Company manufactures colorants to dye its cypress and pine mulches. Customers can choose from a wide range of appealing colors for their landscaping needs. We also sell colorants for use by other third-party manufacturers of landscape materials.

We are actively pursuing locally sourcing raw materials for colorants. By locally sourcing, we mitigate the environmental impact of our operations and eliminate shipping expenses and tariffs associated with importing materials from China.

**Our Vision and Competitive Advantages**

Our wholesale customers work with us due to our ability to provide a broad array of products for landscaping needs. Our products include over two dozen varieties of mulches in different textures and colors, and various soils for different uses such as potting, garden and blends that enhances the organic matter at the applied location. We operate with a high level of expertise and a focus on customer retention through responsiveness and reliability. We have grown our workforce and now have over 200 employees in season.

We view ourselves as a "one-stop-shop" solutions provider for superior quality mulch products. This ability to provide more than one style of mulch product is in direct response to the landscape industry tastes and preferences to have various wood fiber sources, such as pine or cypress, color, texture, and an environmentally friendly product line. We devote substantial resources to research and development, having developed proprietary products in the mulch, colorant and colorant machine manufacturing segments of our business.

We believe our vertically integrated business model sets us apart from our competitors because we provide the services and facilities necessary to collect our own feedstock. We have expanded our operations and we now collect feedstock in three regions and sell our products in 33 states. We have established relationships with four big box retail customers — Lowe's Home Improvement, Menard's, 7-Eleven, and Circle-K — and more than 400 other customers.

We have consistently expanded our product lines in innovative ways. We hold over 20 trademarks and a patent on our innovative Nature's Reflections™ Softscape®.

We have also focused on cost containment and entered into direct rail contracts with CSX and Norfolk Southern to transport our manufactured products.

*Vertical Integration*

We believe that our vertically integrated, environmentally friendly business model provides us with substantial competitive advantages in the industries in which we operate. These competitive advantages of our business model include:

● lower disposal costs as an arborist and storm recovery service provider because we do not pay landfills to accept our feedstock as waste;

● lower manufacturing costs for mulch, lumber and manufactured soil products due to plentiful multi-channel sources for our feedstock;

● cost advantages due to geographic proximity of our feedstock collection and end-use consumers;

● cost advantages through our long-term direct (not brokered) rail transport and trucking contracts, improving our efficiency and logistics; and

● improved quality controls that position the products to compete effectively in the wholesale and retail markets.

*Environmentally Friendly*

The Company's ethos is rooted in environmental sustainability. We begin with the collection of tree debris from our tree services and lumber divisions which would otherwise end up in landfill sites. The feedstock collected is then moved through the processing division for recycling and manufacturing into lumber and attractive, next-generation mulches that we sell to wholesalers, retailers, landscapers, installers, and garden centers.

*Our Executive Leadership Team*

Anthony Raynor is the founder and CEO of The Sustainable Green Team. His vision is supported by a strong operational team, especially after the acquisition of MMI in 2020. Mr. Raynor has a focused business strategy to identify areas to manage costs and enhance quality, to build out supply chain security through targeted acquisitions and to empower his leadership team to identify areas of improvement for the Company. We believe these efforts are a driving factor of our success.

*Recent Expansion and Growth*

The Company plans to expand its operations through a combination of organic growth, strategic acquisition, and through its partnership with a leading waste disposal company. We believe executing on our strategy will result in rapid growth and geographic expansion.

Since inception, we have actively grown and vertically integrated by acquiring additional companies and assets. We have completed the acquisition of multiple companies since our formation. In January 2020, we acquired Mulch Manufacturing, Inc. We announced the strategic acquisition of a marketing firm, Day Dreamer Productions, LLC, in December 2021. The Founder, Victor Spangler, became our Chief Marketing Officer (CMO) and continues to serve as President of Day Dreamer Productions, LLC. This acquisition enhances our previous in-house marketing resources. In December 2021, we acquired sawmills in Jasper, Florida and Beaver, Washington. The addition of these mills is expected to increase our sawing capacity to over 100 million board feet of lumber annually and significantly expand our mulch manufacturing.

On July 1, 2019, NSR LLC and Vista Landfill, LLC, a Waste Management Inc. company ("Waste Management") entered into a Contractor Agreement which was amended on December 3, 2021 (collectively, the "Contractor Agreement"). Waste Management is a one of the largest disposal waste companies that own landfills throughout the United States. The Contractor Agreement permits the Company to use two of Waste Management's sites, one in Apopka, Florida and the other in Winter Garden, Florida, where we collect, store, grind, screen, color, and bag our own top quality mulches for distribution. The Contractor Agreement requires us to store and grind at our cost and expense an agreed amount of vegetative waste belonging to Waste Management at certain agreed on prices Waste Management pays us. We are obligated to provide Waste Management with certain regulatory reports regarding the amounts of materials received and processed at these sites and to comply with all Federal, state and local regulations regarding vegetative waste processing and maintain liability insurance in amounts provided for in the Contractor Agreement. In addition to any other rights or remedies Waste Management may have under applicable law, in the event we fail to perform our obligations under the Contractor Agreement for a period of five days (unless due to an event of Force Majeure as defined in the agreement), Waste Management has the right to terminate all or part of the Contractor Agreement and to take over the Company's obligations under the agreement or have such work by another person at the Company's expense. Waste Management is permitted to further terminate the Contractor Agreement on thirty days prior written notice with or without cause. The Company is obligated to relocate its activities at the sites in the event Waste Management the areas occupied by the Company are needed by Waste Management for its operations. In the event the parties are unable to resolve any issues regarding a relocation, they are obligated to use good faith efforts to resolve the issues and if they are unable to do so, either party may terminate the agreement within a reasonable time. In addition, we pay rent for the use of the use of the sites, a fee for each ton of ground vegetative waste leaving the sites and for our use of the electricity we consume in our operations at these sites. The Contractor Agreement expires on June 30, 2025.

We use the vegetated waste that Waste Management collects at these sites as feedstock for the production of the mulch we process and sell. We also use the Waste Management sites for feedstock storage for National Storm Recovery. We believe that our rights under the Contractor Agreement helps us execute our business strategy because it provides us with significant efficiencies, such as pre-approved zoning, lower operational costs, access to a substantial amount of additional raw materials, and a faster production cycle. We believe our continued relationship is desirable for Waste Management because feedstock would take many years to decompose in a landfill and we can supply them with finely processed biomass that is beneficial to their landfill operations.

We have also diversified our distribution channels for our products. We have grown our distribution, which now include many retail stores, including Lowe's Home Improvement, Menard's, 7-Eleven, Circle-K, ACE Hardware and other retail chains.

We have been communicating with a myriad of companies in the mulch, waste management, and tree trimming industries to expand operations through additional strategic acquisitions. Several of these discussions have progressed to non-binding letters of intent to acquire companies or their assets.

On August 9, 2022, the Company entered into the VRM Sublicense and an amendment to that agreement on October 12, 2022 which will enable the Company to produce a soil amendment product, HumiSoil® and XLR8® Bio. See Item 1. Business - Corporate History and Item 1. Business - Description of the Business - Diverse Products Offerings.

On October 4, 2022, the Company entered into the Corporate Communications Services Agreement with ACCEL to procure a variety of television, production, promotional media, media analysis, and media procurement to assist the Company in generating positive media awareness about its business and to expand DDP's video production and marketing business to ACCEL customers. See Item 1. Business - Corporate History.

*Management's Strategy Future Expansion and Growth*

Our core growth strategy includes:

<u>Building Upon Strong Customer and Supplier Relationships to Expand Organically</u>

Our national footprint and broad supplier relationships, combined with our regular interaction with a large and diverse base of over 450 customers, make us an important link in the supply chain for landscape products. Our suppliers benefit from us being a single point of contact for improved production planning and efficiency, and our ability to bring new product launches quickly to market on a national scale. We intend to continue to increase our size and scale in customer, geographic and product reach, which we believe will continue to benefit our supplier base. Our customers in turn benefit from our local market leadership, talented associates, high quality products, broad product offering and high inventory availability, timely delivery and complementary value-added services. We will continue to work with new and existing suppliers to maintain the most comprehensive, high quality product lines for our customers at competitive prices and enhance our role as a critical player in the supply chain. As we continue to grow, we believe our strong customer and supplier relationships will enable us to expand our market share in the landscape supplies industry.

<u>Growing at the Local Level</u>

The vast majority of our customers operate at a local level. We believe we can grow market share in our existing markets with limited capital investment by systematically executing local strategies to expand our customer base, increase the amount of our customers' total spending with us, optimize our network of locations, coordinate multi-site deliveries, partner with strategic local suppliers, introduce new products and services, increase our share of underrepresented products in particular markets and improve sales force performance. We currently offer our full product line in only 24% of the United States.

<u>Pursuing Value-Enhancing Strategic Acquisitions</u>

Through recently completed strategic acquisitions, including the addition of sawmills in 2021 located in Jasper, Florida and Beaver, Washington, we have added new markets, new product lines, talented associates and operational best practices. In addition, we increased our sales by introducing products from our existing portfolio to customers of newly acquired companies. We intend to continue pursuing strategic acquisitions to grow our market share and enhance our local market leadership positions by taking advantage of our scale, operational experience and acquisition know-how to pursue and integrate attractive targets. We believe we have significant opportunities to add product categories in our existing markets through acquisitions. In addition, we are reviewing attractive new geographic markets for expansion through acquisitions. We will continue to apply a selective and disciplined acquisition strategy to maximize synergies obtained from enhanced sales and lower procurement and corporate costs.

<u>Executing on Identified Operational Initiatives</u>

We have undertaken significant operational initiatives, utilizing our scale to improve our profitability, enhance supply chain efficiency, strengthen our pricing and category management capabilities, streamline and refine our marketing process and invest in more sophisticated information technology systems and data analytics. In addition, we work closely with our local area team leaders to improve sales, delivery and branch productivity. Although we are still in the early stages of these initiatives, they have already contributed to improvement in our profitability, and we believe we will continue to benefit from these and other operational improvements.

<u>Continuing to Value and Reward Our Employees</u>

We believe our associates are the key drivers of our success, and we aim to recruit, train, promote and retain the most talented and success-driven personnel in the industry. Our size and scale enable us to offer structured training and career path opportunities for our associates, while at the area and branch level we have built a vibrant and entrepreneurial culture that rewards performance. We promote ongoing, open and honest communication with our associates to ensure mutual trust, engagement and performance improvement. We believe that high-performing local leaders coupled with creative, adaptable and engaged associates are critical to our success and to maintaining our competitive position, and we are committed to being the employer of choice in our industry

<u>Relationships with Additional Suppliers of Feedstock</u>

We competitively source our feedstock effectively in a fragmented tree care industry, primarily from small businesses, because we provide arbor care and landscape contractor businesses opportunities to unload and profit from feedstock that they would consider to be waste. We believe we are the largest customer for many arborists across the southeastern region of the United States. Sourcing feedstock competitively and broadly allows us to keep the cost of our products highly competitive.

Our strategic relationship with Waste Management, Inc. pursuant to the Contractor Agreement provides us with cost savings that has saved us years of time it would have taken for acquiring permits and developing the valuable relationships they have developed. We utilize their site for collection of tree debris as well as ability to set up a production facility with coloring and bagging of mulch. In addition, in February 2023, we began production of HumiSoil on a portion of the land we occupy pursuant to the Contractor Agreement. In addition to the material we process for Waste Management pursuant to this agreemente, we are paid to collect the tree debris from other sources and use it as inventory for production of mulch products sold in bulk and bagged, unlike some competitors that have to purchase their feedstock.

*<u>Customer Relationships</u>*

The Company's customers include governmental, residential, and commercial customers. The Company has a diversified customer base consisting of more than 450 customers as of October 1, 2022. Our top 10 customers accounted for approximately 44% of our product sales for the nine months ended October 1, 2022, with the largest five customers at 21%, 5%, 3%, 3% and 3%, respectively, of our product sales for the nine months ended October 1, 2022 and the other five customers each 2% or less of our product sales for the nine months ended October 1, 2022. Therefore, our sales are not concentrated in any single or a few customers. Our typical customer is a large, national retail chain that sells landscaping products.

*<u>Diverse Products Offerings</u>*

We have a wide array of mulch product offerings making our products competitive for many different purposes. In the mulch and manufactured soil industries, we introduced new mulch products in 2021, including our patent-protected Nature's Reflection™ Softscape®. Our Softscape® mulch is more uniform in shape and lighter in weight than traditional mulches, allowing water and air to penetrate soil and reach plant roots, while also inhibiting weed growth at the surface. We are continually working on new products and lines of business, including ways to diversify our coloring and pigment products.

Our current line of products include:

● *Cypress Rose*: This is our flagship product and our most popular mulch sold, a premium 100% cypress mulch.

● *Nature's Reflections™ Softscape®:* Nature's Reflections patented Softscape® mulch has an impressive 4-year color retention. It has the look of pine straw but will not blow or wash away. Softscape is lightweight, covering 50% more area and allowing for water penetration of soil which keeps plants healthy but also inhibits weed growth.

● *Cypress Fargo*: This is also made from 100% cypress. This product is carefully debarked from red pond cypress logs.

● *All Bark Cypress Royal*: A premium product in the mulch industry which is made only from the bark of the Cypress log.

● *Natural Pine Straw*: Southern pine straw (needles) have been a staple southern mulch, used for years by homeowners and landscapers.

● *All Bark Cedar*: Super Grade "A" mulch made from 100% cedar trees which is carefully shredded to a very soft texture.

● *Color Enhanced Hardwood*: This mulch is made from hardwood fiber products. Natures Reflections™ colorant gives the mulch a vibrant color.

● *Path 'N Play Chips*: These chips are used primarily for playgrounds and schools. They are made from 100% Virgin Forest products with no foreign materials or chemicals. They are certified to be safe for play areas by the International Play Equipment Manufacturer's Association (IPEMA)

● *Humisoil® & XLR8® BIO*: technology uses any vegetative green waste or compostable material, including wood material such as sawdust or chips or grindings from wood material, and applies a catalyst to stimulate natural reactions that manufactures and stores soil moisture. The 100% organic material is converted into HumiSoil®, a valuable soil amendment, reducing the need for fertilizers and chemicals while increasing production of agricultural products, including livestock grazing on pastureland *.* 

*<u>Private Label Mulch and Soil Products</u>*

Our ability to custom color and private label our mulch products is another source of flexibility valued by our industry and one that presents growth opportunities with large retail stores and other parties that are larger than ourselves. We expect to expand our private label product offerings in 2023 when we begin manufacturing our own soil products pursuant to the terms of the VRM Sublicense. See Item 1. Business - Corporate History).

*<u>Cheetah™ Coloring Systems</u>*

*<u>Long-Term Direct Transportation Contracts</u>*

The Company has directly negotiated with CSV and Norfolk Southern Railroads to haul high volume loads of our products for distribution across the United States. We believe that these contracts are more favorable than those of our principal competitors, which are typically negotiated through brokers. In fact, other companies in our industry have outsourced their shipping needs to us because of our relationships with rail companies and long-term contracts on favorable terms to the Company.

**Facilities**

*Corporate Headquarters, Warehouse and Retail Store in Astatula, Florida*

On December 1, 2020, the Company purchased a 100-acre parcel of property located in Lake County, Astatula, Florida. The mixed-use property includes 5,000 square feet of office space, which serves as our headquarters, a warehouse, and a retail store, providing us with ample room for expansion. The property is used for tree debris collection, mulch manufacturing, and soil composting. At the on-site retail store, we sell over 20 different varieties of mulch directly to consumers.

*Collection, Manufacturing and Bagging Site in Apopka, Florida*

Our Apopka, Florida facility recycles wood and serves as a home-base for our collection equipment in the Florida region. The facility also manufactures mulch and operates two bagging lines. It has on-site coloring capabilities to produce a variety of different mulch products.

*Storage and Mulch Manufacturing at Waste Management, Inc. Landfills in Apopka, Florida and Winter Garden, Florida*

Pursuant to the Contractor Agreement, we use two of Waste Management, Inc.'s sites, one in Apopka, Florida and the other in Winter Garden, Florida.

*Mulch Manufacturing Production and Storage Facility in Callahan, Florida*

Our Callahan plant has been in operation since 1989. At this plant we manufacture cypress, hardwood pine, Nature's Reflection™ Softscape® and colored mulch. The plant operates a bagging line for these products. This property includes 100 acres of storage.

*Colorant Manufacturing, Bagging Line Storage and R&D Facility in Jacksonville, Florida*

The 100,000 square feet Jacksonville site operates a manufacturing plant, our retail store and collection site. At the Jacksonville site the Company manufactures colorants and operates a bagging line. The retail sales provide customers with access to many of our products. The property is also our collection site for feedstock and operates as our R&D facility for colorants.

*Sawmills*

<u>Homerville, Georgia</u>. The Homerville Sawmill is a 50-acre property located in Homerville, Georgia, operating since 1981, that processes cypress lumber as well as residual products, including all bark mulches, playground chips and saw dust. The mill currently operates as the nation's only mill to exclusively saw cypress with a capacity to saw 6,500,000 board feet of cypress lumber annually and is being retrofitted with an optimized edger and optimized gang saw that will increase its capacity to 10,000,000 board feet. The mill currently produces lumber in a wide range of different lengths and widths for many different uses. The mill also has a drying capacity of 3,108,000 board feet annually. The mill also has milling capabilities and produces more than 2500 trucks of our mulch products annually. In 2022, the Company completed upgrades to this mill to optimize operations that included an optimized edger saw, an optimized gang saw and a robotic palletizer.

<u>Jasper, Florida</u>. In December 2021, we closed on an acquisition of a sawmill in Jasper, Florida. The Jasper Mill saws southern yellow pine lumber as well as residual products, including pine bark, pine chips, pine dust, and pine shavings. We expect to ramp up both lumber and mulch production at the Jasper mill in the first quarter of 2023 subject to working capital availability.

<u>Beaver, Washington</u>. In December 2021 and in March 2022, we closed on an acquisition of a sawmill including certain real estate in Beaver, Washington. The Beaver mill is approximately 100,000 square feet. It has over $8 million in existing infrastructure. It will be capable of producing 100 million board feet of lumber per year once retrofitted for our production. The Company has already engaged experts in mill optimization, design, and buildout for the retrofit of the mill and are in the preliminary planning phase for this project. We won't commence any expansion work until a funding source has been secured. The planned operations at the Beaver Washington facility are expected to enable us to launch our initial operations on the West Coast, increase our lumber, mulch, woodchip and manufactured mulch production, expand into new markets and supplement our product offerings in the west coast region of the United States. The mill is located in a federally-approved Economic Opportunity Zone and it is eligible for certain tax credits. Our ownership and operation of the mill is supported by the nearby municipal and state governments.

**Equipment**

The Company uses a variety of heavy equipment from boom cranes, pickup trucks, bucket trucks, grapple trucks, grinders, chippers, front-end loaders, excavators, log loaders, disc and trommel screens, de-barkers, forklifts, semi-trucks and trailers and skid steer loaders, automated bagging and palletizing/stretch wrap systems, sawmill, batch blending system, and coloring machines in its operations.

The majority of the equipment used by the Company (and its operating subsidiaries) is owned outright by the Company, but the Company does lease certain equipment. The leases for such equipment contain terms that are customary in the industries in which the Company and its subsidiaries operate in for such equipment.

***Sources and Availability of Materials***

We obtain feedstock for our mulch production from a variety of sources that include our arbor care and disposal services divisions, our Jasper sawmill as well as locally sourced from other sawmills and importing raw materials for colorants from China. In addition, we obtain certain raw materials for our soil amendment products from VRM Global pursuant to the VRM Sublicense, as well as electricity and other local utilities. All of the raw materials we use in the production of our products are in abundant supply in China and the United States. Any significant interruption or negative change in the availability or economics of the supply chain for key inputs, such as the raw material cost of feedstock or colorants, could, however, materially impact our business, financial condition, results of operations or prospects. To the extent we are unable to obtain sufficient quantities of feedstock from our arbor care and disposal services divisions, we intend to purchase feedstock and colorants on a purchase order basis from local suppliers, or in the case of colorants from Chinese suppliers, at market prices based on our production requirements. In addition, we believe there will be adequate availability of electricity needed to power our Cheetah™ coloring machines and operate our sawmill production facilities. Consequently, our management believes that we will have access to a sufficient supply of the key inputs for the foreseeable future.

**Company Contracts**

In October 2021, the Company renewed a July 2019 agreement with Waste Management, Inc. through July 2025. This agreement allows the Company to continue using two of Waste Management, Inc.'s sites, one in Apopka, Florida and the other in Winter Garden, Florida. The Company uses these sites for tree removal and feedstock storage for NSR's disaster recovery services. The Company also obtained lease rights to permit it to manufacture and bag mulch on the properties. It further provides access to Waste Management Inc.'s feedstock that it collects.

On August 14, 2019, the Company was awarded a three-year contract for emergency debris and tree removal services in Oakland, Florida. On December 6, 2022, the parties agreed to extend the term of this agreement for a period of two years.

On September 10, 2019, the Company was awarded, as the primary contractor, the tree trimming and removal services contract for the Orange County, Florida public school system. The agreement has a three-year term and covers 267 properties, including schools, administrative sites, technical colleges, and maintenance facilities.

On October 2, 2019, the Company signed an agreement to purchase certain equipment assets, including a dual line mulch bagging system, a mulch coloring system, a screening plant with regrind wood hog and a radial stacking conveyor. The equipment is expected to be installed at the Company's newly opened wood debris recycling facility, located within Waste Management Inc.'s Vista Landfill in Apopka, Florida.

On October 9, 2019, the Company took delivery of several new wood debris recycling equipment units to be used at its newly opened wood debris processing facility located within Waste Management Inc.'s Vista Landfill in Apopka, Florida. The equipment consists of a new horizontal grinder and new excavator with continuous rotating grapple supported by a new wheel loader.

In 2020, we entered into contracts to package Old Castle Law and Garden's mulch for distribution in the Midwest, which was later increased in September 2021 to 1.5 million bags of mulch. We expanded our relationship with Menard's, in which they agreed to a 25% location increase for our distribution. We entered into agreements to sell mulch to the Kroger Company; Circle K (which was expanded in November 2020. We also entered into contracts for disaster and storm recovery for Sulphur, Mississippi and Vero Beach, Florida.

In 2021, we renewed our contract to sell mulch to Lowe's Home Improvement, one of our largest customers, through 2023. The company expanded its relationship with Menard's which increased orders for our mulches by 50% for 2022. The company also entered into additional agreements to sell mulch to Circle K and Kroger.

In September 2021, the Company acquired a fully automated soil manufacturing and blending production system that is currently being installed in our Jacksonville, Florida facility. This equipment is expected to be operational in the fourth quarter of 2022.

In December 2021 and March 2022, the Company closed on the acquisitions of sawmills in Jasper, Florida and Beaver, Washington, which is expected to significantly expand our sawing capabilities and geographic reach once these mills ramp up expected production.

In February 2022, the Company entered into an agreement with Orange County, Florida to provide tree trimming and related services for roads and drainage for up to $5.7 million over the three year term of contract based on purchase orders if and when issued by Orange County during the contract term.

**Corporate Information**

We are currently incorporated and in good standing in the State of Delaware. Our principal executive offices are located at 24200 CR-561, Astatula, Florida 34705, and our telephone number is (407) 886-8733. Our website address is www.sustainablegreenteam.com. The information contained on our website is not incorporated by reference into this registration statement, and you should not consider any information contained on, or that can be accessed through, our website as part of this registration statement or in deciding whether to purchase our common shares.

**REGULATORY**

We are subject to various federal, state and local laws and regulations, compliance with which increases our operating costs, limits or restricts the services and products provided by our operating segments or the methods by which our operating segments offer, sell and fulfill those services or products or conduct their respective businesses, or subjects us to the possibility of regulatory actions or proceedings. Noncompliance with these laws and regulations can subject us to fines or various forms of civil or criminal prosecution, any of which could have a material adverse effect on our reputation, business, financial position, results of operations and cash flows.

These federal, state and local laws and regulations include laws relating to wage and hour, immigration, permitting and licensing, workers' safety, tax, healthcare reforms, collective bargaining and other labor matters, environmental, federal motor carrier safety, employee benefits and privacy and customer data security. We must also meet certain requirements of federal and state transportation agencies, including requirements of the U.S. Department of Transportation and Federal Motor Carrier Safety Administration, with respect to certain types of vehicles in our fleets. We are also regulated by federal, state and local laws, ordinances and regulations which are enforced by Departments of Agriculture, the Environmental Protection Agency and similar government entities.

***Employee and Immigration Matters***

We are subject to various federal, state and local laws and regulations governing our relationship with and other matters pertaining to our employees, including regulations relating to wage and hour, health insurance, working conditions, safety, citizenship or work authorization and related requirements, insurance and workers' compensation, anti-discrimination, collective bargaining and other labor matters.

We are also subject to the regulations of U.S. Immigration and Customs Enforcement ("ICE"), and we are audited from time to time by ICE for compliance with work authorization requirements. In addition, some states in which we operate have adopted immigration employment protection laws. Even if we operate in strict compliance with ICE and state requirements, some of our employees may not meet federal work eligibility or residency requirements, despite our efforts and without our knowledge, which could lead to a disruption in our work force.

***Environmental Matters***

Our businesses and sites on which we operate are subject to various federal, state and local laws and regulations regarding environmental, health and safety matters, including the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act, the Clean Air Act, the Emergency Planning and Community Right-to-Know Act, the Oil Pollution Act and the Clean Water Act, each as amended. Among other things, these laws and regulations regulate the emission or discharge of materials into the environment, govern the use, storage, treatment, disposal, handling and management of hazardous substances and wastes, and protect the health and safety of our employees. These laws also impose liability for the costs of investigating and remediating, and damages resulting from, present and past releases of hazardous substances, including releases by us or prior owners or operators, at sites we currently own, lease or operate, customer sites or third-party sites to which we sent wastes. During fiscal year 2022, we did not incur any material capital expenditures for liabilities arising from the enforcement of any applicable environmental regulations.

***State and Municipal Regulation; Permitting and Licensing***

Each state in which we now operate or may operate in the future has laws and regulations governing (1) water and air pollution, and the generation, storage, treatment, handling, processing, transportation, incineration and disposal of storm debris; (2) in most cases, the siting, design, operation, maintenance, closure and post-closure maintenance of certain types of storm debris collection sites; and (3) in some cases, vehicle emissions limits or fuel types, which impact our collection operations. Such standards typically are as stringent as and may be more stringent and broader in scope than, federal regulations. Most of the federal statutes noted above authorize states to enact and enforce laws with standards that are more protective of the environment than the federal analog. These laws and regulations may impact our operations directly and indirectly from the obligations and restrictions they impose on our business partners, including Waste Management, Inc., which owns two of the sites we use.

Many municipalities in which we currently operate or may operate in the future also have ordinances, laws and regulations affecting our operations. These include zoning and health measures that limit our activities to specified sites or conduct, flow control provisions that direct the delivery of wastes to specific facilities or to facilities in specific areas, or other restrictions on the movement of wastes into a municipality.

Some states have enacted laws that allow agencies with jurisdiction over waste management facilities to deny or revoke permits based on the applicant's or permit holder's compliance status. Some states also consider the compliance history of the corporate parent, subsidiaries and affiliates of the applicant or permit holder.

Certain permits and approvals issued under state or local law may limit the types of waste that may be accepted at a solid waste management facility or the quantity of waste that may be accepted at a solid waste management facility during a specific time period. In addition, certain permits and approvals, as well as certain state and local regulations, may limit a solid waste management facility to accepting waste that originates from specified geographic areas or seek to restrict the importation of out-of-state waste or otherwise discriminate against out-of-state waste. Generally, restrictions on importing out-of-state waste have not withstood judicial challenge. However, from time-to-time federal legislation is proposed which would allow individual states to prohibit the disposal of out-of-state waste or to limit the amount of out-of-state waste that could be imported for disposal and would require states, under certain circumstances, to reduce the amounts of waste exported to other states. Although such legislation has not been passed by Congress, if similar legislation is enacted, states in which we operate solid waste management facilities could limit or prohibit the importation of out-of-state waste. Such actions could materially and adversely affect the business, financial condition and results of operations of any of our landfills within those states that receive a significant portion of waste originating from out-of-state.

Certain states and localities may restrict the export of waste from their jurisdiction or require that a specified amount of waste be disposed of at facilities within their jurisdiction. Some proposed federal legislation would allow states and localities to impose flow restrictions. Those restrictions could reduce the volume of waste going to solid waste management facilities in certain areas, which may materially adversely affect our ability to operate our facilities. Those restrictions also may result in higher disposal costs for our collection operations. Flow control restrictions could have a material adverse effect on our business, financial condition, results of operations, and cash flows.

**Employees**

In 2022, during the busiest times of the year for our business, we employed over 200 workers, none of whom are presently represented by a labor union. As of February 2023, we have employed approximately 274 full time employees, 47 of them being seasonal. We consider our relations with our employees to be good.

**Seasonality and Weather Conditions**

Our services and products have seasonal variability such as increased mulching in the spring, tree removal and cleanup work in the fall, and disaster (hurricane) recovery in the summer and the fall. This can drive fluctuations in revenue, costs and cash flows for interim periods.

Typically, our revenues and net income have been higher in the spring, which corresponds with our second fiscal quarter. Seasonality and extreme weather events cause our results of operations to vary from quarter to quarter and year to year for the same quarter.

Weather may impact the timing of performance of our services and sales of our products (mulch) from quarter to quarter. Certain extreme weather events, such as hurricanes and tropical storms, can result in increased revenues related to cleanup and other services. However, such weather events may also impact our ability to deliver other services and our products or cause damage to our facilities or equipment. These weather events can also result in higher fuel costs, higher labor costs and shortages of raw materials and products. As a result, a perceived earnings benefits related to extreme weather events may be moderated.

**Intellectual Property**

We, primarily through our subsidiaries, hold or have rights to use various service marks, trademarks and trade names we use in the operation of our businesses that we deem particularly important to each of our businesses. As of October 1, 2022, we had over twenty trademarks for bag labels.

Mulch Manufacturing, Inc. was assigned a patent on our latest product line, Softscape®, which is lighter in weight and has a more uniform appearance than other mulches. The patent was issued by the U.S. Patent and Trademark Office on March 8, 2011 and expires on March 8, 2031, the 20 year initial standard patent protection period, at which time we may seek to renew it. The Softscape® patent covers the manufacturing process and the attributes making the mulch lighter in weight and more uniform in appearance other mulches. Although Softscape® is patent protected, we do not seek patent protection for the formulas of the colorants we manufacture.

**Available Information**

Our website address is www.sustainablegreenteam.com. Through this website, our filings with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports, will be accessible (free of charge) as soon as reasonably practicable after materials are electronically filed with or furnished to the SEC. The information provided on our website is not part of this registration statement.

You also may read any materials we file with the SEC over the Internet at the SEC's website at www.sec.gov.

**ITEM 1A. RISK FACTORS**

*An investment in our securities carries a significant degree of risk. You should carefully consider the following risks, as well as the other information contained in this registration statement, including our historical financial statements and related notes included elsewhere in this registration statement before you decide to purchase our securities. Any one of these risks and uncertainties has the potential to cause material adverse effects on our business, prospects, financial condition, and operating results which could cause actual results to differ materially from any forward-looking statements expressed by us and a significant decrease in the value of our common stock shares. Refer to "Cautionary Statement Regarding Forward-Looking Statements."*

*We may not be successful in preventing the material adverse effects that any of the following risks and uncertainties may cause. These potential risks and uncertainties may not be a complete list of the risks and uncertainties facing us. There may be additional risks and uncertainties that we are presently unaware of, or presently consider immaterial, that may become material in the future and have a material adverse effect on us. You could lose all or a significant portion of your investment due to any of these risks and uncertainties.*

**Risks Related to Our Business**

***We are a holding company and depend upon our subsidiaries for our cash flows.***

We are a holding company. All of our operations are conducted, and almost all of our assets are owned, by our subsidiaries. Consequently, our cash flows and our ability to meet our obligations depend upon the cash flows of our subsidiaries and the payment of funds by these subsidiaries to us in the form of dividends, distributions or otherwise. The ability of our subsidiaries to make any payments to us depends on their earnings, the terms of their indebtedness, including the terms of any credit facilities and legal restrictions. Any failure to receive dividends or distributions from our subsidiaries when needed could have a material adverse effect on our business, results of operations or financial condition.

***We will require additional funding for our current working capital needs and growth plans, and such funding may result in a dilution of your investment.***

We attempted to estimate our funding requirements to implement our current working capital needs and growth plans, including our need for at least $18 million to complete our planned production of pine bark and marketable lumber at the Jasper mill, lumber production at our Beaver sawmill, and the purchase and installation of equipment for our Arborcare, mulch and soil operations and other working capital requirements related to our operations and contractual obligations related to the VRM Sublicense. See "Management's Discussion & Analysis of Financial Condition and Results of Operations - Material Cash Requirements." If our growth exceeds those plans or the costs or cash requirements of implementing such plans should exceed these estimates significantly or if we come across opportunities to grow through expansion plans either internally or through acquisitions which cannot be predicted at this time, and our funds generated from our operations prove insufficient for such purposes, we will need to raise additional funds to meet these funding requirements.

These additional funds may be raised by issuing equity or debt securities or by borrowing from banks or other sources. We cannot assure you that we will be able to obtain any additional financing on terms that are acceptable to us, or at all. If we fail to obtain additional financing on terms that are acceptable to us, we will not be able to implement such plans fully if at all. Such financing even if obtained, may be accompanied by conditions that limit our ability to pay dividends or require us to seek lenders' consent for payment of dividends, or restrict our freedom to operate our business by requiring lender's consent for certain corporate actions.

Further, if we raise additional funds by way of a rights offering or through the issuance of new shares, any shareholders who are unable or unwilling to participate in such an additional round of fund raising may suffer dilution in their investment.

***If the voting power of our capital stock continues to be highly concentrated, it may prevent you and other minority stockholders from influencing significant corporate decisions and may result in conflicts of interest.***

Anthony Raynor, our Chief Executive Officer, and sole director controls approximately 99% of the voting power of our outstanding capital stock. As a result, Mr. Raynor will have majority voting power over all matters requiring stockholder votes, including: the election of directors; mergers, consolidations, and acquisitions; the sale of all or substantially all of our assets and other decisions affecting our capital structure; amendments to our certificate of incorporation or our bylaws; and our winding up and dissolution.

This concentration of voting power may delay, deter, or prevent acts that would be favored by our other stockholders. The interests of Mr. Raynor may not always coincide with our interests or the interests of our other stockholders. This concentration of voting power may also have the effect of delaying, preventing, or deterring a change in control of us. Also, Mr. Raynor may seek to cause us to take courses of action that, in his judgment, could enhance his investment in us, but which might involve risks to our other stockholders or adversely affect us or our other stockholders, including investors in this offering. As a result, the market price of our common stock could decline, or our other stockholders might not receive a premium over the then-current market price of our common stock upon a change in control. In addition, this concentration of voting power may adversely affect the trading price of our common stock because investors may perceive disadvantages in owning shares in a company with significant stockholders. See ""Description of Capital Stock."

***The COVID-19 pandemic, along with rising fuel and labor costs has impacted and will likely continue to impact our business, financial condition and results of operations.***

A pandemic outbreak of novel strains of coronavirus (COVID-19) has occurred across the globe and efforts to mitigate the health impact of the pandemic have profoundly and adversely affected economic activity. National, state and local governments have taken actions to mitigate the impact of the COVID-19 pandemic in a variety of ways, including by declaring states of emergency, issuing stay-at-home orders and ordering certain businesses to close or limit their operations. Although our transportation, tree care, debris removal and storm/disaster recovery services operations are considered essential services, there are some jurisdictions that have periodically limited or halted our operations or the operations of the general contractors with which we work as well as our own mulch and soil manufacturing operations. Amended or future governmental orders or other restrictions may limit or prohibit our transportation, tree care, debris removal and storm/disaster recovery services, as well as our mulch and soil manufacturing operations in certain locations in the future. Further limitations could have a material adverse impact on our business, financial condition, results of operations, and cash flow.

In addition to limitations on our operations because of governmental orders or restrictions, the COVID-19 pandemic has caused and will likely continue to cause disruptions to our business and operations as a result of social distancing measures, restrictions on travel and labor shortages as a result of illness and possible delays in H-2B visa processing in connection with recent or future government orders and regulations related to immigration. In addition, the COVID-19 pandemic has caused and may continue to cause disruptions in the business and operations of the general contractors with which we work and our suppliers. We may be unable to timely obtain the supplies we need to provide our products and services as well as difficulties in obtaining drivers for deliveries of products and raw materials, which could have a material adverse impact on our ability to operate our business. As a result, we may lose business opportunities, have reduced revenues or have difficulty collecting payments from clients, which could have a material adverse impact on our business, financial condition, results of operation, and cash flow.

Due to COVID-19 disruptions in the supply chain and rising fuel and labor costs, we experienced an increase in delivery costs of approximately 23% or $1.3 million during the nine month period ended October 1, 2022 compared to the nine month period ended October 2, 2021. The Company incurred minimal expense, less than $10,000, related to supplies, such as personal protection equipment as our main operations is outdoors and not actively involving interactions with non-employee individuals.

The extent to which the COVID-19 pandemic will impact our business, results of operations, financial condition and cash flows in the future will depend on future developments, including the duration, spread and intensity of the pandemic, our continued ability to manufacture and distribute our products, as well as any future government actions affecting consumers and the economy generally, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. We are not able to predict the impact, if any, that the COVID-19 pandemic may have on the seasonality of our business.

The COVID-19 pandemic has also resulted in material adverse national and global economic conditions that are impacting, and will continue to impact, our business. Such conditions may result in an economic recession or prolonged economic downturn, which could result in a material loss of business for the duration of the downturn. Actions taken to mitigate the pandemic and resulting economic conditions are likely to materially and adversely impact our business, financial condition, results of operations and cash flows. Although we have taken certain actions to ensure the continuity of our business and operations, we may need to take additional actions to ensure the continuity of our business, including use of a hiring freeze, furloughing, or laying off employees and taking other actions to limit expenditures. We have taken out PPP loans and drawn on borrowing facilities and may need to further extend borrowings and indebtedness in order to obtain additional liquidity. The COVID-19 pandemic has also resulted in severe disruption and volatility in the financial markets. Depending on the extent and duration of the COVID-19 pandemic, the price of our common stock on the OTCQX tier of OTC Markets has experienced and may continue to experience declines and volatility which may negatively impact our ability to raise capital through the equity markets if necessary to increase our liquidity.

In addition to the risks specifically described above, the impact of COVID-19 and the existing supply chain and inflationary pressures are likely to implicate and exacerbate certain risks, including those related to our customers, demand for our services, reliance on workers, suppliers, our indebtedness, and potential additional impairment of our goodwill and other intangible assets.

***Our industry and the markets in which we operate are highly competitive and increased competitive pressures could reduce our share of the markets we serve and adversely affect our business, financial position, results of operations and cash flows.***

We operate in markets with relatively few large competitors, but barriers to entry in the tree care, debris removal and storm/disaster recovery services, the mulch and soil products business, lumber production and mulch colorants and coloring equipment business are generally low, which has led to highly competitive markets consisting of entities ranging from small or local operators to large regional and national businesses, as well as potential customers that choose not to outsource their landscape maintenance services. Any of our competitors may foresee the course of market development more accurately than we do, provide superior service or products, have the ability to deliver similar services or products at a lower cost, develop stronger relationships with our customers and other consumers in the mulch and soil industries and in the tree care, debris removal and storm/disaster recovery services business and lumber production and mulch colorants and coloring equipment business, adapt more quickly to evolving customer requirements, devote greater resources to the promotion and sale of their services and products, access financing on more favorable terms than we can obtain, may have more experienced management or may be more mature as a business than us. In addition, while some regional competitors may be smaller than we are, some of these businesses may have a greater presence than we do in a particular market. As a result of any of these factors, we may not be able to compete successfully with our competitors, which could have an adverse effect on our business, financial position, results of operations and cash flows.

Our customers consider the quality and differentiation of the products and services we provide, our customer service, and price, when deciding whether to buy our products and use our services. As we have strived to establish ourselves as leading, high-quality providers of mulch and soil product, tree care, debris removal and storm/disaster recovery services, lumber production and mulch colorants and coloring equipment, we compete predominantly on the basis of high levels of service and strong relationships. In addition, we seek to enhance our profit margins on mulch sales by using feedstock we obtain from our tree care business and lumber production in our mulch and soil products production. We may not be able to, or may choose not to, compete with certain competitors on the basis of price and accordingly, some of our customers may switch to lower cost suppliers and services providers or perform such services themselves. If we are unable to compete effectively with our existing competitors or new competitors enter the markets in which we operate, or our current customers stop outsourcing their tree care and debris removal maintenance services and storm/disaster recovery services, our financial position, results of operations and cash flows may be materially and adversely affected.

In addition, former employees may start tree care, debris removal and storm/disaster recovery services businesses similar to ours and compete directly with us. While we customarily sign non-competition agreements, which typically continue for one year following the termination of employment, with certain of our employees, such agreements do not fully protect us against competition from former employees and may not be enforceable depending on local law and the surrounding circumstances. Consequently, we cannot predict with certainty whether, if challenged, a court will enforce any non-competition agreement. Any increased competition from businesses started by former employees may reduce our market share and adversely affect our business, financial position, results of operations and cash flows.

***Our business success depends on our ability to preserve long-term customer relationships.***

Our success depends on our ability to retain our current customers, renew our existing customer contracts, and obtain new business. Our ability to do so generally depends on a variety of factors, including the quality, price, and responsiveness of our products and services, as well as our ability to market these products and services effectively and differentiate ourselves from our competitors. We largely seek to differentiate ourselves from our competitors based on high levels of service, breadth of service offerings and strong relationships and may not be able to, or may choose not to, compete with certain competitors based on price. There can be no assurance that we will be able to obtain new business, renew existing customer contracts at the same or higher levels of pricing or that our current customers will not cease operations, elect to self-operate or terminate contracts with us. In our services segment, we primarily provide services pursuant to agreements that are cancelable by either party upon 30-days' notice. Consequently, our customers can unilaterally terminate all services pursuant to the terms of our service agreements, without penalty.

***Our growth projections assume efficiencies, cost savings and other benefits of our vertically integrated business model that might not be achieved.***

Our business model is vertically integrated. Although we believe that vertical integration benefits our business, these benefits are difficult to quantify and might not be realized. Our growth projections are based on a variety of assumptions about efficiencies, cost savings and other benefits of being a vertically integrated company that may not be achieved. For example, we provide services through NSR that supply feedstock, raw materials, for the products MMI manufactures. If demand shifts disproportionately or inversely for NSR services and MMI products, we may have a shortage of feedstock and we would need to obtain more of our raw materials from other sources at a higher cost, or we might accumulate a surplus of feedstock and incur storage expenses. Furthermore, we are subject to a wider range of laws and regulations due to our vertical integration. The cost of compliance and dedication of management resources across all segments of our business may be higher than competitors that are not vertically integrated.

***We may be adversely affected if customers reduce their outsourcing.***

Our business and growth strategies benefit from the continuation of a current trend toward outsourcing services. Customers will outsource if they perceive that outsourcing may provide quality services at a lower overall cost and permit them to focus on their core business activities. We cannot be certain that this trend will continue or not be reversed or that customers that have outsourced functions will not decide to perform these functions themselves. If a significant number of our existing customers reduced their outsourcing and elected to perform the services themselves, such loss of customers could have a material adverse impact on our business, financial position, results of operations and cash flows.

***Because we operate our business through dispersed locations across the United States, our operations may be materially adversely affected by inconsistent practices and the operating results of individual branches may vary.***

We operate our business through a network of dispersed locations throughout the United States, supported by corporate executives and certain centralized services in our headquarters, with local branch management retaining responsibility for day-to-day operations. Our operating structure could make it difficult for us to coordinate procedures across our operations in a timely manner or at all, and certain of our branches may require significant oversight and coordination from headquarters to support their growth. In addition, the operating results of an individual branch may differ from that of another branch for a variety of reasons, including market size, management practices, competitive landscape, regulatory requirements, and local economic conditions. Inconsistent or incomplete implementation of corporate strategy and policies at the local level could materially and adversely affect our business, financial position, results of operations and cash flows.

***We may not successfully implement our business strategies, including achieving our growth objectives.***

We may not be able to fully implement our business strategies or realize, in whole or in part within the expected time frames, the anticipated benefits of our various growth or other initiatives. Our various business strategies and initiatives, including our growth, operational and management initiatives, are subject to business, economic and competitive uncertainties, and contingencies, many of which are beyond our control. In addition, we may incur certain costs as we pursue our growth, operational and management initiatives, and we may not meet anticipated implementation timetables or stay within budgeted costs. As these initiatives are undertaken, we may not fully achieve our expected efficiency improvements or growth rates, or these initiatives could adversely impact our customer retention, supplier relationships or operations. Also, our business strategies may change from time to time considering our ability to implement our business initiatives, competitive pressures, economic uncertainties or developments, or other factors.

***If we are unable to hire and retain key personnel, we may not be able to implement our business plan.***

The execution of our business strategy and our financial performance will continue to depend in significant part on our executive management team and other key management personnel, our ability to identify and complete suitable acquisitions and our executive management team's ability to execute new operational initiatives. We rely heavily on Anthony Raynor, the founder and CEO of the Company, to execute our business strategy. Consequently, the loss of Mr. Raynor may have a substantial effect on our future success or failure. We do not have and generally do not intend to acquire keyman life insurance on any of our executives, including Mr. Raynor. We may have to recruit qualified personnel with competitive compensation packages, equity participation, and other benefits that may affect the working capital available for our operations. Management may have to seek to obtain outside independent professionals to assist them in assessing the merits and risks of any business proposals as well as assisting in the development and operation of many company projects. No assurance can be given that we will be able to obtain such needed assistance on terms acceptable to us. Our failure to attract additional qualified employees or to retain the services of key personnel could have a material adverse effect on our operating results and financial condition.

***Future acquisitions or other strategic transactions could negatively impact our reputation, business, financial position, results of operations and cash flows.***

We have acquired businesses in the past and expect to continue to acquire businesses or assets in the future. However, there can be no assurance that we will be able to identify and complete suitable acquisitions. For example, due to the highly fragmented nature of our industry, it may be difficult for us to identify potential targets with revenues or profits sufficient to justify taking on the risks associated with pursuing their acquisition. The failure to identify suitable acquisitions and successfully integrate these acquired businesses may limit our ability to expand our operations and could have an adverse effect on our business, financial position, results of operations and cash flows.

In addition, acquired businesses may not perform in accordance with expectations, and our business judgments concerning the value, strengths and weaknesses of acquired businesses may not prove to be correct. We may also be unable to achieve expected improvements or achievements in businesses that we acquire. The process of integrating an acquired business may create unforeseen difficulties and expenses, including the diversion of resources away from our operations; the inability to retain employees, customers and suppliers; difficulties implementing our strategy at the acquired business; the assumption of actual or contingent liabilities (including those relating to the environment); failure to effectively and timely adopt and adhere to our internal control processes, accounting systems and other policies; write-offs or impairment charges relating to goodwill and other intangible assets; unanticipated liabilities relating to acquired businesses; and potential expenses associated with litigation with sellers of such businesses.

If management is not able to effectively manage the integration process, or if any significant business activities are interrupted because of the integration process, we may not be able to realize anticipated benefits and revenue opportunities resulting from acquisitions and our business could suffer. Although we conduct due diligence investigations prior to each acquisition, there can be no assurance that we will discover or adequately protect against all contingencies and material liabilities of an acquired business for which we may be responsible as a successor owner or operator.

In connection with our acquisitions, we generally require that key management and former principals of the businesses we acquire enter into non-competition agreements in our favor. Enforceability of these non-competition agreements varies from state to state and may depend on the relevant facts and circumstances. Consequently, we cannot predict with certainty whether, if challenged, a court will enforce any non-competition agreement. Increased competition could materially and adversely affect our business, financial position, results of operations and cash flows.

***Seasonality affects the demand for our services and products and our results of operations and cash flows.***

The demand for our services and products and our results of operations are affected by the seasonal nature of our services and products in certain regions. Our services and products have seasonal variability such as increased mulching in the spring, leaf removal and cleanup work in the fall, and disaster (hurricane) recovery in the summer and the fall. Typically, our revenues and net income have been higher in the spring, which corresponds with our second fiscal quarter. Such variability in demand for our services and products causes our results of operations to vary from quarter to quarter and from year to year in the same quarter. Due to the seasonal nature of the services, we provide, we also experience seasonality in our employment and working capital needs. Our employment and working capital needs generally correspond with the increased demand for our services in the spring, summer and falls months and employment levels and operating costs are generally at their highest during such months. Consequently, our results of operations and financial position can vary from quarter-to-quarter and from year-to-year in the same quarter. If we are unable to effectively manage the seasonality and year-to-year variability, our results of operations, financial position and cash flow may be adversely affected.

***Our operations are impacted by weather conditions.***

Weather may impact the timing of performance of our services and sales of our products (mulch) from quarter-to-quarter and from year-to-year in the same quarter. Certain extreme weather events, such as hurricanes and tropical storms, can result in increased revenues related to cleanup and other services. However, such weather events may also impact our ability to deliver other services and our products or cause damage to our facilities or equipment. These weather events can also result in higher fuel costs, higher labor costs and shortages of raw materials and products. As a result, a perceived earnings benefits related to extreme weather events may be moderated. There is a risk that demand for our services and products will change in ways that we are unable to predict.

***Increases in raw material costs, fuel prices, wages and other operating costs, and changes in our ability to source adequate supplies and materials in a timely manner, could adversely impact our business, financial position, results of operations and cash flows.***

Our financial performance may be adversely affected by increases in our operating expenses, such as fuel, wages and salaries, employee benefits, health care, subcontractor costs, vehicle, facilities and equipment leases, insurance and regulatory compliance costs, all of which may be subject to inflationary pressures. While we seek to manage price and availability risks related to raw materials through procurement strategies, these efforts may not be successful, and we may experience adverse impacts due to increasing tariffs and rising prices of such products. In addition, we closely monitor wage, salary, and benefit costs to remain competitive in our markets. Attracting and maintaining a high-quality workforce is a priority for our business, and if wage, salary or benefit costs increase, including as a result of minimum wage legislation, our operating costs will increase as they have in the past. We cannot predict the extent to which we may experience future increases in operating expenses as well as various regulatory compliance costs. To the extent such costs increase, we may be prevented, in whole or in part, from passing these cost increases through to our existing and prospective customers, which could have a material adverse impact on our business, financial position, results of operations and cash flows.

Our ability to offer our products and services to our customers is dependent upon our ability to obtain adequate supplies, materials, and products from manufacturers, distributors, and other suppliers. Any disruption or shortage in our sources of supply due to unanticipated increased demand or disruptions in production or delivery of products could result in a loss of revenues, reduced margins, and damage to our relationships with suppliers and customers. In addition, we source certain materials and products we use in our business from a limited number of suppliers. If our suppliers experience difficulties or disruptions in their operations or if we lose any significant supplier, we may experience increased supply costs or may experience delays in establishing replacement supply sources that meet our quality and control standards. The loss of, or a substantial decrease in the availability of, supplies and products from our suppliers or the loss of key supplier arrangements could adversely impact our business, financial position, results of operations and cash flows.

***If we are unable to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us, we may achieve lower than anticipated profits or incur contract losses.***

A significant portion of our contracts are subject to competitive bidding and/or are negotiated on a fixed- or capped-fee basis for the services covered. Such contracts generally require that the total amount of work, or a specified portion thereof, be performed for a single price irrespective of our actual costs. If our cost estimates for a contract are inaccurate, or if we do not execute the contract within our cost estimates, then cost overruns may cause the contract not to be as profitable as we expected or could cause us to incur losses.

***Our success depends on our executive management and other key personnel.***

Our future success depends to a significant degree on the skills, experience and efforts of our executive management and other key personnel and their ability to provide us with uninterrupted leadership and direction. The failure to retain our executive officers and other key personnel or a failure to provide adequate succession plans could have an adverse impact. The availability of highly qualified talent is limited, and the competition for talent is robust. A failure to replace executive management members or other key personnel efficiently or effectively and to attract, retain and develop new qualified personnel could have an adverse effect on our operations and implementation of our strategic plan.

***Our future success depends on our ability to attract, retain and maintain positive relations with trained workers.***

Our future success and financial performance depend substantially on our ability to attract, train and retain workers, including account, branch and regional management personnel. The tree care, debris removal and storm/disaster recovery services industry are labor intensive, and industry participants, including us, experience high turnover rates among hourly workers and competition for qualified supervisory personnel. In addition, we, like many trees care, debris removal and storm/disaster recovery service providers who conduct a portion of their operations in seasonal climates, employ a portion of our field personnel for only part of the year.

We have historically relied on the H-2B visa program to bring workers to the United States on a seasonal basis. We employed approximately 47 seasonal workers in 2022 and 2021, through the H-2B visa program. If we are unable to hire enough seasonal workers, through the H-2B program or otherwise, we may experience a labor shortage. In the event of a labor shortage, whether related to seasonal or permanent staff, we may have difficulty delivering our services in a high-quality or timely manner, and we could experience increased recruiting, training and wage costs in order to attract and retain employees, increasing our operating costs and reducing our profitability.

In 2022, during the busiest times of the year for our business, we employed over 200 workers, none of whom are presently represented by a labor union. As of February 2023, we have employed approximately 274 full time employees, 47 of them being seasonal. If a significant number of our employees were to attempt to unionize, and/or successfully unionized, including in the wake of any future legislation that makes it easier for employees to unionize, our business could be negatively affected. Any inability by us to negotiate collective bargaining arrangements could result in strikes or other work stoppages disrupting our operations, and new union contracts could increase operating and labor costs. If these labor organizing activities were successful, it could further increase labor costs, decrease operating efficiency and productivity in the future, or otherwise disrupt or negatively impact our operations. Moreover, a collective bargaining agreement could require periodic contributions to multiemployer defined benefit pension plans. Required contributions to such plans could increase because of a shrinking contribution base because of the insolvency or withdrawal of other companies that currently contribute to these plans, the inability or failure of withdrawing companies to pay their withdrawal liability, low interest rates, lower than expected returns on pension fund assets or other funding deficiencies. Additionally, in the event we were to withdraw from such plans, in which we were forced to participate, as a result of our exiting certain markets or otherwise, and if the relevant plans were underfunded, we could become subject to a withdrawal liability. The amount of such required contributions may be material.

***Our business could be adversely affected by a failure to properly verify the employment eligibility of our employees.***

We use the U.S. government's "E-Verify" program to verify employment eligibility for all new employees throughout our company. However, use of E-Verify does not guarantee that we will successfully identify all applicants who are ineligible for employment. Although we use E-Verify and require all new employees to provide us with government-specified documentation evidencing their employment eligibility, some of our employees may, without our knowledge, be unauthorized workers. The employment of unauthorized workers may subject us to fines or penalties, and adverse publicity that negatively impacts our reputation and may make it more difficult to hire and keep qualified employees. We are subject to regulations of U.S. Immigration and Customs Enforcement, or ICE, and we are audited from time to time by ICE for compliance with work authentication requirements. While we believe we follow applicable laws and regulations, if we are found not to be in compliance as a result of any audits, we may be subject to fines or other remedial actions. See "Business—Regulatory Overview—Employee and Immigration Matters."

Termination of a significant number of employees in specific markets or across our company due to work authorization or other regulatory issues would disrupt our operations and could also cause adverse publicity and temporary increases in our labor costs as we train new employees. We could also become subject to fines, penalties and other costs related to claims that we did not fully comply with all recordkeeping obligations of federal and state immigration compliance laws. Our reputation and financial performance may be materially harmed because of any of these factors. Furthermore, immigration laws have been an area of considerable political focus in recent years, and the U.S. Congress and the Executive Branch of the U.S. government from time to time consider or implement changes to federal immigration laws, regulations, or enforcement programs. Further changes in immigration or work authorization laws may increase our obligations for compliance and oversight, which could subject us to additional costs and potential liability and make our hiring process more cumbersome or reduce the availability of potential employees.

***Our use of subcontractors to perform work under certain customer contracts exposes us to liability and financial risk.***

We use subcontractors to perform work in situations in which we are not able to self-perform such work. If we are unable to hire qualified subcontractors, our ability to successfully complete a project or perform services could be impaired. If we are not able to locate qualified third-party subcontractors or the amount we are required to pay for subcontractors exceeds what we have estimated, we could incur losses or realize lower than expected margins. We may not have direct control over our subcontractors, and although we have in place controls and programs to monitor the work of our subcontractors, there can be no assurance that these programs will have the desired effect. The actual or alleged failure to perform or negligence of a subcontractor may damage our reputation or expose us to liability, which could impact our results of operations. Furthermore, if our subcontractors are unable to cover the cost of damages or physical injuries caused by their actions, whether through insurance or otherwise, we may be held liable for such costs.

***If we fail to comply with requirements imposed by applicable law or other governmental regulations, we could become subject to lawsuits, investigations and other liabilities and restrictions on our operations that could significantly and adversely affect our business.***

We are subject to governmental regulation at the federal, state, and local levels in many areas of our business, such as employment laws, wage and hour laws, discrimination laws, immigration laws, human health and safety laws, transportation laws, environmental laws, false claims or whistleblower statutes, disadvantaged business enterprise statutes, tax codes, antitrust and competition laws, intellectual property laws, governmentally funded entitlement programs and cost and accounting principles, the Foreign Corrupt Practices Act, other anti-corruption laws, lobbying laws, motor carrier safety laws and data privacy and security laws. We may be subject to review, audit or inquiry by applicable regulators from time to time.

While we attempt to comply with all applicable laws and regulations, there can be no assurance that we are always in full compliance with all applicable laws and regulations or interpretations of these laws and regulations or that we will be able to comply with any future laws, regulations or interpretations of these laws and regulations. If we fail to comply with applicable laws and regulations, including those referred to above, we may be subject to investigations, criminal sanctions, or civil remedies, including fines, penalties, damages, reimbursement, injunctions, seizures or disgorgements of the ability to operate our motor vehicles. The cost of compliance or the consequences of non-compliance, could have a material adverse effect on our business and results of operations. In addition, government agencies may make changes in the regulatory frameworks within which we operate that may require either the corporation as a whole or individual businesses to incur substantial increases in costs to comply with such laws and regulations.

***Adverse litigation judgments or settlements resulting from legal proceedings relating to our business operations could materially adversely affect our business, financial position and results of operations.***

From time to time, we are subject to allegations, and may be party to legal claims and regulatory proceedings, relating to our business operations. Such allegations, claims or proceedings may, for example, relate to personal injury, property damage, general liability claims relating to properties where we perform services, vehicle accidents involving our vehicles and our employees, regulatory issues, contract disputes or employment matters and may include class actions. See Item 8 "Legal Proceedings". Such allegations, claims and proceedings have been and may be brought by third parties, including our customers, employees, governmental or regulatory bodies or competitors. Defending against these and other such claims and proceedings is costly and time consuming and may divert management's attention and personnel resources from our normal business operations, and the outcome of many of these claims and proceedings cannot be predicted. If any of these claims or proceedings were to be determined adversely to us, a judgment, a fine or a settlement involving a payment of a material sum of money were to occur, or injunctive relief were issued against us, our business, financial position, results of operations and cash flows could be materially adversely affected.

Currently, we carry a broad range of insurance for the protection of our assets and operations. However, such insurance may not fully cover all material expenses related to potential allegations, claims and proceedings, or any adverse judgments, fines or settlements resulting therefrom, as such insurance programs are often subject to significant deductibles or self-insured retentions or may not cover certain types of claims. To the extent we are subject to a higher frequency of claims, are subject to more serious claims or insurance coverage is not available, our liquidity, financial position, results of operations, and cash flows could be materially adversely affected.

We are also responsible for our legal expenses relating to such claims. We reserve currently for anticipated losses and related expenses. We periodically evaluate and adjust our claims reserves to reflect trends in our own experience as well as industry trends. However, ultimate results may differ from our estimates, which could result in losses over our reserved amounts.

***Some of the equipment that our employees use is dangerous, and an increase in accidents resulting from the use of such equipment could negatively affect our reputation, results of operations and financial position.***

Many of the services that we provide pose the risk of serious personal injury to our employees. Our employees regularly use dangerous equipment. As a result, there is a significant risk of work-related injury and workers' compensation claims. To the extent that we experience a material increase in the frequency or severity of accidents or workers' compensation claims, or unfavorable developments on existing claims or fail to comply with worker health and safety regulations, our operating results and financial position could be materially and adversely affected. In addition, the perception that our workplace is unsafe may damage our reputation among current and potential employees, which may impact our ability to recruit and retain employees, which may adversely affect our business and results of operations.

***Any failure, inadequacy, interruption, security failure or breach of our information technology systems, whether owned by us or outsourced or managed by third parties, could harm our ability to effectively operate our business and could have a material adverse effect on our business, financial position results of operations, and cash flows.***

We are dependent on certain centralized automated information technology systems and networks to manage and support a variety of business processes and activities. Our ability to effectively manage our business and coordinate the sourcing of supplies, materials and products and our services depends significantly on the reliability and capacity of these systems and networks. Such systems and networks are subject to damage or interruption from power outages, telecommunications problems, data corruption, software errors, network failures, security breaches, acts of war or terrorist attacks, fire, flood, and natural disasters. Our servers or cloud-based systems could be affected by physical or electronic break-ins, and computer viruses or similar disruptions may occur. A system outage may also cause the loss of important data or disrupt our operations. Our existing safety systems, data backup, access protection, user management, disaster recovery and information technology emergency planning may not be sufficient to prevent or minimize the effect of data loss or long-term network outages.

We may periodically upgrade our existing information technology systems with the assistance of third-party vendors, and the costs to upgrade such systems may be significant. Costs and potential problems and interruptions associated with the implementation of new or upgraded systems and technology or with maintenance or adequate support of existing systems could disrupt or reduce the efficiency of our operations. If we cannot meet our information technology staffing needs, we may not be able to fulfill our technology initiatives while continuing to provide maintenance on existing systems. We could be required to make significant capital expenditures to remediate any such failure, malfunction or breach with our information technology systems or networks. Any material disruption or slowdown of our systems, including those caused by our failure to successfully upgrade our systems, and our inability to convert to alternate systems in an efficient and timely manner could have a material adverse effect on our business, financial position, results of operations, and cash flows.

We rely on commercially available systems, software, tools and monitoring to provide security for processing, transmitting and storing confidential information of our customers, employees and third parties. Unlawful or unauthorized activities by third parties, and failures in systems, software, encryption technology, or other tools may facilitate or result in a compromise or breach of these systems. We are subject to risks caused by data breaches and operational disruptions, particularly through cyber-attack or cyber-intrusion, including by computer hackers, foreign governments and cyber terrorists. Any unauthorized disclosure of confidential information could damage our reputation, interrupt our operations and could result in a violation of applicable laws, regulations, industry standards or agreements and potentially subject us to costs, penalties and liabilities The occurrence of any of these events could have a material adverse impact on our reputation, business, financial position, results of operations and cash flow. Although we maintain insurance coverage for various cybersecurity risks, there can be no guarantee that all costs incurred will be fully insured.

***We may not be able to adequately protect our intellectual property, which could harm the value of our brand and adversely affect our business.***

Our ability to implement our business plan successfully depends in part on our ability to further build brand recognition using our trademarks, service marks and other proprietary intellectual property, including our name, logos and licensed technology. While it is our policy to protect and defend vigorously our intellectual property, we cannot predict whether such actions will be adequate to prevent infringement or misappropriation of these rights. Although we believe that we have sufficient rights to all of our trademarks, service marks and other intellectual property rights, we may face claims of infringement that could interfere with our business or our ability to market and promote our brands. If we are unable to successfully defend against such claims, we may be prevented from using our intellectual property rights in the future and may be liable for damages.

Although we make a significant effort to avoid infringing known proprietary rights of third parties, we may be subject to claims of infringement by third parties. Responding to and defending such claims, regardless of their merit, can be costly and time-consuming, and we may not prevail. Depending on the resolution of such claims, we may be barred from using a specific mark or other rights, may be required to enter into licensing arrangements from the third-party claiming infringement or may become liable for significant damages. If any of the foregoing occurs, our ability to compete could be affected or our business, financial position and results of operations may be adversely affected.

**Risks Related to Our Indebtedness**

***Our substantial indebtedness could have important adverse consequences and adversely affect our financial condition.***

We have a significant amount of indebtedness. As of October 1, 2022, we had total notes payable of $26.8 million. See Note 9 "Notes Payable" to our condensed consolidated financial statements for the period ended October 1, 2022 included elsewhere in the registration statement.

Our level of debt could have important consequences, including making it more difficult for us to satisfy our obligations with respect to our debt, limiting our ability to obtain additional financing to fund future working capital, capital expenditures, investments or acquisitions, or other general corporate requirements, requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, investments or acquisitions and other general corporate purposes, increasing our vulnerability to adverse changes in general economic, industry and competitive conditions, exposing us to the risk of increased interest rates, limiting our flexibility in planning for and reacting to changes in the industries in which we compete, placing us at a disadvantage compared to other, less leveraged competitors, increasing our cost of borrowing and hampering our ability to execute on our growth strategy.

***We may be unable to generate sufficient cash flow to satisfy our significant debt service obligations, which could have a material adverse effect on our business, financial condition results of operations, and cash flows.***

Our ability to make principal and interest payments on and to refinance our indebtedness will depend on our ability to generate cash in the future and is subject to general economic, financial, competitive, legislative, regulatory and other factors that are beyond our control. If our business does not generate sufficient cash flow from operations, in the amounts projected or at all, or if future borrowings are not available to us in amounts sufficient to fund our other liquidity needs, our business, financial condition, results of operations, and cash flows could be materially adversely affected.

If we cannot generate sufficient cash flow from operations to make scheduled principal and interest payments, we may need to refinance all or a portion of our indebtedness on or before maturity, sell assets, delay capital expenditures or seek additional equity. The terms of our existing or future debt agreements may also restrict us from affecting any of these alternatives. Any refinancing of our debt could be at higher interest rates and may require us to comply with more onerous covenants, which could further restrict our business operations. Further, changes in the credit and capital markets, including market disruptions and interest rate fluctuations, may increase the cost of financing, make it more difficult to obtain favorable terms, or restrict our access to these sources of future liquidity. In addition, any failure to make scheduled payments of interest and principal on our outstanding indebtedness would likely result in a reduction of our credit rating, which could harm our ability to incur additional indebtedness on commercially reasonable terms or at all. Our inability to generate sufficient cash flow to satisfy our debt service obligations, or to refinance or restructure our obligations on commercially reasonable terms or at all, could have a material adverse effect on our business, financial condition and results of operations, as well as on our ability to satisfy our obligations in respect of our indebtedness.

***Despite our level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt, including off-balance sheet financing, contractual obligations and general and commercial liabilities. This could further exacerbate the risks to our financial condition described above.***

We and our subsidiaries may be able to incur significant additional indebtedness in the future, including off-balance sheet financings, contractual obligations and general and commercial liabilities. If new debt is added to our current debt levels, the related risks that we now face could intensify.

**Risks Relating to Our Common Stock**

***The market price of our common stock is likely to be highly volatile because of several factors, including a limited public float.***

The market price of our common stock has been volatile in the past and the market price of our common stock is likely to be highly volatile in the future. You may not be able to resell shares of our common stock following periods of volatility because of the market's adverse reaction to volatility.

Other factors that could cause such volatility may include, among other things:

● actual or anticipated fluctuations in our operating results;

● the absence of securities analysts covering us and distributing research and recommendations about us;

● we may have a low trading volume for several reasons, including that a large portion of our stock is closely held:

● overall stock market fluctuations;

● announcements concerning our business or those of our competitors;

● actual or perceived limitations on our ability to raise capital when we require it, and to raise such capital on favorable terms;

● conditions or trends in the industry;

● litigation;

● changes in market valuations of other similar companies;

● future sales of common stock;

● departure of key personnel or failure to hire key personnel; and

● general market conditions.

Any of these factors could have a significant and adverse impact on the market price of our common stock. In addition, the stock market in general has at times experienced extreme volatility and rapid decline that has often been unrelated or disproportionate to the operating performance of companies. These broad market fluctuations may adversely affect the trading price of our common stock, regardless of our actual operating performance.

***Our common stock has in the past been a*** "***penny stock" under SEC rules". It may be more difficult to resell securities classified as*** "***penny stock."***

In the past, our common stock was a "penny stock" under applicable SEC rules (generally defined as non-exchange traded stock with a per-share price below $5.00). These rules impose additional sales practice requirements on broker-dealers that recommend the purchase or sale of penny stocks to persons other than those who qualify as "established customers" or "accredited investors." For example, broker-dealers must determine the appropriateness for non-qualifying persons of investments in penny stocks. Broker-dealers must also provide, prior to a transaction in a penny stock not otherwise exempt from the rules, a standardized risk disclosure document that provides information about penny stocks and the risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, disclose the compensation of the broker-dealer and its salesperson in the transaction, furnish monthly account statements showing the market value of each penny stock held in the customer's account, provide a special written determination that the penny stock is a suitable investment for the purchaser, and receive the purchaser's written agreement to the transaction.

Legal remedies available to an investor in "penny stocks" may include the following:

● If a "penny stock" is sold to the investor in violation of the requirements listed above, or other federal or states securities laws, the investor may be able to cancel the purchase and receive a refund of the investment.

● If a "penny stock" is sold to the investor in a fraudulent manner, the investor may be able to sue the persons and firms that committed the fraud for damages.

These requirements may have the effect of reducing the level of trading activity, if any, in the secondary market for a security that becomes subject to the penny stock rules. The additional burdens imposed upon broker-dealers by such requirements may discourage broker-dealers from effecting transactions in our securities, which could severely limit the market price and liquidity of our securities. These requirements may restrict the ability of broker-dealers to sell our common stock or our warrants and may affect your ability to resell our common stock and our warrants.

Many brokerage firms will discourage or refrain from recommending investments in penny stocks. Most institutional investors will not invest in penny stocks. In addition, many individual investors will not invest in penny stocks due, among other reasons, to the increased financial risk generally associated with these investments.

For these reasons, penny stocks may have a limited market and, consequently, limited liquidity."

***If the benefits of any proposed acquisition do not meet the expectations of investors, stockholders or financial analysts, the market price of our Common Stock may decline.***

If the benefits of any proposed acquisition do not meet the expectations of investors or securities analysts, the market price of our Common Stock prior to the closing of the proposed acquisition may decline. The market values of our Common Stock at the time of the proposed acquisition may vary significantly from their prices on the date the acquisition target was identified.

In addition, broad market and industry factors may materially harm the market price of our Common Stock irrespective of our operating performance. The stock market in general has experienced price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the particular companies affected. The trading prices and valuations of these stocks, and of our securities, may not be predictable. A loss of investor confidence in the market for retail stocks or the stocks of other companies which investors perceive to be similar to us could depress our stock price regardless of our business, prospects, financial conditions or results of operations. A decline in the market price of our securities also could adversely affect our ability to issue additional securities and our ability to obtain additional financing in the future.

***Becoming a fully reporting public company results in additional expenses, diverts management***'***s attention, and could also adversely affect our ability to attract and retain qualified directors.***

As a fully reporting public reporting company, we are subject to the reporting requirements of the Exchange Act. These requirements generate significant accounting, legal and financial compliance costs and make some activities more difficult, time consuming or costly and may place significant strain on our personnel and resources. The Exchange Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. To establish the requisite disclosure controls and procedures and internal control over financial reporting, significant resources and management oversight are required.

As a result, management's attention may be diverted from other business concerns, which could have an adverse and even material effect on our business, financial condition, results of operations and cash flows. These rules and regulations may also make it more difficult and expensive for us to obtain director and officer liability insurance. If we are unable to obtain appropriate director and officer insurance, our ability to recruit and retain qualified officers and directors, especially those directors who may be deemed independent, could be adversely impacted.

***We qualify as an*** "***emerging growth company" and our election to delay adoption of new or revised accounting standards applicable to public companies may result in our financial statements not being comparable to those of some other public companies. As a result of this and other reduced disclosure requirements applicable to emerging growth companies, our securities may be less attractive to investors.***

As a public reporting company with less than $1,235,000,000 in revenue during our last fiscal year, we qualify as an "emerging growth company" under the Jumpstart our Business Startups Act of 2012 (the "JOBS Act"). An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. As an emerging growth company, we:

● are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

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

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

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

● may present only two years of audited financial statements and only two years of related Management's Discussion & Analysis of Financial Condition and Results of Operations ("MD&A"); and

● are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act.

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

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

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended (the "Securities Act"), or such earlier time that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that we would cease to be an "emerging growth company" if we have more than $1,235,000,000 in annual revenues, have more than $700 million in market value of our Common Stock held by non-affiliates, or issue more than $1.0 billion in principal amount of non-convertible debt over a three-year period. Further, under current SEC rules we will continue to qualify as a "smaller reporting company" for so long as we have a public float (i.e., the market value of common equity held by non-affiliates) of less than $75 million as of the last business day of our most recently completed second fiscal quarter.

We cannot predict if investors will find our securities less attractive due to our reliance on these exemptions.

***We are required to comply with certain provisions of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the*** "***Sarbanes-Oxley Act") and if we fail to continue to comply, our business could be harmed, and the price of our securities could decline.***

Rules adopted by the SEC pursuant to Section 404 of the Sarbanes-Oxley Act require an annual assessment of internal control over financial reporting, and for certain issuers an attestation of this assessment by the issuer's independent registered public accounting firm. The standards that must be met for management to assess the internal control over financial reporting as effective are evolving and complex, and require significant documentation, testing, and possible remediation to meet the detailed standards. We expect to incur significant expenses and to devote resources to Section 404 compliance on an ongoing basis. It is difficult for us to predict how long it will take or costly it will be to complete the assessment of the effectiveness of our internal control over financial reporting for each year and to remediate any deficiencies in our internal control over financial reporting. As a result, we may not be able to complete the assessment and remediation process on a timely basis. In the event that our Chief Executive Officer or Chief Financial Officer determines that our internal control over financial reporting is not effective as defined under Section 404, we cannot predict how regulators will react or how the market prices of our securities will be affected; however, we believe that there is a risk that investor confidence and the market value of our securities may be negatively affected.

***Shares eligible for future sale may adversely affect the market.***

From time to time, certain of our stockholders may be eligible to sell all or some of their shares of common stock by means of ordinary brokerage transactions in the open market pursuant to Rule 144 promulgated under the Securities Act, subject to certain limitations. In general, pursuant to Rule 144, non-affiliate stockholders may sell freely after six months, subject only to the current public information requirement. Affiliates may sell after six months, subject to the Rule 144 volume, manner of sale (for equity securities), current public information, and notice requirements. Of the approximately 74,891,090 shares of our common stock outstanding as of March 8, 2023, approximately 8,412,881 shares are tradable without restriction. Given the limited trading of our common stock, resale of even a small number of shares of our common stock pursuant to Rule 144 or an effective registration statement may adversely affect the market price of our common stock.

***Anti-takeover provisions contained in our certificate of incorporation and bylaws, as well as provisions of Delaware law, could impair a takeover attempt.***

The Company's certificate of incorporation and bylaws contain provisions that could have the effect of delaying or preventing changes in control or changes in our management without the consent of our board of directors. These provisions include:

● Our certificate of incorporation will contain a provision for a classified board of directors with staggered three-year terms so that not all members of our board of directors are elected at one time;

● Our governing documents do not provide for cumulative voting in the election of directors, which limits the ability of minority stockholders to elect director candidates;

● the ability of our board of directors to determine whether to issue shares of our preferred stock and to determine the price and other terms of those shares, including preferences and voting rights, without stockholder approval, which could be used to significantly dilute the ownership of a hostile acquirer;

● limiting the liability of, and providing indemnification to, our directors and officers;

● controlling the procedures for the conduct and scheduling of stockholder meetings;

● providing that director may be removed prior to the expiration of their terms by stockholders only for cause;

● controlling the procedures for the conduct and scheduling of stockholder meetings;

● advance notice procedures that stockholders must comply with to nominate candidates to our board of directors or to propose matters to be acted upon at a stockholders' meeting, which may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer's own slate of directors or otherwise attempting to obtain control of the Company.

These provisions, alone or together, could delay hostile takeovers and changes in control of the Company or changes in our board of directors and management.

Any provision of our certificate of incorporation or bylaws or Delaware law that has the effect of delaying or deterring a change in control could limit the opportunity for our security holders to receive a premium for their securities and could also affect the price that some investors are willing to pay for our securities.

***We have never paid dividends on our common stock and have no plans to do so in the future.***

Holders of shares of our common stock are entitled to receive such dividends as may be declared by our board of directors. To date, we have paid no cash dividends on our shares of common stock, and we do not expect to pay cash dividends on our common stock in the foreseeable future. We intend to retain future earnings, if any, to provide funds for operations of our business. Therefore, any return investors in our common stock may have will be in the form of appreciation, if any, in the market value of their shares of common stock. See "Dividend Policy."

***We will indemnify and hold harmless our officers and directors to the maximum extent permitted by Delaware law.***

Our Bylaws provide that we will indemnify and hold harmless our officers and directors against claims arising from our activities to the maximum extent permitted by Delaware law. If we were called upon to perform under our indemnification agreement, then the portion of our assets expended for such purpose would reduce the amount otherwise available for our business.

**COVID-19**

A pandemic outbreak of novel strains of coronavirus (COVID-19) has occurred across the globe and efforts to mitigate the health impact of the pandemic have profoundly and adversely affected economic activity. National, state and local governments have taken actions to mitigate the impact of the COVID-19 pandemic in a variety of ways, including by declaring states of emergency, issuing stay-at-home orders and ordering certain businesses to close or limit their operations. Although our transportation, tree care, debris removal and storm/disaster recovery services operations are considered essential services, there are some jurisdictions that have periodically limited or halted our operations or the operations of the general contractors with which we work as well as our own mulch and soil manufacturing operations. Amended or future governmental orders or other restrictions may limit or prohibit our transportation, tree care, debris removal and storm/disaster recovery services, as well as our mulch and soil manufacturing operations in certain locations in the future. Further limitations could have a material adverse impact on our business, financial condition, results of operations, and cash flow.

In addition to limitations on our operations because of governmental orders or restrictions, the COVID-19 pandemic has caused and will likely continue to cause disruptions to our business and operations as a result of social distancing measures, restrictions on travel and labor shortages as a result of illness and possible delays in H-2B visa processing in connection with recent or future government orders and regulations related to immigration. In addition, the COVID-19 pandemic has caused and may continue to cause disruptions in the business and operations of the general contractors with which we work and our suppliers. We may be unable to timely obtain the supplies we need to provide our products and services, as well as difficulties in obtaining drivers for deliveries of products and raw materials, which could have a material adverse impact on our ability to operate our business. As a result, we may lose business opportunities, have reduced revenues or have difficulty collecting payments from clients, which could have a material adverse impact on our business, financial condition, results of operation, and cash flow.

Due to COVID-19 disruptions in the supply chain and rising fuel and labor costs, we experienced an increase in delivery costs of approximately 23% or $1.3 million during the nine month period ended October 1, 2022 compared to the nine month period ended October 2, 2021. The Company incurred minimal expense, less than $10,000, related to supplies, such as personal protection equipment as our main operations is outdoors and not actively involving interactions with non-employee individuals.

The extent to which the COVID-19 pandemic will impact our business, results of operations, financial condition and cash flows in the future will depend on future developments, including the duration, spread and intensity of the pandemic, our continued ability to manufacture and distribute our products, as well as any future government actions affecting consumers and the economy generally, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. We are not able to predict the impact, if any, that the COVID-19 pandemic may have on the seasonality of our business.

The COVID-19 pandemic has also resulted in material adverse national and global economic conditions that are impacting, and will continue to impact, our business. Such conditions may result in an economic recession or prolonged economic downturn, which could result in a material loss of business for the duration of the downturn. Actions taken to mitigate the pandemic and resulting economic conditions are likely to materially and adversely impact our business, financial condition, results of operations and cash flows. Although we have taken certain actions to ensure the continuity of our business and operations, we may need to take additional actions to ensure the continuity of our business, including use of a hiring freeze, furloughing, or laying off employees and taking other actions to limit expenditures. We have taken out PPP loans and drawn on borrowing facilities and may need to further extend borrowings and indebtedness in order to obtain additional liquidity. The COVID-19 pandemic has also resulted in severe disruption and volatility in the financial markets. Depending on the extent and duration of the COVID-19 pandemic, the price of our common stock on the OTCQX tier of OTC Markets has experienced and may continue to experience declines and volatility which may negatively impact our ability to raise capital through the equity markets if necessary to increase our liquidity.

In addition to the risks specifically described above, the impact of COVID-19 is likely to implicate and exacerbate certain risks, including those related to our customers, demand for our services, reliance on workers, suppliers, our indebtedness, and potential additional impairment of our goodwill and other intangible assets.

**ITEM 2. FINANCIAL INFORMATION**

**Selected Historical Consolidated Financial Data**

The following table presents our selected historical consolidated financial data for the periods indicated. The selected historical consolidated financial data for the years ended January 1, 2022 and January 2, 2021 and the balance sheet data as of January 1, 2022 and January 2, 2021 are derived from the audited financial statements. The summary historical financial data for the nine months ended October 1, 2022, and October 2, 2021 and the balance sheet data as of October 1, 2022 is derived from our unaudited financial statements.

Historical results are included for illustrative and informational purposes only and are not necessarily indicative of results we expect in future periods, and results of interim periods are not necessarily indicative of results for the entire year. The data presented below should be read in conjunction with, and are qualified in their entirety by reference to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the notes thereto included elsewhere in this registration statement.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **January 1, 2022** | **January 2, 2021** | **October 1, 2022** | **October 2, 2021** |
|  | **(audited)** | **(audited)** | **(unaudited)** | **(unaudited)** |
| **Statement of Operations Data** | | | | |
| Total revenues | $32368984 | $30584291 | $28978933 | $25887652 |
| Cost of revenues | 31482519 | 27813403 | 23410731 | 24556926 |
| Total gross profit (loss) | 886465 | 2770888 | 5568202 | 1330726 |
| Total operating expenses | 5064963 | 4279751 | 4539311 | 3484935 |
| Income (loss) from operations | (4178498) | (1508863) | 1028891 | (2154209) |
| Total other income (expense) | 8255157 | 7375665 | 184362 | 1119418 |
| Income (loss) before provision for taxes | 4076659 | 5866803 | 1213253 | (1034791) |
| Income tax provisions | (716002) | (169191) | 223948 | (286840) |
| Net income (loss) | $4792661 | $6035994 | $989305 | $(747951) |
| Basic and diluted net loss per share | $0.05 | $0.07 | $0.01 | $(0.01) |
| **Balance Sheet Data (at period end)** |  |  |  |  |
| Cash and money market | $788294 | $3307550 | $42561 | $916427 |
| Working capital<sup>(1)</sup> | $5011086 | $9087976 | $5316444 | $11438750 |
| Total assets | $66805152 | $41218419 | $81666905 | $50325212 |
| Total liabilities | $25639650 | $30090859 | $39149596 | $18569076 |
| Stockholders' equity (deficit) | $41165502 | $11127560 | $42517309 | 31756136 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Working
 capital represents total current assets less total current liabilities.

**Management's Discussion and Analysis of Financial Condition and Results of Operations**

References in this registration statement to "we," "us" or the "Company" refer to The Sustainable Green Team, Ltd. and its subsidiaries. The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this registration statement.

**Overview**

The Company is a provider of environmentally conscious solutions in the arbor care, disposal, recycling and manufactured soil amendments busineses. The Company is a collector of tree debris ("feedstock"), throughout the southeast region of the United States. The Company beneficially-reuses feedstock to manufacture wood-based mulch and lumber products that are sold nationwide. The Company has a division that manufactures and sells proprietary mulch colorants and coloring equipment. The Company has installed the appropriate equipment to commence production of its new soil products in February 2023 and expects to start selling these products by the end of 2023.

The Company is currently incorporated and in good standing in the State of Delaware and operates as a holding company with two operating subsidiaries:

● *<u>National Storm Recovery, LLC</u>* ("NSR"), a Delaware LLC, operating as "Central Florida Arborcare", provides arbor care, tree trimming, and storm debris clean-up and disposal services, primarily in the southeastern United States with nationwide capabilities; and

● *<u>Mulch Manufacturing, Inc.</u>* ("MMI"), an Ohio corporation, manufactures mulch, lumber and soil products in the United States midwest and southeast regions, and the Ohio Valley. MMI has nationwide distribution channels.

The Company's vertically integrated business begins with the collection of feedstock through NSR. Feedstock is then beneficially-reused by MMI, for recycling and manufacturing of lumber and organic mulch. We package our products and sell them to retailers, wholesalers, landscapers, and garden centers nationwide. The diagram also includes soil products that we expect to begin manufacturing and selling in 2023.

In addition, the Company plans to produce a soil amendment product, HumiSoil® and XLR8® Bio pursuant to a restricted sublicense agreement it entered into with the soil technology company, VRM Global Holdings Pty Ltd, and its wholly owned subsidiary VRM International PTY LTD. See Item 1. Business – Corporate History. Humisoil® & XLR8® BIO technology uses any vegetative green waste or compostable material, including wood material such as sawdust or chips or grindings from wood material, and applies a catalyst to stimulate natural reactions that manufactures and stores soil moisture. The 100% organic material is converted into HumiSoil®, a valuable soil amendment, reducing the need for fertilizers and chemicals while increasing production of agricultural products, including livestock grazing on pastureland*.*

**Results of Operations**

***For the Three and Nine Months Ended October 1, 2022 Compared to the Three and Nine Months Ended October 2, 2021***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **October 1, 2022** | **October 2, 2021** | **October 1, 2022** | **October 2, 2021** |
| Net Revenue | $6425129 | $4898300 | $28978933 | $25887652 |
| Cost of revenue | 2169231 | 5464077 | 23410731 | 24556926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 4255898 | (565777) | 5568202 | 1330726 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 1950764 | 1238412 | 4522391 | 3461715 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5640 | 8620 | 16920 | 23220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1956404 | 1247032 | 4539311 | 3484935 |
| Income (loss) from operations | 2299494 | (1812809) | 1028891 | (2154209) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (882284) | 194130 | (1805606) | (291455) |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain (loss) |  | (198296) | 598300 | (198296) |
| &nbsp;&nbsp;&nbsp;Debt Forgiveness |  | 154928 | 1236080 | 1613128 |
| &nbsp;&nbsp;&nbsp;Gain on sale of fixed assets | (90) |  | 16833 |  |
| &nbsp;&nbsp;&nbsp;Other income (loss), net | 14486 | (3912) | 138755 | (3959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (867889) | 146850 | 184362 | 1119418 |
| Income before provision for income taxes | 1431606 | (1665959) | 1213253 | (1034791) |
| Provision for income taxes | 201980 | (325496) | 223948 | (286840) |
| Net Income (loss) | $1229626 | $(1340463) | $989305 | $(747951) |

---

The sum of the components may not equal due to rounding.

***Net Revenues***

Net Revenues for three and nine months ended October 1, 2022 were $6,425,129 and $28,978,933, respectively, an increase of 31.2% and 11.9% from net sales of $4,898,300 and $25,887,652 for three and nine months ended October 2, 2021. The increase of net revenues was primarily attributable to an increase in volume over the three and nine months ended October 2, 2021, due to the expansion of our customer base.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
| **Disaggregated Net Revenues** | **October 1, 2022** | **October 2, 2021** | **October 1, 2022** | **October 2, 2021** |
| Landscaping Recovery Services | $1215721 | $1078878 | $3318751 | $2655425 |
| Manufacturing and Sales of Mulch | $5209408 | $3819422 | $25660182 | $23232227 |
| Total | $6425129 | $4898300 | $28978933 | $25887652 |

---

***Costs of Revenues***

Cost of revenues for three and nine months ended October 1, 2022 were $2,169,231 and $23,410,731, respectively, a decrease of 60.3% and 4.7% from cost of revenues of $5,464,077 and $24,556,926 for three and nine months ended October 2, 2021. The decrease in the cost of revenues was primarily driven by an inventory revaluation discussed below, which was only partially offset by higher material costs, higher transportation and warehousing costs, higher overhead costs, including gas, oil and parts maintenance, and higher sales volume.

Cost of revenues as a percentage of Net Revenues for the three months ended October 1, 2022 was approximately 34% primarily due to the inventory revaluation as discussed below versus a standard percentage of approximately 90%. Rising fuel and labor costs and the residual effects of the pandemic have negatively impacted our cost of materials, delivery costs and overhead. The Company sells its products on a delivered price basis which includes the cost of freight. When the Company set its 2022 pricing in the fall of 2021, it did not anticipate the continued dramatic increase in freight delivery costs, and the sometimes unavailability, of freight delivery services. The Company initiated freight surcharges for our deliveries and implemented general price increases of, on average across all product lines, 4% to partially offset these cost increases.

During 2022, inventories related to the production of this new segment were not recorded resulting in a reduction of operating profit. Specifically, monthly "yard inventory" were not included in cycle counts. As a result, the inventory has been understated and these understated amounts were charged directly to the Income Statement (with out reconciliation). As part of the year end process the plant managers were directed to count "yard inventory" and include them in physical counts. This activity has resulted in a change in managements estimate for physical inventory in the amount of $7.9M.

The above change in management's inventory estimate has three components as follows:

1) Cycle count of yard inventory to be included in the organization's physical inventories.

2) Creation of an intercompany sale between NSR and MMI based upon fair market value of goods sold between the two entities (transaction eliminated in consolidations)

3) Creation of a "blended yard inventory" to include NSR shipments to MMI + Average Cost of remaining inventory (Tipping Fee / Quantity Received).

Intercompany sales, it is recommended that the company account for transactions between NSR to MMI at fair market value. NSR shipped 3,140 loads full truckloads to MMI during 2022. The fair market value of $818 for this material is based upon the total amount of wood purchased by MMI in 2022 divided by the total quantity of wood received.

***Gross Profit***

As a percentage of Net Revenues, our gross profit rate was 66.2% and (11.6)% for the three months ended October 1, 2022 and October 2, 2021, respectively. As a percentage of Net Revenues, our gross profit rate was 19.2% and 5.1% for the nine months ended October 1, 2022 and October 2, 2021, respectively.

The increase in gross profit rate for the three and nine months ended October 1, 2022 as compared to the three and nine months ended October 2, 2021 was primarily driven by the inventory revaluation, higher volume and increased pricing for all our products while only partially offset by higher material costs, transportation and warehousing costs, and overhead costs, including gas, oil and parts maintenance

***General and Administrative Expenses***

General and administrative expenses increased by $712,352 or 57.5%, during the three months ended October 1, 2022 compared to the three months ended October 2, 2021. The increase can be attributed primarily to an increase in office and sales personnel as we expand our operations.

General and administrative expenses increased by $1,060,676 or 30.6%, during the nine months ended October 1, 2022 compared to the nine months ended October 2, 2021. The increase can be attributed primarily to an increase in office and sales personnel as we expand our operations. In response to the COVID-19 pandemic, we implemented measures intended to protect the health and safety of our employees and maintain our ability to provide products to our customers as described in additional detail above under "COVID-19 Response and Impacts." During the nine months ended October 1, 2022 and October 2, 2021, we incurred minimal additional costs related to purchases of personal protection equipment.

***Marketing Expenses***

Advertising and marketing expenses were $77,446 and $191,369 for the three and nine months ended October 1, 2022, respectively, and $102,647 and $212,973 for the three and nine months ended October 2, 2021, respectively. The company continues its effort to market its arbor services as well as its mulch, colorant and lumber product sales.

***Interest Expense, net***

Interest expense, net was $882,284 for the three months ended October 1, 2022, an increase of 554.5% compared to Interest income of $194,130 for the three months ended October 2, 2021. The increase was driven by higher average borrowings due to the purchase of capital expenditures.

Interest expense, net was $1,805,606 for the nine months ended October 1, 2022, an increase of 519.5% compared to $291,455 for the nine months ended October 2, 2021. The increase was driven by higher average borrowings due to the purchase of capital expenditures.

***Bargain Purchase Gain (Loss) and Gain on Sale of Fixed Asset***

***Bargain Purchase Gain (Loss)***

The Company had several bulk sawmill equipment purchases during the nine months ended October 1, 2022, that are included in Property and Equipment in the Condensed Consolidated Balance Sheet. The first one was for equipment in the Beaver, Washington facility for $815,000 paid for by debt. The second bulk sawmill equipment purchase was for the facility in Jasper, Florida for $515,000 paid for by debt. The combined equipment was appraised at $1,938,300. The $598,300 difference between the equipment's appraised value and its purchase price was recognized as a bargain purchase gain.

In conjunction with the Mulch Acquisition on January 31, 2020, and as previously disclosed in Note 6 of the quarterly report filed with the OTC markets on November 18, 2022, the Company was provided benefit use of certain parcels of real property / facilities owned by Spencer for a period of two years which had a land value of $10,650,000. The annual rent expense was determined to be 4% of the property value or $426,000 annually. At time of the Mulch acquisition, the Company did not record the fair market value of "free rent" as part of the acquisition gain, nor did it record rent expense from January 20, 2020 through August 16, 2021. The Net Present Value of "free rent" at the time of the acquisition was $817,503 (using a 10% discount rate). On August 16, 2021, the Company purchased said property. As a result of the transaction, for the three and nine months ended October 2, 2021, the Company recognized a bargain purchase loss in the amount of $198,296.

***Gain on Sale of Fixed Asset***

The Company sold an automobile in January 2022 for approximately $44,223. recognizing a gain on sale of fixed asset of $16,923 in the nine months ended October 1, 2022. The original cost of the vehicle was $39,000 less accumulated depreciation of $11,700 for a net book value of $27,300.

***Debt Forgiveness***

For the nine months ended October 1, 2022 and October 2, 2021, the Company recognized $1,236,080 and $1,613,128, respectively, as other income related to debt forgiveness as part of the Paycheck Protection Program (PPP). Under the PPP, to the extent the Company uses the loan proceeds on qualifying disbursements, these loans would be forgiven.

***Income (Loss) from Continuing Operations***

Income (loss) from continuing operations was $1,229,626 for the three months ended October 1, 2022, an increase of 192% compared to $(1,340,463) for the three months ended October 2, 2021; and was $989,305 for the nine months ended October 1, 2022, an increase of 130% compared to $(747,951) for the nine months ended October 2, 2021. For the three and nine months ended October 1, 2022, the increase was driven by an increase in gross profit rate, while only partially offset by an increase in interest expense.

***Year Ended January 1, 2022 Compared to Year Ended January 2, 2021***

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **January 1, 2022** | **January 2, 2021** |
| Net Revenue | $32368984 | $30584291 |
| Cost of revenue | 31482519 | 27813403 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 886465 | 2770888 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 5033382 | 3902262 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 31581 | 377489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 5064963 | 4279751 |
| Income (loss) from operations | (4178498) | (1508863) |
| Other income (expense) |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (508034) | (1044941) |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain | 7123084 | 8306088 |
| &nbsp;&nbsp;&nbsp;Debt Forgiveness | 1613128 |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 26979 | 114518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 8255157 | 7375665 |
| Income before provision for income taxes | 4076659 | 5866803 |
| Provision for income taxes | (716002) | (169191) |
| Net Income | $4792661 | $6035994 |

---

The sum of the components may not equal due to rounding.

For the year ended January 1, 2022, the Company had a net income from continuing operations before income taxes of approximately $4,076,659 compared to income from continuing operations before income taxes of approximately $5,866,803 for the year ended January 2, 2021. This change is due to a number of factors discussed below. The January 2, 2021 results include a $8,306,088 gain on the bargain purchase of Mulch Manufacturing.

***Net Revenues***

Net Revenues for fiscal 2021 were $32,368,984, an increase of 5.8% from net revenues of $30,584,291 for fiscal 2020. The increase of net revenues was primarily attributable to an increase in volume over fiscal 2020 due to the expansion of our customer base, particularly in the last quarter of 2021. In addition, revenues in fiscal year 2020 were negatively impacted by the COVID pandemic and disruption to mulch operations due to its acquisition by the Company.

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
| Disaggregated Net Revenues | **January 1, 2022** | **January 2, 2021** |
| Landscaping Recovery Services | $3430464 | $3227218 |
| Manufacturing and Sales of Mulch | 28938520 | 27357073 |
| Total Net Revenues | $32368984 | $30584291 |

---

We are a smaller reporting company, as defined by 17 CFR § 229.10(f)(1). We do not consider the impact of inflation and changing prices as having a material effect on our net revenues and on income from operations for the previous two years or from continuing operations going forward.

***Costs of Revenues***

Cost of revenues for fiscal 2021 were $31,482,519, an increase of 13.2% from cost of revenues of $27,813,403 for fiscal 2020. Costs of revenues include the costs of manufacturing, packaging, warehousing and shipping of products. The pandemic impacted our business in 2021, primarily related to increased delivery costs. The Company sells its products on a delivered price basis which includes the cost of freight. When the Company set its 2021 pricing in the fall of 2020, it did not anticipate the dramatic increase in freight delivery costs, and the sometimes unavailability, of freight delivery services, that happened in 2021. The Company realized increased delivery costs in 2021 over 2020 of approximately $1,400,000, of which, the Company attributes approximately $800,000 to COVID-19. Although we initiated freight surcharges for our deliveries, this action was not soon enough, nor accepted in time, to avoid the reduction in our profit margins and generated the net loss from operations in 2021.

***Gross Profit***

As a percentage of Net Revenues, our gross profit rate was 2.7% and 9.1% for fiscal 2021 and 2020, respectively. The primary driver in the reduced gross profit rate in 2021 was due to the increase in delivery costs over 2020. Delivery costs as a percentage of Net Revenues increased to 21.3% from 17.0% in 2021 and 2020, respectively.

***General and Administrative Expenses***

General and administrative expenses increased by $1,131,120 for the year ended January 1, 2022 compared to the year ended January 2, 2021. The increase can be attributed primarily to an increase in office and sales personnel as we expand our operations. In response to the COVID-19 pandemic, we implemented measures intended to protect the health and safety of our employees and maintain our ability to provide products to our customers as described in additional detail above under "COVID-19 Response and Impacts." During fiscal 2021 and 2020, we incurred minimal additional costs related to purchases of personal protection equipment.

***Marketing Expenses***

Marketing expenses were approximately $303,000 and $305,000 for the twelve months ended January 1, 2022 and January 2, 2021, respectively. The company continues its effort to market its arbor services as well as its mulch, colorant and lumber product sales.

***Bargain Purchase Gain and Debt Forgiveness***

***Bargain Purchase Gain***

The Company had several bulk sawmill equipment purchases on December 31, 2021, that are included in Property and Equipment in the Consolidated Balance Sheet. The first one was for 400,000 shares of common stock, valued at $3,696,000, for equipment in Beaver, Washington, appraised for $8,570,600. The $4,874,600 difference between the 400,000 shares closing at $9.24 per share on the date of the transaction resulted in the recognition of a bargain purchase gain.

The second bulk sawmill equipment purchase was for a facility in Jasper, Florida, which was appraised for $9,798,550. The $7,550,066 purchase price was paid for by cash and debt. The $2,248,484 difference between the equipment's appraised value and its purchase price was recognized as a bargain purchase gain.

***Debt Forgiveness***

As of January 1, 2022, an aggregate amount of $1,613,128 of the Paycheck Protection Program (PPP) loans outstanding as of January 2, 2021 met the qualifications and were forgiven. The loan forgiveness was recognized as other income in fiscal year 2021, which is reflected in the reported net income. Under the PPP, to the extent the Company uses the loan proceeds on qualifying disbursements, these loans may be forgiven. Although the Company believes that the majority of the proceeds under the remaining loan of $1,236,080 has been spent on qualifying expenditures, it has not recorded any gain on forgiveness of this indebtedness for the year ended January 1, 2022.

**Liquidity and Capital Resources**

The accompanying consolidated financial statements have been prepared assuming that we will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

***Nine Months Ended October 1, 2022 and October 2, 2021***

The following table summarizes cash activities for the nine months ended October 1, 2022 and October 2, 2021:

---

| | | |
|:---|:---|:---|
|  | **October 1, 2022** | **October 2, 2021** |
| Net cash from (used in) operating activities | $(3287875) | $2221978 |
| Net cash from (used in) investing activities | 3043477 | (1146750) |
| Net cash provided by (used in) financing activities | (501283) | (655088) |

---

The Company generated net Income (loss) from operations for the nine months ended October 1, 2022 and October 2, 2021, of $989,305 and $(747,951), respectively. As of October 1, 2022 and October 2, 2021, the Company had current assets of $18,451,173 and $14,498,086, which included cash and money market funds of $42,613 and $916,427, accounts receivable of $2,048,171 and $1,922,806, inventory of $14,015,714 and $7,764,562 and prepaid expenses of $2,344,675 and $894,393, respectively. Total current liabilities were $13,134,729 and $3,059,336, respectively, as of October 1, 2022 and October 2, 2021.

***Operating Activities***

Cash used in operating activities totaled $3,287,875 for the nine months ended October 1, 2022, a decrease of $5,509,853 as compared to cash provided by operating activities of $2,211,978 for nine months ended October 2, 2021. This decrease was driven by borrowing under factoring facility, higher inventory, prepaid expenses and other current assets, while partially offset by an increase in repayment under factoring facility, accounts receivable, notes payable, and accounts payable and accrued expenses. Prepaid expenses increase was primarily related to an increase in deferred tax assets and stock issuance costs. The notes payable increase was primarily due to loans associated with equipment purchases. The accounts payable and accrued expenses increase was due primarily to timing of payments.

***Investing Activities***

Cash from investing activities totaled $3,043,477 for nine months ended October 1, 2022 as compared to cash used in investing activities of $(1,146,750) for nine months ended October 2, 2021. The increase was driven by a sale/leaseback of certain property plant and equipment into a Right of Use asset of $7,422,659, which was only partially offset by purchases of property and equipment of $4,405,777.

***Financing Activities***

Cash used in financing activities totaled $501,283 for nine months ended October 1, 2022, an increase of $501,283 as compared to cash used in financing activities of $655,088 for nine months ended October 2, 2021. The increase was driven by proceeds from Notes payable of $4,325,720, more than offset by payments on notes payable of $4,408,986 and an increase in principal payment on leases of $125,429. The Company also had stock subscriptions of $2,800,000 partially offset by stock redemptions of $2,437,500.

During the nine months ended October 1, 2022 and October 2, 2021, the Company met its capital requirements primarily through external financing, the sale of restricted common stock and the issuance of promissory notes.

***Year Ended January 1, 2022 and Year Ended January 2, 2021***

The following table summarizes cash activities for the years ended January 1, 2022 and January 2, 2021:

---

| | | |
|:---|:---|:---|
|  | **2021** | **2020** |
| Net cash provided by operating activities | $2422498 | $1726450 |
| Net cash provided by (used in) investing activities | (928576) | 2018136 |
| Net cash provided by (used in) financing activities | (1211967) | (3270387) |

---

The Company generated net income from operations for the years ended January 1, 2022 and January 2, 2021, of $4,792,661 and $6,035,994, respectively. As of January 1, 2022 and January 2, 2021, the Company had current assets of $12,418,509 and $15,374,611, which included cash and money market funds of $788,294 and $3,307,550, accounts receivable of $2,538,626 and $1,631,921, inventory of $7,588,085 and $9,806,776 and prepaid expenses of $1,503,504 and $628,364, respectively. Total current liabilities were $7,407,423 and $6,286,635, respectively, as of January 1, 2022 and January 2, 2021.

***Operating Activities***

Cash provided by operating activities totaled $2,422,498 for fiscal 2021, an increase of $696,048 as compared to $1,726,450 for fiscal 2020. This increase was driven by reduced inventories and increased accounts payable and accrued expenses, partially offset by reduced note payables associated with our PPP loans and increases in accounts receivable. Inventory reduction was driven by continued clean up and sale of older inventory. Accounts payable and accrued expenses increase was primarily related to the acquisition of our Jasper sawmill and associated assumption of debt. The company recognized a gain on PPP debt forgiveness, thereby eliminating a portion of our notes payable. Increase in accounts receivable primarily attributed to increased end of year sales in fiscal 2021 versus fiscal 2020.

***Investing Activities***

Cash used in investing activities totaled $928,576 for fiscal 2021 as compared to cash provided by investing activities of $2,018,136 for fiscal 2020. Redemptions of our short-term investments of $2,801,210 were utilized to fund investments in property and equipment.

***Financing Activities***

Cash used in financing activities totaled $1,211,967 for fiscal 2021, a decrease of $2,058,420 as compared to $3,270,387 for fiscal 2020.

During the years ended January 2, 2022, and December 31, 2019, the Company met its capital requirements primarily through external financing, the sale of restricted common stock and the issuance of promissory. The decrease was primary attributed to 2020 proceed from notes payable.

**Contractual Obligations**

For the period ended October 1, 2022 , the Company had $42,561 in cash or $745,681 less than it had on January 1, 2022, accounts payable and accrued expenses of $3,954,391 or $1,282,615 more than on January 1, 2022, short and long term lease and note liabilities of $34,993,225 for October 1, 2022 an increase of $12,025,351 than it had on the period ended January 1, 2022, and stockholders' equity of $36,658,442 and $41,265,502 for the periods ended October 1, 2022 and January 1, 2022, respectively.

***Operating and Finance Leases***

We have multiple long-term operating and finance lease obligations related to the right of use (ROU) of equipment in our business. The equipment ROU is an asset amortizing over either the asset's estimated useful life for a finance lease or over the lease term for an operating lease. The original balance is based on the discounted lease payments using a 4% or 10% discount rate for MMI or NSR LLC, respectively. This discount rate is determined based on the entity's incremental borrowing rate. As of October 1, 2022 and January 1, 2022, the cumulative balance on these ROU assets was $8,133,862 and $977,355, respectively.

There is also a liability associated with the right to use these assets under a lease. This liability is initially equal to the ROU asset, the discounted future lease payments. This liability is amortized based on the discount rate used in setting the initial balance with each lease payment. A portion of each lease payment therefore represents interest and the rest is principal applied against this liability. As of October 1, 2022, and January 1, 2022, the cumulative balances on these lease related liabilities was $8,148,596 and $1,000,792, respectively. The portion of these liabilities that are due to be paid within the next 12 months is included in the Company's current liabilities. As of October 1, 2022, and January 1, 2022, the current portion of these lease liabilities was $2,971,083 and $249,186, respectively.

***Short-term Debt Obligations***

The Company has issued a promissory note to an investment company on March 15, 2022. The principal payment of $2,000,000 less a 1.0% origination fee ($20,000) equaling the amount of $1,980,000.00 was received by the Company to fund Working Capital requirements. The Company plans to repay the sum of $2,500,000, including interest, in forty six (46) weekly payments commencing May 2, 2022, each in the amount of $54,347.83. The Company paid this promissory note in full in August 2022.

***Long-term Debt Obligations***

The Company has issued approximately 29 promissory notes, the proceeds of which were used to finance vehicle and equipment purchases. The notes are secured by the assets acquired. Interest rates on these notes range from 0.0% up to 12.0% with monthly payments of principal plus interest and maturities ranging from October 2022 to August 2028. As of October 1, 2022 and January 1, 2022, the total balance on these notes were $11,118,431 and $4,582,897, respectively. See Note 8 to Notes to Financial Statements for the period ended October 1, 2022 for additional details regarding these notes.

The Company also had a Paycheck Protection Plan ("PPP") note outstanding as of January 1, 2022 in an amount of $1,236,080. The note was eligible for forgiveness of both the 1.0% interest it bears and principal provided the proceeds from the note was used for qualifying purposes. On July 2, 2022, $1,236,080 of the PPP loan outstanding as of January 1, 2022 met the qualifications and were forgiven. The Company has recorded the gain on forgiveness of this indebtedness for the period ended October 1, 2022.

There is also an outstanding promissory note issued for the acquisition of a tree service business in September 2018 in the original principal amount of $342,550. It bears interest at 5.0% and requires monthly payments of $5,000, with a $100,000 balloon due in November 2023. The balance on this note as of October 1, 2022, and January 1, 2022, was $153,143 and $195,779, respectively.

The Company issued a $10,650,000 note for the purchase of real estate parcels in Florida and Georgia in August 2021. This note is secured by the real estate and bears interest at 6.0%. Monthly payments of $76,300 commenced in October 2021 with a $9,819,606 balloon payment due in September of 2024. As of October 1, 2022 and January 1, 2022 the balance on this note was $10,365,666 and $10,580,504, respectively. On December 13, 2022, the Company increased the principal amount of this note to $11,500,000 which will be amortized over a period of 20 years with a balloon payment of all remaining amounts of principal and interest due five years from the date of increase. See Item 8 – Legal Proceedings - Ralph Spencer Litigation - Second Complaint. In addition, the real estate located in Jacksonville Florida will be released from the mortgage securing this obligation.

Cumulatively, the balance on these notes as of October 1, 2022 and January 1, 2022, were $26,884,629 and $21,967,082, respectively. The principal due within the next twelve months on these notes as of October 1, 2022 and January 1, 2022, was $7,311,207 and $4,486,461, respectively. In addition, the schedule of future maturities on the above notes are as follows:

---

| | |
|:---|:---|
| Year | Amount |
| 2022 | $1684786 |
| 2023 | 5488188 |
| 2024 | 15021765 |
| 2025 | 2170997 |
| 2026 | 1509302 |
| 2027 & after | 969591 |
|  | $26844629 |

---

***Commitments***

Pursuant to the Spencer Settlement Agreement, the Company agreed to pay Spencer a total of $15,000,000 in exchange for the redemption of 40,000,000 shares of our common stock owned by Spencer and any and all ownership interests in which he may have or claim (the "Redemption Payment"). The Redemption Payment is to be paid to Spencer according to the following schedule: (i) $3,300,000 on October 15, 2021 in exchange for 8,797,800 shares of common stock; and (ii) twenty-four (24) payments of $487,500 on the 15<sup>th</sup> of each month, commencing November 15, 2021, each for 1,300,091.67 common stock shares. On December 13, 2022, the Company agreed with Spencer to redeem 22,101,556 shares of the Company's common stock he owns in exchange for a payment of $1,000,000 subject to Spencer's completion of certain conditions provided for in the December 2022 Spencer Settlement Agreement. On December 27, 2022 these conditions were fulfilled and the Company completed the redemption of the 22,101,556 shares of common stock. See Item 8 – Legal Proceedings - Ralph Spencer Litigation - Second Complaint.

***Receivables Facility***

The Company entered into an accounts receivable factoring arrangement with a financial institution (the "Factor") on March 2, 2022 for a term of three months (the "Facility"). Pursuant to the terms of the arrangement, the Company may transfer to the Factor up to 90% of a maximum of $5,000,000 of its eligible accounts receivable for a maximum of $5,000,000, on a recourse basis (the "Facility Limit"). The eligible accounts receivable consists of accounts receivable generated by sales to certain customers. The Company is obligated to pay a facility fee of 1% of the Facility Limit payable at the time of closing, a service fee of 0.25% on the monthly average balance of the amounts advanced plus an interest rate equal to the prime rate of interest plus 2.75% with a minimum fee of $24,000 per year. The amounts due under the Facility were guaranteed by the Company's subsidiaries. The Receivables Facility was terminated in August 2022 upon payment of all amounts due by the Company under the Facility.

*Sale/Leaseback*

The Company entered into a lease agreement (the "Lease") with a third party financing company (the "Lessor") on August 8, 2022 whereby the Lessor provided the Company with $7,500,000 in financing to purchase equipment located at the Company's facilities in Jasper, Florida, Callahan, Florida and Homerville, Georgia (the "Equipment"). The Equipment was leased back to the Company pursuant to the Lease which includes the following key financial terms: an initial lease term of 30-months from the base period commencement date which period will automatically renew for successive one year periods unless the Company notifies the Lessor at least 150 days prior to the end of the term of its intent to terminate the lease or exercise a buyout option. The Company has the right to buyout the Renewal Period obligations for an amount to be determined by Lessor and the Company. The monthly rental payments due by the Company under the Lease are initially $262,125 plus applicable sales/use and property tax subject to increase by an amount equal to.00006776 for every five basis point increase in thirty-six (36) month U.S. Treasury Notes as of the date of the lease multiplied by $7,500,000. The thirty-six (36) month U.S. Treasury Note yield is used as the basis for the calculation of the increase is 3.56%. In addition, the Company granted the Lessor a security interest in the equipment which is the subject of the Lease.

The sale/leaseback transaction was recorded as a ROU Asset and Liability in accordance with ASC 842 and the fixed assets were reduced accordingly.

**Availability and Use of Cash**

Our short-term liquidity requirements consist primarily of operating expenses and principal and interest payments on outstanding debt, future lease payments, contractual obligations and anticipated capital expenditures discussed below in the section titled "Material Cash Requirements" and elsewhere in this registration statement on Form 10. We do not believe that our available cash, marketable securities, and cash from operations will be sufficient to satisfy our liquidity requirements for at least the next 12 months, including our contractual and other obligations summarized below under "Material Cash Requirements" section. Our long-term liquidity needs consist primarily of operating expenses, including expected increases in SG&A, funds necessary to pay for the interest and principal payment on outstanding debt and the anticipated capital expenditures discussed below. Our liquidity assumptions may prove to be incorrect, and we could utilize our available financial resources sooner than we currently expect.

Based on our current and anticipated material cash requirements, we will need to incur additional indebtedness or issue additional equity to meet our operating needs and planned capital expenditures. Consequently, we may not be able to raise the additional working capital we require on terms acceptable to us or at all. If we are unable to raise additional capital or generate cash flows necessary to expand our operations and invest in developing our new technologies, this could reduce our ability to compete successfully and harm our business, growth and results of operations. While we believe we will meet longer-term expected future cash requirements and obligations through a combination of our existing cash and cash equivalent balances, cash flow from operations, and issuances of equity securities or debt offerings, our future capital requirements and the adequacy of available funds will depend on many factors, including those set forth in the section titled "*Risk Factors - We will require additional funding for our current working capital needs and growth plans, and such funding may result in a dilution of your investment*."

Our future capital requirements will depend on many factors, including:

● the degree and rate of market adoption of our products

● the emergence of new competing technologies and products;

● the costs of R&D activities we undertake to develop and expand our products;

● the costs of commercialization activities, including sales, marketing and manufacturing;

● the level of working capital required to support our growth; and

● our need for additional personnel, technology or other operating infrastructure to support our growth and operations as a public company.

**Material Cash Requirements**

The following table provides a summary of our material cash requirements from known contractual and other anticipated obligations as of October 1, 2022:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(in thousands)*** | **2022** | **2023** | **2024** | **2025** | **2026** | **Thereafter** | **Total** |
| Debt obligations - principal (1) | $1684786 | $5488189 | $13967465 | $3225297 | $1509302 | $969591 | $26844630 |
| Debt obligations - interest payments (1) | 498606 | 1300808 | 904751 | 277392 | 3676 | 1041 | 2986273 |
| Future minimum lease payments (2) | 1172720 | 3532237 | 3498661 | 579459 | 106553 | 220235 | 9109865 |
| Contractual obligations (3) | 3600000 | 4100000 | 500000 |  |  |  | 8200000 |
| Anticipated capital expenditures (4) | 500000 | 14500000 | 3000000 | - | - | - | 18000000 |
|  | $7456112 | $28921234 | $21870877 | $4082147 | $1619530 | $1190868 | $65140768 |

---

*(1) Payment obligations related to the outstanding debt. The interest payments were projected using amortization schedules as of October 1, 2022. See Note 9 "Notes Payable" for additional details.*

*(2) Contractual obligations related to the minimum lease payments and interest on our finance and operating leases. See Note 11 "Leases" for additional details.*

*(3) Contractual obligations related to the VRM licensing agreements.*

*(4) Anticipated capital expenditures to (i) produce pine bark and marketable lumber at our Jasper mill, (ii) install equipment for producing soil products at our Jacksonville facility, (iii) bring our Beaver mill online, and (iv) purchase and install equipment for our Arborcare, mulch and soil operations.*

**Off-balance sheet financing arrangements**

We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

**Critical Accounting Policies**

<u>Basis of Presentation</u>

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The summary of significant accounting policies presented below is designed to assist in understanding the Company's consolidated financial statements. Such consolidated financial statements and accompanying notes are the representations of Company's management, who is responsible for their integrity and objectivity.

<u>Principles of Consolidation</u>

These consolidated financial statements include the accounts of the Company and wholly owned subsidiaries MMI and NSR LLC. Intercompany accounts and transactions have been eliminated upon consolidation.

<u>Use of Estimates</u>

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates which may cause the Company's future results to be affected.

Acquisitions. We account for acquired businesses using the acquisition method of accounting under ASC 805,*Business Combinations* ("ASC 805"), which requires that assets acquired and liabilities assumed be recorded at date of acquisition at their respective fair values. The fair value of the consideration paid, including contingent consideration, is assigned to the underlying net assets of the acquired business based on their respective fair values. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.

Significant judgments are used in determining the estimated fair values assigned to the assets acquired and liabilities assumed and in determining estimates of useful lives of long-lived assets. Fair value determinations and useful life estimates are based on, among other factors, estimates of expected future net cash flows, estimates of appropriate discount rates used to present value expected future net cash flows, the assessment of each asset's life cycle, the impact of competitive trends on each asset's life cycle and other factors. These judgments can materially impact the estimates used to allocate acquisition date fair values to assets acquired and liabilities assumed, and the resulting timing and amounts charged to or recognized in current and future operating results. For these and other reasons, actual results may vary significantly from estimated results.

On January 31, 2020, the Company completed the Mulch Acquisition, on December 30, 2021 it completed the acquisition of DDP and on March 18, 2022 it acquired the Beaver, Washington real estate. Each of these acquisitions were accounted for under ASC 805. See "Note 5 - Acquisitions" in the Notes to the Consolidated Financial Statements included in Item 13 of this Registration Statement on Form 10.

Bad Debt. The Company estimates and reserves for its bad debt exposure based on its experience with past due accounts and collectability, the aging of accounts receivable and its analysis of customer data.

Depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets. Machinery and equipment is generally depreciated over 7 to 10 years. Vehicles are generally depreciated over 5 years.

 

*Goodwill.* Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least annually at year end, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is tested for impairment at the reporting level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause in a future impairment of goodwill at the reporting unit.

Estimated Useful Lives of Property Plant and Equipment. Depreciation of property, plant and equipment is dependent upon estimates of useful lives which are determined through the exercise of judgment. The assessment of any impairment of these assets is dependent upon estimates of recoverable amounts that consider factors such as economic and market conditions and the useful lives of assets.

<u>Revenue</u>

The Company accounts for revenue in accordance with Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers, which was adopted beginning on October 1, 2017, as the Company did not have significant revenues prior to that time. The Company did not record a retrospective adjustment but opted for full retrospective method for all contracts.

The Company recognizes revenue when our performance obligation is satisfied. Our primary performance obligation (the performance of landscape recovery services) is satisfied upon the completion of the landscape services for, or delivery of our products to, our customers. Our products and services are provided for cash or on credit terms. Our credit terms, which are established in accordance with local and industry practices, generally require payment within 30 days of performance. The Company estimates and reserves for our bad debt exposure based on our experience with past due accounts and collectability, the aging of accounts receivable and our analysis of customer data.

<u>Practical Expedients</u>

As part of ASC 606, the Company has adopted several practical expedients including the Company has determined that it need not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between when the Company transfers a promised service to the customer and when the customer pays for that service will be one year or less.

<u>Contract Modifications</u>

There were no contract modifications during the nine months ended October 1, 2022 and year ended January 1, 2022. Contract modifications are not routine in the performance of the Company's contracts.

<u>Cash</u>

The Company considers all highly liquid investments with maturities of nine months or less at the time of purchase to be cash equivalents. There are no cash equivalents as of October 1, 2022 and January 1, 2022.

<u>Accounts Receivable</u>

The Company periodically assesses its accounts receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, an allowance is recorded for that doubtful account. The Company has recorded an allowance for doubtful accounts of $60,000 as of October 1, 2022 and January 1, 2022 and has increased it reserve for doubtful accounts to $134,000 as of December 31, 2022 based upon outstanding receivables.

<u>Property and Equipment</u>

Property and equipment are recorded at cost. Expenditures that enhance the useful lives of the assets are capitalized and depreciated. Machinery, equipment and vehicles are generally depreciated on a straight-line basis over 5 to 10 years.

Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation will be removed from the accounts and the resulting gain or loss, if any, will be reflected in other income.

<u>Impairment of Long-Lived Assets</u>

The Company reviews long-lived assets, including definite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets.

The Company records Its intangible assets at cost in accordance with Accounting Standards Codification ("ASC") 350, Intangibles – Goodwill and Other. Finite lived intangible assets are amortized over their estimated useful life using the straight-line method, which is determined by identifying the period over which the cash flows from the asset are expected to be generated. Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least annually at year end, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is tested for impairment at the reporting level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. During the nine months ended October 1, 2022 and October 2, 2021, the Company did not record a loss on impairment. For the twelve months ended January 1, 2022, the Company did not record a loss on impairment. For the twelve months ended January 2, 2021, a $317,500 loss on the impairment of a supply contract was identified.

<u>Advertising and Marketing Costs</u>

The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses were $77,446 and $191,369 for the three and nine months ended October 1, 2022, respectively, and $102,647 and $212,973 for the three and nine months ended October 2, 2021, respectively, and are recorded in selling, general and administrative expenses on the statement of operations.

<u>Fair Value Measurements</u>

As defined in ASC 820, "Fair Value Measurements and Disclosures," fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable. ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.

<u>Fair Value of Financial Instruments</u>

The carrying value of cash, accounts receivable, other receivables, accounts payable and accrued expenses, payroll liabilities, and advances approximate their fair values based on the short-term maturity of these instruments. The carrying number of notes and convertible promissory notes approximates the estimated fair value for these financial instruments as management believes that such notes constitute substantially all of the Company's debt and interest payable on the notes approximates the Company's incremental borrowing rate.

<u>Net Income (Loss) per Common Share</u>

Basic net loss per common share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the effect of Common Stock equivalents (stock options, unvested restricted stock, and warrants) when, under either the treasury or if-converted method, such inclusion in the computation would be dilutive.

The following table summarizes the securities that were excluded from the diluted per share calculation:

---

| | | |
|:---|:---|:---|
|  | **Nine months Ended** | **Nine months Ended** |
|  | **October 1, 2022** | **October 2, 2021** |
| Convertible notes | -0- | -0- |
| Warrants | -0- | -0- |
| Total | -0- | -0- |

---

<u>Inventory</u>

Inventory is stated at the lower of cost (computed on a first-in, first-out) or net realizable value. The cost of finished goods includes the cost of raw material, direct and indirect labor, and other indirect manufacturing costs.

<u>Stock-Based Compensation</u>

The Company applies the provisions of ASC 718, Compensation—Stock Compensation ("ASC 718"), which requires the measurement and recognition of compensation expense for all stock-based awards made to employees, including employee stock options and warrants, in the statements of operations.

For stock options and warrants issued to employees and members of the board of directors for their services, the Company estimates the grant date fair value of each option using the Black-Scholes option pricing model. The use of the Black-Scholes option pricing model requires management to make assumptions with respect to the expected term of the option, the expected volatility of the Common Stock consistent with the expected life of the option, risk-free interest rates and expected dividend yields of the Common Stock. For awards subject to service-based vesting conditions, including those with a graded vesting schedule, the Company recognizes stock-based compensation expense equal to the grant date fair value of stock options on a straight-line basis over the requisite service period, which is generally the vesting term. Forfeitures are recorded as they are incurred as opposed to being estimated at the time of grant and revised.

Pursuant to ASU 2018-07 Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, the Company accounts for stock options and warrants issued to non-employees for their services in accordance ASC 718. The Company uses valuation methods and assumptions to value the stock options that are in line with the process for valuing employee stock options noted above.

<u>Income Taxes</u>

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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.

The Company utilizes ASC 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. A valuation allowance is recorded when it is "more likely-than-not" that a deferred tax assets will not be realized.

For uncertain tax positions that meet a "more likely than not" threshold, the Company recognizes the benefit of uncertain tax positions in the consolidated financial statements. The Company's practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of operations.

**Recent Accounting Pronouncements**

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. Recognition of the costs of these leases on the income statement will be dependent upon their classification as either an operating or a financing lease. Costs of an operating lease will continue to be recognized as a single operating expense on a straight-line basis over the lease term. Costs for a financing lease will be disaggregated and recognized as both an operating expense (for the amortization of the right-of-use asset) and interest expense (for interest on the lease liability). This standard was effective for the Company's interim and annual periods beginning January 1, 2019, and was applied on a modified retrospective basis to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of ASU 2016–- 02 had a material impact on the Company's consolidated financial statements and related disclosures.

On August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments". The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 is effective for the Company beginning in the first quarter of 2020. Early adoption is permitted, provided that all of the amendments are adopted in the same period. The guidance requires application using a retrospective transition method. The adoption of ASU 2016-15 did not have any impact on the Company's consolidated financial statements and related disclosures.

On January 2017, FASB issued Accounting Standards Update (ASU) 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminated the calculation of implied goodwill fair value. Instead, companies will record an impairment charge based on the excess of a reporting unit's carrying amount of goodwill over its fair value. This guidance simplifies the accounting as compared to prior GAAP. The guidance is effective for fiscal years beginning after December 15, 2019. The Company does not expect the implementation of this new pronouncement to have a material impact on its consolidated financial statements.

On May 10, 2017, the FASB issued ASU 2017-09 "Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting", which provides guidance to clarify when to account for a change to the terms or conditions of a share-based payment award as a modification. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. The adoption of ASU 2017-09 did not have any impact on the Company's consolidated financial statements and related disclosures.

In December 2019, the FASB issued ASU 2019-12, simplifying the Accounting for Income Taxes (Topic 740) as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. This guidance is effective for interim and annual reporting periods beginning within 2021.

All other newly issued but not yet effective accounting pronouncements have been deemed to be not applicable or immaterial to the Company.

**ITEM 3. PROPERTIES**

See "Description of the Business – Facilities" which is incorporated herein by this reference.

**ITEM 4. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

As of March 8, 2023, we had 74,891,090 shares of common stock issued and outstanding. The following table sets forth the beneficial ownership of our common stock as of the date of this registration statement on Form 10 for (i) each member of our board of directors, (ii) each named executive officer (as defined below), (iii) each person known to us to be the beneficial owner of more than 5% of our securities and (iv) the members of our board of directors and our executive officers as a group. Beneficial ownership is determined according to the rules of the SEC. Generally, a person has beneficial ownership of a security if the person possesses sole or shared voting or investment power of that security, including any securities that a person has the right to acquire beneficial ownership within 60 days. Information with respect to beneficial owners of more than 5% of our securities is based on completed questionnaires and related information provided by such beneficial owners as of the date of this registration statement on Form 10. Except as indicated, all shares of our securities will be owned directly, and the person or entity listed as the beneficial owner has sole voting and investment power. The address for each director and executive officer is c/o The Sustainable Green Team, Ltd., 24200 CR-561, Astatula, FL 34705.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Series A Preferred Stock** | **Series A Preferred Stock** | **Total** | **Total** | **Voting** |
| **Name, Position and Address of Beneficial Owner** | **No. Beneficially Owned** | **% of Common Stock**<sup>(1)</sup>** | **No. Beneficially Owned** | **% of Series A Preferred Shares**<sup>(1)</sup>** | **Total No. of Capital Stock Owned** | **% of Total Capital Stock** | **% of Voting Capital Stock** |
| **Directors and Executive Officers** |  |  |  |  |  |  |  |
| Anthony J. Raynor<sup>(2)</sup> | 38524500 | 51.4% | 90 | 100% | 38524590 | 51.4% | 98.9% |
| Joshua R. Wethington | 11459 | \*% |  |  | 500 | \* | \* |
| J. Scott Siefker<sup>(3)</sup> | 25500 | \*% |  |  | 25500 | \* | \* |
| Bradford D. Baker | 1603 | \*% |  |  | 1603 | \* | \* |
| Colleen McAleer | 1603 | \*% |  |  | 1603 | \* | \* |
| All directors and officers as a group (4 persons) | 38564665 | 51.5% | 90 | 100% | 38564755 | 51.5% | 98.9% |
| **Five Percent Shareholders:** |  |  |  |  |  |  |  |
| John Spencer<sup>(4)</sup> | 6000000 | 8.0% |  |  | 6000000 | 8.0% | \* |
| Leslie Schultz | 5000000 | 6.7% |  |  | 5000000 | 6.7% | \* |
| Thistle Investments, LLC<sup>(5)</sup> | 3860000 | 5.2% |  |  | 3860000 | 5.2% | \* |
| VRM Global Holdings Pty Ltd<sup>(6)</sup> | 6500000 | 8.7% |  |  | 6500000 | 8.7% | \* |

---

Notes:

\* less than 1%.

(1) The percentages in the table have been calculated on the basis of treating as outstanding for a particular person, all shares of our capital stock outstanding on March 8, 2023. On March 8, 2023, there were 74,891,090 shares of our common stock outstanding. To calculate a stockholder's percentage of beneficial ownership, we include in the numerator and denominator the common stock outstanding and all shares of our common stock issuable to that person in the event of the exercise of outstanding options and other derivative securities owned by that person which are exercisable within 60 days of March 8, 2023. Common stock options and derivative securities held by other stockholders are disregarded in this calculation. Therefore, the denominator used in calculating beneficial ownership among our stockholders may differ. Unless we have indicated otherwise, each person named in the table has sole voting power and sole investment power for the shares listed opposite such person's name.

(2) Anthony
 Raynor, the Chief Executive Officer of the Company, beneficially owns 90 shares of our Series A Preferred Stock, which represent
 approximately 98.9% of the voting power of our outstanding capital stock. In addition, Mr. Raynor, currently beneficially owns 38,524,500
 shares of our common stock, which represent approximately 51.5% of the total shares of our outstanding capital stock.

(3) J.
 Scott Siefker had been Chief Financial Officer of the Company since 2020 up until his retirement in March 2022.

(4) The
 address for John Spencer is 5650 Indian Mound Ct, Columbus, OH 43213-2628.

(5) The
 address for Thistle Investments, LLC is 387 Corona Street, Ste 555, Denver, CO 80218. Jodi Stevens has sole dispositive
 power over the shares owned by Thistle Investments, LLC.

(6) The
 address for VRM Global Holdings Pty Ltd. is Reward Crescent Bohle QLD, 4818 Australia. Kenneth Michael Bellamy has sole dispositive
 power over the shares owned by VRM Global.

**ITEM 5. DIRECTORS AND EXECUTIVE OFFICERS**

Our bylaws, as amended, (the "**Bylaws**") provide that our board of directors should not have fewer than three directors. Each director shall hold office until the close of the next annual general meeting of our shareholders, or until his or her successor is duly elected or appointed, unless his or her office is earlier vacated. Our board of directors currently consists of seven directors, of whom three are considered to be independent persons. See Item 7—"Certain Relationships and Related Transactions, and Director Independence – Director Independence" for details on the independence of our directors.

The following table sets forth the individuals that are our directors and executive officers as of the date of filing this registration statement on Form 10 and their respective positions.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Anthony J. Raynor | 45 | Chief Executive Officer, President and <br> Chairman of the Board of Directors |
| Joshua R. Wethington  | 47 | Chief Financial Officer |
| Brian Meier | 58 | Chief Operating Officer |
| Bradford D. Baker | 62 | Director |
| Colleen McAleer | 55 | Director |

---

All of our directors will be appointed to hold office until the next annual general meeting of shareholders or until their successors are duly elected or appointed, unless their office is earlier vacated.

The Bylaws provide that the directors may, from time to time, appoint such officers as the directors determine. The directors may, at any time, terminate any such appointment.

**Director and Executive Officer Biographies**

***Anthony "Tony" Raynor.*** Mr. Raynor is the Founder of the Company and has been the President and CEO of the Company since April 2019. Since September 2017, he organized and founded National Storm Recovery, LLC. d/b/a Central Florida Arborcare, a wholly-owned subsidiary of the Company. Prior to September 2017, Mr. Raynor founded multiple successful tree and green waste recycling/processing facilities and services. From 2013 through 2017, Mr. Raynor served as partner of RSR. Mr. Raynor has over 25 years of entrepreneurship in the tree, green waste, storm recovery, and mulch industry. He has personally been responsible for 25 national storm recovery projects and managed over 100 million cubic yards of debris. Following its first year of operations of National Storm Recovery, LLC. d/b/a Central Florida Arborcare, Mr. Raynor continued to build the company's team of employees to manage the growing demand for the company's tree maintenance services. Since then, the company has seen major growth through strategic acquisitions such as the purchase of Mulch Manufacturing, Inc. in 2020. Mr. Raynor is known for dedication not only to the company but the employees and sustainable products. He is always looking for new ways to handle debris with the focus on sustainable solutions.

The Company believes Mr. Raynor's strong expertise in the tree maintenance, disaster recovery, debris hauling, removal, and disposal services industries qualifies him to serve on its board of directors.

***Joshua R. Wethington***. Mr. Wethington was appointed as our Chief Financial Officer in January 2023. He has over twenty-five years of financial, operational, and executive management experience. Mr. Wethington, served as Vice President of Finance, CFO and Treasurer of Hair Club for Men, a hair restoration provider from December 2019 through July, 2022. Mr. Wethington previously served as Vice President and Chief Financial Officer for the North America division of Elizabeth Arden/Revlon Inc., an international skin care and fragrance company between March 2018 and September 2019 and in various financial roles of increasing responsibility with that company between March 2000 and September 2019. Mr. Wethington received a Master of Business Administration from the University of Miami and a Bachelor of Science Degree in Finance from Florida State University.

***Brian Meier.*** Mr. Meier became the Company's Chief Operating Officer in December 2021 and has served Mulch Manufacturing as the manager of its sawmill in Homerville, GA since November 2009. During this time, he managed sales, production and raw material procurement. He was instrumental in designing and implementing upgrades to the facility, resulting in increased sales and profit margins. Mr. Meier also managed the Kempfer Sawmill in St Cloud, FL, from 1993 to 1999 where he was responsible for its sales, procurement, accounting, human resources and safety programs. He was essential in the design and construction of a new sawmill for Kempfer in 2005. From 1989 to 1993, Mr. Meier handled purchasing at Universal Forest Products in Moultrie, GA. From 1987 to 1989, he represented Georgia Pacific in the sale of its products out of their Claxton, GA sawmill. Mr. Meier's diverse background in all facets of the wood products industry enables him to integrate operations, sales, and finance. He has demonstrated his ability to enhance a company's performance by motivating personnel while providing effective solutions resulting in maximized profits. Mr. Meier graduated from Georgia Southern University with a BA in finance in 1987. He has been a functioning member of the Southern Cypress Manufacturers Association since 2000 and served as its President in 2016. He has also served as an Elder in his local church for over 10 years.

***Bradford B. Baker.*** Mr. Baker was appointed to our board of directors in December 2022. From 1997 to 2000 and from 2008 to present, he has been a member of the board of directors of Odyssey Marine Exploration Inc., a deep-ocean mineral resource exploration company where he has served as the Chairman of the Board since January 2012 and Chairman of the Audit Committee from 2009 to the present. He also serves on its Governance Committee and Compensation Committee. Since 1996, Mr. Baker has been the Chief Executive Officer of Myakka Crossings, Inc., a developer of affordable single-family homes in Kansas City, Kansas. From 2018 to 2019, Mr. Baker was the Deputy Secretary of the Kansas Department of Commerce where he was responsible for economic development in opportunity zones in the state of Kansas. From 2004 to 2012, Mr. Baker served as Chief Executive Officer of Nexus Biometrics, Inc., a fingerprint biometric company he founded in 2004. He is also President of Bramar Developers, Inc., a real estate development company that he founded in 1998. He was appointed a White House Fellow by President Ronald Reagan in 1988, was past Secretary of the Resolution Trust Corporation Oversight Board in 1989 and served as Executive Director of the Florida Housing Finance Corporation from 1999 to 2000. He previously held senior executive positions with Comcast Cable from 1994 to 1997 and Sterling Financial, Inc. from 2000 to 2002, and served as a Director and as Chairman of the Audit Committee of Dobi Medical International, Inc. from 2003 through 2007 when it was a U.S. publicly reporting company. He holds a B.S. degree in Business Administration from Nova University.

The Board recognizes that Mr. Baker, as past chief executive officer of a public company, has extensive experience as a senior executive with emphasis in management, operations and finance. His financial expertise and extensive not-for-profit board experience qualifies him as our "audit committee financial expert." Prior to 2003, Mr. Baker served three public companies as a director and as chairman of both Audit and Compensation Committees. He received a presidential appointment, and through his work at the White House, he developed an extensive understanding of government processes and international relations. Mr. Baker's executive leadership roles, board experience and government background provide the Board with insight into best practices of public companies and well-qualifies him as a member of the board of directors and chairman of our audit committee.

***Colleen McAleer.*** Ms. McAleer was appointed to our board of directors in December 2022. She has over 30 years of broad executive experience, ranging from military service to commercial real estate, non-profits and governance. Currently Ms. McAleer leads the Executive Director of the Clallam County Economic Development Council and serves as a Commissioner at the Port of Port Angeles. Colleen brings a unique range of skills, knowledge and talent to a diverse set of responsibilities. Colleen is an acknowledged expert at team leadership and brings a wealth of knowledge and determination to every endeavor that she undertakes. Since May 2019, Ms. McAleer has served as the Executive Director of the Clallam County Economic Development Council which is responsible for defining strategies and programs to improve the economic conditions of Clallam County, Washington. From August 2015 to April 2019, she ran the Washington Business Alliance in Seattle where she led the organization and was involved in securing funding to support vocational training needs for kids in the classroom. Since 2014, Ms. McAleer has been a commissioner at the Port of Port Angeles. From 2003 until 2013, Ms. McAleer owned and operated a commercial real estate brokerage firm in Clallam County Washington. From 1989 to 1998, she served in the U.S. Army as a helicopter and fixed wing pilot and as a military intelligence officer and is a decorated combat veteran of Desert Storm. Ms. McAleer holds a B. S. degree in Computer Science from Florida Institute of Technology, has received training at the U.S. Army Aviation Flight School and is a graduate of the U.S. Military Intelligence Advance Course.

The Board recognizes that Ms. McAleer has extensive experience as a senior executive with emphasis in management, operations and finance. Ms. McAleer's executive leadership roles, experience as Commissioner at the Port of Port Angeles, business experience and government background provide the Board with insight into operational best practices and well-qualifies her as a member of the board of directors and our audit committee.

***Committees of our Board of Directors***

We currently have an audit committee, a compensation committee, and a nominating and corporate governance committee. The members of each are set out below.

---

| | | | |
|:---|:---|:---|:---|
| **Name of Member** | **Audit Committee** | **Compensation Committee** | **Nominating and Corporate Governance Committee** |
| Bradford D. Baker | X<sup>(1)</sup> | X | X |
| Colleen McAleer | X | X<sup>(1)</sup> | X |

---

(1) Denotes chairperson.

A brief description of each committee is set out below.

***Audit Committee***

Our Board of Directors established an audit committee ("Audit Committee") which consists of three independent directors, namely Bradford D. Baker and Colleen McAleer. Mr. Baker shall serve as the chair of the Audit Committee. Mr. Baker qualifies as an audit committee financial expert under SEC rules and as a financially sophisticated audit committee member under the Nasdaq Capital Market rules. Our board of directors adopted a written charter which sets out the Audit Committee's responsibilities, a copy of which has been posted on the Corporate Governance section of our website, at www.sustainablegreenteam.com.

Our Audit Committee is authorized to:

● approve and retain the independent auditors to conduct the annual audit of our financial statements;

● review the proposed scope and results of the audit;

● review and pre-approve audit and non-audit fees and services;

● review accounting and financial controls with the independent auditors and our financial and accounting staff;

● review and approve transactions between us and our directors, officers and affiliates;

● recognize and prevent prohibited non-audit services;

● establish procedures for complaints received by us regarding accounting matters; and

● oversee internal audit functions, if any.

***Relevant Education and Experience***

Each member of the Audit Committee has experience relevant to his or her responsibilities as an Audit Committee member. See Item 5 — "Director and Executive Officers – Director and Executive Officer Biographies" for a description of the education and experience of each Audit Committee member.

***Compensation Committee***

Our Board of Directors established a compensation committee that consists of three directors who are "independent" under the rules of the SEC. This compensation committee will:

● review and determine the compensation arrangements for management;

● establish and review general compensation policies with the objective to attract and retain superior talent, to reward individual performance and to achieve our financial goals;

● administer our incentive compensation and benefit plans and purchase plans;

● oversee the evaluation of the Board of Directors and management; and

● review the independence of any compensation advisers.

Our Board of Directors has adopted a compensation committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and Nasdaq Capital Market.

***Nominating and Corporate Governance Committee***

Our Board of Directors established a nominating and corporate governance committee that consists of three directors who are "independent" under the rules of the SEC. The functions of the nominating and corporate governance committee, among other things, includes:

● identifying individuals qualified to become board members and recommending director;

● nominees and board members for committee membership;

● developing and recommending to our board corporate governance guidelines;

● review and determine the compensation arrangements for directors; and

● overseeing the evaluation of our board of directors and its committees and management.

Our Board of Directors has adopted a nominating and corporate governance committee charter defining the committee's primary duties in a manner consistent with the rules of the SEC and the Nasdaq Capital Market.

**Compensation Committee Interlocks and Insider Participation**

None of our executive officers serve on the board of directors or compensation committee of a company that has an executive officer that serves on our board of directors. No member of our board is an executive officer of a company in which one of our executive officers serves as a member of the board of directors or compensation committee of that company.

**Code of Business Conduct and Ethics**

Our Board of Directors has adopted a code of business conduct and ethics that applies to all of our employees, officers and directors, including those officers responsible for financial reporting. The code of business conduct and ethics is available at our website at www.thesustainablegreenteam.com. We expect that any amendments to the code, or any waivers of its requirement, will be disclosed on our website.

The board does not have standing compensation or nominating committees. The board does not believe these committees are necessary based on the size of our company, the current levels of compensation to our corporate officers and the ownership by our executive officers and directors which gives them control over all matters submitted to a vote of our stockholders. The board will consider establishing audit, compensation and nominating committees and the appointment of independent directors at the appropriate time.

The entire board of directors participates in the consideration of compensation issues and of director nominees. Candidates for director nominees are reviewed in the context of the current composition of the board and our operating requirements and the long-term interests of its stockholders. In conducting this assessment, the board of directors considers skills, diversity, age, and such other factors as it deems appropriate given the current needs of the board and our company, to maintain a balance of knowledge, experience and capability.

The board's process for identifying and evaluating nominees for director, including nominees recommended by stockholders, will involve compiling names of potentially eligible candidates, conducting background and reference checks, conducting interviews with the candidate and others (as schedules permit), meeting to consider and approve the final candidates and, as appropriate, preparing an analysis with regard to particular recommended candidates.

**ITEM 6. EXECUTIVE COMPENSATION**

The following table summarizes all compensation recorded by us in the past two fiscal years ended January 1, 2022, for:

● our principal executive officer or other individual serving in a similar capacity, and

● our two most highly compensated executive officers, other than our principal executive officer, who were serving as corporate officers as of January 1, 2022.

For definitional purposes, these individuals are sometimes referred to as the "named executive officers."

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Fiscal Year Ended** | **Salary ($)** | **Bonus ($)** | **Stock Awards ($)** | **Option Awards ($) <sup>(1)</sup>** | **Non-Equity Incentive Plan Compensation ($)** | **Non-qualified Deferred Compensation Earnings ($)** | **All Other Compensation ($)** | **Total ($)** |
| Anthony J. Raynor <sup>(1)</sup> | 2022 | $211351 | $— | $— | $— | $– $|  | $– $| 211351 |
| *Chief Executive Officer* | 2021 | $175395 | $— |  |  | $– $|  | $– $| 175395 |
| Michael Mete *<sup>(2)</sup>* | 2022 | $191923 | $— | $— | $— | $– $|  | – $| 191923 |
| *Chief Financial Officer* | 2021 | $— | $— | $— | $— | $– $|  | – $|  |
| **Brian Meier <sup>(3)</sup>**  | 2022 | 150000 |  |  |  | – |  | – | 150000 |
| *Chief Operations Officer* | 2021 |  |  |  |  | – |  | – |  |

---

(1) Anthony
 J. Raynor became Chief Executive Officer of the Company on June 10, 2019.

(2) Michael Mete became Chief
 Financial Officer of the Company on February 7, 2022 and resigned on January 31, 2023.

(3) Brian Meier has been Chief
 Operations Officer of the Company since December 2021.

**Outstanding Equity Awards at 2021 Fiscal Year-End**

None.

**2021 Option Exercises and Stock Vested Table**

None.

**Executive Officer and Director Compensation**

The Company intends to develop an executive compensation program that is consistent with its existing compensation policies and philosophies, which are designed to align compensation with our business objectives and the creation of stockholder value, while enabling us to attract, motivate and retain individuals who contribute to the long-term success of the Company.

Decisions on the executive compensation program will be made by the board of directors. The following discussion is based on the present expectations as to the executive compensation program to be adopted by the board of directors. The executive compensation program actually adopted will depend on the judgment of the members of the board of directors and may differ from that set forth in the following discussion.

We anticipate that decisions regarding executive compensation will reflect our belief that the executive compensation program must be competitive in order to attract and retain our executive officers. We anticipate that the compensation committee will seek to implement our compensation policies and philosophies by linking a significant portion of our executive officers' cash compensation to performance objectives and by providing a portion of their compensation as long-term incentive compensation in the form of equity awards.

We anticipate that compensation for our executive officers will have three primary components: base salary, an annual cash incentive bonus and long-term incentive compensation in the form of share-based awards, if any.

***Base Salary***

Our compensation committee will determine base salaries and manage the base salary review process, subject to existing employment agreements.

***Annual Bonuses***

We intend to use annual cash incentive bonuses for the executive officers to tie a portion of their compensation to financial and operational objectives achievable within the applicable fiscal year. We expect that, near the beginning of each year, the compensation committee will select the performance targets, target amounts, target award opportunities and other term and conditions of annual cash bonuses for the executive officers, subject to the terms of any employment agreement. Following the end of each year, the board of directors will determine the extent to which the performance targets were achieved and the amount of the award that is payable to the executive officers. No bonuses were awarded by the board of directors in 2021 or 2020.

***Stock-Based Awards***

We intend to use stock-based awards to reward long-term performance of the executive officers. We believe that providing a meaningful portion of the total compensation package in the form of stock-based awards will align the incentives of its executive officers with the interests of its stockholders and serve to motivate and retain the individual executive officers. Stock-based awards will be awarded under the Incentive Plan, which has been adopted by our Board of Directors and is being submitted to our shareholders for approval at the special meeting in lieu of an annual meeting.

**Executive Employment Agreements**

On February 1, 2020, the Company entered into an employment agreement (the "Employment Agreement") with Anthony J. Raynor, pursuant to which the parties agreed that he will serve as the Chief Executive Officer of the Company and its subsidiaries for a five-year term. Under the terms of the Employment Agreement, Mr. Raynor will receive a salary of $150,000 per year. Mr. Raynor's base salary was increased to $175,000 per year effective as of 2021. During Mr. Raynor's employment and for a period of one year from the end of Mr. Raynor's employment (howsoever occasioned), Mr. Raynor shall not, directly or indirectly, whether as owner, shareholder, director, agent, partner, member, governor, manager, officer, employee or otherwise, participate or support the design, development, manufacture, sale, solicitation of sale, marketing, testing, research or other business activities of the Company that are substantially similar to any of the Company's products. In addition, Mr. Raynor agreed to refrain from engaging in business with the Company's customers in regards to competing products, interfere or disrupt the Company's relationship with its employees, customers, agents, representatives or vendors or employ or attempt to employ any of the Company's current employees. Upon the disability of Mr. Raynor such that he is unable to perform his duties effectively, the Company will continue to pay his compensation for a period of six months to the extent not covered by disability insurance policies. In the event of Mr. Raynor's death, no severance compensation will be paid to Mr. Raynor. In the event we terminate Mr. Raynor's employment without cause Mr. Raynor is entitled to (i) a lump sum in an amount equal to the balance of payments yet due under his employment agreement including the Company-paid benefits for Mr. Raynor and his family through the end of the term or (ii) a lump sum equal to three (3) years compensation at Mr. Raynor's then current salary or wages provide benefits in the kind and amounts provided up to the date of termination for such three (3) year period, including continuation of any Company-paid benefits as described in his employment agreement.

The Company entered into an employment agreement (the "Agreement") dated January 31, 2023 (the "Effective Date"), with Mr. Wethington. The Agreement has an initial five year term (the "Term") and Mr. Wethington's employment with the Company will be on an at-will basis. The Company agreed to pay Mr. Wethington an annual base salary for the initial one year of the term of $250,000, payable in accordance with the Company's payroll policies commencing on the Effective Date (the "Base Salary"). On each successive year during the term of the agreement, the Base Salary will automatically increase by an amount equal to 3%. On the Effective Date, the Company awarded Mr. Wethington 11,459 shares of its unregistered common stock (the "Stock Award"). In addition, the Company agreed to issue to Mr. Wethington a number of shares of Common Stock equal to 10% of his Base Salary divided by the volume weighted average price ("VWAP") of the Common Stock during the 20 trading days prior to the end of the Company's fiscal year end. for each $50,000,000 annual gross revenue increase as compared to the revenue of the Company for the prior fiscal year (a "Revenue Stock Award"). Mr. Wethington shall also be entitled to a Revenue Stock Award for each $50,000,000 increase in annual gross revenue. Further, the Company has agreed to issue Mr. Wethington options to acquire 100,000 shares of Common Stock at an exercise price of $2.00 per share pursuant to an Option Agreement. These stock options will vest 25% on each of the first four anniversaries of the Effective Date. On the renewal of the Initial Term or any Renewal Term for an additional Renewal Term, the Company shall issue to Mr. Wethington options to acquire 75,000 shares of Common Stock at an exercise price per share of 75% of the VWAP as of the date of such issuance. These stock options will vest 1/3<sup>rd</sup> on each anniversary after the date of issuance of such stock options. On January 15 of each year during the Term, the Company agreed to pay to Mr. Wethington a bonus of 40% of the then-applicable Base Salary. Mr. Wethington shall be eligible to receive any additional discretionary bonuses as determined by the Board. Mr. Wethington is eligible to participate in the benefit programs generally available to executive officers of the Company, including reimbursement for reasonable and necessary out-of-pocket business expenses and officer expenses.

In the event of termination of Mr. Wethington by the Company for cause or by Mr. Wethington without good reason as defined in the Agreement or termination due to death or disability, Mr. Wethington shall be compensated for unpaid Base Salary, accrued but unpaid bonus and benefits (then owed or accrued and owed in the future), a pro-rata bonus for the year of termination based on Mr. Wethington's target bonus for such year and the portion of such year in which Mr. Wethington was employed if the termination is due to death or disability, and reimbursement of expenses pursuant to the terms hereon through the effective date of termination, each of which shall be paid within 10 days following the date of the Mr. Wethington termination, and any unvested portion of any equity awards shall immediately be forfeited as of the termination date. In the event Mr. Wethington is terminated by the Company without cause or by Mr. Wethington with good reason as defined in the Agreement, the Company has agreed to pay him his Base Salary, bonuses, and benefits then owed or accrued, and any unreimbursed expenses in each case through the termination date, an amount equal to Two hundred percent of his Base Salary then in effect and any equity awards will, to the extent not already vested, be deemed automatically vested.

In addition, the Agreement obligates Mr. Wethington to (i) maintain the confidentiality of certain intellectual property and information of the Company, (ii) assign to the Company ownership of any intellectual property and proprietary rights developed during the course of his employment, (iii) refrain from engaging in certain competitive activities during the course of his employment and thereafter for a period of two years, and (iv) refrain from soliciting any employees of the Company for employment during the course of his employment and thereafter for a period of three years.

**Director Compensation**

We did not pay any compensation or make any equity awards or non-equity awards to any of our non-employee directors during fiscal year 2021. In December 2022, we entered into Independent Director Agreements with each our non-employee directors, Bradford D. Baker and Colleen McAleer and Ned L. Siegel who resigned as a director on January 25, 2023, pursuant to which they agreed to serve as independent members of our board of directors until such director resigns, is removed as provided in our bylaws or dies. For their services as directors, we agreed to pay each of them a cash fee in the amount of $60,000 per year, payable each calendar quarter during the term, with any fractional calendar quarters to be prorated. In addition, we agreed to issue to each of them shares of our common stock as follows: (i) upon execution of their respective agreements, a number of shares equal to $10,000 divided by the volume weighted average closing price of our common stock during the 20 trading days prior to the date the agreements were signed and (ii) on each anniversary of entering into each of the respective agreements, a number of shares of our common stock equal to $50,000 divided by the volume weighted average closing price of our common stock during the 20 trading days prior to each anniversary of entering into the agreements. In the event a director resigns prior to the end of a full year of service, subject to the final determination and agreement of the board, the shares issuable upon an anniversary of the agreement will be appropriately prorated. In addition, we entered into indemnification agreements with each of our non-employee directors pursuant to which we agreed to indemnify and defend each director to the fullest extent permitted under Delaware law and advance expenses incurred by such directors in connection with any indemnifiable event as provided for in the indemnification agreement. Directors may be reimbursed for travel and other expenses directly related to their activities as directors. Directors who also serve as employees receive no additional compensation for their service as directors. During fiscal year 2021, Anthony Raynor, our Chief Executive Officer, was a member of our board of directors, as well as an employee, and received no additional compensation for his services as a director. See the section titled "Executive Compensation" for more information about the compensation for this individual for fiscal year 2021.

We do not have a formal policy to compensate our non-employee directors.

**Equity Incentive Plans**

***The Sustainable Green Team, Ltd. 2022 Equity Incentive Plan***

In January 2022, our board of directors approved The Sustainable Green Team, Ltd. 2022 Equity Incentive Plan (the "Plan"). Stockholders of the Corporation holding a majority of the voting power of the Corporation undertook an action by written consent in lieu of a meeting of stockholders to approve the Plan.

Our board of directors decided to adopt the Plan to provide the Corporation with additional flexibility to issue stock compensation in various forms to employees and advisors and consultants of the Corporation in an effort to attract and retain such persons as the Corporation grows, for the benefit of all stockholders.

<u>Authorized Shares</u>

The Plan reserves 13,000,000 shares of common stock for issuance under the Plan, via stock options, restricted stock, restricted stock units and other forms of awards. The shares may be authorized but unissued, or required common stock. If an award expires or becomes un-exercisable without having been exercised in full, is surrendered pursuant to an exchange program, or is forfeited to or repurchased by the Company due to the failure to vest, the unpurchased shares which were subject thereto will generally become available for future grant or sale under this Plan, unless this Plan has terminated.

<u>Plan Administration</u>

The Plan will be administered by the board of directors or, upon the board's delegation, a committee thereof.

<u>Merger or Change in Control</u>

The Plan will provide that in the event of a merger or change in control, as defined under our Plan, each outstanding award will be treated as the administrator determines, except that if a successor corporation or its parent or subsidiary does not assume or substitute an equivalent award for any outstanding award, then such award will fully vest, all restrictions on such award will lapse, all performance goals or other vesting criteria applicable to such award will be deemed achieved at 100% of target levels and such award will become fully exercisable, if applicable, for a specified period prior to the transaction. The award will then terminate upon the expiration of the specified period of time. If the service of an outside director is terminated on or following a change of control, other than pursuant to a voluntary resignation, his or her awards will vest fully and become immediately exercisable and all performance goals or other vesting requirements will be deemed achieved at 100% of target levels.

**Compensation Committee Interlocks and Insider Participation**

See Item 7— "Certain Relationships and Related Transactions, and Director Independence – Transactions with Related Persons" for further details.

None of our executive officers served as a member of the compensation committee (or other board committee performing equivalent functions or, in the absence of any such committee, the entire board of directors) of another entity, one of whose executive officers served as our director or on the Compensation Committee, during fiscal 2021. None of our executive officers served as a director of another entity, one of whose executive officers served on the Compensation Committee, during fiscal 2021.

**ITEM 7. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, DIRECTOR INDEPENDENCE**

**Related Party Transactions**

A related party transaction includes any transaction or proposed transaction in which:

● we are or will be a participant;

● the aggregate amount involved exceeds $120,000 in any fiscal year; and

● any related party has or will have a direct or indirect material interest.

Related parties include any person who is or was (since the beginning of the last fiscal year, even if such person does not presently serve in that role) our executive officer or director, any shareholder owning more than 5% of any class of our voting securities or an immediate family member of any such person.

Any potential related party transaction that requires approval will be reviewed and overseen by the Board of Directors which will consider such factors as it deems appropriate to determine whether to approve, ratify or disapprove the related party transaction. The Board of Directors may approve the related party transaction only if it determines in good faith that, under all of the circumstances, the transaction is in the best interests of us and our shareholders.

**Transactions with Related Parties**

**Promissory Notes**

***Mulch Manufacturing, Inc.***

On the January 31, 2020, date of the Mulch Acquisition, there was a balance on a note payable to MM's sole shareholder, John Spencer in the amount of $14,223,046. This note was adjusted for the receivables and inventory of MM that was excluded from the share exchange resulting in a restated and amended $15,402,355 promissory note bearing 4% interest. Also on January 31, 2020, this shareholder placed a $6,240,670 deposit with the Company. To the extent the Company consumed this cash deposit for operations, this shareholder was paid 4% interest. In August 2021 the outstanding balance on these two obligations plus accrued interest as of January 2, 2021, totaled $17,484,728, which was contributed to the capital of the Company. Interest accrued on these obligations for 2021 was credited against interest expense. Accordingly, the balance on the shareholder deposit as of January 1, 2022, and January 2, 2021, was $0 and $2,382,417, respectively. The balance on the restated and amended promissory note was $0 and $15,402,355 as of January 1, 2022, and January 2, 2021, respectively.

In January 2019, MM issued a promissory note to John Spencer in the amount of $6,000,000, $2,000,000 of which was paid during the year ended December 28, 2019. The note bore interest at 3% per annum payable quarterly, required semi-annual principal payments of $300,000 starting on June 1, 2021 and had no maturity date. As part of the Mulch Acquisition, this note was assumed by the Company. In August 2021, the holder of this note exchanged his, at that time, $3,700,000 balance in the note for 6,000,000 Company shares. As of January 1, 2022, and January 2, 2021, the balance on this note was $0 and $4,000,000, respectively.

Total interest expense on the above related party notes and deposit for the year ended January 1, 2022, and January 2, 2021, was approximately $77,000 and $722,000, respectively.

**Director Independence**

For purposes of this registration statement, the independence of our directors is determined under the corporate governance rules of the Nasdaq Stock Market ("**Nasdaq**"). The independence rules of Nasdaq include a series of objective tests, including that an "independent" person will not be employed by us and will not be engaged in various types of business dealings with us. In addition, our board of directors is required to make a subjective determination as to each person that no material relationship exists with us either directly or as a partner, shareholder or officer of an organization that has a relationship with us. It has been determined that our directors, Bradford B. Baker and Colleen McAleer are independent under the independence rules of Nasdaq.

**ITEM 8. LEGAL PROCEEDINGS**

**Legal Proceedings**

*EMC Arbitration and Settlement Agreement*

We are involved in arbitration with Emerging Markets Consulting, LLC ("EMC"), a former service provider of the Company. On October 21, 2020, EMC initiated arbitration against the Company, alleging, among other things, breach of contract related to an agreement entered into between the Company (via NSR LLC) and EMC, in which the Company engaged EMC to provide it with consulting services related to the Company's capital structure, investor relations strategies, and fundraising plans, including the filing of an S-1 registration statement at some point in the future, in exchange for equity compensation in the Company. EMC seeks relief against the Company in the form of the equity compensation pursuant to the agreement (2,000,000 shares of the Company's Common Stock) and damages. The Company denies EMC's allegations and has also initiated counterclaims against EMC for breach of the agreement by EMC, in which it is seeking damages resulting from EMC's breach of its duties under the agreement.

In addition, the Company named in its counterclaim to EMC's claim another similar service provider, Rainmaker Group Consulting, LLC ("Rainmaker"), as a pre-emptive defense against any actions brought by Rainmaker against the Company. Rainmaker engaged by the Company in 2019 to provide similar consulting services as EMC was engaged to provide in exchange for the same compensation (2,000,000 shares of the Company's Common Stock). The Company alleges that Rainmaker breached its agreement with the Company by not providing the services provided in the agreement between the Company and Rainmaker, and therefore Rainmaker is not entitled to any equity compensation by the Company. The Company has taken this action as a defensive measure against potential (in the Company's opinion) frivolous lawsuits brought by Rainmaker against the Company. The Company believes it has adequate defenses in the ongoing arbitration described above being overseen by the American Arbitration Association.

On October 6, 2022, the Company entered into a Settlement Agreement and Mutual Release (the "EMC Agreement") with EMC, Rainmaker, Mr. Painter, Mr. Cohen, and Mr. Lehrer, pursuant to which the parties agreed to amicably resolve all disputes between them without admitting any wrongdoing or liability. In full and final settlement of all claims and counterclaims between the parties, the Company agreed to pay EMC a total sum of $250,000, to be paid out monthly, in $50,000 or $25,000 increments, beginning on October 15, 2022 and ending on April 15, 2023. Rainmaker, Mr. Painter, Mr. Cohen, and Mr. Lehrer acknowledged and agreed that they are not entitled to receive any money or property from the Company or its CEO, Anthony J. Raynor.

In addition, Mr. Raynor, agreed to transfer 100,000 of his personal shares of the Company's Common Stock to EMC and 100,000 of his personal shares of the Company's Common Stock to The Pink Butterfly Foundation, a Florida not for profit corporation ("Pink Butterfly") dedicated to assisting families with acute financial needs accompanying a heartbreaking and devastating sudden loss of a child. Both share transfers are to take place within twenty (20) days of the date of the EMC Agreement.

The share transfers are each subject to a lock-up agreement, dated October 6, 2022, by and between each the Company and EMC and the Company and Pink Butterfly (together, the "Lock- Up Agreements"). Under the terms of the Lock-Up Agreements, EMC and Pink Butterfly cannot sell, transfer, assign or otherwise dispose of the shares received for a period of one (1) year from the date of the Lock-Up Agreement (the "Lock-Up Period"). In the event the Company's Common Stock is listed for trading on the New York Stock Exchange or the NASDAQ Stock Market during the Lock-Up Period, the "Lock-Up Period" shall be adjusted to last until the six (6) month anniversary of the listing date.

If the Company or Mr. Raynor default under the terms of the EMC Agreement by failing to make a payment when due or failing to transfer the shares, EMC must provide notice of the default and the Company will have fifteen (15) business days from the date of the notice to cure the default. If the Company fails to cure the default, a final judgment will be entered against the Company for $250,000, less any payments already made, and/or the cash value of the shares, if the shares have not been transferred in default of the EMC Agreement.

The parties file a joint motion for dismissal of all claims and counterclaims and agreed to request that the American Arbitration Association enter an order staying and abating the arbitration and retaining jurisdiction to enforce the terms of the EMC Agreement. All parties expressly agreed that they are forever barred from instituting, maintaining or asserting any and all claims and causes of action released under the EMC Agreement.

*Ralph Spencer Litigation*

*First Complaint and Settlement.*

On March 25, 2021, the Company filed a civil complaint (the "First Complaint") in Florida's Ninth Judicial Circuit Court in Orange County, Florida against Ralph Spencer ("Spencer"), the former owner and CEO of Mulch Manufacturing, Inc., alleging certain tortious interference with the Company's business operations and dealings. On April 1, 2021, the Company was granted an Emergency Temporary Injunction by the Court enjoining Mr. Spencer from, among other things, further attempts to interfere with the Company's business operations.

On August 16, 2021, the parties entered into a Settlement Agreement and Mutual Release (the "Settlement Agreement"), wherein, among other provisions, all outstanding debt was extinguished. The Company recognized a $17,484,728 capital contribution, credited to Additional Paid-in Capital, from the extinguishment of debt.

The Company also agreed to pay Spencer $25,650,000 plus interest as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issuing
 Spencer a promissory note in the amount of $10,650,000 accruing interest at 6% per annum secured by four properties located in Florida
 and another in Georgia (the "Settlement Note"). The Settlement Note is amortized monthly over 20 years with a balloon
 payment of any outstanding balance on its third anniversary. The Company is current on all Settlement Note obligations as of the
 date of this Registration statement.

(b) paying
 Spencer a total of $15,000,000 in exchange for the redemption of Spencer's 40,000,000 shares of common stock and any and all
 ownership interests in which he may have or claim (the "Redemption Payment"). The Redemption Payment is to be paid to
 Spencer according to the following schedule: (i) $3,300,000 on October 15, 2021 in exchange for 8,797,800 common stock shares; and
 (ii) twenty-four (24) payments of $487,500 on the 15<sup>th</sup> of each month, commencing November 15, 2021, each for 1,300,091.67
 common stock shares. Spencer executed a letter of instruction to the Company's transfer agent, Pacific Stock Transfer, and
 provided all shares to the transfer agent to allow for the immediate redemption upon each payment.

On October 11, 2021, the First Complaint was voluntarily dismissed with prejudice as provided for in the Settlement Agreement.

*Second Complaint*.

On April 19, 2022, the Company together with its wholly owned subsidiary Mulch Manufacturing, Inc., (referred to together as the "Plaintiffs") filed a civil complaint in Florida's Ninth Judicial Circuit Court in Orange County, Florida Case No. 2022-CA-003280-O (the "Second Complaint") against Spencer alleging that (i) Spencer breached the Settlement Agreement by disclosing confidential settlement terms to third parties and violating the non-disparagement provisions by repeatedly disparaging and defaming Anthony Raynor, Tami Raynor, and other officers, agents, and employees of the Plaintiffs, (ii) that Spencer engaged in certain tortious interference with the Company's advantageous business relationships, and (iii) that Spencer engaged in a systematic campaign to defame, disparage and spread false statements about the Company and its employees, agents and representatives, including family members of Company employees.

On December 13, 2022 (the "Effective Date"), the Plaintiffs, Tami Raynor and Anthony Raynor (collectively, "Raynor"), and Ralph Spencer ("Spencer"), by and through his attorney-in-fact Christie Spencer and his court-appointed attorney, Christine J. Lomas, and Christie Spencer, as Ralph Spencer's attorney-in-fact (together with Spencer, the "Spencer Parties") (hereafter "the "Parties" or a "Party"), entered into a Settlement Agreement, (hereafter the "December 2022 Settlement Agreement"), in relation to the Second Complain (the "Business Court Litigation").

As a complete settlement of the dispute that is the subject of the Business Court Litigation, the Parties agreed to the following material terms as provided for in the December 2022 Settlement Agreement:

Terms Regarding Promissory Note, Mortgage, and Deed to Secure Debt. Within five days of the Effective Date, Spencer and RJ Enterprises of Florida, LLC ("RJ Enterprises") agreed to convey certain real estate located in Nassau County, Florida (the "RJ Parcels") to the Company's wholly owned subsidiary Mulch Manufacturing, Inc. ("Mulch Manufacturing") free and clear from any and all interests, mortgages, liens, encumbrances, and clouds on the title, including a $200,000 mortgage from RJ Enterprises to Weber Holdings, Ltd. The RJ Parcels are comprised of two tracts of land, one of which is approximately 2.93 acres and the other is approximately 14.9 acres, both of which are located off of U.S. Highway 301 in Callahan, Florida 32011.

In addition, Spencer agreed to release the real property located at 108 Copeland Street, Jacksonville, Florida 32204 (the "Copeland Parcel") from the mortgage securing a debt in the original principal amount of $10,650,000 issued by the Company in favor of Spencer as provided for in the Settlement Agreement (the "August 2021 Mortgage"). Further, the Parties agreed to amend the August 2021 Mortgage and the underlying promissory note to increase the principal balance to $11,500,000, which amount will be amortized over twenty (20) years with any and all remaining amounts of principal and interest becoming due and payable sixty months after the date of amendment. The August 2021 Mortgage will be further modified to add the RJ Parcels as collateral security and limit the inspection rights of Spencer and certain other persons and restrict Spencer from selling, transferring, assigning, gifting, encumbering, or placing any liens on the August 2021 Mortgage for a period of two years from the date it is amended.

Terms Regarding Common Stock of the Company. According to the terms of the December 2022 Settlement Agreement, the Company agreed with Spencer to redeem 22,101,556 shares of the Company's common stock he owns (the "Spencer Shares") in exchange for the Company's payment to Spencer of $1,000,000. The Company's obligation to pay Spencer is conditioned on Spencer delivering: (i) a letter of instruction directing the Company's transfer agent to rescind the issuance of the Spencer Shares, (ii) a quit claim deed to the RJ Parcels to Mulch Manufacturing and (iii) a release of the Copeland Property from the August 2021 Mortgage. In addition, Spencer has represented that he has no rights, options, or warrants to buy additional shares of common stock or any other stock or ownership interests in the Company, that Spencer has not sold, assigned, transferred, encumbered, or gifted, directly or indirectly, any stock, rights, options, warrants, or other ownership interests in the Company to any person or party and that he has no other ownership interests whatsoever in the Company or Mulch Manufacturing.

The December 2022 Settlement Agreement also provides that the Company shall pay Spencer an aggregate of $1,500,000 in installments of $500,000 on April 1, 2023, August 1, 2023 and December 1, 2023 conditioned on Spencer complying with his obligations under the December 2022 Settlement Agreement (the "Additional Amounts"). On December 27, 2022, these conditions were fulfilled and the Company completed the redemption of the 22,101,556 shares of common stock.

Finally, the December 2022 Settlement Agreement provides that the Parties will execute and file a joint stipulation in Business Court Litigation that provides in the event Ralph Spencer and Christie Spencer fail to comply with certain non-harassment obligations provided for in the December 2022 Settlement Agreement, then the unpaid balance of the Additional Amounts will be paid into the registry of the court or an agreed-upon third party as they become due to be held in escrow and released upon agreement or as directed by an order of the court.

**ITEM 9. MARKET PRICE OF AND DIVIDENDS ON THE REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS**

**Market Information**

Our common stock is currently quoted on the OTCQX tier of the OTC Market Group, Inc. under the symbol "SGTM." The OTC Market is a network of security dealers who buy and sell stock. The dealers are connected by a computer network that provides information on current "bids" and "asks", as well as volume information. The trading of securities on the OTCQX is often sporadic and investors may have difficulty buying and selling our shares or obtaining market quotations for them, which may have a negative effect on the market price of our common stock.

The following table sets forth, for the periods indicated the high and low bid quotations for our common stock. These quotations represent inter-dealer quotations, without adjustment for retail markup, markdown, or commission and may not represent actual transactions.

---

| | | |
|:---|:---|:---|
|  | **High** | **Low** |
| **<u>Fiscal Year 2022</u>** |  |  |
| October 2, 2022 to December 31, 2022 | $5.00 | 1.97 |
| July 3 to October 1, 2022 | $12.00 | 1.00 |
| April 3 to July 2, 2022 | $8.75 | $3.50 |
| January 3 to April 2, 2022 | $12.00 | $6.15 |
| **<u>Fiscal Year 2021</u>** |  |  |
| October 4, 2021 to January 2, 2022 | $9.24 | $1.15 |
| July 4 to October 2, 2021 | $1.73 | $1.00 |
| April 4 to July 3, 2021 | $3.14 | $1.00 |
| January 3 to April 3, 2021 | $7.00 | $1.00 |
| **<u>Fiscal Year 2020</u>** |  |  |
| October 4, 2020 to January 2, 2021 | $1.50 | $0.20 |
| June 28 to October 3, 2020 | $2.50 | $0.55 |
| March 29 to June 27, 2020 | $1.10 | $0.05 |
| January 1 to March 28, 2020 | $0.79 | $0.11 |
| **<u>Fiscal Year 2019</u>** |  |  |
| October 1 to December 28, 2019 | $0.80 | $0.10 |
| July 1 to September 30, 2019 | $2.19 | $0.15 |
| April 1 to June 30, 2019 | $3.00 | $1.00 |
| January 1 to March 31, 2019 | $7.00 | $1.00 |

---

On March 10, 2023, the closing price for our common stock on the OTCQX tier of the OTC Market Group, Inc. was $1.90 per share.

The volume of shares of common stock traded on the OTCQX was insignificant and therefore, does not represent a reliable indication of the fair market value of these shares.

**Holders of Common Stock**

As of March 8, 2023, there were approximately 197 record holders of our common stock. The number of record holders does not include beneficial owners of common stock whose shares are held in the names of banks, brokers, nominees or other fiduciaries.

We have not paid any cash dividends on our common stock and do not currently anticipate paying cash dividends in the foreseeable future. We intend to retain future earnings, if any, for reinvestment in the development and expansion of our business.

**Equity Compensation Plans**

The following table sets forth securities authorized for issuance under The Sustainable Green Team, Ltd. 2022 Equity Incentive Plan (the "Plan") that was approved by our stockholders in January 2022 and compensation plans not approved by our shareholders.

---

| | | | |
|:---|:---|:---|:---|
| <br>**Plan Category** | **Number of securities to be issued upon exercise of outstanding options, warrant and rights**<br>**(#)** | **Weighted-average exercise price of outstanding options, warrants and rights**<br>**($)** | **Number of securities remaining available for future issuance under equity compensation plans**<br>**(#)** |
| **Equity compensation plans approved by security holders** | 13000000 |  | 13000000 |
| **Equity compensation plans not approved by security holders** | – |  | – |
| **Total** | 13000000 |  | 13000000 |

---

**ITEM 10. RECENT SALES OF UNREGISTERED SECURITIES**

The following is a summary of transactions by us since January 1, 2019 involving registered and unregistered issuances and redemption of our common equity securities.

On April 18, 2019, we issued 40,000,000 shares of Common Stock to Anthony Raynor, valued at roughly $0.002 per share with an aggregate value of $78,255 in exchange for his entire ownership interest in NSR LLC. In connection with the merger with Sierra (our predecessor) in April 2019, as part of the merger consideration, 90 shares of Series A Preferred Stock, representing 90% voting control, were transferred to Anthony Raynor, our Chief Executive Officer, for a cash payment of $25,000. At this time, the Company's predecessor, Sierra Gold Corporation ("Sierra") was a shell company having no assets, a negative net book value and was only occasionally traded for an insignificant volume. Based on these facts, management believed it would have been a gross overstatement of value to have used the $1.00 closing price (resulting in an implied $40,000,000 transaction value) listed on the OTC Market on the day of this transaction. Accordingly, the book value of NSR LLC was used for the valuation of the shares for this transaction. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On May 21, 2019, we issued 1,000,000 shares of Common Stock to two private investors as an inducement for them to extend credit to the Company in the form of a $250,000 loan. The transaction was valued at an arm's length transaction price during this period of $0.08 per share with an aggregate value of $80,000.

On June 10, 2019, we issued 400,000 shares of Common Stock to a private investor as an inducement for them to extend credit to the Company in the form of a $100,000 loan. The transaction was valued at an arm's length transaction price during this period of $0.08 per share with an aggregate value of $32,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

Pursuant to a reverse 1:10,000 stock split on August 22, 2019, where shares were rounded up to 100 share lots, 602,636 net shares of common stock were issued to certain of the Company's shareholders. This transaction did not change the equity in the Company.

On November 11, 2019, we issued 1,000,000 shares of Common Stock to Ralph Spencer, at that time the sole shareholder of Mulch Manufacturing, as an inducement for Mulch Manufacturing to extend credit to the Company in the form of a $962,000 loan. As part of the Mulch acquisition on January 31, 2020, these shares were canceled. Therefore, no value was assigned to these shares. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 11, 2019, we issued 500,000 shares of Common Stock to a private investor for services worth the arm's length transaction price during this period of $0.80 per share with an aggregate value of $400,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 11, 2019, we issued 250,000 shares of Common Stock to a private investor for services worth the arm's length transaction price during this period of $0.80 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 26, 2019, we issued 1,250,000 shares of Common Stock to private investor valued at the current solicited subscription price of $0.80 per share with an aggregate value of $1,000,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act

On January 31, 2020, we issued 40,000,000 shares of Common Stock to Ralph Spencer, valued at the $0.15 closing price per share on that day, with an aggregate value of $6,000,000, in exchange for his entire interest in MMI, representing a 100% interest in MMI. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On February 26, 2020, we issued 4,000,000 shares of Common Stock to an entity for services surrounding the completion of the Raynor Exchange based on $0.025 per share agreement with an aggregate value of $100,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On April 1, 2020, 1,000,000 shares of Common Stock previously issued to Ralph Spencer on November 11, 2019, on which no value was recognized, as disclosed above, were canceled in connection with the MMI acquisition.

On May 14, 2020, we issued 25,000 shares of Common Stock to an entity as part of the Raynor Exchange. Since no additional value was associated with this transaction, no additional equity was recognized on these shares which had been based on the equity in NSR LLC as explained above. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On May 20, 2020, we issued 786,045 shares of Common Stock to a private investor upon conversion of a note balance plus accrued interest in the amount of $274,658 held by the investors at a rate of $0.349417 per share in accordance with the convergence feature for the note. These shares were issued in reliance on Section 3(a)(9) of the Securities Act.

On June 12, 2020, we issued 354,724 shares of Common Stock to a private investor upon conversion of debt plus accrued interest in the amount of $110,000 held by the investors at a rate of $0.3101 per share in accordance with the conversion feature for the note. These shares were issued in reliance on Section 3(a)(9) of the Securities Act.

On January 13, 2021, we issued 300,000 shares of Common Stock to a private investor valued at $0.21 per share (closing price on 1/16/20) with an aggregate value of $63,000 as an inducement for a $75,000 prior year loan dated January 16, 2020. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On April 8, 2021, we issued 25,000 shares of Common Stock to a private investor valued at $1.152 per share based on a 5 day trading average preceding January 4, 2021 with an aggregate value of $28,800 as compensation. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On August 26, 2021, we issued 6,000,000 shares of Common Stock to John Spencer valued at $0.6166 per share based on the balance of a $3,700,000 converted note. These shares were issued in reliance on Section 3(a)(9) of the Securities Act.

On October 4, 2021, we issued 125,000 shares of Common Stock to an entity valued at the current solicited subscription price of $0.75 per share with an aggregate value of $93,750 as compensation for consulting services. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On October 22, 2021, we issued 300,000 shares of Common Stock to a private investor valued at the subscription price of $0.75 per share with an aggregate value of $225,000. In connection with this issuance, we also issued warrants to purchase 300,000 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On October 22, 2021, we issued 1,000,000 shares of Common Stock to a private investor valued at the subscription price of $0.75.

On October 22, 2021, 8,797,800 shares of Common Stock, at an agreed price of $0.375 per share with an aggregate value of $3,300,000 previously issued to Ralph Spencer on January 31, 2020, were canceled as part of a series of monthly redemptions. Of this amount, $1,319,670 or the original issue price of $0.15 per share was charged to the Common Stock and Additional Paid-in Capital accounts. The $1,980,330 balance was charged to Retained Earnings.

On October 22, 2021, we issued 133,333 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $100,000. In connection with this issuance, we also issued warrants to purchase 133,333 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 100,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $75,000. In connection with this issuance, we also issued warrants to purchase 100,000 shares of Common Stock to the investor with an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 15, 2021, 1,300,092 shares of Common Stock, at an agreed price of $0.375 per share with an aggregate value of $487,500 previously issued to Ralph Spencer on January 31, 2020, were canceled as part of a series of monthly redemptions. Of this amount, $195,014 or the original issue price of $0.15 per share was charged to the Common Stock and Additional Paid-in Capital accounts. The $292,486 balance was charged to Retained Earnings.

On November 29, 2021, we issued 66,667 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $50,000. In connection with this issuance, we also issued warrants to purchase 66,667 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 66,667 shares of Common Stock to an entity based on a subscription price of $0.75 per share with an aggregate value of $50,000. In connection with this issuance, we also issued warrants to purchase 66,667 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 800,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $600,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 2,000,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $1,500,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 66,667 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $50,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 106,670 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $80,003. In connection with this issuance, we also issued warrants to purchase 106,670 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 29, 2021, we issued 66,667 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $50,000. In connection with this issuance, we also issued warrants to purchase 66,667 shares of Common Stock to the investor at an exercise price of $1.50 per share. These shares and warrants were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 2, 2021, we issued 1,000,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $750,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 14, 2021, 1,300,092 shares of Common Stock, at an agreed price of $0.375 per share with an aggregate value of $487,500 previously issued to Ralph Spencer on January 31, 2020, were canceled as part of a series of monthly redemptions. Of this amount, $195,014 or the original issue price of $0.15 per share was charged to the Common Stock and Additional Paid-in Capital accounts. The $292,486 balance was charged to Retained Earnings.

On December 30, 2021, we issued 200,000 shares of Common Stock to a private investor based on a January 18, 2021, agreement date to issue this stock in exchange for his 100%, and the only membership interest, in Day Dreamer Productions LLC. The closing price on January 18, 2021 was $1.12 per share giving an aggregate value of $224,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 31, 2021, we issued 400,000 shares of Common Stock to a private investor valued at the day's $9.24 closing price with an aggregate value of $3,696,000 in connection with the acquisition of sawmill equipment. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On January 13, 2022, we issued 266,667 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On January 21, 2022, we issued 200,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $150,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act

On March 23, 2022, we issued 1,000,000 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $750,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On April 18, 2022, we issued 266,667 shares of Common Stock to a private investor based on a subscription price of $0.75 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On August 12, 2022, the Company issued 500,000 shares of its common stock with an aggregate value of $1,500,000 as partial consideration for entering into a restricted sublicense agreement with VRM Global Holdings PTY LTD. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On October 5, 2022, we issued to a service provider in exchange for services 3,500,000 shares of Common Stock, an option to acquire 5,000,000 shares of unregistered Common Stock at an exercise price of $2.00 per share and a warrant to purchase up to 2,000,000 shares of Common Stock at an exercise price of $1.00 per share (the "ACCEL Warrant") with an aggregate value of $7,175,000. These securities were issued in reliance on Section 4(a)(2) of the Securities Act

On October 5, 2022, we issued 30,000 shares of Common Stock to an entity with an aggregate value of $61,500 in exchange for services. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On October 12, 2022, we issued 6,000,000 shares of Common Stock to an entity with an aggregate value of $14,400,000 in exchange for interest in VRM Global's U.S. subsidiary, the acquisition of certain inventory of raw materials and other contractual rights as provided for in the VRM Sublicense. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On October 13, 2022, we issued 200,000 shares of Common Stock to a private investor based on a subscription price of $0.50 per share with an aggregate value of $100,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 7, 2022, we issued 100,000 shares of Common Stock to an entity with an aggregate value of $100,000 upon exercise of warrants at a price of $1.00 per share issued in connection with the Accel Media International, Inc. agreement. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 21, 2022, we issued 25,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $50,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On November 23, 2022, we issued 25,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $50,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 2, 2022, we issued 25,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $50,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 2, 2022, we issued 100,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 5, 2022, we issued 50,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $100,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 13, 2022, we issued an aggregate of 50,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $100,000 and warrants to purchase 50,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 13, 2022, we issued an aggregate of 25,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $50,000 and warrants to purchase 25,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 22, 2022, we issued an aggregate of 25,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $50,000 and warrants to purchase 25,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 22, 2022, we issued an aggregate of 50,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $100,000 and warrants to purchase 50,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 23, 2022, we issued 50,000 shares of Common Stock to an entity of our warrants for an aggregate value of $50,000 upon exercise of the warrants at a price of $1.00 per share issued in connection with the Accel Media International, Inc. agreement. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 30, 2022, we issued an aggregate of 35,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $70,000 and warrants to purchase 35,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 30, 2022, we issued an aggregate of 50,000 shares of Common Stock to a private investor based on a subscription price of $2.00 per share with an aggregate value of $100,000 and warrants to purchase 50,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

On December 30, 2022, we issued 100,000 shares of Common Stock to a private investor based on a subscription price of $1.00 per share with an aggregate value of $100,000 and warrants to purchase 100,000 shares of our common stock at an exercise of $3.00 per share, exercisable for a period of one year after the date of issuance. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

In March, 2023, we issued an aggregate of 175,000 shares of Common Stock to two private investor based on a subscription price of $1.00 per share with an aggregate value of $175,000. These securities were issued in reliance on Section 4(a)(2) of the Securities Act.

**ITEM 11. DESCRIPTION OF THE REGISTRANT'S SECURITIES TO BE REGISTERED**

**Description of Our Securities**

The following description of our capital stock is based upon our certificate of incorporation, as amended, our bylaws and applicable provisions of law, in each case as currently in effect. This discussion does not purport to be complete and is qualified in its entirety by reference to our certificate of incorporation, as amended, and our bylaws, copies of which are filed with the SEC as exhibits to this registration statement.

**Authorized Capital Stock**

As of March 8, 2023, our authorized capital stock consists of (i) 245,000,000 shares of common stock, par value $0.0001 per share ("Common Stock"), and (ii) 5,000,000 shares of preferred stock, par value $0.0001 per share ("Preferred Stock"), of which 100 shares were designated as Series A Preferred Stock (the "Series A Preferred"). At March 8, 2023, we had 74,891,090 shares of Common Stock issued and outstanding and 90 shares of Series A Preferred Stock issued and outstanding.

As of March 8, 2023, there were 197 holders of record of our Common Stock and one holder of record of our Series A Preferred Stock.

***Common Stock***

*Voting*

The holders of our common stock are entitled to one vote for each share held on all matters to be voted on by the Company's stockholders. There shall be no cumulative voting.

*Dividends*

The holders of shares of our common stock are entitled to dividends when and as declared by the Board from funds legally available therefor if, as and when determined by the Board of Directors of the Company in their sole discretion, subject to provisions of law, and any provision of the Company's Certificate of Incorporation, as amended from time to time. There are no preemptive, conversion or redemption privileges, nor sinking fund provisions with respect to the common stock.

*Liquidation*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of our affairs, the holders of our common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of or provision for all of our debts and other liabilities.

*Fully Paid and Non-assessable*

All outstanding shares of common stock are, and the common stock to be outstanding upon completion of this offering will be, duly authorized, validly issued, fully paid and non-assessable.

***Warrants***

On October 4, 2022, we issued 2,000,000 warrants to purchase our common stock at a price of $1.00 per share, subject to adjustment as discussed below, at any time commencing on the date the warrants were issued and terminating 90 days thereafter..

The exercise price and number of shares of common stock issuable upon exercise of the warrants may be adjusted in certain circumstances, including in the event of a stock dividend, extraordinary dividend on or recapitalization, reorganization, merger or consolidation.

The warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the Company, with the exercise form attached to the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price, by certified or official bank check payable to us, for the number of warrants being exercised. The warrant holders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their warrants and receive shares of common stock. After the issuance of shares of common stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.

No fractional shares of common stock will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, eliminate such fractional share interest by paying the holder an amount in cash computed by multiplying the fractional interest by the fair market value of a share of our common stock as determined by our board of directors.

**Preferred Stock**

We are authorized to issue up to 5,000,000 shares of preferred stock, of which 100 shares were designated as Series A Preferred Stock. The remaining 4,999,900 shares of undesignated preferred stock may be issued in one or more series, the terms of which may be determined at the time of issuance by our board of directors without further action by stockholders. The terms of any series of preferred stock may include voting rights (including the right to vote as a series on particular matters), preferences as to dividend, liquidation, conversion and redemption rights and sinking fund provisions. The issuance of any preferred stock could materially adversely affect the rights of the holders of our common stock, and therefore, reduce the value of our common stock. In particular, specific rights granted to future holders of preferred stock could be used to restrict our ability to merge with, or sell our assets to, a third party and thereby preserve control by the present management.

Each one share of Series A Preferred Stock has voting rights equal to the quotient of the sum of all outstanding shares of common stock together with any and all other securities of the Company that provide for voting on an "as converted" basis, divided by 0.99.

In connection with the merger with Sierra (our predecessor) in April 2019, as part of the merger consideration, 90 shares of Series A Preferred Stock were transferred to Anthony Raynor, our Chief Executive Officer and Director.

**Piggyback registration rights**

During the period from October 1, 2021 through November 15, 2021, the Company issued 5,440,004 shares of common stock at a purchase price of $0.75 per share (for an aggregate of $4,080,000 of proceeds) to accredited investors in a private placement under Rule 506(b) of Regulation D of the Securities Act. In connection with the issuance of such shares, the Company also issued warrants to purchase 2,373,337 shares of common stock at an exercise of $1.50 per share. The 5,440,004 shares of common stock and the shares to be issued upon the exercise of warrants to purchase 2,373,337 shares of common stock are entitled to piggyback registration rights. If we register any of our securities either for our own account or for the account of other security holders, the holders of these shares are entitled to include their shares in the registration. Subject to certain exceptions, we and the underwriters may limit the number of shares included in the underwritten offering if the underwriters believe that including these shares would adversely affect the offering.

During the period from November 17, 2022 through December 31, 2022, the Company issued 460,000 shares of common stock at a purchase price of $2.00 per share (for an aggregate of $920,000 of proceeds) to accredited investors in a private placement under Rule 506(b) of Regulation D of the Securities Act. In connection with the issuance of such shares, the Company also issued warrants to purchase 460,000 shares of common stock at an exercise of $3.00 per share. The 460,000 shares of common stock and the shares to be issued upon the exercise of warrants to purchase 460,000 shares of common stock are entitled to piggyback registration rights. If we register any of our securities either for our own account or for the account of other security holders, the holders of these shares are entitled to include their shares in the registration. Subject to certain exceptions, we and the underwriters may limit the number of shares included in the underwritten offering if the underwriters believe that including these shares would adversely affect the offering.

**Certain Anti-Takeover Provisions of Delaware Law and our Certificate of Incorporation, as Amended, and Bylaws**

We are subject to the provisions of Section 203 of the DGCL regulating corporate takeovers. This statute prevents certain Delaware corporations, under certain circumstances, from engaging in a "business combination" with:

● a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an "interested stockholder");

● an affiliate of an interested stockholder; or

● an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder.

A "business combination" includes a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:

● our board of directors approves the transaction that made the stockholder an "interested stockholder," prior to the date of the transaction;

● after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded shares of Common Stock; or

● on or subsequent to the date of the transaction, the business combination is approved by our board of directors and authorized at a meeting of our stockholders, and not by written consent, by an affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

Our authorized but unissued common stock and preferred stock are available for future issuances without stockholder approval and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved common stock and preferred stock could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

**Special Meeting of Stockholders**

Our bylaws provide that special meeting of our stockholders may be called only by the President or the Board of Directors.

**Removal of Directors**

Subject to the rights of the holders of any series of Preferred Stock then outstanding, any directors, or the entire Board of Directors, may be removed from office at any time, with cause, but only by the affirmative vote of the holders of at least a majority of the voting power of all of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class. Vacancies on the Board of Directors resulting from such removal may be filled by (1) the shareholders at a special meeting of the shareholders. by the vote of the holders of a majority of the shares entitled to vote at such meeting, or (2) by a majority of the directors then in office, though less than a quorum.

**Our Transfer Agent**

The transfer agent and registrar for our Common Stock is Pacific Stock Transfer Company. The transfer agent and registrar's address is 6725 Via Austi Parkway, Suite 300, Las Vegas, Nevada 89119. and its telephone number is (800) 401-1957.

We have agreed to indemnify Pacific Stock Transfer Company in its roles as transfer agent, its agents and each of its stockholders, directors, officers and employees against all liabilities, including judgments, costs and reasonable counsel fees that may arise out of acts performed or omitted for its activities in that capacity, except for any liability due to any gross negligence, willful misconduct or bad faith of the indemnified person or entity.

**Provisions of our Certificate of Incorporation and Proposed Amended and Restated Certificate of Incorporation that May Have an Anti-Takeover Effect**

Other than our authorized but unissued common stock and "blank-check" preferred stock available for future issuance without stockholder approval, as described under "Common Stock" and "Preferred Stock" above, our certificate of incorporation does not contain any provisions that may be deemed to have an anti-takeover effect or may delay, deter or prevent a tender offer or takeover attempt that a stockholder might consider to be in its best interests, including attempts that might result in a premium being paid over the market price for the shares held by stockholders.

**Delaware Takeover Statute**

In general, Section 203 of the Delaware General Corporation Law prohibits a Delaware corporation that is a public company from engaging in any "business combination" (as defined below) with any "interested stockholder" (defined generally as an entity or person beneficially owning 15% or more of the outstanding voting stock of the corporation and any entity or person affiliated with such entity or person) for a period of three years following the date that such stockholder became an interested stockholder, unless: (1) prior to such date, our board of directors of the corporation approved either the business combination or the transaction that resulted in the stockholder becoming an interested stockholder; (2) on consummation of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the number of shares outstanding those shares owned (x) by persons who are directors and also officers and (y) by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or (3) on or subsequent to such date, the business combination is approved by our board of directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock that is not owned by the interested stockholder.

Section 203 of the Delaware General Corporation Law defines "business combination" to include: (1) any merger or consolidation involving the corporation and the interested stockholder; (2) any sale, transfer, pledge or other disposition of 10% or more of the assets of the corporation involving the interested stockholder; (3) subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder; (4) any transaction involving the corporation that has the effect of increasing the proportionate share of the stock of any class or series of the corporation beneficially owned by the interested stockholder; or (5) the receipt by the interested stockholder of the benefit of any loans, advances, guarantees, pledges or other financial benefits provided by or through the corporation.

**Potential for Anti-Takeover Effects**

While certain provisions of Delaware law may have an anti-takeover effect, these provisions are intended to enhance the likelihood of continuity and stability in the composition of our board of directors and in the policies formulated by the board, and to discourage certain types of transactions that may involve an actual or threatened change of control. In that regard, these provisions are designed to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our shares and, as a consequence, they also may inhibit fluctuations in the market price of our common stock that could result from actual or rumored takeover attempts. Such provisions also may have the effect of preventing changes in our management.

**ITEM 12. INDEMNIFICATION OF DIRECTORS AND OFFICERS**

Our directors and officers are indemnified as provided by Delaware law, our certificate of incorporation, as amended, and our bylaws. We have agreed to indemnify each of our directors and certain officers against certain liabilities, including liabilities under the Securities Act. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers and controlling persons pursuant to the provisions described above, or otherwise, we have been advised that in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than our payment of expenses incurred or paid by our director, officer or controlling person in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling our company pursuant to the foregoing provisions, we have been informed that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**ITEM 13. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA**

The financial statements required to be included in this registration statement appear immediately following the signature page to this registration statement beginning on page F-1.

**ITEM 14. CHANGES IN AND DISAGREEMENTS WITH AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSURE**

None.

**ITEM 15. FINANCIAL STATEMENTS AND EXHIBITS**

(a) The
 Sustainable Green Team, Ltd. Interim Condensed Unaudited Consolidated Financial Statements for the three and nine months ended October
 1, 2022 and October 2, 2021

---

| | |
|:---|:---|
| [Condensed Unaudited Consolidated Balance Sheets as of October 2, 2022 and January 1, 2022](#sus_001) | F-3 |
| [Condensed Unaudited Consolidated Statements of Operations for the three and nine months ended October 1, 2022 and October 2, 2021](#sus_002) | F-4 |
| [Condensed Unaudited Consolidated Statements of Changes in Stockholders' Equity for the nine months ended October 1, 2022 and October 2, 2021](#sus_003) | F-5 - F-6 |
| [Condensed Unaudited Consolidated Statements of Cash Flows for the nine months ended October 1, 2022 and October 2, 2021](#sus_004) | F-7 - F-8 |
| [Notes to Unaudited Condensed Consolidated Financial Statements](#sus_005) | F-9 - F-25 |

---

(b) The
 Sustainable Green Team, Ltd. Consolidated Financial Statements for the Years Ended January 1, 2022 and January 2, 2021

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm](#S1_007) | F-28 |
| [Consolidated Balance Sheets as of January 1, 2022 and January 2, 2021 <u>(Audited)</u>](#S1_001) | F-29 |
| [Consolidated Statements of Operations for the years ended January 1, 2022 and January 2, 2021 <u>(Audited)</u>](#S1_002) | F-30 |
| [Consolidated Statements of Changes in Stockholders' Equity for the years ended January 1, 2022 and January 2, 2021 <u>(Audited)</u>](#S1_003) | F-31 - F-32 |
| [Consolidated Statements of Cash Flows for the years ended January 1, 2022 and January 2, 2021 <u>(Audited)</u>](#S1_005) | F-33 - F-34 |
| [Notes to Audited Consolidated Financial Statements](#S1_006) | F-35 - F-50 |

---

(c) A
 list of exhibits filed with this registration statement is included in the Exhibit Index immediately preceding such exhibits and
 is incorporated herein by reference.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit**<br> **No.** | **Exhibit** |
| 2.1 | [Amended and Restated Share Purchase and Equity Exchange Agreement dated to be effective as of April 18, 2019, among the Company, National Storm Recovery, Inc., National Stormy Recovery, LLC, and Sierra Gold Merger Corp. (Incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex2-1.htm) |
| 2.2 | [Business Combination Agreement dated January 31, 2020, among the Company, Mulch Manufacturing, Inc., Anthony Raynor and Ralph Spencer. (Incorporated by reference to Exhibit 2.2 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex2-2.htm) |
| 3.1 | [Certificate of Incorporation of the Company dated December 31, 2019. (Incorporated by reference to Exhibit 3.1 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex3-1.htm) |
| 3.2 | [Bylaws.\*\*](ex3-2.htm) |
| 4.1 | [Promissory Note dated January 31, 2020, in the principal amount of $21,643,025 from the Company to Ralph Spencer. (Incorporated by reference to Exhibit 4.1 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex4-1.htm) |
| 4.2 | [Subordinated Promissory Note dated January 31, 2019, in the principal amount of $6,000,000 from Mulch Manufacturing, Inc. to John Spencer. (Incorporated by reference to Exhibit 4.2 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex4-2.htm) |
| 4.3 | [Addendum to Subordinated Promissory Note and Security and Pledge Agreements. (Incorporated by reference to Exhibit 4.3 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex4-3.htm) |
| 4.4 | [Form of Warrant. (Incorporated by reference to Exhibit 4.4 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex4-4.htm) |
| 10.1 | [The Sustainable Green Team, Ltd. 2022 Equity Incentive Plan. † (Incorporated by reference to Exhibit 10.1 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-1.htm) |
| 10.2 | [Restricted Sub-License Agreement dated August 9, 2022 between VRM International PTY LTD, VRM Global Holdings PTY LTD and The Sustainable Green Team Ltd. (Incorporated by reference to Exhibit 10.2 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).\*](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-2.htm) |
| 10.3 | [Deed of Variation 1 to Restricted Sub-License Agreement dated October 12, 2022 between VRM International PTY LTD, VRM Global Holdings PTY LTD, VRM Biologik Inc. and The Sustainable Green Team Ltd. (Incorporated by reference to Exhibit 10.3 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).\*](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-3.htm) |
| 10.4 | [Form of Independent Director Agreement. (Incorporated by reference to Exhibit 10.4 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510). †](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-4.htm) |
| 10.5 | [Form of Indemnification Agreement. (Incorporated by reference to Exhibit 10.5 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510). †](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-5.htm) |
| 10.6 | [Employment, Confidentiality, Non-Compete and Non-Solicitation Agreement between The Sustainable Green Team, Ltd. and Anthony Raynor dated as of February 1, 2020. (Incorporated by reference to Exhibit 10.6 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510). †](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-6.htm) |
| 10.7 | [Form of Subscription Agreement. (Incorporated by reference to Exhibit 10.7 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-7.htm) |
| 10.8 | [Corporate Communications Services Agreement among the Company, Day Dreamer Productions, LLC, ACCEL Media International LLC, and FMW Media Works LLC dated as of October 4, 2022. (Incorporated by reference to Exhibit 10.8 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex10-8.htm) |
| 10.9 | [Executive Employment Agreement between The Sustainable Green Team, Ltd. and Joshua Wethington dated as of January 30, 2023. † \*\*](ex10-9.htm) |
| 10.10 | [Contractor Agreement between National Storm Recovery, LLC and Vista Landfill, LLC dated July 1, 2019. \* \*\*](ex10-10.htm) |
| 10.11 | [Amendment to Contractor Agreement between National Storm Recovery, LLC and Vista Landfill, LLC dated December 3, 2021. \*\*](ex10-11.htm) |
| 21.1 | [List of Subsidiaries. (Incorporated by reference to Exhibit 21.1 to the Company's Registration Statement on Form 10 filed with the SEC on January 19, 2023 (File No.: 000-56510).](https://www.sec.gov/Archives/edgar/data/1895251/000149315223001875/ex21-1.htm) |

---

† Includes management contracts and compensation plans and arrangements.

\* Certain confidential information has been excluded from this exhibit because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed.

\*\* Filed herewith.

**SIGNATURES**

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **THE SUSTAINABLE GREEN TEAM, LTD.** | **THE SUSTAINABLE GREEN TEAM, LTD.** |
|  |  | */s/ Anthony J. Raynor* |
|  | By: | Anthony J. Raynor |
|  | Title: | Chief Executive Officer |
| Date: March 13, 2023 |  |  |

---

**THE SUSTAINABLE GREEN TEAM, LTD**. **AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE FISCAL QUARTER ENDED OCTOBER 1, 2022**

**THE SUSTAINABLE GREEN TEAM LTD**. **AND SUBSIDIARIES**

**FOR THE FISCAL QUARTER ENDED OCTOBER 1, 2022**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **<u>Page</u>** |
| [Condensed Unaudited Consolidated Balance Sheets](#sus_001) | F-3 |
| [Condensed Unaudited Consolidated Statements of Operations](#sus_002) | F-4 |
| [Condensed Unaudited Consolidated Statements of Changes in Stockholders' Equity](#sus_003) | F-5 - F- 6 |
| [Condensed Unaudited Consolidated Statements of Cash Flows](#sus_004) | F-7 - F-8 |
| [Notes to Unaudited Condensed Consolidated Financial Statements](#sus_005) | F-9 - F-25 |

---

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES** 

**CONDENSED CONSOLIDATED BALANCE SHEETS** 

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **October 1, 2022** | **January 1, 2022** |
| **ASSETS** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $42561 | $788242 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 52 | 52 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance for doubtful accounts | 2048171 | 2538626 |
| &nbsp;&nbsp;&nbsp;Inventories | 14015714 | 7588085 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 2344675 | 1503504 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets | 18451173 | 12418509 |
| Property and equipment, net | 53822632 | 52049146 |
| Other Assets |  |  |
| &nbsp;&nbsp;&nbsp;Long-term investments | 958718 | 1051702 |
| &nbsp;&nbsp;&nbsp;Goodwill | 224000 | 224000 |
| &nbsp;&nbsp;&nbsp;Intangibles | 76520 | 84440 |
| &nbsp;&nbsp;&nbsp;ROU asset | 8133862 | 977355 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other Assets | 9393100 | 2337497 |
| **Total Assets** | $81666905 | $66805152 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $4156371 | $2671776 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability | 2971083 | 249186 |
| &nbsp;&nbsp;&nbsp;Notes payable | 6007275 | 4486461 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Liabilities | 13134729 | 7407423 |
| Long-term Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities, net of current portion | 5177513 | 751606 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of current portion | 20837354 | 17480621 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Long-term Liabilities | 26014867 | 18232227 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities | 39149596 | 25639650 |
| Commitments and contingencies |  |  |
| Stockholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;Preferred Series A stock, $0.0001 par value, 5,000,000 shares authorized, 90 shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value; 245,000,000 shares authorized; 86,193,300 and 90,460,425 shares issued and outstanding, respectively | 8619 | 9046 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 36361808 | 34536450 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 6146882 | 6620006 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders' Equity | 42517309 | 41165502 |
| **Total Liabilities and Stockholders' Equity** | $81666905 | $66805152 |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **October 1, 2022** | **October 2, 2021** | **October 1, 2022** | **October 2, 2021** |
| Net Revenue | $6425129 | $4898300 | $28978933 | $25887652 |
| Cost of revenue | 2169231 | 5464077 | 23410731 | 24556926 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross profit | 4255898 | (565777) | 5568202 | 1330726 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative | 1950764 | 1238412 | 4522391 | 3461715 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 5640 | 8620 | 16920 | 23220 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1956404 | 1247032 | 4539311 | 3484935 |
| Income (loss) from operations | 2299494 | (1812809) | 1028891 | (2154209) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net | (882284) | 194130 | (1805606) | (291455) |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain (Loss) |  | (198296) | 598300 | (198296) |
| &nbsp;&nbsp;&nbsp;Debt Forgiveness |  | 154928 | 1236080 | 1613128 |
| &nbsp;&nbsp;&nbsp;Gain on sale of fixed assets | (90) |  | 16833 |  |
| &nbsp;&nbsp;&nbsp;Other income, net | 14486 | (3912) | 138755 | (3959) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (867889) | 146850 | 184362 | 1119418 |
| Income (loss) before provision for income taxes | 1431606 | (1665959) | 1213253 | (1034791) |
| Provision for income taxes | 201980 | (325496) | 223948 | (286840) |
| Net Income (loss) | $1229626 | $(1340463) | $989305 | $(747951) |
| Net income (loss) per common share - basic | $0.01 | $(0.01) | $0.01 | $(0.01) |
| Net income (loss) per common share - diluted | $0.01 | $(0.01) | $0.01 | $(0.01) |
| Weighted average shares outstanding - basic | 85287570 | 91932965 | 86829899 | 90288826 |
| Weighted average shares outstanding - diluted | 90927574 | 91932965 | 92469903 | 90288826 |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

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

**(Unaudited)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nine Months Ended October 1, 2022:** | | | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** |<br>**Total** |
| **Balance at January 1, 2022** | 90 | $- | 90460425 | $9046 | $34536450 | $6620006 | $41165502 |
| Stock subscriptions |  |  | 1466667 | 147 | 1099853 |  | 1100000 |
| Stock redemptions |  |  | (3900275) | (390) | (584651) | (877459) | (1462500) |
| Net income |  |  |  |  |  | 76161 | 76161 |
| **Balance at April 2, 2022** | 90 | $- | 88026817 | $8803 | $35051652 | $5818710 | $40879163 |
| Stock subscriptions |  |  | 266667 | 26 | 199973 |  | 200000 |
| Stock redemptions |  |  | (2600183) | (260) | (389767) | (584972) | (975000) |
| Net income |  |  |  |  |  | (316482) | (316482) |
| **Balance at July 2, 2022** | 90 | $- | 85693300 | $8569 | $34861858 | $4917256 | $39787681 |
| Stock subscriptions |  |  | 500000.00 | 50.00 | 1499950 |  | 1500000 |
| Stock redemptions |  |  |  |  |  |  | 0 |
| Net income |  |  |  |  |  | 1229626 | 1229626 |
| **Balance at October 1, 2022** | 90 | $- | 86193300 | $8619 | $36361808 | $6146883 | $42517307 |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nine Months Ended October 2, 2021:** | | | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** |<br>**Total** |
| **Balance at January 2, 2021** | 90 | $- | 89168405 | $8917 | $6725996 | $4392647 | $11127560 |
| Stock issued for 2020 debt inducement |  |  | 300000 | 30 | 62970 |  | 63000 |
| Stock issued for compensation |  |  | 25000 | 3 | 28797 |  | 28800 |
| Net income |  |  |  |  |  | (223426) | (223426) |
| **Balance at April 3, 2021** | 90 | $- | 89493405 | $8950 | $6817763 | $4169221 | $10995934 |
| Net income |  |  |  |  |  | 815937 | 815937 |
| **Balance at July 3, 2021** | 90 | $- | 89493405 | $8950 | $6817763 | $4985158 | $11811871 |
| Related party contribution on debt forgiveness |  |  |  |  | 17484728 |  | 17484728 |
| Note payable converted to stock |  |  | 6000000 | 600 | 3699400 |  | 3700000 |
| Net income |  |  | . |  |  | (1340463) | (1340463) |
| **Balance at October 2, 2021** | 90 | $- | 95493405 | $9550 | $28001891 | $3644695 | $31656136 |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **October 1, 2022** | **October 2, 2021** |
| Cash flows from operating activities: |  |  |
| Net Income (Loss) | $989305 | $(747951) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Provision for (recovery of) doubtful accounts |  | 10051 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 2801391 | 3015127 |
| &nbsp;&nbsp;&nbsp;Common stock issued as compensation |  | 28800 |
| &nbsp;&nbsp;&nbsp;Equity increase in long term investment | 66389 | (371390) |
| &nbsp;&nbsp;&nbsp;Bargain purchase gain | (598300) |  |
| &nbsp;&nbsp;&nbsp;(Gain) loss on sale of fixed assets | (16833) |  |
| &nbsp;&nbsp;&nbsp;Gain on Paycheck Protection Program debt forgiveness | (1236080) | (1613128) |
| &nbsp;&nbsp;&nbsp; Borrowings under factoring | 2427644  | -  |
| &nbsp;&nbsp;&nbsp; Repayments under factoring | (4557013 ) | -  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 2619827 | (300936) |
| &nbsp;&nbsp;&nbsp;Inventory | (6427629) | 2042214 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (841171) | (266029) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 1484595 | 415220 |
| Net cash from (used in) operating activities | (3287875) | 2211978 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of property and equipment | (4405777) | (1054473) |
| &nbsp;&nbsp;&nbsp;Net short-term investment redemptions (purchases) |  | (198635) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 7422659 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term investments | 26595 | 106358 |
| Net cash from (used in) investing activities | 3043477 | (1146750) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Principal payments on leases | (270655) | (145226) |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 5561800 | 1236080 |
| &nbsp;&nbsp;&nbsp;Payment on notes payable | (6154928) | (1047748) |
| &nbsp;&nbsp;&nbsp;Payment on notes payable, related parties |  | (698194) |
| &nbsp;&nbsp;&nbsp;Stock subscriptions | 2800000 |  |
| &nbsp;&nbsp;&nbsp;Stock redemptions | (2437500) | - |
| Net cash provided by (used in) financing activities | (501283) | (655088) |
| Net increase (decrease) in cash | (745681) | 410140 |
| Cash - beginning of period | 788242 | 506287 |
| Cash - end of period | $42561 | $916427 |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS continued**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **October 1, 2022** | **October 2, 2021** |
| Supplemental cash flow information: |  |  |
| Cash paid for: |  |  |
| &nbsp;&nbsp;&nbsp;Interest | $1852653 | $291202 |
| &nbsp;&nbsp;&nbsp;Income taxes | $- | $50 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Note and interest payable contribution to capital | $- | $17484728 |
| &nbsp;&nbsp;&nbsp;Forgiveness on note payable | $1236080 | $- |
| &nbsp;&nbsp;&nbsp;Purchase of plant, property and equipment for notes payable | $6706755 | $10847515 |
| &nbsp;&nbsp;&nbsp;Acquisition of right of use assets for lease obligations | $7418459 | $731426 |
| &nbsp;&nbsp;&nbsp;Stock issued for accrued debt inducement | $- | $63000 |
| &nbsp;&nbsp;&nbsp;Conversion of notes payable to stock | $- | $3700000 |
| &nbsp;&nbsp;&nbsp;Property and equipment bargain purchase recognition | $598300 | $- |

---

The accompanying footnotes are an integral part of these condensed consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM, LTD. AND SUBSIDIARIES**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 – organization and business operations**

*Corporate History*

The Sustainable Green Team, Ltd., (f/k/a Sierra Gold Corp.) (the "Parent" or "SGTM"), a Delaware corporation, conducts business activities principally through its three wholly-owned subsidiaries: National Storm Recovery LLC ("NSR LLC"), a Delaware limited liability company, Mulch Manufacturing, Inc., an Ohio corporation ("MM") and Sierra Gold Merger Corp. ("SGMC"), a Delaware corporation (collectively, the "Company").

The Company was initially formed under the name Alpha Diamond Corporation in the State of Nevada on January 22, 1997. It's undergone multiple name changes over the years and a domicile change to Wyoming on February 15, 2011.

Effective April 18, 2019, Sierra Gold Corp., ("SGCP"), entered into an equity exchange agreement (the "Merger"), as amended on December 31, 2019 with NSR LLC, pursuant to which SGCP acquired all of the membership units of NSR LLC. Upon closing, NSR LLC became a wholly-owned subsidiary of SGCP.

On July 22, 2019, a Certificate of Amendment was filed with the State of Wyoming to change the name of the Company from "Sierra Gold Corporation" to "National Storm Recovery, Inc." and to affect a 1 for 10,000 reverse stock split. At September 11, 2019, the Company's trading symbol changed from "SGCP" to "NSRI".

The stock split decreased the issued and outstanding shares of its common stock from 3,406,865,285 to 602,636 (after rounding up to a 100 share minimum) before SGCP issued 40,000,000 shares of its common stock to the members of NSR LLC as consideration for the equity interest's exchange. As a result of the Merger, NSR LLC members acquired 99% of SGCP's issued and outstanding shares of common stock and SGCP changed its principal focus to providing tree services, debris hauling and removal, biomass recycling, mulch manufacturing, packaging and sales.

The Merger was treated as a reverse recapitalization effected by an equity exchange for financial and reporting purposes since SGCP was deemed to be a shell corporation with nominal operations and no assets at the time of the merger. NSR LLC is considered the acquirer for accounting purposes, and the SGCP's historical financial statements before the Merger have been replaced with the historical financial statements of NSR LLC before the Merger in future filings.

On December 31, 2019, the Company entered into a restructuring as a holding company pursuant to Delaware General Corporation Law ("DGCL") §251(g) known as "the Delaware Holding Company Statute." In order to affect this restructuring NSRI and NSR LLC company each changed domiciles to the State of Delaware by filing Certificates of Conversion. Immediately thereafter, NSRI incorporated SGTM as its wholly-owned subsidiary and SGTM formed Sierra Gold Merger Corp., a Delaware corporation ("SGMC") as its wholly-owned subsidiary. Similarly, NSR LLC issued SGTM, 1,000 limited liability company Common Membership Units. Each of the four parties next executed an Agreement and Plan of Merger (the "Merger Agreement") as well as a Certificate of Merger, the latter of which was filed with the Delaware Secretary of State Division of Corporations on December 31, 2019 (collectively, the "Reorganization"). Pursuant to the terms of the Reorganization, NSRI merged down into SGMC with SGMC surviving as the successor to the reorganization, with all of the assets and liabilities of NSRI merging into SGMC and the separate existence of NSRI ceasing. The shares of SGTM and Membership Interests of NSR LLC, held by NSRI were canceled in the reorganization as part of the restructuring and the shares of NSRI became exchangeable for shares of SGTM on a one for one basis making SGTM the parent to both SGMC and NSR LLC as well as making SGTM the publicly-traded successor to NSRI. After obtaining FINRA approval on July 21, 2020, the Company changed its trading symbol to SGTM.

Effective January 31, 2020, the Company entered into a Business Combination Agreement (the "Mulch Acquisition") pursuant to which MM has become its wholly-owned subsidiary. Under the Mulch Acquisition, all issued and outstanding common stock in MM were converted into an aggregate of 40,000,000 shares of the Company's common stock (See Note 5).

The Company closed on the acquisition of 100% of the membership interests in Day Dreamer Productions LLC (DDP) on December 30, 2021. DDP is in the business of producing informational and promotional videography (See Note 5).

The Company closed on the acquisition of the Beaver, Washington real estate property on March 18, 2022. The Beaver mill is expected to come online in 2024 (See Note 6).

*Business Overview*

The Company is a wholesale manufacturer and supplier of wood-based mulch, soil, and lumber products, selling directly to mass merchandisers, home centers, hardware stores, nurseries, garden centers, convenience stores, food stores and drug stores, in addition to wholesalers and distributors. The Company also provides arbor care and storm recovery services at the residential, commercial, and municipal levels while offering green waste solutions to large- and small-scale waste disposal and recycling companies located throughout the southeastern United States. The Company's subsidiary, Mulch Manufacturing Inc., is the largest provider of cypress mulch in the country.

Subsequent to the period end October 1, 2022, the Company entered into an agreement with Australia-based VRM Biologik Group to bring VRM's world-leading soil moisture technology to the U.S. at scale. HumiSoil® and XLR8 Bio® are soil treatment products that rebuild soil hydration on a cellular level, improving the soil and the vegetation and agricultural products it supports.

The Company will make HumiSoil® and XLR8 Bio® available for home gardens and lawns throughout the U.S. to help relieve water use in cities and to help VRM Biologik Group in its mission to restore productivity in depleted topsoil in 25 percent of the world's arable land.

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

*Basis of Presentation*

The accompanying unaudited condensed consolidated financial statements as of October 1, 2022 and January 1, 2022 and for the three months and nine months ended October 1, 2022 and October 2, 2021 have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position at such date and the operating results and cash flows for such periods. Operating results for the three months and nine months ended October 1, 2022 are not necessarily indicative of the results that may be expected for the entire year or for any subsequent interim period.

The Company has adopted the period end dates conforming to the industry standards used by MM, the Company's largest operating subsidiary. These period end dates follow a 52/53 week fiscal year which ends on the Saturday nearest to December 31.

These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited financial statements included in the Company's Independent Audit for Years Ended January 1, 2022 and January 2, 2021 filed with the OTC Markets on March 31, 2022.

*Principles of Consolidation*

The unaudited condensed consolidated financial statements are presented on a comparative basis. The unaudited condensed consolidated balance sheets at October 1, 2022 and January 1, 2022 includes the accounts of SGTM, NRS LLC, MM, DDP LLC, Rose, and SGMC.

The unaudited condensed consolidated statement of operations for the three and nine months periods ended October 1, 2022 includes the accounts of SGTM, NRS LLC, MM, DDP LLC, Rose, and SGMC. For the three and nine months periods ended October 2, 2021 includes the accounts of SGTM, NRS LLC, MM, Rose, and SGMC.

The unaudited condensed consolidated statement of changes in stockholders' equity for the three and nine months ended October 1, 2022, includes the account balances of SGTM, NRS LLC, MM, DDP LLC, Rose, and SGMC. The three and nine months ended October 2, 2021, includes the account balances of SGTM, NRS LLC, MM, Rose, and SGMC.

The unaudited condensed consolidated statement of cash flows for the period ended October 1, 2022 includes the accounts of SGTM, NRS LLC, MM DDP LLC, and Rose. The nine months ended October 2, 2021, includes the accounts of SGTM, NRS LLC, MM and Rose.

*Use of Estimates*

The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates which may cause the Company's future results to be affected.

*Revenue*

The Company's revenues are derived from two major types of services to clients: landscape recovery services and the manufacturing and sale of landscape mulch. With respect to landscape recovery services, the Company provides tree services, debris hauling and removal and biomass recycling.

The Company recognizes revenue when its performance obligations are satisfied. With respect to landscape recovery services, its performance obligation is satisfied upon the completion of the landscape services for its customers. With respect to the manufacturing and selling of landscape mulch, its performance obligation is satisfied upon delivery to its customers. Services are provided for cash or on credit terms. These credit terms, which are established in accordance with local and industry practices, require payment generally within 30 days of performance or end of season for qualifying orders. The Company estimates and reserves for its bad debt exposure based on its experience with past due accounts and collectability, the aging of accounts receivable and its analysis of customer data.

**Disaggregated Revenues**

Revenue consists of the following by service and product offering for the three and nine months ended October 1, 2022 and October 2, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **October 1, 2022** | **October 2, 2021** | **October 1, 2022** | **October 2, 2021** |
| **Landscaping Recovery Services** | $1215721 | $1078878 | $3318751 | $2655425 |
| **Manufacturing and Sales of Mulch** | $5209408 | $3819422 | $25660182 | $23232227 |
| **Total** | $6425129 | $4898300 | $28978933 | $25887652 |

---

*Cash*

The Company considers all highly liquid short-term instruments that are purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of October 1, 2022 and January 1, 2022.

*Account Receivable*

The Company periodically assesses its accounts receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, an allowance is recorded for that doubtful account. As of October 1, 2022 and January 1, 2022, the Company's allowance for doubtful accounts was $60,000.

*Due from Factor*

The Company has entered into an accounts receivable factoring arrangement with a financial institution (the "Factor") on March 2, 2022 for a term of three months (the "Facility"). Pursuant to the terms of the arrangement, the Company may transfer up to 90% of a maximum of $5,000,000 of its eligible accounts receivable for a maximum of $5,000,000, on a recourse basis (the "Facility Limit"). The eligible accounts receivable consists of accounts receivable generated by sales to certain customers. The Company is obligated to pay a facility fee of 1% of the Facility Limit payable at the time of closing, a service fee of 0.25% on the monthly average balance of the amounts advanced plus an interest rate equal to the prime rate of interest plus 2.75% with a minimum fee of $24,000 per year. The Receivables Facility expires on July 2, 2023. The Company terminated its agreement with the Factor effective August 22, 2022.

As of October 1, 2022, there are $0 receivables Due from factor on the Company's condensed consolidated balance sheet.

*Inventories*

Inventories are stated at the lower of cost or net realizable value, with cost determined by the weighted-average cost method using full absorption costing for manufactured goods.

*Inventory Expensed vs. Capitalized*

The organization is expanding the portfolio into the soil segment through the production of HumiSoil. During 2022 inventories related to the production of this new segment were not recorded resulting in a reduction of operating profit. Specifically, monthly "yard inventory" were not included in cycle counts and product produced including the labor to make this stock was expensed to cost of goods vs. being capitalized.

As part of the year end process the plant managers were directed to count "yard inventory" and include them in physical counts. This activity has resulted in a change in managements estimate for physical inventory.

The above change in management's inventory estimate has three components as follows:

1) Cycle count of yard inventory to be included in the organization's physical inventories.

2) Creation of an intercompany sale between NSR and MMI based upon fair market value of goods sold between the two entities (transaction eliminated in consolidations).

3) Creation of a "blended yard inventory" to include NSR shipments to MMI + Average Cost of remaining inventory (Tipping Fee / Quantity Received).

*Property and Equipment*

Property and equipment are recorded at cost. Expenditures that enhance the useful lives of the assets are capitalized and depreciated.

Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets. Machinery and equipment is generally depreciated over 7 years. Vehicles are generally depreciated over 5 years.

Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, its cost and accumulated depreciation is removed from the accounts and the resulting gain or loss, if any, is reflected in operations.

*Impairment of Long-Lived Assets and Right of Use Asset*

The Company reviews long-lived assets, including finite-lived intangible assets and right of use ("ROU") lease assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets.

*Intangible Assets*

The Company records its intangible assets at cost in accordance with Accounting Standards Codification ("ASC") 350, *Intangibles – Goodwill and Other*. Finite lived intangible assets are amortized over their estimated useful life using the straight-line method, which is determined by identifying the period over which the cash flows from the asset are expected to be generated. During the three and nine months ended October 1, 2022 and October 2, 2021, the Company did not record a loss on impairment.

*Goodwill*

Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least annually at year end, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is tested for impairment at the reporting level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause a future impairment of goodwill at the reporting unit. No impairment of goodwill was recorded by the Company for the three and nine months ended October 1, 2022 and October 2, 2021.

*Advertising and Marketing Costs*

The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses were $77,446 and $191,369 for the three and nine months ended October 1, 2022, respectively, and $102,647 and $212,973 for the three and nine months ended October 2, 2021, respectively, and are recorded in selling, general and administrative expenses on the statement of operations.

*Fair Value Measurements*

ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.

The Company's financial assets and liabilities carried at fair value measured on a recurring basis as of October 1, 2022 and January 1, 2022, consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total fair value at**<br>**October 1, 2022** | **Quoted prices in active markets for identical**<br>**Assets (Level 1)** | **Significant other Observable inputs**<br>**(Level 2)** | **Significant other Unobservable inputs**<br>**(Level 3)** |
| Investment in mutual funds | $52 | $52 | $- | $- |

---

 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Total fair value at**<br>**January 1, 2022** | **Quoted prices in**<br>**active markets**<br>**for identical**<br>**Assets (Level 1)** |<br>**Significant other**<br>**Observable inputs**<br>**(Level 2)** |<br>**Significant other**<br>**Unobservable inputs**<br>**(Level 3)** |
| Investment in mutual funds | $52 | $52 | $- | $- |

---

*Net Income (Loss) per Common Share*

Basic net income (loss) per common share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the effect of Common Stock equivalents (stock options, unvested restricted stock, and warrants) when, under either the treasury or if-converted method, such inclusion in the computation would be dilutive.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine months Ended** | **Nine months Ended** |
|  | **October 1, 2022** | **October 2, 2021** | **October 1, 2022** | **October 2, 2021** |
| Numerator for basic and diluted earnings (loss) per share: |  |  |  |  |
| Net income (loss) | $1229626 | $(1108731) | $989305 | $(313250) |
| Denominator for basic earnings (loss) per share – |  |  |  |  |
| weighted average shares outstanding | 85287570 | 91932965 | 86829899 | 90288826 |
| Convertible notes | - | - | - | - |
| Denominator for diluted earnings (loss) per share – |  |  |  |  |
| weighted average and assumed conversion | 90927574 | 91932965 | 92469903 | 90288826 |
| Net income (loss) per share: |  |  |  |  |
| Basic net income (loss) per share | $0.01 | $(0.01) | $0.01 | $(0.00) |
| Diluted net income (loss) per share | $0.01 | $(0.01) | $0.01 | $(0.00) |

---

*Income Taxes*

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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.

The Company utilizes ASC Topic 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. A valuation allowance is recorded when it is "more likely-than-not" that a deferred tax asset will not be realized. For tax positions that meet a "more likely than not" threshold, the Company recognizes the benefit in the consolidated financial statements.

For the three months ended October 1, 2022 and October 2, 2021, the Company recognized approximately $202,000 tax expense and a $325,000 tax benefit, respectively, and a $224,000 tax expense and $287,000 tax benefit for the nine months ended October 1, 2022 and October 2, 2021 respectively. These tax provisions were based on a 27% effective rate for federal and state income taxes after accounting for permanent differences between book and taxable income.

The Company's practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of operations.

*Recent Accounting Pronouncements*

In December 2019, the FASB issued ASU 2019-12, simplifying the Accounting for Income Taxes (Topic 740) as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. This guidance is effective for interim and annual reporting periods beginning within 2021.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. Recognition of the costs of these leases on the income statement will be dependent upon their classification as either an operating or a financing lease. Costs of an operating lease will continue to be recognized as a single operating expense on a straight-line basis over the lease term. Costs for a financing lease will be disaggregated and recognized as both an operating expense (for the amortization of the right-of-use asset) and interest expense (for interest on the lease liability). This standard was effective for the Company's interim and annual periods beginning January 1, 2019 and was applied on a modified retrospective basis to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of ASU 2016 - 02 had a material impact on the Company's consolidated financial statements and related disclosures.

**NOTE 3 – INVENTORIES**

Inventories are stated at the lower of cost or net realizable value, with cost determined by the weighted-average cost method. The Company's inventories are comprised of the following for the periods ended October 1, 2022 and January 1, 2022:

---

| | | |
|:---|:---|:---|
|  | October 1, 2022 | January 1, 2022 |
| Raw Materials | $9714489 | $4453785 |
| Work in process | 1211640 | 1155439 |
| Finished goods | 3089585 | 1978861 |
|  | $14015714 | $7588085 |

---

**NOTE 4 – PROPERTY AND EQUIPMENT**

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **October 1, 2022** | **January 1, 2022** |
| Machinery and equipment | $18601332 | $20777465 |
| Vehicles | 5290664 | 4383043 |
| Land | 6807573 | 6807573 |
| Buildings | 6255635 | 6234718 |
| Leasehold improvements | 458926 | 283268 |
| Construction in process | 24974438 | 19599106 |
|  | 62388569 | 58085173 |
| Less: accumulated depreciation | (8565937) | (6036027) |
| Property and equipment, net | $53822632 | $52049146 |

---

Total depreciation expense between cost of revenue and operating expenses for the three months and nine months ended October 1, 2022 was $847,452 and $2,531,519, respectively. For the three months and nine months ended October 2, 2021, the total depreciation expense between cost of revenue and operating expenses was $827,616 and $2,428,848, respectively.

**NOTE 5 – ACQUISITIONS**

*Mulch Manufacturing, Inc. Acquisition*

On January 31, 2020, the Company entered into a Business Combination Agreement (the "Mulch Acquisition") with MM and its sole shareholder, Ralph Spencer ("Spencer") (collectively the "MM Parties"), pursuant to which the Company acquired all of the shares of MM. Upon closing, MM became a wholly-owned subsidiary of SGTM.

Pursuant to the Mulch Acquisition, at the effective time of the acquisition:

● All
 of MM's outstanding common stock was exchanged for an aggregate of 40,000,000 shares of SGTM's common stock.

● One
 million shares previously issued to the MM shareholder in connection with the sale of equipment by MM to NSR LLC in November 2019
 were cancelled.

● There
 were specific excluded assets that were retained by Spencer and treated as transferred to Spencer prior to the acquisition consisting
 of cash, real estate, and certain vehicles and equipment. Spencer agreed to allow the Company to use some of the real estate rent-free
 until January 31, 2022, at which time the Company has the option of either leasing or purchasing it at the fair market value (see
 Note 11). The Company has estimated the value of the rent abatement and included it as an ROU asset, as noted below, in the amount
 of $817,503.

● All
 of the existing MM notes, notes, accounts receivable, and inventory at the date of the Mulch Acquisition are included in the acquisition
 and the Company has immediate possession of them by its ownership of MM. However, the 40 million shares of the Company's common
 stock that was issued as consideration was based on these assets being removed from MM prior to the acquisition. The value of these
 assets are valued separately from the share exchange and that certain demand promissory note payable to Spencer in the amount of
 approximately $14 million was adjusted to reflect the value of the inventory, accounts receivable, and any other sums lent by Spencer
 to MM.

The Company accounted for these transactions in accordance with the acquisition method of accounting for business combinations. An independent appraisal, made in February 2020, determined the fair market value of MM's property and equipment to be $17,228,295. Assets and liabilities of the acquired business were included in the unaudited condensed consolidated balance sheets as of October 1, 2022 and January 1, 2022, based on their respective estimated fair values on the date of acquisition. Based on a closing market price of $0.15 per share on the January 31, 2020, business combination date, the assumption of net liabilities plus a bargain purchase recognition and asset write-up, the Company is recognizing the allocation to the accounts of MM as follows:

---

| | | | |
|:---|:---|:---|:---|
| Appraised fair market value of property and equipment |  |  | $17228295 |
| ROU Asset value on property rent abatement |  |  | 817503 |
| Less: Net book value of just MM's property and equipment on January 31, 2020 |  |  | (1883657) |
| Excess of fair market over net book value of MM property and equipment |  |  | 16162141 |
| Value of common stock issued for MM |  | $6000000 |  |
| Net book value of MM on January 31, 2020: |  |  |  |
| Cash | $6240670 |  |  |
| Accounts Receivable and inventory | 15402355 |  |  |
| Property and equipment | 1883657 |  |  |
| Investments | 830000 |  |  |
| Prepaid expenses and other assets | 192361 |  |  |
| Supply agreement | 453750 |  |  |
| Accounts payable and accrued expenses | (1215820) |  |  |
| Notes payable | (25643025) |  |  |
| Net book value (assumed) of MM on January 31, 2020 |  | (1856052) |  |
| Total purchase price, including assumed net liabilities, of MM |  |  | 7856052 |
| Excess of fair value over net book value plus purchase price of MM property and equipment (bargain purchase gain) (a) |  |  | $8306089 |
| Purchase price of MM |  |  | $7856052 |
| Bargain purchase gain and property and equipment write-up |  |  | 8306089 |
| Net book value of MM on January 31, 2020 |  |  | (1856052) |
| Total to be allocated |  |  | $14306089 |
| Allocation of MM purchase price and bargain purchase gain: |  |  |  |
| Cash |  |  | $6240670 |
| Accounts Receivable and inventory |  |  | 15402355 |
| Property and equipment |  |  | 17228295 |
| ROU Assets |  |  | 817503 |
| Investments |  |  | 830000 |
| Prepaid expenses and other assets |  |  | 192361 |
| Supply agreement |  |  | 453750 |
| Accounts payable and accrued expenses |  |  | (1215820) |
| Notes payable |  |  | (25643025) |
|  |  |  | $14306089 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) At
 time of the Mulch acquisition, the Company did not record the fair market value of "free rent" as part of the acquisition
 gain, nor did it record rent expense from January 20, 2020 through August 16, 2021. The Net Present Value of "free rent"
 at the time of the acquisition was $817,503

*Day Dreamer Productions LLC Acquisition*

The Company agreed to acquire 100% of the membership interests of Day Dreamer Productions, LLC. ("DDP") around January 18, 2021, in exchange for 200,000 shares of the Company's common stock. Following performance of due diligence by the Company with regard to DDP's intellectual property, the Company entered into a Membership Interest Exchange Agreement ("MIEA") with the sole member of DDP (the "DDP Member") on November 19, 2021. The Company completed the acquisition on December 30, 2021 when it issued 200,000 shares of its common stock to the DDP Member. The DDP Member was also retained as an employee with responsibility for managing the activities DDP.

We used the acquisition method of accounting under ASC 805 for the acquisition of DDP. The following table summarizes the consideration paid for DDP and the fair value amounts of assets acquired, and liabilities assumed at the acquisition date:

---

| | |
|:---|:---|
| Purchase price | $224000 |
| Total assets | $224000 |
| Total liabilities | $0 |
| Purchase price in excess of net assets acquired | $0 |

---

The purchase price was based on the closing price of $1.12 per share on January 18, 2021, the date the Company and the DDP Member agreed to exchange the DDP membership interest for shares of the Company's common stock. In calculating the purchase price, the Company determined that the closing price of $1.12 per share on January 18, 2021 was an appropriate valuation rather than trading price of the common stock on the November 19, 2021 date when the MIEA was signed reflected because the trading volume was insignificant, the price used was comparable to the share purchase and redemption prices for transactions that occurred prior to the closing and consequently, the public trading price at the time of closing was not a fair measure of value of the Common Stock

*Beaver, Washington Real Estate Acquisition*

On March 18, 2022, the Company acquired the Beaver, Washington real estate property for $1,025,475, of which, $200,000 was previously put down as deposits, and $825,475 was paid at closing. The acquisition of the Beaver, Washington sawmill was closed in December 2021. We expect to begin producing pine bark and marketable lumber at the Beaver mill in 2024.

**NOTE 6 – INTANGIBLE ASSETS**

The below table summarizes the identifiable intangible assets as of October 1, 2022 and January 1, 2022:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **Useful life** | **October 1, 2022** | **January 1, 2022** |
| Supply contract <sup>(1)</sup> |  | 10 | $453750 | $453750 |
| Less: | Accumulated amortization |  | $(59730) | $(51810) |
|  | Impairment |  | $(317500) | $(317500) |
| Total |  |  | $76520 | $84440 |

---

(1) These
 intangible assets were acquired in the acquisition of MM on January 31, 2020.

The weighted average useful life remaining on identifiable intangible assets is 7.50 years.

Amortization of identifiable intangible assets for the three and nine months ended October 1, 2022 was $2,640 and $7,920, respectively. Amortization of identifiable intangible assets for the three and nine months ended October 2, 2021 was $3,520 and $7,920, respectively.

The below table summarizes the future amortization expense for the next five years:

---

| | |
|:---|:---|
| 2022 | $2640 |
| 2023 | $10560 |
| 2024 | $10560 |
| 2025 | $10560 |
| 2026 | $10560 |
| Thereafter | $31640 |
|  | $76520 |

---

**NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expenses consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **October 1, 2022** | **January 1, 2022** |
| Accounts payable | $3569188 | $2350056 |
| Accrued interest | 34392 | 8076 |
| Accrued expenses | 552791 | 313644 |
|  | $4156371 | $2671776 |

---

**NOTE 8 –NOTES PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **Oct 1, 2022** | **Jan 1, 2022** |
| Seller note payable bearing interest at 6.0%, monthly payments of principal and interest of $76,300 beginning October 2021 with a $9,819,606 balloon due September 2024, secured by mortgaged real estate | $10365666 | $10580504 |
| Various third-party obligations secured by assets the Company acquired subject to this indebtedness to various third-party creditors, bearing interest at a 5% average rate. Monthly payments of $122,881 principal and interest beginning January 2022 through December 2024 | 3402433 | 4100000 |
| Unsecured note payable to seller on bulk equipment purchase, bearing 4.0% interest. First $300,000 payment of principal and interest due March 2022, $200,000 payments of principal and interest due quarterly thereafter until paid in full | 934391 | 1400000 |
| Note payable to a bank, secured by equipment, bearing interest at 2.95%. Monthly payments of principal and interest in the amount of $28,698 beginning January 2021 and due through December 2025 | 1065982 | 1297817 |
| Unsecured note payable to a financial institution under the SBA Paycheck Protection Program for MM bearing interest at 1.0%. Monthly payments of principal and interest in the amount of $82,061 beginning August 2022 are due through April 2023. | -0- | 1236080 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $8,750 due August 2020 through July 2025. | 285765 | 342680 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $8,316 due August 2020 through July 2025. | 274505 | 325718 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $7,034 due August 2020 through July 2025. | 293739 | 347452 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $7,392 due February 2021 through January 2026. | 289517 | 334000 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,230 due December 2020 through November 2025. | 191099 | 222887 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due November 2020 through October 2025. | 185497 | 217213 |

---

---

| | | |
|:---|:---|:---|
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due October 2020 through September 2025. | 176300 | 212727.0 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,341 due August 2020 through July 2025. | 175095 | 209200.0 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due August 2020 through July 2025. | 180906 | 208226.0 |
| Note payable to the individual seller of the landscaping and recovery services business to NSR LLC bearing interest at 5%. Monthly payments of $5,000 are due through October 2023 with a $100,000 balloon due November 2023 | 153143 | 195779.0 |
| Non-interest bearing note payable to an equipment financing company with monthly principal payments of $5,842 due December 2021 through November 2023 | 87622 | 134353.0 |
| Non-interest bearing note payable to an equipment financing company with monthly principal payments of $16,460 due May 2021 through April 2022. | -0- | 65838.0 |
| Note payable to an equipment financing company bearing interest at 0.00%. Monthly payments of principal of $6,993 beginning November 2020 are due through October 2022 | 6993 | 69928.0 |
| Note payable to an equipment financing company bearing interest at 9%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $3,933 to $3,993 and extended three months through December 2023 | 60090 | 87611.0 |
| Note payable to an equipment financing company bearing interest at 5.94%. Monthly payments of principal and interest of $1,174 beginning January 2022 through March 2028 | 65944 | 73217.0 |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $2,410 to $2,452 and extended three months through December 2023 | 37181 | 54397.0 |
| Note payable to an equipment financing company bearing interest at 9%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $1,861 to $1,890 and extended three months through December 2023 | 28442 | 41466.0 |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $1,808 to $1,840 and extended three months through December 2023 | 27873 | 40764.0 |
| Note payable to an equipment financing company bearing interest at 11%. Due to five month COVID-19 payment suspension, monthly payments of principal and interest of $1,692 due from August through July 2023 with a $10,152 balloon payment in August 2023 | 25257 | 36446.0 |
| Note payable to an equipment financing company bearing interest at 12%. Due to five month COVID-19 payment suspension, monthly payments of principal and interest of $1,749 due from August 2020 through June 2023 with a $10,496 balloon payment in July 2023 | 24422 | 37220.0 |
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $977 due through August 2024 | 20769 | 28071.0 |

---

---

| | | |
|:---|:---|:---|
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $932 due through September 2024 | 20642 | 27581 |
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $766 due through August 2024 | 16536 | 22395 |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $751 to $765 and extended three months through January 2024 | 12231 | 17512 |
| Note payable to an equipment financing company bearing interest at 10.64%. Monthly payments of principal and interest of $1,060 due through February 2027 | 44665 | -0- |
| Note payable to an individual in the original principal amount of $1,500,000 bearing interest at 25%. Net loan proceeds of $1,477,500. Monthly payments of interest of $46,875 starting on January 12, 2022 and due through October 2022. (Restated: Payment was funded in March 2022 and repaid in same month) | -0-  | -0-  |
| Note payable to an individual in the original principal amount of $100,000 bearing interest at 12%. Loan proceeds were $100,000. Monthly payments of interest of $1,000 starting on March 17, 2022 and due through February 2023. The principal is due no later than February 17, 2023, with no penalty for prepayment (Restated: Payment was funded in March 2022 and repaid in April)  | -0- | -0- |
| Note payable to an individual in the principal amount of $500,000 bearing interest at 12%. Monthly payments of interest of $5,000 starting on March 17, 2022 and due through February 2023. The principal is due no later than February 17, 2023, with no penalty for prepayment | 500000  | -0-  |
| Note payable to a financing company in the original principal amount of $2,000,000 bearing interest at 25.0%. Net loan proceeds were $1,980,000. Weekly payments of principal and interest of $54,348 due through March 2023 | -0- | -0- |
| Note payable to an equipment financing company bearing interest at 11.45%. Monthly payments of principal and interest of $18,121 due through March 2027 | 761998 | -0- |
| Note payable to an equipment financing company bearing interest at 11.45%. Monthly payments of principal and interest of $11,312 due through March 2027 | 475671 | -0- |
| Note payable to an equipment financing company bearing interest at 12.45%. Monthly payments of principal and interest of $7,762 due through April 2027 | 324053 | -0- |
| Note payable to an equipment financing company bearing interest at 12.13%. Monthly payments of principal and interest of $2,610 due through April 2027 | 112674 | -0- |
| Note payable to an equipment financing company bearing interest at 12.00%. Monthly payments of principal and interest of $812 due through June 2028 | 40752 | -0- |
| Note payable to an equipment financing company bearing interest at 10.59%. Monthly payments of principal and interest of $7,067 due through June 2028 | 364059 | -0- |
| Note payable to an equipment financing company bearing interest at 10.20%. Monthly payments of principal and interest of $4,359 due through April 2027 | 193395 | -0- |
| Note payable to an insurance financing company bearing interest at 5.5%. Monthly payments of principal and interest of $21,774 due through February 2023 | 86108 | -0- |
| Note payable to an equipment financing company bearing interest at 11.86%. Monthly payments of principal and interest of $2,588 due through May 2025 | 70714 | -0- |
| Note payable to an equipment financing company bearing interest at 3.61%. Monthly payments of principal and interest of $7,907 due through April 2027 | 393591 | -0- |
| Note payable to an equipment financing company bearing interest at 3.61%. Monthly payments of principal and interest of $6,937 due through April 2027 | 351179 | -0- |

---

---

| | | |
|:---|:---|:---|
| Note payable to an equipment financing company bearing interest at 3.49%. Monthly payments of principal and interest of $7,118 due through April 2027 | 361288 | -0- |
| Note payable to an equipment financing company bearing interest at 7.70%. Monthly payments of principal and interest of $2,416 due through May 2027 | 115030 | -0- |
| Note payable to an equipment financing company bearing interest at 6.99%. Monthly payments of principal and interest of $14,056 due through June 2027 | 680058 | -0- |
| Note payable to an equipment financing company bearing interest at 6.99%. Monthly payments of principal and interest of $2,307 due through June 2027 | 111607 | -0- |
| Note payable to an equipment financing company bearing interest at 6.99%. Monthly payments of principal and interest of $1,468 due through June 2027 | 70996 | -0- |
| Note payable to an equipment financing company bearing interest at 6.99%. Monthly payments of principal and interest of $2,780 due through June 2027 | 134477 | -0- |
| Note payable to a financing company in the original principal amount of $300,000 bearing interest at 10%. Weekly payments of principal and interest of $8,719 due through June 2023 | 220400 | -0- |
| Note payable to a financing company bearing interest at 12%. Weekly payments of principal and interest of $5,346 due through March 2023 | 95072 | -0- |
| Note payable to a financing company in the original principal amount of $75,000 bearing interest at 12%. Net proceeds were $72,000. Weekly payments of principal and interest of $3,000 due through March 2023 | 55090 | -0- |
| Note payable to an equipment financing company bearing interest at 7.5%. Monthly payments of principal and interest of $11,850 due through August 2028 | 677784 | -0- |
| Note payable to an equipment financing company bearing interest at 7.5%. Monthly payments of principal and interest of $2,689 due through August 2028 | 155500 | -0- |
| Note payable to an equipment financing company bearing interest at 7.5%. Monthly payments of principal and interest of $830 due through August 2028 | 47990 | -0- |
| Note payable to an equipment financing company bearing interest at 8.3%. Monthly payments of principal and interest of $5,064 due through August 2027 | 251551 | -0- |
| Note payable to an equipment financing company bearing interest at 8.3%. Monthly payments of principal and interest of $6,474 due through September 2027 | 312840 | -0- |
| Note payable to an equipment financing company bearing interest at 8.3%. Monthly payments of principal and interest of $6,474 due through September 2027 | 312840 | -0- |
| Note payable to a financing company bearing interest at 8.0%. Monthly payments of interest of $8,739 due through August 2025 | 1054300 | -0- |
| Note payable to a financing company bearing interest at 7.5%. Monthly payments of principal and interest of $1,220 due through September 2027 | 60904 | -0- |
| Total notes payable to unrelated parties | 26844629 | 21967082 |
| Short-term portion of notes payable | 6007275 | 4486461 |
| Long-term portion of notes payable | $20837354 | $17480621 |

---

The schedule of future maturities on the above notes are as follows:

---

| | |
|:---|:---|
| Year | Amount |
| 2022 | $1684786 |
| 2023 | 5488188 |
| 2024 | 15021765 |
| 2025 | 2170997 |
| 2026 | 1509302 |
| 2027 & after | 969591 |
|  | $26844629 |

---

The above notes include one Paycheck Protection Program (PPP) loan by MM in the amount of $1,236,080 which was forgiven during the period ended October 1, 2022. The Company has recorded the gain on forgiveness of this indebtedness for the period ended October 1, 2022.

During the period ended October 1, 2022, the Company borrowed an aggregate of $6,011,602 in 20 transactions at interest rates ranging from 3.49% to 12.45% which are payable monthly over an average period of 61.8 months. The proceeds of these borrowings were used primarily for equipment purchases.

**Note 9 - Stockholders' Equity**

*Preferred Stock*

On December 31, 2019, the Company's Board of Directors adopted articles of incorporation in the state of Delaware authorizing, without further vote or action by the stockholders, to create out of the unissued shares of the Company's common stock, $0.0001 par value Preferred Stock. The Board of Directors is authorized to establish, from the authorized and unissued shares of Preferred Stock, one or more classes or series of shares, to designate each such class and series, and fix the rights and preferences of each such class of Preferred Stock; which class or series shall have such voting powers, such preferences, relative, participating, optional or other special rights, and such qualifications, limitations or restrictions as shall be stated and expressed in the resolution or resolutions providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board of Directors prior to the issuance of any shares thereof. The articles of incorporation and designation authorizes the issuance of 5,000,000 shares of Preferred Stock, of which 100 shares have been designated as Series A Preferred Stock, of which 90 of Series A are issued and outstanding as of October 1, 2022. Each holder of outstanding shares of Series A Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Series A Preferred Stock held by such holder as of the record date for determining stockholders entitled to vote on such matter, with each share casting a vote equal to: the quotient of the sum of all outstanding shares of common stock together with any and all other securities of the Company that provide for voting on an "as converted" basis divided by 0.99.

*Equity Transactions During the Period*

The following issuances of common stock affected the Company's Stockholders' Equity:

On January 13, 2021, the Company issued 300,000 shares in satisfaction of a 2020 accrual for debt financing cost.

On March 5, 2021, the Company issued 25,000 shares to an employee as compensation.

On August 16, 2021, the Company recognized a $17,484,728 capital contribution from the extinguishment of debt.

On August 25, 2021, the Company issued 6,000,000 shares in exchange for a $3,400,000 note.

On October 4, 2021, the Company issued 125,000 shares for consulting service compensation.

Between October 15, and December 15, 2021, the Company redeemed 11,397,984 shares pursuant to a stock repurchase agreement (see Note 12).

Between October and December 15, 2021, the Company issued 5,640,004 shares pursuant to subscription agreements at a price of $0.75 per share. These agreements provided for piggyback registration rights on a potential future registration of Company stock. The agreements also provided stock warrants equal to the number of subscribed shares. These warrants can be exercised at a price of $1.50 per share and expire after one year. No allocation of proceeds was made to the warrants since the subscribed shares of common stock were issued at a price below that of the publicly traded shares.

On December 30, 2021, the Company issued 200,000 shares pursuant to an agreement to acquire 100% of the membership interest in Day Dreamer Production, LLC.

On December 31, 2021, the Company issued 400,000 shares to acquire equipment in Beaver, WA.

On January 16, 2022, we issued 266,667 shares of Common Stock based on a subscription price of $0.75 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On January 20, 2022, we issued 200,000 shares of Common Stock based on a subscription price of $0.75 per share with an aggregate value of $150,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act

On March 23, 2022, we issued 1,000,000 shares of Common Stock based on a subscription price of $0.75 per share with an aggregate value of $750,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On April 18, 2022, we issued 266,667 shares of Common Stock based on a subscription price of $0.75 per share with an aggregate value of $200,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

On August 12, 2022, we issued 500,000 shares of Common Stock based on a subscription price of $3.00 per share with an aggregate value of $1,500,000. These shares were issued in reliance on Section 4(a)(2) of the Securities Act.

**NOTE 10 – LEASES**

A lease is defined as a contract that conveys the right to control the use of identified tangible property for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASC Topic 842 which primarily affected the accounting treatment for operating and finance lease agreements in which the Company is the lessee including Company leases of vehicles and equipment for use in the storm and disaster recovery work. The Company elected to not recognize ROU assets and lease liabilities arising from short-term leases with initial lease terms of twelve months or less (deemed immaterial) on the accompanying consolidated balance sheets.

ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on the effective interest plus: for finance type leases, straight-line amortization of the asset's original ROU over its lease term; or, for operating leases, the effective amortization on the lease liability. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

When measuring lease liabilities for leases that were classified as operating and financing leases as of January 1, 2019, NSR LLC discounted lease payments using its estimated incremental borrowing rate of 10% at January 1, 2019. Since April 1, 2020, MM has entered into operating leases using its incremental borrowing rate of 4% to discount lease payments.

The following table presents supplemental lease information:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Nine Months Ended | Nine Months Ended |
| Lease cost | October 1, 2022 | October 2, 2021 | October 1, 2022 | October 2, 2021 |
| Finance lease cost |  |  |  |  |
| Amortization on ROU assets | $84621 | $17792 | $120206 | $61481 |
| Interest on lease liabilities | 21328 | 4594 | 28101 | 22463 |
| Operating lease cost | 243406 | 1788 | 382601 | 5364 |
| Short-term lease cost | 108650 | 104203 | 272121 | _<u>378,607</u> |
| Total lease cost | $458005 | $132656 | $803029 | $467915 |
| Cash paid for amounts included in the measurement of lease liabilities for: |  |  |  |  |
| Finance leases: |  |  |  |  |
| Financing cash flows | $40184 | $25942 | $63550 | $80402 |
| Operating leases: |  |  |  |  |
| Operating cash flows | $313003 | $1788 | $382601 | $5364 |
| Weighted-average remaining lease term: |  |  |  |  |
| Finance leases |  |  | 2.0 years | 2.1 years |
| Operating leases |  |  | 3.7 years | 5.1 years |
| Weighted-average discount rate: |  |  |  |  |
| Finance leases |  |  | 10.0% | 10.0% |
| Operating leases |  |  | 4.2% | 4.1% |

---

Supplemental balance sheet information related to leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Financial Statement Line Item** | **October 1, 2022** | **Jan 1, 2022** |
| Assets: |  |  |  |
| Operating lease assets |  | $8053555 | $848840 |
| Finance lease assets |  | 80307 | 128515 |
| **Total leased assets** | ROU asset | $8133862 | $977355 |
| Liabilities: |  |  |  |
| Current: |  |  |  |
| Operating lease assets |  | $2924602 | $183874 |
| Finance lease assets |  | 46481 | 65312 |
|  | Current portion of lease liability | 2971083 | 249186 |
| Non-current |  |  |  |
| Operating lease assets |  | 5126165 | 664966 |
| Finance lease assets |  | 51348 | 86639 |
|  | Lease liabilities, net of current portion | 5177513 | 751605 |
| **Total lease liabilities** |  | $8148596 | $1000791 |

---

As of October 1, 2022, remaining maturities of lease liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | Finance | Operating |
| 2022 | $13543 | $1159177 |
| 2023 | 54172 | 3478065 |
| 2024 | 40629 | 3458032 |
| 2025 |  | 579459 |
| 2026 |  | 106553 |
| 2027 and thereafter | - | 220235 |
| Total | $108344 | $9001521 |
| Amount representing interest | (10515) | (947966) |
| Lease liability | $97829 | $8053555 |

---

In conjunction with the Mulch Acquisition on January 31, 2020, disclosed in Note 6, the Company was provided benefit use of certain parcels of real property / facilities owned by Spencer for a period of two years which had a land value of $10,650,000 (Note 11 - "Settlement Note"). The annual rent expense was determined to be 4% of the property value or $426,000 annually. At time of the Mulch acquisition, the Company did not record the fair market value of "free rent" as part of the acquisition gain, nor did it record rent expense from January 20, 2020 through August 16, 2021. The Net Present Value of "free rent" at the time of the acquisition was $817,503 (using a 10% discount rate). On August 16, 2021, the Company purchased said property. The result of the transaction does not have an impact to the Company's financial statements in the current period and all beginning balances from January 1, 2021 reflect the proper amounts.

**NOTE 11 – COMMITMENTS AND CONTINGENCIES**

*Legal Claims*

The Sustainable Green Team, LTD is currently involved in arbitration with Emerging Markets Consulting, LLC ("EMC"), a former service provider of the Company. On October 21, 2020, EMC initiated arbitration against the Company, alleging, among other things, breach of contract related to an agreement entered into between the Company (via NSR LLC) and EMC, in which the Company engaged EMC to provide it with consulting services related to the Company's capital structure, investor relations strategies, and fundraising plans, including the filing of an S-1 registration statement at some point in the future, in exchange for equity compensation in the Company. EMC seeks relief against the Company in the form of the equity compensation pursuant to the agreement (2,000,000 shares of the Company's Common Stock) and damages. The Company denies EMC's allegations, and has also initiated counterclaims against EMC for breach of the agreement by EMC, in which it is seeking damages resulting from EMC's breach of its duties under the agreement.

In addition, the Company named in its counterclaim to EMC's claim another similar service provider, Rainmaker Group Consulting, LLC ("Rainmaker"), as a pre-emptive defense against any actions brought by Rainmaker against the Company. Rainmaker engaged by the Company in 2019 to provide similar consulting services as EMC was engaged to provide in exchange for the same compensation (2,000,000 shares of the Company's Common Stock). The Company alleges that Rainmaker breached its agreement with the Company by not providing the services provided in the agreement between the Company and Rainmaker, and therefore Rainmaker is not entitled to any equity compensation by the Company. The Company has taken this action as a defensive measure against potential (in the Company's opinion) frivolous lawsuits brought by Rainmaker against the Company.

The Company is confident it will prevail in the ongoing arbitration described above being overseen by the American Arbitration Association. (see Subsequent Event for settlement on October 6, 2022).

 *Ralph Spencer Litigation*

 *First Complaint and Settlement.*

On March 25, 2021, the Company filed a civil complaint in the Ninth Judicial Circuit Court in Orange County, Florida against Ralph Spencer, the former owner and CEO of Mulch Manufacturing, Inc., alleging certain tortious interference with the Company's business operations and dealings. On April 1, 2021, the Company was granted an Emergency Temporary Injunction by the Ninth Judicial Circuit Court in Orange County, Florida enjoining Mr. Spencer from, among other things, further attempts to interfere with the Company's business operations. On August 16, 2021, the parties entered into a Settlement Agreement and Mutual Release (the "Settlement Agreement"), wherein, among other provisions, all outstanding debt was extinguished. The Company recognized a $17,484,728 capital contribution, credited to Additional Paid-in Capital, from the extinguishment of debt.

The Company agreed to pay Spencer $25,650,000 plus interest as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issuing
 Spencer a promissory note in the amount of $10,650,000 accruing interest at 6% per annum secured by four properties located in Florida
 and another in Georgia (the "Settlement Note"). The Settlement Note is amortized monthly over 20 years with a balloon
 payment of any outstanding balance on its third anniversary. The Company is current on all Settlement Note obligations as of the
 date of this Prospectus.

(b) paying
 Spencer a total of $15,000,000 in exchange for the redemption of Spencer's 40,000,000 shares of common stock and any and all
 ownership interests in which he may have or claim (the "Redemption Payment"). The Redemption Payment is to be paid to
 Spencer according to the following schedule: (i) $3,300,000 on October 15, 2021 in exchange for 8,797,800 common stock shares; and
 (ii) twenty-four (24) payments of $487,500 on the 15th of each month, commencing November 15, 2021, each for 1,300,091.67 common
 stock shares. Spencer executed a letter of instruction to the Company's transfer agent, Pacific Stock Transfer, and provided
 all shares to the transfer agent to allow for the immediate redemption upon each payment. The Company and Spencer are current on
 all Redemption Payment obligations as of the date of this Prospectus.

On April 18, 2022, the Company filed a second civil complaint in the Ninth Judicial Circuit Court in Orange County, Florida against Ralph Spencer, the former owner and CEO of Mulch Manufacturing, Inc., alleging certain tortious interference with the Company's business operations and dealings. On June 23, 2022, the Company was granted an Emergency Temporary Injunction by the Ninth Judicial Circuit Court in Orange County, Florida enjoining Mr. Spencer from, among other things, further attempts to interfere with the Company's business operations. The Company is currently attempting mediation regarding this matter and the obligations owed Mr. Spencer (see Note 8 Notes Payable and above in Note 11 relating to promissory note and stock redemptions). Should this mediation fail, the Company is confident it will receive a favorable judgment in the civil complaint filed against Mr. Spencer related to these matters.

 *Second Complaint*.

On April 19, 2022, the Company together with its wholly owned subsidiary Mulch Manufacturing, Inc., (referred to together as the "Plaintiffs") filed a civil complaint in Florida's Ninth Judicial Circuit Court in Orange County, Florida Case No. 2022-CA-003280-O (the "Second Complaint") against Spencer alleging that (i) Spencer breached the Settlement Agreement by disclosing confidential settlement terms to third parties and violating the non-disparagement provisions by repeatedly disparaging and defaming Anthony Raynor, Tami Raynor, and other officers, agents, and employees of the Plaintiffs, (ii) that Spencer engaged in certain tortious interference with the Company's advantageous business relationships, and (iii) that Spencer engaged in a systematic campaign to defame, disparage and spread false statements about the Company and its employees, agents and representatives, including family members of Company employees.

 *VRM Sublicense Agreement*

On August 9, 2022, the Company entered into a restricted sublicense agreement (the "VRM Sublicense") with a soil technology company, VRM Global Holdings Pty Ltd ("VRM Global"), and its wholly owned subsidiary VRM International PTY LTD ("VRM International," together with VRM Global, collectively referred to herein together as the "Licensor").

Pursuant to the VRM Sublicense, the Licensor granted the Company a restricted sub-license, pursuant to which the Licensor will allow the Company to use certain rights and entitlements and provide the Company with certain catalyst ingredients which will allow the Company to manufacture Humisoil® and XLR8® Bio (the "VRM Products"). These products are made using wood materials provided by the Company and the Licensor's technology and catalyst ingredients to be acquired by the Company from the Licensor or produced by the Company pursuant to the VRM Sublicense. In addition, the VRM Sublicense grants the Company the non-exclusive right to distribute the VRM Products throughout the U.S., the exclusive right to market and distribute these products in packaging of less than one cubic yard in addition to the right to exclusively manufacture the Licensor's catalyst ingredients in Florida, Washington State and the Caribbean (the "Exclusive Territory").

The Company agreed to sell to Licensor the VRM Products manufactured by the Company in amounts determined in the sole discretion of the Company at an agreed-on price. In addition, Licensor has agreed to assign to the Company rights held by the Licensor to repurchase the VRM Products manufactured by others within the Exclusive Territory and an option to acquire such rights outside such territory.

*Stock Redemptions*

The Company committed to buying back 40,000,000 shares of its common stock over 24 months beginning in October, 2021, at a price of $0.375 per share pursuant to the Settlement Agreement with Ralph Spencer.

**NOTE 12 – CONCENTRATION OF CREDIT RISK**

*Cash Deposits*

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of October 1, 2022, the Company did not have any deposit amounts in excess of the FDIC insured limit.

*Revenues*

For the three and nine months ended October 1, 2022, one customer accounted for 22% and 22% of revenue, respectively. For the three months ended October 2, 2021, no customer accounted for more than 10% of revenue. For the nine months ended October 2, 2021, one customer accounted for 20% of revenue.

*Accounts Receivable*

As of October 1, 2022, one customer accounted for 21% of the Company's accounts receivable. As of January 1, 2022, one customer accounted for 24% of the accounts receivable.

**NOTE 13 – SUBSEQUENT EVENTS**

*EMC Arbitration Settlement*

On October 6, 2022, the Company entered into a Settlement Agreement and Mutual Release (the "Agreement") with EMC, Rainmaker, Mr. Painter, Mr. Cohen, and Mr. Lehrer, pursuant to which the parties agreed to amicably resolve all disputes between them without admitting any wrongdoing or liability. In full and final settlement of all claims and counterclaims between the parties, the Company agreed to pay EMC a total sum of $250,000, to be paid out monthly, in $50,000 or $25,000 increments, beginning on October 15, 2022 and ending on April 15, 2023. Rainmaker, Mr. Painter, Mr. Cohen, and Mr. Lehrer acknowledged and agreed that they are not entitled to receive any money or property from the Company or its CEO, Anthony J. Raynor. In addition, Mr. Raynor, agreed to transfer 100,000 of his personal shares of the Company's Common Stock to EMC. Mr. Raynor also agreed to transfer 100,000 of his personal shares of the Company's Common Stock to The Pink Butterfly Foundation, a Florida not for profit corporation ("Pink Butterfly") dedicated to assisting families with acute financial needs accompanying a heartbreaking and devastating sudden loss of a child. Both share transfers are to take place within twenty (20) days of the date of the Agreement.

*ACCEL Media International Agreement*

On October 4, 2022, the Company entered into an agreement with ACCEL Media International LLC ('ACCEL') to provide a bundle of media services including iconic billboards, short-form broadcasts, commercial and production guidance, media relations, and strategy planning and implementation with a market value of not less than $30,700,000 over a five year period. Short-form commercials highlighting SGTM and its sustainability message are expected to run across major news networks including Fox Business, Bloomberg, Newsmax and additional media outlets via AMI's network of media partnerships.

In consideration for the services, The Company shall tender: 1) Three Million Five Hundred Thousand (3,500,000) restricted shares of Common Stock (the "Initial Shares"), 2) A three year option to acquire five million (5,000,000) restricted shares of Common Stock at an exercise price of $2.00 per share of Common Stock, pursuant to the Option Agreement, and 3) A 90-day warrant pursuant to acquire up to two million (2,000,000) restricted shares of Common Stock at an exercise price of $1.00 per share of Common Stock.

*VRM Sublicense Amendment*

The VRM Sublicense was amended on October 12, 2022 (the "VRM Sublicense Amendment," together with the VRM Sublicense, collectively, the "VRM Sublicense), to expand collaboration between the Company and Licensor and add the Licensor's wholly-owned subsidiary VRM Biologik Inc. (the "VRM Biologik"), among other things. Pursuant to the VRM Sublicense Amendment, the Company acquired from Licensor 10% of VRM Biologik, certain catalyst ingredients for future delivery to be used in the Company's production of Humisoil®, XLR8® Bio and other products, co-location of Licensor's production facilities with the Company's facilities in Florida and the state of Washington and development of an agreed plan to complete licensed manufacture of soil amendment catalysts in other strategic locations across the U.S. The catalyst ingredients to be acquired by the Company from the Licensor are expected to be sufficient to produce a minimum of 4,000,000 cubic yards of Humisoil®.

The Term of the VRM Sublicense is for a period of ten years from October 12, 2022 with the option to renew it for a five-year period. The VRM Sublicense may be terminated by written agreement of the parties, or immediately by the Licensor if the Company amends or alters any of the inputs, outputs, products, marks, materials, media, recipes, or any of the processes as described in any of the manuals provided by Licensor to the Company except as permitted by the VRM Sublicense or appointment of a liquidator, administrator, receiver, receiver and manager, mortgagee in possession or other external controller appointed by virtue of the laws of insolvency or appointed by a creditor, by VRM Global or by the holder of security over the assets of VRM Global or an assignment of VRM Global's rights pursuant to the VRM Sublicense without the approval of VRM Global. VRM Global may terminate the VRM Sublicense if at any time the Company is in breach of any of the terms or conditions of the VRM Sublicense and it fails to remedy such breach within 30 days of notice from Licensor. In consideration of the grant of the VRM Sublicense, the Company initially issued to the Licensor, 500,000 shares of the Company's common stock upon execution of the VRM Sublicense and an additional 6,000,000 shares upon execution of the VRM Sublicense Amendment. Additionally, the Company agreed to pay the Licensor an aggregate of $1,000,000 in cash in two installments, with the first installment of $500,000 payable within 10 days of the Company's completing an initial public offering of its common stock (the "IPO") and the second payment due on the one year anniversary of the date of the IPO. In addition, pursuant to the VRM Sublicense Amendment, the Company agreed to issue the Licensor 6,000,000 shares of the Company's common stock and pay an aggregate of $7,200,000 payable in tranches of $3,600,000 by December 31, 2022 and two payments of $1,800,000 on each of May 31, 2023 and October 31, 2023. If the Company does not complete the IPO by February 4, 2023 or make the $500,000 payment within 10 days of such date, VRM Global may terminate the VRM Sublicense and, the Company will be obligated to pay the Licensor its then market rates for all inputs utilized by the Company in the production of Humisoil®, XLR8® Bio and other products produced using these inputs during the term of the VRM Sublicense.

The Company plans to account for the purchase of the 10% interest in VRM Biologik as an investment for accounting purposes with a value of $14,400,000 based on the $2.40 per share closing price of the Common Stock on the October 12, 2022 date of the VRM Sublicense Amendment.

*Settlement Agreement with Ralph Spencer*

On December 13, 2022 (the "Effective Date"), the Plaintiffs, Tami Raynor and Anthony Raynor (collectively, "Raynor"), and Ralph Spencer ("Spencer"), by and through his attorney-in-fact Christie Spencer and his court-appointed attorney, Christine J. Lomas, and Christie Spencer, as Ralph Spencer's attorney-in-fact (together with Spencer, the "Spencer Parties") (hereafter "the "Parties" or a "Party"), entered into a Settlement Agreement, (hereafter the "December 2022 Settlement Agreement"), in relation to the Second Complain (the "Business Court Litigation").

As a complete settlement of the dispute that is the subject of the Business Court Litigation, the Parties agreed to the following material terms as provided for in the December 2022 Settlement Agreement:

Terms Regarding Promissory Note, Mortgage, and Deed to Secure Debt. Within five days of the Effective Date, Spencer and RJ Enterprises of Florida, LLC ("RJ Enterprises") agreed to convey certain real estate located in Nassau County, Florida (the "RJ Parcels") to the Company's wholly owned subsidiary Mulch Manufacturing, Inc. ("Mulch Manufacturing") free and clear from any and all interests, mortgages, liens, encumbrances, and clouds on the title, including a $200,000 mortgage from RJ Enterprises to Weber Holdings, Ltd. The RJ Parcels are comprised of two tracts of land, one of which is approximately 2.93 acres and the other is approximately 14.9 acres, both of which are located off of U.S. Highway 301 in Callahan, Florida 32011.

In addition, Spencer agreed to release the real property located at 108 Copeland Street, Jacksonville, Florida 32204 (the "Copeland Parcel") from the mortgage securing a debt in the original principal amount of $10,650,000 issued by the Company in favor of Spencer as provided for in the Settlement Agreement (the "August 2021 Mortgage"). Further, the Parties agreed to amend the August 2021 Mortgage and the underlying promissory note to increase the principal balance to $11,500,000, which amount will be amortized over twenty (20) years with any and all remaining amounts of principal and interest becoming due and payable sixty months after the date of amendment. The August 2021 Mortgage will be further modified to add the RJ Parcels as collateral security and limit the inspection rights of Spencer and certain other persons and restrict Spencer from selling, transferring, assigning, gifting, encumbering, or placing any liens on the August 2021 Mortgage for a period of two years from the date it is amended.

Terms Regarding Common Stock of the Company. According to the terms of the December 2022 Settlement Agreement, the Company agreed with Spencer to redeem 22,101,556 shares of the Company's common stock he owns (the "Spencer Shares") in exchange for the Company's payment to Spencer of $1,000,000. The Company's obligation to pay Spencer is conditioned on Spencer delivering: (i) a letter of instruction directing the Company's transfer agent to rescind the issuance of the Spencer Shares, (ii) a quit claim deed to the RJ Parcels to Mulch Manufacturing and (iii) a release of the Copeland Property from the August 2021 Mortgage. In addition, Spencer has represented that he has no rights, options, or warrants to buy additional shares of common stock or any other stock or ownership interests in the Company, that Spencer has not sold, assigned, transferred, encumbered, or gifted, directly or indirectly, any stock, rights, options, warrants, or other ownership interests in the Company to any person or party and that he has no other ownership interests whatsoever in the Company or Mulch Manufacturing.

The December 2022 Settlement Agreement also provides that the Company shall pay Spencer an aggregate of $1,500,000 in installments of $500,000 on April 1, 2023, August 1, 2023 and December 1, 2023 conditioned on Spencer complying with his obligations under the December 2022 Settlement Agreement (the "Additional Amounts"). On December 27, 2022, these conditions were fulfilled, and the Company completed the redemption of the 22,101,556 shares of common stock.

Finally, the December 2022 Settlement Agreement provides that the Parties will execute and file a joint stipulation in Business Court Litigation that provides in the event Ralph Spencer and Christie Spencer fail to comply with certain non-harassment obligations provided for in the December 2022 Settlement Agreement, then the unpaid balance of the Additional Amounts will be paid into the registry of the court or an agreed-upon third party as they become due to be held in escrow and released upon agreement or as directed by an order of the court.

**THE SUSTAINABLE GREEN TEAM, LTD**. **AND SUBSIDIARIES**

**CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE FISCAL YEARS ENDED JANUARY 1, 2022, AND JANUARY 2, 2021**

**THE SUSTAINABLE GREEN TEAM LTD**. **AND SUBSIDIARIES**

**FOR THE FISCAL YEAR ENDED JANUARY 1, 2022**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Independent Auditor's Report](#S1_007) | F-28 |
| Consolidated Financial Statements |  |
| [Consolidated Balance Sheets](#S1_001) | F-29 |
| [Consolidated Statements of Operations](#S1_002) | F-30 |
| [Consolidated Statements of Changes in Stockholders' Equity](#S1_003) | F-31 - F-32 |
| [Consolidated Statements of Cash Flows](#S1_005) | F-33 - F-34 |
| [Notes to Consolidated Financial Statements](#S1_006) | F-35 - F-50 |

---

**Report of Independent Registered Public Accounting Firm**

To the shareholders and the board of directors of The Sustainable Green Team Ltd.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of The Sustainable Green Team Ltd. as of January 1, 2022 and January 2, 2021, the related statements of operations, stockholders' equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of January 1, 2022 and January 2, 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States.

**Basis for Opinion**

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

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

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

/S/ BF Borgers CPA PC

**BF Borgers CPA PC**

We have served as the Company's auditor since 2020

Lakewood, CO

March 31, 2022

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **January 1, 2022** | **January 2, 2021** |
| **ASSETS** |  |  |
| Current Assets |  |  |
| Cash | $788242 | $506287 |
| Short-term investments | 52 | 2801263 |
| Accounts receivable, net of allowance for doubtful accounts | 2538626 | 1631921 |
| Inventories | 7588085 | 9806776 |
| Prepaid expenses and other current assets | 1503504 | 628364 |
| Total Current Assets | 12418509 | 15374611 |
| Property and equipment, net | 52049146 | 24158297 |
| Other Assets |  |  |
| Long-term investments | 1051702 | 842272 |
| Goodwill | 224000 |  |
| Intangibles, net | 84440 | 95000 |
| ROU asset | 977355 | 748239 |
| Total Other Assets | 2337497 | 1685511 |
| **Total Assets** | $66805152 | $41218419 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities |  |  |
| Accounts payable and accrued expenses | $2671776 | $711605 |
| Current portion of lease liability | 249186 | 132668 |
| Notes payable | 4486461 | 2459945 |
| Notes payable - related party | - | 2982417 |
| Total Current Liabilities | 7407423 | 6286635 |
| Long-term Liabilities |  |  |
| Lease liabilities, net of current portion | 751606 | 207328 |
| Notes payable, net of current portion | 17480621 | 4794541 |
| Note payable - related party, net of current portion | - | 18802355 |
| Total Long-term Liabilities | 18232227 | 23804224 |
| Total Liabilities | 25639650 | 30090859 |
| Commitments and contingencies |  |  |
| Stockholders' Equity |  |  |
| Preferred Series A stock, $0.0001 par value, 5,000,000 shares authorized, 90 shares outstanding |  |  |
| Common stock, $0.0001 par value; 245,000,000 shares authorized; 90,460,425 and 89,168,405 shares issued and outstanding, respectively | 9046 | 8917 |
| Additional paid-in capital | 34536450 | 6725996 |
| Retained earnings | 6620006 | 4392647 |
| Total Stockholders' Equity | 41165502 | 11127560 |
| **Total Liabilities and Stockholders' Equity** | $66805152 | $41218419 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **Jan 1, 2022** | **Jan 2, 2021** | **Jan 1, 2022** | **Jan 2, 2021** |
| Net Revenue | $6481332 | $4553195 | $32368984 | $30584291 |
| Cost of revenue | 6727297 | 5689014 | 31482519 | 27813403 |
| Total gross profit | (245965) | (1135819) | 886465 | 2770888 |
| Operating expenses |  |  |  |  |
| Selling, general and administrative | 1571667 | 948460 | 5033382 | 3902262 |
| Depreciation and amortization | 8361 | 276366 | 31581 | 377489 |
| Total operating expenses | 1580028 | 1224826 | 5064963 | 4279751 |
| Loss from operations | (1825993) | (2360645) | (4178498) | (1508863) |
| Other income (expense) |  |  |  |  |
| Interest expense, net | (216579) | (307994) | (508034) | (1044941) |
| Bargain purchase gain | 7123084 |  | 7123084 | 8306088 |
| Debt forgiveness |  |  | 1613128 |  |
| Other income (expense), net | 30938 | (47060) | 26979 | 114518 |
| Total other expense | 6937443 | (355054) | 8255157 | 7375665 |
| Income (loss) before provision for income taxes | 5111450 | (2715699) | 4076659 | 5866803 |
| Provision for income taxes | (429162) | (601848) | (716002) | (169191) |
| Net Income (loss) | $5540612 | $(2113851) | $4792661 | $6035994 |
| Net income (loss) per common share - basic | $0.06 | $(0.02) | $0.05 | $0.07 |
| Net income (loss) per common share - diluted | $0.06 | $(0.02) | $0.05 | $0.07 |
| Weighted average shares outstanding - basic | 89779971 | 89168405 | 90161612 | 84098649 |
| Weighted average shares outstanding - diluted | 95419975 | 89655905 | 95801616 | 84561183 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

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

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Twelve Months Ended January 1, 2022:** | | | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** |<br>**Total** |
| **Balance at January 2, 2021** | 90 | $- | 89168405 | $8917 | $6725996 | $4392647 | $11127560 |
| Stock issued for 2020 debt inducement |  |  | 300000 | 30 | 62970 |  | 63000 |
| Stock issued for compensation |  |  | 25000 | 3 | 28797 |  | 28800 |
| Net loss |  |  |  |  |  | (223426) | (223426) |
| **Balance as of April 3, 2021** | 90 |  | 89493405 | 8950 | 6817763 | 4169221 | 10995934 |
| Net income |  |  |  |  |  | 815937 | 815937 |
| **Balance as of July 3, 2021** | 90 |  | 89493405 | 8950 | 6817763 | 4985158 | 11811871 |
| Related party contribution on debt forgiveness |  |  |  |  | 17484728 |  | 17484728 |
| Note payable converted to stock |  |  | 6000000 | 600 | 3699400 |  | 3700000 |
| Net loss |  |  | . |  |  | (1340463) | (1340463) |
| **Balance as of October 2, 2021** | 90 | &nbsp;&nbsp;&nbsp;&nbsp;- | 95493405 | 9550 | 28001891 | 3644695 | 31656136 |
| Stock subscriptions |  |  | 5640004 | 564 | 4229439 |  | 4230003 |
| Stock redemptions |  |  | (11397984) | (1140) | (1708558) | (2565301) | (4274999) |
| Stock issued for compensation |  |  | 125000 | 12 | 93738 |  | 93750 |
| Stock issued for acquisitions |  |  | 600000 | 60 | 3919940 |  | 3920000 |
| Net income |  |  |  |  |  | 5540612 | 5540612 |
| **Balance as of January 1, 2022** | 90 | $- | 90460425 | $9046 | $34536450 | $6620006 | $41165502 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (continued)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Twelve Months Ended January 2, 2021:** | | | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Retained**<br>**Earnings** |<br>**Total** |
| **Balance at December 28, 2019** | 90 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | 43752636 | $4375 | $145880 | $(1643347) | $(1493092) |
| Issued ICW Mulch Mfg acquisition |  |  | 40000000 | 4000 | 5996000 |  | 6000000 |
| Issued ICW reverse merger |  |  | 4000000 | 400 | 99600 |  | 100000 |
| Net income |  |  |  |  |  | 8254173 | 8254173 |
| **Balance as of March 28, 2020** | 90 |  | 87752636 | 8775 | 6241480 | 6610826 | 12861081 |
| Cancelled ICW Mulch Mfg acquisition |  |  | (1000000) | (100) | 100 |  |  |
| Subscription issuance |  |  | 1250000 | 125 | 99875 |  | 100000 |
| Issued ICW reverse merger |  |  | 25000 | 3 | (3) |  |  |
| Issued ICW conversion of notes payable |  |  | 1140769 | 114 | 384544 |  | 384658 |
| Net income |  |  |  |  |  | 1109139 | 1109139 |
| **Balance as of June 27, 2020** | 90 |  | 89168405 | 8917 | 6725996 | 7719965 | 14454878 |
| Net loss |  |  |  |  |  | (1213467) | (1213467) |
| **Balance as of October 3, 2020** | 90 |  | 89168405 | 8917 | 6725996 | 6506498 | 13241411 |
| Net loss |  |  |  |  |  | (2113851) | (2113851) |
| **Balance as of January 2, 2021** | 90 | $- | 89168405 | $8917 | $6725996 | $4392647 | $11127560 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **Jan 1, 2022** | **Jan 2, 2021** |
| Cash flows from operating activities: |  |  |
| Net Income | $4792661 | $6035994 |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| Provision for (recovery of) doubtful accounts | (79598) | 81321 |
| Depreciation and amortization | 4000613 | 3525094 |
| Common stock issued as compensation | 122550 |  |
| Gain on sale of fixed assets |  | (63562) |
| Gain on Paycheck Protection Program debt forgiveness | (1613128) |  |
| Equity increase in long term investment | (315281) |  |
| Bargain purchase gain | (7123084) | (8306088) |
| Changes in operating assets and liabilities: |  |  |
| Accounts receivable, net | (827107) | 447892 |
| Inventory | 2218691 | 689156 |
| Prepaid expenses and other current assets | (875140) | 150986 |
| Accounts payable and accrued expenses | 2121321 | (834342) |
| Net cash provided by operating activities | 2422498 | 1726450 |
| Cash flows from investing activities: |  |  |
| Purchases of property and equipment | (3835636) | (3234652) |
| Proceeds from sale of property and equipment |  | 60855 |
| Net short-term investment redemptions (purchases) | 2801210 | 5123933 |
| Purchases of long-term investments |  | (253500) |
| Proceeds from long-term investments | 105850 | 321500 |
| Net cash from (used in) investing activities | (928576) | 2018136 |
| Cash flows from financing activities: |  |  |
| Principal payments on leases | (233575) | (107648) |
| Proceeds from notes payable | 1236080 | 9137232 |
| Payment on notes payable | (1471282) | (596737) |
| Payment on notes payable, related parties | (698194) | (3858253) |
| Stock subscriptions | 4230003 |  |
| Stock redemptions | (4274999) |  |
| Distributions |  | (7844981) |
| Net cash provided by (used in) financing activities | (1211967) | (3270387) |
| Net increase (decrease) in cash | 281955 | 474199 |
| Cash - beginning of period | 506287 | 32088 |
| Cash - end of period | $788242 | $506287 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM AND SUBSIDIARIES** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS continued** 

---

| | | |
|:---|:---|:---|
|  | **Twelve Months Ended** | **Twelve Months Ended** |
|  | **Jan 1, 2022** | **Jan 2, 2021** |
| Supplemental cash flow information: |  |  |
| Cash paid for: |  |  |
| Interest | $716432 | $832760 |
| Income taxes | $50 | $159179 |
| Non-cash investing and financing activities: |  |  |
| Note and interest payable contribution to capital | $17484728 |  |
| Purchase of plant, property and equipment for notes payable | $16560927 | $4948908 |
| Purchase of plant, property and equipment for common stock | $3696000 |  |
| Acquisition of right of use assets for lease obligations | $895781 |  |
| Stock issued for accrued interest and compensation |  |  |
| Stock issued for accrued stock subscription and compensation |  | $200000 |
| Stock issued for accrued debt inducement | $63000 |  |
| Stock issued for acquisition of Day Dreamer Productions, LLC | $224000 |  |
| Conversion of notes payable to stock | $3700000 | $384657 |
| Stock issued and liabilities assumed for equipment |  | $7856052 |
| Property and equipment bargain purchase recognition | $7123084 | $8306088 |
| Distribution of property and equipment |  | $5042424 |

---

The accompanying footnotes are an integral part of these consolidated financial statements.

**THE SUSTAINABLE GREEN TEAM, LTD**. **AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**Note 1 – organization and business operations**

*Corporate History*

The Sustainable Green Team, Ltd., (f/k/a Sierra Gold Corp.) (the "Parent" or "SGTM"), a Delaware corporation, conducts business activities principally through its three wholly-owned subsidiaries: National Storm Recovery LLC ("NSR LLC"), a Delaware limited liability company, Mulch Manufacturing, Inc., an Ohio corporation ("MM") and Sierra Gold Merger Corp. ("SGMC"), a Delaware corporation (collectively, the "Company").

The Company was initially formed, under the name Alpha Diamond Corporation in the State of Nevada on January 22, 1997. It's undergone multiple name changes over the years and a domicile change to Wyoming on February 15, 2011.

Effective April 18, 2019, Sierra Gold Corp., ("SGCP"), entered into an equity exchange agreement (the "Merger"), as amended on December 31, 2019 with NSR LLC, pursuant to which SGCP acquired all of the membership units of NSR LLC. Upon closing, NSR LLC became a wholly-owned subsidiary of SGCP.

On July 22, 2019, a Certificate of Amendment was filed with the State of Wyoming to change the name of the Company from "Sierra Gold Corporation" to "National Storm Recovery, Inc." and to effect a 1 for 10,000 reverse stock split. At September 11, 2019, the Company's trading symbol changed from "SGCP" to "NSRI".

The stock split decreased the issued and outstanding shares of its common stock from 3,406,865,285 to 602,636 (after rounding up to a 100 share minimum) before SGCP issued 40,000,000 shares of its common stock to the members of NSR LLC as consideration for the equity interests exchange. As a result of the Merger, NSR LLC members acquired 99% of SGCP's issued and outstanding shares of common stock and SGCP changed its principal focus to providing tree services, debris hauling and removal, biomass recycling, mulch manufacturing, packaging and sales.

The Merger was treated as a reverse recapitalization effected by an equity exchange for financial and reporting purposes since SGCP was deemed to be a shell corporation with nominal operations and no assets at the time of the merger. NSR LLC is considered the acquirer for accounting purposes, and the SGCP's historical financial statements before the Merger have been replaced with the historical financial statements of NSR LLC before the Merger in future filings.

On December 31, 2019 the Company entered into a restructuring as a holding company pursuant to Delaware General Corporation Law ("DGCL") §251(g) known as "the Delaware Holding Company Statute." In order to effect this restructuring NSRI and NSR LLC company each changed domiciles to the State of Delaware by filing Certificates of Conversion. Immediately thereafter, NSRI incorporated SGTM as its wholly-owned subsidiary and SGTM formed Sierra Gold Merger Corp., a Delaware corporation ("SGMC") as its wholly-owned subsidiary. Similarly, NSR LLC issued SGTM, 1,000 limited liability company Common Membership Units. Each of the four parties next executed an Agreement and Plan of Merger (the "Merger Agreement") as well as a Certificate of Merger, the latter of which was filed with the Delaware Secretary of State Division of Corporations on December 31, 2019 (collectively, the "Reorganization"). Pursuant to the terms of the Reorganization, NSRI merged down into SGMC with SGMC surviving as the successor to the reorganization, with all of the assets and liabilities of NSRI merging into SGMC and the separate existence of NSRI ceasing. The shares of SGTM and Membership Interests of NSR LLC, held by NSRI were canceled in the reorganization as part of the restructuring and the shares of NSRI became exchangeable for shares of SGTM on a one for one basis making SGTM the parent to both SGMC and NSR LLC as well as making SGTM the publicly-traded successor to NSRI. After obtaining FINRA approval on July 21, 2020, the Company changed its trading symbol to SGTM.

Effective January 31, 2020, the Company entered into a Business Combination Agreement (the "Mulch Acquisition") pursuant to which MM has become its wholly-owned subsidiary. Under the Mulch Acquisition, all issued and outstanding common stock in MM were converted into an aggregate of 40,000,000 shares of the Company's common stock (See Note 6).

The Company closed on the acquisition of 100% of the membership interests in Day Dreamer Productions LLC (DDP) on December 30, 2021. DDP is in the business of producing informational and promotional videography (See Note 6).

*Business Overview*

The Company provides tree services, debris hauling and removal, biomass recycling, mulch manufacturing, packaging and sales. The Company's objective is to provide a solution for the treatment and handling of tree debris that has historically been disposed of in landfills, creating an environmental burden and pressure on disposal sites around the nation. This objective is founded in sustainability, based on vertically integrated operations that begin with collecting of tree debris through its tree services and collection sites, through its processing services, and then recycling and using that tree debris as a feedstock that is manufactured into a variety of organic, attractive, next-generation mulch products that are packaged and sold to landscapers, installers and garden centers. The Company plans to expand its operations through a combination of organic growth and strategic acquisitions of synergistic companies that are both accretive to earnings and enable the Company to be positioned for rapid growth. The Company operates in a highly seasonal industry generating most of its sales and profits in the first six months of the year.

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

*Basis of Presentation*

The accompanying consolidated financial statements as of January 1, 2022, and January 2, 2021, and for the three months and year ended January 1, 2022, and January 2, 2021, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, such financial information includes all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position at such date and the operating results and cash flows for such periods. Operating results for the three months and year ended January 1, 2022 are not necessarily indicative of the results that may be expected for the entire year or for any subsequent interim period.

The Company has adopted the period end dates conforming to the industry standards used by MM, the Company's largest operating subsidiary. These period end dates follow a 52/53-week fiscal year which ends on the Saturday nearest to December 31. The years ended January 1, 2022, and January 2, 2021, included 52 and 53 weeks, respectively.

*Principles of Consolidation*

The consolidated financial statements are presented on a comparative basis. The consolidated balance sheets at January 1, 2022 and January 2, 2021 include the accounts of SGTM, NRS LLC, MM, DDP LLC, Rose, and SGMC.

The consolidated statements of operations for the three months and year ended January 1, 2022, and January 2, 2021, include the accounts of SGTM, NRS LLC, MM, Rose, and SGMC. For the year ended January 2, 2021, which includes the one month period ended January 31, 2020, the date of the Business Combination with MM, the accounts of SGTM, NRS LLC, MM and Rose are consolidated on a pro forma basis. The impact of including this one month of 2020 in the statement of operations for that year was to lower income by around $280,000 for the loss MM sustained for that month.

The consolidated statement of changes in stockholders' equity for the year ended January 1, 2022, includes the account balances of SGTM, NRS LLC, MM, DDP LLC, Rose, and SGMC. For the year ended January 2, 2021, the accounts of SGTM, NRS LLC, MM, Rose, and SGMC are presented on a pro forma basis. The net income for this year includes that of MM and Rose for the one month ending January 31, 2020, on a pro forma basis.

The consolidated statement of cash flows for the year ended January 1, 2022, includes the accounts of SGTM, NRS LLC, MM, DDP LLC and Rose. The year ended January 2, 2021, include the accounts of SGTM, NRS LLC, MM and Rose; with the latter two included on a pro forma basis for the one month ended January 31, 2020.

*Use of Estimates*

The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, equity-based transactions, revenue and expenses and disclosure of contingent liabilities at the date of the consolidated financial statements. The Company bases its estimates and assumptions on historical experience, known or expected trends and various other assumptions that it believes to be reasonable. As future events and their effects cannot be determined with precision, actual results could differ from these estimates which may cause the Company's future results to be affected.

*Revenue*

The Company's revenues are derived from two major types of services to clients: landscape recovery services and the manufacturing and sale of landscape mulch. With respect to landscape recovery services, the Company provides tree services, debris hauling and removal and biomass recycling.

The Company recognizes revenue when its performance obligations are satisfied. With respect to landscape recovery services, its performance obligation is satisfied upon the completion of the landscape services for its customers. With respect to the manufacturing and selling of landscape mulch, its performance obligation is satisfied upon delivery to its customers. Services are provided for cash or on credit terms. These credit terms, which are established in accordance with local and industry practices, require payment generally within 30 days of performance or end of season for qualifying orders. The Company estimates and reserves for its bad debt exposure based on its experience with past due accounts and collectability, the aging of accounts receivable and its analysis of customer data.

**Disaggregated Revenues**

Revenue consists of the following by service and product offering for the three months and twelve months ended January 1, 2022 and January 2, 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Twelve Months Ended** | **Twelve Months Ended** |
| **Disaggregated Net Revenues** | **January 1, 2022** | **January 2, 2021** | **January 1, 2022** | **January 2, 2021** |
| Landscaping Recovery Services | $775038 | $1079621 | $3430464 | $3227218 |
| Manufacturing and Sales of Mulch | $5706294 | $3473574 | $28938520 | $27357073 |
| Total | $6481332 | $4553195 | $32368984 | $30584291 |

---

*Cash*

The Company considers all highly liquid short-term instruments that are purchased with an original maturity of three months or less to be cash equivalents. The Company did not have any cash equivalents as of January 1, 2022 and January 2, 2021.

*Account Receivable and Retainage*

The Company periodically assesses its accounts receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, an allowance is recorded for that doubtful account. As of January 1, 2022, and January 2, 2021, the Company's allowance for doubtful accounts was $60,000 and $150,000, respectively.

From time to time, the Company's customers may retain a portion of the amount due the Company for large landscaping or disaster recovery jobs until all contract obligations have been met. As of January 1, 2022, and January 2, 2021, the Company was due approximately $-0- and $63,000, respectively, in such retainage. This retainage was included in the Company's Accounts Receivable balance.

*Inventory*

Inventories are stated at the lower of cost or net realizable value, with cost determined by the weighted-average cost method using full absorption costing for manufactured goods.

*Property and Equipment*

Property and equipment are recorded at cost. During the year ended January 2, 2021, previously expensed rental deposits of approximately $455,000 were capitalized and applied to the buy-out of assets pursuant to their rental purchase agreements, the impact, of which, was to lower cost of sales for that year. Expenditures that enhance the useful lives of the assets are capitalized and depreciated.

Depreciation is computed using the straight-line method over the estimated useful lives of the related capitalized assets. Machinery and equipment is generally depreciated over 7 to 10 years. Vehicles are generally depreciated over 5 years.

Maintenance and repairs are charged to expense as incurred. At the time of retirement or other disposition of property and equipment, its cost and accumulated depreciation is removed from the accounts and the resulting gain or loss, if any, is reflected in operations.

*Impairment of Long-Lived Assets and Right of Use Assets*

The Company reviews long-lived assets, including finite-lived intangible assets and right of use ("ROU") lease assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted net cash flows of the operation to which the assets relate to the carrying amount. If the operation is determined to be unable to recover the carrying amount of its assets, then these assets are written down first, followed by other long-lived assets of the operation to fair value. Fair value is determined based on discounted cash flows or appraised values, depending on the nature of the assets.

*Long-Term Investments and Related Accounting Policy*

 

The company owns an equity stake in an insurance company called Evolution, LTD where MM is a preferred shareholder who receives regular distributions on a recurring basis.

*Intangible Assets*

The Company records its intangible assets at cost in accordance with Accounting Standards Codification ("ASC") 350, *Intangibles – Goodwill and Other*. Finite lived intangible assets are amortized over their estimated useful life using the straight-line method, which is determined by identifying the period over which the cash flows from the asset are expected to be generated. During the three months and year ended January 1, 2022, the Company did not record a loss on impairment. For the three months and year ended January 2, 2021, the Company recorded a $317,500 loss on the impairment of an advantageous supply contract.

*Goodwill*

Goodwill represents the excess of the purchase price of the acquired business over the estimated fair value of the identifiable net assets acquired. Goodwill is not amortized but is tested for impairment at least annually at year end, at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired. Goodwill is tested for impairment at the reporting level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. If the reporting unit does not pass the qualitative assessment, then the reporting unit's carrying value is compared to its fair value. The fair values of the reporting units are estimated using market and discounted cash flow approaches. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. The discounted cash flow approach uses expected future operating results. Failure to achieve these expected results may cause in a future impairment of goodwill at the reporting unit.

*Advertising and Marketing Costs*

The Company expenses advertising and marketing costs as they are incurred. Advertising and marketing expenses were approximately $90,000 and $303,000 for the three months and year ended January 1, 2022, respectively, and $70,000 and $305,000 for the three months and year ended January 2, 2021, respectively, and are recorded in selling, general and administrative expenses on the statement of operations.

*Fair Value Measurements*

ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.

The Company's financial assets and liabilities carried at fair value measured on a recurring basis as of January 1, 2022 and January 2, 2021, consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total fair value at**<br>**January 1, 2022** | **Quoted prices in active markets for identical**<br>**Assets (Level 1)** | **Significant other Observable**<br>**inputs<br> (Level 2)** | **Significant other Unobservable**<br>**inputs<br> (Level 3)** |
| Investment in mutual funds | $52 | $52 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Total fair value at**<br>**January 2, 2021** | **Quoted prices in active markets<br> for identical**<br>**Assets (Level 1)** | **Significant other<br> Observable inputs**<br>**(Level 2)** | **Significant other<br> Unobservable inputs**<br>**(Level 3)** |
| Investment in mutual funds | $2801263 | $2801263 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- |

---

*Net Income (Loss) per Common Share*

Basic net income (loss) per common share is computed by dividing the net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share includes the effect of Common Stock equivalents (stock options, unvested restricted stock, and warrants) when, under either the treasury or if-converted method, such inclusion in the computation would be dilutive.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Year Ended** | **Year Ended** |
|  | **January 1, 2022** | **January 2,**<br> **2021** | **January 1, 2022** | **January 2,**<br> **2021** |
| Numerator for basic and diluted earnings (loss) per share: |  |  |  |  |
| Net income (loss) | $5540612 | $(2113851) | $4792661 | $6035994 |
| Denominator for basic earnings (loss) per share - |  |  |  |  |
| weighted average shares outstanding | 89779971 | 89168405 | 90161612 | 84098649 |
| Stock warrants | 5640004 |  | 5640004 |  |
| Convertible notes | - | 487500 | - | 462534 |
| Denominator for diluted earnings (loss) per share – |  |  |  |  |
| weighted average and assumed conversion | 95419975 | 89655905 | 95801616 | 84561183 |
| Net income (loss) per share: |  |  |  |  |
| Basic net income (loss) per share | $0.06 | $(0.02) | $0.05 | $0.07 |
| Diluted net income (loss) per share | $0.06 | $(0.02) | $0.05 | $0.07 |

---

*Income Taxes*

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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.

The Company utilizes ASC Topic 740, "Income Taxes," which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements or tax returns. The Company accounts for income taxes using the asset and liability method to compute the differences between the tax basis of assets and liabilities and the related financial amounts, using currently enacted tax rates. A valuation allowance is recorded when it is "more likely-than-not" that a deferred tax asset will not be realized. For tax positions that meet a "more likely than not" threshold, the Company recognizes the benefit in the consolidated financial statements.

For the three months ended January 1, 2022 and January 2, 2021, the Company recognized approximately $429,000 and $602,000 tax benefit, respectively, and $716,000 and $169,000 tax benefit for the years ended January 1, 2022 and January 2, 2021, respectively. These tax provisions were based on a 27% effective rate for federal and state income taxes after accounting for permanent differences between book and taxable income. The Company has recorded a $901,876 and $175,471 deferred tax asset, net of a valuation allowance, as of January 1, 2022, and January 2, 2021, respectively. Management believes this asset to be "more likely than not" fully realized in future periods.

The Company's practice is to recognize interest and penalties, if any, related to uncertain tax positions in income tax expense in the consolidated statements of operations.

*Recent Accounting Pronouncements*

In December 2019, the FASB issued ASU 2019-12, simplifying the Accounting for Income Taxes (Topic 740) as part of its simplification initiative to reduce the cost and complexity in accounting for income taxes. This guidance is effective for interim and annual reporting periods beginning within 2021.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires all leases that have a term of over 12 months to be recognized on the balance sheet with the liability for lease payments and the corresponding right-of-use asset initially measured at the present value of amounts expected to be paid over the term. Recognition of the costs of these leases on the income statement will be dependent upon their classification as either an operating or a financing lease. Costs of an operating lease will continue to be recognized as a single operating expense on a straight-line basis over the lease term. Costs for a financing lease will be disaggregated and recognized as both an operating expense (for the amortization of the right-of-use asset) and interest expense (for interest on the lease liability). This standard was effective for the Company's interim and annual periods beginning January 1, 2019 and was applied on a modified retrospective basis to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The adoption of ASU 2016 - 02 had a material impact on the Company's consolidated financial statements and related disclosures.

**NOTE 3 – INVENTORIES**

The Company's inventories are comprised of the following for the periods ended January 1, 2022 and January 2, 2021:

---

| | | |
|:---|:---|:---|
|  | January 1, 2022 | January 2, 2021 |
| Raw Materials | $4453785 | $6968808 |
| Work in process | 1155439 | 1712380 |
| Finished goods | 1978861 | 1125588 |
|  | $7588085 | $9806776 |

---

The Company has also advanced deposits for the production and delivery of mulch products in the amount of $-0- and $250,000 as of January 1, 2022, and January 2, 2021, respectively, which are included in "Prepaid expenses and other current assets."

**NOTE 4 – PROPERTY AND EQUIPMENT**

Property and equipment consists of the following:

---

| | | |
|:---|:---|:---|
|  | **January 1, 2022** | **January 2, 2021** |
| Machinery and equipment | $20777465 | $20135720 |
| Vehicles | 4383043 | 4177851 |
| Land | 6807573 | 1502024 |
| Buildings | 6234718 |  |
| Leasehold improvements | 283268 | 826737 |
| Construction in process | 19599106 | 465750 |
|  | 58085173 | 27108082 |
| Less: accumulated depreciation | (6036027) | (2949785) |
| Property and equipment, net | $52049146 | $24158297 |

---

Total depreciation expense between cost of revenue and operating expenses for the three months and year ended January 1, 2022, was $895,950 and $3,324,798, respectively. For the three months and year ended January 2, 2021, the total depreciation expense between cost of revenue and operating expenses was $882,814 and $2,668,230, respectively.

The Company had several bulk sawmill equipment purchases on December 31, 2021, that are included in construction in process above. Construction in process includes sawmill equipment and labor costs associated with the installation of the equipment. The first one was for 400,000 shares of common stock, valued at $3,696,000, for equipment in Beaver, WA, appraised for $8,570,600. The $4,874,600 difference between the 400,000 shares closing at $9.24 per share on the date of the transaction resulted in the recognition of a bargain purchase gain.

The second bulk sawmill equipment purchase was for a facility in Jasper, FL, which was appraised for $9,798,550. The $7,550,066 purchase price was paid for by cash and debt. The $2,248,484 difference between the equipment's appraised value and its purchase price was recognized as a bargain purchase gain.

**NOTE 5 – ACQUISITIONS**

*Mulch Manufacturing, Inc. Acquisition*

On January 31, 2020, the Company entered into a Business Combination Agreement (the "Mulch Acquisition") with MM and its sole shareholder, Ralph Spencer ("Spencer") (collectively the "MM Parties"), pursuant to which the Company acquired all of the shares of MM. Upon closing, MM became a wholly-owned subsidiary of SGTM.

Pursuant to the Mulch Acquisition, at the effective time of the acquisition:

● All
 of MM's outstanding common stock was exchanged for an aggregate of 40,000,000 shares of SGTM's common stock.

● One
 million shares previously issued to the MM shareholder in connection with the sale of equipment by MM to NSR LLC in November 2019
 were cancelled.

● There
 were specific excluded assets that were retained by Spencer and treated as transferred to Spencer prior to the acquisition consisting
 of cash, real estate, and certain vehicles and equipment. Spencer agreed to allow the Company to use some of the real estate rent-free
 until January 31, 2022, at which time the Company had the option of either leasing or purchasing it at the fair market value. The
 Company has included an ROU asset value on the property rent abatement.

● All
 of the existing MM notes and accounts receivable, and inventory at the date of the Mulch Acquisition are included in the acquisition
 and the Company had immediate possession of them by its ownership of MM. However, the 40 million shares of the Company's common
 stock that was issued as consideration was based on these assets being removed from MM prior to the acquisition. The value of these
 assets are valued separately from the share exchange and that certain demand promissory note payable to Spencer in the amount of
 approximately $14 million was adjusted to reflect the value of the inventory, accounts receivable, and any other sums lent by Spencer
 to MM.

The Company accounted for these transactions in accordance with the acquisition method of accounting for business combinations. An independent appraisal, made in February 2020, determined the fair market value of MM's property and equipment to be $17,228,295. Assets and liabilities of the acquired business were included in the consolidated balance sheets as of January 1, 2022, and January 2, 2021, based on their respective estimated fair values on the date of acquisition. Based on a closing market price of $0.15 per share on the January 31, 2020, business combination date, the assumption of net liabilities plus a bargain purchase recognition and asset write-up, the Company is recognizing the allocation to the accounts of MM as follows:

---

| | |
|:---|:---|
| Appraised fair market value of property and equipment | $17228295 |
| ROU asset value on property rent abatement | 817503 |
| Less: Net book value of just MM's property and equipment on January 31, 2020 | (1883657) |
| Excess of fair market over net book value of MM property and equipment | 16162141 |
| Value of common stock issued for MM | $6000000 |
| Net book value of MM on January 31, 2020: |  |
| Cash | $6240670 |
| Accounts receivable and inventory | 15402355 |
| Property and equipment | 1883657 |
| Investments | 830000 |
| Prepaid expenses and other assets | 192361 |
| Supply agreement | 453750 |
| Accounts payable and accrued expenses | (1215820) |
| Notes payable | (25643025) |
| Net book value (assumed) of MM on January 31, 2020 | (1856052) |
| Total purchase price, including assumed net liabilities, of MM | 7856052 |
| Excess of fair value over net book value plus |  |
| purchase price of MM property and equipment (bargain purchase gain) | $8306089 |
| Purchase price of MM | $7856052 |
| Bargain purchase gain and property and equipment write-up | 8306089 |
| Net book value of MM on January 31, 2020 | (1856052) |
| Total to be allocated | $14306089 |
| Allocation of MM purchase price and bargain purchase gain: |  |
| Cash | $6240670 |
| Accounts receivable and inventory | 15402355 |
| Property and equipment | 17228295 |
| ROU assets | 817503 |
| Investments | 830000 |
| Prepaid expenses and other assets | 192361 |
| Supply agreement | 453750 |
| Accounts payable and accrued expenses | (1215820) |
| Notes payable | (25643025) |
|  | $14306089 |

---

*National Storm Recovery LLC Merger*

As discussed under Note 1, on April 18, 2019 SGCP, an inactive shell corporation, became the parent company of NSR LLC. Due to NSR LLC's active operations, NSR LLC is regarded as the acquirer and its historical financials are used for reporting purposes. At the effective time of the Merger:

● All
 of NSR LLC's outstanding common equity units were exchanged for an aggregate of 40,000,000 shares of SGCP's Common Stock
 by the members of NSR LLC.

● There
 was a note obliging SGCP to pay the holder of the note $100,000, or the holder may exercise its conversion rights. Pursuant to the
 note's subsequent amendments, SGCP will issue 25,000 post-reverse split shares of the Company's common stock. On May
 5, 2020, SGTM, as SGCP's successor, issued these shares.

● The
 holder of 90 shares of Preferred Series A stock sold their shares to Tony Raynor, the Chief Executive Officer of NSR LLC, for a cash
 payment of $25,000 plus the issuance of 4,000,000 shares of SGCP common stock or payment of $100,000 by February 28, 2020. The Company
 recorded accrued compensation for this $100,000 for 2019, which was satisfied by SGTM issuing the 4,000,000 shares on February 26,
 2020.

Immediately following the Merger, the Company had 40,602,636 shares of common stock and 90 shares of Series A preferred stock issued and outstanding on an after stock split basis. The pre-Merger stockholders of the Company retained an aggregate of 602,636 shares of common stock of the Company, representing approximately 1% ownership of the post-Merger Company. Additionally, the 90 shares of Preferred Stock Series A representing 90% voting control, were also transferred as part of the Merger (see Note 10). Therefore, upon consummation of the Merger, there was a change in control of the Company, with the former owners of NSR LLC effectively acquiring control of the Company.

The Company accounted for these transactions in accordance with the acquisition method of accounting for business combinations. Assets and liabilities of the acquired business were included in the consolidated balance sheets as of January 1, 2022, and January 2, 2021, based on the respective estimated fair value on the date of acquisition as determined in a purchase price allocation using available information and making assumptions management believed are reasonable. NSR LLC did not provide any consideration for SGCP. This transaction was an exchange made by its members of their interest in NSR LLC for the 40,000,000 shares of SGCP. SGCP had no identifiable assets and its only liability was for a $100,000 note payable, which was assumed as part of this merger. Therefore, the Company has recorded $100,000 of Additional Paid-in-Capital from this transaction as the excess of purchase price over the fair value of the net identifiable assets.

*Day Dreamer Productions LLC Acquisition*

The Company entered into an agreement to acquire 100% of the membership interest of Day Dreamer Productions, LLC around January 18, 2021, in exchange for 200,000 shares of the Company's stock. This transaction was closed on December 30, 2021, when the Company issued the shares to its sole member. This member was also retained as an employee with responsibility for managing the activities of Day Dreamer Productions, LLC.

**NOTE 6 – INTANGIBLE ASSETS**

The below table summarizes the identifiable intangible assets as of January 1, 2022, and January 2, 2021:

---

| | | | |
|:---|:---|:---|:---|
|  | **Useful life** | **January 1, 2022** | **January 2, 2021** |
| Supply contract <sup>(1)</sup> | 10 | $453750 | $453750 |
| Less: Accumulated amortization |  | (51810) | (41250) |
| Impairment |  | (317500) | (317500) |
| Total, net |  | $84440 | $95000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) These
 intangible assets were acquired in the acquisition of MM on January 31, 2020.

The weighted average useful life remaining on identifiable intangible assets is 8 years.

Amortization of identifiable intangible assets for the three months and year ended January 1, 2022, was $2,640 and $10,560, respectively. Amortization of identifiable intangible assets for the three months and year ended January 2, 2021, was $11,250 and $33,750, respectively.

The below table summarizes the future amortization expense for the next five years:

---

| | |
|:---|:---|
| 2022 | $10560 |
| 2023 | 10560 |
| 2024 | 10560 |
| 2025 | 10560 |
| 2026 | 10560 |
| Thereafter | 31640 |
|  | $84440 |

---

**NOTE 7 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES**

Accounts payable and accrued expenses consist of the following amounts:

---

| | | |
|:---|:---|:---|
|  | **January 1, 2022** | **January 2, 2021** |
| Accounts payable | $2350056 | $557145 |
| Accrued interest | 8076 | 91983 |
| Accrued expenses | 313644 | 62477 |
|  | $2671776 | $711605 |

---

**NOTE 8 –NOTES PAYABLE**

---

| | | |
|:---|:---|:---|
|  | **Jan 1, 2022** | **Jan 2, 2021** |
| Seller note payable bearing interest at 6.0%, monthly payments of principal and interest of $76,300 beginning October 2021 with a $9,819,606 balloon due September 2024, secured by mortgaged real estate | $10580504 | $-0- |
| Various third-party obligations secured by assets the Company acquired subject to this indebtedness to various third-party creditors, bearing interest at a 5% average rate. Monthly payments of $122,881 principal and interest beginning January 2022 through December 2024 | 4100000 | -0- |
| Unsecured note payable to seller on bulk equipment purchase, bearing 4.0% interest. First $300,000 payment of principal and interest due March 2022, $200,000 payments of principal and interest due quarterly thereafter until paid in full | 1400000 | -0- |
| Note payable to a bank, secured by equipment, bearing interest at 2.95%. Monthly payments of principal and interest in the amount of $28,698 beginning January 2021 and due through December 2025 | 1297817 | 1599068 |
| Unsecured note payable to a financial institution under the SBA Paycheck Protection Program for MM bearing interest at 1.0%. Monthly payments of principal and interest in the amount of $82,061 beginning August 2022 are due through April 2023. | 1236080 | -0- |
| Unsecured note payable to a financial institution under the SBA Paycheck Protection Program for MM bearing interest at 1.0%. Monthly payments of principal and interest in the amount of $82,061 beginning November 2020 are due through April 2022. | -0- | 1458200 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $8,750 due August 2020 through July 2025. | 342680 | 432211 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $8,316 due August 2020 through July 2025. | 325718 | 410817 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $7,034 due August 2020 through July 2025. | 347452 | 416642 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $7,392 due February 2021 through January 2026. | 334000 | 399247 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,230 due December 2020 through November 2025. | 222887 | 275707 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due November 2020 through October 2025. | 217213 | 269915 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due October 2020 through September 2025. | 212727 | 265602 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,341 due August 2020 through July 2025. | 209200 | 263857 |
| Note payable to an equipment financing company bearing interest at 3.95%. Monthly payments of principal and interest of $5,201 due August 2020 through July 2025. | 208226 | 261275 |
| Note payable to the individual seller of the landscaping and recovery services business to NSR LLC bearing interest at 5%. Monthly payments of $5,000 are due through October 2023 with a $100,000 balloon due November 2023 | 195779 | 244656 |
| Non-interest bearing note payable to an equipment financing company with monthly principal payments of $5,842 due December 2021 through November 2023 | 134353 | -0- |

---

---

| | | |
|:---|:---|:---|
| Non-interest bearing note payable to an equipment financing company with monthly principal payments of $16,460 due May 2021 through April 2022. | 65838 | -0- |
| Unsecured note payable to a financial institution under the SBA Paycheck Protection Program for NSR LLC bearing interest at 1.0%. Monthly payments of principal and interest of $8,719 beginning November 2020 are due through April 2022. | -0- | 154928 |
| Note payable to an equipment financing company bearing interest at 0.00%. Monthly payments of principal of $6,993 beginning November 2020 are due through October 2022 | 69928 | 153842 |
| Note payable to an equipment financing company bearing interest at 9%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $3,933 to $3,993 and extended three months through December 2023 | 87611 | 126005 |
| Note payable to an equipment financing company bearing interest at 5.94%. Monthly payments of principal and interest of $1,174 beginning January 2022 through March 2028 | 73217 | -0- |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $2,410 to $2,452 and extended three months through December 2023 | 54397 | 78628 |
| Convertible note payable to a private investor bearing interest at 10%. Principal and accrued interest are due January 2021. The Company has the option of granting conversion rights at a 30% discount on the average closing price over the last 10 trading days. The Company is also obligated to issue 300,000 shares of common stock as an inducement on the issuance of the note | -0- | 75000 |
| Note payable to an equipment financing company bearing interest at 9%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $1,861 to $1,890 and extended three months through December 2023 | 41466 | 59633 |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $1,808 to $1,840 and extended three months through December 2023 | 40764 | 58892 |
| Note payable to an equipment financing company bearing interest at 11%. Due to five month COVID-19 payment suspension, monthly payments of principal and interest of $1,692 due from August through July 2023 with a $10,152 balloon payment in August 2023 | 36446 | 51753 |
| Note payable to an equipment financing company bearing interest at 12%. Due to five month COVID-19 payment suspension, monthly payments of principal and interest of $1,749 due from August 2020 through June 2023 with a $10,496 balloon payment in July 2023 | 37220 | 52540 |
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $977 due through August 2024 | 28071 | 37153 |

---

---

| | | |
|:---|:---|:---|
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $932 due through September 2024 | 27581 | 35525 |
| Note payable to an equipment financing company bearing interest at 8%. Monthly payments of principal and interest of $766 due through August 2024 | 22395 | 29746 |
| Note payable to an investment company non-interest bearing with monthly payments of $5,000 principal due through March 2021. | -0- | 15000 |
| Note payable to an equipment financing company bearing interest at 8%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $751 to $765 and extended three months through January 2024 | 17512 | 24908 |
| Note payable to an equipment financing company bearing interest at 14%. Due to three month COVID-19 payment suspension, monthly payments of principal and interest increased from $1,874 to $1,900 and extended three months through February 2021 | -0- | 3736 |
| Total notes payable to unrelated parties | 21967082 | 7254486 |
| Short-term portion of notes payable | 4486461 | 2459945 |
| Long-term portion of notes payable | $17480621 | $4794541 |

---

The schedule of future maturities on the above notes are as follows:

---

| | |
|:---|:---|
| Year | Amount |
| 2022 | $4486461 |
| 2023 | 4135389 |
| 2024 | 12440896 |
| 2025 | 825632 |
| 2026 | 61774 |
| 2027 & after | 16930 |
|  | $21967082 |

---

The above notes include three Paycheck Protection Program (PPP) loans between MM and NSR LLC totaling $2,849,208, of which the $1,458,200 and $154,928 loans were forgiven during the year ended January 1, 2022. Under the PPP, to the extent the Company uses the loan proceeds on qualifying disbursements, these loans may be forgiven. Although the Company believes that the majority of the proceeds under the remaining loan of $1,236,080 has been spent on qualifying expenditures, it has not recorded any gain on forgiveness of this indebtedness for the year ended January 1, 2022.

*Related Party*

On the January 31, 2020, date of the Mulch Acquisition, there was a balance on a note payable to MM's sole shareholder in the amount of $14,223,046. This note was adjusted for the receivables and inventory of MM that was excluded from the share exchange resulting in a restated and amended $15,402,355 promissory note bearing 4% interest. Also on January 31, 2020, this shareholder placed a $6,240,670 deposit with the Company. To the extent the Company consumed this cash deposit for operations, this shareholder was paid 4% interest. In August 2021 the outstanding balance on these two obligations plus accrued interest as of January 2, 2021, totaled $17,484,728, which was contributed to the capital of the Company. Interest accrued on these obligations for 2021 was credited against interest expense. Accordingly, the balance on the shareholder deposit as of January 1, 2022, and January 2, 2021, was $-0- and $2,382,417, respectively. The balance on the restated and amended promissory note was $-0- and $15,402,355 as of January 1, 2022, and January 2, 2021, respectively.

In January 2019, MM issued a promissory note to an employee in the amount of $6,000,000, $2,000,000 of which was paid during the year ended December 28, 2019. The note bore interest at 3% per annum payable quarterly, required semi-annual principal payments of $300,000 starting on June 1, 2021 and had no maturity date. As part of the Mulch Acquisition, this note was assumed by the Company. In August 2021, the holder of this note exchanged his, at that time, $3,700,000 balance in the note for 6,000,000 Company shares. As of January 1, 2022, and January 2, 2021, the balance on this note was $-0- and $4,000,000, respectively.

Total interest expense (credit) on the above related party notes and deposit was approximately $-0- and $184,000 for the three months ended January 1, 2022, and January 2, 2021, respectively. Total interest expense on the above related party notes and deposit for the year ended January 1, 2022, and January 2, 2021, was approximately $77,000 and $722,000, respectively.

 *Sale/Leaseback*

The Company entered into a lease agreement (the "Lease") with a third party financing company (the "Lessor") on August 8, 2022 whereby the Lessor provided the Company with $7,500,000 in financing to purchase equipment located at the Company's facilities in Jasper, Florida, Callahan, Florida and Homerville, Georgia (the "Equipment"). The Equipment was leased back to the Company pursuant to the Lease which includes the following key financial terms: an initial lease term of 30-months from the base period commencement date which period will automatically renew for successive one year periods unless the Company notifies the Lessor at least 150 days prior to the end of the term of its intent to terminate the lease or exercise a buyout option. The Company has the right to buyout the Renewal Period obligations for an amount to be determined by Lessor and the Company. The monthly rental payments due by the Company under the Lease are initially $262,125 plus applicable sales/use and property tax subject to increase by an amount equal to.00006776 for every five basis point increase in thirty-six (36) month U.S. Treasury Notes as of the date of the lease multiplied by $7,500,000. The thirty-six (36) month U.S. Treasury Note yield is used as the basis for the calculation of the increase is 3.56%. In addition, the Company granted the Lessor a security interest in the equipment which is the subject of the Lease.

The sale/leaseback transaction was recorded as a ROU Asset and Liability in accordance with ASC 842 and the fixed assets were reduced accordingly.

**Note 9 - Stockholders' Equity**

*Preferred Stock*

On December 31, 2019, the Company's Board of Directors adopted articles of incorporation in the state of Delaware authorizing, without further vote or action by the stockholders, to create out of the unissued shares of the Company's common stock, $0.0001 par value Preferred Stock. The Board of Directors is authorized to establish, from the authorized and unissued shares of Preferred Stock, one or more classes or series of shares, to designate each such class and series, and fix the rights and preferences of each such class of Preferred Stock; which class or series shall have such voting powers, such preferences, relative, participating, optional or other special rights, and such qualifications, limitations or restrictions as shall be stated and expressed in the resolution or resolutions providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board of Directors prior to the issuance of any shares thereof. The articles of incorporation and designation authorizes the issuance of 5,000,000 shares of Preferred Stock, of which 100 shares have been designated as Series A Preferred Stock, of which 90 of Series A are issued and outstanding as of January 1, 2022. Each holder of outstanding shares of Series A Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Series A Preferred Stock held by such holder as of the record date for determining stockholders entitled to vote on such matter, with each share casting a vote equal to: the quotient of the sum of all outstanding shares of common stock together with any and all other securities of the Company that provide for voting on an "as converted" basis divided by 0.99.

*Equity Transactions During the Period*

The following issuances of common stock affected the Company's Stockholders' Equity:

On January 31, 2020, as a result of the Mulch Acquisition, 40,000,000 shares of common stock were issued along with 1,000,000 shares cancelled from the October 2, 2019, effective issuance to the same shareholder (Note 5).

On February 26, 2020, the Company issued 4,000,000 shares of common stock at par value as part of the amended and restated share purchase and equity exchange agreement with SGCP.

Between April 9 and May 20, 2020, the Company issued 1,250,000 shares in connection with a $100,000 stock subscription on November 26, 2019.

On May 14, 2020 the Company issued 25,000 shares in satisfaction of an obligation assumed pursuant to the reverse merger with SGCP in 2019.

On May 20, 2020 the Company issued 786,045 shares upon a note holder's exercise of a conversion feature permitting the holder to acquire shares at a 30% discount to the prior 12 day average price as of May 15, 2020, $0.349417 per share, in satisfaction of $250,000 principal and $24,658 accrued interest on the note.

On June 12, 2020 the Company issued 354,724 shares upon a note holder's exercise of a conversion feature permitting the holder to acquire shares at a 30% discount to the prior 12 day average price as of June 10, 2020, $0.310010 per share, in satisfaction of $100,000 principal and $10,000 accrued interest on the note.

On January 13, 2021, the Company issued 300,000 shares in satisfaction of a 2020 accrual for debt financing cost.

On March 5, 2021, the Company issued 25,000 shares to an employee as compensation.

On August 16, 2021, the Company and Ralph Spencer entered into a Settlement Agreement wherein, among other provisions, all outstanding debt was extinguished. This total $17,484,728 debt extinguishment was credited to Additional Paid-in Capital. Therefore, on August 16, 2021, the Company recognized a $17,484,728 capital contribution from the extinguishment of debt.

On August 25, 2021, the Company issued 6,000,000 shares in exchange for a $3,400,000 note.

On October 4, 2021, the Company issued 125,000 shares for consulting service compensation.

Between October 15, and December 15, 2021, the Company redeemed 11,397,984 shares pursuant to a stock repurchase agreement (see Note 12).

Between October and December 15, 2021, the Company issued 5,640,004 shares pursuant to subscription agreements at a price of $0.75 per share. These agreements provided for piggyback registration rights on a potential future registration of Company stock. The agreements also provided stock warrants equal to the number of subscribed shares. These warrants can be exercised at a price of $1.50 per share and expire after one year. No allocation of proceeds was made to the warrants since the subscribed shares of common stock were issued at a price below that of the publicly traded shares.

On December 30, 2021, the Company issued 200,000 shares pursuant to an agreement to acquire 100% of the membership interest in Day Dreamer Production, LLC.

On December 31, 2021, the Company issued 400,000 shares to acquire equipment in Beaver, WA.

**NOTE 10 – LEASES**

A lease is defined as a contract that conveys the right to control the use of identified tangible property for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASC Topic 842 which primarily affected the accounting treatment for operating and finance lease agreements in which the Company is the lessee including Company leases of vehicles and equipment for use in the storm and disaster recovery work. The Company elected to not recognize ROU assets and lease liabilities arising from short-term leases with initial lease terms of twelve months or less (deemed immaterial) on the accompanying consolidated balance sheets.

ROU assets include any prepaid lease payments and exclude any lease incentives and initial direct costs incurred. Lease expense for minimum lease payments is recognized on the effective interest plus: for finance type leases, straight-line amortization of the asset's original ROU over its lease term; or, for operating leases, the effective amortization on the lease liability. The lease terms may include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option.

When measuring lease liabilities for leases that were classified as operating and financing leases as of January 1, 2019, NSR LLC discounted lease payments using its estimated incremental borrowing rate of 10% at January 1, 2019. From January 2020, to September 2021, MM entered into operating leases using its incremental borrowing rate of 4% to discount lease payments. Since October 2021, MM uses a 6% incremental borrowing rate.

The following table presents supplemental lease information:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended | Three Months Ended | Year Ended | Year Ended |
| Lease cost | January 1, 2022 | January 2, 2021 | January 1, 2022 | January 2, 2021 |
| Finance lease cost |  |  |  |  |
| Amortization on ROU assets | $17792 | $20301 | $71169 | $79273 |
| Interest on lease liabilities | 4120 | 9327 | 19275 | 30707 |
| Operating lease cost | 65098 | 120821 | 611735 | 419173 |
| Short-term lease cost<u> </u> | 28876 | 73114 | 387517 | 457085 |
| Total lease cost | $115886 | $223563 | $1089696 | $986238 |
| &nbsp;&nbsp;&nbsp;Cash paid for amounts included in the measurement of lease liabilities for: |  |  |  |  |
| Finance leases: |  |  |  |  |
| Financing cash flows | $23366 | $23366 | $93465 | $103768 |
| Operating leases: |  |  |  |  |
| Operating cash flows | $65098 | $17806 | $177034 | $36371 |
| Weighted-average remaining lease term: |  |  |  |  |
| Finance leases |  |  | 1.8 years | 2.2 years |
| Operating leases |  |  | 4.3 years | 1.9 years |
| Weighted-average discount rate: |  |  |  |  |
| Finance leases |  |  | 10.0% | 10.0% |
| Operating leases |  |  | 4.3% | 5.0% |

---

Supplemental balance sheet information related to leases is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Financial Statement Line Item** | **January 1, 2022** | **Jan 2, 2021** |
| Assets: |  |  |  |
| Operating lease assets |  | $848840 | $548555 |
| Finance lease assets |  | 128515 | 199684 |
| **Total leased assets** | ROU asset | $977355 | $748239 |
| Liabilities: |  |  |  |
| Current: |  |  |  |
| Operating lease assets |  | $183874 | $58478 |
| Finance lease assets |  | 65312 | 74190 |
|  | Current portion of lease liability | 249186 | 132668 |
| Non-current |  |  |  |
| Operating lease assets |  | 664966 | 55376 |
| Finance lease assets |  | 86639 | 151952 |
|  | Lease liabilities, net of current portion | 751605 | 207328 |
| **Total lease liabilities** |  | $1000791 | $339996 |

---

As of January 1, 2022, remaining maturities of lease liabilities were as follows:

---

| | | |
|:---|:---|:---|
|  | Finance | Operating |
| 2022 | $77094 | $216600 |
| 2023 | 54172 | 168570 |
| 2024 | 40629 | 139469 |
| 2025 |  | 107969 |
| 2026 |  | 106553 |
| 2027 and thereafter | - | 220235 |
| Total | $171895 | $959396 |
| Amount representing interest | (19944) | (110556) |
| Lease liability | $151951 | $848840 |

---

**NOTE 11 – COMMITMENTS AND CONTINGENCIES**

*Legal Claims*

The Sustainable Green Team, LTD is currently involved in arbitration with Emerging Markets Consulting, LLC ("EMC"), a former service provider of the Company. On October 21, 2020, EMC initiated arbitration against the Company, alleging, among other things, breach of contract related to an agreement entered into between the Company (via NSR LLC) and EMC, in which the Company engaged EMC to provide it with consulting services related to the Company's capital structure, investor relations strategies, and fundraising plans, including the filing of an S-1 registration statement at some point in the future, in exchange for equity compensation in the Company. EMC seeks relief against the Company in the form of the equity compensation pursuant to the agreement (2,000,000 shares of the Company's Common Stock) and damages. The Company denies EMC's allegations, and has also initiated counterclaims against EMC for breach of the agreement by EMC, in which it is seeking damages resulting from EMC's breach of its duties under the agreement.

In addition, the Company named in its counterclaim to EMC's claim another similar service provider, Rainmaker Group Consulting, LLC ("Rainmaker"), as a pre-emptive defense against any actions brought by Rainmaker against the Company. Rainmaker engaged by the Company in 2019 to provide similar consulting services as EMC was engaged to provide in exchange for the same compensation (2,000,000 shares of the Company's Common Stock). The Company alleges that Rainmaker breached its agreement with the Company by not providing the services provided in the agreement between the Company and Rainmaker, and therefore Rainmaker is not entitled to any equity compensation by the Company. The Company has taken this action as a defensive measure against potential (in the Company's opinion) frivolous lawsuits brought by Rainmaker against the Company.

The Company is confident it will prevail in the ongoing arbitration described above being overseen by the American Arbitration Association.

On March 25, 2021, the Company filed a civil complaint in the Ninth Judicial Circuit Court in Orange County, Florida against Ralph Spencer, the former owner and CEO of Mulch Manufacturing, Inc., alleging certain tortious interference with the Company's business operations and dealings. On April 1, 2021, the Company was granted an Emergency Temporary Injunction by the Ninth Judicial Circuit Court in Orange County, Florida enjoining Mr. Spencer from, among other things, further attempts to interfere with the Company's business operations. On August 16, 2021, the Company settled this dispute and has released Ralph Spencer from the Emergency Temporary Injunction.

*Stock Redemptions*

The Company is committed to buying back 40,000,000 shares of its common stock over 24 months beginning in October, 2021, at a price of $0.375 per share.

**NOTE 12 – CONCENTRATION OF CREDIT RISK**

*Cash Deposits*

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of January 1, 2022, the excess of the insured limit in one account was $130,930. As of January 2, 2021, the Company had $78,688 in excess of the FDIC insured limit in one account.

*Revenues*

For the three months ending January 1, 2022, one customer accounted for 19% of revenue. For the year ending January 1, 2022, another customer accounted for 17% of revenue. For the three months and year ended January 2, 2021, there was no customer accounting for more than 10% and one customer accounting for 19% of revenue, respectively.

*Accounts Receivable*

As of January 1, 2022, one customer accounted for 24% of the Company's accounts receivable. As of January 2, 2021, one customer accounted for 14% of the accounts receivable.

**NOTE 13 – SUBSEQUENT EVENTS**

There are no material subsequent events.

## Exhibit 3.2

**Exhibit 3.2**

**BYLAWS**

**OF**

**THE SUSTAINABLE GREEN TEAM, LTD.**

**Article I**

**OFFICES**

**Section 1. *Registered Office.*** The registered office of the Company in Delaware shall be that set forth in the Certificate of Incorporation or in the most recent amendment of the Certificate of Incorporation or in a certificate prepared by the Board of Directors and filed with the Secretary of State of Delaware changing the registered office.

**Section 2. *Other Offices.*** The Company may also have offices and places of business at such other places both within and without the State of Delaware as the Board of Directors may from time to time determine or the business of the Company may require.

**ARTICLE II**

**MEETINGS OF SHAREHOLDERS**

**Section 1. *Place of Meetings.*** All meetings of the shareholders of the Company shall be held at its registered office or at such other place within or without the State of Delaware as shall be stated by the Board of Directors in the notice of the meeting. In the absence of designation otherwise, meetings shall be held at the registered office of the Company in the State of Delaware, provided, however, that any meeting called by or at the demand of a shareholder or shareholders will be held in the county where the principal executive office of the Company is located.

**Section 2. *Time of Meetings.*** The Board of Directors shall designate the time and day for each meeting. In the absence of such designation, every meeting of the shareholders shall be held at ten o'clock A.M.

**Section 3. *Annual Meetings.***

a.) <u>First Annual Meeting</u>. The first annual meeting of the shareholders shall be held on a day designated by the Board of Directors.

b.) <u>Subsequent Annual Meetings</u>. Each subsequent annual meeting of the shareholders shall be held on the same day each year, subject to the power of the Board of Directors to change the date, or if that day shall fall upon a legal holiday, on the next succeeding business day; except that the Board of Directors may, in its discretion and solely for convenience, determine in any year an annual meeting date falling not earlier than ten (10) days prior to nor later than thirty (30) days subsequent to such designated annual meeting date, or may, for reasonable cause, postpone such annual meeting date to a subsequent date within the same calendar year as designated by the Board of Directors.

c.) <u>Election of Directors</u>. At any annual meeting the shareholders, voting as provided in the Certificate of Incorporation or in these Bylaws, may designate any change in the number of Directors to constitute the Board of Directors, shall elect a Board of Directors, and shall transact such other business as properly may come before the meeting.

d.) <u>Special meetings</u>. Special meetings of the shareholders, for any purpose or purposes, unless otherwise prescribed by statute or by the Certificate of Incorporation, may be called by the President or the Board of Directors.

**Section 4. *Notice of Meetings.*** Notice of meetings shall be in writing. Such notice shall state the place, date, and time of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called. A copy of such notice shall be either delivered personally or mailed, postage prepaid, to each shareholder of record entitled to vote at such meeting pursuant to Article II, Section 12 hereof not less than ten (10) nor more than sixty (60) days before such meeting. If mailed, it shall be directed to each shareholder at his address as it appears upon the records of the Company, and upon such mailing of any such notice, the service thereof shall be complete, and the time of (he notice shall begin to run from the date that such notice is deposited in the mail for transmission to such shareholder. Personal delivery of any such notice to a corporation, an association, or a partnership shall be accomplished by personal delivery of such notice to any officer of a corporation or an association or to any member of a partnership.

**Section 5. *Waiver of Notice.*** Notice of any meeting of the shareholders may be waived before, at, or after such meeting in a writing signed by the shareholder or representative thereof entitled to vote the shares so represented. Such waiver shall be filed with the Secretary or entered upon the records of the meeting. Attendance of a shareholder or his representative at a meeting shall also constitute a waiver of notice of such meeting, except when such shareholder or representative attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.

**Section 6. *Purpose of Special Meetings.*** Business transacted at any special meeting of the shareholders shall be limited to the matters stated in the notice, or other matters necessarily incidental thereto.

**Section 7. *Quorum; Adjournment.*** The holders of a majority of the voting power of all shares entitled to vote, present in person or represented by proxy, shall constitute a quorum for the transaction of business at all meetings of the shareholders, except as may be otherwise provided by statute or by the Certificate of Incorporation. If, however, such quorum shall not be present or represented at any meeting of the shareholders, the shareholders entitled to vote thereat, present in person or represented by proxy, shall have the power to adjourn the meeting from time to time, without notice other than announcement at such meeting, until a quorum shall be present or represented; provided, however, that if the adjournment is for more than thirty (30) days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of such adjourned meeting shall be given to each shareholder of record entitled to vote at such meeting. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the original meeting in accordance with the notice thereof. If a quorum is present when a duly called or held meeting is convened, the shareholders present in person or represented by proxy may continue to transact business until adjournment notwithstanding the withdrawal of enough shareholders originally present in person or by proxy to leave less than a quorum.

**Section 8. *Vote Required.*** When a quorum is present or represented at any meeting, the vote of the holders of a majority of the voting power of all shares entitled to vote present in person or represented by proxy shall decide any question brought before such meeting, unless the question is one that by express provision of statute or of the Certificate of Incorporation or these Bylaws requires a different vote, in which case such express provision shall govern the vote required.

**Section 9. *Voting Rights.*** Except as may be otherwise required by statute or the Certificate of Incorporation or these Bylaws, every shareholder of record of the Company shall be entitled at each meeting of the shareholders to one vote for each share of stock standing in his name on the books of the Company.

**Section 10. *Proxies.*** At any meeting of the shareholders, any shareholder may be represented and vote by a proxy or proxies appointed by an instrument in writing and filed with the Secretary at or before the meeting. An appointment of a proxy or proxies for shares held jointly by two or more shareholders is valid if signed by any one of them, unless and until the Company receives from any one of those shareholders written notice denying the authority of such other person or persons to appoint a proxy or proxies or appointing a different proxy or proxies, in which case no proxy shall be appointed unless all joint owners sign the appointment. In the event that any instrument shall designate two or more persons to act as proxies, a majority of such persons present at the meeting, or if only one shall be present then that one, shall have and may exercise all of the proxies so designated unless the instrument shall otherwise provide. If the proxies present at the meeting are equally divided on an issue, the shares represented by such proxies shall be voted proportionately on such issue. No proxy shall be valid after the expiration of three (3) years from the date of its execution unless the proxy provides for a longer period. A duly executed proxy shall be irrevocable if it so states and if, and only as long as, it is coupled with an interest sufficient in law to support an irrevocable power. Subject to the above, any duly executed proxy shall continue in full force and effect and shall not be revoked unless written notice of its revocation or a duly executed proxy bearing a later date is filed with the Secretary of the Company.

**Section 11. *Action in Writing.*** Except as may be otherwise required by statute or the Certificate of Incorporation, any action required or permitted to be taken at any meeting of the shareholders of the Company may be taken without a meeting, without prior notice, and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the holders of the shares of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be given to those shareholders who have not consented in writing.

**Section 12. *Closing of Books; Record Date.*** The Board of Directors may fix a date, not exceeding sixty (60) nor less than ten (10) days preceding the date of any meeting of the shareholders of the Company, as a record date for the determination of the shareholders entitled to notice of and to vote at such meeting, and in such case only shareholders of record on the date so fixed or their legal representatives shall be entitled to notice of and to vote at such meeting, notwithstanding any transfer of shares on the books of the Company after any record date so fixed. The Board of Directors may close the books of the Company against the transfer of shares during the whole or any part of such period. If the Board of Directors fails to fix such a record date, the record date shall be the close of business on the day next preceding the day on which notice is given.

**Article iii**

***Directors***

**Section 1. *General Powers.*** The business of the Company shall be managed by its Board of Directors, which may exercise all such powers of the Company and do all such lawful acts and things as are not by statute or by the Certificate of Incorporation or by these Bylaws directed or required to be exercised or done by the shareholders.

**Section 2. *Number; Qualifications.*** Until the first meeting of the shareholders, the number of Directors which shall constitute the whole Board shall be the number named in the Certificate of Incorporation or otherwise appointed by the Incorporator of the Company prior to the issuance of shares of the Company. Thereafter, the number of Directors that shall constitute the whole Board shall be at least one (1). In the absence of a resolution of the shareholders or the Directors, the number of Directors shall be the number last fixed by the shareholders or the Directors; provided, however, that the Board of Directors may not decrease the number of Directors below the number last designated by the shareholders. Directors need not be shareholders. Each of the Directors shall hold office until the next succeeding regular meeting of shareholders and until his successor shall have been duly elected and qualified, or until his earlier death or resignation or removal from office as hereinafter provided.

**Section 3. *Vacancies.*** In the event that any member of the Board of Directors shall resign, die, be removed from office, become disqualified, or refuse to act during his term of office, or any vacancy or vacancies in the Board of Directors shall occur for any other reason, such vacancy or vacancies may be filled by a majority vote of the remaining members of the Board of Directors, although less than a quorum, the provisions of Article III, Section 4(e) hereof notwithstanding. However, in the event that there are no duly elected and qualified Directors remaining in office, then the shareholders shall elect by majority vote a new Director or new Directors to fill such vacancy or vacancies. The voting by the shareholders to fill such vacancy or vacancies shall be conducted as provided in the Certificate of Incorporation and these Bylaws. When one or more Directors shall give notice of his or their resignation to the Board, effective at a future date, the Board (inclusive of the resigning member or members) shall have power to fill such vacancy or vacancies to take effect when such resignation or resignations shall become effective. Each Director elected to hold office as provided in this Article III, Section 3 shall hold office until the next succeeding regular meeting of the shareholders and until his successor shall have been elected and qualified, or until his earlier resignation or removal from office as hereinafter provided.

**Section 4. *Meetings.***

a.) <u>Place of Meetings</u>. The Board of Directors of the Company may hold meetings, both regular and special, either within or without the State of Delaware.

b.) <u>Regular Meetings</u>. As soon as practicable after each annual election of Directors, the Board of Directors shall meet at the registered office of the Company, or at such other place within or without the State of Delaware as may be designated by the Board of Directors, for the purpose of electing the officers of the Company and for the transaction of such other business as shall come before the meeting. Other regular meetings of the Board of Directors may be held without notice at such time and place within or without the State of Delaware as shall from time to time be determined by resolution of the Board of Directors.

c.) <u>Special Meetings</u>. Special meetings of the Board of Directors may be called by the Chair of the Board of Directors, the President or Secretary, or by one or more Directors, and shall be held at such time and place as shall be designated in the notice of such meeting.

d.) <u>Notice</u>. Notice of a special meeting shall be given to each Director at least 24 hours before the time of the meeting, or at the earliest time possible thereafter, but prior to such meeting, if it is impractical to give such notice 24 hours in advance. Notice may be given by any means calculated to apprise the Directors of the time, place and subject matter of the special meeting. Notice by mail shall be deemed to be given at the time when the same shall be mailed, such mailing to take place at least three (3) business days prior to such meeting. Whenever any provision of law, the Certificate of Incorporation, or the Bylaws require notice to be given, any Director may, in writing, either before or after the meeting, waive notice thereof. Except when a Director attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of business because the meeting is not lawfully called or convened, any Director, by his attendance at or participation in the action taken at any meeting, shall be deemed to have waived notice thereof.

e.) <u>Quorum; Voting Requirements; Adjournment</u>, A majority of the Board of Directors then in office shall be necessary to constitute a quorum for the transaction of business, and the act of a majority of the Directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, except as may be otherwise specifically provided by statute or by the Certificate of Incorporation or these Bylaws. If a quorum shall not be present at any meeting of the Board of Directors, the Directors present thereat may adjourn the meeting to another time or place, and no notice as to such adjourned meeting need be given other than by announcement at the meeting at which such adjournment is taken. If a quorum is present at the call of a meeting, the Directors may continue to transact business until adjournment notwithstanding the withdrawal of enough Directors to leave less than a quorum.

f.) <u>Organization of Meetings</u>. At all meetings of the Board of Directors, the Chair of the Board, if appointed, or in his absence, the President, or in his absence, any Director appointed by the President, shall preside, and the Secretary, or in his absence, any person appointed by the President, shall act as Secretary.

g.) <u>Action in Writing</u>. Except as may be otherwise required by statute or the Certificate of Incorporation, any action required or permitted to be taken at any meeting of the Board of Directors of the Company or any committee thereof may be taken without a meeting, without prior notice, and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by the number of Directors or committee members then serving in office that would be required to take such action, and the writing or writings are filed with the minutes of the Board of Directors or the committee.

**Section 5. *Committees.***

a.) <u>Executive Committee</u>. The Board of Directors may, by affirmative action of a majority of all of the Directors then in office, establish an Executive Committee consisting of one (1) or more Directors. Such Committee may meet at stated times or on notice by any committee member to all other members. The Executive Committee, to the extent determined by such action of the Board, shall have and exercise the authority of the Board and the management of the business of the Company. Any such Executive Committee shall act only in the interval between meetings of the Board and shall be subject at all times to the control and direction of the Board.

b.) <u>Other Committees</u>. The Board of Directors may establish, by affirmative action of a majority of the Directors present, other committees from time to time, making such regulations as it deems advisable with respect to the membership, authority, and procedures of such committees.

c.) <u>Committee Vacancies</u>. In the event of the absence or disqualification of a committee member (whether by resignation, removal, or other infirmity), the member or members present at any meeting of such committee and not disqualified from voting, whether or not constituting a quorum thereof, may unanimously appoint another member of the Board of Directors to replace the absent or disqualified member. Alternatively, the Board of Directors itself, voting as provided in these Bylaws, may replace the absent or disqualified member.

d.) <u>Limitations on Authority</u> it No committees of the Company shall have authority as to any of the following matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amending
 the Certificate of Incorporation; except that to the extent authorized in a resolution or resolutions providing for the issuance
 of shares adopted by the Board of Directors as provided by the Delaware General Corporation Law, a committee may fix the designations
 and any of the preferences or rights of such shares relating to dividends, redemption, dissolution, any distribution of assets of
 the Company, or the conversion into, or the exchange of such shares for, shares of any other class or classes or any other series
 of the same or any other class or classes of stock of the Company;

(2) Adopting
 an agreement of merger or consolidation;

(3) Recommending
 to the shareholders a sale, lease, or exchange of all or substantially all of the Company's property and assets;

(4) Recommending
 to the shareholders a dissolution of the Company or the revocation of a dissolution;

(5) Amending
 these Bylaws; or

(6) Declaring
 a dividend, authorizing the issuance of stock, or adopting a Certificate of Ownership and Merger pursuant to law; except that a committee
 may exercise such authority to the extent authorized in a resolution or resolutions adopted by the Board of Directors.

e.) <u>Minutes of Committee Meetings</u>. The committees shall keep regular minutes of their proceedings and report the same to the Board when required.

**Section 6. *Telephone Conference Meetings.*** Any Director or any member of a duly constituted committee of the Board of Directors may participate in any meeting of the Board of Directors or of any duly constituted committee thereof by means of a conference telephone or other comparable communication technique whereby all persons participating in such a meeting can hear and communicate with each other. For the purpose of establishing a quorum and taking any action at such a meeting, the members participating in such a meeting pursuant to this Article III, Section 6 shall be deemed present in person at such meeting.

**Section 7. *Compensation.*** Directors may be paid their expenses, if any, of attendance at each meeting of the Board of Directors. Directors who are not also salaried officers may be paid a fixed sum for attendance at each meeting of the Board of Directors. Nothing herein contained shall preclude any Director from serving the Company in any other capacity and receiving compensation therefor. Members of special or standing committees may be allowed like compensation for attending committee meetings.

**Section 8. *Limitation of Directors' Liabilities.*** A member of the Board of Directors or a member of any committee designated by the Board of Directors shall, in the performance of his dudes, be fully protected in relying in good faith upon the books of account or reports made to the Company by any of its officers, or by an independent certified public accountant, or by an appraiser selected with reasonable care by the Board of Directors or by any such committee, or in relying in good faith upon other records of the Company. Nothing in this Article III, Section 8 shall expand the liability of, or limit the indemnification available to, any person pursuant to the Company's Certificate of Incorporation or under applicable law.

**Section 9. *Resignation and Removal.*** Any Director may resign at any time by giving written notice to the Secretary. Such resignation shall take effect on the date of the Secretary's receipt of such notice or at such later date as specified therein. Except as otherwise provided by law, the entire Board of Directors or any individual Director may be removed from office with or without cause by a vote of the shareholders holding a majority of the shares then entitled to vote at an election of the Directors. A director shall automatically be removed from office without the need or any formal action on the part of the Company's Directors or Shareholders in the event that such Director becomes disqualified from office pursuant to Article III, Section 2, above.

**Section 10. *Chair of the Board of Directors.*** If the Board shall appoint a Chair of the Board of Directors, such Chair shall preside at all meetings of the Board of Directors and of the shareholders and shall perform such other duties as he may be directed to perform by the Board of Directors.

**Article IV**

**Officers**

**Section 1. *Selection and Qualification.***

a.) <u>Election; Qualifications</u>. The officers of the Company will be chosen by the Board of Directors and include a Chief Executive Officer, a Chief Financial Officer, a Secretary and such other officers or agents as it deems necessary, none of whom need be members of the Board of Directors. Any of the offices or functions of those offices may be held or exercised by the same person. The Company's Chief Financial Officer shall be its Treasurer and the Company's Chief Executive Officer shall be its President.

b.) <u>Additional Officers</u>. The Board of Directors may choose additional Vice Presidents, Assistant Secretaries, and Assistant Chief Financial Officers and such other officers and agents as it shall deem necessary, who shall hold their offices for such terms and shall exercise such powers and perform such duties as shall be determined from time to time by the Board of Directors.

**Section 2. *Salaries.*** The salaries of all officers of the Company shall be fixed by the Board of Directors or by the Chief Executive Officer if authorized by the Board of Directors.

**Section 3. *Term of Office.*** The officers of the Company shall hold office until their successors arc chosen and qualified. Any officer elected or appointed by the Board of Directors may be removed at any time with or without cause by the affirmative vote of a majority of the Board of Directors. Any officer may resign at any time by giving written notice to the Chief Executive Officer or the Secretary of the Company. Any vacancy occurring in any office of the Company by death, resignation, removal, or otherwise shall be filled by the Board of Directors. However, in the event that there should be no duly elected and qualified Directors remaining in office, then the shareholders shall elect a new Director or new Directors to fill such vacancy or vacancies.

**Section 4. *Chief Executive Officer.*** The Chief Executive Officer shall have general supervision over the affairs of the Company and over the other officers. Unless the Board has appointed a Chair of the Board of Directors, the Chief Executive Officer shall preside at all meetings of the Board of Directors and of the shareholders. The Chief Executive Officer shall, subject to approval of or review by the Board of Directors, appoint and discharge employees and agents of the Company and fix their compensation and make and sign contracts and agreements in the name and on behalf of the Company. The Chief Executive Officer shall put into operation such business policies of the Company as shall be decided upon by the Board of Directors.

**Section 5. *Chief Financial Officer.***

a.) <u>Custody of Funds and Accounting</u>. The Chief Financial Officer shall have the custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disbursements in books belonging to the Company and shall deposit all moneys and other valuable effects in the name and to the credit of the Company in such depositories as may be designated by the Board of Directors.

b.) <u>Disbursements and Reports</u>. The Chief Financial Officer shall disburse the funds of the Company as may be ordered by the Board of Directors, taking proper vouchers for such disbursements, and shall render to the Chief Executive Officer and the Board of Directors at the regular meetings of the Board, or when the Board of Directors so requires, an account of all his transactions as Chief Financial Officer and of the financial condition of the Company.

c.) <u>Bond</u>. If required by the Board of Directors, the Chief Financial Officer,shall give the Company a bond in such sum and with such surety or sureties as shall be satisfactory to the Board of Directors for the faithful performance of the duties of his office and for the restoration, upon the expiration of his term of office or his resignation, retirement, or removal from office, of all books, papers, vouchers, money, and other property of whatever kind in his possession or under his control belonging to the Company.

**Section 6. *Vice Presidents.*** The Vice President, if any, or if there be more than one, die Vice Presidents in the order determined by the Board of Directors, will, in the absence or disability of the Chief Executive Officer, perform the duties and exercise the powers of the Chief Executive Officer and will perform such other duties and have such other powers as are delegated to them by the Chief Executive Officer or as the Board of Directors shall prescribe.

**Section 7. *Secretary.*** The Secretary shall attend all meetings of the shareholders and of the Board of Directors and shall record all the proceedings of the meetings of the shareholders and of the Board of Directors in a book to be kept for that purpose and shall perform like duties for the standing committees when required, and shall give, or cause to be given, notice of all meetings of the shareholders and special meetings of the Board of Directors, and shall perform such other duties as may be prescribed by the Board of Directors or the Chief Executive Officer, under whose supervision he shall be.

**Section 8. *Assistant Secretaries.*** The Assistant Secretary, if any, or if there be more than one, the Assistant Secretaries in the order determined by the Board of Directors, will, in the absence or disability of the Secretary, perform die duties and exercise the powers of the Secretary and will perform such other duties and have such other powers as are delegated to them by the Chief Executive Officer or as the Board of Directors shall prescribe.

**Article V**

**Certificates of Stock**

**Section 1. *Issuance of Shares and Fractional Shares.*** The Board of Directors is,, authorized to issue shares and fractional shares of stock of the Company up to the full amount authorized by the Certificate of Incorporation in such amounts as may be determined by the Board of Directors and as permitted by law. No shares shall be allotted except in consideration of cash, services rendered, personal or real property, leases of real property, or a combination thereof received or to be received by the Company, or an amount transferred from surplus to stated capital upon a share dividend. At the time of each such allotment of shares, the Board of Directors shall state by resolution its determination of the fair market value to the Company in monetary terms of any consideration other than cash for which shares are allotted. The amount of consideration to be received in cash or otherwise shall not be less than the par value of the shares so allotted nor less than the stated capital to be represented by shares without par value so allotted.

**Section 2. *Form of Certificate.*** Every shareholder shall be entitled to have a certificate, signed by the Chair of the Board of Directors, the Chief Executive Officer, or a Vice President, and the Chief Financial Officer or an Assistant Chief Financial Officer, or the Secretary or an Assistant Secretary of the Company, certifying the number of shares of capital stock owned by him in the Company. If the Company shall be authorized lo issue more than one class of stock or more than one series of any class, the powers, designations, preferences, and relative, participating, optional, or other special rights of the various classes of stock or series thereof, and the qualifications, limitations, or restrictions of such preferences and/or rights shall be set forth in full on the face or back of the certificate which the Company shall issue to represent such stock, or, in lieu thereof, such certificate shall contain a statement that the Company will furnish without charge to each shareholder who so requests the powers, designations, preferences and relative, participating, optional, or other special rights of each class of stock or series thereof and the qualifications, limitations, or restrictions of such preferences and/or rights. Certificates representing the shares of the capital stock of the Company shall be in such form not inconsistent with law or the Certificate of Incorporation or these Bylaws as shall be determined by the Board of Directors.

**Section 3. *Facsimile.*** Whenever any certificate is countersigned or otherwise authenticated by a transfer agent, transfer clerk, or registrar, then a facsimile of the signatures of the officers or agents of the Company may be printed or lithographed upon such certificate in lieu of the actual signatures. In case any officer or officers who shall have signed, or whose facsimile signature shall have been used on, any such certificate or certificates shall cease to be such officer or officers of the Company, whether because of death, resignation, or otherwise, before such certificate or certificates shall have been delivered by the Company, such certificate or certificates may nevertheless be adopted by the Company and be signed and delivered as though the person or persons who signed such certificate or certificates, or whose facsimile signature or signatures shall have been used thereon, had not ceased to be the officer or officers of the Company.

**Section 4. *Lost, Stolen, or Destroyed Certificates.*** The Board of Directors may direct a new certificate or new certificates to be issued in place of a certificate or certificates previously issued by the Company alleged to have been lost, stolen, or destroyed, upon the making of an affidavit of the fact by the person claiming the certificate of stock to be lost, stolen, or destroyed. When authorizing such issue of a new certificate or new certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the owner of such lost, stolen, or destroyed certificate or certificates, or his legal representative, to advertise the same in such manner as it shall require and/or give the Company a bond in such sum as it may direct as indemnity against any claim that may be made against the Company with respect to the certificate or certificates alleged to have been lost, stolen, or destroyed.

**Section 5. *Transfer of Stock.*** Upon surrender to the Company or any transfer agent of the Company of a certificate for shares duly endorsed or accompanied by proper evidence of succession, assignment, or authority to transfer, it shall be the duty of the Company to issue a new certificate to the person entitled thereto, cancel the old certificate, and record the transaction upon its books; except that the Board of Directors may, by resolution duly adopted, establish conditions upon the transfer of shares of stock to be issued by the Company, and the purchasers of such shares shall be deemed to have accepted such conditions on transfer upon the receipt of the certificate representing such shares, provided that the restrictions shall be referred to on the certificates or the purchaser shall have otherwise been notified thereof.

**Section 6. *Closing of Transfer Books; Record Date.*** The Board of Directors may close the stock transfer books of the company for a period not exceeding sixty (60) days preceding the date of any meeting of shareholders as provided in Article II, Section 12 hereof or the date for payment of any dividend as provided in Article VI, Section 2 hereof or the date for the allotment of rights or the date when any change or conversion or exchange of capital stock shall go into effect. In lieu of closing the stock transfer books as aforesaid, the Board of Directors, may fix in advance a date, not exceeding sixty (60) days preceding the date for payment of any dividend, or the date for the allotment of rights, or the date when any change or conversion or exchange of capital stock shall go into effect, as a record date for the determination of the shareholders entitled to receive payment of any such dividend, or to any such allotment of rights, or to exercise the rights in respect of any such change, conversion, or exchange of capital stock, and in such case such shareholders and only such shareholders shall be shareholders of record on the date so fixed and shall be entitled to receive payment of such dividend, or to receive such allotment of rights, or to exercise such rights, as the case may be, notwithstanding any transfer of any stock on the books of the Company after any such record date fixed as aforesaid. If the Board of Directors fails to fix such a record date, the record date shall be at the close of business on the day on which the Board of Directors adopts the resolution relating thereto.

**Section 7. *Registered Shareholders.*** The Company shall be entitled to recognize the exclusive right of the persons registered on its books as the owners of shares to receive dividends and to vote as such owners and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by the laws of Delaware.

**Section 8. *Stock Options and Agreements.*** In addition to any stock options, plans, or agreements into which the Company may enter, any shareholder of this Company may enter into an agreement giving to any other shareholder or shareholders or any third party an option to purchase any of his stock in the Company,, and such shares of stock shall thereupon be subject to such agreement and transferable only upon proof of compliance therewith; provided, however, that reference to such agreement shall be noted conspicuously upon the certificates representing said shares of stock.

**Article vi**

***Dividends***

**Section 1. *Method of Payment.*** Dividends upon the capital stock of the Company may be declared by' the Board of Directors at any regular or special meeting pursuant to law. Dividends may be paid in cash, in property, or in shares of the capital stock, subject to the provisions of the Certificate of Incorporation.

**Section 2. *Closing of Books; Record Date.*** The Board of Directors may fix a date not exceeding sixty (60) days preceding the date fixed for the payment of any dividend as the record date for the determination of the shareholders entitled to receive payment of the dividend and, in such case, only shareholders of record on the date so fixed shall be entitled to receive payment of such dividend notwithstanding any transfer of shares on the books of the Company after the record date. The Board of Directors may close the books of the Company against the transfer of shares during the whole or any part of such period. If the Board of Directors fails to fix such a record date, the record date shall be at the close of business on the day on which the Board of Directors adopts the resolution declaring such dividend.

**Section 3. *Reserves.*** Before payment of any dividend, there may be set aside out of the funds of the Company available for dividends such sum or sums as the Board of Directors from time to time, in its absolute discretion, deems proper as a reserve or reserves for meeting contingencies, or for equalizing dividends, or for repairing or maintaining any property of the Company, or for such other purpose as the Board shall think conducive to the interest of the Company, and the Board may modify or abolish any such reserve in the manner in which it was created.

**ARTICLE VII**

***CHECKS***

 ****

***Checks.*** All checks or demands for money or notes of the Company shall be signed by such officer or officers or such other person or persons as the Board of Directors may from time to time designate.

**Article VIII**

**CORPORATE SEAL**

 ****

***Corporate Seal.*** The Company shall have no corporate seal.

**Article IX**

***Fiscal Year***

 ****

***Fiscal Year.*** The fiscal year of the Company shall be fixed by resolution of the Board of Directors.

**Article X**

***Amendments***

 ****

***Amendments.*** These Bylaws may be amended or repealed at any regular meeting of the shareholders or any special meeting of the shareholders if notice of such amendment or repeal shall be contained in the notice of such special meeting. These Bylaws may be amended or repealed by action of the Board of Directors at any regular or special meeting; provided that any such action shall be subject to the power of the shareholders of the Company to amend or repeal such Bylaws.

**Article xi**

**Books and Records**

**Section 1. *List of Shareholders Entitled to Vote.*** The Secretary of the Company shall prepare and make, at least ten (10) days prior to every meeting of the shareholders, a complete list of the shareholders entitled to vote at such meeting, arranged in alphabetical order and showing the address of each shareholder and the number of shares registered to him. The list shall be open to the examination of any shareholder, for any purpose germane to the meeting and during ordinary business hours, for a period of at least ten (10) days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any shareholder who is present.

**Section 2. *Computerized Records.*** Any records maintained by the Company in the regular course of its business, including its stock ledger, books of account, and minute books, may be kept on, or be in the form of, punch cards, magnetic tape, photographs, microphotographs, or any other information storage device, provided that the records so kept can be converted into clearly legible written form within a reasonable time. The Company shall so convert any records so kept upon the request of any person entitled to inspect the same.

**Section 3. *Examination and Copying of Books and Records.*** Any shareholder of the Company, in person or by attorney or other agent, shall, upon written demand under oath stating the purpose thereof, have the right during the Company's usual business hours to inspect for any proper purpose the Company's share register, a list of its shareholders, and its other books and records, and to make copies or extracts therefrom. A proper purpose shall mean a purpose reasonably related to such person's interest as a shareholder. In every' instance where an attorney or other agent shall be the person who seeks the right of inspection, the demand under oath shall be accompanied by a power of attorney or such other writing which authorizes the attorney or other agent to so act on behalf of the shareholder. The demand under oath shall be directed to the Company's Chief Executive Officer or Secretary at the Company's registered office or 'its principal place of business. Any Director shall have the right to examine the Company's share register, a list of its shareholders, and its other books and records for a purpose reasonably related to his position as a Director.

**Article XII**

**LOANS AND ADVANCES**

**Section 1. *Loans, Guarantees, and Suretyship.*** The Company may lend money to, or guarantee any obligation of, or otherwise assist any officer or other employee of the Company or of any subsidiary, including any officer or employee who is a Director of the Company or of any subsidiary, whenever, in the judgment of the Board of Directors, such loan, guaranty, or other assistance may reasonably be expected to benefit the Company. The loan, guaranty, or other assistance may be with or without interest, and may be unsecured, or secured in such a manner as the Board of Directors shall approve, including, without limitation, a pledge of shares of stock of the Company.

**Section 2. *Advances to Officers, Directors, and Employees.*** The Company may, without a vote of the Directors, advance money to its Directors, officers, or employees to cover expenses that can reasonably be anticipated to be incurred by them in the performance of their duties and for which they would be entitled to reimbursement in the absence of an advance.

**Article XIII**

**INDEMNIFICATION**

 ****

***Indemnification.*** The Company shall indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action, suit, or proceeding, wherever brought, whether civil, criminal, administrative, or investigative (including an action by or in the right of the Company), by reason of such person's being or having been a Director, officer, member of a committee, employee, or agent of the Company, or by reason of such person's serving or having served at the request of the Company as a Director, officer, member of a committee, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses (including attorneys' fees), judgments, fines, and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit, or proceeding to the fullest extent allowable pursuant to and in accordance with the provisions of the Delaware General Corporation Law, as amended from time to time; provided, however, that in the event said Law shall be amended to increase or expand the permitted indemnification of persons provided for therein, the Company shall be deemed to have adopted such amendment as of its effective date and, provided further, that such indemnification shall be limited by other applicable law.

**Article XIV**

**Definitions and Usage**

 ****

***Singular, Plural; Masculine, Feminine, and Neuter.*** Whenever the context of these Bylaws requires, the plural shall be read to include the singular, and vice versa; and words of the masculine gender shall refer to the feminine gender, and vice versa; and words of the neuter gender shall refer to any gender,

---

| |
|:---|
| */s/ Anthony Raynor* |
| Anthony Raynor, President and CEO |

---

## Exhibit 10.9

**Exhibit 10.9**

**Executive Employment Agreement**

Dated as of January 30, 2023

This Executive Employment Agreement (the "Agreement") dated as of the date first set forth above (the "Effective Date") is entered into by and between The Sustainable Green Team, Ltd., a Delaware corporation (the "Company") and Josh Wethington (the "Executive"). The Company and Executive may collective be referred to as the "Parties" and each individually as a "Party".

WHEREAS, the Company now desires to employ the Executive as the Chief Financial Officer of the Company and the Executive desires to serve in such capacities on behalf of the Company, in each case subject to the terms and conditions herein;

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Executive hereby agree as follows:

---

| | |
|:---|:---|
| Section 1. | <u>Employment</u>. |
| (a) | <u>Term</u>. The term of this Agreement (the "Initial Term") shall begin as of the Effective Date and shall end on the earlier of (i) the fifth (5<sup>th</sup>) annual anniversary of the Effective Date and (ii) the time of the termination of the Executive's employment in accordance with Section 3. The Initial Term and any Renewal Term (as defined below) shall automatically be extended for one or more additional terms of three (3) years each (each a "Renewal Term" and together with the Initial Term, the "Term"), unless either the Company or Executive provides notice to the other Party of their desire to not so renew the Initial Term or Renewal Term (as applicable) at least ninety (90) days prior to the expiration of the then-current Initial Term or Renewal Term, as applicable. Executive's employment with the Company shall be "at will," meaning that either Executive or the Company may terminate Executive's employment at any time and for any reason, subject to Section 3. Any contrary representations that may have been made to Executive are superseded by this Agreement. |
| (b) | <u>Duties</u>. The Company hereby appoints Executive, and Executive shall serve, as the Chief Financial Officer of the Company and shall report to the Chief Executive Officer and the Board of Directors of the Company (the "Board") and to such other persons as designated by the Chief Executive Officer or the Board. The Executive shall have such duties and responsibilities as are consistent with Executive's position with the Company. In addition, the Executive shall perform all other duties and accept all other responsibilities incident to such position as may reasonably assigned to Executive by the Board. |

---

Section 2. <u>Compensation and Other Benefits</u>. As compensation for the services to be rendered hereunder, during the Term the Company shall pay to the Executive the salary and bonuses, and shall provide the benefits, as set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Base Salary</u>. The Company shall pay to the Executive an annual base salary for the initial
 one year of the Term of $250,000, payable on a monthly basis commencing on the Effective
 Date (as the same may be adjusted herein, the "Base Salary"). The Base Salary
 each successive year of the Term shall automatically increase by an amount equal to 3% of
 the Base Salary for the prior year of the Term. The Base Salary shall not be subject to reduction
 without the prior written consent of the Company and the Executive and an amendment to this
 Agreement evidencing such adjustment. The Base Salary shall be paid in accordance with the
 Company's payroll policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Equity Issuances</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 the Effective Date, the Company shall award to the Executive a number of shares of shares
 of common stock, par value $0.0001 per share, of the Company (the "Common Stock")
 equal to $50,000 divided by the VWAP (as defined below) as of the Effective Date, which shares
 of Common Stock shall be fully vested at issuance (the "Stock Award").

(ii) For
 purposes herein, "VWAP" means the first of the following which shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If
 the Common Stock is then listed for trading on the OTC Markets or a United States or Canadian
 national securities exchange (as applicable, the "Trading Market"), then the
 volume-weighted average (rounded to the nearest $0.0001) closing price of the Common Stock
 on such Trading Market during the 20 Trading Day (as defined below) period immediately prior
 to the applicable measurement date, as reported by such Trading Market or other reputable
 source;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 the Common Stock is not then listed or quoted for trading on a Trading Market, and if prices
 for the Common Stock are then reported in the "Pink Sheets" published by OTC
 Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting
 prices), the most recent bid price per share of the Common Stock so reported; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if
 the VWAP cannot be calculated for such security on such date on bases as set forth in Section
 2(b)(ii) or Section 2(b)(ii)(1), the VWAP shall be the fair market value of such security
 as mutually determined in good faith by the Board, without the involvement of the Director,
 after taking into consideration such factors as the Board may deem appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All
 such determinations of the VWAP as set forth in Section 2(b)(ii)(1) or Section 2(b)(ii)(2)
 shall be appropriately adjusted for any stock dividend, stock split, stock combination, recapitalization
 or other similar transaction during such period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For
 purposes herein, "Trading Day" means any day on which the Common Stock is traded
 on the Trading Market or is otherwise reported on "pink sheets" by OTC Markets
 Group Inc. (formerly Pink Sheets LLC) or a similar organization or agency succeeding to its
 functions of reporting prices.

(v) In
 the event that, during the Term, the annual gross revenue of the Company for any fiscal year
 of the Company increases by an amount of $50,000,000 or more as compared to the revenue of
 the Company for the prior fiscal year, then at the conclusion of such fiscal year, provided
 that this Agreement and the Term remain in effect at such time, the Company shall issue to
 Executive a number of shares of Common Stock equal to (i) 10% of Base Salary as in effect
 at such time, divided by (ii) the VWAP as of the last day of such fiscal year (each, a "Revenue
 Stock Award"). A Revenue Stock Award shall be made with respect to each $50,000,000
 in increase of revenue for a particular fiscal year as compared to the prior fiscal year.
 By way of illustration and not limitation, (1) in the event that the Company's revenue
 for the 2023 fiscal year is $35,000,000, and the Company's revenue for the 2024 fiscal
 year is $85,000,000, and assuming the Base Salary is $250,000 at the end of the 2024 fiscal
 year, then the Executive would be issued a Revenue Stock Award equal to $25,000 divided by
 the VWAP as of the last day of the 2024 fiscal year; and (2) in the event that the Company's
 revenue for the 2023 fiscal year is $35,000,000, and the Company's revenue for the
 2024 fiscal year is $150,000,000, and assuming the Base Salary is $250,000 at the end of
 the 2024 fiscal year, then the Executive would be issued a Revenue Stock Award equal to $50,000
 divided by the VWAP as of the last day of the 2024 fiscal year, in each case assuming that
 this Agreement and the Term remained in effect as of the last day of the 2024 fiscal year.
 The revenue of the Company for any fiscal year shall be as determined in good faith by the
 Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Option Issuances</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 the Effective Date, the Company shall issue to Executive options to acquire 100,000 shares
 of Common Stock at an exercise price of $2.00 pursuant to the Option Agreement in the form
 as attached hereto as Exhibit A (the "Initial Option Agreement"), which options
 (the "Initial Options") shall initially vest as of ¼ of the Initial Options
 on each of the first four annual anniversaries of the Effective Date, such that the Initial
 Options are fully vested four years following the Effective Date, and subject to the additional
 vesting and forfeiture provisions as set forth herein and in the Initial Option Agreement.
 The number of shares of Common Stock subject to the Initial Options and the exercise price
 of the Initial Options shall be subject to adjustment as set forth in the Initial Option
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On
 the renewal of the Initial Term or any Renewal Term for an additional Renewal Term, the Company
 shall issue to Executive options to acquire 75,000 shares of Common Stock at an exercise
 price of 75% of the VWAP as of the date of such issuance, at an exercise price to be determined
 by the Board, pursuant to an Option Agreement in the form as attached hereto as Exhibit A
 (each, an "Additional Option Agreement" and, together with the Initial Option
 Agreement, the "Option Agreements"), which options (the "Additional Options",
 and, together with the Initial Options, the "Options") shall vest as to 1/3 of
 the applicable Additional Options each year following the date of issuance, such that the
 Additional Options are fully vested three years following their applicable issuance, and
 subject to the additional vesting and forfeiture provisions as set forth herein and in the
 applicable Additional Option Agreement. The number of shares of Common Stock subject to each
 of the Additional Options and the exercise price of each of Additional Options shall be subject
 to adjustment as set forth in the applicable Additional Option Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Bonuses</u>.
 On January 15 of each year of the Term (or the next business day thereafter if such date
 is not a business day), the Company shall pay to Executive a bonus of 40% of the then-applicable
 Base Salary. The Executive shall be eligible to receive any additional discretionary bonuses
 as determined by the Board.

(e) <u>Fringe Benefits.</u> During the Term, the Executive shall be entitled to fringe benefits consistent
 with the practices of the Company, and to the extent the Company provides similar benefits
 to the Company's executive officers, provided that in any event the Company shall pay
 the costs of health insurance for the Executive and the Executive's children.

(f) <u>Business Expenses</u>. The Executive shall be entitled to reimbursement for all reasonable and necessary
 out-of-pocket business, entertainment and travel expenses incurred by the Executive in connection
 with the performance of Executive's duties hereunder and in accordance with the Company's
 expense reimbursement policies and procedures.

(g) <u>Officer Expenses</u>. During the Term, the Company shall reimburse the Executive for the cost of
 Executive's offices located at 1177 Post Road E, Westport CT, up to a maximum of $24,000
 for each year of the Term.

(h) <u>CFOSystems</u>.
 Within 30 days of the Effective Date, the Company will pay the costs payable to CFOSystems
 LLC ("CFOSystems") pursuant to the Executive's agreement with CFOSystems
 and the "Conflicts of Interest: Non-Hire Provision" therein, as may be agreed
 by Executive and CFOSystems, with the reasonable involvement of the Company, up to a maximum
 of $62,500.

Section 3. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Definition of Cause</u>. For purposes hereof, "Cause" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 violation of any material written rule or policy of the Company for which violation any employee
 may be terminated pursuant to the written policies of the Company reasonably applicable to
 an executive employee;

(ii) Willful
 engaging by the Executive in illegal conduct or gross misconduct that is materially and demonstrably
 injurious to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Executive's conviction (by a court of competent jurisdiction, not subject to further
 appeal) of, or pleading guilty to, a felony;

(iv) the
 Executive's gross negligence in the performance of Executive's duties and responsibilities
 to the Company as described in this Agreement; or

(v) the
 Executive's material failure to perform Executive's duties and responsibilities
 to the Company as described in this Agreement (other than any such failure resulting from
 the Executive's incapacity due to physical or mental illness or any such failure subsequent
 to the Executive being delivered a notice of termination without Cause by the Company or
 delivering a notice of termination for Good Reason to the Company), in either case after
 written notice from the Board to the Executive of the specific nature of such material failure
 and the Executive's failure to cure such material failure within 90 days following
 receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Definition of Good Reason</u>. For purposes hereof, "Good Reason" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at
 any time following a Change of Control (as defined below), a material diminution by the Company
 of compensation and benefits (taken as a whole) provided to the Executive immediately prior
 to a Change of Control;

(ii) a
 reduction in Base Salary or target or maximum bonus, other than as part of an across-the-board
 reduction in salaries of management personnel;

(iii) the
 relocation of the Executive's principal executive office to a location more than 50
 miles further from the Executive's principal executive office immediately prior to
 such relocation; or

(iv) a
 material breach by the Company of any of the terms and conditions of this Agreement which
 the Company fails to correct within 90 days after the Company receives written notice from
 Executive of such violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Definition of Change of Control</u>. A "Change of Control" shall be deemed to have occurred
 if, after the Effective Date, (i) the beneficial ownership (as defined in Rule 13d-3 under
 the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of securities
 representing more than 50% of the combined voting power of the Company is acquired by any
 "person" as defined in sections 13(d) and 14(d) of the Exchange Act (other than
 the Company, any subsidiary of the Company, or any trustee or other fiduciary holding securities
 under an employee benefit plan of the Company), (ii) the merger or consolidation of the Company
 with or into another corporation where the shareholders of the Company, immediately prior
 to the consolidation or merger, would not, immediately after the consolidation or merger,
 beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly
 or indirectly, shares representing in the aggregate 50% or more of the combined voting power
 of the securities of the corporation issuing cash or securities in the consolidation or merger
 (or of its ultimate parent corporation, if any) in substantially the same proportion as their
 ownership of the Company immediately prior to such merger or consolidation, or (iii) the
 sale or other disposition of all or substantially all of the Company's assets to an
 entity, other than a sale or disposition by the Company of all or substantially all of the
 Company's assets to an entity, at least 50% of the combined voting power of the voting
 securities of which are owned directly or indirectly by shareholders of the Company, immediately
 prior to the sale or disposition, in substantially the same proportion as their ownership
 of the Company immediately prior to such sale or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Termination by the Company</u>. The Company may terminate the Term and Executive's employment hereunder
 at any time, with or without Cause, subject to the terms and conditions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>For Cause</u>. In the event that the Company terminates the Term or Executive's employment
 hereunder with Cause, then in such event, subject to Section 3(i), (i) the Company shall
 pay to Executive any unpaid Base Salary and benefits then owed or accrued, and any unreimbursed
 expenses, pursuant to the terms of Section 2(f), incurred by the Executive in each case through
 the termination date, and each of which shall be paid within 10 days following the termination
 date; (ii) any unvested portion of any equity granted to Executive hereunder or under the
 Award Agreement or any other agreements with the Company (collectively, the "Equity
 Grants") shall immediately be forfeited as of the termination date without any further
 action of the Parties; and (iii) all of the Parties' rights and obligations hereunder
 shall thereafter cease, other than such rights or obligations which arose prior to the termination
 date or in connection with such termination, and subject to Section 15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Without Cause</u>. In the event that the Company terminates the Term or Executive's employment
 hereunder without Cause, then in such event, subject to Section 3(i), (i) the Company shall
 pay to Executive any Base Salary, bonuses, and benefits then owed or accrued, and any unreimbursed
 expenses incurred by the Executive in each case through the termination date, and each of
 which shall be paid within 10 days following the termination date; (ii) the Company shall
 pay to Executive, in one lump sum, an amount equal to 200% of the Base Salary then in effect;
 (iii) any Equity Grant already made to Executive shall, to the extent not already vested,
 be deemed automatically vested; and (iv) all of the Parties' rights and obligations
 hereunder shall thereafter cease, other than such rights or obligations which arose prior
 to the termination date or in connection with such termination, and subject to Section 15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Termination by the Executive</u>. The Executive may terminate the Term and resign from Executive's
 employment hereunder at any time, with or without Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>With Good Reason</u>. In the event that Executive terminates the Term or resigns from Executive's
 employment hereunder with Good Reason, the Company shall pay to Executive the amounts, and
 Executive shall, subject to Section 3(i), be entitled to such benefits (including without
 limitation any vesting of unvested shares under any Equity Grant), that would have been payable
 to Executive or which Executive would have received had the Term and Executive's employment
 been terminated by the Company without Cause pursuant to Section 3(d)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Without Good Reason</u>. In the event that Executive terminates the Term or resigns from Executive's
 employment hereunder without Good Reason, the Company shall pay to Executive the amounts,
 and Executive shall be entitled, subject to Section 3(i), to such benefits (including without
 limitation any vesting of unvested shares under any Equity Grant), that would have been payable
 to Executive or which Executive would have received had the Term and Executive's employment
 been terminated by the Company with Cause pursuant to Section 3(d)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination by Death or Disability</u>. In the event of the Executive's death or total disability
 (as defined in Section 22(e)(3) of the Internal Revenue Code of 1986, as amended) during
 the Term, the Term and Executive's employment shall terminate on the date of death
 or total disability. In the event of such termination, the Company's sole obligations
 hereunder to the Executive (or the Executive's estate) shall be for unpaid Base Salary,
 accrued but unpaid bonus and benefits (then owed or accrued and owed in the future), a pro-rata
 bonus for the year of termination based on the Executive's target bonus for such year
 and the portion of such year in which the Executive was employed, and reimbursement of expenses
 pursuant to the terms hereon through the effective date of termination, each of which shall
 be paid within 10 days following the date of the Executive's termination, and any unvested
 portion of any Equity Grants shall immediately be forfeited as of the termination date without
 any further action of the Parties.

(g) <u>Non-Renewal</u>.
 In the event that the Term is not renewed by either Party pursuant to the provisions of Section
 1(a), any unvested portion of any Equity Grants shall immediately be forfeited as of the
 expiration of the Term without any further action of the Parties.

(h) <u>Change of Control.</u> In the event that a Change of Control occurs during the Term, any unvested
 portion of any Equity Grants shall, to the extent not already vested, be deemed automatically
 vested immediately without any further action of the Parties.

(i) <u>Conflict</u>.
 In the event of a conflict between the terms and conditions herein and those in any other
 agreement or contract between the Company and the Executive with respect to any Equity Grants
 granted to Executive, the terms and conditions of such other agreement or contract shall
 control.

---

| | |
|:---|:---|
| Section 4. | <u>Payments</u>. |
| (a) | Anything in this Agreement to the contrary notwithstanding, if it is determined that any payment or benefit provided to the Executive under this Agreement or otherwise, whether or not in connection with a Change of Control (a "Payment"), would constitute an "excess parachute payment" within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), such that the Payment would be subject to an excise tax under section 4999 of the Code (the "Excise Tax"), the Company shall pay to the Executive an additional amount (the "Gross-Up Payment") such that the net amount of the Gross-Up Payment retained by the Executive after the payment of any Excise Tax and any federal, state and local income and employment tax on the Gross-Up Payment, shall be equal to the Excise Tax due on the Payment and any interest and penalties in respect of such Excise Tax. For purposes of determining the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income tax and employment taxes at the highest marginal rate of federal income and employment taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate of taxation in the state and locality of Executive's residence (or, if greater, the state and locality in which Executive is required to file a nonresident income tax return with respect to the Payment) in the calendar year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income taxes that may be obtained from the deduction of such state and local taxes. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 determinations made pursuant to Section 4(a) shall be made by the Company which shall provide
 its determination and any supporting calculations (the "Determination") to the
 Executive within thirty days of the date of the Executive's termination. Within ten
 calendar days of the delivery of the Determination to the Executive, the Executive shall
 have the right to dispute the Determination (the "Dispute"). The existence of
 any Dispute shall not in any way affect the Executive's right to receive the Gross-Up
 Payments in accordance with the Determination. If there is no dispute, the Determination
 by the Company shall be final, binding and conclusive upon the Executive, subject to the
 application of Section 4(c). Within ten days after the Company's determination, the
 Company shall pay to the Executive the Gross-Up Payment, if any. If the Company determines
 that no Excise Tax is payable by the Executive, it will, at the same time as it makes such
 Determination, furnish Executive with an opinion that the Executive has substantial authority
 not to report any Excise Tax on Executive's federal, state, local income or other tax
 return. The Company agrees to indemnify and hold harmless the Executive of and from any and
 all claims, damages and expenses resulting from or relating to its determinations pursuant
 to this Section 4(b), except for claims, damages or expenses resulting from the gross negligence
 or willful misconduct of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As
 a result of the uncertainty in the application of sections 4999 and 280G of the Code, it
 is possible that the Gross-Up Payments either will have been made which should not have been
 made, or will not have been made which should have been made, by the Company (an "Excess
 Gross-Up Payment" or a "Gross-Up Underpayment," respectively). If it is
 established pursuant to (A) a final determination of a court for which all appeals have been
 taken and finally resolved or the time for all appeals has expired, or (B) an Internal Revenue
 Service (the "IRS") proceeding which has been finally and conclusively resolved,
 that an Excess Gross-Up Payment has been made, such Excess Gross-Up Payment shall be deemed
 for all purposes to be a loan to the Executive made on the date the Executive received the
 Excess Gross-Up Payment and the Executive shall repay the Excess Gross-Up Payment to the
 Company either (i) on demand, if the Executive is in possession of the Excess Gross-Up Payment
 or (ii) upon the refund of such Excess Gross-Up Payment to the Executive from the IRS, if
 the IRS is in possession of such Excess Gross-Up Payment, together with interest on the Excess
 Gross-Up Payment at (X) 120% of the applicable federal rate (as defined in Section 1274(d)
 of the Code) compounded semi-annually for any period during which the Executive held such
 Excess Gross-Up Payment and (Y) the interest rate paid to the Executive by the IRS in respect
 of any period during which the IRS held such Excess Gross-Up Payment. If a Gross-Up Underpayment
 occurs as determined under one or more of the following circumstances: (I) such determination
 is made by the Company (which shall include the position taken by the Company, together with
 its consolidated group, on its federal income tax return) or is made by the IRS, (II) such
 determination is made by a court, or (III) such determination is made upon the resolution
 to the Executive's satisfaction of the Dispute, then the Company shall pay an amount
 equal to the Gross-Up Underpayment to the Executive within ten calendar days of such determination
 or resolution, together with interest on such amount at 120% of the applicable federal rate
 compounded semi-annually from the date such amount should have been paid to the Executive
 pursuant to the terms of this Agreement or otherwise, but for the operation of this Section
 4(c), until the date of payment.

Section 5. <u>Post-Termination Assistance</u>. Upon the Executive's termination of employment with the Company, the Executive agrees to fully cooperate in all matters relating to the winding up or pending work on behalf of the Company and the orderly transfer of work to other employees of the Company following any termination of the Executives' employment. The Executive further agrees that Executive will provide, upon reasonable notice, such information and assistance to the Company as may reasonably be requested by the Company in connection with any audit, governmental investigation, litigation, or other dispute in which the Company is or may become a party and as to which the Executive has knowledge; provided, however, that (i) the Company agrees to reimburse the Executive for any related out-of-pocket expenses, including travel expenses and a reasonable hourly rate for such time expended, and (ii) any such assistance may not unreasonably interfere with Executive's then current employment.

Section 6. <u>No Mitigation or Set Off</u>. In no event shall the Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to the Executive under any of the provisions of this Agreement and such amounts shall not be reduced, regardless of whether the Executive obtains other employment. The Company's obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company may have against the Executive or others; provided, however, the Company shall have the right to offset the amount of any funds loaned or advanced to the Executive and not repaid against any severance obligations the Company may have to the Executive hereunder.

---

| | |
|:---|:---|
| Section 7. | <u>Confidentiality</u> |
| (a) | <u>Definition.</u> For purposes of this Agreement, "Confidential Information" shall mean all Company Work Product (as hereinafter defined) and all non-public written, electronic, and oral information or materials of Company communicated to or otherwise obtained by Executive in connection with this Agreement, which is related to the products, business and activities of Company, its Affiliates (as defined below), and subsidiaries, and their respective customers, clients, suppliers, and other entities with which such party does business, including: (i) all costing, pricing, technology, software, documentation, research, techniques, procedures, processes, discoveries, inventions, methodologies, data, tools, templates, know how, intellectual property and all other proprietary information of Company; (ii) the terms of this Agreement; and (iii) any other information identified as confidential in writing by Company. Confidential Information shall not include information that: (a) was lawfully known by Executive without an obligation of confidentiality before its receipt from Company; (b) is independently developed by Executive without reliance on or use of Confidential Information; (c) is or becomes publicly available without a breach by Executive of this Agreement; or (d) is disclosed to Executive by a third party which is not required to maintain its confidentiality. An "Affiliate" of a Party shall mean any entity directly or indirectly controlling, controlled by, or under common control with, such Party at any time during the Term for so long as such control exists. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Company Ownership.</u> Company shall retain all right, title, and interest to the Confidential Information,
 including all copies thereof and all rights to patents, copyrights, trademarks, trade secrets
 and other intellectual property rights inherent therein and appurtenant thereto. Subject
 to the terms and conditions of this Agreement, Company hereby grants Executive a non-exclusive,
 non-transferable, license during the Term to use any Confidential Information solely to the
 extent that such Confidential Information is necessary for the performance of Executive's
 duties hereunder. Executive shall not, by virtue of this Agreement or otherwise, acquire
 any proprietary rights whatsoever in Confidential Information, which shall be the sole and
 exclusive property and confidential information of Company. No identifying marks, copyright
 or proprietary right notices may be deleted from any copy of Confidential Information. Nothing
 contained herein shall be construed to limit the rights of Company from performing similar
 services for, or delivering the same or similar deliverable to, third parties using the Confidential
 Information and/or using the same personnel to provide any such services or deliverables.

(c) <u>Confidentiality Obligations.</u> Executive agrees to hold the Confidential Information in confidence and
 not to copy, reproduce, sell, assign, license, market, transfer, give or otherwise disclose
 such Confidential Information to any person or entity or to use the Confidential Information
 for any purposes whatsoever, without the express written permission of Company, other than
 disclosure to Executive's, partners, principals, directors, officers, employees, subcontractors
 and agents on a "need-to-know" basis as reasonably required for the performance
 of Executive's obligations hereunder or as otherwise agreed to herein. Executive shall
 be responsible to Company for any violation of this Section 7 by Executive's employees,
 subcontractors, and agents. Executive shall maintain the Confidential Information with the
 same degree of care, but no less than a reasonable degree of care, as Executive employs concerning
 its own information of like kind and character.

(d) <u>Required Disclosure.</u> If Executive is requested to disclose any of the Confidential Information
 as part of an administrative or judicial proceeding, Executive shall, to the extent permitted
 by applicable law, promptly notify Company of that request and cooperate with Company, at
 Company's expense, in seeking a protective order or similar confidential treatment
 for the Confidential Information. If no protective order or other confidential treatment
 is obtained, Executive shall disclose only that portion of Confidential Information which
 is legally required and will exercise all reasonable efforts to obtain reliable assurances
 that confidential treatment will be accorded the Confidential Information which is required
 to be disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Enforcement.</u> Executive acknowledges that the Confidential Information is unique and valuable, and
 that remedies at law will be inadequate to protect Company from any actual or threatened
 breach of this Section 7 by Executive and that any such breach would cause irreparable and
 continuing injury to Company. Therefore, Executive agrees that Company shall be entitled
 to seek equitable relief with respect to the enforcement of this Section 7 without any requirement
 to post a bond, including, without limitation, injunction and specific performance, without
 proof of actual damages or exhausting other remedies, in addition to all other remedies available
 to Company at law or in equity. For greater clarity, in the event of a breach or threatened
 breach by Executive of any of the provisions of this Section 7, in addition to and not in
 limitation of any other rights, remedies or damages available at law or in equity, Company
 shall be entitled to a permanent injunction or other like remedy in order to prevent or restrain
 any such breach or threatened breach by Executive, and Executive agrees that an interim injunction
 may be granted against Executive immediately on the commencement of any action, claim, suit
 or proceeding by Company to enforce the provisions of this Section 7, and Executive further
 irrevocably consents to the granting of any such interim or permanent injunction or any like
 remedy. If any action at law or in equity is necessary to enforce the terms of this Section
 7, Executive, if it is determined to be at fault, shall pay Company's reasonable legal
 fees and expenses on a substantial indemnity basis.

(f) <u>Related Duties.</u> Executive shall: (i) promptly deliver to Company upon Company's request
 all materials in Executive's possession which contain Confidential Information; (ii)
 use its best efforts to prevent any unauthorized use or disclosure of the Confidential Information;
 (iii) notify Company in writing immediately upon discovery of any such unauthorized use or
 disclosure; and (iv) cooperate in every reasonable way to regain possession of any Confidential
 Information and to prevent further unauthorized use and disclosure thereof.

(g) <u>Legal Exceptions.</u> Further notwithstanding the foregoing provisions of this Section 7, Executive
 may disclose confidential information as may be expressly required by law, governmental rule,
 regulation, executive order, court order, or in connection with a dispute between the Parties;
 provided that prior to making any such disclosure, subject to applicable law, Executive shall
 use its best efforts to: (i) provide Company with at least fifteen (15) days' prior
 written notice setting forth with specificity the reason(s) for such disclosure, supporting
 documentation therefor, and the circumstances giving rise thereto; and (ii) limit the scope
 and duration of such disclosure to the strictest possible extent.

(h) <u>Limitation.</u> Except as specifically set forth herein, no licenses or rights under any patent, copyright,
 trademark, or trade secret are granted by Company to Executive hereunder, or are to be implied
 by this Agreement. Except for the restrictions on use and disclosure of Confidential Information
 imposed in this Agreement, no obligation of any kind is assumed or implied against either
 Party or their Affiliates by virtue of meetings or conversations between the Parties hereto
 with respect to the subject matter stated above or with respect to the exchange of Confidential
 Information. Each Party further acknowledges that this Agreement and any meetings and communications
 of the Parties and their affiliates relating to the same subject matter shall not: (i) constitute
 an offer, request, invitation or contract with the other Party to engage in any research,
 development or other work; (ii) constitute an offer, request, invitation or contract involving
 a buyer-seller relationship, joint venture, teaming or partnership relationship between the
 Parties and their affiliates; or (iii) constitute a representation, warranty, assurance,
 guarantee or inducement with respect to the accuracy or completeness of any Confidential
 Information or the non-infringement of the rights of third persons.

---

| | |
|:---|:---|
| Section 8. | <u>Intellectual Property Rights</u>. |
| (a) | <u>Disclosure of Work Product.</u> As used in this Agreement, the term "Work Product" means any invention, whether or not patentable, know-how, designs, mask works, trademarks, formulae, processes, manufacturing techniques, trade secrets, ideas, artwork, software or any copyrightable or patentable works. Executive agrees to disclose promptly in writing to Company, or any person designated by Company, all Work Product that is solely or jointly conceived, made, reduced to practice, or learned by Executive in the course of any work performed for Company ("Company Work Product"). Executive agrees (a) to use Executive's best efforts to maintain such Company Work Product in trust and strict confidence; (b) not to use Company Work Product in any manner or for any purpose not expressly set forth in this Agreement; and (c) not to disclose any such Company Work Product to any third party without first obtaining Company's express written consent on a case-by-case basis. |
| (b) | <u>Ownership of Company Work Product.</u> Executive agrees that any and all Company Work Product conceived, written, created or first reduced to practice in the performance of work under this Agreement shall be deemed "work for hire" under applicable law and shall be the sole and exclusive property of Company. |
| (c) | <u>Assignment of Company Work Product.</u> Executive irrevocably assigns to Company all right, title and interest worldwide in and to the Company Work Product and all applicable intellectual property rights related to the Company Work Product, including without limitation, copyrights, trademarks, trade secrets, patents, moral rights, contract and licensing rights (the "Proprietary Rights"). Except as set forth below, Executive retains no rights to use the Company Work Product and agrees not to challenge the validity of Company's ownership in the Company Work Product. Executive hereby grants to Company a perpetual, non-exclusive, fully paid-up, royalty-free, irrevocable and world-wide right, with rights to sublicense through multiple tiers of sublicensees, to reproduce, make derivative works of, publicly perform, and display in any form or medium whether now known or later developed, distribute, make, use and sell any and all Executive owned or controlled Work Product or technology that Executive uses to complete the services and which is necessary for Company to use or exploit the Company Work Product. |
| (d) | <u>Assistance.</u> Executive agrees to cooperate with Company or its designee(s), both during and after the Term, in the procurement and maintenance of Company's rights in Company Work Product and to execute, when requested, any other documents deemed necessary by Company to carry out the purpose of this Agreement. Executive will assist Company in every proper way to obtain, and from time to time enforce, United States and foreign Proprietary Rights relating to Company Work Product in any and all countries. Executive's obligation to assist Company with respect to Proprietary Rights relating to such Company Work Product in any and all countries shall continue beyond the termination of this Agreement, but Company shall compensate Executive at a reasonable rate to be mutually agreed upon after such termination for the time actually spent by Executive at Company's request on such assistance. |

---

---

| | |
|:---|:---|
| (e) | <u>Executive Representations and Warranties.</u> Executive hereby represents and warrants that: (i) Company Work Product will be an original work of Executive or all applicable third parties will have executed assignments of rights reasonably acceptable to Company; (ii) neither the Company Work Product nor any element thereof will infringe the intellectual property rights of any third party; (iii) neither the Company Work Product nor any element thereof will be subject to any restrictions or to any mortgages, liens, pledges, security interests, encumbrances or encroachments; (iv) Executive will not grant, directly or indirectly, any rights or interest whatsoever in the Company Work Product to any third party; (v) Executive has full right and power to enter into and perform Executive's obligations under this Agreement without the consent of any third party; (vi) Executive will use best efforts to prevent injury to any person (including employees of Company) or damage to property (including Company's property) during the Term; and (vii) should Company permit Executive to use any of Company's equipment, tools, or facilities during the Term, such permission shall be gratuitous and Executive shall be responsible for any injury to any person (including death) or damage to property (including Company's property) arising out of use of such equipment, tools or facilities. |
| Section 9. | <u>Non-Compete and Non-Solicitation</u> |
| (a) | <u>Existing Business Interests.</u> The Parties acknowledge that the Company is engaged in the various business as disclosed to the Executive (together with such other activities as may be engaged in from time to time, the "Existing Business"). As part of this Existing Business, Company has developed and continues to develop Confidential Information regarding the operation of such business. In addition, Company has developed and continues to develop substantial relationships with existing and prospective clients, accounts, suppliers and others, as well as goodwill associated with these relationships and business. These relationships are a substantial business asset owned by, and proprietary to, Company and are integral to Company's Existing Business and continued operation. |
| (b) | <u>Developing Business Interests</u>. The Company also is engaged in expanding its business by developing new business concepts and services (the "Developing Business"). As part of this Developing Business, the Company has developed and continues to develop Confidential Information related thereto, valuable relationships with prospective and existing clients, accounts, suppliers and others, and continues to create goodwill associated with these relationships and business. The Developing Business is a substantial business asset owned by, and proprietary to, the Company. |
| (c) | <u>Other Legitimate Business Interests</u>. In addition to the Existing Business and the Developing Business, Company has other legitimate business interests which are necessary to protect through the provisions of this Section 9, which Executive acknowledges include, but are not limited to the following (collectively the "Other Legitimate Business Interests"): |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Company has expended considerable resources in developing relationships with its suppliers,
 clients and customers;

(ii) The
 Company has expended considerable resources to recruit and hire vendors and/or employees
 who could perform services for Company;

(iii) Executive
 may, through the contractual relationship set forth herein, develop a substantial relationship
 with Company's existing or potential clients, including but not limited to being the
 sole or primary contact between Company and its clients and principals; and

(iv) The
 relationship between Company and its clients and principals will depend on the quality and
 quantity of the services Executive performs for Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Acknowledgement of Company's Right to Protection of Business Interests.</u> Executive acknowledges
 and agrees that Company desires, is entitled to, and deserves, protection of
 its legitimate business interests associated with the Existing Business, the Developing Business
 and the Other Legitimate Business Interests. Accordingly, Executive agrees to the restrictions
 set forth in this Section 9 as reasonable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-Compete</u> <u>Restriction .</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject
 to applicable law, Executive agrees that, for the Term and for a period of two (2) years
 thereafter, Executive shall not, directly or indirectly: (i) engage in any other business,
 association or relationship of any kind with any business which provides, in whole or in
 part, the same or similar services and/or products offered by Company as part of its Existing
 Business or Developing Businesses which directly or indirectly competes with Company; nor
 (ii) solicit or accept, or induce any person to reduce goods or services to Company, or in
 any manner assist others in the solicitation, acceptance, or inducement of, any business
 transactions with Company's existing and prospective clients, accounts, suppliers and/or
 other persons or entities with whom Company has had business relationships (or whom Company
 had specifically identified for a prospective business relationship). As used herein, Executive
 shall be considered "directly engaged" in such business if Executive acts as
 a shareholder, officer, owner, consultant, associate, employee or agent of any business offering
 and/or providing any of the restricted services and/or products identified above; and shall
 be considered "indirectly engaged" if any immediate relative of such persons
 (spouse, children, parents or siblings), or other person with whom such persons have a significant
 personal relationship, is engaged in such business.

(ii) Executive
 agrees that the geographic scope of the above restrictions shall extend to the geographic
 area in which Company actively conducted business immediately prior to termination of this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No-Solicitation.</u> In recognition and consideration of Company's Existing Business, Developing Business
 and Other Legitimate Business Interests, subject to applicable law, Executive agrees that,
 for the Term and for a period of three (3) years thereafter, Executive shall not, directly
 or indirectly solicit or discuss with any employee of Company the employment of such Company
 employee by any other commercial enterprise other than Company, nor recruit, attempt to recruit,
 hire or attempt to hire any such Company employee on behalf of any commercial enterprise
 other than Company. Nothing in this Section 9(f) shall prohibit Executive from undertaking
 a general recruitment advertisement provided that the foregoing is not targeted towards any
 person identified above, or from hiring, employing or engaging any such person who responds
 to such general recruitment advertisement.

(g) <u>Remedies for Breach of Restrictions.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive
 admits and agrees that Executive's breach of the provisions of this Section 9 would
 result in irreparable harm to Company. Accordingly, in the event of Executive's breach
 or threatened breach of such restrictions, Executive agrees that Company shall be entitled
 to an injunction restraining such breach or threatened breach without the necessity of posting
 a bond or other security. Further, in the event of Executive's breach, the duration
 of the restrictions contained in this Section 9 shall be extended for the entire time that
 the breach existed so that Company is provided with the full time period provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In
 addition to injunctive relief, Company shall be entitled to any other remedy available in
 law or equity by reason of Executive's breach or threatened breach of the restrictions
 contained in this Section 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) If
 the Company retains an attorney to enforce the provisions of this Section 9, the Company
 shall be entitled to recover its reasonable attorneys' fees and costs so incurred from
 Executive, both prior to filing a lawsuit, during the lawsuit and on appeal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Blue Pencil.</u> Executive
 has carefully read and considered the provisions of this Section
 9 and, having done so, agrees that the restrictions set forth in such Section
 9 are fair and reasonable and are reasonably required for the protection of the legitimate
 business interests of the Company. In the event that a court of competent jurisdiction shall
 determine that any of the foregoing restrictions are unenforceable, the Parties hereto agree
 that it is their desire that such court substitute an enforceable restriction in place of
 any restriction deemed unenforceable, and that the substitute restriction be deemed incorporated
 herein and enforceable against Executive. It is the intent of the Parties hereto that the
 court, in so determining any such enforceable substitute restriction, recognize that it is
 their intent that the foregoing restrictions be imposed and maintained to the greatest extent
 possible.

Section 10. <u>Representations and Warranties Relating to Securities.</u> The Stock Award, the Options, and any shares of Common Stock or other securities of the Company that may be issued or granted to the Executive hereunder or pursuant to any other agreement between the Company and the Executive in connection with the transactions contemplated herein may be referred to as the "Securities", and Executive represents and warrants to the Company as set forth in this Section 10 with respect to the Securities and Executive's receipt thereof, as of the Effective Date and as of the date of any issuance or granting of any Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive
 is an "accredited investor" as that term is defined in Rule 501(a) of Regulation
 D promulgated pursuant to the Securities Act (an "Accredited Investor").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive
 hereby represent that the Securities awarded pursuant to this Agreement are being acquired
 for Executive's own account and not for sale or with a view to distribution thereof.
 Executive acknowledges and agrees that any sale or distribution of Securities which have
 vested may be made only pursuant to either (a) a registration statement on an appropriate
 form under the Securities Act of 1933, as amended (the "Securities Act"), which
 registration statement has become effective and is current with regard to the shares being
 sold, or (b) a specific exemption from the registration requirements of the Securities Act
 that is confirmed in a favorable written opinion of counsel, in form and substance satisfactory
 to counsel for the Company, prior to any such sale or distribution. Executive hereby consents
 to such action as the Board or the Company deems necessary or appropriate from time to time
 to prevent a violation of, or to perfect an exemption from, the registration requirements
 of the Securities Act or to implement the provisions of this Agreement, including but not
 limited to placing restrictive legends on certificates evidencing shares of Securities (whether
 or not the Restrictions applicable thereto have lapsed) and delivering stop transfer instructions
 to the Company's stock transfer agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive
 understands that the Securities is being offered and sold to Executive in reliance upon specific
 exemptions from the registration requirements of United States federal and state securities
 laws and that the Company is relying upon the truth and accuracy of, and Executive's
 compliance with, the representations, warranties, agreements, acknowledgments and understandings
 of the Executive set forth herein in order to determine the availability of such exemptions
 and the eligibility of the Executive to acquire the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Executive
 has been furnished with all documents and materials relating to the business, finances and
 operations of the Company and information that Executive requested and deemed material to
 making an informed investment decision regarding its acquisition of the Securities. Executive
 has been afforded the opportunity to review such documents and materials and the information
 contained therein. Executive has been afforded the opportunity to ask questions of the Company
 and its management. Executive understands that such discussions, as well as any written information
 provided by the Company, were intended to describe the aspects of the Company's business
 and prospects which the Company believes to be material, but were not necessarily a thorough
 or exhaustive description and the Company makes no representation or warranty with respect
 to the completeness of such information and makes no representation or warranty of any kind
 with respect to any information provided by any entity other than the Company. Some of such
 information may include projections as to the future performance of the Company, which projections
 may not be realized, may be based on assumptions which may not be correct and may be subject
 to numerous factors beyond the Company's control. Additionally, Executive understands
 and represents that Executive is acquiring the Securities notwithstanding the fact that the
 Company may disclose in the future certain material information that the Executive has not
 received. Executive has sought such accounting, legal and tax advice as Executive has considered
 necessary to make an informed investment decision with respect to Executive's investment
 in the Securities. Executive has full power and authority to make the representations referred
 to herein, to acquire the Securities and to execute and deliver this Agreement. Executive,
 either personally, or together with Executive's advisors has such knowledge and experience
 in financial and business matters as to be capable of evaluating the merits and risks of
 an investment in the Securities, is able to bear the risks of an investment in the Securities
 and understands the risks of, and other considerations relating to, a purchase of the Securities.
 The Executive and Executive's advisors have had a reasonable opportunity to ask questions
 of and receive answers from the Company concerning the Securities. Executive's financial
 condition is such that Executive is able to bear the risk of holding the Securities that
 Executive may acquire pursuant to this Agreement for an indefinite period of time, and the
 risk of loss of Executive's entire investment in the Company. Executive has investigated
 the acquisition of the Securities to the extent Executive deemed necessary or desirable and
 the Company has provided Executive with any reasonable assistance Executive has requested
 in connection therewith. No representations or warranties have been made to Executive by
 the Company, or any representative of the Company, or any securities broker/dealer, other
 than as set forth in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Executive
 also acknowledges and agrees that an investment in the Securities is highly speculative and
 involves a high degree of risk of loss of the entire investment in the Company and there
 is no assurance that a public market for the Securities will ever develop and that, as a
 result, Executive may not be able to liquidate Executive's investment in the Securities
 should a need arise to do so. Executive is not dependent for liquidity on any of the amounts
 Executive is investing in the Securities. Executive has full power and authority to make
 the representations referred to herein, to acquire the Securities and to execute and deliver
 this Agreement. Executive understands that the representations and warranties herein are
 to be relied upon by the Company as a basis for the exemptions from registration and qualification
 of the issuance and sale of the Securities under the federal and state securities laws and
 for other purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Executive
 understands that no United States federal or state agency or any other government or governmental
 agency has passed upon or made any recommendation or endorsement of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Executive
 understands that until such time as the Securities have been registered under the Securities
 Act or may be sold pursuant to Rule 144, Rule 144A under the Securities Act or Regulation
 S without any restriction as to the number of securities as of a particular date that can
 then be immediately sold, the Securities may bear a restrictive legend in substantially the
 following form (and a stop-transfer order may be placed against transfer of the certificates
 for such Securities):

"NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A OR REGULATION S UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This
 Agreement has been duly and validly authorized by Executive. This Agreement has been duly
 executed and delivered on behalf of Executive, and this Agreement constitutes a valid and
 binding agreement of Executive enforceable in accordance with its terms, subject to the application
 of .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Executive
 is an individual resident of the state set forth in the notices provision for Executive herein.

Section 11. <u>Effect of Waiver</u>. The waiver by either Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach hereof. No waiver shall be valid unless in writing.

Section 12. <u>Assignment</u>. No Party shall have any power or any right to assign or transfer, in whole or in part, this Agreement, or any of its rights or any of its obligations hereunder, including, without limitation, any right to pursue any claim for damages pursuant to this Agreement or the transactions contemplated herein, or to pursue any claim for any breach or default of this Agreement, or any right arising from the purported assignor's due performance of its obligations hereunder, without the prior written consent of the other Party and any such purported assignment in contravention of the provisions herein shall be null and void and of no force or effect. Notwithstanding the foregoing, the Company may transfer, assign or delegate to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company any of Company's rights, obligations or duties hereunder. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

Section 13. <u>No Third-Party Rights</u>. Except as expressly provided in this Agreement, this Agreement is intended solely for the benefit of the Parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person or entity other than the Parties hereto.

Section 14. <u>Entire Agreement; Effectiveness of Agreement</u>. This Agreement, the Option Agreements and any other agreement entered into between the Company and Executive with respect to the issuance of any equity securities of the Company or other equity awards relating to the Company set forth the entire agreement of the Parties hereto and shall supersede any and all prior agreements and understandings concerning the Executive's employment by the Company. This Agreement may be changed only by a written document signed by the Executive and the Company.

Section 15. <u>Survival</u>. The provisions of Section 3, Section 4, Section 5, Section 6, Section 7, Section 8, Section 9 and Section 13 through Section 26, inclusive, shall survive any termination or expiration of this Agreement, and provided that any expiration or termination of this Agreement shall not excuse a Party from compliance with, or fulfillment of, any obligations or conditions which arose prior to such expiration or termination.

Section 16. <u>Severability</u>. If any one or more of the provisions, or portions of any provision, of the Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions or parts hereof shall not in any way be affected or impaired thereby.

---

| | |
|:---|:---|
| Section 17. | <u>Governing Law and Waiver of Jury Trial</u>. |
| (a) | This Agreement, and any and all claims, proceedings or causes of action relating to this Agreement or arising from this Agreement or the transactions contemplated herein, including, without limitation, tort claims, statutory claims and contract claims, shall be interpreted, construed, governed and enforced under and solely in accordance with the substantive and procedural laws of the State of Delaware, in each case as in effect from time to time and as the same may be amended from time to time, and as applied to agreements performed wholly within the State of Delaware. |
| (b) | Subject to Section 18, each Party agrees that all legal proceedings concerning this Agreement shall be commenced in the state and federal courts sitting in NEW LAKE COUNTY, FLORIDA (the "Selected Courts"). Each Party hereto hereby irrevocably submits to the exclusive jurisdiction of the Selected Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of the rights of a Party under this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Selected Courts, or such Selected Courts are improper or inconvenient venue for such proceeding. Each Party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such Party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) TO
 THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL
 RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
 TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES
 THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
 OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
 FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
 TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
 IN THIS Section 17(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject
 to the provisions of Section 18, if any Party shall commence an action or proceeding to enforce
 any provisions of this Agreement, then the prevailing Party in such action or proceeding
 shall be reimbursed by the other Party for its attorney's fees and other costs and
 expenses incurred in the investigation, preparation and prosecution of such action or proceeding
 including appeals and arbitration.

Section 18. <u>Arbitration</u>. Any controversy, claim or dispute arising out of or relating to this Agreement or the Executive's employment by the Company, including, but not limited to, common law and statutory claims for discrimination, wrongful discharge, and unpaid wages, shall be resolved by arbitration in Astatula, Florida pursuant to then-prevailing National Rules for the Resolution of Employment Disputes of the American Arbitration Association. The arbitration shall be conducted by one arbitrator jointly selected by the Parties. In the event that the Parties are unable to agree on the identity of the arbitrator within ten days of the commencement of efforts to do so, each Party shall select one arbitrator and the two arbitrators so selected shall select the sole arbitrator who shall hear and resolve controversy, claim or dispute. The arbitrator shall be bound to follow the applicable Agreement provisions in adjudicating the dispute. It is agreed by both Parties that the arbitrator's decision is final, and that no Party may take any action, judicial or administrative, to overturn such decision. The judgment rendered by the arbitrator may be entered in the Selected Courts. Subject to the provisions of Section 17(d), each Party will pay its own expenses of arbitration and the expenses of the arbitrator will be equally shared provided that, if in the opinion of the arbitrator any claim, defense, or argument raised in the arbitration was unreasonable, the arbitrator may assess all or part of the expenses of the other Party (including reasonable attorneys' fees) and of the arbitrator as the arbitrator deems appropriate. The arbitrator may not award either Party punitive or consequential damages.

Section 19. <u>General Remedies.</u> Each Party acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the other Party, and thus each Party acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by such Party of the provisions of this Agreement, that the other Party shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

Section 20. <u>Indemnification</u>. During the Term, the Executive shall be entitled to indemnification and insurance coverage for officers' liability, fiduciary liability and other liabilities arising out of the Executive's position with the Company in any capacity, in an amount not less than the highest amount available to any other executive, and such coverage and protections, with respect to the various liabilities as to which the Executive has been customarily indemnified prior to termination of employment, shall continue for at least six years following the end of the Term. Any indemnification agreement entered into between the Company and the Executive shall continue in full force and effect in accordance with its terms following the termination of this Agreement.

Section 21. <u>Expenses</u>. Other than as specifically set forth herein, each of the Parties will bear their own respective expenses, including legal, accounting and professional fees, incurred in connection with this Agreement and the transactions contemplated herein.

Section 22. <u>Notices</u>. All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other Party, or by registered or certified mail, return receipt requested, postage prepaid, or by email with return receipt requested and received or nationally recognized overnight courier service, addressed as set forth below or to such other address as either Party shall have furnished to the other in writing in accordance herewith. All notices, requests, demands and other communications shall be deemed to have been duly given (i) when delivered by hand, if personally delivered, (ii) when delivered by courier or overnight mail, if delivered by commercial courier service or overnight mail, and (iii) on receipt of confirmed delivery, if sent by email.

If to the Company:

The Sustainable Green Team, Ltd.

Attention: Anthony Raynor

24-200 County Road

Astatula, Florida 34705

Email: traynor@sgtmltd.com

With a copy, which shall not constitute notice, to:

Anthony L.G., PLLC

Attn: John Cacomanolis

625 N. Flagler Drive, Suite 600

West Palm Beach, FL 33401

Email: JCacomanolis@anthonypllc.com

If to Executive, to:

Josh Wethington

1540 Trilo Ave

Coral Gables, FL 33146

Email: jwething@gmail.com

With a copy, which shall not constitute notice, to:

John J Spittler

1865 Brickell Ave TH-5

Miami, FL 33129

Email: jjs@spittlerlaw.com

Section 23. <u>Headings</u>. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 24. <u>Counsel</u>. The Parties acknowledge and agree that Anthony L.G., PLLC ("Counsel") has acted as legal counsel to the Company, and that Counsel has prepared this Agreement at the request of the Company, and that Counsel is not legal counsel to Executive individually. Each of the Parties acknowledges and agrees that they are aware of, and have consented to, the Counsel acting as legal counsel to the Company and preparing this Agreement, and that Counsel has advised each of the Parties to retain separate counsel to review the terms and conditions of this Agreement and the other documents to be delivered in connection herewith, and each Party has either waived such right freely or has otherwise sought such additional counsel as it has deemed necessary. Each of the Parties acknowledges and agrees that Counsel does not owe any duties to Executive in Executive's individual capacity in connection with this Agreement and the transactions contemplated herein. Each of the Parties hereby waives any conflict of interest which may apply with respect to Counsel's actions as set forth herein, and the Parties confirm that the Parties have previously negotiated the material terms of the agreements as set forth herein.

Section 25. <u>Rule of Construction</u>. The general rule of construction for interpreting a contract, which provides that the provisions of a contract should be construed against the Party preparing the contract, is waived by the Parties hereto. Each Party acknowledges that such Party was represented by separate legal counsel in this matter who participated in the preparation of this Agreement or such Party had the opportunity to retain counsel to participate in the preparation of this Agreement but elected not to do so.

Section 26. <u>Execution in Counterparts, Electronic Transmission</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. The signature of any Party which is transmitted by any reliable electronic means such as, but not limited to, a photocopy, electronically scanned or facsimile machine, for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature or an original document.

*[Signatures appear on following page]*

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

---

| | |
|:---|:---|
| The Sustainable Green Team, Ltd. | The Sustainable Green Team, Ltd. |
| By: | /s/ Tony Raynor |
| Name: | Anthony Raynor |
| Title: | Chief Executive Officer |
| Executive: Josh Wethington | Executive: Josh Wethington |
| By: | /s/ Joshua R. Wethington |
| Name: | Josh Wethington |

---

Exhibit A

**Option Agreement**

Dated as of January 30, 2022

This Option Agreement (this "Agreement") dated as of the date first set forth above (the "Award Date") is entered into by and between The Sustainable Green Team, Ltd., a Delaware corporation and Joshua Wethington ("Holder"). The Company and Holder may collectively be referred to as the "Parties" and each individually as a "Party".

WHEREAS, the Company and Holder are the parties to that certain Executive Employment Agreement dated as of January 30, 2023 (the "Employment Agreement);

WHEREAS, pursuant to the Employment Agreement the Parties have agreed to enter into the Agreement to grant to Holder options to acquire certain shares of common stock, par value $0.0001 per share, of the Company (the "Common Stock");

NOW, THEREFORE, in consideration of the promises and of the mutual covenants and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Holder hereby agree as follows:

Section 1. <u>Defined Terms</u>. Defined terms used herein without definition shall have the meanings given in the Employment Agreement.

Section 2. <u>Grant</u>. Pursuant to the terms of the Employment Agreement and the terms herein, the Company hereby grants to Holder as of the Award Date, the right and option (the "Options") to purchase all or any part of the number of shares of Common Stock as set forth on Schedule A attached to this Agreement, subject to the terms and conditions of this Agreement and the Employment Agreement. The Options are not intended to be Incentive Stock Options as defined by Section 422 of the Internal Revenue Code of 1986, as amended.

Section 3. <u>Vesting and Rights to the Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Options will be subject to vesting and forfeiture pursuant to the provisions herein and in
 the Employment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject
 to the other provisions herein, the Options will vest in accordance with the vesting schedule
 and terms set forth in Schedule A attached hereto and pursuant to the terms of the Employment
 Agreement. If the Options do not vest according to the terms and conditions set forth in
 Schedule A, the Options will be forfeited and returned to the Company, and all Holder's
 rights, or the rights of Holder's heirs in and to such Options will terminate, unless
 the Board of Directors of the Company (the "Board") determines otherwise in its
 sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 portion of the Options which have vested in accordance with the terms and conditions herein
 shall be referred to as the "Vested Options."

Section 4. <u>Option Period</u>. Vested Options shall be exercisable at any time following the date of such vesting and expiring on the tenth anniversary of the Grant Date (such period, the "Option Period"). To the extent not exercised by the end of the Option Period, the Options shall automatically expire and terminate.

Section 5. <u>Price</u>. The exercise price of the Options is as set forth on Exhibit A, subject to adjustment as set forth herein (the "Exercise Price").

Section 6. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Vested
 Options shall be exercisable by Holder delivering to the Company, during the Option Period, a Notice of Option Exercise in the form as
 attached hereto as Exhibit 1 (the "Exercise Notice") and complying with the remaining
 terms and conditions herein.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Exercise Notice shall be accompanied by full payment of the exercise price by
 tender to the Company of an amount equal to the Exercise Price multiplied by the number of
 underlying shares of Common Stock being purchased (the "Purchase Price"), by
 wire transfer or by certified check or bank cashier's check, payable to the order of
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Holder's
 payment for exercise of the Vested Options shall be accompanied by payment of any amount
 that the Company, in its sole discretion, deems necessary to comply with any federal, state
 or local withholding requirements for income and employment tax purposes If the Holder fails
 to make such payment in a timely manner, the Company may: (i) decline to permit exercise
 of the Vested Options or (ii) withhold and set-off against compensation and any other amounts
 payable to the Holder the amount of such required payment. Such withholding may be in the
 shares underlying the Vested Options at the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon
 receipt of the Purchase Price, together with written notice, and Holder's compliance
 with the other provisions herein, the Company will record the Holder as the beneficial owner
 of the applicable shares of Common Stock in the books and records of the Company. The shares
 of Common Stock shall not be certificated. With respect to any exercise of the Vested Options,
 the Holder will for all purposes be deemed to have become the holder of record of the number
 of shares of Common Stock purchased hereunder on the date a properly executed notice and
 payment of the Purchase Price is received by the Company (the "Exercise Date"),
 except that, if the date of such receipt is a date on which the share transfer books of the
 Company are closed, Holder will be deemed to have become the holder of such shares at the
 close of business on the next succeeding date on which the share transfer books are open.

Section 7. <u>Adjustments</u>. Upon the occurrence of any of the following events, the Holder's rights with respect to the Options shall be adjusted as hereinafter provided unless otherwise specifically provided in a written agreement between the Holder and the Company relating to the Options:

&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 the Common Stock shall be subdivided or combined into a greater or smaller number of shares
 or if the Company shall issue any shares of Common Stock as a dividend on its outstanding
 shares of Common Stock, the number of shares of Common Stock deliverable upon the exercise
 of Vested Options which have not been exercised as of such time shall be equitably and appropriately
 increased or decreased proportionately, and appropriate and equitable adjustments shall be
 made in the Exercise Price per share to reflect such subdivision, combination or share dividend.
 By way of example and not limitation, in the event that after the Award Date the Company
 completes a 2 for 1 forward split of the Common Stock, wherein each share of Common Stock
 is divided into two shares of Common Stock, the number of remaining unexercised Options shall
 be increased by 100% and the Exercise Price shall be reduced by 50%.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Company is merged or consolidated with or is acquired by another entity (any, an "Acquisition"),
 the Acquisition agreement shall provide that the Options shall be assumed by the surviving
 entity and the Exercise Prices and number of Options shall be equitably adjusted.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event of a recapitalization or a reorganization of the Company (other than a transaction
 described in Section 7(b)) pursuant to which securities of the Company or of another corporation
 are issued with respect to the outstanding shares of Common Stock, the Holder upon exercising
 the Vested Options shall be entitled to receive for the purchase price paid upon such exercise,
 the securities the Holder would have received if the Holder had exercised the Vested Options
 prior to such recapitalization or reorganization. Except as expressly provided herein, no
 issuance by the Company of shares of Common Stock of any class or securities convertible
 or exercisable into shares of Common Stock of any class shall affect, and no adjustment by
 reason thereof shall be made with respect to, the number or price of shares subject to the
 Options. No adjustments shall be made for dividends or other distributions paid in cash or
 in property other than securities). With respect to shares issued in accordance with this
 Section 7, no fractional shares shall be issued and the Holder shall receive from the Company
 cash in lieu of such fractional shares or the Company shall round to the nearest whole share
 of Common Stock, as determined by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Board or the successor Board of Directors shall determine the specific adjustments to be
 made under this Section 7, and its determination shall be conclusive. If the Holder receives
 securities or cash in connection with a transaction described in this Section 7 above as
 a result of holding the Options, such securities or cash shall be subject to all of the conditions
 and restrictions applicable to the Options with respect to which such securities or cash
 were issued, unless otherwise determined by the Board or the successor Board.

Section 8. <u>Necessity to Become Holder of Record</u>. The Holder shall not have any rights as a member of the Company with respect to any shares of Common Stock underlying the Options until Holder shall have become the holder of record of such shares of Common Stock. No dividends or cash distributions, ordinary or extraordinary, as to any shares of Common Stock shall be paid to or provided to the Holder if the record date is prior to the date on which Holder became the holder of record of the applicable shares of Common Stock.

Section 9. <u>Conditions to Exercise of Vested Options</u>. In order to enable the Company to comply with the Securities Act of 1933, as amended (together with the rules and regulations thereunder, the "Securities Act") and relevant state law, the Company may require the Holder, as a condition of the exercising of the Options granted hereunder, to give written assurance satisfactory to the Company that the shares of Common Stock subject to the Options are being acquired for Holder's own account, for investment only, with no view to the distribution of same, and that any subsequent resale of any such shares of Common Stock either shall be made pursuant to a registration statement under the Securities Act and applicable state law which has become effective and is current with regard to the shares of Common Stock being sold, or shall be pursuant to an exemption from registration under the Securities Act and applicable state law. The Options are subject to the requirement that, if at any time the Board shall determine, in its discretion, that the listing, registration, or qualification of the shares of Common Stock underlying the Options upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with the issue or purchase of shares underlying the Options, the Options may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected.

Section 10. <u>Representations and Warranties</u>. Holder hereby makes the representations and warranties as set forth in the Employment Agreement, with respect to the receipt of the Options and the shares of Common Stock that may be acquired upon exercise thereof, and such representations and warranties are hereby incorporated herein by reference.

Section 11. <u>No Transfer</u>. Holder may not sell, transfer, assign, give, place in trust, or otherwise dispose of or pledge, grant a security interest in, or otherwise encumber the Options, whether vested or not, of this Agreement, or otherwise encumber the Options or any rights herein or therein, and any attempted transfer shall be null and void *ab initio* and the Company shall not recognize any purported transferee as the holder thereof.

Section 12. <u>Taxes.</u>

&nbsp;&nbsp;&nbsp;&nbsp;(a) Holder
 shall pay to the Company, or make arrangements satisfactory to the Company regarding the
 payment of, all federal, state, local and foreign taxes that are required by applicable laws
 and regulations to be withheld by the Company with respect to such amount. Holder shall be
 responsible for the payment of all taxes required to be paid in connection with the issuance
 or vesting of the Options or the shares of Common Stock that may be issued with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;(b) THIS
 SUMMARY DOES NOT ADDRESS SPECIFIC STATE, LOCAL OR FOREIGN TAX CONSEQUENCES THAT MAY BE APPLICABLE
 TO HOLDER. HOLDER THAT THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS
 ARE SUBJECT TO CHANGE. BY SIGNING THIS AGREEMENT, HOLDER REPRESENTS THAT HOLDER HAS REVIEWED
 WITH HOLDER'S OWN TAX ADVISORS THE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES
 OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THAT HOLDER IS RELYING SOLELY ON SUCH
 ADVISORS AND NOT ON ANY STATEMENTS OR REPRESENTATIONS OF THE COMPANY OR ANY OF ITS AGENTS.
 HOLDER UNDERSTANDS AND AGREES THAT HOLDER (AND NOT THE COMPANY) SHALL BE RESPONSIBLE FOR
 ANY TAX LIABILITY THAT MAY ARISE AS A RESULT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

Section 13. <u>Data Privacy Consent</u>. In order to administer the this Agreement and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the "Relevant Companies") may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of this Agreement (the "Relevant Information"). By entering into this Agreement, the Holder (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Holder may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate. The Holder shall have access to, and the right to change, the Relevant Information. Relevant Information will only be used in accordance with applicable law.

Section 14. <u>Review</u>. The Holder has reviewed this Agreement in its entirety, has had an opportunity to obtain the advice of counsel before executing this Agreement and fully understands all provisions of this Agreement. The Holder hereby agrees to accept as binding, conclusive, and final all decisions or interpretations of the Board upon any questions relating to this Agreement.

Section 15. <u>No Rights to Continued Engagement</u>. This Agreement does not confer upon Holder any right to continued engagement by the Company or any of its subsidiaries or affiliated companies, nor shall it interfere in any way with the Company's right to terminate Holder's engagement at any time.

Section 16. <u>No Restriction</u>. Nothing in this Agreement will restrict or limit in any way the right of the Board to issue or sell stock of the Company (or securities convertible into stock of the Company) on such terms and conditions as it deems to be in the best interests of the Company, including, without limitation, stock and securities issued or sold in connection with mergers and acquisitions, stock issued or sold in connection with any stock option or similar plan, and stock issued or contributed to any qualified stock bonus or employee stock ownership plan.

Section 17. <u>Power of Attorney</u>. Holder hereby irrevocably appoints the Company and each of its officers, employees and agents as Holder's true and lawful attorneys with power (i) to sign in Holder's name and on Holder's behalf stock certificates and stock powers covering some or all of the Options and such other documents and instruments as the Board deems necessary or desirable to carry out the terms of this Agreement and (ii) to take such other action as the Board deems necessary or desirable to effectuate the terms of this Agreement. This power, being coupled with an interest, is irrevocable. Holder agree to execute such other stock powers and documents as may be reasonably requested from time to time by the Board to effectuate the terms of this Agreement.

Section 18. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) *General Representations and Warranties of Holder*. Holder represents and warrants hereunder that
 this Agreement and the transactions contemplated hereunder have been duly and validly authorized
 by all requisite action; that Holder has the full right, power and capacity to execute, deliver
 and perform its obligations hereunder; and that this Agreement, upon execution and delivery
 of the same by Holder, will represent the valid and binding obligation of Holder enforceable
 in accordance with its terms, except to the extent that enforcement thereof may be limited
 by bankruptcy, insolvency, reorganization, moratorium and other laws enacted for the relief
 of debtors generally and other similar laws affecting the enforcement of creditors'
 rights generally or by equitable principles which may affect the availability of specific
 performance and other equitable remedies. Holder represents and warrants that all personnel
 or agents of Holder who perform any activities on behalf of the Company hereunder or otherwise
 are legally authorized and permitted to work in the United States and for the benefit of
 the Company hereunder. The representations and warranties set forth herein shall survive
 the termination or expiration of this Agreement The representations and warranties set forth
 herein shall survive the termination or expiration of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;(b) *Representation and Warranties of Holder Related to the Options*. The Holder hereby makes the representations
 and warranties as set forth in the Employment Agreement, on the Award Date and thereafter
 such representations and warranties shall be deemed re-made and re-given by Holder to the
 Company on and as of each date that any Options vest or are exercised as set forth herein.

Section 19. <u>Effect of Waiver</u>. The waiver by either Party of a breach of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach hereof. No waiver shall be valid unless in writing.

Section 20. <u>Assignment</u>. No Party shall have any power or any right to assign or transfer, in whole or in part, this Agreement, or any of its rights or any of its obligations hereunder, including, without limitation, any right to pursue any claim for damages pursuant to this Agreement or the transactions contemplated herein, or to pursue any claim for any breach or default of this Agreement, or any right arising from the purported assignor's due performance of its obligations hereunder, without the prior written consent of the other Party and any such purported assignment in contravention of the provisions herein shall be null and void and of no force or effect, provided that, notwithstanding the foregoing, the Company may transfer, assign or delegate to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company any of Company's rights, obligations or duties hereunder. Notwithstanding the foregoing, the Company may transfer, assign or delegate to any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company any of Company's rights, obligations or duties hereunder. As used in this Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

Section 21. <u>No Third-Party Rights</u>. Except as expressly provided in this Agreement, this Agreement is intended solely for the benefit of the Parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person or entity other than the Parties hereto.

Section 22. <u>Entire Agreement; Effectiveness of Agreement</u>. This Agreement, the Employment Agreement and the other documents referenced therein, and any other agreement entered into between the Company and Holder with respect to the issuance of any equity securities of the Company or other equity awards relating to the Company set forth the entire agreement of the Parties hereto and shall supersede any and all prior agreements and understandings concerning the Holder's employment by the Company. This Agreement may be changed only by a written document signed by the Holder and the Company.

Section 23. <u>Severability</u>. If any one or more of the provisions, or portions of any provision, of the Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions or parts hereof shall not in any way be affected or impaired thereby.

Section 24. <u>Governing Law and Waiver of Jury Trial</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement, and any and all claims, proceedings or causes of action relating to this Agreement
 or arising from this Agreement or the transactions contemplated herein, including, without
 limitation, tort claims, statutory claims and contract claims, shall be interpreted, construed,
 governed and enforced under and solely in accordance with the substantive and procedural
 laws of the State of Delaware, in each case as in effect from time to time and as the same
 may be amended from time to time, and as applied to agreements performed wholly within the
 State of Delaware.

(b) Subject
 to Section 25, each Party agrees that all legal proceedings concerning this Agreement shall
 be commenced in the state and federal courts sitting in NEW LAKE COUNTY, FLORIDA (the "Selected
 Courts"). Each Party hereto hereby irrevocably submits to the exclusive jurisdiction
 of the Selected Courts for the adjudication of any dispute hereunder or in connection herewith
 or with any transaction contemplated hereby or discussed herein (including with respect to
 the enforcement of the rights of a Party under this Agreement), and hereby irrevocably waives,
 and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
 subject to the jurisdiction of such Selected Courts, or such Selected Courts are improper
 or inconvenient venue for such proceeding. Each Party hereby irrevocably waives personal
 service of process and consents to process being served in any such suit, action or proceeding
 by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
 of delivery) to such Party at the address in effect for notices to it under this Agreement
 and agrees that such service shall constitute good and sufficient service of process and
 notice thereof. Nothing contained herein shall be deemed to limit in any way any right to
 serve process in any other manner permitted by applicable law.

(c) TO
 THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HEREBY IRREVOCABLY WAIVES ALL
 RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
 TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES
 THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
 OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
 FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED
 TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
 IN THIS Section 24(c).

&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject
 to the provisions of Section 25, if any Party shall commence an action or proceeding to enforce
 any provisions of this Agreement, then the prevailing Party in such action or proceeding
 shall be reimbursed by the other Party for its attorney's fees and other costs and
 expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

Section 25. <u>Arbitration</u>. Any controversy, claim or dispute arising out of or relating to this Agreement or the Holder's employment by the Company, including, but not limited to, common law and statutory claims for discrimination, wrongful discharge, and unpaid wages, shall be resolved by arbitration in Astatula, Florida pursuant to then-prevailing National Rules for the Resolution of Employment Disputes of the American Arbitration Association. The arbitration shall be conducted by one arbitrator jointly selected by the Parties. In the event that the Parties are unable to agree on the identity of the arbitrator within ten days of the commencement of efforts to do so, each Party shall select one arbitrator and the two arbitrators so selected shall select the sole arbitrator who shall hear and resolve controversy, claim or dispute. The arbitrator shall be bound to follow the applicable Agreement provisions in adjudicating the dispute. It is agreed by both Parties that the arbitrator's decision is final, and that no Party may take any action, judicial or administrative, to overturn such decision. The judgment rendered by the arbitrator may be entered in the Selected Courts. Subject to the provisions of Section 24(d), each Party will pay its own expenses of arbitration and the expenses of the arbitrator will be equally shared provided that, if in the opinion of the arbitrator any claim, defense, or argument raised in the arbitration was unreasonable, the arbitrator may assess all or part of the expenses of the other Party (including reasonable attorneys' fees) and of the arbitrator as the arbitrator deems appropriate. The arbitrator may not award either Party punitive or consequential damages.

Section 26. <u>General Remedies.</u> Each Party acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the other Party, and thus each Party acknowledges that the remedy at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach by such Party of the provisions of this Agreement, that the other Party shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic loss and without any bond or other security being required.

Section 27. <u>Expenses</u>. Other than as specifically set forth herein, each of the Parties will bear their own respective expenses, including legal, accounting and professional fees, incurred in connection with this Agreement and the transactions contemplated herein.

Section 28. <u>Notices</u>. All notices and other communications hereunder shall be given in accordance with the provisions of the Employment Agreement.

Section 29. <u>Headings</u>. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 30. <u>Counsel</u>. The Parties acknowledge and agree that Anthony L.G., PLLC ("Counsel") has acted as legal counsel to the Company, and that Counsel has prepared this Agreement at the request of the Company, and that Counsel is not legal counsel to Holder individually. Each of the Parties acknowledges and agrees that they are aware of, and have consented to, the Counsel acting as legal counsel to the Company and preparing this Agreement, and that Counsel has advised each of the Parties to retain separate counsel to review the terms and conditions of this Agreement and the other documents to be delivered in connection herewith, and each Party has either waived such right freely or has otherwise sought such additional counsel as it has deemed necessary. Each of the Parties acknowledges and agrees that Counsel does not owe any duties to Holder in Holder's individual capacity in connection with this Agreement and the transactions contemplated herein. Each of the Parties hereby waives any conflict of interest which may apply with respect to Counsel's actions as set forth herein, and the Parties confirm that the Parties have previously negotiated the material terms of the agreements as set forth herein.

Section 31. <u>Rule of Construction</u>. The general rule of construction for interpreting a contract, which provides that the provisions of a contract should be construed against the Party preparing the contract, is waived by the Parties hereto. Each Party acknowledges that such Party was represented by separate legal counsel in this matter who participated in the preparation of this Agreement or such Party had the opportunity to retain counsel to participate in the preparation of this Agreement but elected not to do so<u>.</u>

Section 32. <u>Execution in Counterparts, Electronic Transmission</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original. The signature of any Party which is transmitted by any reliable electronic means such as, but not limited to, a photocopy, electronically scanned or facsimile machine, for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature or an original document.

*[Signatures appear on following page]*

 

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Award Date.

---

| | |
|:---|:---|
| The Sustainable Green Team, Ltd. | The Sustainable Green Team, Ltd. |
| By: | /s/ Anthony Raynor |
| Name: | Anthony Raynor |
| Title: | Chief Executive Officer |
| Holder: Joshua Wethington | Holder: Joshua Wethington |
| By: | /s/ Joshua Wethington |
| Name: | Joshua Wethington |

---

Schedule A

Option Award

---

| | |
|:---|:---|
| **Award** | **Award** |
| Options to Acquire Shares of Common Stock Granted: | 100,000, subject to adjustment as set forth in the Agreement. |
| Exercise Price: | $2.00 per share of Common Stock |

---

---

| | |
|:---|:---|
| **Vesting Schedule** | **Vesting Schedule** |
| **Number of Options to Acquire Shares of**<br> **Common Stock Vesting** | **Date Vesting** |
| 25000 | January 30, 2024 |
| 25000 | January 30, 2025 |
| 25000 | January 30, 2026 |
| 25000 | January 30, 2027 |

---

<u>Exhibit 1</u>

<u>Notice of Option Exercise</u>

Dated: ______________________

To: The Sustainable Green Team, Ltd.

Attn: Chief Executive Officer

Sir/Madam:

Notice is hereby given of my election to purchase _____ shares of common stock of The Sustainable Green Team, Ltd. (the "Company") at a price of $[_______]per share under the provisions of the stock option ("Option") granted to me on January 30, 2023.

I hereby certify that I am in compliance with the covenants and forfeiture provisions of the Option Agreement dated as of January 30, 2023 between the Company and me (the "Option Agreement"). I acknowledge that a violation of these provisions will result in the forfeiture of any remaining options that I have.

Enclosed is my check made payable to the Company in the amount of $_________________ in payment of the exercise price of the Option and my check in the amount of $________________ made payable to _____________________________ in payment of the tax due on exercise of the Option.

The following information is supplied for use in issuing and registering the shares purchased:

Number of shares of Common Stock:

---

| | |
|:---|:---|
| Full Name: | Joshua Wethington |
| Address: | |
| Signature: | |

---

## Exhibit 10.10

**Exhibit 10.10**

**CERTAIN CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS "[\*\*\*]") HAS BEEN**

**EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II)**

**WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.**

CONTRACTOR AGREEMENT

This Contractor Agreement (hereinafter, "Agreement") is entered into as of this 1st day of July, 2019 by and between NATIONAL STORM RECOVERY, LLC, with an office at 1825 NW <u>Corporate</u> Blvd., Suite 110, Boca Raton, FL 33431 (hereinafter, "Contractor"), and VISTA LANDFILL, LLC, with an office at 242 West Keene Road, Apopka, FL 32703 (hereinafter, "Company").

ARTICLE It — WORK AND CONSIDERATION. Contractor agrees to provide the labor, materials and equipment (other than as specified in Article II), and to perform the following work, pursuant to the terms of this Agreement and for the consideration set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Description
 of Work (specify any obligation of the Contractor to obtain building permits, certificates
 of occupancy or the like):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Contractor
 and third party customers of Contractor may bring vegetative waste to Vista LLC and shall
 be charged no disposal fee. The location to be used by Contractor for its activities is shown
 on the map attached hereto as <u>"Exhibit A"</u>.

2. Contractor
 shall grind vegetative waste belonging to Company at no cost to Company. Such waste shall
 remain on site and remain the property of Company.

3. Contractor
 shall grind its own material, and remove the material from the site, in an expeditious manner.

4. Contractor
 shall grind (no larger than a 4" grate) and stockpile the vegetative waste owned by
 Company at least every six (6) months. This waste shall not exceed [\*\*\*] tons in a twelve—month
 period.

5. Company
 shall pay for all waste processed by Contractor in excess of [\*\*\*] tons in a twelve month
 period. The charge for such excess waste shall be [$\*\*\*] per ton.

6. Contractor
 will only operate during Company's regular business hours; presently, Monday through
 Friday from 7:00 a.m. to 5:00 p.m. Such days and times may change.

7. Contractor
 shall comply with all Federal, State and Local regulations governing vegetative waste processing.

8. Contractor
 shall provide data to Company on an annual basis for FDEP repm1s. Reports shall include beginning
 inventory, ending inventory, tons received and tons removed.

9. Contractor
 shall provide personnel and equipment to properly supervise and control the processing of
 vegetative waste delivered by Contractor and by Company's customers, and shall ensure
 contaminated materials are removed prior to processing.

10. Contractor
 may place an office trailer and a portable fuel tank (with secondary containment) in the
 physical area designated on Exhibit A.

11. Contractor's
 physical area of operations is shown on <u>Exhibit. A</u>. Contractor may use the Company's
 wash pad to clean its equipment; and may also use the Company's bays to store its equipment;
 however, the last 3 bays shall be reserved solely for use by the Company.

12. Contractor
 shall reimburse Company on a monthly basis for electricity consumed in its operations. Invoicing
 will be via email. There is an electric meter on site.

13. Contractor
 and Company may negotiate for the Contractor's use of additional acres for temporary
 vegetative waste storage in the event of a hurricane.

14. Upon
 the termination of this Agreement, the Contractor shall leave the premises in the same condition
 as they were when operations hereunder began.

THE TERM HEREOF SHALL BE THREE (3) YEARS FROM THE DATE OF EXECUTION, AND MAY BE RENEWED FOR LIKE TERMS UPON THE AGREEMENT OF THE PARTIES, AT WHICH TIME RATES MAY BE NEGOTIATED. THERE SHALL BE NO AUTOMATICRENEWAL OF THIS AGREEMENT.

ALL VEGETATIVE MATERIAL BROUGHT TO THE SITE BY CONTRACTOR MUST BE REMOVED PRIOR TO TERMINATION OF THIS AGREEMENT, UNLESS OTHER <u>WRITTEN.</u> PROVISIONS HAVE BEEN MADE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Specifications
 attached: X Yes _ No

C. RENT:

● CONTRACTOR SHALL PAY COMPANY $[\*\*\*] RENT ON THE FIRST OF EACH MONTH, WITH THE FIRST PARTIAL MONTH BEING PRORATED. PAYMENT SHALL BE BY CHECK PAYABLE TO "VISTA LANDFILL, LLC".

● CONTRACTOR SHALL PAY COMPANY $[\*\*\*] FOR EACH TON OF GROUND VEGETATIVE WASTE LEAYING THE PREMISES.

● VOLUME REPORTS WILL BE PROVIDED VIA EMAIL ON A MONTHLY BASIS, TO INCLUDE, DATE, TIME, COMPANY NAME AND TONS FOR INBOUND AND OUTBOUND VEGETATIVE AND GROUND VEGETATIVE WASTE.

● CONTRACTOR'S PAYMENT SHALL BE MADE ON A MONTHLY BASIS. PAYMENT SHALL BE BY CHECK PAYABLE TO "VISTA LANDFILL, LLC".

ARTICLE II COMPANY FURNHSHED EQUIPMENT. Company will furnish without charge, or will lease or otherwise furnish to Contractor at the rates shown in this Article II, the following materials or equipment for use by Contractor in performing the work described in Article l:

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

● Company shall provide monthly reports to Contractor to include, date, time, company name and tons for inbound and outbound vegetative and ground vegetative waste.

● Company shall provide, at no charge to Contractor, an operational water well in the area of Contractor's operations.

ARTICLE III - PERFORMANCE BOND. If checked[], prior to commencement of work hereunder, Contractor shall furnish to Company a performance and payment bond, underwritten by a corporate surety satisfactory to Company, in the penal sum of one hundred percent (100%) of the amount of this Agreement as security for the faithful performance of this Agreement and for the payment of all persons, firms or corporations to whom Contractor may become legally indebted for labor, materials, tools, equipment or services of any nature employed or used by it in performing the work. The bond shall contain any applicable statutory language, shall be satisfactory in form to Company and shall meet any applicable statutory requirements to protect Company and its property from any lien, claim or suit resulting from Contractor's failure to make the payments referred to in this Article m.

ARTICLE IV INDEPENDENT CONTRACTOR The work and labor herein provided for shall be performed and furnished by Contractor as an independent contractor and under the sole supervision, management, direction and control of Contractor in accordance with the terms and conditions of this Agreement. Contractor will have full control over employees it may see fit to employ to assist in performance of this Agreement including, but not limited to, the hiring, firing and supervision of such employees of Contractor. Contractor further agrees that the work to be performed by Contractor shall meet with the approval of Company's engineers or designated representatives but that the detailed manner and method of doing same shall be under the control of Contractor.

ARTICLE V - PERFORMANCE STANOARDS. Contractor represents that it has expertise in performing the work required under this Agreement, and that all work will be performed in accordance with generally accepted professional standards in a prudent, workmanlike and lawful manner, with minimal interference with Company's operations and property. Contractor further represents that work and materials supplied by or through Contractor shall comply with all requirements of applicable drawings and specifications and shall be free from defects and damage. These representations shall survive termination of this Agreement.

ARTICLE VI - INSPECTION AND ACKNOWLEDGEMENT. Contractor represents that it has inspected and thoroughly examined the premises or properly where or upon which the work is to be performed, and is not relying on any representations of the Company, except those provided in writing. Contractor's failure to inspect and examine the premises or property resulting in its subsequent inability to perform the work hereunder shall in no way relieve it of the obligations of this Agreement. Contractor hereby waives any claims for surface, subsurface or other site conditions.

Contractor acknowledges and is aware that the facility at which it is performing work contains residential, commercial, industrial and/or other waste materials, and Contractor knowingly and voluntarily assumes all risk of injury and damage to Contractor and Contractor's property, employees, subcontractors and others working for the Contractor, caused by exposure to such waste materials while at the facility, including any which may prove to be hazardous or toxic. Contractor agrees to advise fully all of its employees, subcontractors and others working for the Contractor at the facility, of the facility risks and of all necessary environmental, safety and health procedures required by applicable state or federal law, regulation or order or required by the Company.

ARTICLE VII - CONTRACTOR'S FAILURE TO PERFORM. In the event Contractor fails to commence said work within the time specified, or having begun said work fails to complete it on or before the time specified, or abandons it for any reason, suspends or fails to continue it, refuses to promptly correct any work not in conformity with the requirements of this Agreement, or defaults in any manner in the performance under the terms of the Agreement for a period of five (5) days (unless Contractor is prevented from continuing by reason of Force Majeure), the Company shall have the right, at its option, to terminate all or pa11 of this Agreement and to take over said work and complete it or have said work completed by another in any reasonable manner at Contractor's expense. Such right of termination is without prejudice to any other rights or remedies Company may have under applicable law or this Agreement.

ARTICLE VIII CONTRACTOR'S INDEMNITY AND INSURANCE. Contractor agrees to defend, hold harmless and unconditionally indemnify Company, and all of its Affiliates (defined below), and all of their respective officers, directors, shareholders and employees, against and for all liabilities, costs, expenses (including attorney" fees and expenses of investigation), claims and damages which Company may at any time suffer or sustain or become liable for by reason of any accidents, damages or injuries (including injuries resulting in death) either to the persons or property or both, of Contractor or Company or employees of either party, or to any other parties, in any manner caused by or resulting from Contractor's breach of this Agreement or acts or failures to act by Contractor or its employees or agents in the performance of this Agreement; provided, however, that such indemnification and hold harmless shall not apply to claims for loss, damage, injury or death to the extent caused by the negligence of Company.

Contractor further agrees at all times during this Agreement to maintain in full force and effect Employer's Liability, Worker's Compensation, Public Liability and Property Damage, including contractual liability coverage for the above hold harmless and indemnification provisions, and other insurance as specified by Company. All of such policies shall be endorsed to name Company, and all of its Affiliates, as additional insureds and such insurance shall be by insurers and for policy limits acceptable to Company and before commencement of work hereunder and on an annual renewal basis Contractor agrees to furnish Company certificates of insurance or other evidence satisfactory to Company to the effect that such insurance has been procured and is in force. The certificate of insurance shall accurately reflect the insurance coverages, including any and all limitations, exclusions and restrictions and provide that in the event of cancellation or material change in a policy affecting the certificate holder, thirty (30) days prior written notice shall be given the certificate holder. As used above in this Article VII, the term "Affiliates" means any corporation, partnership or other recognized entity that directly, or indirectly, controls, or is controlled by, or is under common control with Company and all of their respective officers, directors, shareholders and employees.

For the purpose of this Agreement, Contractor shall carry the following types of insurance in at least the limits (which may be a combination of primary and excess coverage) specified below:

---

| | |
|:---|:---|
| COVERAGES | LIMITS OF LIABILITY |
| <br> Worker's Compensation<br> Employer's Liability<br> General Liability, Including Bodily Injury, Property Damage and Contractual Liability<br> Automobile Liability, including Bodily Injury and Property Damage | <br> Statutory<br> $500,000 each Occurrence<br> $2,000,000 each Occurrence<br>$2,000,000 each Occurrence<br>|

---

ARTICLE IX CHANGES AND EXTRA WORK Company may, by written notice, direct changes in the work to be performed under this Agreement which are within the general scope of this Agreement. If Contractor believes that any such changes or extra work will result in additional cost or require additional time for completion of the work, it shall, within ten (10) calendar days of the written notice from Company, notify Company. Such notice from Contractor shall be a condition precedent to Company's o ligation to pay for any changes or extra work. If Contractor fails to give notice as required in this paragraph, it waives any rights to adjustments or additional compensation. If Contractor provides the notice of increase to Company, it shall be entitled to an equitable adjustment in compensation to cover additional costs associated with approved changes. The Contractor shall proceed with the work as changed pending determination of any adjustment in compensation and the pendency of any dispute resolution procedures shall not relieve Contractor from its duty to perform under this Agreement or serve to delay or suspend any schedule or deadline under this Agreement.

ARTICLE X COMPLIANCE WITH LAWS. In the performance of its work hereunder, Contractor agrees to comply with all applicable federal, state, provincial and local laws and ordinances and all lawful orders, rules and regulations of any constituted authority, including but not limited to, social security and income tax withholding laws, employment compensation laws, environment, safety and health laws. Unless otherwise agreed to in writing by Company, Contractor shall have full and exclusive liability for the payment of any and all sales, use, excise, business and occupation or similar taxes, and any taxes for unemployment insurance, retirement benefits, or similar obligations which may now or hereafter be imposed by law or collective bargaining agreements.

Contractor represents and warrants that it has all necessary permits, licenses and other forms of documentation, and its personnel have received all necessary training including, but not limited to, health and safety training, required to perform services hereunder and, upon request of Company, contractor shall furnish copies and/or evidence thereof to Company.

ARTICLE XI COMPLETION. Upon completion of the work to be performed under this Agreement, Contractor shall notify Company, at which point Owner will perfo1m its final inspection and notify Contractor of any deficiencies. Upon correction of any and all deficiencies, satisfaction of the requirements of A1ticle XV hereof, and performance of all Contractor's other obligations under this Agreement, Company will provide final payment to Contractor, less any adjustments for statutory retainage required by applicable law and disputed amounts. Contractor shall be responsible for removal of debris and surplus materials from Company property following acceptance, leaving the property in broom clean condition.

ARTICLE XII RISK OF LOSS. Until written acceptance of the work by Company, all risk of loss, injury or destruction by any cause other than the negligence or willful misconduct of Company shall be borne by Contractor. Responsibility of Contractor shall extend to materials and equipment furnished or leased by Company to Contractor under this Agreement.

ARTICLE XIII - CONFIDENTIAUTY. Contractor agrees that it will not at any time, either while engaged hereunder by Company or afterwards, make any outside use of or disclose to any other person or organization, except a authorized in writing by Company, any information, whether patentable or not, regarding plans, programs, facilities, processes, products, costs, equipment, operations or customers which comes within the knowledge of Contractor in the performance of the work hereunder. Under no circumstances will any publication, production or use by Contractor relating to the business or activities of Contractor or performance of the work of the Contractor hereunder be allowed without prior written consent of Company.

ARTICLE XIV- PATENTS AND TRADE SECRETS.

Contractor shall pay all royalties and license fees, defend all suits or claims for infringements of any patent rights and save Company harmless from loss on account thereof. Contractor shall not be responsible for all such loss when a particular design, process or the or the product of a particular manufacturer or manufacturers is specified in drawings or specifications provided by Company, but if Contractor has reason to believe that the design, process or product specified is an infringement of a patent, it shall be responsible for such loss unless such information is promptly given to Company.

In the event Contractor creates and desires to publish, produce or use for itself or others, any writings, drawings, photographs or computer software which relates to the business or activities of the Company or which contains information received as a result of the work performed for Company by Contractor, a draft manuscript or printout must be provided to Company by Contractor prior to publication, production or use. Contractor also agrees that any manuscript, article, book, pamphlet, advertisement, drawing, photograph or computer software produced by Contractor in the course of performing this Agreement is to be deemed "work for hire" for which Company is entitled to all copyrights and other benefits thereunder.

Contractor has identified on an attachment to this Agreement any inventions or discoveries which were conceived prior to the association of Contractor and Company, either wholly or in part, and which contractor wishes to exclude from this Agreement.

ARTICLE XV LIENS. The final payment shall not be due until the Contractor has delivered to the Company evidence satisfactory to Company of full payment to all subcontractors, suppliers, laborers and materialmen and complete releases of all lien rights any of them may have arising out of the perfo1mance of the work under this Agreement, or a bond satisfactory to the Company indemnifying it against any such lien. If any such lien if filed or recorded during the course of performance of this Agreement or thereafter, Contractor shall be in material breach and default under this Agreement if such lien is not released, or a bond satisfactory to Company indemnifying it against such lien is not procured by Contractor, within five (5) calendar days.

ARTICLE XVI EQUAL OPPORTUNITY. It is agreed as a condition of this Agreement that in the performance of this Agreement, Contractor and Company shall not engage in any conduct or practice which violates applicable law, order or regulation prohibiting discrimination against any person by reason of race, religion, national origin, sex, or age, handicapped condition or veteran's status.

ARTICLE XVII FORCE MAJEURE. Except for the obligation to pay for services rendered, neither party hereto shall be liable for its failure to perform hereunder, in whole or in part, due to contingencies beyond its reasonable control, including, but not limited to, strikes, riots, war, fire, acts of God, injunction, compliance with any law, regulation or order, whether valid or invalid, of the United States of America or any other governmental body or any instrumentality thereof, whether now existing or hereafter created.

ARTICLE XVIII - ASSIGNMENT; SUBCONTRACTRNG. Contractor shall not assign or subcontract all or any part of this Agreement without the advance written approval of the Company. Any assignment or subcontract shall not relieve Contractor of any responsibility hereunder.

ARTICLE XIX - SEVERABILITY. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

ARTICLE XX -TERMINATION AND SURVIVAL. This Agreement may be terminated by Company on thirty (30) days notice with or without cause, or immediately for any breach of this Agreement. The terms and provisions of Articles V, VIII, and XIV shall survive this Agreement. Under no circumstances shall Company be liable to Contractor for any compensation in excess of that expressly set forth in this Agreement, lost profits, lost opportunity, unrecovered start-up costs, preparatory, settlement or discontinuation costs or damages, or consequential or other indirect damages (including, but not limited to, severance pay and other personnel compensation and costs and attorneys' fees) as a result of the Company's termination of a portion or all of this Agreement, whether such termination is pursuant to the provisions of Article VII, or this Article XX or in connection with any claim by Contractor related to this Agreement.

ARTICLE XXI - AMENDMENT. Any changes in this Agreement must be in writing and executed by both parties.

ARTICLE XXII - NOTICE. Any notice or communication required or permitted hereunder shall be sufficiently given if sent by first class mail, postage prepaid, to the addresses set forth above.

**ARTICLE XXIII - ENTIRE AGREEMENT.** This agreement (including any schedules and annexes hereto and any drawings or specifications referenced herein) constitutes the entire agreement and understanding between the parties and supersedes any prior agreement and understanding, whether written or oral, relating to the subject matter of this Agreement.

**ARTICLE XXIV - ATTORNEYS FEES.** In the event the Contractor or Owner brings any legal action to enforce or interpret any of the terms and provisions of this Agreement, the prevailing party shall be entitled to recover its costs and expenses of suit, including fees of expert witnesses, and reasonable attorneys' fees, including any incu1Ted in any appeal or in connection with any bankruptcy case or any arbitration.

**ARTICLE XXV - MEDIATION.** Disputes between the parties relating to the interpretation and enforcement of this Agreement shall be submitted to mediation in accordance with this Article **XXV.** To commence the dispute resolution process, either party may serve written notice on the other party specifically identifying the dispute and requesting that efforts at resolving the dispute begin. The parties shall attempt in good faith to resolve the dispute using their best efforts to reach agreement on the matters in dispute. If the parties are unable to resolve the dispute by negotiation within ten (I 0) days, mediation shall be initiated upon written request by either party. Within thirty (30) days of such written request, the parties shall jointly select an individual to serve as the mediator of any dispute if willing or able to do so. If the parties cannot agree on a mediator, then the parties shall, within ten (10) days after written request by either party, request that the American Arbitration Association ("AAA") name three qualified mediators. Within five (5) business days of receipt of the AAA list, each party shall notify the other of a name it wishes to delete from the list. The mediator shall be the individual on the list not so deleted. If any party fails to notify the other of the mediator it intends to delete within the time specified, the other party shall select the mediator from the AAA list. Should both parties delete the same name, Company shall select the mediator from the remaining two (2) names. The mediator so selected shall not be a person who has previously acted in any capacity for either party and who has at least ten (10) years of experience in the construction industry as a contractor, design professional or attorney. A single mediator, once selected, shall be used for all disputes until unable or unwilling to serve in which event the AAA list selection process shall be repeated. The mediation shall take place in the county in which the project is located, within thirty (30) days after the written request is delivered to the non requesting party, or the mediator is selected, if later. The parties shall submit to the mediator all information determined by the mediator to be necessary for a negotiated resolution of the dispute. The parties shall also meet promptly and shall use good faith efforts to resolve the dispute when and as requested by the mediator. The costs of mediation, including without limitation the mediator's fees, shall be paid equally by each party, *provided* that each party shall bear its own attorney's fees with respect to such mediation. The pendency of any dispute resolution procedures shall not relieve Contractor from its duty to perform under this Agreement or serve to delay or suspend any schedule or deadline under this Agreement. Compliance with the provisions of this Article XXV shall be a condition precedent to the bringing of any lawsuit or other action to enforce any rights or claims under or related to this Agreement except any action seeking injunctive or other extraordinary equitable relief, but shall not be a condition precedent to the right of Company to terminate this Agreement.

---

| | | | |
|:---|:---|:---|:---|
| NATIONAL STORM RECOVERY, LLC | NATIONAL STORM RECOVERY, LLC | VISTA LANDFILL, LLC, by and through its Manager/Member, WASTE MANGEMENT INC. OF FLORIDA | VISTA LANDFILL, LLC, by and through its Manager/Member, WASTE MANGEMENT INC. OF FLORIDA |
| By: | */s/ Tami Raynor* | By: | */s/ Matthew Ork* |
| Print Name: | Tami Raynor | Print Name: | Matthew Ork |
| Title: | <br>Owner | Title: | <br>Director of Operations<br>|

---

## Exhibit 10.11

**Exhibit 10.11**

**<u>AMENDMENT TO CONTRACTOR AGREEMENT</u>**

**THIS AMENDMENT** is made and entered into this 3 day of December, 2021, by and between WASTE MANAGEMENT INC. OF FLORIDA, with offices at 242 W. Keene Road, Apopka, FL 32703 ("Company") and NATIONAL STORM RECOVERY, LLC with offices at 1825 NW Corporate Blvd., Suite 110, Boca Raton, FL 33431 (the "Contractor").

**WITNESS ETH:**

**WHEREAS,** the Company and Contractor are parties to that certain Contractor Agreement dated July 1, 2019, (the "Agreement") and desire to modify and amend same as set forth herein;

**NOW, THEREFORE,** in consideration of the mutual understandings and covenants set forth herein, WMIF and Contractor agree as follows:

1. *<u>Term</u>* - The term is extended for three (3) years such that the termination date shall be June 30, 2025. The parties may renew or extend the term upon mutual written agreement.

2. *<u>Contractor Location</u>* - Contractor utilizes a portion of Company's site at Company's Vista Landfill (242 W. Keene Road, Apopka, FL 32703 and Company's Pine Ridge landfill (5400 Rex Road, Winter Garden, FL 34787) for its activities hereunder. In the event such portion is needed by Company for its operations in Company's sole discretion, Contractor shall relocate its activities at the site (in the case of Vista Landfill, in a generally southern direction) as determined by Company. Should such relocation be unacceptable to Contractor, the parties shall use good faith efforts to resolve the issue but if same is not resolved within a reasonable time either party may terminate this Agreement.

3. ***<u>Other</u>*** - Those provisions not specifically modified herein remain in full force and effect.

IN WITNESS WHEREOF, the parties have set their hands this 1 day of December, <u>2021.</u>

---

| | | |
|:---|:---|:---|
| Attest: | WASTE MANAGEMENT INC. OF FLORIDA | WASTE MANAGEMENT INC. OF FLORIDA |
|  | By: | /s/ Matthew Chan |
|  | Title: | <br><u>Director</u> |
| Attest: | NATIONAL STORM RECOVERY LLC | NATIONAL STORM RECOVERY LLC |
|  | By: | /s/ Edward R. Lee |
|  | Title: | C.O.O. |

---