# EDGAR Filing Document

**Accession Number:** 0001777318
**File Stem:** 0001213900-26-050395
**Filing Date:** 2026-4
**Character Count:** 100074
**Document Hash:** cc1e59ba7b90cad05cc0d831b42d4fcb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-26-050395.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001213900-26-050395

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PROVEN Group, Inc.
- **CENTRAL INDEX KEY:** 0001777318
- **STANDARD INDUSTRIAL CLASSIFICATION:** SOAP, DETERGENT, CLEANING PREPARATIONS, PERFUMES, COSMETICS [2840]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 823571886
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00505
- **FILM NUMBER:** 26927175

**BUSINESS ADDRESS:**
- **STREET 1:** 7901 4TH ST. N STE 4916
- **CITY:** ST. PETERSBURG
- **STATE:** FL
- **ZIP:** 33702
- **BUSINESS PHONE:** (415) 295-6008

**MAIL ADDRESS:**
- **STREET 1:** 7901 4TH ST. N STE 4916
- **CITY:** ST. PETERSBURG
- **STATE:** FL
- **ZIP:** 33702

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Life Spectacular, Inc.
- **DATE OF NAME CHANGE:** 20190520

## Part

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION<br> Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT<br> PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933**

**For the fiscal year ended <u>December 31, 2025</u>**

**<u>PROVEN Group, Inc.</u>**<br> (Exact name of issuer as specified in its charter)

---

| | |
|:---|:---|
| **Delaware** | **82-3571886** |
| (State or other jurisdiction of | (I.R.S. Employer |
| incorporation or organization) | Identification No.) |

---

---

| | |
|:---|:---|
| **7901 4th St. N STE 4916**<br>**St. Petersburg, FL** | **33702** |
| (Address of principal executive offices) | (Zip Code) |

---

**<u>(415) 439-3421</u>**<br> Issuer's telephone number, including area code

**<u>Units</u>**

**<u>Series A Preferred Stock</u>**

**<u>Common Stock</u>**

(Title of each class of securities issued pursuant to Regulation A)

*In this annual report, references to "Proven" or "the Company" mean PROVEN Group, Inc., a Delaware corporation doing business as Proven Skincare, and its consolidated subsidiaries.*

 

**THIS ANNUAL REPORT MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE.**

**Item 1. BUSINESS**

**Overview**

PROVEN Group, Inc. (the "Company," "Proven," "we," "our," and "us") was formed on May 15, 2017 under the laws of the state of Delaware, and is headquartered in St. Petersburg, Florida. The Company was formed to develop and sell customized skincare products and fragrance products under the brand names of Proven Skincare and Noteworthy Scents. 

Our principal place of business is 7901 4th St N, STE 4916, St. Petersburg, Florida 33702. This address is a virtual office. Our management will be located at various locations across the country, as our management team works virtually. Our corporate records are located at our virtual office. Our website address is www.provenskincare.com.

The Company's skincare products are formulated with insights from the Company's proprietary skin knowledge database, named the Skin Health Index. This database encompasses scientific papers on skin and consumer reviews, and a large number of beauty products and ingredients.

The Company's skincare products are tailored to a customer's specific needs, which we ascertain via a comprehensive consumer questionnaire which we call the Skincare Quiz on our website. Once a customer completes this questionnaire, which takes under three minutes to complete, we are able to analyze the needs of the customer and provide them with a well-matched set of skincare products produced by the Company.

The Company's fragrance products use a proprietary fragrance matching algorithm that was built using real data from tens of thousands of real people to help consumers find their signature scent. Once a customer completes the questionnaire, we are able to match them with a set of well-matched fragrance products.

Once a customer purchases the products, the Company ships the appropriate products directly to a customer's address.

**Principal Products and Services**

*Skincare*

The Company's personalized skincare products consist of custom formulations of a three-product set: a face cleanser, a night moisturizer and a day moisturizer with sun protection. Customers typically purchase the customized three-product set as there is a cost savings for purchasing the set. The customized set of products usually last about 2-4 months. Most of the Company's customers subscribe to receive their customized skincare set every 2-4 months. We disclose all ingredients that will be included in our customized skincare products prior to an individual's purchase of the products. The Company's customized skin care products are currently sold exclusively online through our website.

In July 2025, the Company released SkinSpecific, a shelf-ready non-personalized product line. SkinSpecific is designed to address three key skincare concerns identified as top priorities among customers: anti-aging, acne, and hyperpigmentation. Each product line is comprised of three products: a cleanser, night cream and sunscreen. SkinSpecific is sold on the Company's website and on Amazon.

*Eye Cream and Serum*

The Company offers custom formulations of an eye cream set as well as custom formulations of a serum. These products usually last about 2-4 months and most customers subscribe to receive these customized products every 2-4 months.

We disclose all ingredients that will be included in our customized skincare products prior to an individual's purchase of the products. The Company's customized skin care products are currently sold exclusively online through our website.

*Fragrance*

The Company's fragrance products consist of different formulations of fragrances, fragranced body mists and body butters. Most of the Company's customers initially purchase a discovery set of sample size products that are curated for the customer. The Company offers full and travel size products and a gifting experience which bundles a discovery set and full-size or travel size products.

We disclose all ingredients that will be included in their products prior to their purchase of the products, and the Company's products are currently sold exclusively online through our website.

**Market**

The global skincare market was valued at $189.3 billion in 2025 and is projected to reach approximately $340.25 billion by 2035, growing at a compound annual growth rate (CAGR) of 6.04%. The global fragrance market was estimated to be $58.89 billion in 2025 and is projected to grow to $89.41 billion by 2033, expanding at a compound annual growth rate (CAGR) of 5.5%. We currently operate in the United States and Canada.

Direct to Consumer and eCommerce industry trends reflect a complex and highly polarized market environment. Over the past year, the industry has navigated significant turbulence highlighted by the Chapter 11 bankruptcies of major luxury retailers and legacy beauty players. Despite these headwinds, the digital channel continues to scale, with online beauty sales now representing over a quarter of total industry spend. While the broader market remains challenging and unforgiving to outdated models, investors remain highly active, driving robust M&A activity specifically toward profitable, innovative brands with strong clinical differentiation and resilient social commerce strategies.

**Competition**

***Online Competitors***

For Proven Skincare, the Company competes with online competitors like Paula's Choice, Glossier, BeautyCounter and Tatcha, as well as online customized competitors like Curology (primarily focused on acne treatments), Function of Beauty, Musely, Pure Culture Beauty, Prose (started in customized hair, and moved into customized body and skin), and various other small entries without much scale and various large companies trying to use existing brands.

Noteworthy Scents operates in the personalized fragrance market, offering customized perfumes tailored to individual preferences. Several brands compete in this niche market by providing similar personalized fragrance experiences. The main competitors are Maison 21G, DefineMe Fragrance, Scent Beauty, Dossier, Whiff and Sue Phillips.

***Large Incumbents***

L'Oreal, Estee Lauder, Coty, and Shiseido are just a few of the other companies we compete against. The strategy of large incumbent brands is fundamentally to sell as many of the same products to as many customers as possible, resulting in the one-size-fits all nature of many skincare and fragrance products.

We encourage product loyalty by having a subscription program for our PROVEN customers, where people can receive their skincare products at a discount and at regular intervals that they dictate.

**Raw Materials/Suppliers**

The Company's products are mixed and assembled in a few contract manufacturing labs that conduct skincare and fragrance product formulations and are located in the United States. These manufacturing labs formulate our products to our specifications then fill the formulations into company-supplied bottles and jars.

The Company's formulations undergo stringent quality control processes and testing. Our manufacturing labs comply with current Good Manufacturing Practices, or cGMP, and other regulations and requirements for quality control and quality assurance. They also comply with corresponding maintenance of records, documentation and reporting requirements.

Once our contract manufacturing labs complete the formulation and filling of our products, those filled bottles and jars are then shipped to third-party-logistics providers located in California and Kentucky. The third-party-logistics providers are responsible for fulfilling individual end-consumer orders based on a warehouse-logistics software that is connected to our e-commerce platform. As customers purchase our products on our website, the purchase information is sent over to the third-party-logistics provider, who can then pick and pack the products as indicated on our requirements document, and then ship those specified products directly to the customer's address. All packing materials are provided by the Company in the effort to reduce waste and maintain sustainability.

Customer complaints, when they occur, are addressed by a combination of our in-house customer support team members and long-term contract partners. Customers can email us via our customer support email, where they can expect to receive responses within a few working days. If products are not to their satisfaction, customers can receive a reformulation of products that would suit them better.

**Employees**

We have 25 full-time employees. Promotions, demotions, and dismissal of employees, including executives, have occurred and will continue to occur as management sees fit. As of December 31, 2025, the Company has reserved 21,466,212 shares of Common Stock for issuance to officers, directors, employees and consultants of the Company pursuant to its Amended and Restated 2017 Stock Plan duly adopted by the Board of Directors and approved by the Company stockholders (the "Stock Plan"). Of such reserved shares of Common Stock, 691,756 shares have been issued pursuant to the exercise of outstanding stock options, 18,504,663 options to purchase shares have been granted and are currently outstanding, and 2,269,793 shares of Common Stock remain available for issuance to officers, directors, employees and consultants pursuant to the Stock Plan.

We engage contractors from time to time on an as-needed basis to consult with us on specific corporate affairs, or to perform specific tasks in connection with our business development activities.

**Regulation**

The Company has the requisite permits to operate in its current capacity, including a Seller's Permit from the California State Board of Equalization to operate. The contract manufacturing labs who make the Company's various products all meet or exceed regulations and requirements for the manufacturing of skincare products. Some of our formulations are considered Over-The-Counter (OTC) products, and for those products that require them, we have obtained the necessary OTC registration documents from the Food and Drug Administration.

**Intellectual Property**

We filed for six patents in 2021. Each of these patents are utility patents and are all provisional applications. Subsequently, one application was granted in 2022 and a second application was granted in 2023. One patent application was withdrawn. These patents cover our dynamic questionnaire and product recommendation methods. To date, we have relied on copyright, trademark and trade secret laws, as well as confidentiality procedures and licensing arrangements, to establish and protect intellectual property rights to our products and formulae. We typically enter into confidentiality or license agreements with employees, consultants, and vendors in an effort to control access to and distribution of formulae, software, documentation and other information. Policing unauthorized use of this information is difficult and the steps taken may not prevent misappropriation of the information. In addition, effective protection may be unavailable or limited in some jurisdictions outside the United States, Canada and the United Kingdom. Litigation may be necessary in the future to enforce or protect our rights or to determine the validity and scope of the rights of others. Such litigation could cause us to incur substantial costs and divert resources away from daily business, which in turn could materially adversely affect the business.

**Litigation**

As of December 31, 2025 there is one open case that is pending litigation. The amount of liability, if any, from this litigation cannot be determined with certainty. We review our legal proceedings and claims on an ongoing basis and follow appropriate accounting guidance when making accrual and disclosure decisions. The current open case is not believed to be material.

From time to time, we may be involved in litigation relating to contract disputes, employment and other matters that arise in the normal course of our business.

**The Company's Property**

The Company currently leases its premises and owns no significant plant or equipment. The Company leases a virtual office space in St. Petersburg, Florida. The Company leased the office space in 2021. The lease was renewed in 2024 with an option to terminate at any time with 3 days written notice and month to month thereafter. The landlord may terminate the lease with 2 days advance written notice to the Company.

**Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included in this annual 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.

**General**

We were formed as a Delaware corporation on May 15, 2017. The Company develops, produces and sells skincare and fragrance products directly to consumers through its website as well as via Amazon and Macy's Marketplaces. This allows the Company to broaden our consumer reach and diversify our revenue streams beyond traditional direct-to-consumer channels. Subscription sales and sales from repeat customers make up a large portion of the Company's revenue. The Company differentiates its skincare products through offering formulations that are matched to address a customer's specific skin needs, lifestyle and environmental factors. The Company differentiates its fragrance products through matching products to a customer's fragrance preferences.

**Results of Operations**

The following represents our performance highlights:

***Revenues***

We generate revenues from direct-to-consumer, Amazon and Macy's marketplace sales of skincare and fragrance products. Revenues decreased by $12,988,660 from $34,985,146 for the year ended December 31, 2024 to $21,996,486 for the year ended December 31, 2025, or by 37.1%. The decrease in revenue was due primarily to a decrease in the number of new customers for both PROVEN and Noteworthy, resulting in lower revenue year over year.

***Cost of Revenues***

Cost of revenues consists of the costs of inventory sold, packaging materials costs, inbound freight, outbound freight, and customs and duties. In situations where promotional products are provided by the Company to its customers at the same time as the related saleable product, the cost of these promotional products are recognized as a cost of revenue.

The cost of net revenues for 2025 was $5,059,921, resulting in gross profit of $16,936,565 (a net margin of 77.0%) compared to cost of net revenues for 2024 of $8,688,606 and gross profits of $26,296,540 (a net margin of 75.2%). The decrease in cost of revenues is due to an improvement in unit costs associated with both PROVEN and Noteworthy, bringing down our overall cost of goods sold as well as more favorable outbound shipping rates with our third-party logistics company. These decreases resulted in an overall more favorable margin for the year ended December 31, 2025.

***Operating Expenses***

Our operating expenses consist of general and administrative expenses, sales and marketing expenses, and research and development expenses. The Company spends significant amounts on research and development expenses to further its product design and offerings. The Company recorded total operating expenses of $33,605,469 for 2025 and $32,340,558 for 2024. Such expenses were composed of:

● general and administrative expenses of $14,515,393 for 2025 and $10,692,765 for 2024;

● sales and marketing expenses of $11,494,798 for 2025 and $17,819,012 for 2024; and

● research and development expenses of $7,595,278 for 2025 and $3,828,781 for 2024.

The increase in our total operating expenses resulted primarily from an increase in stock-based compensation. This increase was offset by a planned decrease in advertiser spending and other marketing related expenses as well as a decrease in customer-related fulfillment costs.

***Other Expense***

Other income consists of interest expense. The Company recorded total other expense of $74,865 for 2025 and $393,682 for 2024.

Interest expense decreased because the Company finished paying off its short-term loans in 2024 and did not acquire any additional debt during 2025. See "Liquidity and Capital Resources – Indebtedness."

***Net operating loss and Net loss***

Accordingly, the Company's net operating loss was $16,668,904 for 2025 and $6,044,018 for 2024; the Company's net loss was $16,743,769 for 2025 and $6,437,700 for 2024.

**Liquidity and Capital Resources**

As of December 31, 2025, the Company had approximately $2,327,290 in cash and cash equivalents on hand. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated profits since inception, and used $1,917,743 cash from operations for the year ended December 31, 2025 and generated cash from operations of $272,128 for the year ended December 31, 2024. These factors raise substantial doubt about the Company's ability to continue as a going concern. During the next 12 months, the Company intends to fund its operations through its operational activities, current capital on hand, as well as other financing that may be available to us. We, therefore, believe that any substantial doubt about the Company's ability to continue as a going concern has been alleviated. The Company's ability to continue as a going concern for the next 12 months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional capital financing.

*Indebtedness* 

During the year ended December 31, 2022, the Company received total proceeds of $9,573,653 from the same lender from 5 financings. The Company paid back fixed recurring monthly amounts over the 12-24 month periods relating to each financing. The loans bore interest from 7% - 14% and mature at various times between January 31, 2023 and August 2, 2024.

During the year ended December 31, 2024, the Company made repayments of $2,390,038 and $0 remained current and outstanding as of December 31, 2024. Interest expense for the year ended December 31, 2024 related to these loans was $341,434.

Total interest expense for the SBA loan was $5,630 and $5,594 for the years ended December 31, 2025 and 2024, respectively.

On March 28, 2024, the Company converted its liability due to the co-founders, representing proceeds from the Regulation A offering, into loan payables, separate to each co-founder. As of December 31, 2025, the total of both liabilities, less allocated offering costs and expenses plus accrued interest, is $784,339. Interest accrues at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

*Issuances of Equity*

On August 6, 2021, the Company commenced an offering pursuant to Regulation A of the Securities Act of 1933, as amended (the "Regulation A Offering"), qualifying the offer and sale of up to $60,000,000 of units consisting of .7 shares of Series A Preferred Stock of the Company and .3 share of Common Stock from selling shareholders at a price of $6.60 per unit. As of December 31, 2024, the Company had closed on cumulative gross proceeds of $3,405,270 and issued 515,950 units, including 361,165 shares of Series A Preferred Stock. As of August 6, 2024, the Regulation A Offering was closed.

During the year ended December 31, 2024, the Company issued 22,211 shares of Series A Preferred Stock for gross proceeds of $186,284.

During the year ended December 31, 2025, the Company repurchased 350 shares of Series A Preferred Stock for no value.

**Trend Information**

Our primary goal is to add customers through our direct-to-consumer sales channel, online marketplace channels as well as strengthening our artificial intelligence and technology capabilities. In the future, we intend to expand our product line and move more into omnichannel and selling our products in retail locations. As we add customers, we will be able to grow our brands. Increasing demand, along with additional media coverage in the United States, has driven and continues to drive an increase in sales for the Company's products. There are also several underlying trends that drive the growth of the sector.

With respect to growth in the skincare industry as a whole, in 2019, when the Company first launched, the global skincare market was estimated to be $140 billion in size. By 2035, it's estimated to grow to $340.25 billion in size, a compound annual growth rate of 6.04%. The global fragrance market was estimated to be $58.89 billion in 2025 and is expected to grow at a compound annual growth rate of 5.5% to $89.41 billion in 2033.

There has been a consistent trend toward more online and direct-to-consumer sales across retail industries. E-commerce in beauty has expanded massively over the last decade, and its digital share now exceeds 25 percent, with significant runway still ahead. This compares with a 2025 e-commerce share of approximately 35 to 40 percent in apparel and footwear, and roughly 45 to 50 percent in toys and games.

Consumers have been increasingly demanding personalized products:

● 71% of consumers now expect companies to deliver personalized interactions, and 76% express frustration when shopping experiences are impersonal, according to recent 2026 retail reporting.

● Broad industry consensus confirms that 77% of consumers have chosen, recommended, or paid more for a brand that provides the option to personalize.

● The Company is poised to continue to take advantage of these industry trends and execute growth in the US skincare market with our world-class executive, technology, and operations teams.

Persistent inflation and polarized consumer sentiment heading into 2026 have created an environment where shoppers are actively reducing their basket sizes to offset higher prices. This softening of discretionary spending means consumers may be less willing to purchase dispensable products, counteracting some of the other growth trends noted.

**Item 3. DIRECTORS, EXECUTIVE OFFICERS, AND SIGNIFICANT EMPLOYEES**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office** | **Approximate<br> hours per week<br> for part-time<br> employees** |
| **Executive Officers:** |  |  |  |  |
| Marc Chapman | Chief Executive Officer | 53 | April 26, 2025 – Present | Full-time |
| Mingshu Zhao Wiggins | Chief Strategy Officer | 42 | May 24, 2024 – Present | Full-time |
| Zaoshi "Amy"Yuan | President, Chief Financial Officer, Treasurer, Secretary | 41 | May 15, 2017 – Present | Full-time |
| **Directors:** |  |  |  |  |
| Mingshu Zhao Wiggins | Chairwoman | 42 | April 26, 2025 – Present | N/A |
| Zaoshi Yuan | Director | 41 | May 15, 2017 – Present | N/A |
| Akash Bedi | Director | 42 | October 26, 2022 – November 18, 2025 | N/A |
| Shu Jia | Director | 38 | November 18, 2025 – Present | N/A |
| **Significant Employees:** |  |  |  |  |
| Ali Waterman | VP of Finance | 35 | September 06, 2022 – Present | Full-time |

---

**Executive Officers and Directors**

**Marc Chapman, Chief Executive Officer**

Marc has over 25 years of experience in building and scaling consumer technology companies. He began his career in Finance working in corporate finance roles at Eastman Kodak (1995-1999) and Intel (1999-2000). In 2000, he helped start Snapfish, an online photo company, and as the VP of Worldwide Product & Operations, grew the company to over $300 million in revenue and operating in 22 countries, selling it to Hewlett Packard for $300 million in 2005. Subsequently, he held COO roles at Minted (2013-2014) and Symphony Commerce (2014-2015). Most recently, he started SpoonfulOne in 2016, a company dedicated to tackling the food allergy epidemic, acted as their COO and GM of DTC businesses. SpoonfulOne was sold to Nestle in 2023, who was also the lead investor in the Company. Prior to his appointment as CEO in April 2025, Marc served as the company's president beginning in May 2024. Marc holds an MBA from the Simon School of Business at the University of Rochester.

**Ming Zhao Wiggins, Chief Strategy Officer and Chairwoman:**

Ming is the Chief Strategy Officer and Co-Founder of Proven Group. Ming holds an MBA degree from Harvard Business School, is a third-generation entrepreneur and is bilingual in English and Chinese. Ming is currently appointed to the board of directors of H&H International Holdings Ltd.

Prior to founding Proven Group, she built and led the Partnerships Team at NerdWallet, a consumer fintech company from 2014 to 2016. Before that, she was a fund of hedge funds investor at the Pacific Alternative Asset Management Company (PAAMCO) from 2011-2013. Prior to that, she was a Private Equity Investor at Bain Capital from 2008-2010, investing in consumer, technology and biotech companies globally. She started her career in Strategy Consulting at the Boston Consulting Group, where she advised Fortune 500 companies on their strategy, operations and distribution.

**Zaoshi "Amy" Yuan, President, Chief Technology Officer, Chief Financial Officer and Director:**

Amy is the President, CFO, Treasurer, Secretary and Co-Founder of Proven Group. She is a computational physicist and participated in scientific simulations on one of the largest super-computer in the world. She also has 8 publications in leading peer-reviewed physics scientific journals.

She is a data scientist and an engineer with a background in math, physics, and high-performance computing with a Postdoctoral Chemical Engineering degree from Stanford University and a PhD in Computational Physics from The University of Southern California.

Prior to founding Proven Group, Amy was the Lead Data Scientist at Lyra Health from 2015-2017. Prior to that, she was a Lead Data Scientist at McKesson from 2015-2016. At both of these companies, she developed data products that enable better care for people through the use of technology.

**Shu Jia, Director**

Shu Jia is the Associate Director of Group Strategy at H&H Group, leading strategy development and investment activities focused on long-term growth and returns. Before joining H&H Group in 2020, she held in-house strategy and M&A roles in the CPG and TMT sectors with Pernod Ricard and Telstra, and worked in PwC Singapore's advisory practice. Shu joined the Board as Director on November 18, 2025.

**Akash Bedi, Director**

Akash Bedi currently serves as the Group Rotating CEO and Chief Executive Officer, North America and Europe at H&H Group. As part of his role at H&H Group, Akash is responsible for the leadership for all aspects of the company's operations with an emphasis on long-term goals, growth, profit, and return on investment. Prior to joining H&H Group in 2018, Akash held the position of Director, Global Consumer & Retail at HSBC for over 10 years where he worked on M&A transactions from its global offices in New York, London and Hong Kong.

On November 18, 2025, Akasha stepped down as Director and was replaced by Shu Jia.

**Ali Waterman, VP of Finance**

Ali Waterman is the VP of Finance at Proven Group, Inc. where she oversees the company's Finance and HR functions. She holds an MBA from The University of Chicago Booth School of Business. She is a Finance and Operations professional with extensive leadership experience in FP&A, financial and business operations, and strategic analysis in high growth organizations.

Prior to joining the Company, Ali held positions of increasing responsibility leading up to VP of Finance at Envoy Global from 2017 to 2022. At Envoy, an immigration software and services provider, Ali played an integral role in building financial and operational structures leading to a successful exit in 2021. From 2012 to 2017, she worked as a financial analyst at Harkcon Inc.

**Compensation Of Directors and Executive Officers**

For the fiscal year ended December 31, 2025, we did not pay our directors in their capacity as directors. There are three directors in this group. We compensated our executive team, two of whom are also directors, as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Capacities in <br> which compensation <br> was received** | **Cash<br> compensation<br> ($)** | **Other<br> compensation<br> ($)** | **Total<br> compensation<br> ($)** |
| Marc Chapman | &nbsp;&nbsp;President | $401578 | $3599 | $405177 |
| Ming Zhao Wiggins | &nbsp;&nbsp;CSO | $260258 | $7007 | $267265 |
| Zaoshi Yuan | &nbsp;&nbsp;CFO | $260355 | $10122 | $270477 |

---

Other compensation reflects an allowance for wellness, beauty, enrichment, and work-from-home expenses for tenured executives in order to improve the efficiency and maintain the mental health of our executives.

Other than as described below, the Company has no agreements with its executive officers.

*Employment agreement with Marc Chapman*

 

On May 20, 2024 the Company extended an offer of employment to Marc Chapman to serve as the President of the Company. Per the terms of the offer, Mr. Chapman's base salary is $290,000 and in the event Mr. Chapman is promoted to the position of Chief Executive Officer, he is entitled to receive a payment equal to six months' base salary. Mr. Chapman is also entitled to an award of stock options for 1,914,462 shares of common stock. Mr. Chapman was appointed as the Company's CEO on April 26, 2025 and the original offer was amended to: (i) increase Mr. Chapman's annual base salary to $310,000 effective March 1, 2025, (ii) change his title to CEO, (iii) entitle Mr. Chapman to receive a one-time cash bonus of $20,000 subject to the Company reaching $38,000,000 in gross revenue and $800,000 in EBITDA, and (iv) grant additional options for 1,722,242 shares of common stock. The foregoing is qualified in its entirety by the full offer letter and subsequent amendment, filed as exhibit 6.4 to this annual report.

**Item 4. SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

The following table displays, as of December 31, 2025, the voting securities beneficially owned by (1) any individual director or officer who beneficially owns more than 10% of any class of our capital stock, (2) all executive officers and directors as a group and (3) any other holder who beneficially owns more than 10% of any class of our capital stock:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Title of class** | **Name and address of beneficial owner(1)** | **Amount and<br> nature of<br> beneficial<br> ownership** | **Amount and<br> nature of<br> beneficial<br> ownership<br> acquirable** | **Proxy<br> Shares (3)** | **Percent<br> of class<br> owned (2)** | **Percent of<br> Voting<br> Power (6)** |
| Common Stock | Ming Zhao Wiggins | 7923707 | 6559194 | 3154635 | 54.16% | 36.96% |
| Common Stock | Zaoshi Yuan | 7421508 | 6559194 | 3000000 | 52.28% | 34.77% |
| Common Stock | Marc Chapman | 0 | 3636704 | 0 | 13.6% | 0.00% |
| Common Stock | All current officers and directors as a group (3 people in this group) | 15345215 | 16755092 | 6154635 | 120.04% | 71.73% |
| Series A-2 Preferred Stock(4) | New H2 Limited (5) | 3112443 | 0 | 0 | 96.32% | 10.38% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The address for all the executive officers, directors, and beneficial owners is c/o Proven Group, Inc., 7901 4th St N, STE 4916, St. Petersburg, Florida 33702.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The Percent of Class includes a calculation of the amount the person owns now, plus the amount that person is entitled to acquire. That amount is then shown as a percentage of the outstanding amount of securities in that class if no other people exercised their rights to acquire those securities. The result is a calculation of the maximum amount that person could ever own based on their current and acquirable ownership, which is why the amounts in this column will not add up to 100%.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes shares sold in the Regulation A over which investors granted Ms. Zhao a proxy, and includes shares owned by trusts over which the trustees of such trusts have granted Ms. Zhao and Ms. Yuan, respectively, voting proxies.

&nbsp;&nbsp;&nbsp;&nbsp;(4) New H2 Limited is owned by H&H Group. Shu Jia is H2 Limited's designated member of the Company's board of directors and disclaims beneficial ownership of the shares of Series A-2 Preferred Stock.

(5) Percent of Voting Power represents the total voting power across all shares of Common Stock and Series A-2 Preferred Stock, which are the only 2 classes of the Company's securities entitled to vote.

**Item 5. INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

On March 28, 2024, the Company converted its liability due to two of our directors and executive officers, Ming Zhao Wiggins and Zaoshi Yuan, representing proceeds from the Regulation A offering, into loan payables. As of December 31, 2025, the total of both liabilities, less allocated offering costs and expenses plus accrued interest, is $784,339. Interest accrues at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

**Item 6. OTHER INFORMATION**

We have no information to disclose that was required to be in a report on Form 1-U.

**Item 7. CONSOLIDATED FINANCIAL STATEMENTS FOR THE FISCAL YEARS ENDED DECEMBER 31, 2025 AND 2024**

**PROVEN Group, Inc.** 

**CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [Independent Auditors' Report](#a_001) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#a_002) | F-3 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#a_003) | F-4 |
| [Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2025 and 2024](#a_004) | F-5 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#a_005) | F-6 |
| [Notes to the Consolidated Financial Statements](#a_006) | F-7 |

---

**INDEPENDENT AUDITORS' REPORT**

To the Board of Directors and Stockholders

PROVEN Group, Inc.

**Opinion**

We have audited the accompanying consolidated financial statements of PROVEN Group, Inc. dba Proven Skincare (a Delaware corporation, the "Company"), which comprise the balance sheets as of December 31, 2025 and 2024, and the related statements of operations, stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Responsibilities of Management for the Consolidated Financial Statements**

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

**Auditor's Responsibilities for the Audit of the Consolidated Financial Statements**

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements, including omissions, are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

---

| |
|:---|
| /s/ dbb*mckennon* |
| Newport Beach, California |
| April 30, 2026 |

---

**PROVEN Group, Inc.** 

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2327290 | $4182341 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 2752836 | 2887857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 484688 | 497314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 5564814 | 7567512 |
| Deposits |  | 54892 |
| Property and equipment, net |  | 1932 |
| Goodwill | 123223 | 123223 |
| Intangible assets | 4567 | 4567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $5692604 | $7752126 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $679814 | $1892675 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | 437258 | 1293845 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 236023 | 432063 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due to related parties | 708518 | 740876 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 2061613 | 4359459 |
| Loan payable | 150000 | 150000 |
| Future equity obligations | 500010 | 500010 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2711623 | 5009469 |
| Commitments and contingencies (Note 12) |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Series A-2 preferred stock, $0.00001 par value, 5,675,915 shares authorized, 3,231,280 shares issued and outstanding as of both December 31, 2025 and 2024, liquidation preference of $11,419,990 as of December 31, 2025 and 2024 | 32 | 32 |
| &nbsp;&nbsp;&nbsp;Series A preferred stock, $0.00001 par value, 6,717,483 shares authorized, 446,143 and 446,493 shares issued and outstanding as of December 31, 2025 and 2024, respectively, liquidation preference of $2,946,854 and $2,800,262 as of December 31, 2025 and 2024, respectively | 4 | 4 |
| &nbsp;&nbsp;&nbsp;Series Seed preferred stock, $0.00001 par value, 17,582,397 shares authorized, 17,582,397 shares issued and outstanding as of both December 31, 2025 and 2024, liquidation preference of $9,206,101 as of December 31, 2025 and 2024 | 176 | 176 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.00001 par, 69,740,303 shares authorized, 26,740,441 and 26,710,591 shares issued and outstanding as of both December 31, 2025 and 2024 | 267 | 267 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 112930316 | 95948223 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (109949814) | (93206045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 2980981 | 2742657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $5692604 | $7752126 |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, Inc.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Net revenues | $21996486 | $34985146 |
| Cost of net revenues | 5059921 | 8688606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 16936565 | 26296540 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 14515393 | 10692765 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 11494798 | 17819012 |
| &nbsp;&nbsp;&nbsp;Research and development | 7595278 | 3828781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 33605469 | 32340558 |
| Loss from operations | (16668904) | (6044018) |
| Other expense: |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | (74865) | (393682) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (74865) | (393682) |
| Provision for income taxes | - | - |
| Net loss | $(16743769) | $(6437700) |
| Weighted average common shares outstanding - basic and diluted | 26729637 | 26710591 |
| Net loss per common share - basic and diluted | $(0.63) | $(0.24) |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, Inc.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A-2** | **Series A-2** | **Series A** | **Series A** | **Series Seed** | **Series Seed** | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at December 31, 2023 (as restated)** | 3231280 | $32 | 424282 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4 | 17582397 | $176 | 26710591 | $267 | $88715449 | $(86768345) | $1947583 |
| Issuance of Series A preferred stock |  |  | 22211 |  |  |  |  |  | 186284 |  | 186284 |
| Offering costs |  |  |  |  |  |  |  |  | (14446) |  | (14446) |
| Stock-based compensation |  |  |  |  |  |  |  |  | 7060936 |  | 7060936 |
| Net loss | - | - | - | - | - | - | - | - | - | (6437700) | (6437700) |
| **Balances at December 31, 2024** | 3231280 | $32 | 446493 | 4 | 17582397 | 176 | 26710591 | 267 | 95948223 | (93206045) | 2742657 |
| Exercise of stock options |  |  |  |  |  |  | 30000 |  | 7800 |  | 7800 |
| Repurchase of shares |  |  | (350) |  |  |  | (150) |  |  |  |  |
| Stock-based compensation |  |  |  |  |  |  |  |  | 16974293 |  | 16974293 |
| Net loss | - | - | - | - | - | - | - | - | - | (16743769) | (16743769) |
| **Balances at December 31, 2025** | 3231280 | $32 | 446143 | $4 | 17582397 | $176 | 26740441 | $267 | $112930316 | $(109949814) | $2980981 |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, Inc.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(16743769) | $(6437700) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of future equity obligations |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 16974293 | 7060936 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1932 | 3523 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets |  | 40016 |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 135021 | 419205 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 12626 | 300156 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (1212861) | (884958) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | (888945) | 182235 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (196040) | (411285) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) generated from operating activities | (1917743) | 272128 |
| **Cash flows from investing activities:** |  |  |
| Deposits | 54892 | (5451) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash generated from (used in) investing activities | 54892 | (5451) |
| **Cash flows from financing activities:** |  |  |
| Due to related parties |  | 52064 |
| Subscription receivable |  | 2205 |
| Repayments of loan payable |  | (2390038) |
| Issuance of Series A preferred stock |  | 186284 |
| Offering costs |  | (14446) |
| Exercise of stock options | 7800 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash generated from (used in) financing activities | 7800 | (2163931) |
| **Net change in cash and cash equivalents** | (1855051) | (1897254) |
| Cash and cash equivalents at beginning of year | 4182341 | 6079595 |
| Cash and cash equivalents at end of year | $2327290 | $4182341 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $161710 | $46515 |
| Cash paid for interest | $29176 | $344612 |
| **Supplemental disclosure of non-cash financing activities:** |  |  |
| Interest accrued related to founder liabilities | $43463 | $- |

---

See accompanying notes to these consolidated financial statements.

**PROVEN Group, Inc.**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **NATURE OF OPERATIONS** 

PROVEN Group, Inc. (the "Company") is a corporation formed on May 15, 2017 under the laws of the State of Delaware. The Company consists of Proven Skincare ("Proven") and Noteworthy Holdings, Inc. ("Noteworthy"). Proven sells customized skincare products through its website and online platform to individual customers directly. Noteworthy offers personalized fragrance products through its website and online platform directly to customers. The Company is headquartered in St. Petersburg, Florida.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **GOING CONCERN** 

The Company has evaluated whether there are certain conditions and events, considered in the aggregate, that raise substantial doubt and the Company's ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not generated profits since inception, and used $1,917,743 cash from operations for the year ended December 31, 2025 and generated cash from operations of $272,128 for the year ended December 31, 2024. These factors raise substantial doubt about the Company's ability to continue as a going concern. During the next 12 months, the Company intends to fund its operations through its operational activities, current capital on hand, as well as other financing that may be available to us. We, therefore, believe that any substantial doubt about the Company's ability to continue as a going concern has been alleviated. The Company's ability to continue as a going concern for the next 12 months is dependent upon its ability to generate sufficient cash flows from operations to meet its obligations, which it has not been able to accomplish to date, and/or to obtain additional capital financing.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

***Basis of Presentation***

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). The Company's fiscal year is December 31.

***Use of Estimates***

The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, inventory, valuations of common stock, and future equity obligations. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts, and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

***Concentrations of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents. The Company generally maintains balances in various operating accounts at financial institutions that management believes to be of high credit quality, in amounts that may exceed federally insured limits. The Company has not experienced any losses related to its cash and cash equivalents and does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships.

***Cash and Cash Equivalents***

 ****

The Company considers all highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents.

***Fair Value Measurements***

Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

● Level 1—Quoted prices in active markets for identical assets or liabilities.

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies, and similar techniques.

The carrying values of the Company's accounts receivable, prepaid expenses, accounts payable, and accrued expenses approximate their fair values due to the short maturity of these instruments. The Company's future equity obligations are carried at fair value, determined based on Level 3 inputs in the fair value hierarchy described above (see Notes 5 and 9).

***Inventory***

Inventories consist of components, finished goods, and products in transit from the Company's suppliers. Costs of finished goods inventories include all costs incurred to bring inventory to its current condition, including inbound freight and duties. Inventory is recorded at the lower of cost or net realizable value using the specific identification method. If the Company determines that the estimated net realizable value of its inventory is less than the carrying value of such inventory, it records a charge to cost of goods sold to reflect the lower of cost or net realizable value. If actual market conditions are less favorable than those projected by the Company, further adjustments may be required that would increase the cost of goods sold in the period in which such a determination was made.

As of December 31, 2025 and 2024, inventory included approximately $10,432 and $210,664 in transit, respectively.

 **

***Goodwill and Other Intangible Assets***

 **

Goodwill and indefinite-lived intangibles are not amortized but are instead evaluated annually for impairment as part of the Company's annual financial review, or when indicators of a potential impairment are present. The annual test for impairment performed for goodwill can be qualitative or quantitative, taking into consideration certain factors surrounding the fair value of the goodwill including, level by which fair value exceeded carrying value in the prior valuation, as well as macroeconomic factors, industry conditions and actual results at the test date.

The Company evaluates indefinite-lived intangible assets, which consist of trademarks, for impairment on an annual basis. Similar to goodwill, the impairment test can be qualitative or quantitative, taking into consideration certain factors surrounding the fair value of the brand names including, level by which fair value exceeded carrying value in the prior valuation, as well as macroeconomic factors, industry conditions and actual results at the test date.

  ****

***Revenue Recognition***

The Company determines revenue recognition through the following steps in accordance with ASC 606, *Revenue from Contracts with Customers* (ASC 606):

● Identification of a contract with a customer;

● Identification of the performance obligations in the contract;

● Determination of the transaction price;

● Allocation of the transaction price to the performance obligations in the contract; and

● Recognition of revenue when or as the performance obligations are satisfied.

Revenue is recognized when performance obligations are satisfied through the transfer of control of promised goods to the Company's customers in an amount that reflects the consideration expected to be received in exchange for transferring goods or services to customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the product. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance.

The Company derives its revenue solely from e-commerce transactions, which is considered a single performance obligation. Revenue is recognized at the time the product is shipped to the customer, which is the point in time when control is transferred.

The Company deducts discounts, sales tax, and refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued expenses until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in sales and marketing expense, and are therefore not evaluated as a separate performance obligation.

***Contract Liability***

Contract liabilities are recorded when a customer pays consideration, or the Company has a right to an amount of consideration that is unconditional, before the transfer of a good or service to the customer and thus represent the Company's obligation to transfer the good or service to the customer at a future date. The Company's contract liabilities are included as deferred revenue on the balance sheets and consist of (i) payments received in advance of product delivery to the customer and (ii) the promise of future products to be delivered to existing customers. As of December 31, 2025 and 2024, total contract liabilities were $236,023 and $432,063, respectively.

Deferred revenue as of December 31, 2025 and 2024 are as follows:

---

| | |
|:---|:---|
|  | **Contract**<br>**Liabilities** |
| Balance, December 31, 2023 | $843348 |
| &nbsp;&nbsp;&nbsp;Deferred revenue recognized during the year | (843348) |
| &nbsp;&nbsp;&nbsp;Payments received in advance of product delivery | 432063 |
| Balance, December 31, 2024 | 432063 |
| &nbsp;&nbsp;&nbsp;Deferred revenue recognized during the year | (432063) |
| &nbsp;&nbsp;&nbsp;Payments received in advance of product delivery | 236023 |
| Balance, December 31, 2025 | $236023 |

---

The Company expects deferred revenue for all contract liabilities to be recognized within one year.

***Cost of Revenue***

Cost of revenue consists of the costs of inventory sold, packaging materials costs, inbound freight, customs and duties and outbound freight associated with shipping goods to customers. In situations where promotional products are provided by the Company to its customers at the same time as the related saleable product, the cost of these promotional products are recognized as a cost of revenue.

***Sales and Marketing***

Sales and marketing expenses include fulfillment center operations, third-party logistics costs, and payment processing fees, as well as marketing and advertising costs.

 ****

***General and Administrative Expenses***

General and administrative expenses consist primarily of compensation and benefits costs, professional services and information technology.

***Advertising Costs***

Advertising costs are included in sales and marketing expenses and are expensed as incurred. Advertising costs were $4,772,542 and $10,537,674 for the years ended December 31, 2025 and 2024, respectively.

 ****

***Research and Development Costs***

Costs related to the development of the Company's products and future offerings are included in research and development expenses and are expensed as incurred.

 ****

***Future Equity Obligations***

The Company accounts for its Simple Agreements for Future Equity ("SAFEs") as derivative liabilities under the FASB's ASC section 815-10 and ASC section 815-40.

***Deferred Offering Costs***

The Company complies with the requirements of ASC 340, *Other Assets and Deferred Costs*, with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed.

There were no deferred offering costs as of December 31, 2025 or 2024.

***Segment reporting***

The Company operates as a single operating segment. All financial information is presented on a consolidated basis and reviewed by the Company's Principle Executive Officer as the Chief Operating Decision Maker (CODM). The CODM assesses financial performance based on revenue, operating profit, and key operating expenses.

***Stock-Based Compensation***

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.

The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's payroll costs are classified or in which the award recipient's service payments are classified.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically has been a private Company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. The Company recognizes forfeitures as they occur as there is insufficient historical data to accurately determine future forfeitures rates. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

 ****

***Income Taxes***

The Company uses the liability method of accounting for income taxes as set forth in ASC 740, *Income Taxes*. Under the liability method, deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse. A valuation allowance is recorded when it is unlikely that the deferred tax assets will not be realized. The Company assesses its income tax positions and records tax benefits for all years subject to examination based upon our evaluation of the facts, circumstances, and information available at the reporting date. In accordance with ASC 740-10, for those tax positions where there is a greater than 50% likelihood that a tax benefit will be sustained, our policy will be to record the largest amount of tax benefit that is more likely than not to be realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. For those income tax positions where there is less than 50% likelihood that a tax benefit will be sustained, no tax benefit will be recognized in the consolidated financial statements.

***Net Loss per Share***

 ****

Net earnings or loss per share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted net earnings or loss per share. Diluted net earnings or loss per share reflect the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted net loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2025 and 2024, diluted net loss per share is the same as basic net loss per share for each year. Potentially dilutive items outstanding as of December 31, 2025 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Series A-2 Preferred Stock (convertible to common stock) | 3231280 | 3231280 |
| Series A Preferred Stock (convertible to common stock) | 446143 | 446493 |
| Series Seed Preferred Stock (convertible to common stock) | 17582397 | 17582397 |
| Preferred and common stock warrants | 114478 | 139478 |
| Stock options | 18504663 | 12534693 |
| &nbsp;&nbsp;&nbsp;Total potentially dilutive shares | 39878961 | 33934341 |

---

As of December 31, 2025 and 2024, there was an indeterminable number of shares that were potentially dilutive based on the Company's outstanding future equity obligations (see Note 9).

***Recently Issued and Adopted Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced disclosures regarding income taxes paid, disaggregated by federal, state, and foreign jurisdictions, as well as a detailed rate reconciliation using specific categories and thresholds. The standard is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss. The Company adopted ASU 2023-07 for the year ended December 31, 2025, and the adoption did not have a material impact on the Company's financial statements beyond enhanced disclosures.

In December 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires public entities to provide disaggregated disclosures of certain expense categories within income statement line items. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this standard on its consolidated financial statement disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **RELATED PARTIES** 

On March 28, 2024, the Company converted its liability due to the co-founders, representing proceeds from the Regulation A offering, into loan payables, separate to each co-founder. As of December 31, 2025, the total of both liabilities, less allocated offering costs and expenses plus accrued interest, is $784,339. Interest accrues at a rate of 4.13% per annum. Principal and the balance of interest accrued will be due in full on March 29, 2027 or upon thirty (30) days' prior written notice of demand by the respective lender.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **FAIR VALUE MEASUREMENTS** 

The Company's financial assets and liabilities are subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows:

---

| | |
|:---|:---|
|  | **Future Equity**<br>**Obligations** |
| Balance, December 31, 2023 | $500010 |
| Issuance of future equity obligations for proceeds |  |
| Payment for, and cancellation of, future equity obligations | - |
| Balance, December 31, 2024 | 500010 |
| Issuance of future equity obligations for proceeds |  |
| Payment for, and cancellation of, future equity obligations | - |
| Balance, December 31, 2025 | $500010 |

---

The Company measures the future equity obligations at fair value based on significant inputs not observable in the market, which causes it to be classified as a Level 3 measurement within the fair value hierarchy. The valuation of the future equity obligations uses assumptions and estimates the Company believes would be made by a market participant in making the same valuation. The Company assesses these assumptions and estimates on an on-going basis as additional data impacting the assumptions and estimates are obtained. Changes in the fair value of the future equity obligations related to updated assumptions and estimates are recognized within the statements of operations.

The future equity obligations may change significantly as additional data is obtained, impacting the Company's assumptions regarding probabilities of outcomes used to estimate the fair value of the liability. In evaluating this information, considerable judgment is required to interpret the data used to develop the assumptions and estimates. The estimates of fair value may not be indicative of the amounts that could be realized in the current market exchange. Accordingly, the use of different market assumptions and/or different valuation techniques may have a material effect on the estimated fair value amounts, and such changes could materially impact the Company's results of operations in future periods.

The Company utilized a probability-weighted average approach based on the estimated market value of the underlying securities and the potential settlement outcomes of the future equity obligations, including a liquidity event or future equity financing. Both the market value of the underlying securities and the probability of the settlement outcomes include unobservable Level 3 inputs. In instances where a future equity obligation is issued close to a period end, and there are no changes to the estimated fair value of the Company's underlying common stock, or material changes in Company circumstances, the Company may conclude that the value of the instrument is what the investor paid, as such is an arms-length transaction.

The following table presents changes in Level 3 liabilities measured at fair value for the years ended December 31, 2025 and 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of December 31, 2025:** | **Fair Value Measurements<br> as of December 31, 2025:** | **Fair Value Measurements<br> as of December 31, 2025:** | **Fair Value Measurements<br> as of December 31, 2025:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $500010 | $500010 |
|  | $- | $- | $500010 | $500010 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements<br> as of December 31, 2024:** | **Fair Value Measurements<br> as of December 31, 2024:** | **Fair Value Measurements<br> as of December 31, 2024:** | **Fair Value Measurements<br> as of December 31, 2024:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Liabilities: |  |  |  |  |
| Future equity obligations | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $500010 | $500010 |
|  | $- | $- | $500010 | $500010 |

---

**6.** **PREPAID EXPENSES AND OTHER CURRENT ASSETS** 

Prepaid expenses and other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Prepaid inventory and deposits | $178559 | $259851 |
| Prepaid income tax | 153273 |  |
| Software | 65588 | 128646 |
| Other | 87268 | 108817 |
|  | $484688 | $497314 |

---

**7.** **PROPERTY AND EQUIPMENT, NET** 

The following is a summary of property and equipment, net:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Computer equipment | $5795 | $5795 |
| &nbsp;&nbsp;&nbsp;Total | 5795 | 5795 |
| Less: Accumulated depreciation | (5795) | (3863) |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $- | $1932 |

---

Depreciation expense was $1,932 and $3,523 for the years ended December 31, 2025 and 2024, respectively. During the year ending December 31, 2024, the Company disposed of $44,260 of furniture and fixtures and recorded loss on sale of furniture and fixtures of $40,016 in the consolidated statements of operations.

**8.** **DEBT** 

*Loans Payable*

During the year ended December 31, 2022, the Company received total proceeds of $9,573,653 from the same lender from 5 financings. The Company paid back fixed recurring monthly amounts over the 12-24 month periods relating to each financing. The loans bore interest from 7% - 14% and mature at various times between January 31, 2023 and August 2, 2024.

During the year ended December 31, 2024, the Company made repayments of $2,390,038 and $0 remained current and outstanding as of December 31, 2024. Interest expense for the year ended December 31, 2024 related to these loans was $341,434.

The CARES Act additionally extended COVID relief funding for qualified small businesses under the Economic Injury Disaster Loan (EIDL) assistance program. During 2021, the Company was notified that its EIDL application was approved by the Small Business Association (SBA). Per the terms of the EIDL agreement, the Company received total proceeds of $150,000. The Loan matures in thirty years from the effective date of the Loan and has a fixed interest rate of 3.75% per annum. The Loan has repayment terms that commence one year after the origination date. As of December 31, 2025, $150,000 remained outstanding.

Total interest expense for the SBA loan was $5,630 and $5,594 for the years ended December 31, 2025 and 2024, respectively.

**9.** **FUTURE EQUITY OBLIGATIONS** 

There have been no issuances of future equity obligations for the years ending December 31, 2025 or 2024.

If there is a preferred equity financing before the instrument expires or is terminated, the Company will automatically issue to the investors a number of shares of either a) a number of shares of Standard Preferred Stock equal to the purchase amount divided by the cash price per share of the Standard Preferred Stock, if the pre-money valuation applicable to the new investors is less than or equal to the valuation cap; or b) a number of shares of Safe Preferred Stock equal to the purchase amount divided by the Safe Price. The Safe Price is defined as the valuation cap divided by the number of dilutive shares outstanding.

**10.** **STOCKHOLDERS' EQUITY** 

 ****

***Preferred Stock***

The Company's Amended and Restated Certificate of Incorporation, filed with the Secretary of State of the State of Delaware on October 22, 2021, authorized the Company to issue a total of 29,975,795 shares of Preferred Stock, $0.00001 par value per share, of which (i) 1,077,005 shares were designated as Series Seed-1 Preferred Stock, (ii) 1,292,514 shares were designated as Series Seed-2 Preferred Stock, (iii) 30,618 shares were designated as Series Seed-3 Preferred Stock, (iv) 5,884,428 shares were designated as Series Seed-4 Preferred Stock, (v) 6,531,944 shares were designated as Series Seed-5 Preferred Stock, (vi) 2,357,622 shares were designated as Series Seed-6 Preferred Stock, (vii) 408,266 shares were designated as Series Seed-7 Preferred Stock, (viii) 6,717,483 shares were designated as Series A Preferred Stock, and (ix) 5,675,915 shares were designated as Series A-2 Preferred Stock. On the accompanying balance sheets, the various Series Seed Preferred Stock are presented in aggregate as Series Seed Preferred Stock.

As of December 31, 2025, there were (i) 1,077,005 shares of Series Seed-1 Preferred Stock issued and outstanding, (ii) 1,292,514 shares of Series Seed-2 Preferred Stock issued and outstanding, (iii) 30,618 shares of Series Seed-3 Preferred Stock issued and outstanding, (iv) 5,884,428 shares of Series Seed-4 Preferred Stock issued and outstanding, (v) 6,531,944 shares of Series Seed-5 Preferred Stock issued and outstanding, (vi) 2,357,622 shares of Series Seed-6 Preferred Stock issued and outstanding, (vii) 408,266 shares of Series Seed-7 Preferred Stock issued and outstanding, (viii) 446,143 shares of Series A Preferred Stock issued and outstanding, and (ix) 3,231,280 shares of Series A-2 Preferred Stock issued and outstanding.

The holders of each class of stock shall have the following rights and preferences:

Preferred Stock: See descriptions of the Preferred Stock rights and preferences set forth in the "Dividends", "Voting", and "Liquidation" sections below.

*Dividends*

The holders of the Company's Series A-2 Preferred Stock are entitled to receive, only if declared by the Board of Directors, dividends at the rate of 8% of the original issue price of such stock prior and in preference to any other dividend (other than dividends on shares of Common Stock payable in shares of Common Stock). The Company shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock (other than dividends on shares of Common Stock payable in shares of Common Stock) unless the holders of the Preferred Stock first receive, or simultaneously receive, in addition to the Series A-2 Preferred Stock dividend, a dividend on each outstanding share of Preferred Stock as set forth in the Company's Amended and Restated Certificate of Incorporation.

 

*Voting* 

Shares of Preferred Stock except the Series A-2 Preferred Stock shall be non-voting and shall not be entitled to vote on any matter submitted to a vote of stockholders of the Company. Each holder of Series A-2 Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock held by such holder as if the shares of Series A-2 Preferred Stock held by such holder were converted into shares of Common Stock. Subject to the provisions of the Company's Amended and Restated Certificate of Incorporation, the holders of Series A-2 Preferred Stock shall vote together with the holders of Common Stock as a single class and on an as-converted to Common Stock basis.

 

*Liquidation*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or Deemed Liquidation Event as the case may be, the holders of shares of Series A-2 Preferred Stock will be entitled to be paid out of the assets of the Company available for distribution to its stockholders pro rata based on the number of shares held by each such holder on an as-converted to Common Stock basis.

*Conversion* 

A portion or all of the shares of Preferred Stock may, upon the election of a majority of the outstanding shares of Preferred Stock, specified by vote or written consent, be converted at any time into fully-paid and nonassessable shares of Common Stock. The initial conversion rate shall be one-for-one. The conversion rate shall change as provided in the Amended and Restated Certificate of Incorporation.

 

*Transactions*

 

In 2024, the Company issued 22,211 shares of Series A Preferred Stock for gross proceeds of $186,284.

As of August 6, 2024, the Regulation A Offering was closed.

During the year ended December 31, 2025, the Company repurchased 350 shares of Series A Preferred Stock for no value.

***Common Stock***

Each holder of shares of Common Stock will be entitled to one vote for each share thereof held at the record date for the determination of the stockholders entitled to vote on such matters or, if no such record date is established, the date such vote is taken or any written consent of stockholders is solicited. The holders of the Common Stock are entitled to elect, remove and replace all directors of the Company, other than the director elected by the holders of Series A-2 Preferred Stock. The holders of the Common Stock shall be entitled to receive, on a pari passu basis, when and as declared by the Board of Directors, subject to the rights of any senior Preferred Stock that may then be outstanding, out of any assets of the Company legally available therefore, such dividends as may be declared from time to time by the Board of Directors. In the event of the Company's liquidation, or winding up, whether voluntary or involuntary, subject to the rights of any senior Preferred Stock that may then be outstanding, the assets of the Company legally available for distribution to stockholders shall be distributed on an equal priority, pro rata basis to the holders of Common Stock.

 

In 2025, an option holder exercised options for 30,000 shares of common stock for proceeds of $7,800.

During the year ended December 31, 2025, the Company repurchased 150 shares of common stock for no value.

***PROVEN Group, Inc. 2017 Stock Plan***

 ****

The Company has adopted the PROVEN Group, Inc. 2017 Stock Plan ("2017 Plan"), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2017 Plan, as amended and restated, was 21,466,212 shares as of December 31, 2025. The option exercise price generally may not be less than the underlying stock's fair market value at the date of the grant and generally have a term of ten years.

A summary of information related to stock options is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Intrinsic<br> Value** |
| Outstanding as of December 31, 2023 | 11901399 | $0.78 | $69301241 |
| Granted | 2893827 | 0.75 |  |
| Exercised |  |  |  |
| Forfeited | (2260533) | 0.73 |  |
| Outstanding as of December 31, 2024 | 12534693 | $0.78 | $72942393 |
| Granted | 7260916 | 0.75 |  |
| Exercised | (30000) | 0.26 |  |
| Forfeited | (1260946) | 0.79 |  |
| Outstanding as of December 31, 2025 | 18504663 | $0.77 | $46101753 |
| Exercisable as of December 31, 2024 | 7718019 | $0.78 | $44909313 |
| Exercisable as of December 31, 2025 | 11348189 | $0.78 | $28137570 |

---

As of December 31, 2025, the weighted average duration to expiration of outstanding options was 7.64 years while the weighted average duration to expiration for vested options was 6.74 years.

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted:

---

| | | |
|:---|:---|:---|
|  | **Year Ended** | **Year Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Risk-free interest rate | 3.81% - 4.52% | 3.52% - 4.21% |
| Expected term (in years) | 6.02 - 6.27 | 6.27 |
| Expected volatility | 55.00% | 55.00% |
| Expected dividend yield | 0% | 0% |
| Fair value per stock option | $6.06 | $6.04 |

---

The total grant-date fair value of the options granted during the years ended December 31, 2025 and 2024 was $43,917,396 and $17,472,415, respectively. Stock-based compensation expense for stock options of $16,974,293 and $7,060,936, respectively, was recognized for the years ended December 31, 2025 and 2024. In 2025 and 2024 respectively, $10,443,583 and $4,494,470 was classified in general and administrative expenses, $4,407,479 and $996,319 was classified in research and development expenses and $2,123,231 and $1,570,147 was classified in sales and marketing expenses. in the consolidated statements of operations. Total unrecognized compensation costs related to non-vested stock option awards amounted to $42,820,676 as of December 31, 2025, which will be recognized over a weighted-average period of 1.48 years.

During the year ended December 31, 2025, 227,584 stock options were modified such that the individuals' post-termination exercise period was extended for periods ranging from 2 to 5 years. There was no significant impact to stock-based compensation as a result of these modifications.

***Warrants***

25,000 of Series A preferred stock warrants expired in 2025.

As of December 31, 2025, the Company had 80,135 preferred stock warrants outstanding and 34,343 common warrants outstanding. The weighted average exercise price of these warrants is $6.60 with an expiration date of January 27, 2031.

**11.** **INCOME TAXES** 

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to cash to accrual differences, research and development and net operating loss carryforwards. As of December 31, 2025 and 2024, the Company had net deferred tax assets before valuation allowance of approximately $7,415,226 and $5,699,782, respectively. The following table presents the deferred tax assets and liabilities by source:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Deferred tax assets (liabilities) |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforwards | $3129888 | $2984744 |
| &nbsp;&nbsp;&nbsp;Accruals and other |  |  |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 3679378 | 1588126 |
| &nbsp;&nbsp;&nbsp;Research and development tax credit carryforwards | (474) | (902) |
| &nbsp;&nbsp;&nbsp;Research and experimentation capitalization | 606434 | 1097814 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (7415226) | (5669782) |
| Net deferred tax assets (liabilities) | $- | $- |

---

The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company assessed the need for a valuation allowance against its net deferred tax assets and determined a full valuation allowance is required. For the year ended December 31, 2025, the 80% limitation of our net operating loss carryforwards was used, resulting in an immaterial amount of tax owed. Therefore, valuation allowances of $7,415,226 and $5,699,782 were recorded as of December 31, 2025 and 2024, respectively. Valuation allowance increased by $1,745,444 during the year ended December 31, 2025 and by $648,715 during the year ended December 31, 2024. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 24.6%. The effective rate is reduced to 0% for 2025 and 2024 due to the full valuation allowance on its net deferred tax assets.

The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. On December 31, 2025 and 2024, the Company had net operating loss carryforwards available to offset future taxable income in the amounts of $12,742,432 and $11,661,173, respectively, which may be carried forward indefinitely.

The Company has evaluated its income tax positions and has determined that it does not have any uncertain tax positions. The Company will recognize interest and penalties related to any uncertain tax positions through its income tax expense.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception. The Company is not presently subject to any income tax audit in any taxing jurisdiction, though its 2018 and subsequent tax years remain open to examination.

**12.** **COMMITMENTS AND CONTINGENCIES** 

 ****

***Sales Tax***

It was determined that the Company's sales may be subject to sales tax in certain jurisdictions. The Company is currently assessing its positions and had an estimated liability of $147,692 and $234,543 for sales tax exposure as of December 31, 2025 and 2024, respectively. The Company believes that the ultimate resolution will not be materially different from the estimated liability recorded.

 ****

***Contingencies***

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition, or results of operations.

**13.** **SUBSEQUENT EVENTS** 

Management has evaluated subsequent events through April 30, 2026, the date the consolidated financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these consolidated financial statements, except for the following:

On February 8, 2026, the Board of Directors granted an additional 301,000 stock options under the Company's Amended and Restated 2017 Stock Plan to 21 employees at an exercise price of $0.37 per share.

As of April 30, 2026, the Company notes that a triggering event has occurred related to the conversion of future equity obligations to shares of preferred stock. The Company, along with the Board of Directors, has begun the process to issue these shares at a $6.60 market value price.

**Item 8. EXHIBITS**

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Description** |
| 2.1 | Amended and Restated Certificate of Incorporation (Filed with the Form 1-A DOS of the Company and available here, [<u>https://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename4.htm)</u>](https://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename4.htm) |
| 2.2 | Second Amended and Restated Bylaws (Filed with the Form 1-APOS of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023065133/ea183003ex2-2_provengroup.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023065133/ea183003ex2-2_provengroup.htm) |
| 2.3 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation (Filed with the Form 1-U of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023036499/ea178015-1u_provengroup.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023036499/ea178015ex2-3_provengroup.htm) |
| 3.1\* | Investors' Rights Agreement (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-2_lifespectac.html)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-2_lifespectac.htm) |
| 3.2\* | Voting Agreement (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-3_lifespectac.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-3_lifespectac.htm) |
| 3.3\* | Right of First Refusal and Co-Sale Agreement (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-4_lifespectac.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390023034661/ea177615ex3-4_lifespectac.htm) |
| 6.1 | 2017 Amended and Restated Stock Plan (Filed with the Form 1-A DOS of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename8.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390021031153/filename8.htm) |
| 6.2 | Unsecured Promissory Note – Ming Zhao (Filed with the Form 1-K of the Company and available here,[https://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-2_proven.htm)](http://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-2_proven.htm) |
| 6.3 | Unsecured Promissory Note – Zaoshi Yuan (Filed with the Form 1-K of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-3_proven.htm](http://www.sec.gov/Archives/edgar/data/1777318/000121390024037321/ea020458301ex6-3_proven.htm)) |
| 6.4 | Offer Letter, as amended – Marc Chapman (Filed with the Form 1-SA of the Company and available here, [https://www.sec.gov/Archives/edgar/data/1777318/000121390025091679/ea025868501ex6-4_provengroup.htm](http://www.sec.gov/Archives/edgar/data/1777318/000121390025091679/ea025868501ex6-4_provengroup.htm)) |

---

\* Portions of this exhibit have been omitted

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this Annual Report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| PROVEN Group, Inc. | PROVEN Group, Inc. |
| By Marc Chapman | By Marc Chapman |
| Signature: | /s/ Marc Chapman |
|  | Chief Executive Officer |

---

Date: April 30, 2026

This Annual Report has been signed by the following persons in the capacities and on the dates indicated.

---

| |
|:---|
| /s/ Marc Chapman |
| Marc Chapman, Principal Executive Officer |
| Date: April 30, 2026 |

---

---

| |
|:---|
| /s/ Ming Zhao Wiggins |
| Ming Zhao Wiggins, Chairwoman |
| Date: April 30, 2026 |
| /s/ Zaoshi Yuan |
| Zaoshi Yuan, Principal Financial Officer,<br> Principal Accounting Officer and Director |
| Date: April 30, 2026 |
| Shu Jia, Director |

---

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001777318

**Issuer CCC:** XXXXXXXX

**Is filer a shell company?:** No

**Is this filing by a successor company?:** No

### Submission Contact Information

**Is this a LIVE or TEST Filing?:** LIVE

**Period:** 12-31-2025

### Item 1: Issuer Information (Tab 1 Notification)

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2025

**Exact Name of Issuer:** PROVEN Group, Inc.

**CIK:** 0001777318

**Jurisdiction of Incorporation:** DE

**IRS Number:** 82-3571886

**Address:** 7901 4th St. N STE 4916, St. Petersburg, FL 33702

**Issuer Phone Number:** 415-439-3421

**Title of each class of securities issued pursuant to Regulation A:** Units, Series A Preferred Stock and Common Stock

### Item 2: Ongoing Reporting Requirements

**Is the issuer relying on the relief provided by Rule 257(d) for this filing?** No