# EDGAR Filing Document

**Accession Number:** 0001813744
**File Stem:** 0001599916-23-000036
**Filing Date:** 2023-2
**Character Count:** 152291
**Document Hash:** 995520a4740dd520cdd1dd288741a903
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001599916-23-000036.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001599916-23-000036

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 50

**CONFORMED PERIOD OF REPORT**: 20221031

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** World Scan Project, Inc.
- **CENTRAL INDEX KEY:** 0001813744
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-COMPUTER & PERIPHERAL EQUIPMENT & SOFTWARE [5045]
- **IRS NUMBER:** 352677532
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56208
- **FILM NUMBER:** 23611559

**BUSINESS ADDRESS:**
- **STREET 1:** 2-18-23, NISHIWASEDA
- **CITY:** SHINJUKU-KU, TOKYO
- **STATE:** M0
- **ZIP:** 162-0051
- **BUSINESS PHONE:** 81-3-6670-1692

**MAIL ADDRESS:**
- **STREET 1:** 2-18-23, NISHIWASEDA
- **CITY:** SHINJUKU-KU, TOKYO
- **STATE:** M0
- **ZIP:** 162-0051

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 10-K**

**[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.**

**FOR THE FISCAL YEAR ENDED OCTOBER 31, 2022**

**OR**

**[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from to**

**COMMISSION FILE NUMBER: 000-56208**

**World Scan Project, Inc.**

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

---

| | |
|:---|:---|
| **Delaware** | **35-2677532** |
| (State or other jurisdiction<br> of incorporation or organization) | (I.R.S. Employer Identification No.) |
| **2-18-23, Nishiwaseda,**<br> **Shinjuku-Ku, Tokyo, Japan** | **162-0051** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Securities to be registered under Section 12(b) of the Act: None

Securities to be registered under Section 12(g) of the Exchange Act:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Title of each class | &nbsp;&nbsp; Name of each exchange on<br> which our share are traded |
| &nbsp;&nbsp;**Common Stock, $0.0001** | &nbsp;&nbsp;None, but quoted on the Pink® Open Market operated by the OTC Markets Group under the symbol "WDSP" |

---

------

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

[ ] Yes [X] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

[ ] Yes [X] No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [X] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

[X] Yes [ ] No

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

[ ]

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

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer☒ <br> 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 financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [X] No

As of April 30, 2022, the aggregate market value of the voting common stock held by non-affiliates of the Registrant (without admitting that any person whose shares are not included in such calculation is an affiliate) was approximately $240,000.

As of February 10, 2023 there were 10,647,350 shares of the Registrant's common stock, par value $0.0001 per share, and 10,000,000 shares of Series A Preferred Stock, par value $0.0001 per share, issued and outstanding.

------

**TABLE OF CONTENTS**

**WORLD SCAN PROJECT, INC.**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;PART I |  | PAGE |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1](#business) | &nbsp;&nbsp;&nbsp;&nbsp;[Business](#business) | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1A](#risk) | &nbsp;&nbsp;&nbsp;&nbsp;[Risk Factors](#risk) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 1B](#unresolved) | &nbsp;&nbsp;&nbsp;&nbsp;[Unresolved Staff Comments](#unresolved) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 2](#properties) | &nbsp;&nbsp;&nbsp;&nbsp;[Properties](#properties) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 3](#legal) | &nbsp;&nbsp;&nbsp;&nbsp;[Legal Proceedings](#legal) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 4](#mine) | &nbsp;&nbsp;&nbsp;&nbsp;[Mine Safety Disclosures](#mine) | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;PART II |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 5](#market) | &nbsp;&nbsp;&nbsp;&nbsp;[Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](#market) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 6](#selected) | &nbsp;&nbsp;&nbsp;&nbsp;[Selected Financial Data](#selected) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 7](#management) | &nbsp;&nbsp;&nbsp;&nbsp;[Management's Discussion and Analysis of Financial Condition and Results of Operations](#management) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 7A](#qualitative) | &nbsp;&nbsp;&nbsp;&nbsp;[Quantitative and Qualitative Disclosures about Market Risk](#qualitative) | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 8](#financial) | &nbsp;&nbsp;&nbsp;&nbsp;[Financial Statements and Supplementary Data](#financial) | F1-F9 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 9](#changes) | &nbsp;&nbsp;&nbsp;&nbsp;[Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](#changes) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 9A](#controls) | &nbsp;&nbsp;&nbsp;&nbsp;[Controls and Procedures](#controls) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 9B](#other) | &nbsp;&nbsp;&nbsp;&nbsp;[Other Information](#other) | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;PART III |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 10](#directors) | &nbsp;&nbsp;&nbsp;&nbsp;[Directors, Executive Officers and Corporate Governance](#directors) | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 11](#executive) | &nbsp;&nbsp;&nbsp;&nbsp;[Executive Compensation](#executive) | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 12](#security) | &nbsp;&nbsp;&nbsp;&nbsp;[Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](#security) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 13](#certain) | &nbsp;&nbsp;&nbsp;&nbsp;[Certain Relationships and Related Transactions, and Director Independence](#certain) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 14](#principal) | &nbsp;&nbsp;&nbsp;&nbsp;[Principal Accounting Fees and Services](#principal) | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;PART IV |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;[Item 15](#exhibits) | &nbsp;&nbsp;&nbsp;&nbsp;[Exhibits, Financial Statement Schedules](#exhibits) | 12 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;[Signatures](#signatures) | 12 |

---

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[**Table of Contents**](#table)

**FORWARD LOOKING STATEMENTS**

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements".

These forward-looking statements generally are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result," and similar expressions.

Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

**PART I**

**Item 1. Business.**

***Corporate History***

World Scan Project, Inc., a Delaware corporation ("the Company") was incorporated under the laws of the State of Delaware on October 25, 2019.

On October 25, 2019, Ryohei Uetaki, our officer and director, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company, in exchange for 10,000,000 shares of Common Stock, par value $0.0001 per share and 10,000,000 shares of Series A Preferred stock, par value $0.0001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act. The value of the stock provided to Mr. Uetaki is $2,000 and is based on par value of $.0001 per share for both common stock and Series A Preferred Stock.

On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer.

On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer.

On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation ("WSP Japan"), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan's common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition.

WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company is an industrial automation equipment manufacturer, designing/developing robots, drones, Web3 infrastructure, IoT equipment and other related products, operating globally.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent to approximately 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST.

------

[**Table of Contents**](#table)

**Overview**

We operate through our wholly owned subsidiary, World Scan Project Corporation, a Japanese Company. We are an industrial automation equipment manufacturer in the start-up stages, currently focused on developing and designing robots, drones, Web3 infrastructure, IoT equipment and other related products. We currently operate globally.

Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 162-0051, Japan.

The Company's website is https://www.world-scan-project.com/.

The Company has elected October 31th as its year end.

**Sales results**

The Company's sales results are as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Product/Service | &nbsp;&nbsp;From November 1, 2021 | &nbsp;&nbsp;From November 1, 2021 | &nbsp;&nbsp; From November 1, 2020 | &nbsp;&nbsp; From November 1, 2020 |  |  |
| &nbsp;&nbsp;Description | &nbsp;&nbsp;through October 31, 2022 | &nbsp;&nbsp;through October 31, 2022 | &nbsp;&nbsp;through October 31, 2021 | &nbsp;&nbsp;through October 31, 2021 | &nbsp;&nbsp;Total | &nbsp;&nbsp;Total |
|  | &nbsp;&nbsp;Number | &nbsp;&nbsp;Amount&nbsp;&nbsp;&nbsp;&nbsp; | &nbsp;&nbsp;Number | &nbsp;&nbsp;Amount&nbsp;&nbsp;&nbsp;&nbsp; | &nbsp;&nbsp;Number | &nbsp;&nbsp;Amount |
| &nbsp;&nbsp;SkyFight-X |  |  |  |  |  |  |
| &nbsp;&nbsp;Small sized drone | &nbsp;&nbsp; 230000 | $&nbsp;&nbsp;13816367 | &nbsp;&nbsp;130000 | $&nbsp;&nbsp;10930726 | &nbsp;&nbsp;360000 | $&nbsp;&nbsp;24747093 |
| &nbsp;&nbsp;ZEXABOX |  |  |  |  |  |  |
| &nbsp;&nbsp;Crypto currency miner | &nbsp;&nbsp;27720 | $&nbsp;&nbsp;14917287 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;27720 | $&nbsp;&nbsp;14917287 |
| &nbsp;&nbsp;SKY SELFEE and FLYLLY |  |  |  |  |  |  |
| &nbsp;&nbsp;Small sized drone with HD camera | 2664 | $&nbsp;&nbsp;78336 | &nbsp;&nbsp;9800 | $&nbsp;&nbsp;561369 | &nbsp;&nbsp;12464 | $&nbsp;&nbsp;639705 |
| &nbsp;&nbsp;SOLAR SUNVA |  |  |  |  |  |  |
| &nbsp;&nbsp;Washing ROBOT of <br> Photovoltaic power generation panel | &nbsp;&nbsp;18 | $&nbsp;&nbsp; 156814 | &nbsp;&nbsp;2 | $&nbsp;&nbsp; 32117 | &nbsp;&nbsp;20 | $&nbsp;&nbsp;188931 |
| &nbsp;&nbsp;Other |  |  |  |  |  |  |
|  | &nbsp;&nbsp;- | $&nbsp;&nbsp; 471537 | &nbsp;&nbsp; - | $&nbsp;&nbsp; 289604 | &nbsp;&nbsp;- | $&nbsp;&nbsp;761141 |
| &nbsp;&nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp; |  |  |  |  |  |  |
| &nbsp;&nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp; |  | $&nbsp;&nbsp;29440341 |  | $&nbsp;&nbsp;11813816 |  | $&nbsp;&nbsp;41254157 |

---

**SkyFight-X**

SkyFight-X, was originally developed and designed by our Chief Executive Officer, specifically for the hobbyist drone race known as "SKY FIGHT", which is organized by Drone Net, a Japanese Company. Drone Net began operating a 'drone school' in 2017, and a drone race in 2019. At the tie, our CEO, Ryohei Uetaki, was in the planning stages of a new, small sized drone product, and believed that his products would have higher performance capabilities than the drones at the time used by Drone Net, which prompted him to propose a collaboration between the Company and Drone Net. Currently, Drone Net operates 16 racetracks in Japan, specifically designed for drone use.

Although SkyFight-X was designed for Sky Fight, the drones can also be used outside the facilities designed exclusively for drone racing, and they can be used for recreational and miscellaneous purposes.

The following includes details regarding the SkyFight-X which we currently offer for sale. As mentioned later on, we have plans to expand our reach to more customers, but at this time it should be noted our only customer is Drone Net.

**<u>Schematics of SK</u>** **<u>YFight-X</u>**

- The weight of SKYFight-X is approximately 40 grams.

Product packaging

- One Main body of machine

- One Transmitter (2.4 GHz)

- One Battery

- Four Spare propellers

- One USB charging cable

- One user manual

**<u>Current Operations</u>**

For the year ended October 31, 2021, the Company sold 130,000 small sized drones named "SkyFight-X" to Drone Net for total proceeds of JPY1,185,000,000 (approximately $10,394,737).

For the year ended October 31, 2022, the Company sold 230,000 small sized drones named "SkyFight-X" to Drone Net for total proceeds of JPY1,760,000,000 (approximately $13,816,365).

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[**Table of Contents**](#table)

**<u>Structure of Operations of SkyFight-X</u>**

![](image_021.jpg)

At present, the majority of the Company's operations are carried out in the following manner:

(1) The Company receives an order for the Company's products from Drone Net.

In accordance with the Memorandum of Understanding, entered into on March 1, 2020, Drone Net shall not develop, manufacture, purchase or sell similar products to SkyFight-X without the Company's consent through February 28, 2023.

(2) The Company places orders to G-Force, Inc., a Japan corporation ("G-Force") to manufacture the Products, in accordance with the terms outlined in the agreement entered into on March 4, 2020.

(3) G-Force purchases lap measuring sensors (the "Sensors") from ShenZhen RadioMaster Co., Ltd., a Chinese corporation ("RadioMaster"). The sensors are later installed in the SkyFight-X Drones.

(4) The Sensors are installed into the drones manufactured by G-Force on behalf of the Company.

(5) G-Force manufactures the Products and installs the Sensors. G-Force is a non-exclusive OEM supplier of the Company. After completion of the production process, the Company conducts a final product inspection of the goods produced. During the inspection, on average, the Company physically inspects between five to ten percent of the products for quality control.

(6) Following inspection and acceptance of the products, the Company directs G-Force to deliver the products to a location designated by Drone Net; currently the warehouse of Drone Net is in Toyko, Japan, and G-Force delivers the products there directly.

(7) The Company relies on the marketing and sales of Drone Net, in part for its own success. If Drone Net realizes increased demand for the products, then in turn our own operations will increase and benefit from more sales. It should be noted that, at present, Drone Net is our primary customer.

**<u>Marketing</u>**

Our marketing plan, at present, is not yet complete and is still being researched and developed. SkyFight-X, our current primary product, is being marketed solely by our primary customer, Drone Net. We believe that Drone Net's sales of our products will result in increased demand from Drone Net for future products, but this is not directly related to any marketing activities conducted by the Company itself. We do not currently engage in any marketing efforts, with the exception of the company's website located at: https://www.world-scan-project.com/

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[**Table of Contents**](#table)

**Flylly: Small sized drone with 4K camera**

The Flylly is an extra small sized drone weighing only 38 grams, and it is not subject to the revised Aviation Act. A４K camera is installed on the drone for taking photographs, and angles can be adjusted manually by tilting the camera. Automatic flights are also programmable for simple flight plans.

Flylly and a smartphone is all a user needs for operation: download the dedicated app, SKY Drone Go, to the smartphone to connect and control Flylly via Wi-Fi.

<u>Schematics of Flylly</u>

- The weight of Flylly is approximately 38 grams.

*<u>Product packaging</u>*

Specifications: Total length:82 mm, Width:89mm Hight:33 mm Weight:39.5g

A set of Flylly contains the blow:

- Main body of drone, 1 unit

- LiPo battery, 1 unit

- Upper shell, 3 units (in orange, yellow and white)

- Spare propellers, 4 pieces (2 in black and 2 in blue)

- USB battery charger, 1 unit

- Screwdriver, 1

- Demounting tool for propellers, 1

- User manual (in Japanese), 1

**<u>Current Operations</u>**

For the year ended October 31, 2022, the Company sold 1,164 units of small sized drones with 4K cameras named "Flylly" for total proceeds of JPY2,568,182 (approximately $20,160).

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[**Table of Contents**](#table)

<u>SUNVA: Solar panel cleaning robot</u>

The Company developed a solar panel cleaning robot named "SUNVA" and commenced marketing and sales efforts in 2021. The aggregate development cost was JPY45,646,500 (approximately $358,355).

*<u>Outside dimension</u>*

- 6m type: width 760mm, length 6,495mm and height 356mm (without washing machine)

- 4m type: width 760mm, length 4,460mm and height 356mm (without washing machine)

- Standard machine: width 972mm, length 1,140mm and height 400mm

*<u>Weight</u>*

- 6m type: 44.04kg(excluding washing machine, 4 batteries) 67.98kg(including washing machine, 4 batteries)

- 4m type: 34.60kg(excluding washing machine, 4 batteries) 60.34kg <u>(including washing machine, 4 batteries)</u>

- Standard machine: 21.03kg (excluding batteries) 60.34kg (including 2 batteries)

*<u>Wireless communication</u>*

Wireless standard: Conformable to Specification ARIB STD-T108 for specific small power wireless communication in 92MHz band

Frequency: Sub-Giga, 920 MHz band (920.6 - 923.4MHz, 15 channels)

*<u>Water sprinkling</u>*

7ℓ per minute: Depends on water head condition of pump/waterworks

*<u>Batteries</u>*

Rechargeable lithium battery (1 or 2 units of BL1850B, made by Makita Corporation)

*<u>Battery Life</u>*

Approximately 500 cycles of charge and discharge

*<u>Rated voltage</u>*

DC18V

*<u>Continuous availability time</u>*

6m standard type: Approximately 180 minutes (use BL1850B(18V/5Ah) batteries at the same time at air temperature of 25 degree Celsius/77 degree Fahrenheit)

4m standard type: Approximately 200 minutes (use BL1850B(18V/5Ah) batteries at the same time at air temperature of 25 degree Celsius/77 degree Fahrenheit)

**<u>Current Operations</u>**

For the year ended October 31, 2022, the Company sold 18 solar panel cleaning robots named "SOLAR SUNVA" for total proceeds of JPY19,975,815 (approximately $156,814).

**<u>META DIVER</u>**

META DIVER is an application for smartphones that provides user experience(s) with full-scale VR images. The purpose of the application is to provide 3D data such as historical heritage as VR video content.

The main function of the application is image reproductions of VR images and 360 degree images, with VR images of World Heritages, historical heritages, and natural heritage both in Japan and overseas as its contents. Currently, all content in the application is free of charge.

**ZEXABOX**

ZEXABOX is made pursuant to, what we believe to be, strict Japanese guidelines for quality. The device is a GPU Mining Rig, comprised of computer components, used to "mine" digital currency. In layman's terms, "mine" is defined as the process of solving complex math problems that verifying transaction(s) in the digital currency or blockchain, which, generally speaking, results in a predetermined amount of digital currency to be gained.

As of October 2022, the company offers for sale four types of Zexabox machines: PRO, MINI, ULTIMA, and DIV.

![](image_024.jpg)

**<u>Current Operations</u>**

For the year ended October 31, 2022, the Company sold 897 units of "ZEXABOX PRO", 620 units of "ZEXABOX MINI", 13 units of "ZEXXABOX ULTIMA" and 26,190 units of "ZEXABOX DIV", for a total amount of JPY1,900,241,017 (approximately $14,917,287).

**Future plans**

World Scan Project, Inc., as an industrial automation equipment manufacturer, plans to further develop and apply our technologies in designing/developing Web3 infrastructure <sup>note</sup>, IoT equipment and other related products, in addition to the robots and drones we have been offering to the market globally.

Note: Internally, we are discussing further plans to develop mining rigs, general purpose IoT equipment, and equipment for data centers. An example of general purpose IoT equipment is the digital currency mining rig, ZEXABOX DIV.

(1) To expand the revenues from Drone Net

It is our understanding that Drone Net has plans to increase its instructional programs, shops and racetracks. The Company expects to increase revenue according to the business expansion of Drone Net. At present, the exact amount that Drone Net will increase its orders in the future is speculative, and we will need to evaluate in greater detail as the scope of Drone Net's operations increases, if of course it does increase.

(2) To begin direct sales to consumers in Japan

The Company has tentative plans to evaluate the possibility of directly selling its products via web-based direct sales in Japan. It is possible that we may evaluate, and even begin to do so in 2023, but we do not currently have any definitive plans to do so at this point in time.

(3) To expand the sales volume for our digital currency mining rigs

The Company is planning to gain sales agents and agencies to expand the sales of its new product named XEXABOX series.

(4) To start selling products overseas, mainly in the USA

The Company has intentions to begin developing its own sales agencies, and at such time to begin to sell products through such agencies, overseas beginning, potentially, in 2023. These plans remain speculative in nature, however, in order to begin to progress these efforts, the Company entered into a consulting agreement with Pine Hill Productions, Inc., a New York corporation (Pine Hill") on March 3, 2020. Pine Hill shall support the Company to expand its business operations into the USA. The consulting fee due to Pine Hill is $3,000 per month.

(5) To develop new products

<u>The Company will develop core products other than drones and digital currency mining rigs.</u> 

(6) The Company also have tentative plans, which have not progressed beyond ideas at this point, to evaluate the possibility of working on developing an underwater drone and a hover bike (flying bike). We are exploring the feasibility of these endeavors, however, there is no guarantee that such plans will come to fruition.

(7) The Company studies the feasibility of solutions for data centers.

**Government Regulations in Japan**

Given that the entirety of our operations are conducted within Japan, and our customers reside in Japan, only the rules and regulations pertaining to Japan are presently applicable to the Company's operations relating to drones.

The Aviation Act prohibits flying drones over residential areas or areas surrounding an airport without permission from the Minister of Land, Infrastructure and Transportation. Flying drones during night time and during an event is also prohibited. In addition, drones no lighter than 200 grams in unrestricted areas across the country are required to stay below 150 meters (492 feet), and also be kept at least 30 meters (98 feet) from people, buildings, and vehicles.

Given that SkyFight-X is lighter than 200 grams, flying SkyFight-X's for the purposes of drone racing or participating in drone flying schools is not prohibited by any pertinent regulations in Japan. We are not subject to specific regulations pertaining to the manufacturing and design of the SkyFight-X at this time.

**PATENTS AND TRADEMARKS**

The following table includes our pending trademark applications.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Patent or Trademark | &nbsp;&nbsp;Application Number | &nbsp;&nbsp;Name | &nbsp;&nbsp;Applicant | &nbsp;&nbsp;Application date | &nbsp;&nbsp;Country | &nbsp;&nbsp;Record date |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-027977 | &nbsp;&nbsp;SKY PLATINUM | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;March 13, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;March 5, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;T-5259 | &nbsp;&nbsp;SKY PLATINUM | &nbsp;&nbsp;World Scan Project, Inc. | &nbsp;&nbsp;April 23, 2020 | &nbsp;&nbsp;USA | &nbsp;&nbsp;March 5, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-026589 | &nbsp;&nbsp;DRONE FITNESS | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;March 11, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;September 24, 2020 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-026590 | &nbsp;&nbsp;DRONE RACE CAFÉ | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;March 11, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;September 24, 2020 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-007786 | &nbsp;&nbsp;SOLAR SUNVA | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 23, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 9, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-045941 | &nbsp;&nbsp;SMART CITY SPRAY | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 24, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;April 7, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-045942 | &nbsp;&nbsp;SMART CITY MASK | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 24, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;April 7, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-061544 | &nbsp;&nbsp;SMART CITY FROZEN | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 24, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 9, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-061552 | &nbsp;&nbsp;TIME WARP DELI | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 24, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;May 29, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-064420 | &nbsp;&nbsp;DRONESOLOGY | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 24, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;December 4, 2020 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-069802 | &nbsp;&nbsp;DOKODEMO DOUJOKIN | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 5, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;March 5, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-099990 | &nbsp;&nbsp;SDGs DRONR | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;August 12, 2020 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-122283 | &nbsp;&nbsp;Droneglish | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;October 2, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;August 6, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-131464 | &nbsp;&nbsp;Dorograming | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;October 23, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;November 5, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-132407 | &nbsp;&nbsp;SKESELFEE | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;October 26, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;October 15, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-134225 | &nbsp;&nbsp;LSEEON CLOUD | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;October 29, 2020 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-140874 | &nbsp;&nbsp;MURAKUMO | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 13, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;October 8, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-145756 | &nbsp;&nbsp;3D DIVER | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 26, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;September 29, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-149888 | &nbsp;&nbsp;WSP / WORLD SCAN PROJECT | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;December 4, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;November 18, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2020-154653 | &nbsp;&nbsp;CARE CLOUD | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;December 15, 2020 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-033240 | &nbsp;&nbsp;FREAP | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;March 19, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; February 17,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-034167 | &nbsp;&nbsp;SKY DREAMER | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;March 22, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;October 29, 2021 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-053953 | &nbsp;&nbsp;FrozenMoment | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;April 30, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 31,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-054960 | &nbsp;&nbsp;SeaStreet | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;May 6, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 21,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-058360 | &nbsp;&nbsp;Intelligent village | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;May 13, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; February 17,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-072523 | &nbsp;&nbsp;Virtual Travel Exhibition | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 11, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 7,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-078943 | &nbsp;&nbsp;VIRTUAL STUDY TRAVEL | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 24, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 7,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-078965 | &nbsp;&nbsp;DIGITAL YOUHAI | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 24, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 7,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-079992 | &nbsp;&nbsp;DIGITAL CHIREKI | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 28, 2021 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-080084 | &nbsp;&nbsp;VR YOUHAI | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 28, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; January 21,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-087436 | &nbsp;&nbsp;Drone Adventure | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;July 13, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; March 18,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-087437 | &nbsp;&nbsp;DEEPSEACASK | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;July 13, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;March 8, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-111126 | &nbsp;&nbsp;Flylly | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;September 7, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp; February 17,<br> 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-133847 | &nbsp;&nbsp;Mature 20,000 Mile | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;October 27, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;June 1, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-136408 | &nbsp;&nbsp;Metatours | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 2, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;June 16, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2021-148950 | &nbsp;&nbsp;THE CASK | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 30, 2021 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;June 17, 2022 |
| &nbsp;&nbsp;Patent | &nbsp;&nbsp;2021-501939 | &nbsp;&nbsp; Unmanned flight equipment,<br> management equipment,<br> operating equipment,<br> and flight management methods | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;February 14, 2020 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 22, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-002586 | &nbsp;&nbsp;DIVERLAND | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 12, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 11, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-007645 | &nbsp;&nbsp;DIVERSMARKET | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 15, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 11, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-003119 | &nbsp;&nbsp;METAWHISKEY | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 13, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 8, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-004574 | &nbsp;&nbsp;METAPLAYER | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 18, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 8, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-004575 | &nbsp;&nbsp;METAPET | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;January 18, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 8, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-011861 | &nbsp;&nbsp;ZettaVerse | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;February 3, 2022 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-011865 | &nbsp;&nbsp;ZettaWorld | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;February 3, 2022 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-011870 | &nbsp;&nbsp;NFT NO MADOGUCHI | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;February 3, 2022 | &nbsp;&nbsp;Japan | &nbsp;&nbsp;July 20, 2022 |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-020572 | &nbsp;&nbsp;ZETTAGATE | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;February 24, 2022 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-062963 | &nbsp;&nbsp;SMART RC-X | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;June 2, 2022 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-125054 | &nbsp;&nbsp;ZEXA BOX | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 1, 2022 | &nbsp;&nbsp;Japan |  |
| &nbsp;&nbsp;Trademark | &nbsp;&nbsp;2022-128727 | &nbsp;&nbsp;DIVERMIST | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;November 10, 2022 | &nbsp;&nbsp;Japan |  |

---

**Employees**

As of the date of this Annual Report, the Company, and its subsidiary, collectively have a total of 12 full-time employees. We do not presently have pension, health, annuity, insurance, stock options, profit sharing, or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our officers/or directors and or employees.

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[**Table of Contents**](#table)

**Item 1A. Risk Factors.**

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information called for by this Item.

**Item 1B. Unresolved Staff Comments.**

None.

**Item 2. Properties.**

Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 162-0051, Japan.

The following table details the terms of the lease agreements for the various properties leased by the Company.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;Work space | &nbsp;&nbsp;Address | &nbsp;&nbsp;Lessee | &nbsp;&nbsp;Lessor | &nbsp;&nbsp;Monthly Rent | &nbsp;&nbsp;Date of Agreement | &nbsp;&nbsp;Term (Expiration of Lease) |
| &nbsp;&nbsp;Tokyo Office | &nbsp;&nbsp;2-18-23-2F, Nishiwaseda,<br> Shinjuku-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Make V Holdings Co., Ltd, | &nbsp;&nbsp;JPY 200,000<br> $1,569 | &nbsp;&nbsp;December 1, 2020 | &nbsp;&nbsp;December 31, 2023 |
| &nbsp;&nbsp;Tokyo Office | &nbsp;&nbsp;2-18-23-2F, Nishiwaseda,<br> Shinjuku-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Make V Holdings Co., Ltd, | &nbsp;&nbsp;JPY 200,000<br> $1,569 | &nbsp;&nbsp;December 1, 2020 | &nbsp;&nbsp;December 31, 2023 |
| &nbsp;&nbsp;Kojimachi Office | &nbsp;&nbsp;3-5-2-201, Kojimachi,<br> Chiyuda-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Kenedix Property Design Co., Ltd, | &nbsp;&nbsp;JPY 601,920<br> $4,725 | &nbsp;&nbsp;July 27,<br> 2021 | &nbsp;&nbsp;October 19, 2023 |
| &nbsp;&nbsp;Kojimachi Office | &nbsp;&nbsp;3-5-2-1112, Kojimachi,<br> Chiyuda-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Kenedix Property Design Co., Ltd, | &nbsp;&nbsp;JPY 581,058<br> $4,561 | &nbsp;&nbsp;July 1,<br> 2021 | &nbsp;&nbsp;September 30, 2023 |
| &nbsp;&nbsp;Kojimachi Office | &nbsp;&nbsp;3-5-2-601, Kojimachi,<br> Chiyuda-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Kenedix Property Design Co., Ltd, | &nbsp;&nbsp;JPY627,575<br> $4,926 | &nbsp;&nbsp;September 3, 2021 | &nbsp;&nbsp;December 2, 2023 |
| &nbsp;&nbsp;Kojimachi Office | &nbsp;&nbsp;3-5-2-1102, Kojimachi,<br> Chiyuda-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Kenedix Property Design Co., Ltd, | &nbsp;&nbsp;JPY 270,400<br> $2,122 | &nbsp;&nbsp;October 20, 2021 | &nbsp;&nbsp;January 19, 2024 |
| &nbsp;&nbsp;Kojimachi Office | &nbsp;&nbsp;3-5-2-201, Kojimachi,<br> Chiyuda-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Kenedix Property Design Co., Ltd, | &nbsp;&nbsp;JPY 325,325<br> $2,553 | &nbsp;&nbsp;February 1, 2022 | &nbsp;&nbsp;April 1, 2024 |
| &nbsp;&nbsp;Tenshodo | &nbsp;&nbsp;4-3-9 12fl.<br> Ginza, Chuo-ku, Tokyo, Japan | &nbsp;&nbsp;World Scan Project Corporation | &nbsp;&nbsp;Tenshodo Co. | &nbsp;&nbsp;JPY 1,050,000<br> $8,242 | &nbsp;&nbsp;November 19, 2021 | &nbsp;&nbsp;November 18, 2031 |

---

**Item 3. Legal Proceedings.**

From time to time, we may become party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not currently involved in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future.

**Item 4. Mine Safety Disclosures.**

Not applicable.

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**PART II**

**Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.**

**Market Information**

Our common stock is quoted on the Pink® Open Market, "OTC Pink", operated by OTC Markets Group. There is currently a limited trading market in the shares of our common stock.

**Holders**

As of the date of this report, and as of our fiscal year end, there are approximately 43 shareholders of record of our common stock and 10,647,350 shares of common stock issued and outstanding. As of the date of this report, and as of our fiscal year end, there is one shareholder of record of our Series A preferred stock and 10,000,000 shares of common stock issued and outstanding.

**Dividends and Share Repurchases**

We have not paid any dividends to our shareholder. There are no restrictions which would limit our ability to pay dividends on common equity or that are likely to do so in the future.

**Issuer Purchases of Equity Securities**

None.

**Equity Compensation Plan Information**

None.

**Recent Sales of Unregistered Securities; Uses of Proceeds from Registered Securities**

On October 25, 2019 the Company issued 10,000,000 shares of restricted Common Stock to Ryohei Uetaki for services rendered to the Company. Additionally, on the same day, it issued 10,000,000 shares of its restricted Series A Preferred Stock to Ryohei Uetaki, also for services rendered. The aforementioned shares of common and preferred stock were all issued at par value, $0.0001, for a total combined value of $2,000. No monies were exchanged per the issuances and the shares were all exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

**Uses of Proceeds from Registered Securities**

In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase, the price paid per share by each shareholder was approximately 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST.

These funds were and remain planned to be used for R&D, marketing and working capital.

**Item 6. Selected Financial Data.** 

No applicable because the Company is a smaller reporting company.

**Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

***Liquidity and Capital Resources***

As of October 31, 2022 and 2021, we had cash and cash equivalents in the amount of $5,836,065 and $2,583,218, respectively. The increase in cash is attributed to an increase in revenues. Currently, our cash balance is sufficient to fund our operations without the need for additional funding.

***Revenues***

We recorded revenue of $29,440,341 for the year ended October 31, 2022 as opposed to $11,813,816 for the year ended October 31, 2021.

***Net Income***

We recorded net income of $8,908,782 for the year ended October 31, 2022 and net income of $2,332,451 for the year ended October 31, 2021. The increase in net income is attributed to an increase in revenue from 2021 to 2022.

***Cash flow***

For the year ended October 31, 2022, we had cash flows from operations in the amount of $4,605,591. For the year ended October 31, 2021, we had cash flows from operations in the amount of $2,032,197. The increase in operating cash flow, in our opinion, is attributed to an increase in net income and an increase in deferred revenue.

For the year ended October 31, 2022, we had negative cash flows from investing activities in the amount of $227,180. For the year ended October 31, 2021, we had negative cash flows from investing activities in the amount of $187,123. The decrease in investing cash flow, in our opinion, is attributed to the purchase of furniture, fixtures and equipment.

For the year ended October 31, 2022, we had zero cash flows from financing activities. For the year ended October 31, 2021, we had cash flows from financing activities in the amount of $455. The decrease in financing cash flows, in our opinion, is attributed to the fact that we had proceeds from due to related party for the year ended October 31, 2021.

***Working Capital***

As of October 31, 2022 and 2021, we had working capital of $9,697,677 and $3,233,211, respectively.

***Going Concern***

The Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.

The Company demonstrates some positive trends, compared with the previous fiscal years, in our financial statements as in below:

As of October 31, 2022, the Company recorded cash and cash equivalents of $5,836,065, an increase of $3,252,847 when compared October 31, 2021 whereas the Company realized cash and cash equivalents of $2,583,218. The Company's major source of liquidity was derived from the sales of drones and digital currency mining rigs (cryptocurrency miners). As stated in the consolidated financial statements, the Company, for the year ended on October 31, 2022, recorded a net income of $8,908,782 (+282 % y-o-y) and earned $4,605,591 (+127 % y-o-y) in cash flows from operating activities.

Having reviewed the above, the Company realizes that whether we shall be able to continue demonstrating the positive trends demonstrated in our financial statements, lies in our ability to continue to generate revenue and increase revenue going forward. Principally, the Company's consolidated financial statements are based on going concern assumptions, which assume the realization of assets and offset of liabilities in the normal course of business. Based on this, the Company also recognizes that it is critical for us to continue to operate and/or perform our obligation(s) in the future and procure any required funds needed to meet the redemption of its debt during normal business operations.

Management has evaluated the estimated impact of COVID-19, which has become a significant factor impacting operations of businesses globally, one of which we believe we will need to continue to monitor as to the potential effects it may have on our own business.

The Company assessed the impact of COVID-19 and believes there to be minimal impact of COVID-19 on the Company's drone sales, which is currently the Company's primary source of revenue. The Company will need to continue to monitor COVID-19 and the effects it may have, socially and economically, as it is possible that such developments may in fact impact our operations going forward or more specifically, our sales results. At this time, the Company believes that it will not affect our assumptions as a going concern.

Based on the Company's evaluation, based on the positive financial trends it has experienced year over year e.g. increase in net income and increase in net cash provided by operating activities, management believes that it has completely mitigated the circumstances that led to a doubt with respect to the Company's ability to continue as a going concern, i.e. dependency on a single major customer, which existed at the time of the filing of the Company's prior year report.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

***Item 7A. Quantitative and Qualitative Disclosures about Market Risk.***

As a "smaller reporting company", we are not required to provide the information required by this Item.

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**Item 8. Financial Statements and Supplementary Data.**

**WORLD SCAN PROJECT, INC.**

**FINANCIAL STATEMENTS**

**INDEX TO FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | Pages |
| &nbsp;&nbsp;&nbsp;&nbsp;Report of Independent Registered Public Accounting Firm (PCAOB FIRM ID - 2738) | F2 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets | F3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Operations and Comprehensive Income | F4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Changes in Shareholders' Equity | F5 |
| &nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows | F6 |
| &nbsp;&nbsp;&nbsp;Notes to the Audited Consolidated Financial Statements | F7-F9 |

---

-F1-

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Shareholders of World Scan Project, Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of World Scan Project, Inc. (the Company) as of October 31, 2022 and 2021, and the related consolidated statements of operations and comprehensive income, changes in shareholders' equity, and cash flows for each of the years then ended and the related notes to the consolidated financial statements. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of October 31, 2022 and 2021, and the results of its operations and its cash flows for each of the years then ended in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

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

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

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

**Critical Audit Matters**

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

***Revenue Recognition***

As discussed in Note 2 to the financial statements, when another party is involved in providing goods or services to the Company's clients, a determination is made as to who is acting in the capacity as the principal in the sales transaction.

Auditing management's evaluation of agreements with customers involves significant judgment, given the fact that some agreements require management's evaluation of principal versus agent.

To evaluate the appropriateness and accuracy of the assessment by management, we evaluated management's assessment in relationship to the relevant agreements.

/s/ M&K CPAS, PLLC

We have served as the Company's auditor since 2020.

Houston, TX

February 10, 2023

-F2-

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**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED BALANCE SHEETS** 

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp; October 31, 2022 | &nbsp;&nbsp;October 31, 2021 |
| &nbsp;&nbsp;ASSETS |  |  |
| &nbsp;&nbsp;Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $&nbsp;&nbsp;5836065 | $&nbsp;&nbsp;2583218 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, trade | &nbsp;&nbsp;1847068 | &nbsp;&nbsp;4724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables, current | &nbsp;&nbsp;489 | &nbsp;&nbsp;16775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advance payments and prepaid expenses | &nbsp;&nbsp;16389562 | &nbsp;&nbsp;3035135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | &nbsp;&nbsp;403 | &nbsp;&nbsp;47994 |
| &nbsp;&nbsp;TOTAL CURRENT ASSETS | &nbsp;&nbsp;24073587 | &nbsp;&nbsp;5687846 |
| &nbsp;&nbsp;Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Furniture, fixtures and equipment, net | &nbsp;&nbsp;280024 | &nbsp;&nbsp;161390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease asset long term | &nbsp;&nbsp;705007 | &nbsp;&nbsp;406816 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term prepaid expenses and security deposits, net | &nbsp;&nbsp;112145 | &nbsp;&nbsp;230278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;307438 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets, non-current | &nbsp;&nbsp;19960 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;TOTAL NON-CURRENT ASSETS | &nbsp;&nbsp;1424574 | &nbsp;&nbsp;798484 |
| &nbsp;&nbsp;TOTAL ASSETS | $&nbsp;&nbsp;25498161 | $&nbsp;&nbsp;6486330 |
| &nbsp;&nbsp;LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| &nbsp;&nbsp;Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses and other payables | $&nbsp;&nbsp;2453668 | $&nbsp;&nbsp;261809 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable - related party | &nbsp;&nbsp;18517 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | &nbsp;&nbsp;3329572 | &nbsp;&nbsp;325693 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consumption tax payable | &nbsp;&nbsp;941483 | &nbsp;&nbsp;170294 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term lease liability | &nbsp;&nbsp;231041 | &nbsp;&nbsp;219892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | &nbsp;&nbsp;7401171 | &nbsp;&nbsp;1476492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related party | &nbsp;&nbsp;458 | &nbsp;&nbsp;455 |
| &nbsp;&nbsp;TOTAL CURRENT LIABILITIES | &nbsp;&nbsp;14375910 | &nbsp;&nbsp;2454635 |
| &nbsp;&nbsp;Non-Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability long term | &nbsp;&nbsp;520002 | &nbsp;&nbsp;219474 |
| &nbsp;&nbsp;TOTAL LIABILITIES | $&nbsp;&nbsp;14895912 | $&nbsp;&nbsp;2674109 |
| &nbsp;&nbsp;Shareholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock ($0.0001 par value, 200,000,000 shares authorized; 10,000,000 shares issued and outstanding as of October 31, 2022 and 2021) | $&nbsp;&nbsp;1000 | $&nbsp;&nbsp;1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock ($0.0001 par value, 200,000,000 shares authorized, 10,647,350 shares issued and outstanding as of October 31, 2022 and 2021) | &nbsp;&nbsp;1065 | &nbsp;&nbsp;1065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital | &nbsp;&nbsp;323990 | &nbsp;&nbsp;323990 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | &nbsp;&nbsp;12555142 | &nbsp;&nbsp;3646360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | &nbsp;&nbsp;(2278948) | &nbsp;&nbsp; (160194) |
| &nbsp;&nbsp;TOTAL SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;10602249 | $&nbsp;&nbsp;3812221 |
| &nbsp;&nbsp;TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $&nbsp;&nbsp;25498161 | $&nbsp;&nbsp;6486330 |
| &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. |

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-F3-

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**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME**

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;Year Ended | &nbsp;&nbsp;Year Ended |
|  | &nbsp;&nbsp;October 31, 2022 | &nbsp;&nbsp;October 31, 2021 |
| &nbsp;&nbsp;**Revenues** |  |  |
| &nbsp;&nbsp;Revenues | $&nbsp;&nbsp;14515175 | $&nbsp;&nbsp;11813816 |
| &nbsp;&nbsp;Revenues – related party | &nbsp;&nbsp;7879 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Revenues, net | &nbsp;&nbsp;14917287 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;**Total Revenues** | &nbsp;&nbsp;29440341 | &nbsp;&nbsp;11813816 |
| &nbsp;&nbsp;Cost of revenues | &nbsp;&nbsp;11319348 | &nbsp;&nbsp;5019811 |
| &nbsp;&nbsp;**Gross profit** | &nbsp;&nbsp;18120993 | &nbsp;&nbsp;6794005 |
| &nbsp;&nbsp;OPERATING EXPENSE |  |  |
| &nbsp;&nbsp;General and administrative expenses | &nbsp;&nbsp;4308251 | &nbsp;&nbsp;3462056 |
| &nbsp;&nbsp;Total operating Expenses | &nbsp;&nbsp;4308251 | &nbsp;&nbsp;3462056 |
| &nbsp;&nbsp;**Income from operations** | &nbsp;&nbsp;13812742 | &nbsp;&nbsp;3331840 |
| &nbsp;&nbsp;Other income (expense) |  |  |
| &nbsp;&nbsp;Other income | &nbsp;&nbsp;20918 | &nbsp;&nbsp;333843 |
| &nbsp;&nbsp;Interest Expense | &nbsp;&nbsp;- | &nbsp;&nbsp;(3) |
| &nbsp;&nbsp;Total other income (expense) | &nbsp;&nbsp;21918 | &nbsp;&nbsp;333840 |
| &nbsp;&nbsp;**Net income before tax** | &nbsp;&nbsp;13833660 | &nbsp;&nbsp;3665789 |
| &nbsp;&nbsp;Income tax expense | &nbsp;&nbsp;4924878 | &nbsp;&nbsp;1333338 |
| &nbsp;&nbsp;**NET INCOME (LOSS)** | $&nbsp;&nbsp;8908782 | $&nbsp;&nbsp;2332451 |
| &nbsp;&nbsp;OTHER COMPREHENSIVE INCOME (LOSS) |  |  |
| &nbsp;&nbsp;Foreign currency translation adjustment | $&nbsp;&nbsp;(2118754) | $&nbsp;&nbsp;(242488) |
| &nbsp;&nbsp;**TOTAL COMPREHENSIVE INCOME (LOSS)** | $&nbsp;&nbsp;6, 790028 | $&nbsp;&nbsp;2089963 |
| &nbsp;&nbsp;**Income per common share** |  |  |
| &nbsp;&nbsp;Basic | $&nbsp;&nbsp;0.84 | $&nbsp;&nbsp;0.22 |
| &nbsp;&nbsp;Diluted | $&nbsp;&nbsp;0.43 | $&nbsp;&nbsp;0.11 |
| &nbsp;&nbsp;**Weighted average common shares outstanding** |  |  |
| &nbsp;&nbsp;Basic | &nbsp;&nbsp;10647350 | &nbsp;&nbsp;10647350 |
| &nbsp;&nbsp;Diluted | &nbsp;&nbsp;20647350 | &nbsp;&nbsp;20647350 |
| &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. |

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**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;PREFERRED STOCK | &nbsp;&nbsp;COMMON STOCK | &nbsp;&nbsp;COMMON STOCK | | | | |
|  | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | &nbsp;&nbsp;NUMBER | &nbsp;&nbsp;AMOUNT | <br>&nbsp;&nbsp;ADDITIONAL<br>&nbsp;&nbsp;PAID IN<br>&nbsp;&nbsp;CAPITAL | &nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;OTHER<br>&nbsp;&nbsp;COMPREHENSIVE<br>&nbsp;&nbsp;INCOME (LOSS) | <br>&nbsp;&nbsp;ACCUMULATED<br>&nbsp;&nbsp;EARNINGS<br>&nbsp;&nbsp;(DEFICIT) | <br>&nbsp;&nbsp;TOTAL<br>&nbsp;&nbsp;EQUITY<br>&nbsp;&nbsp;(DEFICIT) |
| &nbsp;&nbsp;Balance - October 31, 2020 | &nbsp;&nbsp;10000000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;10647350 | $&nbsp;&nbsp;1065 | $&nbsp;&nbsp;323987 | $&nbsp;&nbsp;82294 | $&nbsp;&nbsp;1313909 | $&nbsp;&nbsp;1722255 |
| &nbsp;&nbsp;Net income | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;2332451 | &nbsp;&nbsp;2332451 |
| &nbsp;&nbsp;Imputed interest | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3 | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Foreign currency translation | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(242488) | &nbsp;&nbsp;- | &nbsp;&nbsp;(242488) |
| &nbsp;&nbsp;Balance - October 31, 2021 | &nbsp;&nbsp;10000000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;10647350 | $&nbsp;&nbsp;1065 | $&nbsp;&nbsp;323990 | $&nbsp;&nbsp;(160194) | $&nbsp;&nbsp;3646360 | $&nbsp;&nbsp;3812221 |
| &nbsp;&nbsp;Net income | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;8908782 | &nbsp;&nbsp;8908782 |
| &nbsp;&nbsp;Foreign currency translation | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;- | &nbsp;&nbsp;(2118754) | &nbsp;&nbsp;- | &nbsp;&nbsp;(2118754) |
| &nbsp;&nbsp;Balance - October 31, 2022 | &nbsp;&nbsp;10000000 | $&nbsp;&nbsp;1000 | &nbsp;&nbsp;10647350 | $&nbsp;&nbsp;1065 | $&nbsp;&nbsp;323990 | $&nbsp;&nbsp;(2278948) | $&nbsp;&nbsp;12555142 | $&nbsp;&nbsp;10602249 |
| &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. |

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**WORLD SCAN PROJECT, INC.**

**CONSOLIDATED STATEMENT OF CASH FLOWS** 

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| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;Year Ended<br>&nbsp;&nbsp;October 31, 2022 | &nbsp;&nbsp;Year Ended<br>&nbsp;&nbsp;October 31, 2021 |
| &nbsp;&nbsp;CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| &nbsp;&nbsp;Net income | $&nbsp;&nbsp;8908782 | $&nbsp;&nbsp;2332451 |
| &nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;Depreciation and amortization | &nbsp;&nbsp;146437 | &nbsp;&nbsp;16136 |
| &nbsp;&nbsp;Imputed interest | &nbsp;&nbsp;- | &nbsp;&nbsp;3 |
| &nbsp;&nbsp;Lease expense | &nbsp;&nbsp;311951 | &nbsp;&nbsp;99850 |
| &nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;Accounts receivable | &nbsp;&nbsp;(2145524) | &nbsp;&nbsp;845298 |
| &nbsp;&nbsp;Advance payments and other prepaid expense | &nbsp;&nbsp;(16413398) | &nbsp;&nbsp;(2626641) |
| &nbsp;&nbsp;Inventories | &nbsp;&nbsp;42482 | &nbsp;&nbsp;(42282) |
| &nbsp;&nbsp;Other receivables | &nbsp;&nbsp;14443 | &nbsp;&nbsp;(17772) |
| &nbsp;&nbsp;Other current assets | &nbsp;&nbsp;(41345) | &nbsp;&nbsp;(211855) |
| &nbsp;&nbsp;Deferred tax assets | &nbsp;&nbsp;(357819) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Accrued expenses and other payables | &nbsp;&nbsp;2642891 | &nbsp;&nbsp;140056 |
| &nbsp;&nbsp;Software | &nbsp;&nbsp;(24602) | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Other current liabilities | &nbsp;&nbsp;- | &nbsp;&nbsp;(12751) |
| &nbsp;&nbsp;Income tax payable | &nbsp;&nbsp;3583726 | &nbsp;&nbsp;(149234) |
| &nbsp;&nbsp;Consumption tax payable | &nbsp;&nbsp;943365 | &nbsp;&nbsp;161944 |
| &nbsp;&nbsp;Deferred revenue | &nbsp;&nbsp;7292667 | &nbsp;&nbsp;1564294 |
| &nbsp;&nbsp;ROU asset/liability | &nbsp;&nbsp;(298465) | &nbsp;&nbsp;(67300) |
| &nbsp;&nbsp;Net cash provided by operating activities | &nbsp;&nbsp;4605591 | &nbsp;&nbsp;2032197 |
| &nbsp;&nbsp;CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp; Cash paid for purchase of fixed assets | &nbsp;&nbsp;(227180) | &nbsp;&nbsp;(187123) |
| &nbsp;&nbsp; Net cash used in investing activities | &nbsp;&nbsp;(227180) | &nbsp;&nbsp;(187123) |
| &nbsp;&nbsp;CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;Proceeds from due to related party | &nbsp;&nbsp;- | &nbsp;&nbsp;455 |
| &nbsp;&nbsp;Net cash provided by (used in) financing activities | &nbsp;&nbsp;- | &nbsp;&nbsp;455 |
| &nbsp;&nbsp;Net effect of exchange rate changes on cash | $&nbsp;&nbsp;(1125564) | $&nbsp;&nbsp;(236917) |
| &nbsp;&nbsp;Net Change in Cash and Cash Equivalents | &nbsp;&nbsp;3252847 | &nbsp;&nbsp;1608612 |
| &nbsp;&nbsp;Cash and cash equivalents - beginning of period | &nbsp;&nbsp;2583218 | &nbsp;&nbsp;974606 |
| &nbsp;&nbsp;Cash and cash equivalents - end of period | $&nbsp;&nbsp;5836065 | $&nbsp;&nbsp;2583218 |
| &nbsp;&nbsp;SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | &nbsp;&nbsp;SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |  |
| &nbsp;&nbsp;Interest paid | $&nbsp;&nbsp;- | $&nbsp;&nbsp;- |
| &nbsp;&nbsp;Income taxes paid | $&nbsp;&nbsp;1695213 | $&nbsp;&nbsp;1333338 |
| &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS | &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS | &nbsp;&nbsp;NON-CASH INVESTING AND FINANCING TRANSACTIONS |
| &nbsp;&nbsp;ROU Asset/Liability | $&nbsp;&nbsp;1269132 | $&nbsp;&nbsp;555942 |
| &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. | &nbsp;&nbsp;The accompanying notes are an integral part of these audited financial statements. |

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&nbsp;&nbsp;&nbsp;&nbsp;**NOTES TO THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**OCTOBER 31, 2022**

**NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS**

World Scan Project, Inc., a Delaware corporation ("the Company") was incorporated under the laws of the State of Delaware on October 25, 2019.

On October 25, 2019, Ryohei Uetaki, our officer and director, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company, in exchange for 10,000,000 shares of Common Stock, par value $0.0001 per share and 10,000,000 shares of Series A Preferred stock, par value $0.0001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act. The value of the stock provided to Mr. Uetaki, based on the par value of $.0001 per share of common stock and Series A Preferred Stock, is valued at $2,000.

On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer.

On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer.

On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation ("WSP Japan"), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan's common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition.

WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company's primary business is focused on developing and manufacturing of autonomous aerial vehicles including drones.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

In September, 2020, the Company entered into subscription agreements with 41 shareholders. Pursuant to these agreements, the Company issued 647,350 shares of common stock in total to these shareholders and received $323,675 as aggregate consideration. At the time of purchase the price paid per share by each shareholder was the equivalent of about 0.50 USD.

These shares were sold pursuant to the Company's effective S-1 Registration Statement deemed effective on August 28, 2020 at 4pm EST.

We operate through our wholly owned subsidiary, World Scan Project Corporation, a Japanese Company. We are a start-up stage company currently focused on developing, designing and selling small sized drones which may be used for a variety of purposes.

Our principal executive offices are located at 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 169-0051, Japan.

The Company has elected October 31<sup>st</sup> as its year end.

**NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**&nbsp;&nbsp;&nbsp;&nbsp;

**Principles of Consolidations**

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, World Scan Project Corporation, whose registered address is 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 162-0051, Japan. All significant intercompany accounts and transactions have been eliminated.

**Basis of Presentation**

This summary of significant accounting policies is presented to assist in understanding the Company's financial statements. These accounting policies conform to accounting principles, generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.

**Reclassification** 

Certain amounts in the prior period have been reclassified to conform to the current period presentation.

**Use of Estimates**

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In the opinion of management, all adjustments necessary in order to make the financial statements not misleading have been included. Actual results could differ from those estimates.

**Advertising and Promotion**

All advertising, promotion and marketing expenses, including commissions, are expensed when incurred.

**Leases**

The Company capitalizes all leased assets pursuant to ASU 2016-02, *Leases (Topic 842)* ("Topic 842"), which requires lessees to recognize right-of-use ("ROU") assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. The Company excludes short-term leases having initial terms of 12 months or less from Topic 842 as an accounting policy election and recognizes rent expense on a straight-line basis over the lease term.

**Related party transaction** 

A related party is generally defined as (i) any person that holds 10% or more of the Company's securities and their immediate families, (ii) the Company's management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. The Company conducts business with its related parties in the ordinary course of business.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

**Cash and Cash Equivalents**

The Company considers all highly liquid investments with an original maturity of six months or less when purchased to be cash equivalents.

**Accounts Receivable and Credit Policies**

Accounts receivable are recognized and carried at the original invoice amount less allowance for any uncollectible amounts. An estimate for doubtful accounts is made when collection of the full amount is no longer probable. Bad debts are written off as incurred. If there is a claim for a defect of product within four days after arrival of goods, the Company shall accept a goods return.

**Advance payments and prepaid expenses**

Advance payments and prepaid expenses are cash paid amounts that represent costs incurred from which a service or benefit is expected to be derived in the future.

**Inventory** 

Inventories, consisting of products available for sale, are primarily accounted for using the first-in, first-out ("FIFO") method, and are valued at the lower of cost or market value. This valuation requires the Company to make judgments, based on currently-available information, about the likely method of disposition, such as through sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category.

**Fixed assets and depreciation**

Property, plant and equipment are stated at cost less depreciation and impairment loss. The initial cost of the assets comprises its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. Depreciation is calculated using the straight-line method over the shorter of the estimated useful life of the respective assets as follows: computer software developed or acquired for internal use, 2 to 5 years; computer equipment, 2 to 5 years; buildings and improvements, 5 to 15 years; leasehold improvements, 2 to 10 years; and furniture and equipment, 1 to 5 years.

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**Foreign currency translation** 

The Company maintains its books and records in its local currency, Japanese YEN ("JPY"), which is a functional currency as being the primary currency of the economic environment in which its operation is conducted. Transactions denominated in currencies other than the functional currency are translated into the functional currency at the exchange rates prevailing at the dates of the transaction. Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency using the applicable exchange rates at the balance sheet dates. The resulting exchange differences are recorded in the statements of operations.

The reporting currency of the Company is the United States Dollars ("US$") and the accompanying consolidated financial statements have been expressed in US$. In accordance with ASC Topic 830-30, "Translation of Financial Statement", assets and liabilities of the Company whose functional currency is not US$ are translated into US$, using the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates prevailing during the period. The gains and losses resulting from translation of financial statements are recorded as a separate component of accumulated other comprehensive income within the statements of shareholders' equity.

Translation of amounts from the local currency of the Company into US$1 has been made at the following exchange rates:

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| | |
|:---|:---|
|  | October 31, 2022 |
| Current JPY: US$1 exchange rate | 148.26 |
| Average JPY: US$1 exchange rate | 127.39 |

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**Comprehensive income or loss**

ASC Topic 220, "Comprehensive Income", establishes standards for reporting and display of comprehensive income or loss, its components and accumulated balances. Comprehensive income or loss as defined includes all changes in equity during a period from non-owner sources. Accumulated comprehensive income, as presented in the accompanying consolidated statements of shareholders' equity consists of changes in unrealized gains and losses on foreign currency translation.

**Revenue recognition**

The Company adopted ASC 606 – Revenue from contracts with Customers: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.

Revenue amount represents the invoiced value, net of a value-added tax ("Consumption Tax") and applicable local government levies. The Consumption Tax on sales is calculated at 10% of gross sales. The Company is subject to consumption taxes in Japan for the year ended October 31, 2022. For the year ended October 31, 2021, a consumption tax refund of $330,694 was recorded in Other income due to a tax exemption.

The following table summarizes our revenue recognized under ASC 606 in our consolidated statements of operations:

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| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Year Ended** | &nbsp;&nbsp;**Year Ended** | &nbsp;&nbsp;**Year Ended** |
|  | &nbsp;&nbsp;**October 31,** | &nbsp;&nbsp;**October 31,** | &nbsp;&nbsp;**October 31,** |
|  | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2022** | &nbsp;&nbsp;**2021** |
| &nbsp;&nbsp;**Revenues** |  |  |  |
| &nbsp;&nbsp;Product sales | &nbsp;&nbsp;$ | $&nbsp;&nbsp;14043637 | $&nbsp;&nbsp;11637104 |
| &nbsp;&nbsp;Product sales – related party |  | &nbsp;&nbsp;7879 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Crypto miners sales, net |  | &nbsp;&nbsp;14917287 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Program for educational institution |  | &nbsp;&nbsp;33541 | &nbsp;&nbsp;38606 |
| &nbsp;&nbsp;Other |  | &nbsp;&nbsp;437997 | &nbsp;&nbsp;138106 |
| &nbsp;&nbsp;Total Revenue Under ASC 606 |  | &nbsp;&nbsp;29440341 | &nbsp;&nbsp;11813816 |
| &nbsp;&nbsp;Total Revenue Under ASC 606 | &nbsp;&nbsp;$ | $&nbsp;&nbsp;29440341 | $&nbsp;&nbsp;11813816 |

---

*<u>Revenue from product sales</u>*

Revenue for products is recognized when the products are delivered to the customer and the customer completes the product inspection. Cash receipts for undelivered products are recorded as deferred revenues. As of October 31, 2022, the Company no deferred revenues related to product sales.

*<u>Revenue – related party</u>*

During the year ended October 31, 2022, revenue totaling approximately $7,879 was recognized from sales to related party ZEXAVERSE Corporation (hereinafter referred to as "ZEXAVERSE"). ZEXAVERSE is considered as a related party due to the fact that Ryohei Uetaki, CEO of the Company, controls the said company. The terms and conditions applied to the above transactions were the same as those applied to sales to customers not related to the Company.

*<u>Revenue from crypto miners sales</u>*&nbsp;&nbsp;&nbsp;&nbsp;

 

During the year ended October 31, 2022, the Company acted as an agent in facilitating the sales of crypto miners, produced by a third-party manufacturer, to customers of the Company. Revenue for the sale of crypto miners was recognized when the miners were delivered to the customers and the customers completed the inspection of the miners. Management assessed the Company's contracts with the third-party manufacturer and customers in consideration of ASC 606, "Revenue from Contracts with Customers", and determined the Company as the agent in said transactions. As such, the company recognized crypto miner sales net of costs. For the year ended October 31, 2022, Cost of goods sold for minor purchases, netted by the gross sales was $35,580,995. $7,401,171 of deferred revenues are related to deposits for crypto miners.

*<u>Revenue from educational institution program</u>*

 

Revenue for educational institution fees is recognized when the services are provided to the customer. Cash receipts for undelivered products are recorded as deferred revenues. As of October 31, 2022, the Company had no deferred revenues related to the educational institution program.

**Income Taxes**

The Company accounts for income taxes under ASC 740, "*Income Taxes*." Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

**Basic Earnings (Loss) Per Share**

The Company computes basic and diluted earnings (loss) per share in accordance with ASC Topic 260, *Earnings per Share*. Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reporting period. Diluted earnings (loss) per share reflects the potential dilution that could occur if stock options and other commitments to issue common stock were exercised or equity awards vest resulting in the issuance of common stock that could share in the earnings of the Company. Each shareholder of Series A Preferred Stock may convert their shares at the option of the holder thereof into an equal amount of shares of any other class or series of the Company's stock on a one to one basis, therefore the Company computes diluted earnings (loss) per shares by dividing net income (loss) by the sum of the total of weighted average number of common shares and total preferred shares outstanding.

Basic and diluted earnings per share are as follows:

---

| | | |
|:---|:---|:---|
|  | October 31, | October 31, |
|  | 2022 | 2021 |
| Basic earnings per share | $.84 | $.22 |
| Diluted earnings per share | $.43 | $.11 |

---

**Fair Value of Financial Instruments**

The Company's balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820, *Fair Value Measurements and Disclosures*, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

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

- Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

- Level 3 – Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of October 31, 2022. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. As of October 31, 2022 and October 31, 2021, the Company had no financial instruments.

**Recently Issued Accounting Pronouncements**

The Company does not believe that any recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

**Concentration of Purchases**

Net purchase from suppliers accounting for 10% or more of total purchases are as follows:

For the year ended October 31, 2022, 51.81% of the inventories were purchased from G-Force in the amount of $5,864,586 and 24.95% of the inventories were purchased from DN Branch in the amount of $2,823,899.

For the year ended October 31, 2021, 90.6% of the inventories were purchased from G-Force in the amount of $4,545,382.

**Concentration of Revenues**&nbsp;&nbsp;&nbsp;&nbsp;

Gross revenues from customers accounting for 10% or more of total revenues are as follows:

For the year ended October 31, 2022, 48.31% of total revenue was generated from Drone Net in the amount of $14,221,414.

For the year ended October 31, 2021, 98.95% of total revenue was generated from Drone Net in the amount of $11,690,057.

-F8-

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[**Table of Contents**](#table)

**NOTE 3 - GOING CONCERN**

The Company's financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.

The Company demonstrates some positive trends, compared with the previous fiscal years, in our financial statements as in below:

As of October 31, 2022, the Company recorded cash and cash equivalents of $5,836,065, an increase of $3,252,847 compared to $2,583,218 in the prior year ended October 31, 2021, and the Company's major sources of liquidity derived from the sales of drones and crypto miners. As stated in the consolidated financial statements, the Company, for the year ended on October 31, 2022, recorded a net income of $8,908,782 (+282% y-o-y) and earned $4,605,591 (+127% y-o-y) in cash flows from operating activities.

Having reviewed the above, the Company realizes that whether we shall be able to continue demonstrating the positive trends demonstrated in our financial statements, lies in our ability to continue to generate revenue and increase revenue going forward. Principally, the Company's consolidated financial statements are based on going concern assumptions, which assume the realization of assets and offset of liabilities in the normal course of business. Based on this, the Company also recognizes that it is critical for us to continue to operate and/or perform our obligation(s) in the future and procure any required funds needed to meet the redemption of its debt during normal business operations.

Management has evaluated the estimated impact of COVID-19, which has become a significant factor impacting operations of businesses globally, one of which we believe we will need to continue to monitor as to the potential effects it may have on our own business.

The Company assessed the impact of COVID-19 and believes there to be minimal impact of COVID-19 on the Company's drone sales, which is currently the Company's primary source of revenue. The Company will need to continue to monitor COVID-19 and the effects it may have, socially and economically, as it is possible that such developments may in fact impact our operations going forward or more specifically, our sales results. At this time, the Company believes that it will not affect our assumptions as a going concern.

Based on the Company's evaluation, based on the positive financial trends it has experienced year over year e.g. increase in net income and increase in net cash provided by operating activities, management believes that it has completely mitigated the circumstances that led to a doubt with respect to the Company's ability to continue as a going concern, i.e. dependency on a single major customer, which existed at the time of the filing of the Company's prior year report.

The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event that the Company cannot continue as a going concern.

**NOTE 4 - ACCOUNTS RECEIVABLE**

Accounts receivable from customers totaled $1,847,068 as of October 31, 2022 and $4,724 as of October 31, 2021. No bad debt allowance was provided as of October 31, 2022 and 2021 respectively.

**Concentration of Accounts Receivable**

Accounts receivable from customers accounting for 10% or more of total accounts receivable are as follows:

For the year ended October 31, 2022, 77.36% of total accounts receivable was owed to the Company by Drone Net in the amount of $1,428,976 and 15.36% of total accounts receivable was owed to the Company by Chabi land in the amount of $283,792.

**NOTE 5 - ADVANCE PAYMENTS AND PREPAID EXPENSES**

Advance payments are comprised of the payments for the undelivered products and other deliverables. As of October 31, 2022 and October 31, 2021, the Company had advance payments and other prepaid expenses of $16,389,562 and $3,035,135, respectively. Details of the advance payments as of October 31, 2022 and October 31, 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;October 31, 2022 | &nbsp;&nbsp;October 31, 2021 |
| &nbsp;&nbsp;Purchase of products from G-Force Inc. | $&nbsp;&nbsp;101158 | $&nbsp;&nbsp;2343700 |
| &nbsp;&nbsp;Purchase of products from Radio Maker | &nbsp;&nbsp;- | &nbsp;&nbsp;325441 |
| &nbsp;&nbsp;Purchase of products from Solar Samba | &nbsp;&nbsp;- | &nbsp;&nbsp;119395 |
| &nbsp;&nbsp;Purchase of parts from Bluish Co., Ltd | &nbsp;&nbsp;- | &nbsp;&nbsp;21360 |
| &nbsp;&nbsp;Purchase of parts from Team M | &nbsp;&nbsp;37097 | &nbsp;&nbsp;48246 |
| &nbsp;&nbsp;Purchase of parts from Wise Partners Co., Ltd | &nbsp;&nbsp;228785 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Purchase of parts from Rogyx Co., Ltd | &nbsp;&nbsp;31161 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Purchase of cryptocurrency miners from Cellessence Corp. | &nbsp;&nbsp;15915311 | &nbsp;&nbsp;- |
| &nbsp;&nbsp;Other advances and prepaid expenses | &nbsp;&nbsp;76050 | &nbsp;&nbsp;176993 |
| &nbsp;&nbsp;Totals | $&nbsp;&nbsp;16389562 | $&nbsp;&nbsp;3035135 |

---

**NOTE 6 - FIXED ASSETS**

The company recognizes purchased assets with a useful life longer than one year as fixed or non-current assets. These assets are depreciated using the straight-line method of depreciation over the estimated useful life of the assets.

During the year ended October 31, 2022, the Company purchased long-term assets, including building renovations, totaling approximately $227,180. The Company is depreciating these assets over a 5-10 year period once they were put into use. Depreciation expense for the year ended October 31, 2022 was approximately $50,535.

During the year ended October 31, 2021, the Company purchased long-term assets, including a 360 laser scanner, and various tools, furniture and fixtures, totaling approximately $177,526. The Company is depreciating these assets over a five year period once they have been put into use. Depreciation expense for the year ended October 31, 2021 was approximately $16,136.

**NOTE 7 - DEFERRED REVENUE**&nbsp;&nbsp;&nbsp;&nbsp;

Deferred revenue is the amount the Company received in advance from the customer for their orders placed with us. As of October 31, 2022 deferred revenue in the amount of $7,401,171 was related to our sales of cryptocurrency miners which represents a large amount in both number of transactions and values. As of October 31, 2021, deferred revenue in the amount of $1,476,492 was related to our sales of drones.

**NOTE 8 - INCOME TAXES**

For the years ended October 31, 2022 and 2021, the Company had income tax expense in the amount of $4,924,878 and $1,333,338, respectively.

United States

The Company was incorporated under the laws of the State of Delaware on October 25, 2019. The U.S. federal income tax rate is 21%.

Japan

The Company conducts its major businesses in Japan through WSP Japan and is subject to tax in this jurisdiction. As a result of its business activities, the Company files tax returns that are subject to examination by the local tax authority.

The Company is subject to a number of income taxes, which, in aggregate, represent a statutory tax rate approximately as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;Company's assessable profit | &nbsp;&nbsp;Company's assessable profit | &nbsp;&nbsp;Company's assessable profit |
| &nbsp;&nbsp;For the year ended October 31, | &nbsp;&nbsp;Up to JPY 4 million | &nbsp;&nbsp;Up to JPY 8 million | &nbsp;&nbsp;Over JPY 8 million |
| &nbsp;&nbsp;2022 | &nbsp;&nbsp;22.9% | &nbsp;&nbsp;25.37% | &nbsp;&nbsp;37.59% |

---

As of October 31, 2022 and October 31, 2021, the Company had income tax payable of $3,329,572 and $325,693, respectively.

For the years ended December 31, 2022 and 2021, the Company's income tax expenses are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Current | $5282697 | $1333338 |
| Deferred | (357819) | - |
| Total | $4924878 | $1333338 |

---

A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of operations to the Japanese statutory tax rate for the years ended December 31, 2022 and 2021 is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Japanese statutory tax rate | 34.59% | 34.59% |
| Change in valuation allowance | 1.01% | 1.78% |
| Effective tax rate | 35.60% | 36.37% |

---

The tax effects of temporary differences that give rise to the deferred tax assets at December 31, 2022 and 2021 are presented below:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Deferred tax assets |  |  |
| Business tax payable | $307438 | $34744 |
| Other | 82991 | 9016 |
| Subtotal | 390429 | 43760 |
| Less valuation allowance | (82991) | (43760) |
| Total deferred tax assets | $307438 | $- |

---

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. The Company regularly assesses the ability to realize its deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. The Company weighs all available positive and negative evidence, including its earnings history and results of recent operations, projected future taxable income, and tax planning strategies.

The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as the Company's projections for growth. The adjustments of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is adjusted. For the year ended October 31, 2021, a full valuation allowance was provided. For the year ended October 31, 2022, certain valuation allowance was released for WSP Japan considering the collectability of deferred tax assets.

**NOTE 9 - SHAREHOLDERS' EQUITY**

***Preferred Stock***

The authorized preferred stock of the Company consists of 200,000,000 shares with a par value of $0.0001. The authorized Series A Preferred Stock of the Company consists of 100,000,000. There were 10,000,000 shares of Series A Preferred Stock issued and outstanding as of October 31, 2022 and October 31, 2021.

The rights, preferences, privileges, restrictions and other matters relating to the Series A Preferred Stock are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each share of Series A Preferred Stock shall have no voting rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each shareholder of Series A Preferred Stock may convert their shares at the option of the holder thereof into an equal amount of shares of any other class or series of the Company's stock on a one to one basis.

***Common Stock***

The authorized common stock of the Company consists of 200,000,000 shares with a par value of $0.0001. There were 10,647,350 shares of common stock issued and outstanding as of October 31, 2022 and October 31, 2021.

**NOTE 10 - RELATED-PARTY TRANSACTIONS**&nbsp;&nbsp;&nbsp;&nbsp;

***Revenue***

 ****

During the year ended October 31, 2022, revenue totaling $7,879 was recognized from sales to related party ZEXAVERSE. The said company is considered as a related party due to the fact that Ryohei Uetaki, CEO of the Company, controls the said company.

The terms and conditions applied to the above transactions were the same as those applied to sales to customers not related to the Company.

 

***Loan to the Company***

 ****

As of October 31, 2022, our CEO and Director, Ryohei Uetaki, has advanced to the Company $18,517 for salary and $458 for expenses. This advance is considered as a loan to the Company which is unsecured, noninterest-bearing and payable on demand.

***Transfer of assets to ZEXAVERSE***

 ****

Aiming to establish a new revenue source, the Company planned to enter a new business, create avatars which offer exploring opportunities in metaverse. Found less feasible to realize reasonable revenue, the Company gave up the idea and related assets were transferred to ZEXAVERSE before the Company put those in service.

For the said transaction, the Company and ZEXAVERSE entered into a memorandum on July 1, 2022 and assets were all transferred to ZEXAVERSE on July 15, 2022. However, the Company was the contracting party with the vendors in sourcing assets for the new business, the Company invoiced the sum of contract value with vendors to ZEXAVERSE upon the said transfer and booked the said amount as other receivables – related party, a total of $727,911. The amount we disbursed to the vendors and the amount the company invoiced to ZEXAVERSE, which was paid by October 31, 2022, are the same amount. There is no revenue/loss, inventory, cost of goods sold occurred or recorded as an asset to the Company in relation to this transaction.

***Sales activities with ZEXAVERSE***

During the year ended October 31, 2022, the Company sold goggles ($7,879 in total) to ZEXAVERSE. The terms of conditions applied to the said transactions were the same conditions the Company applies to the non-Related Party clients, and the Company did not give any advantages to ZEXAVERSE.

Account receivables and sales relevant to the said transactions are presented in the Consolidated Balance Sheets and Consolidated Statements of Operations and Comprehensive Income hereinabove.

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

**NOTE 11 - LEASE ASSETS AND LIABILITIES**

Our adoption of ASU 2016-02, Leases (Topic 842), and subsequent ASUs related to Topic 842, requires us to recognize substantially all leases on the balance sheet as an ROU asset and a corresponding lease liability. The new guidance also requires additional disclosures as detailed below. We adopted this standard on the effective date of November 1, 2020 and used this effective date as the date of initial application. Under this application method, we were not required to restate prior period financial information or provide Topic 842 disclosures for prior periods. We elected the 'package of practical expedients,' which permitted us to not reassess our prior conclusions related to lease identification, lease classification, and initial direct costs, and we did not elect the use of hindsight.

We determine if a contract is a lease at the inception of the arrangement. We review all options to extend, terminate, or purchase the ROU assets, and when reasonably certain to exercise, we include the option in the determination of the lease term and lease liability. We have six operating leases related to our office space in Tokyo with remaining lease terms of 1 to 3 years. We recognized $311,951 and $99,850 in operating lease costs for the years ended October 31, 2022 and October 31, 2021, respectively.

Lease ROU assets and liabilities are recognized at commencement date of the lease, based on the present value of lease payments over the lease term. The lease ROU asset also includes any lease payments made and excludes any lease incentives. When readily determinable, we use the implicit rate in determining the present value of lease payments. When leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date, including the lease term.

The tables below present financial information associated with our leases. As noted above, we adopted Topic 842 using a transition method that does not require application to periods prior to adoption.

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;**Balance Sheet Classification** | &nbsp;&nbsp;**October 31, 2022** | &nbsp;&nbsp;**October 31, 2021** |
| &nbsp;&nbsp;Right-of-use assets | &nbsp;&nbsp;Lease asset long | $&nbsp;&nbsp;705007 | $&nbsp;&nbsp;406816 |
| &nbsp;&nbsp;**Current lease liabilities** | &nbsp;&nbsp;Short-term lease liability | &nbsp;&nbsp;231041 | &nbsp;&nbsp;219892 |
| &nbsp;&nbsp;Non-current lease liabilities | &nbsp;&nbsp;Lease liability long term | &nbsp;&nbsp;520002 | &nbsp;&nbsp;219474 |
| &nbsp;&nbsp;**Maturities of lease liabilities as of October 31, 2022 are as follows:** |  |  |  |
| &nbsp;&nbsp;2023 | &nbsp;&nbsp;231041 |  |  |
| &nbsp;&nbsp;2024 | &nbsp;&nbsp;69464 |  |  |
| &nbsp;&nbsp;2025 | &nbsp;&nbsp;52120 |  |  |
| &nbsp;&nbsp;2026 and beyond | &nbsp;&nbsp;398418 |  |  |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;751043 |  |  |
| &nbsp;&nbsp;Add(Less): Imputed interest | &nbsp;&nbsp;(232304) |  |  |
| &nbsp;&nbsp;Present value of lease liabilities | &nbsp;&nbsp;518739 |  |  |

---

**NOTE 12 - ACCRUED EXPENSES AND OTHER PAYABLES**

Accrued expenses and other payables are comprised of trade accounts payable, accrued payroll tax liabilities and accrued expenses As of October 31, 2022 and October 31, 2021, the Company had accrued expenses and other payables of $2,453,668 and $261,809, respectively. Details of the accrued expenses and other payables as of October 31, 2022 and October 31, 2021 are as follows:

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;October 31, 2022 | &nbsp;&nbsp;October 31, 2021 |
| &nbsp;&nbsp;Accounts payable, trade | $&nbsp;&nbsp;2383161 | $&nbsp;&nbsp;130393 |
| &nbsp;&nbsp;Accounts payable for employees | &nbsp;&nbsp;54879 | &nbsp;&nbsp; 90922 |
| &nbsp;&nbsp;Accrued payroll liabilities | &nbsp;&nbsp;15628 | &nbsp;&nbsp;40494 |
| &nbsp;&nbsp;Totals | $&nbsp;&nbsp;2453668 | $&nbsp;&nbsp;261809 |

---

**NOTE 13 - SUBSEQUENT EVENTS**

The Company has evaluated subsequent events through February 10, 2023 , the date on which the consolidated financial statements were available to be issued and has found no material transactions to report except for the following:

-F9-

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**Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.**

None.

**Item 9A. Controls and Procedures.**

**<u>Disclosure Controls and Procedures</u>**

The Company has adopted and maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the reports filed under the Exchange Act, such as this annual report, is collected, recorded, processed, summarized and reported within the time periods specified in the rules of the SEC. The Company's disclosure controls and procedures are also designed to ensure that such information is accumulated and communicated to management to allow timely decisions regarding required disclosure. As required under Exchange Act Rule 13a-15, the Company's management, including the Chief Executive Officer who also serves as our Principal Financial Officer, has conducted an evaluation of the effectiveness of disclosure controls and procedures as of the end of the period covered by this annual report. Based on that evaluation, the Chief Executive Office who also serves as our Principal Financial Officer concluded that the disclosure controls and procedures are ineffective.

Our Chief Executive Officer, Ryohei Uetaki, has reviewed the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) as of the end of the period covered by the report October 31, 2022 and has concluded that (i) the Company's disclosure controls and procedures are not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Commission, and (ii) the Company's controls and procedures have not been designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

**<u>Management's Report on Internal Control over Financial Reporting</u>**

The Company's management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Exchange Act Rule 13a-15(f). The Company's internal control over financial reporting is designed to provide reasonable assurance to the Company's management and board of directors regarding the preparation and fair presentation of published financial statements. Management conducted an assessment of the Company's internal control over financial reporting based on the framework and criteria established by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control – Integrated Framework issued in 2013. Based on the assessment, management concluded that, as of October 31, 2022, the Company's internal control over financial reporting is ineffective based on those criteria.

The Company's management, including its Chief Executive Officer who also serves as our Chief Financial Officer, does not expect that the Company's disclosure controls and procedures and its internal control processes will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of error or fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that the breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and may not be detected. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

The matters involving internal controls and procedures that our Chief Executive Officer considered to be material weaknesses under the standards of the Committee of Sponsoring Organizations of Treadway Commission were: domination of management by a single individual without adequate compensating controls, lack of a majority of outside directors on board of directors, inadequate segregation of duties consistent with control objectives, lack of well-established procedures to identify, approve and report related party transactions, and lack of an audit committee.

Management believes that the material weaknesses did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and inadequate segregation of duties results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

Management recognizes that its controls and procedures would be substantially improved if we had an audit committee and two individuals serving as officers and as such is actively seeking to remediate this issue.

**<u>Management's Remediation Initiatives</u>**

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:

We have increased our personnel resources and technical accounting expertise to remediate material weakness in internal control over financial reporting. We plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us.

Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board.

We will work as quickly as possible to implement these initiatives; however, the lack of adequate working capital and positive cash flow from operations will likely slow this implementation.

**<u>Changes in Internal Control</u>**

There have been no changes in internal controls over the financial reporting that occurred during the fiscal fourth quarter, that have materially affected, or are reasonably likely to materially affect our internal controls over financial reporting.

This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management's report in this annual report.

**Item 9B. Other Information.**

None.

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[**Table of Contents**](#table)

**PART III**

**Item 10. Directors, Executive Officers and Corporate Governance.**

Biographical information regarding the Officers and Directors of the Company, who will continue to serve as Officers and Directors of the Company are provided below:

**World Scan Project, Inc.** 

---

| | | |
|:---|:---|:---|
| **NAME** | **AGE** | **POSITION** |
| Ryohei Uetaki | 48 | Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director |
| Yasumasa Ichikawa | 29 | Chief Technology Officer |

---

**World Scan Project Corporation** 

---

| | | |
|:---|:---|:---|
| **NAME** | **AGE** | **POSITION** |
| Ryohei Uetaki | 48 | Chief Executive Officer, Chief Financial Officer, President, Secretary, Treasurer and Director |
| Yasumasa Ichikawa | 29 | Chief Technology Officer |

---

**<u>Ryohei Uetaki</u>**

Mr. Ryohei Uetaki graduated from the Osaka Gakuin University Faculty of Commerce in 1997. In 2000, he incorporated Zero Step Ltd and assumed the position of president. In 2006, Zero Step Ltd ceased all operations. In 2006, Mr. Uetaki joined EAZ Holdings Ltd as a director in charge of the company's marketing efforts. Mr. Uetaki remained as director of EAZ until 2007. From 2007 to 2019, he was engaged as an independent business consultant. From 2017 to 2018, he served as an associated professor of Keio University Graduate School. On October 25, 2019, he was appointed as the president, CEO and director of World Scan Project, Inc. On January 10, 2020, he was appointed as the CEO and member of SKYPR LLC. Inc. On January 22, 2020, he was appointed as the president, CEO and director of World Scan Project Corporation. October 19, 2020, he was appointed as the president, CEO and director of Kids Cell Technologies, Inc.. On November 18, 2020, he was appointed as the president, CEO and director of Kids Cell Technologies Corporation. Currently, he serves as the officer and director of World Scan Project, Inc., World Scan project Corporation, SKYPR LLC, Kids Cell Technologies, Inc. and Kids Cell Technologies Corporation.

Due to Mr. Uetaki's diverse business experience, the Board has determined it is in the best interest of the company to appoint him as the company's Chief Executive Officer, Chief Financial Officer, President, Treasurer and Director.

**<u>Yasumasa Ichikawa</u>**

Mr. Yasumasa Ichikawa graduated from Kyoto Saga University of Arts in 2015. After graduation, he was engaged as an independent computer graphic designer. On November 18, 2019, he was appointed as Chief Technology Officer ("CTO") of World Scan Project, Inc. On January 22, 2020, he was appointed as the CTO of World Scan Project Corporation and World Scan Project Corporation. Currently, he serves as the CTO of World Scan Project, Inc. and World Scan project Corporation.

Due to Mr. Ichikawa's technological experience, the Board has determined it is in the best interest of the company to appoint him as the company's Chief Technology Officer.

**Ethics**

The Company promotes accountability for adherence to honest and ethical conduct; endeavors to provide full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with the Securities and Exchange Commission (the "SEC") and in other public communications made by the Company; and strives to be compliant with applicable governmental laws, rules and regulations. The Company has not formally adopted a written code of business conduct and ethics that governs the Company's employees, officers and directors as the Company is not required to do so.

In lieu of an Audit Committee, the Company's board of director(s) (the "Board of Directors" or "Board"), is responsible for reviewing and making recommendations concerning the selection of outside auditors, reviewing the scope, results and effectiveness of the annual audit of the Company's financial statements and other services provided by the Company's independent public accountants. The Board of directors, the Chief Executive Officer and the Chief Financial Officer of the Company review the Company's internal accounting controls, practices and policies.

**Committees of the Board**

Our Company currently does not have nominating, compensation, or audit committees or committees performing similar functions nor does our Company have a written nominating, compensation or audit committee charter. Our sole director believes that it is not necessary to have such committees, at this time, because the director(s) can adequately perform the functions of such committees.

**Audit Committee Financial Expert**

Our director has determined that we do not have a board member that qualifies as an "audit committee financial expert" as defined in Item 407(D)(5) of Regulation S-K, nor do we have a Board member that qualifies as "independent" as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(14) of the FINRA Rules.

We believe that our director(s) are capable of analyzing and evaluating our financial statements and understanding internal controls and procedures for financial reporting. The director(s) of our Company does not believe that it is necessary to have an audit committee because management believes that the Board of directors can adequately perform the functions of an audit committee. In addition, we believe that retaining an independent director who would qualify as an "<u>audit committee financial expert</u>" would be overly costly and burdensome and is not warranted in our circumstances given the stage of our development and the fact that we have not generated any positive cash flows from operations to date.

**Involvement in Certain Legal Proceedings**

Our officers and sole director have not been involved in or a party in any of the following events or actions during the past ten years:

1. any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

2. any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

3. being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or

4. being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.

5. Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;

6. Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;

7. Such person was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:(i) Any Federal or State securities or commodities law or regulation; or(ii) Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or(iii) Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or

8. Such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

**Independence of Directors**

We are not required to have independent members of our Board of Directors, and do not anticipate having independent Directors until such time as we are required to do so.

**Code of Ethics**

We have not adopted a formal Code of Ethics. The Board of Director(s) evaluated the business of the Company and the number of employees and determined that since the business is operated by a small number of persons, general rules of fiduciary duty and federal and state criminal, business conduct and securities laws are adequate ethical guidelines. In the event our operations, employees and/or Directors expand in the future, we may take actions to adopt a formal Code of Ethics.

**Shareholder Proposals**

Our Company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for Directors. The Board of Director(s) believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our Company does not currently have any specific or minimum criteria for the election of nominees to the Board of Directors and we do not have any specific process or procedure for evaluating such nominees. The Board of Director(s) will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.

A shareholder who wishes to communicate with our Board of Director(s) may do so by directing a written request addressed to our sole Director Ryohei Uetaki, at the address appearing on the first page of this Information Statement.

**Section 16(a) Beneficial Ownership Reporting Compliance**

Section 16(a) of the Exchange Act requires the Company's executive officers, directors and persons who beneficially own more than ten percent of a registered class of the Company's equity securities, to file with the SEC initial reports of ownership and reports of changes in ownership of the Company's common stock. Such officers, directors and persons are required by SEC regulation to furnish the Company with copies of all Section 16(a) forms that they file with the SEC.

Based solely on a review of the copies of such forms that were received by the Company, or written representations from certain reporting persons that no Form 5s were required for those persons, the Company is not aware of any failures to file reports or report transactions in a timely manner during the Company's fiscal year ended October 31, 2022.

**Procedure for Nominating Directors**

In 2021 and 2022, we have not made any material changes to the procedures by which security holders may recommend nominees to our Board of Directors.

**Family Relationships**

There are no family relationships among our directors, executive officers or persons nominated to become executive officers or directors.

**Involvement in Certain Legal Proceedings**

During the past ten (10) years, none of our directors, persons nominated to become directors, executive officers, promoters or control persons was involved in any of the legal proceedings listen in Item 401 (f) of Regulation S-K.

**Arrangements**

There are no arrangements or understandings between an executive officer, director or nominee and any other person pursuant to which he was or is to be selected as an executive officer or director.

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[**Table of Contents**](#table)

**Item 11. Executive Compensation.**

The table below summarizes all compensation awarded to, earned by, or paid to our named executive officer(s) and director(s) for the year ended October 31, 2022 and for the year ended October 31, 2021 This in relation to the Company, World Scan Project, Inc.

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE | SUMMARY COMPENSATION TABLE |
| Name and<br> principal position | Year | Salary<br> ($) | Bonus<br> ($) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> Stock<br> Awards<br> ($) | Option<br> Awards<br> ($) | Non-Equity<br> Incentive Plan<br> Compensation<br> ($) | Nonqualified<br> Deferred<br> Compensation<br> Earnings ($) | All Other<br> Compensation<br> ($) | Total<br> ($) |
| Ryohei Uetaki<br> Chief Executive Officer and Sole Director (1) | 2022 | 188405 |  | 0 | 0 | 0 | 0 | 0 | 188405 |
| Yasumasa Ichikawa,<br> Chief Technology Officer (2) | 2022 | 121678 |  | 0 | 0 | 0 | 0 | 0 | 121678 |
| Ryohei Uetaki<br> Chief Executive Officer and Sole Director (1) | 2021 | 221922 |  | 0 | 0 | 0 | 0 | 0 | 221922 |
| Yasumasa Ichikawa,<br> Chief Technology Officer (2) | 2021 | 110961 |  | 0 | 0 | 0 | 0 | 0 | 110961 |

---

(1) On October 25, 2019, Ryohei Uetaki was appointed as Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer.

(2) On November 18, 2019, Yasumasa Ichikawa was appointed as Chief Technology Officer.

**Option/SAR Grants in Last Fiscal Year**

None.

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

None.

**Equity Compensation Plan Information**

Not applicable.

**Employment Agreements of our Officers and Directors**

None.

**Compensation Discussion and Analysis**

***Director Compensation***

The Board of Directors reserves the right in the future to award the members of the Board of Directors cash or stock based consideration for their services to the Company, which awards, if granted shall be in the sole determination of the Board of Directors.

***Executive Compensation Philosophy***

Our Board of Directors determines the compensation given to our executive officers in their sole determination. Our Board of Directors reserves the right to pay our executive or any future executives a salary, and/or issue them shares of common stock issued in consideration for services rendered and/or to award incentive bonuses which are linked to our performance, as well as to the individual executive officer's performance. This package may also include long-term stock based compensation to certain executives, which is intended to align the performance of our executives with our long-term business strategies. Additionally, while our Board of Directors has not granted any performance base stock options to date, the Board of Directors reserves the right to grant such options in the future, if the Board in its sole determination believes such grants would be in the best interests of the Company.

***Incentive Bonus***

The Board of Directors may grant incentive bonuses to our executive officer and/or future executive officers in its sole discretion, if the Board of Directors believes such bonuses are in the Company's best interest, after analyzing our current business objectives and growth, if any, and the amount of revenue we are able to generate each month, which revenue is a direct result of the actions and ability of such executives.

***Long-term, Stock Based Compensation***

In order to attract, retain and motivate executive talent necessary to support the Company's long-term business strategy we may award our executive and any future executives with long-term, stock-based compensation in the future, at the sole discretion of our Board of Directors, which we do not currently have any immediate plans to award.

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[**Table of Contents**](#table)

 ****

**Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.**

As of our fiscal year end, the Company has 10,647,350 shares of common stock and 10,000,000 shares of Series A preferred stock issued and outstanding..

**\*The table below is as of October 31, 2022.**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Shares of Common Stock Beneficially Owned** | **Common Stock Voting Percentage Beneficially Owned** | **Preferred Stock Beneficially Owned** | **Shares of Preferred Stock Voting Percentage Beneficially Owned** | **Total Voting Percentage Beneficially Owned (1)** |
| **Executive Officers and Directors** |  |  |  |  |  |
| Ryohei Uetaki (1)<br> Address: 2-18-23, Nishiwaseda, Shinjuku-Ku, Tokyo, 162-0051, Japan | 10000000 | 93.9% | 10000000 | \* | 93.9% |
| **5% or greater shareholders** |  |  |  |  |  |

---

\* Our Series A Preferred Stock currently has no voting rights. Currently we have 10,000,000 shares of Series A Preferred Stock issued and outstanding of which Ryohei Uetaki owns and controls through his exclusive membership interest in SKYPR LLC.

(1) Ryohei Uetaki currently serves as our Chief Executive Officer, Chief Financial Officer, President, Director, Secretary, and Treasurer. Ryohei Uetaki owns 100% of the membership interests in SKYPR LLC., a Delaware Limited Liability Company, which owns 7,000,000 shares of our common stock and 10,000,000 shares of our Series A Preferred Stock. The table above includes the share ownership of SKYPR LLC with Ryohei Uetaki collectively, in the row for Mr. Uetaki.

Beneficial ownership has been determined in accordance with Rule 13d-3 under the Exchange Act. Under this rule, certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire shares (for example, upon exercise of an option or warrant) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares is deemed to include the amount of shares beneficially owned by such person by reason of such acquisition rights. As a result, the percentage of outstanding shares of any person as shown in the following table does not necessarily reflect the person's actual voting power at any particular date.

**Item 13. Certain Relationships and Related Transactions.**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

On October 25, 2019 the Company issued 10,000,000 shares of restricted Common Stock to Ryohei Uetaki for services rendered to the Company. Additionally, on the same day, it issued 10,000,000 shares of its restricted Series A Preferred Stock to Ryohei Uetaki, also for services rendered. The aforementioned shares of common and preferred stock were all issued at par value, $0.0001, having a total value of $2,000. No monies were exchanged per the issuances and the shares were all exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act.

On January 25, 2020, the Company entered into and consummated a Share Contribution Agreement with Ryohei Uetaki. Pursuant to this agreement Mr. Uetaki gifted to the Company, at no cost, 300 shares of common stock of World Scan Project Corporation, a Japan corporation ("WSP Japan"), which represented all of its issued and outstanding shares. The Company has since gained a 100% interest in the issued and outstanding shares of WSP Japan's common stock and WSP Japan is now a wholly owned subsidiary of the Company. The Company and WSP Japan were under common control at the time of the acquisition. WSP Japan was incorporated under the laws of Japan on January 22, 2020. Currently, WSP Japan is headquartered in Tokyo, Japan. The Company is an industrial automation equipment manufacturer currently focused on developing and designing robots, drones, Web3 infrastructure, IoT equipment and other related products.

On February 19, 2020, Ryohei Uetaki gifted 7,000,000 shares of our Common Stock and 10,000,000 shares of our Series A Preferred Stock, which represented all of our issued and outstanding shares of Preferred Stock at the time, to SKYPR LLC, a Delaware Limited Liability Company (referred to herein as "SKYPR LLC"). Our CEO Ryohei Uetaki owns and controls 100% of the membership interests in SKYPR LLC.

For the year ended October 31, 2022, the Company borrowed $0 from Ryohei Uetaki, our CEO. The total due was $18,517 for salary and $458 for expenses as of October 31, 2022, and $455 for expenses as of October 31, 2021, and were unsecured, due on demand and non-interest bearing.

Aiming to establish a new revenue source, the Company planned to enter a new business, create avatars which offer exploring opportunities in metaverse. Found less feasible to realize reasonable revenue, the Company gave up the idea and related assets were transferred to ZEXAVERSE before the Company put those in service.

For the said transaction, the Company and ZEXAVERSE entered into a memorandum on July 1, 2022 and assets were all transferred to ZEXAVERSE on July 15, 2022. However, the Company was the contracting party with the vendors in sourcing assets for the new business, the Company invoiced the sum of contract value with vendors to ZEXAVERSE upon the said transfer in the amount of $727,911. The amount we disbursed to the vendors and the amount the company invoiced to ZEXAVERSE was paid on October 31, 2022. There is no revenue/loss, inventory, cost of goods sold occurred to the Company in relation to this transaction.

For the year ended October 31, 2022, revenue totaling $7,879 was recognized from sales to related party ZEXAVERSE Corporation (hereinafter referred to as "ZEXAVERSE"). ZEXAVERSE is considered as a related party due to the fact that Ryohei Uetaki, our CEO, controls the said company. For the year ended October 31, 2021, there was no sales to related party.

The terms and conditions applied to the above transactions were the same as those applied to sales to customers not related to the Company.

**Review, Approval and Ratification of Related Party Transactions**

Given our small size and limited financial resources, we have not adopted formal policies and procedures for the review, approval or ratification of transactions, such as those described above, with our executive officer(s), Director(s) and significant shareholders. We intend to establish formal policies and procedures in the future, once we have sufficient resources and have appointed additional Directors, so that such transactions will be subject to the review, approval or ratification of our Board of Directors, or an appropriate committee thereof. On a moving forward basis, our directors will continue to approve any related party transaction.

**Item 14. Principal Accounting Fees and Services.**

Below is the aggregate amount of fees billed for professional services rendered by our principal accountants with respect to our last two fiscal years.

---

| | | | |
|:---|:---|:---|:---|
|  |  | 2022 | &nbsp;&nbsp;2021 |
| &nbsp;&nbsp;Audit fees | &nbsp;&nbsp;M&K CPAS, PLLC | $57677 | &nbsp;&nbsp;$31000 |
| &nbsp;&nbsp;Audit related fees |  |  |  |
| &nbsp;&nbsp;Tax fees |  |  | &nbsp;&nbsp; $3854 |
| &nbsp;&nbsp;All other fees |  |  |  |
| &nbsp;&nbsp;Total |  | $57677 | &nbsp;&nbsp;$34854 |

---

<u>Board of Directors Pre-Approval Process, Policies and Procedures</u>

Our principal auditors have informed our sole director of the scope and nature of each service provided. With respect to the provisions of services other than audit, review, or attest services, our principal accountants brought such services to the attention of our sole director prior to commencing such services.

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[**Table of Contents**](#table)

**PART IV**

**Item 15. Exhibits, Financial Statement Schedules.**

(a) Financial Statements

&nbsp;&nbsp;&nbsp;&nbsp;1. Financial statements for our company are listed in the index under Item 8 of this document

&nbsp;&nbsp;&nbsp;&nbsp;2. All financial statement schedules are omitted because they are not applicable, not material or the required information is shown in the financial statements or notes thereto.

(b) Exhibits required by Item 601 of Regulation S-K.

---

| | |
|:---|:---|
| Exhibit No. | Description |
| 3.1 | [Certificate of Incorporation](https://www.sec.gov/Archives/edgar/data/1813744/000159991620000109/certificate.htm) (1) |
| 3.2 | [By-laws](https://www.sec.gov/Archives/edgar/data/1813744/000159991620000109/bylaws.htm) (1) |
| 31 | [Certification of the Company's Principal Executive and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, with respect to the registrant's report on Form 10-K for the year ended October 31, 2022](ex31_wsp.htm). (2) |
| 32 | [Certification of the Company's Principal Executive and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex32_wsp.htm)(2) |
| 101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
| 101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document. |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

(1) Filed as an exhibit to the Company's Registration Statement on Form S-1, as filed with the SEC on August 26, 2020, and incorporated herein by this reference.

(2) Filed herewith.

**Signatures**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

**World Scan Project, Inc.**

(Registrant)

By: /s/ Ryohei Uetaki

Ryohei Uetaki, Chief Executive Officer, Chief Financial Officer

Dated: February 10, 2023

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By: /s/ Ryohei Uetaki

Ryohei Uetaki, Chief Executive Officer, Chief Financial Officer

Dated: February 10, 2023

## Ex-31

EXHIBIT 31.1

World Scan Project, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Ryohei Uetaki, certify that:

1. I have reviewed this report on Form 10-K of World Scan Project, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The small business owner's other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: February 10, 2023

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Executive Officer*

(Principal Executive Officer)

EXHIBIT 31.2

World Scan Project, INC.

OFFICER'S CERTIFICATE PURSUANT TO SECTION 302

I, Ryohei Uetaki, certify that:

1. I have reviewed this report on Form 10-K of World Scan Project, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The small business owner's other certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small issuer's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Dated: February 10, 2023

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Financial Officer*

(Principal Financial Officer)

## Ex-32

EXHIBIT 32.1

World Scan Project, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of World Scan Project, Inc. (the Company) on Form 10-K for the fiscal year ended October 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Ryohei Uetaki, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Ryohei Uetaki and will be retained by World Scan Project, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: February 10, 2023

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Executive Officer*

(Principal Executive Officer)

EXHIBIT 32.2

World Scan Project, INC.

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of World Scan Project, Inc. (the Company) on Form 10-K for the fiscal year ended October 31, 2022, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Ryohei Uetaki, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. ss.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement required by Section 906 has been provided to Ryohei Uetaki and will be retained by World Scan Project, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

Dated: February 10, 2023

By: <u>/s/ Ryohei Uetaki</u>

Ryohei Uetaki,

*Chief Financial Officer*

(Principal Financial Officer)