# EDGAR Filing Document

**Accession Number:** 0000894556
**File Stem:** 0001640334-25-001490
**Filing Date:** 2025-8
**Character Count:** 131586
**Document Hash:** ede353e173492daf811a38bc6a54d462
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001640334-25-001490.hdr.sgml**: 20250814

**ACCESSION NUMBER**: 0001640334-25-001490

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 83

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250814

**DATE AS OF CHANGE**: 20250814

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** General Enterprise Ventures, Inc.
- **CENTRAL INDEX KEY:** 0000894556
- **STANDARD INDUSTRIAL CLASSIFICATION:** CHEMICALS & ALLIED PRODUCTS [2800]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 872765150
- **STATE OF INCORPORATION:** WY
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56567
- **FILM NUMBER:** 251217371

**BUSINESS ADDRESS:**
- **STREET 1:** 1740H DEL RANGE BLVD
- **STREET 2:** SUITE 166
- **CITY:** CHEYENNE
- **STATE:** WY
- **ZIP:** 82009
- **BUSINESS PHONE:** 800-401-4535

**MAIL ADDRESS:**
- **STREET 1:** 1740H DEL RANGE BLVD
- **STREET 2:** SUITE 166
- **CITY:** CHEYENNE
- **STATE:** WY
- **ZIP:** 82009

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GENERAL ENTERTAINMENT VENTURES, INC
- **DATE OF NAME CHANGE:** 20210517

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GENERAL ENVIRONMENTAL VENTURES, INC
- **DATE OF NAME CHANGE:** 20210517

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** GENERAL ENVIRONMENTAL MANAGEMENT, INC
- **DATE OF NAME CHANGE:** 20050427

?xml version='1.0' encoding='ASCII'? gevi_10q.htm

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 10-Q**

(Mark One)

---

| | |
|:---|:---|
| ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | For the quarterly period ended: **<u>June 30, 2025</u>** |

---

or

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| | |
|:---|:---|
| ☐ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|  | For the transition period from ___________ to ___________ |

---

Commission File Number: **<u>000-56567</u>**

---

| |
|:---|
| **General Enterprise Ventures, Inc.** |
| (Exact name of registrant as specified in its charter) |

---

---

| | |
|:---|:---|
| **Wyoming** | **87-2765150** |
| (State or other jurisdiction of<br>incorporation or organization) | (IRS Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **1740H Del Range Blvd, Suite 166**<br>**Cheyenne, WY** | **82009** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(800) 401-4535</u>**

(Registrant's telephone number, including area code)

___________________________________________________________

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act: **None**

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. **Yes ☒**&nbsp;&nbsp;&nbsp;&nbsp; No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). **Yes ☒**&nbsp;&nbsp;&nbsp;&nbsp; No ☐

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

---

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

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised 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 ☐&nbsp;&nbsp;&nbsp;&nbsp; **NO ☒**

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

66,550,981 shares of common stock issued and outstanding as of August 12, 2025.

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | Page |
| [PART I - FINANCIAL INFORMATION](#p1) | [PART I - FINANCIAL INFORMATION](#p1) |  |
| [Item 1.](#p1item1) | [Financial Statements](#p1item1) | 3 |
| [Item 2.](#P1item2) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#P1item2) | 26 |
| [Item 3.](#P1item3) | [Quantitative and Qualitative Disclosures About Market Risk](#P1item3) | 36 |
| [Item 4.](#P1item4) | [Controls and Procedures](#P1item4) | 37 |
| [PART II - OTHER INFORMATION](#p2) | [PART II - OTHER INFORMATION](#p2) |  |
| [Item 1.](#P2item1) | [Legal Proceedings](#P2item1) | 38 |
| [Item 1A.](#P2item1a) | [Risk Factors](#P2item1a) | 38 |
| [Item 2.](#P2item2) | [Unregistered Sales of Equity Securities and Use of Proceeds](#P2item2) | 38 |
| [Item 3.](#P2item3) | [Defaults Upon Senior Securities](#P2item3) | 38 |
| [Item 4.](#P2item4) | [Mine Safety Disclosures](#P2item4) | 38 |
| [Item 5.](#P2item5) | [Other Information](#P2item5) | 38 |
| [Item 6.](#P2item6) | [Exhibits](#P2item6) | 39 |
| [SIGNATURES](#sig) | [SIGNATURES](#sig) | 40 |

---

---

| |
|:---|
| 2 |
| *[**Table of Contents**](#toc)* |

---

**PART I - FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**GENERAL ENTERPRISE VENTURES, INC.**

**UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Consolidated Balance Sheets (unaudited)](#BS) | 4 |
| [Consolidated statements of Operations and Comprehensive Loss (unaudited)](#CI) | 5 |
| [Consolidated Statements of Changes in Stockholders' Equity (unaudited)](#SE) | 6 |
| [Consolidated Statements of Cash Flows (unaudited)](#CF) | 7 |
| [Consolidated Notes to Financial Statements (unaudited)](#note) | 8 |

---

---

| |
|:---|
| 3 |
| *[Table of contents](#TOC2)* |

---

**General Enterprise Ventures, Inc.**

**Consolidated Balance Sheets**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br> **2025**  | **December 31,**<br>**2024** |
| **Assets** |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash | $2327087 | $775133 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 653995 | 317455 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 409923 | 324657 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 206370 | 74129 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs  | 185327 | 126104 |
| Total Current Assets | 3782702 | 1617478 |
| Non-Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Intangible assets, net | 3575525 | 3699491 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease right-of-use asset | 828513 | 49347 |
| &nbsp;&nbsp;&nbsp;&nbsp;Property and equipment, net | 465511 | 111374 |
| &nbsp;&nbsp;&nbsp;&nbsp;Security deposit | 36991 | - |
| Total Non-Current Assets | 4906540 | 3860212 |
| **Total Assets** | $8689242 | $5477690 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | $532985 | $186984 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue  | 94860 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertibles notes, net of discount | 277593 | 196077 |
| &nbsp;&nbsp;&nbsp;&nbsp;Convertibles notes, net of discount - related parties | 932002 | 576693 |
| &nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 95747 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing loan |  | 96849 |
| &nbsp;&nbsp;&nbsp;&nbsp;Derivative liability | 3733000 | 1055233 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability - current portion | 138810 | 50047 |
| Total Current Liabilities | 5804997 | 2161883 |
| Non-current Liability |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liability | 693652 | - |
| Total Liabilities | 6498649 | 2161883 |
| Stockholders' Equity |  |  |
| Preferred Stock, par value $0.0001, authorized 30,000,000 shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Series A Preferred Stock, par value $0.0001, designated 10,000,000 shares, 10,000,000 shares issued and outstanding | 1000 | 1000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Convertible Preferred Stock, par value $0.0001, designated 10,000,000 shares, 2,036,507 and 3,001,969 issued and outstanding, respectively  | 204 | 300 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common Stock, par value $0.0001, authorized 1,000,000,000 shares, 66,086,853 and 36,841,581 shares issued and outstanding, respectively  | 6609 | 3684 |
| Additional paid-in capital | 101355591 | 79676211 |
| Accumulated deficit | (99172811) | (76365388) |
| Total Stockholders' Equity | 2190593 | 3315807 |
| **Total Liabilities and Stockholders' Equity** | $8689242 | $5477690 |

---

*See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.*

---

| |
|:---|
| 4 |
| *[Table of contents](#TOC2)* |

---

**General Enterprise Ventures, Inc.**

**Consolidated Statements of Operations and Comprehensive Loss**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025**  | **2024** |
| Revenue | $687638 | $198669 | $1657020 | $631687 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue, exclusive of amortization and depreciation shown separately below | 371392 | 102195 | 928362 | 199064 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue - related parties |  | 25790 | 95290 | 73136 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization and depreciation | 77107 | 62765 | 151646 | 126600 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administration | 311503 | 161413 | 522705 | 258738 |
| &nbsp;&nbsp;&nbsp;&nbsp;Advertising and marketing | 152608 | 217574 | 257104 | 307980 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payroll and management compensation | 2334698 |  | 2973121 | 25000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 445668 | 471126 | 1072986 | 1651505 |
| &nbsp;&nbsp;&nbsp;&nbsp;Professional fees - related parties | 12300 | 65210 | 2131900 | 1533614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 3705277 | 1106073 | 8133115 | 4175637 |
| Loss from operations | (3017639) | (907404) | (6476095) | (3543950) |
| Other income (expense) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (552085) |  | (962876) | (885) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense - related party | (212787) |  | (274843) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest income | 3958 |  | 3958 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing expense | (2511855) |  | (8679189) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (2973000) |  | (3777767) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on settlement of debt | (2640611) | - | (2640611) | (882279) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (8886380) | - | (16331328) | (883164) |
| Loss from operations before taxes | (11904019) | (907404) | (22807423) | (4427114) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes | - | - | - | - |
| Net loss | $(11904019) | $(907404) | $(22807423) | $(4427114) |
| Comprehensive loss | $(11904019) | $(907404) | $(22807423) | $(4427114) |
| Net loss per common share - basic and diluted | $(0.19) | $(0.02) | $(0.41) | $(0.07) |
| Basic and diluted weighted average number of common shares outstanding | 62734319 | 36387315 | 55353088 | 64310131 |

---

*See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.*

---

| |
|:---|
| 5 |
| *[Table of contents](#TOC2)* |

---

**General Enterprise Ventures, Inc.**

**Consolidated Statements of Change in Stockholders' Equity**

**(Unaudited)**

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

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Convertible Series A**  | **Convertible Series A**  | **Convertible Series C** | **Convertible Series C** | | | | | |
|  | **Preferred stock** | **Preferred stock** | **Preferred stock** | **Preferred stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;**Shares**  | **Amount**  | **Additional**<br>**Paid-In**<br> **Capital**  |<br>**Accumulated**<br> **Deficit**  | **Total** <br> **Stockholders'** <br> **Equity**  |
| **Balance - December 31, 2024** | 10000000 | $1000 | 3001969 | $300 | 36841581 | $3684 | $79676211 | $(76365388) | $3315807 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred Stock issued for cash  |  |  | 27500 | 3 |  |  | 259997 |  | 260000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred Stock issued for services |  |  | 167500 | 17 |  |  | 2349003 |  | 2349020 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred Stock issued for compensation |  |  | 30000 | 3 |  |  | 420717 |  | 420720 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for conversion of Series C Preferred Stock |  |  | (776831) | (78) | 15536620 | 1554 | (1476) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock warrants issued  |  |  |  |  |  |  | 8649503 |  | 8649503 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | - | (10903404) | (10903404) |
| **Balance - March 31, 2025** | 10000000 | 1000 | 2450138 | 245 | 52378201 | 5238 | 91353955 | (87268792) | 4091646 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred Stock issued for services |  |  | 69007 | 7 |  |  | 2511848 |  | 2511855 |
| &nbsp;&nbsp;&nbsp;&nbsp;Series C Preferred Stock issued for compensation |  |  | 50000 | 5 |  |  | 1099995 |  | 1100000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for conversion of Series C Preferred Stock |  |  | (532638) | (53) | 10652760 | 1065 | (1012) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for services  |  |  |  |  | 10000 | 1 | 18999 |  | 19000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for conversion of debts |  |  |  |  | 3045892 | 305 | 5604137 |  | 5604442 |
| &nbsp;&nbsp;&nbsp;&nbsp;Management stock compensation |  |  |  |  |  |  | 767669 |  | 767669 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | - | - | - | - | - | - | - | (11904019) | (11904019) |
| **Balance - June 30, 2025** | 10000000 | $1000 | 2036507 | $204 | 66086853 | $6609 | $101355591 | $(99172811) | $2190593 |

---

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

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Convertible Series A** | **Convertible Series A** | **Convertible Series C** | **Convertible Series C** |  |  | | | | | |
|  | **Preferred stock** | **Preferred stock** | **Preferred stock** | **Preferred stock** | **Common Stock** | **Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | &nbsp;&nbsp;&nbsp;&nbsp;**Shares** | **Amount** | **Preferred**<br>**Stock to be** <br>**issued** | **Common**<br>**Stock to be**<br> **issued**  | **Additional**<br>**Paid-In**<br> **Capital** | <br>**Accumulated**<br> **Deficit** | **Total**<br> **Stockholders'**<br> **Equity**  |
| **Balance - December 31, 2023** | 10000000 | $1000 | 2273499 | $227 | 97545388 | $9755 | $500000 | $180000 | $72427996 | $(69483666) | $3635312 |
| Series C Preferred Stock issued for preferred stock to be issued |  |  | 108333 | 11 |  |  | (320000) |  | 319989 |  |  |
| Series C Preferred Stock issued for cash |  |  | 50000 | 5 |  |  |  |  | 164995 |  | 165000 |
| Series C Preferred Stock issued for services |  |  | 40000 | 4 |  |  |  |  | 695996 |  | 696000 |
| Common stock issued for stock to be issued - management |  |  |  |  | 250000 | 25 |  | (90000) | 89975 |  |  |
| Common stock issued for conversion and settlement of debt |  |  |  |  | 1506762 | 150 |  |  | 1084998 |  | 1085148 |
| Cancellation of comment stock - related party |  |  |  |  | (65000000) | (6500) |  |  | 6500 |  |  |
| Common stock issued for services |  |  |  |  | 2000000 | 200 |  |  | 1701800 |  | 1702000 |
| Net loss | - | - | - | - | - | - | - | - | - | (3519710) | (3519710) |
| **Balance - March 31, 2024** | 10000000 | 1000 | 2471832 | 247 | 36302150 | 3630 | 180000 | 90000 | 76492249 | (73003376) | 3763750 |
| Series C Preferred Stock issued for preferred stock to be issued |  |  | 74999 | 7 |  |  | (180000) |  | 179993 |  |  |
| Common stock issued for services |  |  |  |  | 250000 | 25 |  |  | 159975 |  | 160000 |
| Common stock to be issued for services |  |  |  |  |  |  |  | 200000 |  |  | 200000 |
| Net loss | - | - | - | - | - | - | - | - | - | (907404) | (907404) |
| **Balance - June 30, 2024** | 10000000 | $1000 | 2546831 | $254 | 36552150 | $3655 | $- | $290000 | $76832217 | $(73910780) | $3216346 |

---

*See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.*

---

| |
|:---|
| 6 |
| *[Table of contents](#TOC2)* |

---

**General Enterprise Ventures, Inc.**

**Consolidated Statements of Cash Flows**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| **Cash Flows from Operating Activities:** |  |  |
| Net loss | $(22807423) | $(4427114) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 4656409 | 2758000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing expense | 8679189 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-cash lease expenses | 86052 | 39519 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 151646 | 126600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization debt discount | 1000390 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on settlement of debt | 2640611 | 882279 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative | 3777767 |  |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (336540) | (223438) |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | (180563) | 38116 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (132241) | (791) |
| &nbsp;&nbsp;&nbsp;&nbsp;Security deposit | (36991) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 443354 | 75043 |
| &nbsp;&nbsp;&nbsp;&nbsp;Related party advances funding operating expense | 25300 | 2180 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest - related parties | 95447 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 94860 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (82803) | (38919) |
| Net Cash used in Operating Activities | (1925536) | (768525) |
| **Cash Flows from Investing Activities:** |  |  |
| Purchase of property and equipment | (167744) | - |
| Net Cash used in Investing Activities | (167744) | - |
| **Cash Flows from Financing Activities:** |  |  |
| Advances received for convertible notes to be issued |  | 695000 |
| Proceeds from convertible notes | 1909000 |  |
| Proceeds from convertible note - related party | 1776082 |  |
| Deferred offering cost | (59223) | (34675) |
| Repayment of loan- related party | (25000) | (60000) |
| Proceed from issuance of Series C Preferred Stock | 260000 | 165000 |
| Repayment of financing loan | (215625) | - |
| Net Cash provided by Financing Activities | 3645234 | 765325 |
| Change in cash | 1551954 | (3200) |
| Cash, beginning of period | 775133 | 549755 |
| Cash, end of period | $2327087 | $546555 |
| **Supplemental Disclosure Information:** |  |  |
| Cash paid for interest | $5870 | $- |
| Cash paid for taxes | $- | $- |
| **Non-Cash Financing Disclosure:** |  |  |
| Common stock issued for services | $- | $1862000 |
| Common stock to be issued for services | $- | $200000 |
| Series C Preferred stock issued for services | $- | $696000 |
| Common stock issued upon conversion of Series C Preferred stock | $2618 | $- |
| Common stock issued for conversion and settlement of debt | $5604442 | $1085148 |
| Common stock issued for stock to be issued - management | $- | $90000 |
| Series C Preferred stock issued for subscription received | $- | $500000 |
| Cancellation of common stock - related party | $- | $6500 |
| Warrants issued in conjunction with convertible debts | $882000 | $- |
| Right - of-use assets obtained in exchange for new operating lease liabilities | $865218 | $- |
| Recognition of derivative liability as debt discount | $1027000 | $- |
| Transfer from inventory to property and equipment | $95297 | $- |
| Acquisition of property and equipment as financing loan | $118776 | $- |

---

*See the accompanying Notes, which are an integral part of these unaudited consolidated financial statements.*

---

| |
|:---|
| 7 |
| *[Table of contents](#TOC2)* |

---

**General Enterprise Ventures, Inc.**

**Notes to Unaudited Consolidated Financial Statements**

**June 30, 2025**

**Note 1 – Organization, Business and Going Concern**

General Enterprise Ventures, Inc., was originally incorporated under the laws of the State of Nevada on March 14, 1990. On June 3, 2021, after approval by the board of directors and shareholders of the Company, the Company was redomiciled to the State of Wyoming. On October 11, 2021, after approval by the board of directors and shareholders of the Company, the Company was renamed General Enterprise Ventures, Inc., in the State of Wyoming.

When used in these notes, the terms "General Enterprise Ventures, Inc.," "Company," "we," "us" and "our" mean General Enterprise Ventures, Inc. and all entities included in our unaudited interim consolidated financial statements.

**Corporate Changes**

Effective June 25, 2024, the Company formed and organized a wholly owned subsidiary, GEVI Insurance Holdings Inc., an Ohio corporation ("GEVI Insurance"), to enter the wildfire insurance markets utilizing the Company's flame retardant and flame suppression product. Effective February 21, 2025, the Company formed MFB Insurance Company, Inc., a Hawaii corporation ("MFBI") and organized it as a wholly owned subsidiary of GEVI Insurance to act as a captive insurance company to enter the wildfire insurance market. MFBI was formed to act as a captive insurance company to reinsure real property protected with the Company's CitroTech product. MFBI is not currently able to reinsure real property.

***Business***

Our product is CitroTech™, which is utilized in wildfire defense and to treat lumber to inhibit fire. In addition, we are developing a coating to treat lumber during manufacture prior to distribution. Our product is sustainable, because it is made of food-grade ingredients derived from corn, fruits and other renewable sources. Our current customer base is mainly comprised of homeowners, developers and fire departments. Homeowners and developers use our product to proactively spray wood framing during construction to treat the property prior to the occurrence of fires. We install systems to deploy our product remotely to provide a buffer zone around properties to prevent combustion. Fire Departments use our product to proactively spray around controlled burns and areas that traditionally have active wildfire risk to prevent expansion of the burn area.

**Going Concern**

Our unaudited interim consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has incurred losses since inception and has a net loss of approximately $22.8 million and revenue of $1.7 million for the six months ended June 30, 2025. The Company also has a working capital deficiency of approximately $2.0 million, as of June 30, 2025. These conditions raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the unaudited consolidated financial statements are issued.

Management recognizes that the Company must obtain additional resources to successfully implement its business plans. During the six months ended June 30, 2025, the Company completed financings from the issuance of Series C preferred stock, and convertible notes, generating net proceeds of approximately $3.9 million. However, the Company's existing cash resources and income from operations, are not expected to provide sufficient funds to carry out the Company's operations and business development through the next twelve (12) months.

Management plans to continue to raise funds and complete a public offering to support our operations in 2025. However, no assurances can be given that we will be successful. If management is not able to timely and successfully raise additional capital and/or complete a public offering, the implementation of the Company's business plan, financial condition and results of operations will be materially affected. These unaudited interim consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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**Note 2 – Summary of Significant Accounting Policies**

**Basis of Presentation**

Our unaudited interim consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, the unaudited interim consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there has been no material change in the information disclosed in the Notes to Consolidated Financial Statements included in the Annual Report on Form 10-K of General Enterprise Ventures, Inc. for the year ended December 31, 2024.

In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of June 30, 2025, and its results of operations for the three months and six months ended June 30, 2025, and 2024, and cash flows for the six months ended June 30, 2025, and 2024. The balance sheet at December 31, 2024, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements.

The accompanying unaudited interim consolidated financial statements should be read in conjunction with the unaudited interim consolidated financial statements and related notes included in the Company's Annual Report on Form 10-K, for the year ended December 31, 2024, as filed with the SEC on March 31, 2025.

**Principles of Consolidation**

The consolidated financial statements include the accounts of General Enterprise Ventures, Inc., and its wholly owned subsidiaries. Intercompany transactions and balances have been eliminated.

**Reclassification**

Certain amounts have been reclassified to improve the clarity and comparability of the financial statements. These reclassifications had no impact on previously reported total assets, liabilities, equity, net income (loss), or cash flows for any periods presented.

**Use of Estimates** 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the reported amounts for certain expenses during the reporting period. Actual results could differ from these good faith estimates and judgments.

**Segment Information**

Our Chief Executive Officer ("CEO") is the chief operating decision maker who reviews financial information on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, we determined we operate in a single reporting segment - environmentally sustainable flame retardant and flame suppression company for the residential home industry.

Our CEO assesses performance and decides how to allocate resources primarily based on consolidated net income, which is reported on our Consolidated Statements of Operations. Total assets on the Consolidated Balance Sheets represent our segment assets.

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**Cash and Cash Equivalents**

For purposes of balance sheet presentation and reporting of cash flows, the Company considers all unrestricted demand deposits, money market funds and highly liquid debt instruments with an original maturity of less than 90 days to be cash and cash equivalents. The Company did not have any cash equivalents as of June 30, 2025 and December 31, 2024. The Company had cash of $2,327,087 and $775,133, as of June 30, 2025 and December 31, 2024, respectively.

Periodically, the Company may carry cash balances at financial institutions more than the federally insured limit of $250,000 per institution. The amount in excess of the FDIC insurance as of June 30, 2025, was approximately $1.7 million. The Company has not experienced losses on account balances and management believes, based upon the quality of the financial institutions, that the credit risk with regard to these deposits is not significant.

**Accounts Receivable**

Trade accounts receivable are recorded at the invoiced amount and do not bear interest. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any expected loss on the trade accounts receivable balances and charged to the provision for doubtful accounts. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make the required payments for services. Accounts with known financial issues are first reviewed and specific estimates are recorded. The remaining accounts receivable balances are then grouped in categories by the number of days the balance is past due, and the estimated loss is calculated as a percentage of the total category based upon past history. Account balances are charged against the allowance when it is probable that the receivable will not be recovered.

During the six months ended June 30, 2025 and 2024, the Company recorded no bad debt expense, and no allowance for credit losses as of June 30, 2025 and December 31, 2024.

**Fair Value of Financial Instruments** 

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value. The three tiers are defined as follows:

● Level 1—Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets;

● Level 2—Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and

● Level 3—Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions.

Financial instruments measured at fair value are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires the Company to make judgments and consider factors specific to the asset or liability. The use of different assumptions and/or estimation methodologies may have a material effect on estimated fair values. Accordingly, the fair value estimates disclosed, or initial amounts recorded, may not be indicative of the amount that the Company or holders of the instruments could realize in a current market exchange.

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***Recurring Fair Value Measurements***

The following table summarizes the liabilities measured at fair value on a recurring basis:

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| | |
|:---|:---|
| **June 30, 2025** | **Level 3** |
| Liabilities |  |
| Derivative Liability – conversion feature | $3733000 |

---

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| | |
|:---|:---|
| **December 31, 2024** | **Level 3** |
| Liabilities |  |
| Derivative Liability – conversion feature | $1055233 |

---

***Nonrecurring Fair Value Measurements***

The valuation of warrants and market based compensation were derived using Level 3 inputs.

***Other Fair Value Disclosures***

The Company's financial instruments, including cash, accounts receivable, prepaid expenses, deferred offering costs, accounts payable and accrued liabilities, deferred revenue and loans payable, are carried at historical cost. As of June 30, 2025 and December 31, 2024, the carrying amounts of these instruments approximated their fair values because of the short-term nature of these instruments.

**Convertible Notes**

The Company bifurcates conversion options from their host instruments and accounts for them as free-standing derivative financial instruments if certain criteria are met. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.

**Derivative Financial Instruments**

The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks. We evaluate all of our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For our derivative financial instruments, the Company used a Binomial Lattice model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within twelve (12) months of the balance sheet date.

**Warrants**

For warrants that are determined to be equity-classified, we estimate the fair value at issuance and record the amounts to additional paid in capital (potentially on a relative fair value basis if issued in a basket transaction with other financial instruments). Warrants that are equity-classified are not subsequently remeasured unless modified or required to be reclassified as liabilities.

**Revenue**

The Company recognizes revenue from its contracts with customers in accordance with *ASC 606 – Revenue from Contracts with Customers.* The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.

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Revenue related to contracts with customers is evaluated utilizing the following steps:

i. Identify the contract, or contracts, with a customer;

ii. Identify the performance obligations in the contract;

iii. Determine the transaction price;

iv. Allocate the transaction price to the performance obligations in the contract;

v. Recognize revenue when the Company satisfies a performance obligation.

For the six months ended June 30, 2025, our revenues currently consist of a sale of product used for lumber products for fire prevention and an installation of self-contained sprinkler systems. Revenue is recognized at a point in time, that is which the risks and rewards of ownership of the product transfer from the Company to the customer.

**Deferred revenue**

Deferred revenue consists of advanced payments for our service that have not been rendered. Revenue is recognized when service is rendered. As of June 30, 2025 and December 31, 2024, total deferred revenue was $94,860 and $0, respectively. Deferred revenue is expected to be recognized as revenue within the third quarter of 2025.

**Cost of Revenue**

For the three and six months ended June 30, 2025 and 2024, cost of revenue consisted of:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** | **2025** | **2024** |
| Cost of inventory | $304791 | $58529 | $821234 | $134725 |
| Freight and shipping | 5899 | 5620 | 6059 | 8150 |
| Consulting and advisory-related party |  | 6200 | 4000 | 10400 |
| Royalty and sales commission-related party  |  | 19590 | 91290 | 62736 |
| Rent expense | 60702 | 38046 | 101069 | 56189 |
| Total cost of revenue  | $371392 | $127985 | $1023652 | $272200 |

---

**Basic and Diluted Net Loss Per Common Share**

Basic earnings (loss) per common share is computed by dividing net income (loss) available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per common share is computed by dividing income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued.

For the six months ended June 30, 2025 and 2024, the following common stock equivalents were excluded from the computation of diluted net loss per share as the result of the computation was anti-dilutive.

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **June 30,**<br>**2024** |
|  | **Shares**  | **Shares**  |
| Convertible notes  | 12226924 |  |
| Common stock warrants  | 11385125 |  |
| Convertible Series C Preferred Stock  | 40730140 | 49059894 |
|  | 64342189 | 49059894 |

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**Deferred Offering Costs**

Pursuant to ASC 340-10-S99-1, costs directly attributable to an offering of equity securities are deferred and would be charged against the gross proceeds of the offering as a reduction of additional paid-in capital. Deferred offering costs consist of underwriting, legal, accounting, and other expenses incurred through the balance sheet date that are directly related to the proposed public offering. Should the proposed public offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be expensed.

As of June 30, 2025 and December 31, 2024, deferred offering costs consisted of the following:

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31**<br>**2024** |
| Legal fees  | $94537 | $52131 |
| General and administrative expenses | 90790 | 73973 |
| Total  | $185327 | $126104 |

---

**Stock-Based Compensation**

The Company accounts for employee and non-employee stock awards under ASC 718, Compensation – Stock Compensation, whereby equity instruments issued to employees for services are recorded based on the fair value of the instrument issued and those issued to nonemployees are recorded based on the fair value of the consideration received or the fair value of the equity instrument, whichever is more reliably measurable. Equity grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related to the termination of service.

During the three and six months ended June 30, 2025 and 2024, stock-based compensation was recognized as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025**  | **2024**  | **2025**  | **2024**  |
| Management compensation | $1867669 | $- | $2288389 | $- |
| Professional fees  |  | 200000 | 2368020 | 1175250 |
| Professional fees - related party |  |  |  | 1422750 |
| Advertising and marketing |  | 160000 |  | 160000 |
| Financing expense | 2511855 | - | 8679189 | - |
|  | $4379524 | $360000 | $13335598 | $2758000 |

---

Compensation cost for stock awards, which include common shares, Series C Preferred Stock, warrants and performance stock units ("PSUs"), is measured at the fair value on the grant date and recognized as expense, net of estimated forfeitures, over the related service or performance period. The fair value of stock awards is based on the quoted price of our common stock on the grant date and Series C Preferred stock as if converted to common stock. We measure the fair value of PSUs using a Monte Carlo valuation model and warrants using a Black Scholes valuation model. Compensation cost for PSUs are recognized using the derived service period and accelerated if the condition is satisfied at an earlier date.

**Recently Issued Accounting Pronouncements**

In November 2024, the FASB issued ASU 2024-03, *"Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures"* (Subtopic 220-40): Disaggregation of Income Statement Expenses, requiring public entities to disclose additional information about specific expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2024-03.

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In December 2023, the FASB issued ASU 2023-09, *"Income Taxes"* (Topic 740): Improvements to Income Tax Disclosures, which requires, among other things, additional disclosures primarily related to the income tax rate reconciliation and income taxes paid. The expanded annual disclosures are effective for our year ending December 31, 2025. The Company is currently evaluating the impact that ASU 2023-09 will have its financial statements and whether we will apply the standard prospectively or retrospectively.

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its financial statements.

**Note 3 – Inventory**

As of June 30, 2025 and December 31, 2024, inventory consisted of the following:

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Finished goods | $171449 | $50469 |
| Raw materials | 238474 | 274188 |
|  | $409923 | $324657 |

---

The Company did not impair any inventories as unsalable for the six months ended June 30, 2025 and 2024.

**Note 4 – Equipment, net**

As of June 30, 2025 and December 31, 2024, equipment consisted of the following:

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| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Cost: |  |  |
| Equipment | $17186 | $9366 |
| Vehicles | 494152 | 120155 |
|  | 511338 | 129521 |
| Less: accumulated depreciation | (45827) | (18147) |
| Equipment, net | $465511 | $111374 |

---

During the six months ended June 30, 2025, the Company purchased vehicles for $381,817, of which $118,776 was purchased with a financing loan and transferred vehicles from inventory of $95,297 due to a change of use.

For the three and six months ended June 30, 2025 and 2024, depreciation consists of:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025**  | **2024**  | **2025**  | **2024**  |
| Depreciation | $15124 | $274 | $27680 | $934 |

---

<u>Financing loan</u>

The Company had a financing loan for the purchase of vehicle for the year ended December 31, 2024. The loan repayment is $1,898 per month for the first 36 months and then $2,590 per month for 30 months with an interest rate of $11.54%. For the six months ended June 30, 2025, the Company repaid $101,478, of which $4,629 is for interest. In March 2025, the Company fully paid this financing loan.

The Company had a financing loan for the purchase of vehicle in January 2025. A repayment of loan schedule was $1,977 per month for the 72 months with an interest rate of $10.84%. For the six months ended June 30, 2025, the Company repaid $104,732, of which $955 is for interest. In March 2025, the Company fully paid this financing loan.

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**Note 5 – Intangible Assets, net**

In 2022, the Company acquired the intellectual property of MFB California, 19 patents centered around its MFB Technology for the prevention and spread of wildfires. MFB California currently holds 31 granted patents and 56 pending patent applications. The granted patents include MFB California's main chemistry and applications. MFB California has 21 trademarks and various copyrights. Internally generated patents, trademarks and copyrights, are expensed as incurred.

As of June 30, 2025 and December 31, 2024, finite lived intangible assets consisted of the following:

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| | | |
|:---|:---|:---|
|  | **June 30,** <br>**2025** | **December 31,** <br>**2024** |
| Acquired patents (19) | $4195353 | $4195353 |
| Accumulated amortization | (619828) | (495862) |
| Intangible assets, net | $3575525 | $3699491 |

---

Estimated future amortization expense for finite lived intangibles are as follows:

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| | |
|:---|:---|
| 2025 remaining  | $123966 |
| 2026 | 247931 |
| 2027 | 247931 |
| 2028 | 247931 |
| 2029 | 247931 |
| Thereafter | 2459835 |
|  | $3575525 |

---

As of June 30, 2025, the weighted-average useful life is 14.63 years.

During the three and six months ended June 30, 2025 and 2024, amortization expense is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025**  | **2024**  | **2025**  | **2024**  |
| Amortization | $61983 | $62491 | $123966 | $125666 |

---

**Note 6 – Lease**

In March 2022, the Company entered into an operating lease for a warehouse, with a term of eighteen (18) months. In July 2023, the Company amended the contract and extended the lease term to July 2025. In May 2025, the Company terminated this lease and wrote off of right-of use asset and lease liability.

In January 2025, the Company entered into an operating lease for our office and warehouse. The commencement date is April 1, 2025, and the termination date is March 31, 2030. The Company records a security deposit of $36,991.

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<u>Short-term lease</u>

The Company has some rental equipment with a month-to-month contract and leases commercial space for office, retail and warehousing, which is under one year lease agreement and expires June 30, 2025.

For the three and six months ended June 30, 2025 and 2024, right-of-use asset and lease information about the Company's operating lease consist of:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| The components of lease expense were as follows: |  |  |  |  |
| Operating lease cost | $65811 | $21498 | $87309 | $42996 |
| Short-term lease cost | 4553 | 17348 | 34146 | 20041 |
| Variable lease cost | 10472 | 11582 | 13204 | 11282 |
| Total lease cost | $80836 | $50428 | $134659 | $74319 |

---

Supplemental cash flow information related to leases was as follows:

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| | | |
|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025** | **2024** |
| Cash paid for operating cash flows from operating leases  | $106164 | $54278 |
| Right-of-use asset obtained in exchange for new operating lease liabilities | $865218 | $- |
| Weighted-average remaining lease term - operating leases (year) | 4.75 | 1.08 |
| Weighted-average discount rate — operating leases | 7.00% | 6.50% |

---

The following table outlines maturities of our lease liabilities as of June 30, 2025:

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| | |
|:---|:---|
| 2025 - remaining of six months | $94860 |
| 2026 | 195412 |
| 2027 | 203228 |
| 2028 | 211357 |
| 2029 | 219812 |
| Thereafter | 55486 |
|  | 980155 |
| Less: Imputed interest  | (147693) |
| Operating lease liabilities  | $832462 |

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**Note 7 – Convertible Notes**

The components of convertible notes as of June 30, 2025 and December 31, 2024, were as follows:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Payment date**  | <br>**Principal**<br>**Amount** | <br>**Maturity date**  | **Effective**<br>**Interest** <br>**Rate** | **Stated**<br>**Interest** <br>**Rate**  | <br> **June 30,** <br>**2025** | <br> **December 31,** <br>**2024** |
| July 15, 2024 | $795000 | July 15, 2025 | 390% | 10% | $- | $795000 |
| August 15, 2024 | $326000 | August 15, 2025 | 398% | 10% |  | 326000 |
| November 15, 2024 | $100000 | November 15, 2025 | 511% | 10% | 100000 | 100000 |
| December 15, 2024 | $75000 | December 15, 2025 | 815% | 10% | 75000 | 75000 |
| February 7, 2025 | $1500000 | February 7, 2026 | 416% | 10% | 1500000 |  |
| February 15, 2025 | $575000 | February 15, 2026 | 511% | 10% | 575000 | - |
| Total Convertible notes |  |  |  |  | $2250000 | $1296000 |
| Less: Unamortized debt discount  |  |  |  |  | (1972407) | (1099923) |
|  |  |  |  |  | 277593 | 196077 |
| Less: Current portion  |  |  |  |  | (277593) | (196077) |
| Long-term portion  |  |  |  |  | $- | $- |

---

On July 15, 2024 and August 15, 2024, the Company entered into seventeen (17) convertible notes ($1,121,000) and warrants (1,401,250 shares of common stock). The convertible notes have a term of twelve (12) months, at an interest rate of 10% per annum and warrants are with a term of five (5) years, at exercise price of $0.50 per share. The outstanding principal amount of convertible notes and unpaid interest is convertible at conversion price of the lesser of (i) $0.40 or (ii) a 30% discount to the price of shares issued in connection with a qualified financing. In November and December, the Company entered into three (3) convertible notes ($175,000) and warrants (218,750 shares of common stock). The Company paid 8% financing fee of $89,680, accrued fee of $14,000 and recorded financing fee as debt discount.

In February 2025, the Company entered into eleven (11) convertible notes ($2,075,000) and warrants (2,593,750 shares of common stock). The convertible notes have a term of twelve (12) months, at an interest rate of 10% per annum and warrants are with a term of five (5) years, at exercise price of $0.50 per share. The outstanding principal amount of convertible notes and unpaid interest is convertible at conversion price of the lesser of (i) $0.40 or (ii) a 30% discount to the price of shares issued in connection with a qualified financing. The Company paid 8% financing fee of $166,000 recorded financing fee as debt discount.

During the six months ended June 30, 2025, the Company recognized the debt discount of $2,075,000 (Original Issued Discounts of discount of $166,000, warrants of $882,000 and derivative liability of $1,027,000).

In June 2025, 17 note holders converted convertible notes issued in July and August 2024 of $1,121,000 and accrued interest of $97,353 into 3,045,892 shares of common stock. As a result, the Company settled convertible notes, accrued interest, debt discount of $381,522, and derivative liability of $2,127,000, and recorded loss on settlement of debt of $2,640,611.

During the six months ended June 30, 2025 and 2024, the Company recognized interest expense of $136,931 and $135 and amortization of debt discount of $820,994 and $0, respectively. During the three months ended June 30, 2025 and 2024, the Company recognized interest expense of $76,673 and $0 and amortization of debt discount of $475,166 and $0, respectively. As of June 30, 2025 and December 31, 2024, the Company recorded accrued interest of $90,301 and $50,723, respectively.

The Company determined that the conversion feature met the definition of a liability in accordance with ASC Topic No. 815-40, *Derivatives and Hedging - Contracts in Entity's Own Stock* and therefore bifurcated the embedded conversion option once the note becomes convertible and accounted for it as a derivative liability. The fair value of the conversion feature was recorded as a debt discount and "day 1" derivative loss for the excess amount of debt discount and amortized to interest expense over the term of the note.

**Note 8 – Derivative Liability**

***Fair Value Assumptions Used in Accounting for Derivative Liabilities***

ASC 815 requires us to assess the fair market value of derivative liabilities at the end of each reporting period and recognize any change in the fair market value as other income or expense.

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Binomial Lattice model to calculate the fair value as of June 30, 2025 and December 31, 2024.

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| *[Table of contents](#TOC2)* |

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For the six months ended June 30, 2025 and the year ended December 31, 2024, the estimated fair values of the liabilities measured on a recurring basis, used the following significant assumptions:

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31**<br>**2024** |
| Expected term  | 0.13 - 1 year | 0.29 years |
| Risk-free interest rate  | 4.02 - 4.30% | 4.15% |
| Stock price at valuation date | $&nbsp;&nbsp;&nbsp;&nbsp;0.89 - 1.95% | 0.73 |
| Expected average volatility  | 60.5 - 146.5% | 95.41% |
| Expected dividend yield |  |  |

---

The following table summarizes the changes in the derivative liabilities during the six months ended June 30, 2025:

---

| | |
|:---|:---|
| Fair Value Measurements Using Significant Observable Inputs (Level 3) | Fair Value Measurements Using Significant Observable Inputs (Level 3) |
| Balance - December 31, 2024 | $1055233 |
| Addition of new derivatives recognized as debt discounts | 1027000 |
| Settled on issuance of common stock | (2127000) |
| Loss on change in fair value of the derivative | 3777767 |
| Balance - June 30, 2025 | $3733000 |

---

**Note 9 – Accounts payable and accrued liabilities**

As of June 30, 2025 and December 31, 2024, accounts payable and accrued liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30,** <br> **2025**  | **December 31,** <br> **2024**  |
| Accounts payable | $343329 | $48195 |
| Accrued interest | 90321 | 51663 |
| Credit card | 939 | 4540 |
| Sales tax payable | 61987 | 11737 |
| Other liabilities | 36409 | 70849 |
|  | $532985 | $186984 |

---

**Note 10 – Related Party Transactions**

The related parties that had material transactions for the six months ended June 30, 2025 and 2024, consist of the following:

---

| | |
|:---|:---|
| **Related Party** | **Nature of Relationship to the Company** |
| A | An Ohio limited liability company - a significant shareholder |
| B | Owner of A and our Chief Executive Officer of the Company from April 1, 2025 |
| C | Chief Executive Officer of the Company until March 31, 2025 and Vice President of Operations from April 1, 2025. |
| D | A California limited liability company owned by a related party E |
| E | Significant shareholder and our Chief Technology Officer |
| F | Director and Chief Executive Officer of GEVI Insurance Holdings Inc. |
| G | A Delaware limited liability company – Series A Preferred shareholder |
| H | Subsidiary - MFB Ohio board advisor, resigned during 2024 |
| I | Subsidiary - MFB Ohio board advisor, resigned during 2024 |
| J | Subsidiary - MFB Ohio board advisor |
| K | Subsidiary - MFB Ohio board advisor |
| L | Subsidiary - MFB Ohio board advisor |

---

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| *[Table of contents](#TOC2)* |

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For the six months ended June 30, 2025 and 2024, expenses to related parties and their nature consists of:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Six Months Ended** | **Six Months Ended** | | |
| | **June 30,** | **June 30,** | | |
| <br>**Related Party** | **2025** | **2024** | <br>**Nature of transaction** | <br>**Financial Statement Line Item** |
| A | $2103600 | $- | 150,000 Series C preferred stock for consulting fee | Professional fees - related party |
| A | $25300 | $2180 | Payment operating expenses on behalf of the Company  | Operating expenses  |
| A | $25000 | $60000 | Repayment loan  | Due to related party  |
| D | $21600 | $41600 | Cash paid for consulting fees | Professional fees - related party |
| D | $4000 | $10400 | Cash paid for consulting and advisory fees | Cost of revenue - related party |
| E | $- | $69264 | Cash paid for management fee | Professional fees - related party |
| E | $91290 | $62736 | Cash paid for royalty and sales commissions  | Cost of revenue - related party |
| F | $420720 | $- | 30,000 Series C preferred stock for management compensation  | Management compensation  |
| F | $- | $348000 | 20,000 shares of Series C preferred stock for advisory fee | Professional fees - related party |
| G | $2511855 | $- | 69,007 Series C preferred stock for services  | Financing expense |
| H | $- | $85980 | 100,000 shares of common stock issued for advisory fee | Professional fees - related party |
| I | $- | $214950 | 250,000 shares of common stock issued for advisory fee | Professional fees - related party |
| J | $- | $429900 | 500,000 shares of common stock issued for advisory fee | Professional fees - related party |
| K | $- | $128970 | 150,000 shares of common stock issued for advisory fee | Professional fees - related party |
| L | $- | $214950 | 250,000 shares of common stock issued for advisory fee | Professional fees - related party |

---

For the three months ended June 30, 2025 and 2024, expenses to related parties and their nature consists of:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | | |
| | **June 30,** | **June 30,** | | |
| <br>**Related Party** | **2025** | **2024** | <br>**Nature of transaction** | <br>**Financial Statement Line Item** |
| B | $25300 | $- | Payment operating expenses on behalf of the Company  | Due to related party |
| B | $25000 | $- | Repayment loan  | Due to related party |
| D | $5600 | $24800 | Cash paid for consulting fees | Professional fees - related party |
| D | $- | $6200 | Cash paid for consulting and advisory fees | Cost of revenue - related party |
| E | $- | $40410 | Cash paid for management fee | Professional fees - related party |
| E | $- | $19590 | Cash paid for royalty and sales commissions  | Cost of revenue - related party |
| G | $2511855 | $- | 69,007 Series C preferred stock for services  | Financing expense |

---

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***Convertible notes – related parties***

The components of convertible notes as of June 30, 2025 and December 31, 2024, were as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <br>**Payment date**  | <br>**Principal**<br>**Amount** | <br>**Maturity date**  | **Effective**<br>**Interest** <br>**Rate** | **Stated**<br>**Interest** <br>**Rate**  | <br> **June 30,** <br>**2025** | <br> **December 31,** <br>**2024** |
| December 1, 2024 | $576693 | December 31, 2025 |  | 10% | $576693 | $576693 |
| February 2025 | $2000000 | February 28, 2026 | 320% | 10% | 2000000 | - |
| Total Convertible notes |  |  |  |  | $2576693 | $576693 |
| Less: Unamortized debt discount  |  |  |  |  | (1644691) | - |
|  |  |  |  |  | 932002 | 576693 |
| Less: Current portion  |  |  |  |  | (932002) | (576693) |
| Long-term portion  |  |  |  |  | $- | $- |

---

On December 31, 2024, the Company issued a convertible note of $576,693, to related party A, in exchange for the amount due to related party. The convertible note has a term of twelve (12) months, at an interest rate of 10% per annum. The outstanding principal amount of convertible note and unpaid interest is convertible at a fixed conversion price of $0.36. The conversion price is a fixed price and the Company determined that conversion feature did not need to be bifurcated. The Company has accounting for the convertible debt at amortized cost under ASC 470-20.

In February 2025, the Company entered into one (1) subscription agreement for convertible notes ($2,000,000) and warrants (2,500,000 shares of common stock) with a related party G. The convertible notes have a term of twelve (12) months, at an interest rate of 10% per annum and warrants are with a term of five (5) years, at exercise price of $0.50 per share. The outstanding principal amount of convertible notes and unpaid interest is convertible at a fixed conversion price of $0.40. The obligations of the Company under the convertible note are secured by a pledge of the Company's membership interests in MFB Ohio. In the event of a default, related party G could proceed against the equity of MFB Ohio pledged to collateralize the convertible note. MFB Ohio owns the Company's intellectual property portfolio. The Company paid 8% original discount of $160,000 and financing fee of $63,918 and recorded these financing cost as debt discount. The Company has accounted for the convertible debt at amortized cost under ASC 470-20.

During the six months ended June 30, 2025, the Company recognized the debt discount of $1,824,087 (Original Issued Discounts of discount and financing fee of $223,918 and warrants of $1,600,169).

During the three and six months ended June 30, 2025, the Company recognized interest expenses of $64,241 and $95,447 and amortization of debt discount of $148,546 and $179,396, respectively. As of June 30, 2025, the Company recorded accrued interest of $95,447.

---

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**Note 11 – Stockholders' Equity**

***Amended Articles of Incorporation***

Effective on March 17, 2025, the Company amended its Articles of Incorporation to increase the authorized shares to 1,030,000,000 shares, of which 1,000,000,000 shares are common stock and 30,000, 0000 shares are preferred stock.

***Preferred Shares***

*Shares Outstanding*

The Company is authorized to issue up to 30,000,000 shares of Preferred Stock, par value $0.0001 per share.

***Series A Preferred Stock***

The Company originally designated 10,000,000 shares of its Preferred Stock as Series A Convertible Preferred Stock. On March 17, 2025, the Company amended and restated its Series A Convertible Preferred Stock to designate 10,000,000 shares of its Preferred Stock as Series A Preferred Stock, par value $0.0001, with the following rights and privileges.

*<u>Dividends</u>*. Holders of shares of Series A Preferred Stock are not entitled to receive dividends.

*<u>Voting Rights</u>*. Each share of Series A Preferred Stock is entitled to 1,000 votes on all matters submitted to a vote of the holders of Common Stock, voting together with the holders of Common Stock as a single class. Holders of shares of Series A Preferred Stock do not have cumulative voting rights. This means a holder of a single share of Series A Preferred Stock cannot cast more than one vote for each position to be filled on the Board of Directors.

*<u>Other Rights</u>*. Shares of Series A Preferred Stock are not entitled to a liquidation preference. The holders of the Series A Preferred Stock may not be redeemed without the consent of the holders of the Series A Preferred Stock. The holder of the Series A Preferred Stock are not entitled to pre-emptive rights or subscription rights.

As of June 30, 2025 and December 31, 2024, there were 10,000,000 shares of Series A Preferred stock issued and outstanding.

***Series C Convertible Preferred Stock***

The Company has designated 10,000,000 shares of its Preferred Stock as Series C Convertible Preferred Stock with the following rights and privileges.

*<u>Dividends</u>*. Holders of shares of Series C Convertible Preferred Stock are not entitled to receive dividends.

*<u>Voting Rights</u>*. The holders of the Series C Convertible Preferred Stock are not entitled to vote.

*<u>Conversion Rights</u>*. Each share of Series C Convertible Preferred Stock outstanding as such time shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into 20 shares of the Common Stock of the Company (the "Conversion Ratio"). Such Conversion Ratio, and the rate at which shares of Series C Convertible Preferred Stock may be converted into shares of Common Stock, shall be subject to adjustment.

*<u>Other Rights</u>*. The holders of the Series C Convertible Preferred Stock are not entitled to a liquidation preference. The holders of the Series C Convertible Preferred Stock may not be redeemed without the consent of the holders of the Series C Convertible Preferred Stock. The holder of the Series C Convertible Preferred Stock are not entitled to pre-emptive rights or subscription rights.

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During the six months ended June 30, 2025, the Company issued 344,007 shares of Series C Preferred Stock as follows:

---

| |
|:---|
| 27,500 shares for purchase subscriptions of $260,000, at prices of $4.00 or $6.00 per share |
| 236,507 shares for services, valued at $4,860,875 at market price on issuance dates. |
| 80,000 shares for compensation, valued at $1,520,720 at market price on issuance dates. |

---

In January and April 2025, the holders of the Convertible Series C Preferred Stock converted 776,831 and 532,638 shares of the Company's Convertible Series C Preferred Stock into 15,536,620 and 10,652,760 shares of the Company's common stock respectively.

As of June 30, 2025 and December 31, 2024, there were 2,036,507 and 3,001,969 shares of the Company's Series C Convertible Preferred Stock issued and outstanding, respectively.

***Common Stock***

The holders of shares of our Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders. The holders of Common Stock are entitled to equal dividends and distributions, with respect to the Common Stock when, as, and if declared by the Board of Directors from funds legally available for such dividends. No holder of Common Stock has any preemptive right to subscribe for any of our stock nor are any shares subject to redemption. Upon our liquidation, dissolution, or winding up, and after payment of creditors and any amounts payable to senior securities, the assets will be divided pro rata on a share-for-share basis among the holders of the shares of Common Stock.

No holder of shares of Common Stock of the Company shall be entitled as of right to purchase or subscribe for any part of any unissued stock of the Company or of any new or additional authorized stock of the Company of any class whatsoever, or any issue of securities of the Company convertible into stock, whether such stock or securities be issued for money or consideration other than money or by way of dividend, but any such unissued stock or such new or additional authorized stock or such securities convertible into stock may be issued and disposed of to such persons, firms, corporations and associations, and upon such terms as may be deemed advisable by the Board of Directors without offering to stockholders then of record or any class of stockholders any thereof upon the same terms or upon any terms.

During the six months ended June 30, 2025, the Company issued 29,245,272 shares of common stock as follows:

---

| |
|:---|
| 26,189,380 shares for conversion of Series C Preferred Stock. |
| 3,045,892 shares for conversion of debt of $5,604,442. |
| 10,000 shares for services, valued at $19,000. |

---

As of June 30, 2025 and December 31, 2024, there were 66,086,853 and 36,841,581 shares of the Company's common stock issued and outstanding, respectively.

***Management stock compensation (PSU)***

On April 1, 2025, the Company entered into the consulting agreement with our CEO. The consulting fee is as s follows;

---

| |
|:---|
| 70,000 shares of the Company's Series C Convertible Preferred Stock when the Company's market capitalization reaches and sustains a market capitalization for 30 consecutive days above $120,000,000; |
| 70,000 shares of the Company's Series C Convertible Preferred Stock when the Company's market capitalization reaches and sustains a market capitalization for 30 consecutive days above $150,000,000; |
| 70,000 shares of the Company's Series C Convertible Preferred Stock when the Company's market capitalization reaches and sustains a market capitalization for 30 consecutive days above $200,000,000; and |
| 70,000 shares of the Company's Series C Convertible Preferred Stock when the Company's market capitalization reaches and sustains a market capitalization for 30 consecutive days above $250,000,000 |

---

The Company used the Monte Carlo model to calculate the fair value of compensation and estimated the grant date fair value of $1,932,000. The Company records compensation expense over the term of a derived service period unless the condition is satisfied at an earlier date. During the three and six months ended June 30, 2025, the Company recorded compensation expense of $767,669. As of June 30, 2025, unrecognized compensation cost for unvested equity awards was $1,164,331, which is expected to be recognized over a remaining weighted-average period of 0.40 years.

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For the six months ended June 30, 2025, the estimated fair values of the compensation measured used the following significant assumptions:

---

| | |
|:---|:---|
|  | **April 1**<br>**2025** |
| Derived service period  | 0.56 – 0.76 year |
| Risk-free interest rate  | 3.97% |
| Stock price at valuation date | $1.10 |
| Expected average volatility  | 108.5% |
| First Capitalization Thresholder per share price  | $2.29 |
| Second Capitalization Thresholder per share price | $2.86 |
| Third Capitalization Thresholder per share price | $3.82 |
| Fourth Capitalization Thresholder per share price | $4.77 |

---

***Warrants***

The Company issued a total of 5,093,750 warrants for a period of five years at an exercise price per share of $0.50 in connection with convertible notes for the six months ended June 30, 2025. The Company recorded the warrants of $710,845 to additional paid in capital.

The Company issued 4,000,000 warrants for a period of five years at an exercise price per share of $0.01 for consulting services, for the six months ended June 30, 2025. Each 1,000,000 warrants are exercisable on September 7, 2025, March 7, 2026, September 7, 2026 and March 7, 2027. The Company recorded a financing expense of $6,167,334 to additional paid in capital.

The Company issued a total of 671,375 warrants at an exercise price per share of $0.44 for financing expense of convertible notes issued in 2025 and 2024. Warrants are exercisable on September 7, 2025, and are for a period of five years following the initial exercise date. The Company recorded the warrants of $827,991 to additional paid in capital.

The Company issued a total of 1,620,000 warrants for a period of five years at an exercise price per share of $0.50 in connection with convertible notes for the year ended December 31, 2024. The Company recorded the warrants of $1,654,178 to additional paid in capital.

We evaluate all warrants issued to determine the appropriate classification under ASC 480 and ASC 815. In addition to determining classification, we evaluate these instruments to determine if such instruments meet the definition of a derivative. The classification of all outstanding warrants, including whether such instruments should be recorded as equity, is evaluated at the end of each reporting period.

The warrants, were deemed to be equity instruments, and were valued using a Black Scholes valuation model. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.

The Company utilized the following assumptions:

---

| | |
|:---|:---|
|  | **June 30,**<br>**2025** |
| Expected term | 5.00 years |
| Expected average volatility | 49.0% - 57.5 |
| Risk-free interest rate | 3.99% - 4.29 |
| Expected dividend yield |  |

---

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A summary of activity of the warrants during the six months ended June 30, 2025 as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Warrants Outstanding** | **Warrants Outstanding** | |
|  | <br>**Shares** | **Weighted Average**<br>**Exercise Price** | **Weighted Average** <br>**Remaining**<br>**Contractual life (in years)** |
| Outstanding, December 31, 2024 | 1620000 | $0.50 | 4.61 |
| Granted | 9765125 | 0.30 | 5.04 |
| Exercised |  |  |  |
| Forfeited/canceled | - | - | - |
| Outstanding, June 30, 2025 | 11385125 | $0.32 | 4.62 |
| Exercisable, June 30, 2025 | 6713750 | $0.50 | 4.52 |

---

The intrinsic value of the warrants as of June 30, 2025 is $18,508,714.

**Note 12 – Disaggregated revenue and Concentration**

During the three and six months ended June 30, 2025 and 2024, disaggregated revenue was as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  | **June 30,**  | **June 30,**  |
|  | **2025**  | **2024**  | **2025**  | **2024**  |
| Products sale | $446785 | $171269 | $1051267 | $604287 |
| Product installation service | 240853 | 27400 | 605753 | 27400 |
|  | $687638 | $198669 | $1657020 | $631687 |

---

During the three and six months ended June 30, 2025 and 2024, customer and supplier concentration (more than 10%) were as follows:

***Revenue and accounts receivable***

Recurring customers do not represent a material percentage of our revenue and accounts receivable for the three and six months ended June 30, 2025 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended** | **Three months ended** | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Number of customers (more than 10% revenue) | 3 | 5 | 1 | 4 |
| Total revenue of top 5 customers | 78.4% | 94.9% | 40.7% | 82% |

---

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| Number of customers (more than 10% of accounts receivable) | 3 | 3 |
| Total % of accounts receivable balance (more than 10%) | 62.3% | 86.3% |

---

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| *[Table of contents](#TOC2)* |

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***Purchases and accounts payable***

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Percentage of Purchases** | **Percentage of Purchases** | **Percentage of Purchases** | **Percentage of Purchases** | **Percentage of** | **Percentage of** |
|  | **For three months ended** | **For three months ended** | **For six months ended** | **For six months ended** | **Accounts payable for purchase** | **Accounts payable for purchase** |
|  | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **June 30,** | **December 31** |
|  | **2025** | **2024** | **2025** | **2024** | **2025** | **2024** |
| Supplier A | 25.1% |  | 36.5% |  |  |  |
| Supplier B | 6.2% |  | 5.0% | 7.0% | 89.5% | 74.5% |
| Supplier C |  | 72.6% |  | 59.3% |  |  |
| Supplier D | 2.9% | 4.6% | 2.8% | 15.8% | 10.5% | 25.5% |
| Supplier E |  |  | 15.2% |  |  |  |
| Supplier G | 43.1% |  | 19.8% |  |  |  |
| Total (as a group) | 77.3% | 77.2% | 79.3% | 82.1% | 100.0% | 100.0% |

---

To reduce risk, the Company closely monitors the amounts due from its customers and assesses the financial strength of its customers through a variety of methods that include, but are not limited to, engaging directly with customer operations and leadership personnel, visiting customer locations to observe operating activities, and assessing customer longevity and reputation in the marketplace. As a result, the Company believes that its accounts receivable credit risk exposure is limited.

**Note 13 – Subsequent Events**

Management has evaluated subsequent events through August 14, 2025, which is the date these interim unaudited consolidated financial statements were available to be issued.

The Company issued 464,128 shares of common stock issued for conversion of debt and accrued interest of $185,651.

The Company and Univest Securities, LLC have agreed that, concurrently with the closing of the Company's offering on Form S-1, warrants (the "Univest Warrants") to purchase up to 4,671,375 shares of common stock, would be terminated in full and rendered null and void, and all past, current, or future obligations under the Univest Warrants shall be extinguished, and there shall be no surviving right, title or interest in or to the Univest Warrants or any shares purchasable thereunder. The Univest Warrants were originally issued on March 7, 2025, in connection with financial advisory services and private placement transactions conducted by Univest Securities, LLC.

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

**FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements. The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. This report and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management's plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance or results of current and anticipated sales efforts, expenses, the outcome of contingencies, such as legal proceedings, and financial results.

We caution that the factors described herein, and other factors could cause our actual results of operations and financial condition to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Our unaudited financial statements are stated in United States Dollars (USD) and are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States Dollars and all references to "common shares" refer to the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our" and "our company" mean General Enterprise Ventures, Inc.

**General Overview**

General Enterprise Ventures, Inc., was originally incorporated under the laws of the State of Nevada on March 14, 1990. When used in these notes, the terms "GEVI," "Company," "we," "us" and "our" mean General Enterprise Ventures, Inc. and all entities included in our unaudited consolidated financial statements.

In January 2021, Board of Directors of the Company approved redomiciling the Company in Delaware. On March 31, 2021, the Company formed General Entertainment Ventures, Inc. in Delaware as a wholly owned subsidiary of the Company ("GEVI"). The purpose of the formation of GEVI was to merge the Company into GEVI pursuant to Section 251(g) of the General Corporation Law of the State of Delaware. On April 10, 2021, after approval by the board of directors and shareholders of the Company, the Company was merged into GEVI pursuant to an Agreement and Plan of Merger dated as of the same date. GEVI is the accounting and legal acquiror of the Company.

On June 3, 2021, after approval by the board of directors and shareholders of the Company, the Company was redomiciled to the State of Wyoming. On October 11, 2021, after approval by the board of directors and shareholders of the Company, the Company was renamed General Enterprise Ventures, Inc., in the State of Wyoming.

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**Corporate Changes**

Effective June 25, 2024, the Company formed and organized a wholly owned subsidiary, GEVI Insurance Holdings Inc., an Ohio corporation ("GEVI Insurance"), to enter the wildfire insurance markets utilizing the Company's flame retardant and flame suppression product. Effective February 21, 2025, the Company formed MFB Insurance Company, Inc., a Hawaii corporation ("MFBI") and organized it as a wholly owned subsidiary of GEVI Insurance to act as a captive insurance company to enter the wildfire insurance market. MFBI was formed to act as a captive insurance company to reinsure real property protected with the Company's CitroTech product. MFBI is not currently able to reinsure real property.

**Results of Operations**

The following summary of our results of operations should be read in conjunction with our unaudited interim financial statements for the three and six months ended June 30, 2025 and 2024, which are included herein.

The Company is in the early stage of developing and commercializing their product lines. The Company has been focused historically on obtaining patents and various accreditations. To date, the Company does not have a large customer base, having relied on a few customers, for the commercialization and testing of our CitroTech products and delivery systems. The Company currently does not have an established retail product line nor recurring significant customer base. Therefore, period over period comparisons of our results of operations are not indicative of future results.

The following summary of our results of operations should be read in conjunction with our audited financial statements for the three and six months ended June 30, 2025 and 2024, which are included herein.

***Our results of operations for the three months ended June 30, 2025 and 2024 are summarized below:***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** |<br>**Change**  |<br>**%** |
| Revenue | $687638 | $198669 | $488969 | 246% |
| Operating expenses | 3705277 | 1106073 | 2599204 | 235% |
| Other expense  | 8886380 | - | 8886380 | - |
| Net loss | $(11904019) | $(907404) | $(10996615) | 1212% |

---

*Revenue*

The Company's revenue is associated with revenue from MFB Ohio which acquired intellectual property to fire suppression in April 2022. During the three months ended June 30, 2025, the revenue increased $489,000 from the three months ended June 30, 2024, largely due to the adoption of our technology by the marketplace, including the sale of homebased wildfire defense systems, commercial and fire department chemical sales, and directly spraying residential properties due to the wildfire concerns.

Our revenues consisted of the following:

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| | | |
|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025**  | **2024**  |
| Products sale | $446785 | $171269 |
| Product installation service | 240853 | 27400 |
|  | $687638 | $198669 |

---

Product installation services commenced in the second quarter of 2024.

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Our revenues from significant customers for the three months ended June 30, 2025 and 2024, are as follows:

---

| | | |
|:---|:---|:---|
|  | **Three months ended** | **Three months ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Number of customers (more than 10% revenue) | 3 | 5 |
| Total revenue of top 5 customers | 78.4% | 94.9% |

---

We do not have major sales from recurring customers for the three months ended June 30, 2025 and 2024.

*Operating Expenses*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** |<br>**Change**  |<br>**%** |
| Cost of revenue  | $371392 | $127985 | $243407 | 190% |
| Amortization and depreciation | 77107 | 62765 | 14342 | 23% |
| General and administration | 311503 | 161413 | 150090 | 93% |
| Advertising and marketing | 152608 | 217574 | (64966) | (30%) |
| Payroll and management compensation | 2334698 |  | 2334698 |  |
| Professional fees | 457968 | 536336 | (78368) | (15%) |
| Total operating expenses | $3705277 | $1106073 | $2599204 | 235% |

---

The increase in operating expenses was primarily attributed to increases in cost of revenue and payroll and management compensation.

*Cost of revenue*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended**  | **Three Months Ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** | <br><br>**Change**  | <br><br>**%** |
| Cost of inventory | $304791 | $58529 | $246262 | 421% |
| Freight and shipping | 5899 | 5620 | 279 | 5% |
| Consulting and advisory-related party |  | 6200 | (6200) | (100%) |
| Royalty and sales commission-related party  |  | 19590 | (19590) | (100%) |
| Rent expense | 60702 | 38046 | 22656 | 60% |
| Total cost of revenue  | $371392 | $127985 | $243407 | 190% |

---

During the three months ended June 30, 2025, the cost of revenue increased over the three months ended June 30, 2024, primarily due to an increase in cost of inventory and rent expense.

Cost of inventory consists of product costs, related supplies and direct testing of our CitroTech product and various components required to for installation of Mighty Fire Breaker proactive wildfire defense systems. Cost of inventory increased during the three months ended June 30, 2025, primarily due to an increase in product sales and supplies from increased sales.

Freight and shipping relate to costs for shipping products to customers.

Consulting and advisory services are to a related party company for services related to product installations.

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Royalty and sales commissions was $0, in the three months ended June 30, 2025. The Company recognized an allocated portion of consulting and direct labor costs associated with our revenue as royalty and sales cost of revenue during 2024. In March 2025, the Company entered into a new management contract and is no longer paying for consulting, advisory and royalty fees.

Rent expenses are warehouse rent expenses. The increase in rent expense is primarily because the Company leased a larger commercial space for office, retail and warehousing from April 2025 and the cancelation of one of our warehouse leases in May 2025.

*Amortization and depreciation*

Amortization and depreciation expenses are an amortization of patents and a depreciation of vehicle, and furniture and equipment.

*General and administrative*

General and administrative expenses are office, rent, travel, insurance, website, IT and other office related expenses. For the three months ended June 30, 2025, the Company incurred increased expenditures on our website and IT development and travel as well as general office and insurance expenses from expansion of operations.

*Advertising and marketing* 

The decrease in advertising and marketing during the three months ended June 30, 2025, over the three months ended June 30, 2024, is primarily due to stock-based service compensation of $160,000 in 2024. Excluding stock based compensation, advertising marketing expense increased due to support revenue growth.

*Professional fees*

The professional fees during the three months ended June 30, 2025, primarily included various professional fee for accounting and audit related to SEC filing, legal on patents and other consulting services in 2025. The professional fees during the three months ended June 30, 2024, primarily included stock-based service compensation of $200,000 to consultants for corporate advisory and accounting and audit related to SEC filing, legal on patents and other consulting services in 2024. The decrease in professional fees during the three months ended June 30, 2025, over the three months ended June 30, 2024, is primarily due to reduced stock-based service compensation.

*Payroll and management compensation*

During the three months ended June 30, 2025, management compensation primality included stock-based management compensation of $1,867,000 to our management and cash payments of $325,000 to our management, and payroll to our employees of $142,000.

During the three months ended June 30, 2024, there was no payroll and management compensation.

***Other Expenses***

For the three months ended June 30, 2025 and 2024, the other expenses consisted of $765,000 and $0 interest related to convertible notes payable issued in 2025 and 2024, respectively, change in fair value of derivative liability related to convertible notes payable issued in 2025 and 2024 of $3.0 million and $0, respectively, financing expense of $2.5 million and $0, respectively, and loss on settlement of debt from conversion of debt of $2.6 million and $0, respectively. Financing expense is from 69,007 shares of Series C Convertible Preferred stock issued to a Series A Preferred Shareholder in 2025.

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***Net loss***

The net loss for the three months ended June 30, 2025, increased by approximately $11.0 million as compared to the three months ended June 30, 2024 primarily due to the increase in operating expenses and other expense offset by the increase in revenue.

***Our results of operations for the six months ended June 30, 2025 and 2024 are summarized below:***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** |<br>**Change**  |<br>**%** |
| Revenue | $1657020 | $631687 | $1025333 | 162% |
| Operating expenses | 8133115 | 4175637 | 3957478 | 95% |
| Other expenses  | 16331328 | 883164 | 15448164 | 1749% |
| Net loss | $(22807423) | $(4427114) | $(18380309) | 415% |

---

***Revenue***

The Company's revenue is associated with revenue from MFB Ohio which acquired intellectual property to fire suppression in April 2022. During the six months ended June 30, 2025, the revenue increased $1.0 million from the six months ended June 30, 2024, largely due to the adoption of our technology by the marketplace, including the sale of homebased wildfire defense systems, commercial and fire department chemical sales, and directly spraying residential properties due to the wildfire concerns.

Our revenues consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  |
|  | **June 30,**  | **June 30,**  |
|  | **2025**  | **2024**  |
| Products sale | $1051267 | $604287 |
| Product installation service | 605753 | 27400 |
|  | $1657020 | $631687 |

---

Product installation services commenced in the second quarter of 2024.

Our revenues from significant customers for the six months ended June 30, 2025 and 2024, are as follows:

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| | | |
|:---|:---|:---|
|  | **Six months ended** | **Six months ended** |
|  | **June 30,** | **June 30,** |
|  | **2025** | **2024** |
| Number of customers (more than 10% revenue) | 1 | 4 |
| Total revenue from our top 5 customers | 40.7% | 82% |

---

We do not have major sales from recurring customers for the six months ended June 30, 2025 and 2024.

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***Operating Expenses***

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** |<br>**Change**  |<br>**%** |
| Cost of revenue  | $1023652 | $272200 | $751452 | 276% |
| Amortization and depreciation | 151646 | 126600 | 25046 | 20% |
| General and administration | 522705 | 258738 | 263967 | 102% |
| Advertising and marketing | 257104 | 307980 | (50876) | (17%) |
| Payroll and management compensation | 2973121 | 25000 | 2948121 | 11792% |
| Professional fees | 3204886 | 3185119 | 19767 | 1% |
| Total operating expenses | $8133115 | $4175637 | $3957478 | 95% |

---

The increase in operating expenses was primarily attributed to increases in cost of revenue and payroll and management compensation.

*Cost of revenue*

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  | | |
|  | **June 30,** | **June 30,** | | |
|  | **2025** | **2024** | <br><br>**Change**  | <br><br>**%** |
| Cost of inventory | $821234 | $134725 | $686509 | 510% |
| Freight and shipping | 6059 | 8150 | (2091) | (26%) |
| Consulting and advisory-related party | 4000 | 10400 | (6400) | (62%) |
| Royalty and sales commission-related party  | 91290 | 62736 | 28554 | 46% |
| Rent expense | 101069 | 56189 | 44880 | 80% |
| Total cost of revenue  | $1023652 | $272200 | $751452 | 276% |

---

During the six months ended June 30, 2025, the cost of revenue increased over the six months ended June 30, 2024, primarily due to an increase in cost of inventory, rent and royalty and sales commissions.

Cost of inventory consists of product costs, related supplies and direct testing of our CitroTech product and various components required to for installation of Mighty Fire Breaker proactive wildfire defense systems. Cost of inventory increased during the six months ended June 30, 2025, primarily due to an increase in product sales and supplies from increased sales.

Freight and shipping relate to costs for shipping products to customers.

Consulting and advisory services are to a related party company for services related to product installations.

Royalty and sales commissions increased in the six months ended June 30, 2025, from more revenue. The Company recognized an allocated portion of consulting and direct labor costs associated with our revenue as royalty and sales cost of revenue in 2024 and during the first quarter of 2025. In March 2025, the Company entered into a new contract and there is no longer consulting and advisory and royalty.

Rent expenses are warehouse rent expenses. The increase in rent expense is primarily because the Company leased a larger commercial space for office, retail and warehousing from April 2025 and the cancelation of one of our warehouse leases in May 2025.

*Amortization and depreciation*

Amortization and depreciation expenses are an amortization of patents and a depreciation of vehicle, and furniture and equipment.

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*General and administrative*

General and administrative expenses are office, rent, travel, insurance, website, IT and other office related expenses. For the six months ended June 30, 2025, the Company incurred increased expenditures on our website and IT development and travel as well as general office and insurance expenses from expansion of operations.

*Advertising and marketing* 

The decrease in advertising and marketing during the six months ended June 30, 2025, over the six months ended June 30, 2024, is primarily due to stock-based service compensation of $160,000 in 2024. Excluding stock based compensation, advertising marketing expense increased due to support revenue growth.

*Professional fees*

The professional fees during the six months ended June 30, 2025, primarily included stock-based compensation of $2.1 million to a related party consultant (TC Special Investments, LLC ("TCSI")) and various professional fees for accounting and audit related to SEC filings, legal on patents and other consulting services in 2025. The professional fees during the six months ended June 30, 2024, primarily included stock-based management compensation of $1.4 million to advisors to our subsidiary MFB and stock-based compensation of $1.2 million to various consultants for IT service for software development, legal on patents and other consulting services in 2024.

TCSI's consulting services to the Company include sales and business development, customer relationship management, strategy optimization, investor relations, underwriter interface, coordinating outside counsel and other business aspects at the request of the Board of Directors. In addition to TCSI, stock-based compensation was remitted to certain individuals with fire retardant and flame suppression industry experience, who provided guidance and insight to the Company's management and Board of Directors with respect to the fire retardant and flame suppression industry, business development connections, and oversight during the testing and recognition processes.

*Payroll and management compensation*

During the six months ended June 30, 2025, management compensation primality included stock-based management compensation of $2.3 million to our management and cash payments of $467,000 to our management, and payroll to our employees of $218,000.

During the six months ended June 30, 2024, management compensation primality included cash payment of $25,000 to our former CEO.

***Other Expenses***

For the six months ended June 30, 2025 and 2024, the other expenses consisted of interest expense related to convertible notes payable issued in 2025 and 2024 of $1.2 million and interest expense related to convertible notes issued in 2022 and 2023 and promissory notes issued in 2024 of $1,000, respectively, change in fair value of derivative liability related to convertible notes payable issued in 2025 and 2024 of $3.8 million and $0, respectively, financing expense of $8.7 million and $0, respectively, and loss on settlement of debt of $2.6 million and $882,000, respectively. Settlement of debt in 2025 is conversion of convertible notes issued in 2024 and settlement of debt in 2024 is settlement of notes payable and convertible note issued in 2022. Financing expense is 4 million warrants granted to a financial advisor and 69,007 shares of Series C Convertible Preferred stock issued to a Series A Preferred Shareholder in 2025. The 4 million warrants were subsequently cancelled by the financial advisor subsequent to June 30, 2025.

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***Net loss***

The net loss for the six months ended June 30, 2025, increased by approximately $18.4 million as compared to the six months ended June 30, 2024 primarily due to the increase in operating expenses and other expense offset by the increase in revenue.

**Liquidity and Capital Resources**

*Sources of Liquidity*

Since our inception, we have incurred significant operating losses and negative cash flows from our operations. Our net loss was $22.8 million and $4.4 million for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we completed a debt offering and an equity offering which generated net proceeds of approximately $3.7 million and $0.3 million respectively.

*Working capital*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |<br>**Change**  |<br>**%** |
| Current assets | $3782702 | $1617478 | $2165224 | 134% |
| Current liabilities | $5804997 | $2161883 | $3643114 | 169% |
| Working capital (deficiency) | $(2022295) | $(544405) | $(1477890) | 271% |

---

As of June 30, 2025 and December 31, 2024, the current assets consisted of cash of $2.3 million and $775,000, respectively, inventory of $410,000 and $325,000, respectively accounts receivable of $654,000 and $317,000, respectively, prepaid expenses and other current assets of $206,000 and $74,000, respectively, and deferred offering costs of $185,000 and $126,000, respectively.

As of June 30, 2025 and December 31, 2024, the current liabilities consisted of accounts payable and accrued liabilities of $533,000 and $187,000, respectively, deferred revenue of $95,000 and $0, respectively, convertible notes net of discount of $278,000 and $196,000, respectively, convertible note – related parties of $932,000 and $577,000, respectively, due to related party of $96,000 and $0, respectively financing loan of $0 and $97,000, respectively, derivative liability of $3.7 million and $1.1 million, respectively, and current portion of operating lease liability of $139,000 and $50,000, respectively.

The increase in working capital deficiency in 2025 was primarily due to an increase in the convertible notes and derivative liability related to convertible notes offset by an increase in cash and accounts receivable. The Company had net loss and negative cash flows from our operations. In 2025, the Company generated funds from more debt financing than equity financing.

*Cash Flows*

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

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| | | | |
|:---|:---|:---|:---|
|  | **Six months ended**  | **Six months ended**  | |
|  | **June 30,** | **June 30,** | |
|  | **2025** | **2024** | <br><br>**Change**  |
| Cash used in operating activities | $(1925536) | $(768525) | $(1157011) |
| Cash used in investing activities | $(167744) | $- | $(167744) |
| Cash provided by financing activities | $3645234 | $765325 | $2879909 |
| Net Change in cash  | $1551954 | $(3200) | $1555154 |

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*Operating Activities*

We have not generated positive cash flows from operating activities.

For the six months ended June 30, 2025, net cash flows used in operating activities consisted of a net loss of $22.8 million, reduced by stock-based compensation of $4.7 million, financing expense of $8.7 million, non-cash lease expenses of $86,000, amortization and depreciation of $151,000, amortization of debt discount of $1 million, loss on settlement of debt of $2.6 million and changes in derivative liability of $3.8 million, and increased by net changes in operating assets and liabilities of $101,000.

For the six months ended June 30, 2024, net cash flows used in operating activities consisted of a net loss of $4.4 million, reduced by stock-based compensation of $2.8 million, non-cash lease expenses of $39,000, amortization and depreciation of $127,000, loss on settlement of debt of $882,000 and increased by net changes in operating assets and liabilities of $148,000.

*Investing Activities*

For the six months ended June 30, 2025, the cash flows used in investing activities were $168,000, which was related to the purchase of property and equipment.

The Company did not use any funds for investing activities during the six months ended June 30, 2024.

*Financing Activities*

For the six months ended June 30, 2025, net cash provided by financing activities consisted of $260,000 proceeds from the issuance of Series C Convertible Preferred Stock, $3.7 million from the issuance of convertible promissory notes and associated warrants, $59,000 deferred offering cost payment, repayment of a financing loan of $216,000 and repayments to related party of $25,000.

The basic terms of the convertible promissory notes issued in 2025 are: (i) a 12-month term; (ii) interest of 10% per annum, compounded annually; and (iii) voluntary conversion during the term at a conversion price of $0.40 for each dollar of principal amount. The associated warrants are exercisable for a period of 5 years from the issuance date, for an aggregate of up to 5,093,750 shares at an exercise price of $0.50.

For the six months ended June 30, 2024, net cash provided by financing activities consisted of $165,000 proceed from issuance Series C Preferred Stock, $695,000 advances received from eleven (11) lenders in cash for issuance of convertible promissory notes and warrants, $35,000 deferred offering cost payment and $60,000 repayment of loan -related party.

**Contractual Obligations**

*Convertible notes* 

In first quarter 2025, the Company entered into eleven (11) subscription agreements for convertible notes ($2,075,000) and warrants (2,593,750 shares of common stock). The material terms of this convertible note indebtedness are, (i) a 12-month maturity; (ii) 10% interest per annum, capitalized on the maturity date; (iii) conversion rights in the amount of the principal, either (x) divided by 0.40 or (y) a 30% discount to the price sale of its Common Stock pursuant to a registration statement filed with the SEC and listing of the Common Stock on national securities exchange; and (iv) warrant coverage for five years at the rate of 1.25 shares of Common Stock for each dollar of principal, at an exercise price of $0.50 per share.

*Convertible notes – related party*

On December 31, 2024, the Company issued convertible note of $577,000 to a related party, in exchange for the amount due to related party. The convertible note has a term of twelve (12) months, at an interest rate of 10% per annum. The outstanding principal amount of convertible note and unpaid interest is convertible at a fixed conversion price of $0.36.

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In February 2025, the Company entered into one (1) subscription agreement for convertible notes ($2,000,000) and warrants (2,500,000 shares of common stock) with a related party. The convertible note has a term of twelve (12) months, at an interest rate of 10% per annum and warrants are with a term of five (5) years, at exercise price of $0.50 per share. The outstanding principal amount of convertible notes and unpaid interest is convertible at a fixed conversion price of $0.40. The obligations of the Company under the convertible note are secured by a pledge of the Company's membership interests in MFB Ohio. In the event of a default, the noteholder could proceed against the equity of MFB Ohio pledged to collateralize the convertible note. MFB Ohio owns the Company's intellectual property portfolio.

Lease Agreements

The Company has one lease classified as an operating lease for an office and warehouse purpose. The following table outlines maturities of our lease liabilities as of June 30, 2025:

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| | |
|:---|:---|
| 2025 - remaining six months | $94860 |
| 2026 | 195412 |
| 2027 | 203228 |
| 2028 | 211357 |
| 2029 | 219812 |
| Thereafter | 55486 |
|  | 980155 |
| Less: Imputed interest  | (147693) |
| Operating lease liabilities  | $832462 |

---

**Going Concern**

The accompanying unaudited consolidated financial statements have been prepared (i) in accordance with accounting principles generally accepted in the United States, and (ii) assuming that the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated significant income to date. The Company is subject to the risks and uncertainties associated with a business with no substantive revenue, as well as limitations on its operating capital resources. These matters, among others, raise substantial doubt about the ability of the Company to continue as a going concern. These financial statements do not include any adjustments to the amounts and classification of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. In light of these matters, the Company's ability to continue as a going concern is dependent upon the Company's ability to raise capital and generate revenue and profits in the future.

**Contingencies**

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. In consultation with its legal counsel as appropriate, our management assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in such proceedings, we, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is likely, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

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**Critical Accounting Estimates**

Our unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States ("GAAP"), which require management to make estimates, judgments and assumptions that affect the amounts reported in our unaudited consolidated financial statements and accompanying notes. We believe our most critical accounting estimates relate to the following:

· Fair value of convertible notes

· Fair value of warrant to purchase common stock

While our estimates and assumptions are based on our knowledge of current events and on actions we may undertake in the future, actual results may ultimately differ from these estimates and assumptions. For a discussion of the Company's significant accounting policies, refer to Note 2 of Notes to Unaudited Consolidated Financial Statements.

*Fair Value of Convertible Notes*

The Company determined that the conversion feature, embedded in convertible notes, met the definition of a liability in accordance with ASC Topic No. 815-40, *Derivatives and Hedging - Contracts in Entity's Own Stock* and therefore bifurcated the embedded conversion option once the note become convertible and accounted for it as a derivative liability. The fair value of the conversion feature was recorded as a debt discount and "day 1" derivative loss for the excess amount of debt discount and amortized to interest expense over the term of the note.

For the conversion feature classified as a liability, the Company uses a Binomial Lattice valuation model to value the derivative instrument at inception and on subsequent valuation dates. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.

*Fair Value of Warrant to Purchase Common Stock*

The Company has issued warrants to investors in our debt offerings.

We evaluate all warrants issued to determine the appropriate classification under ASC 480 and ASC 815. In addition to determining classification, we evaluate these instruments to determine if such instruments meet the definition of a derivative.

For warrants that are determined to be equity-classified, we estimate the fair value at issuance and record the amounts to additional paid in capital (potentially on a relative fair value basis if issued in a basket transaction with other financial instruments). Warrants that are equity-classified are not subsequently remeasured unless modified or required to be reclassified as liabilities. The classification of all outstanding warrants, including whether such instruments should be recorded as equity, is evaluated at the end of each reporting period.

The warrants are valued using a Black Scholes valuation model. The use of this valuation model requires the input of highly subjective assumptions. Any change to these inputs could produce significantly higher or lower fair value measurements.

**Off-balance sheet arrangements**

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

**Item 3. 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 4. Controls and Procedures.**

***Evaluation of Disclosure Controls and Procedures***

Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2025. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms as a result of the following material weaknesses: (1) lack of a functioning audit committee, (2) lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (3) inadequate segregation of duties consistent with control objectives; and (4) management consists of only six (6) individuals which may result in control deficiencies and the absence of sufficient other mitigating controls.

A "material weakness" is a deficiency, or combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements would not be prevented or detected on a timely basis.

***Changes in Internal Controls***

There has been no change in the Company's internal control over financial reporting during the three months ended June 30, 2025 that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting. Management will continue to monitor and evaluate the effectiveness of our internal controls and procedures over financial reporting on an ongoing basis and is committed to taking further action and implementing additional improvements as necessary.

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**PART II - OTHER INFORMATION**

**Item 1. Legal Proceedings.**

From time to time, we may be involved in various claims and legal proceedings relating to claims arising out of our operations. We are not currently a party to any legal proceedings that, in the opinion of our management, are likely to have a material adverse effect on our business, financial condition, and results of operations. Regardless of outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors.

**Item 1A. Risk Factors.**

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

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

During the three months ended June 30, 2025, the Company issued 119,007 shares of Series C Preferred Stock as follow;

● 50,000 shares Series C Convertible Preferred Stock to two (2) management for compensation valued at $1,100,000 in April 2025; and

● 69,007 shares Series C Convertible Preferred Stock to BoltRock Holdings LLC for finance expenses valued at $2,511,855 in June 2025.

During the three months ended June 30, 2025, the Company issued 13,708,652 shares of Common Stock as follow:

● 10,652,760 shares of Common Stock to sixteen (16) investors upon conversion of 532,638 shares of Series C Convertible Preferred Stock in April 2025; and

● 10,000 shares of Common Stock to a consultant for service valued at $19,000 in May 2025; and 

● 3,045,892 shares of Common Stock for conversion of debt and accrued interest of $1,218,353 in June 2025.

**Item 3. Defaults Upon Senior Securities.**

None.

**Item 4. Mine Safety Disclosures.**

Not Applicable.

**Item 5. Other Information.**

None.

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**Item 6. Exhibits.**

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| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| [31.1\*](gevi_ex311.htm) | [Rule 13a-14(a) / 15d-14(a) Certification of Chief Executive Officer.](gevi_ex311.htm) |
| [31.2\*](gevi_ex312.htm) | [Rule 13a-14(a) / 15d-14(a) Certification of Chief Financial Officer.](gevi_ex312.htm) |
| [32.1\*](gevi_ex321.htm) | [Section 1350 Certifications of Chief Executive Officer and Chief Financial Officer.](gevi_ex321.htm) |
| 101\* | Inline XBRL Document Set for the condensed financial statements and accompanying notes in Part I, Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q. |
| 104\* | Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set. |

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________

\* Filed herewith.

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**SIGNATURES**

Pursuant to the requirements 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.

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| | | |
|:---|:---|:---|
|  | General Enterprise Ventures, Inc. | General Enterprise Ventures, Inc. |
| Dated: August 14, 2025 | By:  | /s/ Nanuk Warman |
|  |  | Nanuk Warman |
|  |  | Chief Financial Officer |

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## Exhibit 31.1

**EXHIBIT 31.1**

**CERTIFICATION**

I, Theodore Ralston, certify that:

1. I have reviewed this quarterly report on Form 10-Q of General Enterprise Ventures, 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 Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer(s) 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 Registrant 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 Registrant, 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 Registrant'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 Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant'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 Registrant'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 Registrant's internal control over financial reporting.

Date: August 14, 2025

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| | |
|:---|:---|
| By: | /s/ Theodore Ralston |
|  | Theodore Ralston |
|  | Chief Executive Officer |

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## Exhibit 31.2

**EXHIBIT 31.2**

**CERTIFICATION**

I, Nanuk Warman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of General Enterprise Ventures, 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 Registrant as of, and for, the periods presented in this report;

4. The Registrant's other certifying officer(s) 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 Registrant and have:

(e) 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 Registrant, 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;

(f) 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;

(g) Evaluated the effectiveness of the Registrant'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

(h) 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 Registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(c) 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 Registrant's ability to record, process, summarize and report financial information; and

(d) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

Date: August 14, 2025

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| | |
|:---|:---|
| By: | /s/ Nanuk Warman |
|  | Nanuk Warman |
|  | Chief Financial Officer |

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## Exhibit 32.1

**EXHIBIT 32.1**

**CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Theodore Ralston, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of General Enterprise Ventures, Inc. on Form 10-Q for the period ended June 30, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of General Enterprise Ventures, Inc. at the dates and for the periods indicated.

Date: August 14, 2025

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| | |
|:---|:---|
| By: | /s/ Theodore Ralston |
|  | Theodore Ralston |
|  | Chief Executive Officer |

---

I, Nanuk Warman, certify, as of the date hereof, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of General Enterprise Ventures, Inc. on Form 10-Q for the period ended June 30, 2025 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Form 10-Q fairly presents in all material respects the financial condition and results of operations of General Enterprise Ventures, Inc. at the dates and for the periods indicated.

Date: August 14, 2025

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| | |
|:---|:---|
| By: | /s/ Nanuk Warman |
|  | Nanuk Warman |
|  | Chief Financial Officer |

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