# EDGAR Filing Document

**Accession Number:** 0001744757
**File Stem:** 0001477932-25-005195
**Filing Date:** 2025-7
**Character Count:** 531191
**Document Hash:** e9a52e0d80f9bbae814d8cbc66fc587e
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001477932-25-005195.hdr.sgml**: 20250722

**ACCESSION NUMBER**: 0001477932-25-005195

**CONFORMED SUBMISSION TYPE**: 1-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20241231

**FILED AS OF DATE**: 20250722

**DATE AS OF CHANGE**: 20250722

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KingsCrowd, Inc.
- **CENTRAL INDEX KEY:** 0001744757
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 823708101
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-K
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00548
- **FILM NUMBER:** 251139826

**BUSINESS ADDRESS:**
- **STREET 1:** 855 BOYLSTON STREET
- **STREET 2:** SUITE 1000
- **CITY:** BOSTON
- **STATE:** MA
- **ZIP:** 02116
- **BUSINESS PHONE:** 9148764520

**MAIL ADDRESS:**
- **STREET 1:** 101 GLEN LENNOX DRIVE
- **STREET 2:** SUITE 1000
- **CITY:** CHAPEL HILL
- **STATE:** NC
- **ZIP:** 27517

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Kingscrowd LLC
- **DATE OF NAME CHANGE:** 20180626

## Part

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-K**

**ANNUAL REPORT**

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

**For the fiscal year ended <u>December 31, 2024</u>**

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| **KingsCrowd, Inc.** |
| (Exact name of issuer as specified in its charter) |

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Commission File Number: **<u>024-11497</u>**

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| **Delaware** | **82-3708101** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| **410 University Avenue, DPT #11021, Westwood, MA** | **02090** |
| (Address of principal executive offices) | (Zip Code) |

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**<u>(914) 826-4520</u>**

Issuer's telephone number, including area code

**<u>Class A Common Stock</u>**

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

**TABLE OF CONTENTS**

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| **[STATEMENTS REGARDING FORWARD-LOOKING INFORMATION](#SG)** | **[STATEMENTS REGARDING FORWARD-LOOKING INFORMATION](#SG)** | **3** |
| **[Item 1.](#i1)** | **[Business](#i1)** | **5** |
| **[Item 2.](#I2)** | **[Management's Discussion and Analysis of Financial Condition and Results of Operations](#I2)** | **22** |
| **[Item 3.](#i3)** | **[Directors and Officers](#i3)** | **29** |
| **[Item 4.](#i4)** | **[Security Ownership of Management and Certain Securityholders](#i4)** | **36** |
| **[Item 5.](#i5)** | **[Interest of Management and Others in Certain Transactions](#i5)** | **37** |
| **[Item 6.](#i6)** | **[Other Information](#i6)** | **37** |
| **[Item 7.](#i7)** | **[Financial Statements](#i7)** | **37** |
| **[Item 8.](#i8)** | **[Exhibits](#i8)** | **38** |

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**Termination of Regulation A Offering**

In August 2020, the staff of the SEC qualified an offering statement that we filed with the Securities and Exchange Commission, or SEC, pursuant to Regulation A of Section 3(b) of the Securities Act of 1933, as amended, or the Securities Act, for Tier 2 offerings (the "Regulation A Offering"). In the Regulation A Offering, we offered an aggregate of 15,000,000 shares of our Class A common stock, including 13,000,000 newly issued shares offered by the Company (the "Company Offered Shares") and 2,000,000 outstanding shares offered by certain selling stockholders (the "Selling Stockholder Shares" and together with the Company Offered Shares, the "Offering Shares").

On April 28, 2023, we terminated the Regulation A Offering. In the Regulation A Offering, we sold an aggregate of 5,127,062 Offering Shares, which includes 4,574,516 Company Offered Shares and 552,546 Selling Stockholder Shares. Of the Company Offered Shares, we sold 3,161,094 shares to investors in the Regulation A Offering at a price of $1.00 per share for total cash consideration of $3,161,094, and sold and issued 1,413,442 shares upon the conversion of the principal; amount of and accrued interest on certain convertible promissory notes that we sold in 2020 and 2021, which we refer to throughout this annual report on Form 1-K ("Annual Report") as the "2021 Convertible Notes," for total non-cash consideration of $1,130,753, or $0.80 per share, and the Company has realized an aggregate of $4,291,847 of consideration for all Company Offered Shares sold. The Selling Stockholders have received $552,546 from the sale of their Selling Stockholder Shares. We did not receive any of the proceeds from the sale of the Selling Stockholder Shares in the Regulation A Offering.

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**Part II.**

**STATEMENTS REGARDING FORWARD-LOOKING INFORMATION**

We make statements in this Annual Report that are forward-looking statements within the meaning of the federal securities laws. The words "outlook," "believe," "estimate," "potential," "projected," "expect," "anticipate," "intend," "plan," "seek," "may," "could" and similar expressions or statements regarding future periods are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from any predictions of future results, performance or achievements that we express or imply in this Annual Report or in the information incorporated by reference into this Annual Report.

The forward-looking statements included in this Annual Report are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward-looking statements. Factors which could have a material adverse effect on our operations and future prospects include, but are not limited to:

· our ability to raise capital sufficient to execute the range of our growth strategies;

· our ability to attract new subscribers or convert free tier subscribers into paying subscribers;

· our ability to retain our current subscribers and sell paid tier products to them;

· a decline in stock markets or other events that negatively impact the stock markets or the availability of capital for smaller companies that result in fewer people making retail investments and a smaller potential audience for our products;

· we have significant outstanding debt and if we default on such debt, our creditors may have rights against our assets, including the ability to seize and sell the assets, which would materially harm our business;

· our ability to enter into strategic partnerships with financial services institutions and other financial professionals;

· public health crises, pandemics and epidemics may materially harm our business;

· our ability to retain our founder and other key personnel;

· our ability to retain and hire competent employees and appropriately staff our operations;

· interruptions or delays in the services provided by internet service providers that impair the delivery of our products;

· changes in government regulations that materially harm our business;

· our ability to successfully manage our growth;

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· our failure to respond to technological change, keep pace with new technology developments, or adopt a successful technology strategy;

· our ability to scale our business quickly enough to match the anticipated growth of our subscriber base;

· our failure to effectively develop and expand our sales and marketing capabilities;

· our failure to maintain and enhance our brand, which negatively impacts our ability to expand our customer base;

· our failure to adequately protect our proprietary rights in our ratings algorithms and other proprietary technologies;

· our failure to compete effectively in the markets in which we participate;

· our ability to successfully identify and integrate valuable acquisitions, strategic investments, partnerships, collaborations and alliances;

· our ability to obtain additional capital on acceptable terms to support the growth of our business;

· the impact of natural catastrophic events, pandemics, and man-made problems, such as power-disruptions, computer viruses, data security breaches, and terrorism, that disrupt our business;

· the imposition of liability for the information and data we collect and distribute or the reports and other documents produced by our software products;

· the impact of other litigation that could be initiated against that could be costly and time-consuming to defend;

· risks associated with breaches of our data security;

· the impact of the lack of a public market for our Class A common stock or any of our securities on our ability to attract investors and provide existing and new investors with liquidity;

· the concentration of voting power in the two holders of our Class B common stock both of whose directors or managers are directors of our Company, which will limit or preclude the ability of holders of Class A common stock to influence corporate matters; and

· sales of securities to fund our operations and growth may, in the case of equity securities, dilute existing security holders, and, in the case of debt securities, may impose certain conditions or covenants on us that impede our operations.

Any of the assumptions underlying forward-looking statements could be inaccurate. You are cautioned not to place undue reliance on any forward-looking statements included in this Annual Report. All forward-looking statements are made as of the date of this Annual Report and the risk that actual results will differ materially from the expectations expressed in this Annual Report will increase with the passage of time. Except as otherwise required by the federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements after the date of this Annual Report, whether as a result of new information, future events, changed circumstances or any other reason. In light of the significant uncertainties inherent in the forward-looking statements included in this Annual Report, the inclusion of such forward-looking statements should not be regarded as a representation by us or any other person that the objectives and plans set forth in this Annual Report will be achieved.

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**Item 1. Business**

**Overview**

Our mission is to democratize the private capital markets by providing institutional grade data-driven solutions to service investors, founders and industry participants with unique product offerings that meet their individual needs as it pertains to navigating the growing digital retail private markets.

We offer new and seasoned investors in the online private markets the research and insight they need to make data driven investment decisions. We deliver our data in manageable and cogent segments in plain English without diluting the substance or importance of the information, which keeps the data accessible to novice investors without sacrificing the depth and detail demanded by more sophisticated investors. We also offer our subscribers online training and educational tools that instruct them as to how to capitalize on the quantity and quality of data we provide. Lastly, we provide our accredited clients with an opportunity to invest in our Kingscrowd Capital fund, which is a highly diversified venture fund that has an investment mandate to invest in 100 companies over four years that are leveraging Regulation CF ("Reg CF") issuers or Regulation A ("Reg A") issuers for equity offerings of private companies and have been highly rated by our proprietary Kingscrowd rating algorithm. We provide our paid subscribers the opportunity to follow along with this strategy if they do not meet the financial criteria to be investors in the fund by publishing reports on each investment made and why it is made.

We offer investor relations support to founders through the Kingscrowd IR portal, which offers a free tool that helps templatize and streamline investor communications to their crowdfunding investors. Kingscrowd also enables the full historical track record of investor updates to be stored and surfaced for investors so that all investors can access those updates across multiple funding rounds, saving time for investors and averting the frustration of not being able to track company updates efficiently.

We offer founders full-suite drafting, structuring and legal review of Form C, Form 1-A and private placement memoranda suitable for Form D offerings as well as services to satisfy ongoing Form 1-A reporting requirements via Kingscrowd Advisory, Inc. Kingscrowd Advisory Inc., a wholly owned subsidiary of Kingscrowd Inc. was created via the acquisition of CrowdCheck Inc. assets in April 2025. CrowdCheck has been a long-standing advisory firm with a specific focus on Regulation A offerings. We provide legal advisory services to clients through our intercompany agreement with CrowdCheck Law LLP. Founders can get their complete deal structuring and SEC qualifications when working with our Kingscrowd Advisory (DBA CrowdCheck) service line.

We have begun monetizing our data for research and business development purposes to various end parties, most notably universities such as Indiana University, Harvard University, The University of Southern California and The University of Notre Dame. These institutions often enter contracts to purchase Kingscrowd raw data that is comprehensive of Reg CF and Reg A equity and debt offerings for private companies going as far back as 2016. This data is utilized for various research reports published in a myriad of journals looking at this newly emerging private capital markets space. We also monetize our data for business development purposes most notably to major FINRA registered CF portals and broker dealers in the space including Startengine.

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We are not aware of any other entities that provide comprehensive data-driven rating and analytics facility to service the online private market space. Our market is relatively new, arising out of the JOBS Act passed in 2012, and is growing dramatically as investors seek to harness the potential of investing in start-up and early-stage growth companies as well as founders looking for additional sources of growth capital outside of the traditional venture capital landscape. As the first to market, we are amassing and analyzing data sets that we believe will provide us with significant advantages that will differentiate our Company from our future competitors for years to come. With over 9,000 equity and debt offerings tracked to date with 100% coverage of the Reg CF and Reg A equity and debt markets, that includes a growing body of successful exits and failure data, we feel our data and brand trust is building a strong and defensible moat for the business. Some of these advantages include gaining an understanding of the complexities of the market such as being able to account for dollars flowing through the myriad of industry players from FINRA registered portals, to tech providers, to broker-dealers. This detailed reporting is crucial for the industry as we build the most reliable database to help industry players and founders to make important decisions. Additionally, with our growing body of longitudinal data of the companies raising capital in the Reg CF and Reg A markets, we are building a better understanding of how these companies perform, which will allow us to enhance our rating algorithm as well as become further indispensable to investors trying to keep up to date on their long-term investment portfolios. Lastly, the Kingscrowd brand has become synonymous with the industry as the source of truth for what is occurring in the market. This serves us well as new entrants and larger players begin to enter the space, we are the first source participants look to as a solution to navigate these waters.

Currently, we cover all Reg CF and Reg A equity and debt deals of private companies available to the market, and have growing coverage of Rule 506(c) offerings that are live on online private market funding portals.

**Corporate History and Information**

***Our Corporate History***

We were formed as a manager managed limited liability company in Delaware in December 2017. After June 5, 2018 and through the date of our Corporate Conversion from a limited liability company to a corporation, as described below, our board of managers had been comprised of Christopher Lustrino, Nantascot and Netcapital, Inc., or NCI.

In August 2018, we closed a Reg CF offering in which we sold an aggregate of 108,348 units in KingsCrowd LLC prior to the Corporate Conversion described below, for an aggregate price of $121,350, or $1.12 per unit (the equivalent of approximately 1,378,095 shares of Class A common stock in KingsCrowd, Inc. at approximately $0.088 per share).

Commencing in late 2018 and continuing through early 2020, we sold an aggregate of 520,378 units in KingsCrowd LLC prior to the Corporate Conversion described below, for an aggregate price of $1,046,455, or $1.80 per unit (the equivalent of approximately 6,618,766 shares of Class A common stock in KingsCrowd, Inc. at approximately $0.1415 per share).

In November 2018, we acquired certain assets of Crowditz, LLC, a data provider for the Reg CF space, consisting of website domains, software, newsletter subscribers, images, and computer equipment. The acquisition accelerated the growth of our data base of information relating to companies undertaking Reg CF offerings. As consideration for the purchased assets, we issued 90,317 common units, to the owners of Crowditz, LLC, which were valued at $162,571 based on the price of the Company's common units in the Reg CF offering which we were conducting at the time (the equivalent of approximately 1,148,756 shares of Class A common stock in KingsCrowd, Inc. at approximately $0.1415 per share).

In 2019, we sold 27,776 common units to an investor at $1.80 per common unit in KingsCrowd LLC, the price of the Company's common units in the Reg CF offering which we were conducting at the time, for gross proceeds of $50,000 (the equivalent of approximately 353,287 shares of Class A common stock in KingsCrowd, Inc. at approximately $0.1415 per share). We sold these units pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act.

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In December 2019, we entered into a License to Purchase Agreement with Newchip Inc. (now known as Astralabs Inc.) whereby we acquired a license to use certain of that company's software and systems for a period of 16 months. In consideration of the license we agreed to: (i) pay to Astralabs a monthly fee equal to 25% of the revenue we receive based on the assets (the "Astralabs Revenues"), (ii) pay Astralabs an additional fee equal to 1% of the amount the Astralabs Revenues per year until such time as we pay to Astralabs the total amount of $1 million or we are acquired in a positive transaction, at which time we would issue to Astralabs a number of shares of Class A common stock equal to 5% of the outstanding shares of that class as of March 31, 2021, and all of Astralabs' rights in the licensed property would be transferred to us. In connection with the license agreement, we issued to Astralabs a warrant entitling it to purchase up to 110,619 preferred units in KingsCrowd LLC at a price of $2.26 per unit. The preferred units to be issued upon exercise of this warrant were to be the same as those issued in the most recent financing round after the issuance of the warrant. If at the time of exercise, no preferred units had been issued, then the warrants would be exercisable for the same class of units issued to the other members. We did not issue any preferred unit in KingsCrowd LLC prior to the Corporate Conversion and as of the date hereof, the warrant would entitle the holder to purchase 1,406,980 shares of Class A common stock at a price of approximately $0.178 per share. The warrants were exercised in late 2021 and early 2022, resulting in proceeds to us of $250,000.

During the last quarter of 2020 and the first quarter of 2021, we issued and sold convertible promissory notes in the principal amount of $1,099,744, which we refer to as the 2021 Convertible Notes. Upon the qualification by the SEC of the offering statement relating to the Offering, the outstanding principal amount of the 2021 Convertible Notes plus all interest accrued on such promissory notes, which together equaled $1,130,753 as of August 4, 2021, automatically converted into an aggregate of 1,413,442 Company Offered Shares, which we refer to as the "Conversion Shares," at a price equal to 80% of the offering price of the Offering Shares, or $0.80 per Company Offered Share.

In March 2020, we acquired 100% of the membership interests of Early Investing, LLC ("Early Investing") from Oxford Financial Publishing, LLC ("Oxford"), which we have accounted for as an acquisition of assets consisting solely of Early Investing's customer list. Oxford retained the right to sell its own product to the customer list and is permitted to continue generating revenue from the customer list for a period of two years. In consideration of the purchase, we paid to Oxford a sum equal to 40% of the gross revenue we generate from the customer list in the first year after the purchase, 25% in the second year and 10% in the third year.

In February 2022, we entered into an Asset Purchase Agreement with TechNori LLC pursuant to which we acquired substantially all of the assets of TechNori consisting of the name "TechNori" and related proprietary rights, all archives and rights to past podcasts, broadcasts, recordings and presentations, website domains, social media accounts, emails for newsletter and podcast subscribers and listeners, images, customer mailing, advertising, accounting and business records and computer equipment. In connection with the transaction, the founder of TechNori, Mr. Scott Kitun, the founder of TechNori, joined us an employee and has entered into an employment agreement with us. As consideration for the purchased assets, we issued 1,500,000 shares of Class A common stock to the owners of TechNori, including Mr. Kitun.

In February 2023, we entered into a Membership Interest Subscription and Option Agreement (the "Lawbot Subscription Agreement") to acquire 17,000 units in LawBot LLC, equal to a 50.1% membership interest the company, for aggregate consideration of $250,000 (the "LawBot Units""). As further consideration for the LawBot Units, we issued to Michael Knox a warrant to purchase 1,000,000 shares of our Class A common stock exercisable until January 31, 2030 at a price of $1.20 per share. LawBot provides software-based solutions allowing founders to create drafts of Form Cs, Form 1-As and private placement memoranda suitable for Form D offerings, as well as Form C-ARs, which represents an integral part of our business. Under the LawBot agreement, we also acquired an option to purchase additional 16,800 units in the company ("Option Units") at an aggregate price based on 3.5 times Lawbot's adjusted 2025 revenue. "Adjusted 2025 Revenue" equals the total revenue of the Company for the fiscal year ended December 31, 2025, adjusted to give pro-rated credit for any annual contract entered into after January 1, 2025, as determined by those holders of Class A Units who were holders immediately prior to the date hereof, acting in good faith. If we acquire the Option Units, we will own approximately 100% of the outstanding units in LawBot.

On April 4, 2025, we entered into an amendment to the Lawbot Subscription Agreement as partial consideration for a loan extended by Gold Ridge Micro Cap II LLC, an affiliate of Lawbot ("Gold Ridge"), described below (the "Lawbot Amendment Agreement"). Pursuant to the Lawbot Amendment Agreement, we agreed as follows: (i) that, in lieu of having the option to purchase the Option Units in Lawbot, we would be required to purchase such Option Units at the price described in the foregoing paragraph, (ii) in the event that we or any of our creditors files at any time for protection under federal or state bankruptcy laws or we default on the payment of any indebtedness in the amount greater than $25,000, the former owners of Lawbot will have the right to repurchase the Lawbot Units and Option Units from us for $1; and (iii) if we are unable to make the entire amount of the payment for the Option Units on the payment date, we will issue a promissory note to a representative of Lawbot in the amount of any deficiency.

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In December 2024, our subsidiary, Kings Crowd Advisory, Inc. ("KCA"), acquired all of the outstanding shares of capital stock of Crowd Diligence Inc. ("Crowd Diligence") in consideration of the issuance of 938,462 shares of our Class Common Stock and the assumption of $605,199 of debt owed by Crowd Diligence to various parties. On the closing of the transaction, all of the assumed debt was exchanged for promissory notes we issued that are convertible into shares of our Class A Common Stock at any time through May 15, 2026 at a price of $0.18 per share. Crowd Diligence provides legal and compliance services for entrepreneurs, investors and investment platforms in connection with capital formation under the exemptions from the registration provisions of the Securities Act, as more fully described under the heading "BUSINESS – Our Solutions for a New Market.

In April 2025, KCA (i) acquired all of the assets of Crowd Check Inc. ("Crowd Check"), including the trade names "Crowd Check" and "Crowd Check Law"; (ii) assumed certain of Crowd Check's contracts; and (iii) acquired a managing interest in Crowd Check Law LLP, in consideration of the payment of $4,500,000, of which we paid $500,000 in cash on closing and issued a promissory note in the amount of $4,000,000 (the "Crowd Check Note"). The Crowd Check Note does not bear any interest and matures on April 4, 2031. Commencing on May 4, 2025 and on the 4th day of each month thereafter until the entire principal amount of the Crowd Check Note has been paid, we agreed to pay to the holder of said note (x) a sum equal to 70% of KCA's "net income," as such term is defined under generally accepted accounting principles in the United States, generated in the prior month; plus (y) commencing in the month after we have received gross proceeds from the Offerings (as defined below) in an aggregate amount of $1,500,000, a sum equal to 33.3% of the gross proceeds we receive in the Offerings in the prior month. The term "Offerings" means the ongoing offerings of shares of Class A Common Stock we are making pursuant to Regulation CF and Regulation D under the Securities Act. Crowd Check provides legal and compliance services for entrepreneurs, investors and investment platforms in connection with capital formation under the exemptions from the registration provisions of the Securities Act, afforded by Regulation CF, Regulation A and Regulation D. Crowd Check Law provides compliance and legal services for issuers undertaking offerings and complying with ongoing reporting under Regulation A of the Securities Act. We will be in default under the Crowd Check Note if (i) we fail to make any payment of any principal when due and the continuance of such failure for a period of 5 days following written notice of such failure; (ii) if an order, judgment or decree is entered against us decreeing our dissolution, liquidation or winding-up; (iii) proceedings are instituted by or against us under any federal bankruptcy, reorganization, arrangement of debt, insolvency or receivership laws or similar state or federal laws providing for the relief of debtors, and such proceeding is not dismissed, bonded or discharged within sixty (60) days following its institution; or (iv) a receiver is appointed or a receiver takes possession of all or a substantial part of our property, or we make an assignment for the benefit of creditors.

In April 2025, KCA borrowed $500,000 from Gold Ridge (the "Gold Ridge Loan") pursuant to a Senior Secured Note, the proceeds of which borrowing we used to pay the cash portion of the purchase price for the Crowd Check assets, as described in the foregoing paragraph (the "Gold Ridge Note"). From April 4, 2025 through July 4, 2025, interest on the outstanding principal amount of this Note will accrue at the rate of 9.99% per annum. From July 5, 2025 through Maturity, interest will accrue on the outstanding principal amount of the Gold Ridge Note at the rate of 15% per annum. Commencing on May 1, 2025 and on the first day of each month thereafter until the entire principal amount of the Gold Ridge Note has been paid, we have agreed to pay to the lender a sum equal to: (i) 15% of our "net income," as such term is defined under generally accepted accounting principles in the United States, generated in the prior month; plus (ii) a sum equal to 50% of the gross proceeds we receive from the sale of shares of Class A Common Stock in the Offering (as defined in the foregoing paragraph).The Gold Ridge Note matures on April 4, 2026, unless we are in default, in which case the principal amount and interest become due immediately. Interest on the principal amount of the Gold Ridge Note varies. We will be in default under the Gold Ridge Note (i) if we fail to pay. any principal or interest or any other amount when due and such failure continues for 10 days after written notice; (ii) if we sell a material portion of the business and assets of the Company which does not make provision for the repayment of this Note; (iii) if we commence or there is convened against us any proceeding under any existing or future law relating to bankruptcy, insolvency, reorganization, or seek appointment of a receiver or other similar official for it or for all or any substantial part of our, or we make a general assignment for the benefit of its creditors; or we are unable to, or admit in writing our inability to, pay our debts as they become due; or (iv) a judgment is entered against us excess of $200,000 and such judgment or decree has not been vacated within 90 days from the entry thereof. The Gold Ridge Note is secured by all of our assets, so that upon any default under the Gold Ridge Note, the holder of the note could seize our property.

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As additional consideration for the loan by Gold Ridge, we issued to Gold Ridge a warrant to purchase 200,000 shares of Class A Common Stock at a price of $0.01 per share at any time through April 4, 2032 (the "Gold Ridge Warrant"). The Gold Ridge Warrant The number and kind of warrant shares purchasable upon exercise of the Gold Ridge Warrant and the exercise price are subject to adjustment on terms customary for securities of this nature.

***Corporate Conversion***

In December 2020, the Company converted from a limited liability company to a corporation in order to facilitate raising capital and reduce the administrative cost and burden associated with existing as a limited liability company (the "Corporate Conversion").

***Regulation A Offering***

As described above under the heading "Termination of Offering Pursuant to Regulation A," on April 28, 2023, we terminated the Regulation A Offering.

***Corporate Offices and Visibility***

We maintain our principal executive offices at 410 University Avenue, DPT #11021, Westwood, Massachusetts 02090. We also lease an office in Chapel Hill, North Carolina. The preponderance of our employees have the option to work remotely. As a result of this strategy, we maintain physical offices in cities where our officers reside for purposes of collaboration and team building. We may lease office space in additional cities where we find a future concentration of employees. Our telephone number is (914) 826-4520.

We maintain a website at www.kingscrowd.com. Information available on our website is not incorporated by reference in and is not deemed a part of this Annual Report.

**Our Industry** 

Companies such as Moody's Investors Service, Standard and Poor's and Fitch Ratings have been offering securities research, analysis and ratings services since the early 20<sup>th</sup> century and are well-known and trusted names in the industry. Investment banks, such JP Morgan Chase, Bank of America Merrill Lynch and Goldman Sachs, and independent firms, such as Morningstar and Value Line, also provide their customers with broad categories of research and investment analysis. These firms cover equity, debt and derivative securities issued principally by large companies, funds and governments. Until recently, consumers did not require research and analytic services and tools for smaller private issuers of securities because they raised capital in offerings exempt from the registration requirement of the Securities Act that restricted offers and sales of their securities principally to accredited investors on a private basis.

· Create Reg CF under which eligible companies are allowed to raise a maximum of $5,000,000 in a 12-month period exclusively through an online platform operated by an intermediary that must be a broker-dealer or a funding portal that is registered with the SEC and FINRA. Reg CF permits sales of securities to accredited and non-accredited investors, subject to investment limitations for non-accredited investors. Issuers relying on Reg CF must file disclosure documents through the SEC's EDGAR system but the documents they are required to file are significantly less burdensome and costly to prepare than the disclosure documents required by Reg A and registered public offerings, making Reg CF ideally suited for start-up and pre-revenue companies seeking capital from third-party investors.

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· Amend Reg A to create what is sometimes referred to as Reg A, which allows issuers to offer and sell up to $75 million of their securities during a twelve-month period publicly, on a self-underwritten basis, through placement agents or through a third-party online platform, and to employ general solicitation (within certain guidelines) in connection with offers and sales of securities. Reg A permits sales of securities to accredited and non-accredited investors, subject to investment limitations for non-accredited investors. Securities sold in Reg A offerings are not subject to transfer restrictions and are not restricted under Rule 144. This is an attractive feature for investors compared to securities purchased in other types of private offerings, including Reg D and Reg CF, that are restricted securities and may not be resold for some period of time after purchase. Many issuers are utilizing Reg A as a means to "go public" either by listing the securities sold directly on a stock market or creating a secondary trading market for the securities on an over the counter (OTC) quotation service such as one of the markets operated by OTC Markets Group. Issuers relying on Reg A must file disclosure documents through the SEC's EDGAR system but, typically, raising capital by way of Reg A is significantly less expensive than conducting an initial public offering (IPO), which is attractive to issuers.

· Add new Rule 506(c) to Reg D which allows issuers of securities to engage in general solicitation in the offer and sale of securities solely to accredited investors. Private placements made pursuant to Rule 506 have been and remain the most common regulatory pathway for businesses to raise capital for many reasons, including that an issuer is not required to disseminate any specific disclosure other than what investors in the offering may request and because offering materials are not subject to SEC review. Prior to the adoption of Rule 506(c), general solicitation was prohibited in Rule 506 offerings, effectively limiting offers and sales of securities to accredited investors with whom the issuer had a preexisting relationship.

(The foregoing discussions of Rule 506(c), Reg A and Reg CF do not purport to be complete and are intended only to provide the information relevant to a discussion of the origination of our business.)

The revised and new laws adopted under the auspices of the JOBS Act directly enable our business, both from an issuer and an investor perspective. For issuers of securities, the new rules make different types of financing available to a wider range of issuers by way of new offering media. For investors, general solicitation, the provision of access to offerings by start-up and early-stage companies to non-accredited investors and the proliferation of internet-based funding portals through which these offerings are marketed to the public have been drivers for increased individual interest and investment in the online private markets. All of these factors have served to expand the universe of potential investors to whom private offerings may be made. Reg A and Reg CF have made investing accessible to the general public. Ordinary people now have the ability to invest in early-stage companies typically in manageable investment increments, in many cases less than $100, and at low unit offering prices, often below $1. The internet platforms through which Reg A and Reg CF offerings are made provide people with a new way to invest beyond the stockbroker/investment bank model and allow them to invest in companies that satisfy very particular personal criteria, such as companies that have a socially driven mission. The rise in the stock market over the last several years appears to have inspired ordinary people to embrace personal investing as a means of providing for their future and having fun. We believe that the COVID-19 pandemic has been a driver of independent, individual investment, as more people are working from home and have extra free time to allocate to other activities. Perhaps, most importantly, we have found that our subscribers truly enjoy learning how to invest and investigating and analyzing potential investments and the empowering feeling of making an investment and building a portfolio on their own.

Reg CF, Reg A and Rule 506(c) have proven to be popular with issuers and investors. Though recent macro-economic factors including inflation and a steep decrease in venture capital activity did lead to a slowdown in the Reg CF markets, these markets proved resilient in comparison to the traditional venture capital markets. 2024 Reg CF investment levels were at 69% of their 2021 peak, compared to VC deal activity at only 50% of its 2021 peak.

With regard to Reg CF, a January 2025 dataset produced by Kingscrowd, Inc. showed there were 1,408 new Reg CF in offerings in 2024, a decrease of 2.8% compared to 2023, and aggregate capital commitments to Reg CF issuers decreased by 18% from $420 million in 2023 to $344 million in 2024. The average raise increased from $366,000 in 2023 to $368,000 in 2023. The number of investors participating in offerings, as publicly disclosed by the funding platforms, increased from 338,427 investors in 2023 to 362,169 investors in 2024, a 7.0% increase compared to 2023.

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In May 2025, the SEC Division of Economic and Risk Analysis (DERA) released a report showing that since the effectiveness of the Reg A amendments in 2015:

Approximately $9.4 billion in proceeds was reported by over 800 issuers (average of $12.5 million); and

$28.3 billion was sought across 1,426 qualified offerings (average of $19.8 million), including $2.0 billion sought across 273 qualified Tier 1 offerings and $26.3 billion sought across 1,153 Tier 2 offerings.

These activity levels are significantly higher than those observed under the pre-2015 version of Regulation A, largely because the 2015 amendments—and the 2021 increase in the Tier 2 cap from $50 million to $75 million—expanded the maximum offering size and otherwise streamlined compliance, making Regulation A a far more practical capital-raising path for many issuers.

Per a report released by the SEC Office of the Advocate for Small Business Capital Formation, during the period July 1, 2023 to June 30, 2024, issuers raised approximately $12 billion pursuant to Rule 506(c). Many of these offerings are posted on internet-based Reg D equity offering platforms to provide broader exposure to a wider audience of investors, thereby providing access to deals to accredited investors on a global basis in every business sector.

**Our Opportunity**

We believe that the trend in the increase in the number of Reg A and Reg CF offerings and the aggregate amount raised by issuers will continue and will escalate and mature in the coming years. From a regulatory perspective, we see the SEC and other federal agencies continuing to enhance and fine tune these regulations in ways that will make them more secure and appealing to issuers and investors alike. From the issuer perspective, we believe that as increasing numbers of companies and their advisors take notice of the potential to raise capital by way of the internet-based portals through which these securities are offered, these exemptions will be utilized more regularly. We also believe that the increased offering amounts available under Reg A and Reg CF effective in March 2021 will make these exemptions viable funding pathways to raise meaningful sums of capital for a wider range of issuers and drive further use of these exemptions. From an investor perspective, we believe that as more people become aware that they can participate in start-up and early-stage investing, the audience for these types of offerings will grow. Public interest and excitement in these smaller offerings may flourish as successful companies that got their start by way of a Reg A or Reg CF offering, including, perhaps, a "unicorn" (a private company with a valuation over $1 billion), complete initial public offerings at a price many times the price paid by a Reg A or Reg CF investor. We also believe that as the technologies that power online platforms continue to evolve, the investment process will become more seamless, secure and accessible to retail investors.

We expect that our role in the industry will continue to grow and evolve. As the number of offerings posted to online platforms increases, which will deepen the difficulty investors face screening and identifying the best investments, the value of our product increases. As more investors enter the online private markets, our applicable market size grows and we will continue to develop products that meet our customers' evolving approach to investing and the research they demand to satisfy their needs. We believe that our ratings algorithms, as well as machine learning technologies and other new technologies, will continue to progress and attract more investors to the online private markets and our services. We believe that we are developing a reputation as a trusted provider of ratings and analytics in the online private market space. As the first mover in our industry, we are confident that as independent retail investing continues to take off, we will be poised to capture a large share of the growing market. We have also seen a rise in the number of founders, industry players and researchers wanting to leverage our data solutions because we have collected enough aggregate data to provide insights and answers to how to navigate the future of the market. Additionally, larger institutions are beginning to appreciate investors' increased interest in these smaller offerings and the aggregate dollars invested in the online markets represent growth potential that cannot be ignored. We are now fielding inquiries from the corporate development departments of global financial services providers in the public markets that are connecting with us to make our private equity solutions available to their customers. With these developments, we see our future growing both organically with retail investors and through corporate development with major institutions who we hope will license our products and make them available to their customers.

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**Our Solutions for a New Market**

Until recently, retail investors in the online private markets had to identify attractive deals from the countless documents filed by issuers on the EDGAR system or posted on online funding platforms and struggle through dense offering materials to conduct the research necessary to make an investment decision in a company. Learning about available offerings in business sectors in which they were interested and conducting the research relating to appropriate investments had been a difficult and time-consuming exercise for investors. For new or unsophisticated investors, the process could be intimidating and overwhelming, and, to many, an impenetrable barrier to getting started. Many seasoned investors do not have the time to undertake effective comprehensive research with respect to all of the deals available to them. And many new and seasoned investors simply want robust due diligence tools that look and feel like public equity research tools in order to inform their investment decisions. With private equity and debt investing being so new, investors are often looking for education and a 'partner' in their investing journey rather than feeling like they are doing it on their own.

We founded our Company so that everyone could have access to institutional-grade ratings, research and analytics tools to analyze Reg CF, Reg A and Rule 506(c) offerings and to simplify the investment selection process. Our product solutions aggregate and summarize deal-flow from all Reg CF online funding portals and Reg CF/RegA broker-dealers into a single platform and provide all constituents in the online private markets with the information they need to make informed market decisions, whether it is making an investment decision for an investor, a growth decision for a platform, a platform selection or valuation decision for a founder and more.

Equity capital is typically raised in many rounds of financing that correspond to a company's stage of development. Each stage entails its own risks and generally, the more recently a company was organized, the riskier the investment because the company may, for example, still be developing its products or may not have a management team in place. At each stage in a company's life cycle, it may rely on one of the private offering exemptions described throughout this Annual Report to raise capital. Historically, the specific exemptions from registration upon which a company would rely in making an offering corresponded to the company's stage of development. However, with the increase in the offering limits to Reg A from $50 million to $75 million in March 2021, and to Reg CF from $1.07 million to $5 million in March 2021, these exemptions are available to a wider range of companies at various points in their life cycles. Investors may be attracted to specific stages of capital formation because, for example, they have a higher threshold for risk and the potentially higher return these types of deals may enjoy, their financial resources may limit them to investing only in pre-seed and seed funding deals (Reg CF deals) which may include companies offering securities a lower per unit prices and lower minimum investment amounts as compared to more mature deals, or because they enjoy the excitement of investing in these types of deals. Our current products are geared mostly to investors who invest in start-up and early-stage companies with limited but expanding coverage of larger deals offered under Reg A or Rule 506(c). We plan to develop products that cover all deal across the spectrum of private funding.

Below is a general description of the types of financing that companies pursue at various stages of their life cycle and the exemptions form registration on which they may rely in making a securities offering, which may provide insight into the products that we offer.

*Pre-Seed Funding*, which refers to the initial capital a company raises, is typically obtained from friends, family members and personal credit. This round could be as small as $5,000 and as high as $100,000. Companies at this stage usually have an idea for a product and often not much more. Institutional funding and bank loans typically are not available for companies in this round because they are not generating revenue. With this funding, the company may perfect its business plan, start building its management team, purchase production equipment, build a website, or build product prototypes.

*Seed Funding* (also called seed capital) typically ranges from $100,000 to $500,000 and historically has been provided by angel investors who may purchase convertible notes or common stock. Companies may use seed funding to grow the business and achieve proof of concept, which may entail building a product or service and establishing that customers will buy it.

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Series A funding typically ranges from $3,000,000 to $50,000,000 and historically has been provided by venture capitalist and private equity funds who may purchase preferred stock or common stock. Companies may use Series A funding to rapidly grow top-line revenues and expand product features and capabilities as the business matures.

Investments in companies seeking pre-seed and seed funding are usually the riskiest types of investment because there are so many variables for which there are no clear answers, such as whether an issuer's products will ever be developed or gain market acceptance. Many companies are now utilizing Reg CF to raise capital at these stages because Reg CF portals offer them higher visibility and access to a wide audience of potential investors to whom they can offer and sell securities at very low unit prices. There is also a growing number of Series A companies utilizing Reg CF due to the increase to a $5 million limit. Some of the more mature companies in the seed and Series A funding stage may consider offering under Reg A, which may be more appealing to investors because the securities purchased are freely transferable.

*Growth Stage Investment* (Series A - C series preferred stock). "Series A" financing historically has been used to describe the first round of institutional funding for a venture. The name is derived from the class of preferred stock investors receive in return for their capital. A typical Series A round may be between $2 million and $5 million. Capital may be used for virtually any purpose and cover the full spectrum of needs – from product development and marketing to employee salaries, with the goal of funding one or two years of operations. In Series B offerings, companies may raise $5 million to $20 million in capital or more. Each round may be used for a specific purpose, such as expansion, product development or marketing. Preferred stock usually offers the investor rights beyond those possessed by holders of common stock, such as preferred dividend or liquidation rights, or the right to elect a director.

*Later Stage Investment* (Series D preferred stock and beyond – some venture backed companies have raised over 10 rounds of preferred stock financing) are further rounds of venture capital funding. Each round may raise between $5 million and $20 million or more. These rounds typically had been funded by institutions, venture capital firms, strategic partners and corporate investors.

Prior to the adoption of Reg A, smaller series preferred rounds typically were raised under Rule 506(b) through investment banks, registered broker-dealers that placed the securities with their customers, or to angel investors or institutions that had an appetite for what are considered in the industry to be very small deals which are riskier. The increase in the maximum offering amount permissible under Reg A in 2015 and the opening of deals at this level to non-accredited investors changed the capital raising landscape for companies at this stage of development. Companies are no longer beholden to Rule 506(b), which limits the investor audience to accredited investors only and the way in which these deals were pitched to prospective investors. However, many companies continue to prefer Rule 506(b) offerings because the offering documents and the details of their business remain confidential and these deals are usually funded by smaller groups of investors who are more sophisticated.

*Mezzanine Financing* is often provided by institutions, private equity firms, and the like, and may be structured as equity, debt, or convertible notes that is provided to a company just prior to its initial public offering ("IPO"). Mezzanine investors generally take less risk, since the company is generally solid and poised to "cash out" relatively quickly. Most mezzanine financing is obtained in reliance on Rule 506(b).

***Current Products***

Our products comprise three principal business focuses, which represent Kingscrowd consumer, Kingscrowd Institutional and Kingscrowd Advisory.

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We collect more than 300 data points on each issuer, including information relating to its team, its market, financial statements, traction with consumers, and competitors. Our investment research team collects data from multiple sources such as the issuers' pitch decks, capital raise pages on all of the funding portals (including all Reg CF funding portals such as Wefunder, Republic, Netcapital, SeedInvest), news articles and announcements, social media, founder profiles and resumes, recruitment websites, the SEC filings, growth data provided by the companies and information derived from alternative data sources. Our research team distills and compiles the data in easily manageable segments. Our research team incorporates three layers of data audit, including individual data review; peer reviewed data and our Vice President of Investments final review. We maintain and track all of our research in the investment research portal designed and built by our team.

Our proprietary algorithm uses a comparative modeling approach to rank and score all companies actively raising capital from the markets across the various key dimensions deemed notable in the rating algorithm and traditionally utilized by venture investors to make informed investment decisions. The end result is a number between 1 (lowest score) and 5 (highest score) for every aspect of the issuer, including: price, market, differentiation, performance, team, and risk, as well as an overall score for the issuer at a specific funding round. Our software team employs four layers of code review including personal code review, group code review; staging review; and post-launch bug review and fix.

Kingscrowd Capital is our venture fund, raised from Kingscrowd customers. This opportunity allows investors to make a single investment in the fund which makes investments into 100 companies highly rated by the Kingscrowd rating algorithm in addition to a deep dive analysis by our analyst team. To date, we have made 57 investments including two follow on investments in portfolio companies. For non-accredited investors, they can follow the KC Capital strategy by following our Top Deal reports published on each invested company.

Kingscrowd also provides educational sponsored webinars and events. These sponsored events are typically financial service providers or alternative asset providers that fall outside our analysis purview. For instance, we may have on a provider like Directed IRA to discuss investing in alternatives with an IRA to teach our clients about the benefits of Roth IRA investing in private market investing. Our programming is meant to provide education to help better educate our investor base to become even more intelligent, empowered investors, while providing to our sponsor clients, the opportunity to be in front of our highly engaged, mass affluent investor base. We also host live pitch events with curated founders actively raising in the CF space to provide a unique pitch event where investors can actually invest in every company pitching. Typically, we will work with service providers such as cap table solutions providers to sponsor these events.

*Free Tier* – Our free tier offering provides retail investors with access to basic analytics on every company raising capital under Reg CF. The landing page of our website available to all tiers includes general industry data, including general Reg CF industry statistics, an overview of new deals, top ten weekly raises, latest ratings, latest analyst reports, industry valuation trends, industry analysis, founder profiles, top deals, deals to watch, and much more. From the landing page, a subscriber can link to various pages that provide educational tools and other information about investing and information pertaining to companies conducting offerings, which includes analyst reports, ratings and other resources. It also provides market level analytics on the Reg CF space as a whole, including the amount raised on each Reg CF platform, aggregate information by industry and development stage of companies offering under Reg CF. We also offer subscribers to create their own portfolio page to add all of their Reg CF investments from the various platforms into a personal portfolio that allows them to visualize all of their Reg CF investments in one place (we make clear to our subscribers that we are not the holder of the investments, nor a portfolio manager; we simply provide visualizations of investments in one place).

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Each company page on our website provides a synopsis of the deal: specific deal information, such as the amount sought and the valuation of the issuer; fundraising performance analytics such as investment momentum, amount raised to date, number of investors, and a "price score" that rates the per unit price of the security offered against the valuation; the industry in which the issuer operates; the market for its products; the management team, differentiating factors; performance; and our outlook for the company under both good and less than optimal conditions. We also send our subscribers weekly emails covering the latest deals to market, a newsletter roundup of what's going on at KingsCrowd and other general industry news.

Each of our paid tiers offer the information and tools available in the free tier with the additional features we describe below.

*Edge Tier* – A $14.99 per month paid subscription, or $149 annually, that offers subscribers access to all quantitative ratings that benchmarks all Reg CF and Reg A deals against one another providing a powerful sorting and filtering tool for analyzing the market of available investment opportunities on all Reg CF and Reg A platforms. patent-pending rating algorithm for early and growth-stage companies (pre-seed, seed stage and Series A and Series B companies). This provides a quantitative deep dive on all key components (e.g., price, team, market, differentiators, performance) and easy sorting and filtering tools for identifying these market opportunities. Additionally, Edge Pro members receive access to our qualitative analyst reports, which provide deep-dive analysis of a select set of companies providing similar initiated coverages to those seen in the public markets such as 'strong buy', 'buy', etc. In 2022, we also added coverage of all early-access IPOs provided on brokerages such as SOFI and Robinhood. Lastly, Edge Pro members receive access to deeper dive analyst tools including the ability to download CSVs of certain portions of KingsCrowd data to conduct their own offline analysis.

KingsCrowd Capital – In January 2022, we launched a new line of business through the creation of KingsCrowd Capital LLC to manage private investment funds that invest in companies rated by our team. These funds are intended to give investors the opportunity to invest in diversified portfolios of companies covered by our research, ratings and analyst reports. We have partnered with AngelList to create and administer these funds. We are the sole member and manager of KingsCrowd Capital, and serve as the investment sub-advisor to the funds. Currently, one of these funds, which will invest in those companies rated in our two highest rating categories, is active. KingsCrowd Capital receives a management fee of 1% of the value of the assets of the fund and a carry equal of up to 10% of investment returns, subject to customary terms and adjustments. The fund has $2,110,000 in AUM has raised from 67 LPs who are "accredited investors" and has a 10-year life. We expect to launch additional funds built around other ways of using the output from our research, ratings and analysts reports in the future. KingsCrowd Capital is an exempt reporting adviser under the Investment Advisers Act of 1940 and the funds are structured and intend to operate to be exempt from registration as investment companies under the Investment Company Act of 1940 as venture capital funds. The funds will be offered and sold under an exemption from registration under the Securities Act pursuant to Rule 506(c) under Regulation D.

Sponsorship –The KingsCrowd Pitch Review Newsletter, the industry leading publication followed by tens of thousands of investors tracking the online private markets with a 59%+ open rate, 3X the average open rate in financial services. With industry leading engagement rates and a mass affluent reader base we have garnered interest from professional organizations to market to our clients through our newsletter and podcast including Alumni Ventures, Directed IRA, Percent and more. Typically, engagements run between $3,000 to $10,000 per month. Referral based agreements are also considered on a one-off basis. It is our internal policy not to allow issuers of any offerings we rate or platforms that offer any companies we rate to sponsor our newsletter and/or podcast. We also host founder curated in-person pitch events with professional service providers such as Fidelity Private Markets sponsoring for $5,000 to $10,000 per event.

Data sales – As KingsCrowd has grown its data sets have become desirable to multiple end parties including industry players such as platforms, law firms, accounting firms, marketing agencies and more. Additionally, universities purchase our data as well for market research. We currently charge based on the level of access needed including number of data points, number of historical years, etc. Our data can be purchased either as CSV downloads or as an API access. API access is charged based on level of use as well as what the use case is for.

Founder software – Leveraging our acquisition of Lawbot LLC and our deep dataset of Reg CF and Reg A issuers, we have created software that templatizes and simplifies the process of drafting Form C, 1-A and Reg D forms prior to a capital raise. Our team of paralegals further assist issuers in navigating the creation of these forms in a manner that makes it more accessible and simpler for founders. We layer this approach by providing access to our Kingscrowd market comp tool, which allows issuers to look at other issuers raising capital that look similar to them to help them think through questions such as where should they list, what valuations do well and what security type are investors looking for plus much more. We pair issuers with outside legal counsel to finalize their forms for filing.

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Founder advisory – Leveraging our acquisition of CrowdCheck Inc. assets, we provide comprehensive Form C, 1-A and Form D filing services including legal opinions and Regulation A qualifications through our intercompany agreement with CrowdCheck Law, LLP. Founders can also utilize our services for ongoing reporting requirements such as 1-SAs and 1-Ks.

***Subscription Tier Product Development***

Our first offering to subscribers was focused on serving retail investors with complete coverage of all Reg CF and Reg A (pre-seed, seed Series A, growth stage) offerings. In July 2025, we are launching our Pro tier focused on serving the growing body of professionals in our industry (e.g., business development teams at major platforms such as Wefunder and Startengine). This offering will be charged at $2,500 per year and include three licenses. This offering will offer several powerful BD and market intelligence tools not currently available on our retail subscription. We are also looking to launch our premier tier for super-users of the Kingscrowd platform (our estimate is the top 10% of users).25 investments per year in the Reg CF and Reg A markets.

We expect that many of our future products will be directed to discrete market niches and more sophisticated investors.

*Edge Pro* – We have seen a rise in the number of platforms, marketing agencies, broker-dealers, law firms and consultants in our industry that are leveraging Kingscrowd to inform their daily work. Our data helps answer a myriad of questions regarding what platforms are performing best, what industries are seeing more investment activity, what trends there are in valuation and security type, among other aspects of the industry. Providing a more tailored solution focused less on our investment research and more on market data and analysis presents an opportunity to sell a professional subscription that provides these analytical capabilities. We have surveyed many industry players to understand their unique needs differ from those of individual investors and plan to provide a more tailored subscription for this user-base.

*Edge Premium* – Is a premium consumer offering tailored for those investors making more investments each year and tending to invest $10,000 or more per investment. These typically higher net worth, more engaged investors are seeking more access to founders, more investor community and opportunities to connect with like-minded individuals and more tracking data for managing their portfolio over time. This offering priced around $2,500 per year is focused on providing a high-touch service for this segment of customer.

***Ratings Algorithm Development***

We have been collecting significant data on every company undertaking offerings on crowdfunding platforms for many years and we are currently working on machine learning algorithms to predict successful fundraising metrics, such as: Would the company reach its target funding amount or not, if yes, how long will it take? How many investors would invest? What would be the average investment amount? and much more. Also, by having access to thousands of both successful and failed companies we are working on an artificial intelligence model that would be able to predict the potential valuation of new startups at different stages, and the potential exit returns.

Utilizing our 300 data points on each company and watching the progress of these companies over time, we can begin to identify patterns within our rating system that lead to outperformance, which can be utilized for creating future indices products. We will seek to expand our rating algorithm capabilities by:

· developing the data infrastructure to support a growing number of data points as we cover more of the online private markets;

· beginning to track company performance over time and apply machine learning algorithms that enable predictive analytics for private market investing;

· creating data automation capabilities to better scale up our market coverage capabilities; and

· developing first of its kind indexes of the online private markets utilizing our data sets.

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**Our Competitive Advantage**

***First-mover***

We have the advantage of being the first and, we believe, only data-driven rating system for the online private markets. While there is a Reg CF deal flow aggregator in hubtas.com, we are not aware of any other company that currently is tracking every Reg CF deal in the market or any Reg A, Rule 506(c) or late-stage secondary deals, and rating each of them with a standardized, proprietary rating formula for assessing the qualities of early, growth and late-stage investment opportunities in the online private markets. We believe our first to market position provides us with a number of advantages, including that:

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| ·  | we are gaining familiarity with different classes of investors in the online private markets which will allow us to develop the products that users most desire; |
| ·  | as the only service provider in this space, we believe that we are building a reputation that will position us to establish relationships with and provide products to financial services institutions and other financial services providers before competition in the space increases; |
| ·  | our singular status will position us as the leader in the space for online private market tools and afford us the ability to establish and shape industry norms and standards; |
|  | We believe that we are building a reputation as a trusted provider of research, analytic tools and ratings in the online private markets and that we can continue to make a name for our Company; |
|  | Our historical database continues to grow and with a significant amount of completed offering pages and raise information disappearing, we are positioned to capture data that would be extremely challenging to recreate; and |
|  | Our body of follow-on performance data now includes hundreds of exits and failures and is growing monthly allowing us to develop better performance data as well as rating algorithm developments based on these exit outcome learnings. |

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***Independent***

We provide research, analytics and ratings independent of the companies we cover, and accept payments only from our subscribers to access the ratings and analytics we generate. Our customers can trust that the information we provide to them is unbiased because we do not accept advertisements or other payments or perquisites from issuers, online platforms or their agents. We will continue to function autonomously from funding platforms and issuers.

***Large and Growing Dataset***

We have been tracking every Reg CF deal for over seven years and Reg A deals for over four years and we have built and continue to add to our proprietary database of companies raising capital online. The value of our datasets grows each day as the universe of Reg CF and Reg A companies grow and the importance of data in this market grows. We believe that our database will allow us to distinguish and analyze trends in the overall markets for the different types of offerings and for industries and sectors within these markets as well as differentiate the competing online platforms based on types of deals and success. The growth of our database will allow us to fine-tune our ratings algorithms and create the foundation for us to develop machine learning capabilities that we believe will enhance the accuracy of our ratings and rankings.

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***Rating Algorithms***

Our proprietary ratings algorithms for private companies from early through growth stage companies are the first and only one of their kind. Our proprietary algorithms compare all issuers that are actively raising capital to each other based on over 300 data points that we collect and are processed through our proprietary rating algorithm, which ranks them based on collected data, and then converts the ranking into a score. With our data base of historical performance, we are able to back-test deals against our rating, which allows us to continuously improve our algorithms, which will provide us with a data and intelligence edge that would likely take years for others to replicate, if at all. Historically, our rating algorithm has shown a potential ability to identify companies that can continue on to new rounds of funding at higher valuations.

***Quality***

We subject our ratings analyses to four levels of software review and our investment research content to three levels of data audit to ensure the accuracy of the information we provide to our subscribers.

**Our Market Strategy**

We seek to acquire customers in an efficient manner. We believe that brand building is an important direct and indirect component of our marketing strategy and will continue to incorporate brand building strategies into all of our go to market efforts. Our goal is to be synonymous with trusted research, analytics and ratings for retail investors in the online private markets.

We will allocate a significant percentage of the net proceeds we receive from the Offering to marketing efforts. We intend to engage additional experienced marketing personnel that share our vision for our Company to develop and implement marketing campaigns to attract retail investors and financial institutions and professionals.

***Direct-to-Retail Investors***

Our direct-to-retail investors approach leverages digital customer acquisition tools, social media campaigns and print advertising.

We have enjoyed significant success utilizing search engine optimization, or SEO, which helps our audience find us by boosting our ranking during internet searches. Services such as Google Analytics and HubSpot, provide immediate feedback as to the success of any specific Internet based marketing effort by allowing us to track where and how we are acquiring our customers and understand the strength of each ad channel.

We utilize Facebook, LinkedIn and other social media platforms which also allow us to track successful ad campaigns. We believe that these channels are effective in creating name recognition for and name awareness of our Company and assist with building our brand.

Our customer surveys show that we acquire a steady stream of new retail investors through our existing subscribers through referrals. We expect to implement a personal referral program over the coming months to reward subscribers who introduce paying customers to our platform.

We also plan to employ print ads to appear in select publications in certain geographic areas. We expect to pursue ad placement to attract individual subscribers in larger financial publications.

Our goods and services are purchased on a one-time, monthly and annual subscriptions. All of our customers are stored in our customer relationship management, or CRM, tools and we have developed a strategy for communicating with them on a regular basis. For non-paid subscribers, we typically send two monthly emails to incentivize them to enroll in a paid subscription product. We also communicate regularly (once per month) with paid members to encourage upgrading to higher tier products. We consistently send emails to our customers around website content to keep them generally informed of what is going on at a weekly basis. We have enjoyed exceptional email open rates (often 590%, well above market averages in the 11 and 12%) and high general user engagement from our audience with the current communication plan in place.

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***Financial Publishers***

We work with financial publishers on a pay for performance basis, by inserting ads into their publications. Working with financial publishers has been a valuable tool because the ads we place are formatted and tagged in such a way that we know what ads are effective at driving customer response, which make our ad spend more efficient. We intend to continue working with financial publishers and to develop a pay for performance plan in which we agree to pay the publisher for paid subscribers that originate out of their publication.

***Financial Institutions and Other Financial Professionals***

We expect that our future marketing plans will target financial institutions, financial publications and other financial professionals, such as wealth advisers and public markets data providers. We will seek to enter into partnerships and licensing arrangements that will allow these organizations and professionals to make our products available to their customers, which could expand our user base rapidly and significantly.

As we complete development of products for the move into business-to-business offerings, or B2B, and B2B2C products (in which we sell our products to another business that makes our products available to its customers), we will be scaling up our professional support sales teams for marketing our products to financial institutions, financial publications and other financial professionals.

**Growth Strategy**

We are allocating a substantial percentage of the net proceeds we receive from the sale of Class A common stock in the Offering to enhance existing products and create new products and services, expand our marketing efforts and research product development. We will continue to improve our algorithms, web site, platform, investment research capabilities, ratings algorithms, and develop new products. Our plans for the future of the business are as follows:

***Acquire New Customers***

We believe that our first-to-market status provides us with a substantial opportunity to increase adoption of our solutions. We have experienced strong organic new customer growth due to the free tier subscription which can be augmented by upgrading to paid subscriptions. We intend to aggressively pursue new customers with increasing efficiency while expanding our sales capacity and market reach.

***Continue to Innovate and Develop New Products***

We are focused on investing in research and development to continue to enhance our products and release new products and features. We are focused on creating more tools that provide more robust follow-on tracking for companies that have raised Reg CF and Reg A rounds. We will likely launch new fund products with unique themes and investment focuses. We will continue to innovate new solutions for the industry and founders based on customer feedback and the needs that arise for our customers as the market grows. Most importantly, our focus is on continuing to grow our data and enhance our data quality, as this allows us to scalably create new, data-driven solutions for any segment of the market. We also seek to make select complimentary acquisitions that expand the scope of or that are synergistic with our existing product offerings.

***Coverage Expansion***

We currently track 100% of Reg CF deals and rate all Reg CF deals using our proprietary rating technology, in addition to providing general research and data resources for customers and currently track and rate 100% of Reg A deals in the private company equity and debt space. We now have a rating algorithm developed for looking at early, growth and late-stage companies and we intend to expand coverage to all online private markets, including 100% of Reg A, Rule 506(c) and late-stage secondary markets and utilize the experience and basic structures of our database and Reg CF algorithms to develop new asset class ratings algorithms to rate investments.

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***Channel Expansion***

As we have built-out our product offerings to cover additional online private markets, we are starting to garner interest from financial institutions, financial publications and other financial professionals, such as wealth advisers and public markets data providers. We will seek to enter into partnerships and licensing arrangements that will allow these organizations and professionals to make our products available to their customers, which could expand our user base rapidly and significantly.

***Asset Expansion***

Once we complete product expansion to cover all online private market deals, we intend to expand into other asset classes that utilize online private markets, including real estate equity and debt, consumer debt, and other alternatives. We want to establish a reputation as the most trusted provider of ratings and analytics for the entirety of the online private markets across all asset classes.

***Expand into International Markets***

The United Kingdom and several Asian Pacific countries have vibrant online private market ecosystems. Once we have rolled out coverage of the U.S. online private markets, we expect to investigate whether expansion into the United Kingdom and other jurisdictions that have robust online private markets is practicable from an economic and business perspective and whether the allocation of resources to these markets represents a judicious use of resources. We have begun to form partnerships with local partners that can help us access and enter these new markets.

We expect to expand into other asset classes, such as business credit, real estate and alternative asset classes for which online private markets are burgeoning in the coming years. We believe that our efforts to expand coverage into these other markets will require us to engage teams of three or four staff members that have experience in the specific market or asset class we are targeting. Our existing tech team has the competency to expand the platform infrastructure to cover these new asset classes.

In order to achieve our growth strategy, we will require substantial proceeds from the Offering or from other sources to retain the necessary personnel to develop pipeline products, build sales channels and implement the other growth initiatives described above.

**Competition**

We believe that we are the first and currently the only company to offer research, analytics tools and rating services to retail investors that cover all Reg CF offerings. We are aware that other financial service companies offer online newsletters and similar publications, such as Alts.co, and Crowdfund Capital Advisors that offer general information about the Reg CF and Reg A markets, but we believe these offerings are directed at a different type of clientele than our products. With respect to other types of offerings made in the online private markets, such as Reg A and Rule 506(c) and early and late-stage offerings, we are aware that there are web-based products that provided private and public capital market data products geared to professional investors, such as private equity groups and investment banks, including Pitchbook, Crunchbase and CB Insights. We believe that some companies may offer rating tools for the public markets, such as Morningstar.

We differentiate ourselves from our competitors by focusing on the online private markets where there is currently no solution like ours, have developed a unique rating algorithm and set of research tools that are unique to the needs of online private market investors and have priced ourselves well below the pricing of traditional private equity data solutions.

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We believe that the key competitive factors in our market include:

· breadth of coverage of the online private markets.

· product features, quality, and functionality;

· the accuracy of the research and ratings provided.

· depth of data assets that will allow an organization to improve its ratings algorithms and machine learning capabilities;

· brand recognition; and

· pricing.

We believe that we can compete favorably on the basis of these factors. We believe that we are building a brand that our customers trust and that we are well-positioned to service new customers with our existing and future products. We will continue to build upon this foundation as a means to effectively compete in our industry.

We expect the market for investment tools for the online private markets will continue to evolve and grow, as greater numbers of companies utilize Reg CF, Reg A and Rule 506(c) and more retail investors become attracted to these types of investments. Large financial services organizations such as national brokerage firms and investment banks may seek to develop products internally that cover the online private markets to satisfy their customers demand for information. Existing ratings firms, such a Moody's and Standard and Poor's, may extend their coverage to include the online private markets. In addition, financial publishers, such as Morningstar and Dow Jones, may find that the online private markets represent an area for expansion and develop products aimed at these markets.

**Research and Development**

We invest substantial time, energy, and resources to ensure we have a deep understanding of our customers' needs, and we continually innovate to deliver value-added products and services through our platform. Our research and development organization consists of software engineering, product, and design teams. These teams are responsible for the design, development, and testing of our software and products. We focus our efforts on developing new functionality and further enhancing the usability, reliability, and performance of existing applications.

**Intellectual Property**

We rely on a combination of trade secrets, license agreements, confidentiality procedures, non-disclosure agreements, employee non-disclosure and invention assignment agreements, and other legal and contractual rights to establish and protect our proprietary rights. During the pendency of the Offering, we filed one patent to cover our proprietary ratings algorithms. We also expect to file for copyright and trademark protection of various other intellectual property assets, including our name and other brand indicia. We also have registered a domain name for our website.

We control access to and use of our proprietary technology and other confidential information through the use of internal and external controls, including contractual protections with employees, contractors and customers. It is our practice to enter into confidentiality and invention assignment agreements (or similar agreements) with our employees, consultants and contractors involved in the development of intellectual property on our behalf. We also enter into confidentiality agreements with other third parties in order to limit access to, and disclosure and use of, our confidential information and proprietary information. We further control the use of our proprietary technology and intellectual property through provisions in our terms of service. We intend to pursue additional intellectual property protection to the extent we believe it would be beneficial and cost effective.

**Employees**

As of June 30th, 2025, we had 14 full-time employees. In addition, we engage twenty consultants who provide critical services to us and who allocate varying portions of their business time to our endeavors.

None of our employees are represented by a labor union or covered by a collective bargaining agreement. We have not experienced any work stoppages and we consider our relations with our employees to be good.

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**Facilities**

We maintain our principal executive offices at 410 University Avenue, DPT #11021, Westwood, Massachusetts 02090. We also lease an office in Durham, North Carolina. The preponderance of our employees have the option to work remotely. As a result of this strategy, we maintain physical offices in major cities where our officers reside for purposes of collaboration and team building. We may lease office space in additional cities where we find a future concentration of employees.

We believe that our facilities are adequate to meet our needs for the immediate future, and that, should we need additional physical office space, suitable additional space will be available in the future.

**Legal Proceedings**

We are not presently a party to any litigation.

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

*You should read the following discussion and analysis of our financial condition and results of operations together with our audited consolidated financial statements and related notes included elsewhere in this Annual Report. This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" and in other parts of this Annual Report.*

**Overview**

Our mission is to democratize the private capital markets by providing institutional grade data-driven solutions to service investors, founders and industry participants with unique product offerings that meet their individual needs as it pertains to navigating the growing digital retail private markets.

We believe that we are the first and only comprehensive data-driven rating and analytics facility to service the online private market space. Our market is relatively new, arising out of the JOBS Act passed in 2012, and is growing dramatically as both companies take advantage of the relaxed rules with respect to general solicitation and the offerings to non-accredited investors and investors seek to harness the potential of investing in start-up and early-stage growth companies. As the first to market, we are amassing and analyzing data sets that we believe will provide us with significant advantages that will differentiate our Company from our future competitors for years to come. Some of these advantages include gaining familiarity with different classes of investors, which will allow us to develop the products that users most desire, and enhancing our proprietary ratings algorithms, which will allow us to provide more accurate ratings. We also believe that our first to market status will position us as the leader in the space for online private market tools and afford us the ability to establish and shape industry standards.

Currently, we cover all Reg CF and Reg A private company equity and debt deals available to the market through crowdfunding portals, and provide limited coverage of Rule 506(c) offerings that are live on online private market funding portals.

Our qualitative and quantitative ratings are not intended and we advise users not to construe them as investment recommendations. We are not a fund, an asset manager, or a financial advisor. Rather, we provide information to aid investors who are making their own investment decisions.

We have grown our consumer, institutional and founder divisions over time. In 2023, we generated $716,965 in revenue as a result of growth in our new lines of business including data sales, Kingscrowd Capital management fees, our founder toolkit sales and subsidiary's revenue derived from creating, filing and managing all of the customers' capital raising documents online. Our subscription business lagged as we moved on from old lines of less sticky subscription products and as the market struggled overall due to macroeconomic factors.

We generate revenue from our Edge subscriptions, sponsorship, Kingscrowd Capital management fees, technology fees to founders utilizing our founder form creation toolkits, data licensing fees and events. Subscription revenue and data licensing revenue are recognized ratably over the term of the subscription beginning on the date the product is made available to customers, which typically begins on the commencement date of each contract and from management fees and potential carry from the more than $2 million in funds sub-advised by KingsCrowd Capital, LLC. The former Lawbot business, now Raisepapers, and former CrowdCheck Inc. business, now Kingscrowd Advisory Inc. (DBA CrowdCheck() produces revenues on a per use basis from the creation of forms for Reg A, Reg CF, and Reg D filers. Crowd Diligence operations were wound down and expected to be relaunched as a free service in 2025. Crowdcheck revenues are produced on an hourly basis and/or per-use basis for building legal documents and securities filing documents.

**Offering Results**

As described above under the heading "Termination of Offering Pursuant to Regulation A," on April 28, 2023, we terminated the Regulation A Offering. Under the Regulation A Offering, we sold 5,127,062 Offering Shares under the Offering, which included 4,574,516 Company Offered Shares and 552,546 Selling Stockholder Shares. Of the Company Offered Shares, we sold 3,161,094 shares to investors in the Regulation A Offering at a price of $1.00 per share for total cash consideration of $3,161,094, and sold and issued 1,413,442 shares upon the conversion of the 2021 Convertible Notes for total non-cash consideration of $1,130,753 or $0.80 per share, and the Company has realized an aggregate of $4,291,847 of consideration for all Company Offered Shares sold. The Selling Stockholders received $552,546 from the sale of their Selling Stockholder Shares.

We used the cash proceeds that we received from the sale of the Company Offered Shares substantially as described under the heading "Use of Proceeds" set forth in the offering statement we filed with respect to the Regulation A Offering.

**Key Factors Affecting Our Performance**

***Acquiring new customers***

We are focused on continuing to organically grow our customer base. We believe that our first-to-market status provides us with a substantial opportunity to increase adoption of our solutions. We have experienced strong organic new customer growth due to the free tier subscription which can be augmented by upgrading to paid subscriptions. We intend to aggressively pursue new customers with increasing efficiency while expanding our sales capacity. Although many new customers immediately subscribe to a paid tier subscription, we intend to drive higher conversion rates of our free subscribers through various sales, marketing and product initiatives as one component of our customer acquisition strategy as described under "Item 1, *Business— Our Market Strategy*."

***Expanding within our current customer base***

We believe that there is a substantial and largely untapped opportunity for organic growth within our existing customer base. One of our marketing strategies is to offer a free entry level tier to our platform to generate interest in the paid subscription tiers. Many of our subscribers start by subscribing for our free tier service. Our customer efforts include educational email campaigns and free trial offerings to our paid tiers. We will continue to invest in enhancing awareness of our brand and developing more products, features and functionality of existing products, which we believe are vital to achieving increased adoption of our platform.

***Our ability to innovate and develop new products***

Our success is dependent on our ability to sustain product and technology innovation. We will invest resources to enhance the capabilities of our platform and introduce new products and features that are intended to be appealing to a wider audience of investors, including more sophisticated investors who we believe are more likely to subscribe to paid tiers.

***Our ability to expand coverage to all online private markets***

We currently track and rate 100% of Reg CF and Reg A private company equity and debt deals and track some Rule 506(c) deals. Our ability to expand coverage to all online private markets, including late-stage secondary markets and other asset classes such as real estate and private credit will be essential to make our products attractive to a wider audience of sophisticated investors who we believe are more likely to subscribe to paid tiers. We intend to begin expansion into new asset classes such as real estate, collectables and debt in the future.

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***The success of efforts to expand into new customer channels***

We will seek to enter into strategic partnership and license arrangements with financial institutions, financial publications and other financial professionals, such as wealth advisers and public markets data providers. We will seek to enter into partnerships and licensing arrangements that will allow these organizations and professionals to make our products available to their customers, which could expand our user base rapidly and significantly.

***Expanding the nature of the assets we cover***

Once we complete product expansion to cover all online private market deals, we intend to expand into other asset classes that utilize online private markets, including real estate equity and debt, consumer debt, and other alternatives. Expanding into other asset classes could significantly increase the size of our addressable market.

***Investing in Sales and Marketing***

We will continue to drive awareness and generate demand to acquire new customers and develop strategic partner relationships; however, we will adjust our sales and marketing spend level as needed in response to changes in the economic environment. We will continue to expand efforts to market our platform directly to individual investors through online digital marketing, referral programs, and other programs. We expect that we will allocate significant cash to the development of strategic partner relationships with financial services institutions and other financial industry professional.

***Investing in Our Platform***

We intend to increase our investment in our platform to accommodate continued growth in use by our subscribers and product expansion into other online private market transactions. We believe that investment in research and development will contribute to our long-term growth but may also negatively impact our short-term profitability. We will continue to leverage emerging technologies and invest in the development of more features that meet and anticipate individual and institutional subscriber needs.

As a result, we expect our expenses related to research and development to increase. These efforts will require us to invest significant financial and other resources.

***Acquisitions***

We analyze acquisition's performance on a case-by-case basis depending on the nature of the business and our intentions in making the acquisitions. Generally speaking, our acquisitions are strategic in broadening the scope of services we offer the crowdfunding and securities industries and produce new revenue sources and/or increase revenues from existing lines.

**Components of our Results of Operations**

***Revenue***

We generate revenue from subscriptions to our investment research and analysis services that we make available through our online platform. Our subscriptions can range from monthly to one-year or multi-year arrangements and are generally non-cancellable during the contractual subscription term. Subscription revenue is recognized ratably over the contract terms beginning on the date our product is made available to customers, which typically begins on the commencement date of each contract. Additionally, we generate revenue from sponsorship contracts, that typically run one month in length and are recognized during the period in which a sponsorship is run in our newsletter. We also generate revenue from data license contracts that are typically annual in nature or may be one-off downloads for specific pieces of data and are fully realized at sale. We also generate revenue from our 1/10 management fee, which is paid out on a quarterly basis based on AUM. Lastly, we generate sales from our form filing services, which are charged on a per use basis to each client and recognized when signed for as well as legal services charged through our intercompany agreement with CrowdCheck Law.

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Our subsidiary derives revenue from creating, filing and managing all of the customers' capital raising documents online. Revenue is recognized at a point in time when the customer selects, completes and submits a form on LawBot's online platform.

***Operating Expenses***

*General and Administrative* - General and administrative expenses primarily consist of personnel-related and consultant expenses, and other expenses necessary to maintain our daily operations and administer the business. We expect to increase the size of our general and administrative function to support the growth of our business. Following the completion of the Offering, we expect to incur additional general and administrative expenses as a result of operating as a public company. As a result, we expect the dollar amount of our general and administrative expenses to increase for the foreseeable future.

*Research and Development* – Research and development costs primarily consist of personnel-related and consultant expenses associated with our engineering personnel responsible for the design, development, and testing of our products and allocated overhead. We expect that our research and development expenses will continue to increase as we increase our research and development headcount to further strengthen and enhance our products and invest in the development of our software.

*Sales and Marketing* – Sales and marketing expenses primarily consist of personnel-related expenses and costs associated with marketing programs. Marketing programs include advertising, promotional events, and brand-building activities. Sales and marketing expenses also include personnel-related expenses and public cloud infrastructure costs associated with our free trials. We plan to increase our investment in sales and marketing over the foreseeable future, as we continue to hire additional personnel and invest in sales and marketing programs.

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**Results of Operations**

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|  | **December 31** | **December 31** |
|  | **2023** | **2022** |
| Net revenues | $608431 | $716965 |
| Operating Expenses: |  |  |
| General, administrative, and operations | 2263621 | 3517839 |
| Research and development | 586760 | 654248 |
| Sales and marketing – customer list amortization | 96067 | 41002 |
| Sales and marketing | - | 253319 |
| Total Operating Expenses | 2946448 | 4466408 |
| Loss from operations | (2338017) | (3749443) |
| Other Income/(Expense): |  |  |
| Interest expense | (153597) | (102642) |
| Others - net | 108754 | 86262 |
| Total Other Income/(Expense) | (44841) | (16380) |
| Provision for income taxes |  |  |
| Net loss | $(2382859) | $(3765823) |
| Net loss attributable to KingsCrowd, Inc. | $(2240199) | $(3633530) |
| Net loss attributable to non-controlling interests | $(142660) | $(112293) |

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**Comparison of the Years Ended December 31, 2023 and 2024**

**Revenue**

Total revenue decreased by $108,534, or 15%, to $608,431 for the year ended December 31, 2024 compared to total revenue of $716,965 during the year ended December 31, 2023. The decrease in revenue was attributable principally to the winding down of Early Investing ($41k in prior year), a slight decrease in subscription revenues, and $67k of prior year revenue that was written off in 2024.

**Operating Expenses**

***General, Administrative, and Operations***

General, administrative and operations expense decreased by $1,254,218, or approximately 36%, to $2,263,621 for the year ended December 31, 2024 compared to $3,517,839 for the year ended December 31, 2023. The decrease was primarily attributable to a decrease of $989,832 in stock compensation, a decrease of $231,785 in personnel-related and subcontractor expenses, a decrease of $95,008 in depreciation, and a decrease of $66,346 in professional and consulting fees offset by an increase of $514,126 in amortization and an increase of $14,278 in reimbursable expenses.

***Research and Development***

Research and development expense decreased by $67,488, or approximately 10 %, to $586,760 for the year ended December 31, 2024 compared to $654,248 for the year ended December 31, 2023. The decrease was attributable to a decrease of $422,274 in database development, a decrease of $105,967 in stock compensation, and a decrease of $80,830 in amortization of software development offset by an increase of $52,616 in personnel-related and subcontractor expenses, and an increase of $76,798 in software and technology.

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***Sales and Marketing***

Sales and marketing expense decreased by $157,252, or approximately 62%, to $96,067, for the year ended December 31, 2024 compared to $253,319 for the year ended December 31, 2023. The decrease in sales and marketing expense was attributable to a decrease of $152,777 in personnel-related expenses, a decrease of $23,929 in stock compensation offset by an increase of $10,545 in advertising and an increase of $8,948 in professional fees.

***Sales and marketing – customer list amortization***

Customer list amortization recognition resulting from customer list asset acquired from Early Investing, LLC decreased by $41,002, or approximately 100% to $0 for the year ended December 31, 2024 compared to $41,002 for the year ended December 31, 2023 as these assets were fully amortized.

**Liquidity and Capital Resources**

In the Regulation A Offering described elsewhere throughout this Annual Report, we had sold 5,127,062 Offering Shares under the Offering, which included 4,574,516 Company Offered Shares and 552,546 Selling Stockholder Shares. Of the Company Offered Shares, we sold 3,161,094 shares to investors in the Offering at a price of $1.00 per share for total cash consideration of $3,161,094, and sold and issued 1,413,442 shares upon the conversion of the 2021 Convertible Notes for total non-cash consideration of $1,130,753 or $0.80 per share, and the Company realized an aggregate of $4,291,847 of consideration for all Company Offered Shares sold. The Selling Stockholders received $552,546 from the sale of their Selling Stockholder Shares. We used the cash proceeds that we received from the sale of the Company Offered Shares substantially as described under the heading "*Use of Proceeds*" in the offering statement relating to the Regulation A Offering.

During the year ended December 31, 2024, we offered and sold 5,605,755 shares of our Class A Common Stock to accredited investors under Regulation CF and private placements at a price of $0.16 per share for gross offering proceeds of $920,618.

Since our inception, we have financed our operations primarily through sales of equity securities and cash generated from operations. Our principal uses of cash in recent periods have been funding our operations, repayment of loans, and business acquisition. As of December 31, 2023, our principal sources of liquidity were cash, which consists of cash in banks and bank deposits, loans, and the sale of equity securities.

We will continue to depend upon the receipt of proceeds from the sale of our securities to fund our operations and growth strategies until we generate revenue from operations sufficient to support our business and growth.

We believe our existing cash, together with cash provided by operations, will be sufficient to meet our needs for at least the next 12 months. Our future capital requirements will depend on many factors including our revenue growth rate, subscription renewal activity, billing frequency, the timing, and extent of spending to support further sales and marketing and research and development efforts, the continuing market acceptance of our products and services, the timing, and extent of additional capital expenditures to invest in existing and new office spaces. We may in the future enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. We may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, our business, results of operations, and financial condition would be materially and adversely affected.

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**Cash Flows:**

The following table presents summary cash flow information for the periods indicated.

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|  | **Year ended**<br> **December 31,** | **Year ended**<br> **December 31,** |
|  | **2024** | **2023** |
| Net cash used in operating activities | $(1184554) | $(1306910) |
| Net cash provided by (used in) investing activities |  |  |
| Net cash provided by financing activities | $904022 | $1151959 |

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***Operating Activities***

The net cash used in operating activities decreased by $122,356 or approximately 9%, to $1,184,554 for the year ended December 31, 2024 compared to $1,306,910 for the year ended December 31, 2023. The decrease was primarily attributable $96,998 in cash paid to fund operations offset by an increase of $50,630 in cash receipts from customers.

***Investing Activities***

There was no cash used in investing activities for the year ended December 31, 2024, same as 2023. There were no assets purchased in 2024.

***Financing Activities***

The net cash provided by financing activities decreased by $247,937, or approximately 22%, to $904,022 for the year ended December 31, 2024 compared to $1,151,959 for the year ended December 31, 2023. The decrease was attributable to a decrease of $163,098 in cash raised from Regulation CF offering and a decrease of $45,899 in proceeds from loans offset by an increase of $23,504 in repayments of loans and increase of $15,436 in offering costs.

**Off-Balance Sheet and Other Arrangements**

As of the date of this report, the Company does not have any off-balance sheet or similar arrangements.

**Emerging Growth Company**

We may elect to become a public reporting company under the Exchange Act. If we elect to do so, we will be required to publicly report on an ongoing basis as an emerging growth company, as defined in the JOBS Act, under the reporting rules set forth under the Exchange Act. For so long as we remain an emerging growth company, we may take advantage of certain exemptions from various reporting requirements that are applicable to other Exchange Act reporting companies that are not emerging growth companies, including, but not limited to:

· not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act;

· being permitted to comply with reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; and

· being exempt from the requirement to hold a non-binding advisory vote on executive compensation

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

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We would expect to take advantage of these reporting exemptions until we are no longer an emerging growth company. We would remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion; (ii) the date that we become a large accelerated filer as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter; or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period.

**Going Concern**

Our financial statements appearing elsewhere in this Annual Report 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. As of December 31, 2024, we had not yet generated profits nor significant revenues and have sustained net losses of $2,240,199 and $3,653,530 during the years ended December 31, 2024 and 2023, respectively. Our ability to continue as a going concern in the next twelve months is dependent upon our ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such proceeds to produce profitable operating results. Our financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should we be unable to continue as a going concern. See "*Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources – Going Concern*."

**Accounting Principles**

See Note 2, "Summary of Significant Accounting Policies," to our consolidated financial statements included elsewhere in this Annual Report for a discussion of accounting principles policies applied to our financial statements.

See Note 8, "Recent Accounting Pronouncements," to our consolidated financial statements included elsewhere in this Annual Report for a discussion of recent accounting principles applied to our financial statements.

**Item 3. Directors and Officers**

The following table sets forth information regarding our executive officers and directors as of the date of this Annual Report:

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Christopher Lustrino | 32 | President, Chief Executive Officer, Chief Financial Officer, Treasurer and Director |
| Daniel Waterman | 37 | Director |
| Cecilia Lenk | 70 | Director |

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**Background Information about our Officers and Directors**

***Executive Officers***

Christopher Lustrino is a founder of the Company and served as a manager and the chief executive officer of our Company prior to the Corporate Conversion and as our Chief Executive Officer, President, Chief Financial Officer, Treasurer and a director since the Corporate Conversion. From 2014 to 2017, he served as a consultant at LEK Consulting, where he focused on private equity due diligence. During 2016 to 2018, Chris was responsible for finance operations at Freebird, a travel tech startup. In 2016, Chris founded Simple.Innovative.Change, a Fintech publication focused on alternative investments and lending, and was a finalist for the 2018 LendIt Fintech Journalist of the Year.

Cecilia Lenk has served as a director of our Company since 2018. Since 2017, she has served as the chief executive officer of NCI, a financial services firm where she oversees the general operation of the business. From 2012 through 2016, Cecilia was a creative strategist at FableVision, an education and media company. She also currently is a member of the LaunchPad Venture Group, an angel investor organization that invests in startup companies.

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Daniel Waterman has served as a director of our Company since our inception. For the last five years, Mr. Waterman has served as the manager of Nantascot LLC, a private investment and real estate company. Mr. Waterman has been realtor at Coldwell Banker since 2015.

**Advisory Board**

We have an Advisory Board that provides advice relating to the following:

· business strategy;

· business development; and

· capital raising.

Each of the members of our Advisory Board acts as an independent consultant and receives stock-based compensation for his or her services pursuant to the terms of consulting agreements between us and each advisor. Restricted stock granted to each advisor vests on a monthly basis.

**Involvement in certain legal proceedings.**

No executive officer, member of the board of directors or control person of our Company has been involved in any legal proceeding listed in Item 401(f) of Regulation S-K in the past 10 years.

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**Term of Office**

All our directors will hold office until their successors have been elected and qualified or appointed or the earlier of their death, resignation or removal. Executive officers are appointed and serve at the discretion of the board of directors.

**Family Relationships**

There are no family relationships among our directors or officers.

**Board Composition**

Our business and affairs are managed under the direction of our board of directors, which we refer to as the Board. We currently have three directors. Cecilia Lenk and Daniel Waterman were elected under the provisions of a Stockholders Agreement entered into by Nantascot and NCI. Under the terms of this Stockholders Agreement, the stockholders who are party to the Stockholders Agreement have agreed to vote for a Board comprised of three persons and to vote their respective shares to elect one director designated by Nantascot, currently Mr. Waterman; and one director designated by NCI, currently Ms. Lenk. The Stockholders Agreement will terminate on the completion of a public offering from which we receive gross proceeds of $10 million.

We do not have a policy regarding the consideration of any director candidates that may be recommended by our stockholders, including the minimum qualifications for director candidates, nor have our officers and directors established a process for identifying and evaluating director nominees. We have not adopted a policy regarding the handling of any potential recommendation of director candidates by our stockholders, including the procedures to be followed. Our officers and directors have not considered or adopted any of these policies as we have never received a recommendation from any stockholder for any candidate to serve on our board of directors.

**Director Independence**

Our securities are not listed on a national securities exchange or on any inter-dealer quotation system, which has a requirement that a majority of directors be independent. We evaluate independence by the standards for director independence set forth in the NASDAQ Marketplace Rules and the rules and regulations of the SEC. Under such rules, our Board has determined that none of the members of our Board are independent directors. In making such independence determination, our Board considered the relationships that each non-employee director has with us and all other facts and circumstances that our board of directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director. In considering the independence of the directors, our Board considered the association of our directors with the holders of more than 5% of our common stock.

**Committees**

Our bylaws provide that our Board has the authority to appoint committees to perform certain management and administration functions; however, at this time, we are not required to and do not have any committees of the Board. The functions of an audit committee, a compensation committee or a nominating committee are being undertaken by our Board. Because we do not have any independent directors, our Board believes that the establishment of committees of our Board would not provide any benefits to our Company.

**Board Leadership Structure**

We believe that effective board leadership structure can depend on the experience, skills, and personal interaction between persons in leadership roles and the needs of our Company at any point in time. We have not adopted a formal policy on whether the chairman and chief executive officer positions should be separate or combined so as to support flexibility in the structure the Board by not requiring the separation of these roles.

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Our Board currently believes that it is in the best interests of our Company to have our chief executive officer also serve as the chairman of the board. We believe that our chairman and chief executive officer provides strong, clear, and unified leadership that is critical in our relationships with our stockholders, employees, consultants, customers, suppliers, and other stakeholders. The extensive knowledge of the chief executive officer regarding our operations and industries and the markets in which we compete uniquely positions him to identify strategies and prioritize matters for board review and deliberation. Additionally, we believe the combined role of chairman and chief executive officer facilitates centralized board leadership in one person, so there is no ambiguity about accountability. The chief executive officer serves as a bridge between management and the Board, ensuring that both groups act with a common purpose. This structure also eliminates conflict between two leaders and minimizes the possibility of two spokespersons sending difference messages.

Our Board does not believe that combining the position creates significant risks, including any risk that the chairman and chief executive officer will have excessive or undue influence over the agenda or deliberations of the Board.

The chairman of the board provides guidance to the Board; facilitates an appropriate schedule for board meetings; sets the agenda for board meetings; presides over meetings of the Board; and facilitates the quality, quantity, and timeliness of the flow of information from management that is necessary for the board to effectively and responsibly perform its duties.

The chief executive officer is responsible for the day-to-day leadership of our company and setting our company's strategic direction.

**Board Role in Risk Oversight**

Risk is inherent in every business, and how well a business manages risk can ultimately determine its success. We face a number of risks, including strategic risks, enterprise risks, financial risks, and regulatory risks. While our management is responsible for day-to-day management of various risks we face, the Board, as a whole, is responsible for evaluating our exposure to risk and to satisfy itself that the risk management processes designed and implemented by management are adequate and functioning as designed. We expect our Board to review and discuss policies with respect to risk assessment and risk management. The Board also has oversight responsibility with respect to the integrity of our financial reporting process and systems of internal control regarding finance and accounting, as well as its financial statements.

**Limitation of Liability and Indemnification**

Our certificate of incorporation provides that to the fullest extent permitted by the Delaware General Corporation Law, a director shall not be personally liable to us or our stockholders for monetary damages for breach of fiduciary duty as a director. Our bylaws provide that we shall indemnify and hold harmless our directors and officers, to the fullest extent permitted by applicable law, except that we will not be required to indemnify or hold harmless any director or officer in connection with any proceeding initiated by such person unless the proceeding was authorized by our board of directors. Under our bylaws, such rights shall not be exclusive of any other rights acquired by directors and officers, including by agreement.

Our bylaws provide that we will pay expenses to any director or officer prior to the final disposition of the proceeding, provided, however, that such advancements shall be made only upon receipt of an undertaking by such director or officer to repay all amounts advanced if it should be ultimately determined that such director or officer is not entitled to indemnification under the bylaws of or otherwise.

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

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The above provisions may discourage stockholders from bringing a lawsuit against our directors and officers for breach of their fiduciary duty. The provisions may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. Furthermore, a stockholder's investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. We believe that these provisions are necessary to attract and retain talented and experienced directors and officers.

At present, there is no pending litigation or proceeding involving any of our directors or officers where indemnification will be required or permitted. We are not aware of any threatened litigation or proceedings that might result in a claim for such indemnification.

**Compensation of Directors and Executive Officers**

The following table sets forth the annual compensation of each of the three highest paid persons who were executive officers or directors during years ended December 31, 2022 and 2023.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Stock**<br> **Awards ($)<sup>(1)</sup>** | **All Other**<br> **Compensation**<br> **($)<sup>(2)</sup>** | **Total**<br> **Salary ($)** |
| Christopher Lustrino | 2024 | 142000 | 0 | 5255 | 147255 |
| President, Chief Executive Officer and Chief Financial Officer | 2023 | 135077 | 0 | 4428 | 139505 |
| Brian Belley | 2024 | 125000 | 66096 | 273 | 191369 |
| Vice President Product | 2023 | 129807 | 24000 | 0 | 153807 |

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(1) The amounts reported represent the aggregate grant date fair value of the options awarded to the named executive officers during identified fiscal year, calculated in accordance with FASB ASC Topic 718. Such grant date fair value does not take into account any estimated forfeitures. The amounts reported in this column reflect the accounting cost for these awards and does not correspond to the actual economic value that may be received by the officer upon the sale of any of the underlying shares of Class A common stock.

(2) The amount indicated represents cash paid to the named executive officer for the reimbursement of medical insurance premiums in accordance with the terms of his agreement with the Company.

**Director Compensation** 

We do not compensate our directors for serving in such capacity. We have agreed to reimburse our directors for all costs reasonably incurred in connection with attending meetings of the Board.

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The following table sets forth certain information about equity awards granted which consisted of restricted shares of Class A common stock to our named executive officers that remain outstanding as of December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Stock Awards – Employees and Consultants** | **Stock Awards – Employees and Consultants** | **Stock Awards – Employees and Consultants** | **Stock Awards – Employees and Consultants** |
| <br>**Name**  | **Grant Date** | **Total Granted**<br> **#** | **Number of** <br> **Shares of Stock That Have**<br> **Not Vested**<br> **(#)** | **Market Value of Shares of Stock That Have Not Vested**<br> **($)** |
| Christopher Lustrino | 2018 | 7631491 | 00 | 00 |
| Brian Belley | 2021 | 1450000 | 263100 | 47358 |

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**Compensation Plans**

***2020 Incentive Plan***

In December 2020, upon the consummation of the Corporate Conversion, our board of directors and stockholders adopted the 2020 Incentive Stock Plan (the "Plan"). In December 2024, our board of directors increased the number of shares available for award under the Plan to 13,000,000 shares, which increase was approved by the holders of a majority of the voting power of the outstanding shares of common stock. As provided in the Plan of Conversion, all outstanding unvested units granted to employees, consultants and advisors in the pre-conversion limited liability company were converted into unvested shares of Class A common stock subject to the terms of the Plan.

An aggregate of 13,000,000 shares of our common stock is reserved for issuance and available for awards under the Plan. The Plan administrator may grant awards to any employee, director, consultant or other person providing services to us or our affiliates.

Upon the effective date of the Corporate Conversion, all unvested awards of restricted units in KingsCrowd LLC outstanding as of such date were converted into awards of unvested restricted shares of Class A common stock in KingsCrowd, Inc. under the Plan on terms and conditions similar in all material respects to the terms and conditions upon which the restricted units originally had been granted. As of June 30, 2025, awards for an aggregate of 6,780,477 unvested restricted shares of Class A common stock are outstanding under the Plan.

Since the date of the Corporate Conversion and the conversion of the awards to receive restricted units in KingsCrowd LLC into awards to unvested restricted shares of Class A common stock in KingsCrowd, Inc., we have not granted awards of any other securities under the Plan. As of June 30, 2025, awards covering 165,464 shares of Class A common stock remain available for grant under the Plan.

The Plan initially will be administered by the Board. The Plan administrator has the authority to determine, within the limits of the express provisions of the Plan, the individuals to whom awards will be granted, the nature, amount and terms of such awards and the objectives and conditions for earning such awards. The Board may at any time amend or terminate the Plan, provided that no such action may be taken that adversely affects any rights or obligations with respect to any awards previously made under the Plan without the consent of the recipient. No awards may be made under the Plan after the tenth anniversary of its effective date.

Awards under the Plan may include incentive stock options, nonqualified stock options, stock appreciation rights ("SARs"), restricted shares of common stock, restricted stock units, performance share or unit awards, stock bonuses and other stock-based awards and cash-based incentive awards.

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Stock Options. The Plan administrator may grant to a participant options to purchase our common stock that qualify as incentive stock options for purposes of Section 422 of the Internal Revenue Code ("incentive stock options"), options that do not qualify as incentive stock options ("non-qualified stock options") or a combination thereof. The terms and conditions of stock option grants, including the quantity, price, vesting periods, and other conditions on exercise will be determined by the Plan administrator. The exercise price for stock options will be determined by the Plan administrator in its discretion, but non-qualified stock options and incentive stock options may not be less than 100% of the fair market value of one share of our company's common stock on the date when the stock option is granted. Additionally, in the case of incentive stock options granted to a holder of more than 10% of the total combined voting power of all classes of our stock on the date of grant, the exercise price may not be less than 110% of the fair market value of one share of common stock on the date the stock option is granted. Stock options must be exercised within a period fixed by the Plan administrator that may not exceed ten years from the date of grant, except that in the case of incentive stock options granted to a holder of more than 10% of the total combined voting power of all classes of our stock on the date of grant, the exercise period may not exceed five years. At the Plan administrator's discretion, payment for shares of common stock on the exercise of stock options may be made in cash, shares of our common stock held by the participant or in any other form of consideration acceptable to the Plan administrator (including one or more forms of "cashless" or "net" exercise).

Stock Appreciation Rights. The Plan administrator may grant to a participant an award of SARs, which entitles the participant to receive, upon its exercise, a payment equal to (i) the excess of the fair market value of a share of common stock on the exercise date over the SAR exercise price, times (ii) the number of shares of common stock with respect to which the SAR is exercised. The exercise price for a SAR will be determined by the Plan administrator in its discretion; provided, however, that in no event shall the exercise price be less than the fair market value of our common stock on the date of grant.

Restricted Shares and Restricted Units. The Plan administrator may award shares of common stock to a participant subject to specified restrictions ("restricted shares"). Restricted shares are subject to forfeiture if the participant does not meet certain conditions such as continued employment over a specified forfeiture period and/or the attainment of specified performance targets over the forfeiture period. The Plan administrator also may award to a participant Units representing the right to receive shares of common stock in the future subject to the achievement of one or more goals relating to the completion of service by the participant and/or the achievement of performance or other objectives ("restricted units"). The terms and conditions of restricted share and restricted unit awards are determined by the Plan administrator.

Stock Bonuses. Stock bonuses may be granted as additional compensation for service or performance, and may be settled in the form of common stock, cash or a combination thereof, and may be subject to restrictions, which may vest subject to continued service and/or the achievement of performance conditions.

Performance Awards. The Plan administrator may grant performance awards to participants under such terms and conditions as the Plan administrator deems appropriate. A performance award entitles a participant to receive a payment from us, the amount of which is based upon the attainment of predetermined performance targets over a specified award period. Performance awards may be paid in cash, shares of common stock or a combination thereof, as determined by the Plan administrator.

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Other Stock-Based Awards. The Plan administrator may grant equity-based or equity-related awards, referred to as "other stock-based awards," other than options, SARs, restricted shares, restricted Units, or performance awards. The terms and conditions of each other stock-based award will be determined by the Plan administrator. Payment under any other stock-based awards will be made in common stock or cash, as determined by the Plan administrator.

Cash-Based Awards. The Plan administrator may grant cash-based incentive compensation awards, which would include performance-based annual cash incentive compensation to be paid to covered employees subject to Section 162(m) of the Code. The terms and conditions of each cash-based award will be determined by the Plan administrator.

Except as set forth above, we do not have any ongoing plan or arrangement for the compensation of directors and executive officers.

**Item 4. Security Ownership of Management and Certain Securityholders**

Under our certificate of incorporation, we are authorized to issue two classes of common stock, Class A common stock and Class B common stock. The Class A common stock and Class B common stock are identical in all respects, except that each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share and is convertible into one share of Class A common stock at any time at the option of the holder or automatically if we complete an underwritten public offering of our securities on Form S-1 from which we receive gross proceeds of $10 million. All outstanding shares of Class B common stock are held by entities of which two of our non-employee are directors. The two classes of common stock generally vote together as a single class on all matters submitted to a vote of our stockholders, except as otherwise required by law and our certificate of incorporation. The two classes of common stock participate ratably, meaning that each share of common stock is treated equally, with respect to dividends and distributions declared by the board of directors and in any distribution of our assets available for distribution to our stockholders upon any liquidation or winding up of our Company. Each outstanding share of Class B common stock is convertible at any time at the option of the holder into one share of Class A common stock, and will convert automatically into one share of Class A common stock on certain other events.

As of the date of this Annual Report, the holders of our outstanding Class A common stock control approximately 41.79% of the voting interest in the Company and the holders of the Class B common stock control approximately 58.21% of the voting interest in the Company and will have the ability to control the outcome of matters submitted to our stockholders for approval, including the election of our directors and the approval of any change in control transaction. This concentration of ownership will limit the ability of other stockholders to influence corporate matters and may cause us to make strategic decisions that could involve risks to you or that may not be aligned with your interests.

The following table sets forth certain information regarding beneficial ownership of our Class A common stock and Class B common stock as of June 30th, 2025, by:

(i) each person known by us to be the beneficial owner of more than 5% of our outstanding common stock;

(ii) each director and each of our executive officers;

(iii) all executive officers and directors as a group; and

(iv) each stockholder known by us to be the beneficial owner of more than 5% of our outstanding shares of Class A common stock or Class B common stock.

The number of shares beneficially owned by each stockholder as described in this Annual Report is determined under rules issued by the SEC. Under these rules, beneficial ownership includes any shares as to which the individual or entity has sole or shared voting power or investment power. In computing the number of shares beneficially owned by an individual or entity and the percentage ownership of that person, shares of common stock subject to vesting held by such person that will vest within 60 days of the date of this Annual Report, are considered outstanding, although these shares are not considered outstanding for purposes of computing the percentage ownership of any other person.

We have based our calculation of the percentage of beneficial ownership prior to the Offering computed on the basis of 74,904,085 shares of Class A Common Stock outstanding and 12,427,839 shares of our Class B common stock outstanding as of June 30, 2025.

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Unless otherwise indicated, the number of shares of common stock outstanding as of November 30, 2023 does not include shares of restricted that have been awarded under the 2020 Incentive Plan but that have not vested as of <u>November 30, 2023</u> and will not have vested by June 30, 2024 (60 days from the date of this Annual Report).

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Number of Shares**<br> **Beneficially**<br> **Owned** | **Number of Shares**<br> **Beneficially**<br> **Owned** | **Percentage** <br> **of Shares**<br> **Beneficially** <br> **Owned** | **Percentage** <br> **of Shares**<br> **Beneficially** <br> **Owned** | |
| <br>**Name of**<br> **Beneficial Owner** | **Class A**<br> **Common Stock** | **Class B**<br> **Common Stock** | **Class A**<br> **Common Stock** | **Class B**<br> **Common Stock** | **Percentage**<br>**of Total Voting**<br> **Power** |
| ***Executive Officers and Directors:*** |  |  |  |  |  |
| Christopher Lustrino <sup>(1)</sup> | 7340179 | 0 | 9.8% | 0 | 3.7% |
| Daniel Waterman <sup>(2)</sup> | 0 | 0 | 0 | 0 |  |
| Cecilia Lenk <sup>(3)</sup> | 0 | 0 | 0 | 0 |  |
| All directors and executive officers<br> (3 persons) | 7340179 | 0 | 9.8% | 0 | 3.7% |
| ***5% or Greater Stockholders*** | 7340179 | 11594550 | 9.8% | 93.3% | 58.2% |
| Nantascot <sup>(4)(6)</sup> | 0 | 8384865 | 0 | 67.4% | 42.1% |
| NCI <sup>(5)(6)</sup> | 0 | 3209685 | 0 | 25.8% | 16.1% |

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(1) Includes 7,340,179 shares of Class A common stock and 0 restricted shares of Class A common stock that vest within 60 days of the date of December 15, 2024.

(2) Daniel Waterman, one of our directors, is the managing member of Nantascot. Does not include 8,384,865 shares of Class B common stock owned by Nantascot, LLC.

(3) Cecilia Lenk, one of our directors, is the managing member of NCI. Does not include 3,209,685 shares of Class B common stock beneficially owned by NCI.

(4) Mr. Waterman is the managing member of Nantascot LLC. The address for this entity is State Street Financial Center, 1 Lincoln Street, Boston MA 02111.

(5) Ms. Lenk is the managing member of NCI. The address for this entity is State Street Financial Center, 1 Lincoln Street, Boston MA 02111.

(6) Nantascot and NCI are parties to a Stockholders Agreement under which they each agreed to vote in favor of the other party's board nominee. This Stockholders Agreement will continue in force until the Company completes a public offering of its securities from which it raises at least $10 million in gross proceeds or until the parties own less than 50% of the outstanding voting power of the Company.

**Item 5. Interest of Management and Others in Certain Transactions**

None.

**Item 6. Other Information**

None

**Item 7. Financial Statements**

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**KingsCrowd, Inc. and subsidiaries**

**A Delaware Corporation**

Consolidated Financial Statements and Independent Auditor's Report

December 31, 2024 and 2023

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**KingsCrowd, Inc.** 

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| **TABLE OF CONTENTS**  |  |
|  | **Page** |
| [INDEPENDENT AUDITOR'S REPORT](#REPORT) | F-3 |
| CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2024 AND 2023 AND FOR THE YEARS THEN ENDED: |  |
| &nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Balance Sheets](#bs) | F-4 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Operations](#soo) | F-6 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Changes in Stockholders' Equity/(Deficit)](#eqt) | F-7 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Consolidated Statements of Cash Flows](#cf) | F-8 |
| &nbsp;&nbsp;&nbsp;&nbsp; [Notes to the Consolidated Financial Statements](#NOTE) | F-9 |

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![](kings_1kimg20.jpg)

**INDEPENDENT AUDITOR'S REPORT**

To: Board of Directors, KingsCrowd, Inc. and subsidiary

We have audited the accompanying consolidated financial statements of KINGSCROWD, INC. and subsidiary (the "Company"), which comprise the consolidated balance sheet as of December 31, 2024 and 2023, and the related statements of operations, changes in shareholders' equity, and cash flows for the calendar years thus ended, and the related notes to such consolidated financial statements.

**Management's Responsibility for the Financial Statements**

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

**Auditor's Responsibility**

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of the Company's financial statements in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

**Opinion**

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations, shareholders' deficit and its cash flows for the calendar years 2024 and 2023 calendar year in accordance with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in the Notes to the financial statements, the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in the Notes to the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to this matter.

Sincerely,

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| ![](kings_1kimg22.jpg) | IndigoSpireCPA, PC |

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IndigoSpireCPA, PC

San José, California

May 21, 2025

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**KINGSCROWD, INC.**<br> **CONSOLIDATED BALANCE SHEETS (UNAUDITED)**<br> **As of December 31, 2024 and 2023**<br>

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|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **ASSETS** |  |  |
| Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | $146477 | $427009 |
| &nbsp;&nbsp;&nbsp;&nbsp; Subscription receivable | 20000 | 13750 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | 11820 | 78329 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 1324 | 1324 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses | 8299 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current Assets | 187920 | 520412 |
| Non-Current Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investment in SAFE | 50000 | 50000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 138 | 1671 |
| &nbsp;&nbsp;&nbsp;&nbsp; Intangible assets, net | 2244568 | 2761432 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goodwill | 649973 | 649973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Non-Current Assets | 2944679 | 3463076 |
| TOTAL ASSETS | $3132599 | $3983488 |

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See Independent Auditor's Report and accompanying notes, which are an integral part of these consolidated financial statements.

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| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2024** | **2023** |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | $388219 | $329366 |
| &nbsp;&nbsp;&nbsp;&nbsp; Deferred revenue | 209726 | 238456 |
| &nbsp;&nbsp;&nbsp;&nbsp; Due to members | 284843 | 284843 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans payable, current portion | 92686 | 223707 |
| &nbsp;&nbsp;&nbsp;&nbsp; Acquisition payable | 369020 | 369020 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other current liabilities | 178575 | 169750 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Current Liabilities | 1523069 | 1615142 |
| Non-current Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Loans payable, net of current portion | 136111 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other non-current liabilities | 6389 | 6389 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Non-current Liabilities | 142500 | 6389 |
| Total Liabilities | 1665569 | 1621531 |
| Stockholders' Equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Class A common stock, $0.0001 par value, 150,000,000 shares authorized, 61,220,220 and 54,096,689 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 6124 | 5410 |
| &nbsp;&nbsp;&nbsp;&nbsp; Class B common stock, $0.0001 par value, 15,000,000 shares authorized, 12,427,839 and 12,427,839 shares issued and outstanding as of December 31, 2024 and 2023, respectively | 1242 | 1242 |
| &nbsp;&nbsp;&nbsp;&nbsp; Additional paid-in capital | 18516537 | 17029318 |
| &nbsp;&nbsp;&nbsp;&nbsp; Accumulated deficit | (17097055) | (14856856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total stockholders' equity attributable to KingsCrowd, Inc. | 1426848 | 2179114 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interests | 40183 | 182843 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Stockholders' Equity | 1467030 | 2361957 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3132599 | $3983488 |

---

See Independent Auditor's Report and accompanying notes, which are an integral part of these consolidated financial statements.

---

| |
|:---|
| F-5 |
| *[**Table of Contents**](#fs)* |

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**KINGSCROWD, INC.**<br> **CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)**<br> **For the periods ended December 31, 2024 and 2023**<br>

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2023** |
| Net revenues | $608431 | $716965 |
| Operating Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; General, administrative, and operations | 2263621 | 3517839 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development | 586760 | 654248 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing | 96067 | 253319 |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing – customer list amortization | - | 41002 |
| Total Operating Expenses | 2946448 | 4466408 |
| Loss from operations | (2338017) | (3749443) |
| Other Income/(Expense): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense | (153597) | (102642) |
| &nbsp;&nbsp;&nbsp;&nbsp; Others - net | 108754 | 86262 |
| Total Other Income/(Expense) | (44841) | (16380) |
| Provision for income taxes | - | - |
| Net loss | $(2382859) | $(3765823) |
| Net loss attributable to KingsCrowd, Inc. | (2240199) | (3653530) |
| Net loss attributable to non-controlling interests | (142660) | (112293) |
|  | (2382859) | (3765823) |
| Weighted average common shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Basic and Diluted | 67134516 | 63332100 |
| Net loss per common share attributable to KingsCrowd, Inc. stockholders |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; - Basic and Diluted | $(0.04) | $(0.06) |

---

See Independent Auditor's Report and accompanying notes, which are an integral part of these consolidated financial statements.

---

| |
|:---|
| F-6 |
| *[**Table of Contents**](#fs)* |

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**KINGSCROWD, INC.**<br> **CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)**<br> **For the periods ended December 31, 2024 and 2023**<br>

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A Common Stock** | **Class A Common Stock** | <br> **Class B Common Stock** | <br> **Class B Common Stock** | | | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-in** <br>**Capital** | **Accumulated**<br> **Deficit** | <br>**Total** | **Non-controlling** <br>**Interests** | **Total Stockholders'** <br>**Equity** |
| Balance at December 31, 2023 | 54096689 | $5410 | 12427839 | $1242 | $17029318 | $(14856856) | $2179114 | $182843 | $2361957 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - Reg D | 3676249 | 368 |  |  | 611529 |  | 611897 |  | 611897 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - Reg CF | 1929506 | 193 |  |  | 308528 |  | 308721 |  | 308721 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - advisors | 688478 | 69 |  |  | 150704 |  | 150773 |  | 150773 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - consultants | 300048 | 31 |  |  | 300017 |  | 300048 |  | 300048 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - employees | 529250 | 53 |  |  | 131877 |  | 131929 |  | 131929 |
| &nbsp;&nbsp;&nbsp;&nbsp; Offering costs |  |  |  |  | (15436) |  | (15436) |  | (15436) |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss | - | - | - | - | - | (2240199) | (2240199) | (142660) | (2382859) |
| Balance at December 31, 2024 | 61220220 | $6124 | 12427839 | $1242 | $18516537 | $(17097055) | $1426848 | $40183 | $1467030 |
| Balance at December 31, 2022 | 44631838 | $4465 | 12427839 | $1242 | $14333244 | $(11203326) | $3135625 | $- | $3135625 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - Reg D | 6139063 | 614 |  |  | 1065602 |  | 1066216 |  | 1066216 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - advisors | 1813900 | 181 |  |  | 569803 |  | 569984 |  | 569984 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - consultants | 885464 | 88 |  |  | 753506 |  | 753594 |  | 753594 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - employees | 506424 | 50 |  |  | 187175 |  | 187225 |  | 187225 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of common stock - contractor | 120000 | 12 |  |  | 119988 |  | 120000 |  | 120000 |
| &nbsp;&nbsp;&nbsp;&nbsp; Non-controlling interest portion of investment in subsidiary |  |  |  |  |  |  |  | 295136 | 295136 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net loss | - | - | - | - | - | (3653530) | (3653530) | (112293) | (3765823) |
| Balance at December 31, 2023 | 54096689 | $5410 | 12427839 | $1242 | $17029318 | $(14856856) | $2179114 | $182843 | $2361957 |

---

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|:---|
| F-7 |
| *[**Table of Contents**](#fs)* |

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**KINGSCROWD, INC.**<br> **CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**<br> **For the periods ended December 31, 2024 and 2023**<br>

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2023** |
| **Cash flows from operating activities** |  |  |
| Net loss | $(2382859) | $(3765823) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Bad debt expense | 67377 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Security deposits forfeiture |  | 7329 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 518397 | 593169 |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation | 582750 | 1702478 |
| &nbsp;&nbsp;&nbsp;&nbsp; Loan fees capitalized, net of amortization |  | 16923 |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized interest expense |  | 27668 |
| &nbsp;&nbsp;&nbsp;&nbsp; Net cash acquired with the subsidiary |  | 27564 |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in accounts receivable | (868) | (51498) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in prepaid expenses | (8299) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Increase)/Decrease in deposit |  | 4275 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(Decrease) in accounts payable | 58853 | 155851 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(Decrease) in deferred revenue | (28730) | (21740) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase/(Decrease) in other current liabilities | 8825 | (3105) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in operating activities | (1184554) | (1306910) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from loans | 313060 | 358959 |
| &nbsp;&nbsp;&nbsp;&nbsp; Repayments of loans | (307970) | (284466) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from issuance of Class A common stock | 914368 | 1077466 |
| &nbsp;&nbsp;&nbsp;&nbsp; Offering costs | (15436) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 904022 | 1151959 |
| Net change in cash | (280532) | (154951) |
| Cash at beginning of the period | 427009 | 581960 |
| Cash at end of the period | $146477 | $427009 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for interest expense | $126843 | $40781 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash paid for income tax | $- | $- |

---

See Independent Auditor's Report and accompanying notes, which are an integral part of these consolidated financial statements.

---

| |
|:---|
| F-8 |
| *[**Table of Contents**](#fs)* |

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**KINGSCROWD, INC.**<br> **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** <br> **As of December 31, 2024 and 2023 and for the years then ended** <br>

**NOTE 1: NATURE OF OPERATIONS**

KingsCrowd, Inc. (the "Company") is a corporation organized on December 14, 2017 under the laws of Delaware, and headquartered in Boston, Massachusetts. The Company was originally incorporated under the name Kings Crowd, LLC as a Delaware limited liability company. On December 28, 2020, the Company converted from a Delaware limited liability company to a Delaware corporation and changed its name from Kings Crowd, LLC to KingsCrowd, Inc.

The Company seeks to bring together ﬁnancial experts and technologists to help investors make more informed startup investment decisions on crowdfunding portals by providing the infrastructure for startup business investment decision making based on four key components:

· Education - Providing expert editorial content in addition to "how-to" guides and tools.

· Analytics - Offering standardized deal ratings and synthesized data analytics.

· Research - Combining in-house market research with crowd-sourced research.

· Recommendations - Providing "Top Deal" picks and access to expert network due diligence.

On November 8, 2021, KingsCrowd Capital, LLC was incorporated as a limited liability company under the laws of the State of Delaware and KingsCrowd, Inc. is the sole member.

On January 23, 2023, the Company purchased 17,000 Class A units of LawBot, LLC ("LawBot"), or 50.3% interest. As such, LawBot became a subsidiary of the Company. The Company has the option to subscribe for and purchase the remaining membership interests of LawBot or 16,788 Class A and Class B Units for a consideration of 3.5 times LawBot's adjusted revenue for the year ended December 31, 2025. LawBot, LLC was founded to make EDGAR filing simple and easy and to provide high-quality SEC form drafts for crowdfunding platforms, their issuers, law firms, and their clients.

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

<u>Basis of Presentation</u>

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). The consolidated financial statements include all accounts of KingsCrowd, Inc., KingsCrowd Capital, LLC and LawBot, LLC. All significant intercompany transactions have been eliminated in consolidation.

The Company adopted the calendar year as its basis of reporting.

<u>Use of Estimates</u>

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures 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. Actual results could differ from those estimates.

See Independent Auditor's Report

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| |
|:---|
| F-9 |
| *[**Table of Contents**](#fs)* |

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<u>Significant Risks and Uncertainties</u>

The Company has not yet produced profits and is subject to customary risks and uncertainties including, but not limited to, the need for protection of proprietary technology, dependence on key personnel, costs of services provided by third parties, the need to obtain additional financing, and limited operating history.

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

Financial Accounting Standards Board ("FASB") guidance specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect market assumptions. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement). The three levels of the fair value hierarchy are as follows:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 primarily consists of financial instruments whose value is based on quoted market prices such as exchange-traded instruments and listed equities.

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly (e.g., quoted prices of similar assets or liabilities in active markets, or quoted prices for identical or similar assets or liabilities in markets that are not active).

Level 3 - Unobservable inputs for the asset or liability. Financial instruments are considered Level 3 when their fair values are determined using pricing models, discounted cash flows or similar techniques and at least one significant model assumption or input is unobservable.

The carrying amounts reported in the consolidated balance sheets approximate their fair value.

<u>Cash Equivalents and Concentration of Cash Balance</u>

The Company considers all highly liquid securities with an original maturity of less than three months to be cash equivalents. The Company's cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of December 31, 2024 and 2023, the Company had cash of $0 and $27,071, respectively, in excess of federally insured limits, and is therefore subject to significant credit risk and exposed to potential losses on these uninsured deposits.

<u>Accounts Receivable and Allowance for Doubtful Accounts</u>

Accounts receivable are carried at their estimated collectible amounts. Accounts receivable are periodically evaluated for collectability based on past credit history with clients and other factors.

Provisions for losses on accounts receivable are determined on the basis of loss experience, known and inherent risk in the account balance, and current economic conditions.

During the year ended December 31, 2024, the Company wrote off $67,377 of accounts receivable as uncollectible, providing allowances of $437,157 and $363,781 as of December 31, 2024 and 2023, respectively. These allowances primarily relate to long-outstanding receivables from Series One and other trade receivables. The Company uses the allowance method to account for bad debts, estimating the amount of uncollectible accounts based on historical experience and current economic conditions.

See Independent Auditor's Report

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| |
|:---|
| F-10 |
| *[**Table of Contents**](#fs)* |

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<u>Subscription Receivable</u>

The Company records share issuances at the effective date. If the subscription is not funded upon issuance, the Company records a subscription receivable as an asset on a balance sheet. When subscription receivables are not received prior to the issuance of financial statements at a reporting date in satisfaction of the requirements under FASB ASC 505-10-45-2, the subscription receivable is reclassified as a contra account to stockholders' equity on the consolidated balance sheet.

<u>Escrow Receivable</u>

Amounts held in escrow are recognized at estimated realizable value and primarily relate to the stock offerings.

<u>Deferred Offering Costs</u>

The Company complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to stockholders' equity upon the completion of an offering or to expense if the offering is not completed.

<u>Property and Equipment, Intangible Assets</u> 

Property and equipment and intangible assets are recorded at cost. Depreciation and amortization are calculated using the straight-line method over the following estimated useful lives of assets:

---

| | |
|:---|:---|
| Computer equipment | 3 years |
| Customer list | 3 years |
| Website | 3 years |
| Software | 5-15 years |
| License | indefinite |

---

The useful lives and the depreciation and amortization methods are reviewed periodically to ensure that the periods and depreciation and amortization methods are consistent with the expected pattern of economic benefits from items of property and equipment and intangible assets.

There were no changes in the estimated useful lives of each of the Company's items of property and equipment and intangible assets for the years ended December 31, 2024 and 2023.

<u>Goodwill</u>

The Company records goodwill when it acquires businesses and recognizes the excess of the purchase price over the fair value of identifiable net assets acquired. Goodwill is not amortized but is subject to annual impairment testing as of the reporting date. The impairment test compares the fair value of each reporting unit with its carrying amount, including goodwill. If the fair value is determined to be less than the carrying amount, an impairment loss is recognized, not to exceed the total amount of goodwill allocated to that reporting unit.

The Company performs its semi-annual impairment test and whenever events or changes in circumstances suggest that the carrying amount of goodwill may not be recoverable. The determination of fair value involves significant management judgment and estimation. Key assumptions include projected future cash flows, discount rates, and other factors that could impact the fair value assessment. The Company reviews and updates the assumptions used in the impairment test regularly to reflect changes in business conditions. Any impairment losses identified are recorded in the consolidated statement of operations in the period in which they are determined.

See Independent Auditor's Report

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| |
|:---|
| F-11 |
| *[**Table of Contents**](#fs)* |

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As of December 31, 2024, no impairment indicators were identified, and the Company believes that the carrying value of goodwill is recoverable. The Company will continue to monitor events and circumstances that could impact the recoverability of goodwill and will perform impairment testing as required by accounting standards.

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

The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the management assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the Company's long-lived assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell.

No impairment in the value of property and equipment or intangible assets was recognized for the years ended December 31, 2024 and 2023.

<u>Convertible Instruments</u>

U.S. GAAP requires companies to bifurcate conversion options from their host instruments and account for them as free-standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. An exception to this rule is when the host instrument is deemed to be conventional as that term is described under applicable U.S. GAAP.

When the Company has determined that the embedded conversion options should not be bifurcated from their host instruments, the Company records, when necessary, discounts (or beneficial conversion features) to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts or beneficial conversion features under these arrangements are (i) amortized over the term of the related debt to their stated date of redemption or (ii) when based on a future contingent event, the beneficial conversion feature is deferred and recorded at the time when the contingency no longer exists.

See Independent Auditor's Report

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|:---|
| F-12 |
| *[**Table of Contents**](#fs)* |

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<u>Non-Controlling Interests</u>

Non-controlling interests are classified as a separate component of equity in the Company's consolidated balance sheets and consolidated statements of changes in stockholders' equity. Net income (loss) attributable to non-controlling interests is reflected separately from consolidated net income (loss) in the consolidated statements of operations and consolidated statements of changes in stockholders' equity. Any change in ownership of a subsidiary while the controlling financial interest is retained is accounted for as an equity transaction between the controlling and non-controlling interests. In addition, when a subsidiary is deconsolidated, any retained non-controlling equity investment in the former subsidiary will be initially measured at fair value and the difference between the carrying value and fair value of the retained interest will be recorded as a gain or loss. The Company has non-controlling interests via its subsidiary LawBot, LLC.

During the years ended December 31, 2024 and 2023, the Company recorded losses of $142,659 and $112,293, respectively, attributable to non-controlling interests.

<u>Revenue Recognition</u>

ASC Topic 606, "Revenue from Contracts with Customers" establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers.

Revenues are recognized when control of the promised goods or services are transferred to a customer, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: 1) identify the contract with a customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to performance obligations in the contract; and 5) recognize revenue as the performance obligation is satisfied.

The Company collects revenues in advance for its membership subscriptions and initially records as deferred revenues. The Company has determined that its performance obligations in relation to these agreements with customers are satisfied through the passage of time of the underlying subscription period, which are monthly or annually. Monthly subscriptions are recognized upon completion of the month of service, while annual subscriptions are recognized monthly over the subscription period on a straight-line basis.

LawBot, LLC derives revenue from creating, filing and managing all of the customers' capital raising documents online. The Company has determined that its performance obligations in relation to these agreements with customers are satisfied at a point in time when the customer selects, completes and submits a form on LawBot's online platform.

*Contract Balances*

A receivable is recognized if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). The Company collects payments from customers in advance and therefore no accounts receivable is recognized. However, the Company uses third parties for customer payments processing and there may be funds being held in escrow at the end of the reporting period. As of both December 31, 2024 and 2023, $0 of revenues were not yet closed out of escrow.

See Independent Auditor's Report

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|:---|
| F-13 |
| *[**Table of Contents**](#fs)* |

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A contract liability is recognized if a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognized as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer). The Company has contract liabilities of $209,726 and $238,456 as of December 31, 2024 and 2023, respectively, recognized as deferred revenue in the consolidated balance sheets.

---

| | |
|:---|:---|
|  | **Contract**<br> **Liabilities** |
| Deferred revenue, December 31, 2023 | $238456 |
| Cash paid on contracts with customers | 300350 |
| Revenues recognized | (329080) |
| Deferred revenue, December 31, 2024 | $209726 |

---

*Disaggregated Revenue Information*

---

| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **2024** | **2023** |
| Type of good or service: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Subscription | $246189 | $337728 |
| &nbsp;&nbsp;&nbsp;&nbsp; Forms | 310495 | 335322 |
| &nbsp;&nbsp;&nbsp;&nbsp; Others | 51747 | 43915 |
| Total revenue from contracts with customers | $608431 | $716965 |
| Timing of revenue recognition: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Good or service transferred over time | $246189 | $337728 |
| &nbsp;&nbsp;&nbsp;&nbsp; Good or service transferred at a point in time | 362242 | 379237 |
|  | $608431 | $716965 |

---

<u>Advertising Costs</u>

The Company expenses advertising costs as they are incurred. Advertising expense for the years ended December 31, 2024 and 2023 totaled $32,119 and $21,613, respectively.

<u>Research and Development</u>

Research and development costs are expensed as incurred.

<u>Leases</u>

On January 1, 2022, the Company adopted ASC 842, Leases, as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use (ROU) assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from lease arrangements. The Company adopted the new guidance using a modified retrospective method. Under this method, the Company elected to apply the new accounting standard only to the most recent period presented, recognizing the cumulative effect of the accounting change, if any, as an adjustment to the beginning balance of retained earnings. Accordingly, prior periods have not been recast to reflect the new accounting standard. The cumulative effect of applying the provisions of ASC 842 had no material impact on accumulated deficit.

The Company elected transitional practical expedients for existing leases which eliminated the requirements to reassess existing lease classification, initial direct costs, and whether contracts contain leases. Also, the Company elected to present the payments associated with short-term leases as an expense in statements of operations. Short-term leases are leases with a lease term of 12 months or less. The Company leases office spaces with a lease term of 6 to 12 months. The adoption of ASC 842 had no impact on the Company's consolidated balance sheet as of December 31, 2024 and 2023.

See Independent Auditor's Report

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| |
|:---|
| F-14 |
| *[**Table of Contents**](#fs)* |

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<u>Stock-Based Compensation</u> 

The Company measures all stock-based awards granted to employees, advisors and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards, net of estimated forfeitures, 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 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. 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.

<u>Income Taxes</u> 

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 its 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 is 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 financial statements. The Company has determined that there are no material uncertain tax positions. The Company believes that its income tax positions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position.

See Independent Auditor's Report

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| |
|:---|
| F-15 |
| *[**Table of Contents**](#fs)* |

---

The Company was a limited liability company through the December 28, 2020 conversion date. Accordingly, under the Internal Revenue Code, all taxable income or loss flowed through to its members through such date. Therefore, no provision for income tax has been recorded in the statements until the conversion date. Income from the Company was reported and taxed to the members on their individual tax returns. Upon the conversion to a corporation, the Company is now taxable as a corporation effective December 28, 2020.

The Company accounts for income taxes with the recognition of estimated income taxes payable or refundable on income tax returns for the current period and for the estimated future tax effect attributable to temporary differences and carryforwards. Measurement of deferred income items is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized in the immediate future.

The Company may in the future become subject to federal, state and local income taxation though it has not been since its inception, other than minimum state tax. The Company is not presently subject to any income tax audit in any taxing jurisdiction.

<u>Net Earnings or Loss per Share</u> 

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 earnings or loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2024 and 2023, diluted net loss per share is the same as basic net loss per share for each period.

**NOTE 3: GOING CONCERN**

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, has sustained net losses of $2,240,199 and $3,653,530 during the years ended December 31, 2024 and 2023, respectively, has an accumulated deficit of $17,097,055 as of December 31, 2024, has incurred negative cash flows from operations for the years ended December 31, 2024 and 2023, and lacks liquid assets to satisfy its obligations as they come due with a working capital deficit of $1,335,149 as of December 31, 2024. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

The Company's ability to continue as a going concern in the next twelve months following the date the consolidated financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results. Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs. No assurance can be given that the Company will be successful in these efforts.

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

See Independent Auditor's Report

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| |
|:---|
| F-16 |
| *[**Table of Contents**](#fs)* |

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**NOTE 4: INVESTMENT IN SAFE**

In December 2022, LawBot, LLC purchased a Simple Agreement for Future Equity ("SAFE") notes of So. Capital Inc., which is now owned by Crowd Diligence, Inc., in the amount of $50,000. The conversion is effective upon Crowd Diligence, Inc. closing an equity funding round of at least $100,000. In May 2023, in exchange for this, Crowd Diligence, Inc. issued to LawBot, LLC the right to certain shares of its capital stock. The discount rate is 20% and the valuation cap is $3,750,000. LawBot, LLC may convert the SAFE to a number of shares of the CF Shadow Series of Preferred Stock in the first equity financing from which Crowd Diligence, Inc. receives gross proceeds of not less than $1,000,000, or elect to continue the term of the SAFE without converting the purchase amount to capital stock. The investment is carried at cost less impairment losses and is assessed for impairment semi-annually. No impairment was recorded as of December 31, 2024 and 2023.

**NOTE 5: NON-CURRENT ASSETS**

As of December 31, 2024 and 2023, property and equipment and intangible assets consisted of the following:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Equipment** | **Software** | **Customer list** | **Website** | **License** |
| Cost | $11519 | $325867 | $612814 | $1550000 | $2167610 |
| Less: Reversal | - | - | (243794) | - | - |
| Adjusted cost | 11519 | 325867 | 369020 | 1550000 | 2167610 |
| Accumulated depreciation and amortization | (11381) | (323909) | (369020) | (1475000) | - |
| Net Book Value | $138 | $1958 | $- | $75000 | $2167610 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** | **December 31, 2023** |
|  | **Equipment** | **Software** | **Customer list** | **Website** | **License** |
| Cost | $11519 | $325867 | $612814 | $1550000 | $2167610 |
| Less: Reversal | - | - | (243794) | - | - |
| Adjusted cost | 11519 | 325867 | 369020 | 1550000 | 2167610 |
| Accumulated depreciation and amortization | (9848) | (323712) | (369020) | (958333) | - |
| Net Book Value | $1671 | $2155 | $- | $591667 | $2167610 |

---

Depreciation and amortization totaled $518,397 and $593,169 for the years ended December 31, 2024 and 2023, respectively. The cost of fully depreciated and amortized assets still being used amounted to $373,115 and $373,115 as of December 31, 2024 and 2023, respectively. Intangible assets with a cost basis of $2,244,887 and $2,244,887 have a weighted average remaining useful life of 0.37 and 1.37 years as of December 31, 2024 and 2023, all respectively, and will be recognized on a straight-line basis over the remaining amortization period.

In 2023, the Company recorded goodwill of $649,974 upon its acquisition of its subsidiary, Lawbot. The goodwill is assessed for impairment semi-annually and as of December 31, 2024 and 2023, no impairment losses were determined to be necessary. See Note 6.

See Independent Auditor's Report

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| F-17 |
| *[**Table of Contents**](#fs)* |

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<u>License</u>

The Company entered into an agreement to license an intellectual property for 16 months beginning December 1, 2019. The Company agreed to pay a monthly fee of approximately 25% of certain revenues generated from the licensed assets. When the aggregate of the fee paid each month reaches a total of $150,000, the Company agreed to pay an additional 1% of revenue per year until either the Company has paid to the licensor the sum of $1,000,000, or the Company is acquired in a positive transaction, which would be in addition to 5% of the outstanding membership interest units of the Company as of March 31, 2021. Upon which time, the full ownership of all licensed intellectual property shall transfer to the Company.

In February 2022, the agreement was amended to extend the duration of the exclusive license into perpetuity, waive the right of the licensor to any fees not already paid by the Company as licensee, waive any fees that might be contemplated by the original agreement, and deliver to licensor shares of common stock equivalent to 4% of the outstanding Class A common stock of the Company as of March 31, 2021. As a result, the Company issued 2,167,610 shares of Class A common stock to the licensor on the same date of this amended agreement. These shares were attributed a fair value based on the active offering price of the Company's shares of common stock at the issuance date at $1.00 per share and the value was recorded as an indefinite-lived intangible asset.

See Note 6 for the discussion of customer list and website.

**NOTE 6: ACQUISITIONS**

<u>Early Investing</u>

On March 20, 2020, the Company acquired 100% of the membership interests of Oxford Financial Publishing, LLC (the "Seller") in Early Investing, LLC, a Maryland limited liability company, through an asset purchase agreement. The acquisition was accounted for using the asset purchase method, in which the fair value of the transaction is allocated and attributed to specific assets based on their relative fair value. No liabilities were assumed in the acquisition.

The Company determined that the transaction was an acquisition of asset which is the revenue-producing customer list. The revenue-producing activity of the acquired asset did not remain generally the same as before the transaction. The Seller retained the right to sell its own products to the customer list and is allowed to continue generating revenue from the customer list for a period of two years. Therefore, the full transaction value was attributed as a customer list asset.

The purchase price of the asset is 40% of the gross receipts generated by the Company from the customer list in the first year after the purchase, 25% in the second year and 10% in the third year. Based upon the revenue generated by the Company by marketing its Kings Crowd products to the customer list, for the period from May 2020 to January 2021, the Company estimated that average monthly revenues from the customer list will be $68,090 per month for the three-year period following the purchase. In accordance with ASC 450 where the contingent future liabilities under this agreement are probable and estimable, the Company had recorded an acquisition payable of $612,814, as an estimate of the three years of payments to be made to the Seller and has recorded a customer list asset of $612,814, amortized using the straight-line method over the three-year estimated useful life of the asset. The Company reassessed the purchase price at the end of the reporting period based on the actual revenues generated from the date of the acquisition to the reporting date. As a result, customer list and acquisition payable were reduced to $369,020 and a gain from reversal of accumulated amortization amounting to $152,464 was recognized during the year ended December 31, 2022.

The amortization was recorded as "sales and marketing – customer list amortization" operating expense in the consolidated statements of operations in the amount of $0 and $41,002 for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, acquisition payable amounted to $369,020.

See Independent Auditor's Report

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| F-18 |
| *[**Table of Contents**](#fs)* |

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<u>Crowdwise</u>

On July 1, 2021, the Company entered into an agreement to purchase certain assets of Crowdwise, LLC, operated on the internet in connection with its website, for an aggregate consideration of $50,000 paid on April 2022. The acquisition was accounted for using the asset purchase method, in which the fair value of the transaction is allocated and attributed to specific assets based on their relative fair value. No liabilities were assumed in the acquisition.

The assets acquired consisted of domains, brand/trademarks, images, software, social media accounts, contents and newsletter subscribers, of which the Company determined the full amount of fair value received in this transaction is attributed to the website and its underlying code and therefore the full transaction value was attributed as a website asset. The website asset is amortized over the three-year estimated useful life of the asset (see Note 5).

<u>Technori</u>

On February 25, 2022, the Company entered into an agreement to purchase certain assets of Technori, LLC, operated on the internet in connection with its website, for an aggregate consideration of 1,500,000 shares of Class A common stock of the Company, which were attributed a fair value based on the active offering price of the Company's shares of common stock at the issuance date at $1.00 per share. The acquisition was accounted for using the asset purchase method, in which the fair value of the transaction is allocated and attributed to specific assets based on their relative fair value. No liabilities were assumed in the acquisition.

The assets acquired consisted of websites, social media accounts, domain names, newsletter, subscriptions and all Technori digital assets, of which the Company determined the full amount of fair value received in this transaction is attributed to the website and its underlying code and therefore the full transaction value was attributed as a website asset. The website asset is amortized over the three-year estimated useful life of the asset (see Note 5).

<u>Lawbot</u>

On January 23, 2023, the Company purchased 17,000 Class A units of LawBot, LLC ("LawBot"), or 50.3% interest. As such, LawBot became a subsidiary of the Company. The Company has the option to subscribe for and purchase the remaining membership interests of LawBot or 16,788 Class A and Class B Units for a consideration of 3.5 times LawBot's adjusted revenue for the year ended December 31, 2025.

The consideration paid for this acquisition was $250,000 of cash and 1,000,000 warrants (the "Warrants") to purchase Class A Common Stock (the "Common Stock") of KingsCrowd at an exercise price of $1.20 per share, which the Company valued under the Black-Scholes method at $344,000, resulting in total purchase consideration of $594,000.

Upon acquisition, the Company recorded the assets and liabilities of Lawbot at fair value, resulting in the recognition of assets of $138,283 and liabilities of $489,393. The excess of the consideration paid over the net identifiable assets received resulted in the recognition of goodwill of $649,974 and non-controlling interests in the net assets (contra-equity) of $295,136.

See Independent Auditor's Report

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| F-19 |
| *[**Table of Contents**](#fs)* |

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The Company obtained a loan in connection with this acquisition, as discussed in Note 7.

**NOTE 7: LOANS**

In 2021 and 2022, the Company entered into short-term agreements with non-bank entities under which future accounts receivable may be purchased for a discount. Repayments are made monthly and the loans are secured by Company's assets under the agreements' terms. The Company received a total of $0 under such relationships and incurred fees of $0 during the years ended December 31, 2024 and 2023. The fees incurred were recorded as a discount to the loans and amortized to interest expense over the 12-month contract term. The Company repaid a total of $0 and $89,145, including payment for fees amounting to $0 and $7,329, during the years ended December 31, 2024 and 2023, all respectively. The balance due as of December 31, 2024 and 2023 was $0.

In 2023 and 2024, the Company entered into similar agreements above with different entities. The Company received a total of $30,060 and $40,500 and under such relationships and incurred fees of $940 and $4,500 during the years ended December 31, 2024 and 2023, respectively. The Company repaid a total of $113,310 and $23,609, including payment for fees amounting to $56,251 and $10,109, during the years ended December 31, 2024 and 2023, all respectively. The balance due as of December 31, 2024 and 2023 was $0 and $14,321, respectively.

From January 2022 to August 2024, the Company obtained loans from Celtic Bank through Stripe Capital Program, a business loan program for users of Stripe, Inc.'s payment processing platform. As of December 31, 2024 and 2023, the Company received a total of $58,000 and $26,900 and incurred a fixed fee assessed by the bank totaling $7,869 and $3,658 which represents the total cost of the loan, all respectively. The repayment rate of the principal and fixed fee is 20% of daily merchant receivables withheld by Stripe, Inc. to repay the loan. The Company repaid $59,439 and $63,675 during the years ended December 31, 2024 and 2023, respectively. Of such, during the years ended December 31, 2024 and 2023, $2,900 and $9,594, respectively, relate to the fixed fee which were recorded as interest expense in the consolidated statement of operations. The balance outstanding as of December 31, 2024 and 2023 was $11,030 and $21,817, respectively.

In 2023, the Company obtained a loan with a principal amount of $250,000 from Gold Ridge Micro Cap II. The proceeds were solely for the purchase of membership interests in LawBot. The term loan bears interest of 12% per annum, matures on December 31, 2025, and is secured by the Company's right, title and interest in the equity interests in LawBot LLC. In 2024, the Company repaid $183,163. The balance outstanding as of December 31, 2024 and 2023 was $0 and $183,163, respectively.

In July and November 2024, the Company obtained loans with a principal amount of $225,000 from Scott Group, LLC, bearing interest at 9% and maturing in 2027. The loan requires monthly payments of $7,155. The Company repaid a total of $15,890 including interest payments amounting to $2,011, during the year ended December 31, 2024. The balance due as of December 31, 2024 and 2023 was $211,111. Future maturities on this loan are $75,000, $75,000, and $61,111 for the years 2025, 2026, and 2027, respectively.

See Independent Auditor's Report

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| |
|:---|
| F-20 |
| *[**Table of Contents**](#fs)* |

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**NOTE 8: EQUITY** 

<u>Limited Liability Company to Corporate Conversion, Stock Split</u>

At inception, the Company had a single class of common units authorized, of which 1,000 were granted to its founding members, and each unit has equal voting rights and proﬁt interests in the Company. These units have been issued to the founding members and were attributed zero value in these ﬁnancial statements. In June 2018, the Company effected a 2,000-for-1 reverse split, increasing the total granted units from 1,000 to 2,000,000.

In December 2020, the Company authorized 66,000,000 shares of $0.0001 par value common stock, including 51,000,000 shares of Class A common stock and 15,000,000 shares of Class B common stock, upon conversion to corporation, as discussed in Note 1. All membership interests in Kings Crowd, LLC, including unvested restricted units and unexercised warrants, were converted at a conversion rate of 12.71915097123437 shares of common stock for each membership unit. All shares and warrants reflected in these ﬁnancial statements are indicative of post-split ﬁgures and the par value of the issued shares was recorded with the offset to additional paid-in capital.

In April 2023, the Company amended its certificate of incorporation. The Company is authorized to issue 150,000,000 shares of Class A Common Stock, par value $0.0001 per share, and 15,000,000 shares of Class B Common Stock, par value $0.0001 per share.

As of December 31, 2024 and 2023, 12,427,839 and 12,427,839 shares of Class A common stock and 11,594,551 and 11,594,551 shares of Class B common stock of the founders were issued and outstanding, all respectively.

<u>Common Stock</u>

The Class A common stock and Class B common stock are identical in all respects, except that each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. The two classes of common stock generally vote together as a single class on all matters submitted to a vote of the stockholders, except as otherwise required by law and the certificate of incorporation. The two classes of common stock participate ratably, meaning that each share of common stock is treated equally, with respect to dividends and distributions declared by the board of directors and in any distribution of the Company's assets available for distribution to the stockholders upon any liquidation or winding up of the Company. Each outstanding share of Class B common stock is convertible into one fully paid and nonassessable share of Class A Common stock (i) at any time at the option of the holder or (ii) automatically upon the consummation by the Company of an underwritten public offering of the Company's securities from which the Company receives gross proceeds in excess of $10,000,000.

<u>Shares Issued for Services</u>

The Company's 202 Incentive Plan (the "Plan") authorized the issuance of 8,000,000 shares of common stock. The Company grants restricted stock awards to employees and non-employee advisors and consultants which are subject to vesting terms of 3-48 months.

See Independent Auditor's Report

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| F-21 |
| *[**Table of Contents**](#fs)* |

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A summary of restricted stock awards granted by the Company is as follows:

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2023** |
| Balance at beginning of the year | 14039827 | 12827439 |
| Granted | 1510000 | 2112553 |
| Forfeited | (10397) | (564813) |
| Balance at end of the year | 15539430 | 14375179 |

---

During the years ended December 31, 2024 and 2023, 1,517,776 and 3,325,787 shares of Class A common stock were issued and vested and $582,751 and $1,702,478 were recorded as stock-based compensation expense in the consolidated statement of operations, all respectively. As of December 31, 2024 and 2023, 638,278 and 656,451, shares of Class A common stock remained subject to vesting terms, respectively, with remaining time to vesting of 1.1 years as of December 31, 2024.

<u>Regulation A and D Offering</u>

In 2021, the Company qualified to offer up to 15,000,000 shares of Class A common stock under Regulation A. Of the 15,000,000 shares of Class A common stock being offered, (i) the Company is offering up to an aggregate of 13,000,000 newly issued shares of Class A common stock and (ii) certain selling stockholders are offering up to an aggregate of 2,000,000 shares of Class A common stock currently outstanding ("Regulation A Offering"). The shares being offered by one of the selling stockholders are held as shares of Class B common stock, which shares will convert into shares of Class A common stock upon the sale of such shares in the Regulation A Offering. During the year ended December 31, 2022, the Company issued new shares of Class A common stock totaling 2,645,327 and 1,097,893 for gross proceeds of $2,645,328 and $1,097,893 at a price per share of $1.00 and the selling stockholders sold 255,474 and 35,838 shares of Class A common stock and 255,474 and 35,838 shares of Class B common stock, all respectively.

The Company also issued 100,000 shares of Class A common stock under a Regulation D offering for gross proceeds of $$100,000 during the year ended December 31, 2023.

<u>Private Placement</u>

In 2023, the Company started offering up to 4,687,500 of its Class A common stock, par value $0.0001 per share under Regulation CF Offering. During the years ended December 31, 2024 and 2023, the Company issued a total of 3,676,249 and 6,039,063 shares of Class A common stock for gross proceeds of $611,897 and $966,216, all respectively, at a price per share of $0.16. As of December 31, 2024 and 2023, $20,000 and $13,750 were recorded as subscription receivable in the consolidated balance sheet, respectively.

<u>Regulation CF Offering</u>

In 2024, the Company raised gross proceeds of $308,721 through the issuance of 1,929,506 shares of Class A common stock, in the aggregate, at a price per share of $0.16. The offering cost incurred was $15,436.

See Independent Auditor's Report

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| F-22 |
| *[**Table of Contents**](#fs)* |

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<u>Warrants</u>

The Company issued 1,000,000 warrants to purchase Class A Common Stock (the "Common Stock") to Lawbot at an exercise price of $1.20 per share in connection with the acquisition discussed in Note 6. The warrants remain unexercised as of December 31, 2024 and expire on January 31, 2030.

<u>Other Issuances</u>

In 2022, the Company issued 1,500,000 shares of Class A common stock in conjunction with the asset purchase agreement discussed in Note 6. These shares were attributed a fair value based on the active offering price of the Company's shares of common stock at the issuance date at $1.00 per share.

In addition, 2,167,610 shares of Class A common stock were issued in connection with the licensed intellectual property discussed in Note 5. The shares were attributed a fair value based on the active price of the Company's shares of common stock at issuance date at $1.00 per share.

<u>Shares Outstanding</u> 

As of December 31, 2024 and 2023, 61,220,220 and 54,096,689 shares of Class A common stock and 12,427,839 and 12,427,839 shares of Class B common stock were issued and outstanding, all respectively. Certain stock issuances were under restricted unit purchase agreements which stipulated repurchase options subject to vesting schedules dependent upon the stockholders' continued service to the Company, with the repurchase price set at the issuance price per share. As of December 31, 2024 and 2023, 638,278 and 656,451 shares of Class A common stock were unvested and remained subject to the repurchase option, respectively.

<u>LawBot, LLC</u>

Concerning LawBot, LLC, the debts, obligations, and liabilities of the Company, whether arising in contract, tort, or otherwise, are solely the debts, obligations, and liabilities of the Company, and no member of the Company is obligated personally for any such debt, obligation, or liability.

**NOTE 9: RELATED PARTY TRANSACTIONS**

In 2018, LawBot, LLC obtained loans from its members with an aggregate principal balance of $284,843. The notes bear a simple interest rate of 8% per annum and mature on March 31, 2026, as amended. As of December 31, 2024 and 2023, the total principal of $284,843 and $284,843 was outstanding and related accrued interest payable was $162,521 and $134,779, both respectively. During the year ended December 31, 2024 and 2023, the interest expense recognized amounted to $27,742 and $27,668, respectively.

**NOTE 10: RECENT ACCOUNTING PRONOUNCEMENTS**

In June 2016, the FASB issued ASU 2016-13, *Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,* including subsequently issued ASUs, to clarify the implementation guidance in ASU 2016-13. The standard's main goal is to improve financial reporting by requiring earlier recognition of credit losses on financing receivables and other financial assets in scope. ASU 2016-13 will be effective for private companies' fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is adopted this standard effective January 1, 2023 and the adoption of such did not have a material impact on the Company's consolidated financial statements.

See Independent Auditor's Report

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| F-23 |
| *[**Table of Contents**](#fs)* |

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In January 2017, the FASB issued ASU 2017-04, *Intangibles - Goodwill and Other (Topic 350)*, simplifying Accounting for Goodwill Impairment. ASU 2017-04 removes the requirement to perform a hypothetical purchase price allocation to measure goodwill impairment. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendments in this update are effective for public entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. For all other entities, the amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company is adopted this standard effective January 1, 2023 and the adoption of such did not have a material impact on the Company's consolidated financial statements.

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.

**NOTE 11: COMMITMENTS, CONTINGENCIES, AND CONCENTRATIONS**

<u>General</u>

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 matter will have a material adverse effect on its business, financial condition or results of operations.

**NOTE 12: INCOME TAXES**

Deferred taxes are recognized for temporary differences between the basis of assets and liabilities for financial statements and income tax purposes. The differences relate primarily to net operating loss carryforwards. As of December 31, 2024 and 2023, the Company had net deferred tax assets before valuation allowance of $1,904,233 and $1,527,624, respectively. The following table presents the deferred tax assets by source:

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| | | |
|:---|:---|:---|
|  | **December 31** | **December 31** |
|  | **2024** | **2023** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net operating loss carryforwards | $1627556 | $1339541 |
| &nbsp;&nbsp;&nbsp;&nbsp; Research and development credits | 276677 | 188083 |
| Valuation allowance | (1904233) | 1527624 |
| Net deferred tax assets | $- | $- |

---

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 as the Company has not yet generated income since inception. Deferred tax assets were calculated using the Company's combined effective tax rate, which it estimated to be 24.95%. The effective rate is reduced to 0% due to the full valuation allowance on its net deferred tax assets.

See Independent Auditor's Report

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|:---|
| F-24 |
| *[**Table of Contents**](#fs)* |

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The Company's ability to utilize net operating loss carryforwards will depend on its ability to generate adequate future taxable income. As of December 31, 2024 and 2023, the Company had net operating loss carryforwards available to offset future taxable income in the amount of $6,523,271 and $5,368,902, respectively.

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 is not presently subject to any income tax audit in any taxing jurisdiction.

**NOTE 13: SUBSEQUENT EVENTS**

<u>Class A Common Stock Issuance</u>

Through the issuance date of these consolidated financial statements, the Company raised gross proceeds of $191,000 through the issuance of 1,185,985 shares of Class A common stock under private placements and debt conversion.

<u>SAFE Agreements</u>

In December 2024, the Company entered into agreements with various investors to exchange SAFE notes of the Company totaling $92,399 into convertible notes.

<u>Convertible Notes</u>

In January 2025, Company entered into convertible note agreements with various lenders for total principal amounting to $582,276, with simple interest on the outstanding principal amount at the rate of 6.0% per annum. All unpaid interest and principal shall be due and payable upon request of the majority holders on or after May 10, 2026.

<u>Management's Evaluation</u>

Management has evaluated subsequent events through May 21, 2025, 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.

See Independent Auditor's Report

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|:---|
| F-25 |
| *[**Table of Contents**](#fs)* |

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**Item 8. Exhibits**

---

| | | |
|:---|:---|:---|
| **Exhibit**<br> **Number** | **Description** | **Location**<br> **Reference** |
| [1.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221004423/kings_ex11.htm) | [Second Amended and Restated Offering Listing Agreement between OpenDeal Broker LLC and the Company.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221004423/kings_ex11.htm) | # |
| [2.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex21.htm) | [Plan of Conversion with respect to the conversion of KingsCrowd LLC into KingsCrowd, Inc. dated December 28, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex21.htm) | # |
| [2.2](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex22.htm) | [Certificate of Incorporation of KingsCrowd, Inc.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex22.htm) | # |
| [2.3](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex23.htm) | [Bylaws of KingsCrowd, Inc.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex23.htm) | # |
| [3.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex31.htm) | [Securities Purchase Warrant issued by the Company to Newchip, Inc.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex31.htm) | # |
| [4.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex41.htm) | [Form of Subscription Agreement](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex41.htm) | # |
| [4.2](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex42.htm) | [Form of Irrevocable Power of Attorney of Christopher Lustrino](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex42.htm) | # |
| [4.3](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex43.htm) | [Form of Irrevocable Power of Attorney of Nantascot LLC](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex43.htm) | # |
| [4.4](kings_ex44.htm) | [Common Stock Purchase Warrant in favor of Gold Ridge Micro Cap II LLC dated April 4, 2025.](kings_ex44.htm) | ●  |
| [5.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex51.htm) | [Agreement between Nantascot LLC and the Company dated December 28, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex51.htm) | # |
| [5.2](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex52.htm) | [Agreement between Netcapital Inc. and the Company dated December 28, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex52.htm) | # |
| [5.3](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex53.htm) | [Stockholders Agreement between Nantascot LLC and Valuesetters LLC dated December 28, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex53.htm) | # |
| [5.4](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex54.htm) | [Contract of Sale between Crowditz, LLC and the Company dated November 7, 2018.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex54.htm) | # |
| [5.5](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex55.htm) | [License to Purchase Agreement between Newchip Inc. and the Company dated December 2, 2019](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex55.htm) | # |
| [5.6](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex56.htm) | [Assignment Agreement between Oxford Financial Publishing, LLC and the Company dated March 29, 2020](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex56.htm) | # |
| [5.7](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex57.htm) | [Transition Services Agreement between Oxford Financial Publishing, LLC and the Company dated April 3, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex57.htm) | # |
| [5.8](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex58.htm) | [Form of Note Purchase Agreement and Convertible Promissory Note between the Company and certain investors during the period December 2020 through March 2021.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex58.htm) | # |
| [5.9](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex59.htm) | [Employment Agreement between Venkatachalam Sankaranarayanan Jr. and the Company dated April 1, 2020.\*](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex59.htm) | # |
| [5.10](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex510.htm) | [Employment Agreement between Andrew Gordon and the Company dated April 1, 2020.\*](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex510.htm) | # |
| [5.11](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex511.htm) | [Consulting Agreement between Ahmad Takatkah and the Company dated January 13, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex511.htm) | # |
| [5.12](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex512.htm) | [Consulting Agreement between Howard Schneider and the Company dated January 13, 2020.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex512.htm) | # |
| [5.13](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex513.htm) | [Consulting Agreement between Sean O'Reilly and the Company dated June 6, 2018.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex513.htm) | # |
| [5.14](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex514.htm) | [2020 KingsCrowd, Inc. Incentive Plan and award agreements thereunder.\*](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex514.htm) | # |
| [5.15](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex515.htm) | [Lease Agreement between Regus Management Group, LLC and the Company for office space in San Francisco, California.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221001921/kings_ex515.htm) | # |
| [5.16](kings_ex516.htm) | [Membership Interest Subscription and Option Agreement between the Company and Lawbot LLC dated January 23, 2023](kings_ex516.htm) | ●  |
| [5.17](kings_ex517.htm) | [Stock Purchase Agreement between the Company and Crowd Diligence Inc. dated as of December 29, 2024.](kings_ex517.htm) | ●  |
| [5.18](kings_ex518.htm) | [Asset Purchase Agreement between the Company and Crowd Check Inc. and Nicole Loftus dated April 4, 2025.](kings_ex518.htm) | ●  |
| [5.19](kings_ex519.htm) | [Promissory Note made by the Company in favor of Nicole Loftus in the principal amount of $4,000,000 dated April 4, 2025.](kings_ex519.htm) | ●  |
| [5.20](kings_ex520.htm) | [Promissory Note made by the Company in favor of Gold Ridge Micro Cap II LLC in the principal amount of $500,000 dated April 4, 2025.](kings_ex520.htm) | ●  |
| [5.21](kings_ex521.htm) | [Amendment No. 1 to Membership Interest Subscription and Option Agreement between the Company and Lawbot LLC dated April 4, 2025](kings_ex521.htm) | ●  |
| [8.1](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex81.htm) | [Escrow Agreement between Prime Trust, LLC and the Company dated August 4, 2021.](http://www.sec.gov/Archives/edgar/data/1744757/000147793221003791/kings_ex81.htm) | # |

---

# Previously filed. <br> \* Indicates a management contract or any compensatory plan, contract or arrangement. <br> ● Filed herewith

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|:---|
| 38 |
| *[**Table of Contents**](#toc)* |

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**SIGNATURES**

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

---

| | | |
|:---|:---|:---|
|  | **KingsCrowd, Inc.** | **KingsCrowd, Inc.** |
| Date: July 22, 2025 | By: | */s/ Christopher Lustrino* |
|  | Name: | Christopher Lustrino |
|  | Title: | President <br> (Principal Executive Officer and Principal Financial Officer) |

---

Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

---

| | | | |
|:---|:---|:---|:---|
| **Signature** | **Signature** | **Title** | **Date** |
|  | Christopher Lustrino |  |  |
| By: | */s/ Christopher Lustrino* | Director  | July 22, 2025 |
|  | Christopher Lustrino |  |  |
|  | Daniel Waterman |  |  |
| By: | */s/ Daniel Waterman* |  | July 22, 2025 |
|  | Daniel Waterman | Director |  |
|  | Cecilia Lenk |  |  |
| By: | */s/ Cecilia Lenk* |  | July 22, 2025 |
|  | Cecilia Lenk | Director |  |

---

## Ex1K-4

**EXHIBIT 4.4**

**THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD IN ACCORDANCE WITH RULE 144 UNDER SUCH ACT.** 

DATE OF ISSUANCE: April 4, 2025 NUMBER OF SHARES: 200,000

**WARRANT TO PURCHASE SHARES**

**OF COMMON STOCK OF**

**KINGSCROWD, INC.**

FOR VALUE RECEIVED, KingsCrowd, Inc., a Delaware corporation (the "**Company**"), which is hereby acknowledged, hereby certifies that Gold Ridge Micro Cap II LLC or its registered assigns (the "**Warrantholder**") is entitled to purchase from the Company 200,000 duly authorized, validly issued, fully paid and nonassessable shares of Class A common stock of the Company, par value $0.0001 per share ("**Common Stock**"), at a purchase price per share set forth herein, all subject to the terms, conditions and adjustments set forth below in this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Exercise of Warrant.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Number and Exercise Price of Warrant Shares; Expiration Date</u>. Subject to the terms and conditions set forth herein and set forth in the Subscription Agreement, the Warrantholder is entitled to purchase from the Company up to 200,000 shares of Common Stock, (as adjusted from time to time pursuant to the provisions of this Warrant) (the "**Warrant Shares**"), at a purchase price $0.01 per share (the "**Exercise Price**"), on or before 5:00 p.m. Eastern time on April 4, 2032 (the "**Expiration Date**") (subject to earlier termination of this Warrant as set forth herein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Method of Exercise</u>. While this Warrant remains outstanding and exercisable in accordance with Section 1(a) above, the Warrantholder may exercise this Warrant in accordance with Section 5 herein, by wire transfer to the Company or cashier's check drawn on a United States bank made payable to the order of the Company.

Notwithstanding anything herein to the contrary, the Warrantholder shall not be required to physically surrender this Warrant to the Company until the Warrantholder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Warrantholder shall surrender this Warrant to the Company for cancellation within three (3) trading days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Warrantholder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases.

"**Trading Market**" shall mean any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange or the OTC Markets (or any successors to any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Certain Adjustments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Adjustment of Number of Warrant Shares and Exercise Price</u>. The number and kind of Warrant Shares purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Subdivisions, Combinations and Other Issuances</u>. If the Company shall at any time after the Date of Issuance but prior to the Expiration Date subdivide its shares of capital stock of the same class as the Warrant Shares, by split-up or otherwise, or combine such shares of capital stock, or issue additional shares of capital stock as a dividend with respect to any shares of such capital stock, the number of Warrant Shares issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total number of Warrant Shares purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 2(a)(1) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Reclassification, Reorganizations and Consolidation</u>. In case of any reclassification, capital reorganization or change in the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 2(a)(1) above) that occurs after the Date of Issuance, then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Warrantholder, so that the Warrantholder shall thereafter have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of shares of stock and/or other securities or property (including, if applicable, cash) receivable in connection with such reclassification, reorganization or change by a holder of the same number and type of securities as were purchasable as Warrant Shares by the Warrantholder immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder so that the provisions hereof shall thereafter be applicable with respect to any shares of stock or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable hereunder, provided the aggregate Exercise Price shall remain the same (and, for the avoidance of doubt, this Warrant shall be exclusively exercisable for such shares of stock and/or other securities or property from and after the consummation of such reclassification or other change in the capital stock of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notice to Warrantholder</u>. If, while this Warrant is outstanding, the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect of its Common Stock, including, without limitation, any granting of rights or warrants to subscribe for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits stockholder approval for any Change of Control or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company, then the Company shall deliver to the Warrantholder a notice of such transaction at least ten (10) business days prior to the applicable record or effective date on which a person would need to hold Common Stock in order to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be described in such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Calculations</u>. All calculations under this Section 2 shall be made to the nearest cent or the nearest whole share, as the case may be. For purposes of this Section 2, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Treatment of Warrant upon a Change of Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon any Change of Control (as defined below) of the Issuer, each Warrant granted hereby automatically shall be converted into the right to receive an amount in cash, without interest and subject to any applicable withholding, equal to the value of the amount of cash or other assets such holder would have received had it exercised this Warrant immediately prior to such Change of Control. In the event the consideration paid for shares of Common Stock in a Change of Control transaction is not paid in cash, the Board of Directors shall determine the fair value of such consideration in good faith. In the event any consideration to be paid to holders of Common Stock is to be paid at a later date, the Warrantholder shall retain right to receive the cash value of any such consideration in the future subject to the same formula set forth in this Section 2(d)(i). Upon any payment to the Warrantholder pursuant to this Section 2(d)(i), this Warrant shall be cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As used in this Warrant, a "**Change of Control**" shall mean (i) a merger or consolidation of the Company with another corporation (other than a merger effected exclusively for the purpose of changing the domicile of the Company), (ii) the sale, assignment, transfer, conveyance or other disposal of all or substantially all of the properties or assets or all or a majority of the outstanding voting shares of capital stock of the Company, (iii) a purchase, tender or exchange offer accepted by the holders of a majority of the outstanding voting shares of capital stock of the Company, or (iv) a "person" or "group" (as these terms are used for purposes of Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**")) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly at least a majority of the voting power of the capital stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. No Fractional Shares.** No fractional Warrant Shares or scrip representing fractional shares will be issued upon exercise of this Warrant. In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the Purchase Price of one Warrant Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. No Stockholder Rights**. Until the exercise of this Warrant or any portion of this Warrant, the Warrantholder shall not have, nor exercise, any rights as a stockholder of the Company (including without limitation the right to notification of stockholder meetings or the right to receive any notice or other communication concerning the business and affairs of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Mechanics of Exercise; Delivery of Warrant Shares Upon Exercise.** Prior to termination or expiration, this Warrant may be exercised by the holder hereof, in whole or in part, by delivering to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Warrantholder at the address of the Warrantholder appearing on the books of the Company) of a duly executed copy of the Notice of Exercise in the form attached hereto as <u>Exhibit A</u> by facsimile or e-mail attachment and paying the Exercise Price then in effect with respect to the number of Warrant Shares as to which the Warrant is being exercised. Upon receipt by the Company of the Notice of Exercise, surrender of this Warrant and payment of the Exercise Price, the Company shall, as promptly as practicable, and in any event within five business days thereafter, execute (or cause to be executed) and deliver (or cause to be delivered) to the Holder a certificate or certificates representing the Warrant Shares issuable upon such exercise. This Warrant shall be deemed to have been exercised immediately prior to the close of business on the date of the delivery to the Company of the Notice of Exercise as provided above, and the person entitled to receive the Warrant Shares issuable upon such exercise shall be treated for all purposes as the holder of such shares of record as of the close of business on such date. The Warrant Shares shall be deemed to have been issued, and the holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price and all taxes required to be paid by the holder, if any, prior to the issuance of such shares, having been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Certificate of Adjustment.** Whenever the Exercise Price or number or type of securities issuable upon exercise of this Warrant is adjusted, as herein provided, the Company shall, at its expense, promptly deliver to the Warrantholder a certificate of an officer of the Company setting forth the nature of such adjustment and showing in detail the facts upon which such adjustment is based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Compliance with Securities Laws.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Agreement to Comply with the Securities Act</u>. The Holder, by acceptance of this Warrant, agrees to comply in all respects with the provisions of this Section 11 and the restrictive legend requirements set forth on the face of this Warrant and further agrees that such Holder shall not offer, sell or otherwise dispose of this Warrant or any Warrant Shares to be issued upon exercise hereof except under circumstances that will not result in a violation of the Securities Act of 1933, as amended (the "**Securities Act**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer</u>. Prior and as a condition to the sale or transfer of the Warrant Shares issuable upon exercise of this Warrant, the Warrantholder shall furnish to the Company such certificates, representations, agreements and other information, including an opinion of counsel, as the Company reasonably may require to confirm that such sale or transfer is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, unless such Warrant Shares are being sold or transferred pursuant to an effective registration statement. Notwithstanding the foregoing, Warrantholder may transfer this Warrant and any Warrant Shares issued upon exercise of this Warrant to an Affiliate or Family Member without necessity of providing to the Company the opinion of counsel referred to above, provided that such transferee confirms in writing, in form and substance as the Company may reasonably request, that it shall be subject to the terms of this Warrant and the Subscription Agreement. For purposes hereof, "Affiliate" means with respect to a Warrantholder any person or entity which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, such Warrantholder and "Family Member" means with respect to a Holder (i) any lineal descendent or sibling of such Holder, (ii) any spouse (or significant other) of such Holder or of a lineal descendent or sibling of such Holder, (iii) any entity a majority of which is owned by any of the persons listed in (i) or (ii) above and (iv) any trust for the benefit of the Holder or any of the persons listed in (i) or (ii) above. Other than in connection with a Change of Control, no transfer by Holder may be made to a competitor of the Company or any person or entity that invests in any such competitor, as determined in good faith by the board of directors. A Holder who is a member of the board of directors shall abstain from such determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Legend</u>. This Warrant and all Warrant Shares issued upon exercise of this Warrant (unless registered under the Securities Act) shall be stamped or imprinted with a legend in substantially the following form:

"THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR QUALIFIED UNDER ANY STATE OR FOREIGN SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED OR ASSIGNED UNLESS (I) A REGISTRATION STATEMENT COVERING SUCH SHARES IS EFFECTIVE UNDER THE ACT AND IS QUALIFIED UNDER APPLICABLE STATE AND FOREIGN LAW OR (II) THE TRANSACTION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS UNDER THE ACT AND THE QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE AND FOREIGN LAW AND, IF THE CORPORATION REQUESTS, AN OPINION SATISFACTORY TO THE CORPORATION TO SUCH EFFECT HAS BEEN RENDERED BY COUNSEL."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Replacement of Warrants.** On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. No Impairment.** Except to the extent as may be waived by the holder of this Warrant, the Company will not, by amendment of its charter or through a Change of Control, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Warrantholder against impairment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Representations of the Holder**. In connection with the issuance of this Warrant, the Holder specifically represents, as of the date hereof, to the Company by acceptance of this Warrant as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Holder is an "accredited investor" as defined in Rule 501 of Regulation D promulgated under the Securities Act. The Holder is acquiring this Warrant and the Warrant Shares to be issued upon exercise hereof for investment for its own account and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or exempted under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Holder understands and acknowledges that this Warrant and the Warrant Shares to be issued upon exercise hereof are "restricted securities" under the federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that, under such laws and applicable regulations, such securities may be resold without registration under the Securities Act only in certain limited circumstances. In addition, the Holder represents that it is familiar with Rule 144 under the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Holder acknowledges that it can bear the economic and financial risk of its investment for an indefinite period, and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Warrant and the Warrant Shares. The Holder has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Warrant and the business, properties, prospects and financial condition of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Warrant Register.** The Company shall keep and properly maintain at its principal executive offices books for the registration of the Warrant and any transfers thereof. The Company may deem and treat the Person in whose name the Warrant is registered on such register as the Holder thereof for all purposes, and the Company shall not be affected by any notice to the contrary, except any assignment, division, combination or other transfer of the Warrant effected in accordance with the provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law; Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the laws of the United States of America and the State of Wyoming, both substantive and remedial, without regard to Delaware conflicts of law principles. Any judicial proceeding brought under this Agreement or any dispute arising out of this Agreement or any matter related hereto shall be brought in the appropriate state or federal court for the district encompassing the Company's principal place of business in Arizona. The parties agree that any action brought by either party to interpret or enforce any provision of this Agreement shall be brought in, and each party agrees to, and does hereby, submit to the jurisdiction and venue of, the State of Arizona.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>. All notices, requests, consents and other communications hereunder shall be in writing, shall be sent by confirmed facsimile or electronic mail, or mailed by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, and shall be deemed given when so sent in the case of facsimile or electronic mail transmission, or when so received in the case of mail or courier, and addressed as follows: (a) if to the Company, at KingsCrowd Advisory, Inc., Attn: Christopher Lustrino, e-mail: chris@kingscrowd.com, and (b) if to the Warrantholder, at such address or addresses (including copies to counsel) as may have been furnished by the Warrantholder to the Company in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Cumulative Remedies</u>. The rights and remedies provided in this Warrant are cumulative and are not exclusive of, and are in addition to and not in substitution for, any other rights or remedies available at law, in equity or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Entire Agreement</u>. This Warrant constitutes the sole and entire agreement of the parties to this Warrant with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Successor and Assigns</u>. This Warrant and the rights evidenced hereby shall be binding upon and shall inure to the benefit of the parties hereto and the successors of the Company and the successors and permitted assigns of the Holder. Such successors and/or permitted assigns of the Holder shall be deemed to be a Holder for all purposes hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Third-Party Beneficiaries</u>. This Warrant is for the sole benefit of the Company and the Holder and their respective successors and, in the case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Headings</u>. The headings in this Warrant are for reference only and shall not affect the interpretation of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Amendment and Modification; Waiver</u>. Except as otherwise provided herein, this Warrant may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by the Company or the Holder of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Warrant shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Severability</u>. If any term or provision of this Warrant is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Warrant or invalidate or render unenforceable such term or provision in any other jurisdiction.

Signature Page Follows

[*Signature Page Follows*]

**IN WITNESS WHEREOF**, this Common Stock Purchase Warrant is issued effective as of the date first set forth above.

---

| |
|:---|
| **KINGSCROWD, INC.** |
| By:  |
| Name: Christopher Lustrino |
| Title: President |

---

[*Signature Page to Warrant]*

**EXHIBIT A**

**NOTICE OF EXERCISE**

(To be signed only upon exercise of Warrant)

To: KingsCrowd, Inc.

The undersigned, the Warrantholder of the attached Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder, [__________________________] shares of Common Stock of KingsCrowd, Inc. and herewith makes payment of [$_________________] thereof.

The undersigned requests that the certificates or book entry position evidencing the shares to be acquired pursuant to such exercise be issued in the name of, and delivered to [____________________________________], whose address is below.

By its signature below the undersigned hereby represents and warrants that it is an "accredited investor" as defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended, and agrees to be bound by the terms and conditions of the attached Warrant as of the date hereof, including Section 7 thereof.

DATED:<u> </u> (Signature must conform in all respects to name of the Warrantholder as specified on the face of the Warrant) <u> </u> Address:<u> </u> <u> </u> <u> </u>

## Ex1K-5

**EXHIBIT 5.16**

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**MEMBERSHIP INTEREST SUBSCRIPTION AND OPTION AGREEMENT**

This MEMBERSHIP INTEREST SUBSCRIPTION AND OPTION AGREEMENT (this "<u>Agreement</u>"), is entered into as of January 23, 2023 by and between LawBot LLC, (d/b/a LawCloud), a Delaware limited liability company (the "***Company***"), and KingsCrowd Inc., a Delaware corporation (the "***Purchaser***").

<u>RECITALS</u>

WHEREAS, the Company wishes to issue and sell to the Purchaser and the Purchaser wishes to subscribe for and purchase as of the date hereof seventeen thousand (17,000) Class A Units (the "***Subscription Units***") of the Company (as such term is defined in the Second Amended and Restated Limited Company Operating Agreement of the Company dated as of January 5, 2023, as amended and in effect from time to time (the "***LLCA***"; terms used herein and not otherwise defined having the meanings set forth in the LLCA)) pursuant to the terms and conditions set forth herein (the "***Subscription Acquisition***"); and

WHEREAS, the Company wishes to grant to the Purchaser the option (the "***Option***") to subscribe for and purchase an additional sixteen thousand eight hundred (16,800) Class A Units (the "***Option Units***"), adjusted as provided in this Agreement, such option to be exercisable upon the terms and conditions set forth herein (the "***Option Acquisition***"); and

WHEREAS, the Managers of the Company and the board of directors of the Purchaser have each unanimously (a) determined that this Agreement and the transactions contemplated hereby, including the Subscription Acquisition and the Option, are in the best interests of the Company and its Members and the Purchaser and its stockholders, respectively, and (b) approved and declared advisable this Agreement and the transactions contemplated hereby, including the Subscription Acquisition and the Option;

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE 1** 

**DEFINITIONS**

<u>Section 1.1</u> <u>Definitions</u>. The following terms, whenever used herein, shall have the following meanings for all purposes of this Agreement.

"<u>Action</u>" means any audit, claim, demand, grievance, unfair labor practice charge, investigation, notice of violation, litigation, lawsuit, arbitration, mediation, subpoena, or other legal proceeding, whether civil, criminal, administrative, regulatory, or otherwise, in law or in equity.

"<u>Adjusted 2025 Revenue</u>" has the meaning set forth in <u>Section 2.2(a)</u>.

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"<u>Affiliate</u>" means, with respect to any Person, any other Person that, directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person, and the term "<u>control</u>" (including the terms "<u>controlled by</u>" and "<u>under common</u> <u>control with</u>") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities, by contract or otherwise.

"<u>Agreement</u>" has the meaning set forth in the Preamble.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday, or other day on which banking institutions in the State of New York are authorized or required by Law or Order to close.

"<u>Contract</u>" means any contract, indenture, note, bond, lease, deed, mortgage, license, commitment, or other legally binding agreement, whether written or oral.

"<u>Current Assets</u>" means the Company's current assets, including the accounts that make up the accounts receivable, inventory, cash and all other current asset accounts.

"<u>Current Liabilities</u>" means the accounts related to accounts payable, axes payable, accrued expenses, deferred revenue, and all other current liabilities accounts.

"<u>Disclosure Schedule</u>" has the meaning set forth in <u>Article 4</u>.

"<u>Encumbrance</u>" means any and all liens, claims, charges, mortgages, options, pledges, rights of first offer or refusal, security interests, hypothecations, easements, rights-of-way, zoning restrictions, encroachments, defects or irregularities in title, community property interests, or other encumbrances or restrictions of any kind, in respect of any property or asset, including any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

"<u>Equitable Exceptions</u>" has the meaning set forth in <u>Section 4.2(a)</u>.

"<u>Equity Interests</u>" means (a) any partnership interests, (b) any membership interests or units, (c) any shares of capital stock, (d) any other interest or participation that confers on a Person the right to receive a unit of the profits and losses of, or distribution of assets of, the issuing entity, (e) any rights, subscriptions, calls, warrants, options, or commitments of any kind or character relating to, or entitling any Person or entity to purchase or otherwise acquire membership interests or units, capital stock, or any other equity securities, (f) any securities convertible into or exercisable or exchangeable for partnership interests, membership interests or units, capital stock, or any other equity securities, (g) restricted stock units, profits interests, profit participation, stock appreciation rights, phantom stock, or (h) any other interest classified as an equity security of a Person.

"<u>Existing Members</u>" has the meaning set forth in <u>Section 6.5</u>.

"<u>Governmental Authority</u>" means any nation or government, any state, province, or other political subdivision thereof, or any government authority, agency, department, board, tribunal, commission or instrumentality of the United States of America, any foreign government, any state of the United States of America, or any municipality or other political subdivision thereof, and any court, tribunal or arbitrator(s) of competent jurisdiction, and any self-regulatory organization.

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"<u>Governmental Authorizations</u>" means any permit, license, franchise, tariff, consent, approval, or authorization by or of, or declaration or notice to or filing with, any Governmental Authority.

"Joinder Agreement" means a Joinder Agreement substantially in the form attached hereto as Exhibit A.

"<u>KingsCrowd Warrant</u>" means a warrant exercisable for one million (1,000,000) shares of the Class A Common Stock of Purchaser at an exercise price of one dollar and twenty cents ($1.20) per share, such warrant exercisable until January 31, 2030) in the form of Exhibit B hereto.

"<u>Law</u>" means any federal, state, local or foreign law, statute, code, ordinance, tariff, treaty, directive (to the extent having the force of law), Order, rule, or regulation.

"<u>LLCA</u>" has the meaning set forth in the Preamble.

"<u>Material Adverse Effect</u>" means any event, act, change, effect, circumstance, state of facts, or development (a "<u>Change</u>") that has, or would reasonably be expected to have, individually or in the aggregate with any other Change, a material and adverse effect on the business, financial condition, assets, prospects, or results of operations of the Company or on the ability of the Company to consummate the transactions contemplated hereby on a timely basis; <u>provided</u>, <u>however</u>, that none of the following shall be deemed (either alone or in combination) to constitute, and none of the following shall be taken into account in determining whether there has been or may be, a Material Adverse Effect: (a) any Change affecting the United States of America's or foreign economies' securities or financial, banking, or credit markets (including changes in interest or exchange rates) or geopolitical conditions in general; (b) any Change that generally affects any industry in which the Company operates; (c) any Change that results from any action taken (or failure to take any action) by the Company as required by or in compliance with this Agreement or with the prior, written consent of or at the prior, written request of the Purchaser; (d) any Change that results from a change in applicable Law or accounting rules; (e) the failure of the Company to meet any of its internal projections (it being understood that the facts or occurrences giving rise to such failure may be taken into account in determining whether there has been a Material Adverse Effect to the extent permitted by this Agreement); (f) any Change that results from natural disasters or acts of nature, hostilities, acts of war, sabotage, terrorism, or military actions, or any escalation or material worsening of any such hostilities, acts of war, sabotage, terrorism, or military actions; (g) any Change resulting from the announcement of this Agreement or the consummation of the transactions contemplated by this Agreement; (h) any breach by the Purchaser of its obligations under this Agreement, or (i) any epidemic, plague, pandemic, or other outbreak of illness or public health event, including, without limitation, the coronavirus disease known as COVID-19, except, in the case of each of clauses (a), (b), and (i), above, to the extent any such Change has had a disproportionate effect on the business of the Company compared to other participants in the industries in which Company conducts its business.

"<u>Net Working Capital</u>" of the Company means Current Assets of the Company minus Current Liabilities of the Company, adjusted for any prepayment of accounts payable for future goods or services.

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"<u>Option</u>" has the meaning set forth in the Preamble.

"<u>Option Closing</u>" has the meaning set forth in <u>Section 2.2(a).</u>

"<u>Option Closing Date</u>" has the meaning set forth in <u>Section 3.2</u>.

"<u>Option Expiration Date</u>" has the meaning set forth in <u>Section 2.2(b).</u>

"<u>Option Payment Amount</u>" has the meaning set forth in <u>Section 2.2(a)</u>.

"<u>Option Statement</u>" has the meaning set forth in <u>Section 2.2(b)</u>.

"<u>Option Units</u>" has the meaning set forth in the Preamble.

"<u>Order</u>" means any order, injunction, judgment, decree, ruling, writ, assessment, or award of a Governmental Authority.

"<u>Person</u>" means any individual, corporation (including any not for profit corporation), general or limited partnership, limited liability partnership, joint venture, estate, trust, firm, company (including any limited liability company or joint stock company), association, organization, entity, or Governmental Authority.

"<u>Representatives</u>" means, with respect to any Person, any director, manager, officer, agent, employee, general partner, member, stockholder, advisor, accountant, financing source or other representative of such Person.

"<u>Subscription Closing</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Subscription Closing Date</u>" has the meaning set forth in <u>Section 3.1</u>.

"<u>Subscription Payment Amount</u>" has the meaning set forth in <u>Section 2.1</u>.

"<u>Subscription Units</u>" has the meaning set forth in the Preamble.

<u>Section 1.2</u> <u>Interpretive Provisions</u>. Unless the express context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the words "hereof," "herein" and "hereunder" and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the terms "Dollars" and "$" mean United States Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) references herein to a specific Section, Subsection, Recital, Schedule, or Exhibit shall refer, respectively, to Sections, Subsections, Recitals, Schedules, or Exhibits of this Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) wherever the word "include," "includes," or "including" is used in this Agreement, it shall be deemed to be followed by the words "without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) references herein to any gender shall include each other gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) references herein to any Person shall include such Person's heirs, executors, personal representatives, administrators, successors, and assigns; <u>provided</u>, <u>however</u>, that nothing contained in this clause (g) is intended to authorize any assignment or transfer not otherwise permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) references herein to a Person in a particular capacity or capacities shall exclude such Person in any other capacity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) references herein to any Contract (including this Agreement) mean such Contract as amended, supplemented, or modified from time to time in accordance with the terms thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) with respect to the determination of any period of time, the word "from" means "from and including" and the words "to" and "until" each means "to but excluding";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) references herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented, or superseded in whole or in part, and in effect from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) if the last day for the giving of any notice or the performance of any act required or permitted under this Agreement is a day that is not a Business Day, then the time for the giving of such notice or the performance of such action shall be extended to the next succeeding Business Day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the word "or" is not exclusive; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) references herein to any Law shall be deemed also to refer to all rules and regulations promulgated thereunder.

The parties acknowledge and agree that (i) each party and its counsel reviewed and negotiated the terms and provisions of this Agreement and have contributed to its revision, (ii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall not be employed in the interpretation of this Agreement, and (iii) the terms and provisions of this Agreement shall be construed fairly as to all parties, regardless of which party was generally responsible for the preparation of this Agreement.

**ARTICLE 2**

**THE SUBSCRIPTION ACQUISITION AND THE OPTION ACQUISITION**

<u>Section 2.1</u> <u>The Subscription Acquisition</u>. On the terms and subject to the conditions set forth in this Agreement, at the Subscription Closing, the Purchaser will acquire the Subscription Units from the Company in exchange for the payment by the Purchaser of two hundred and fifty thousand dollars ($250,000), payable in immediately available funds (the "***Subscription Payment Amount***") and the delivery of the KingsCrowd Warrant.

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<u>Section 2.2</u> <u>The Option Closing.</u> On the terms and subject to the conditions set forth in this Agreement, at the closing of the Option exercise (the "<u>Option Closing</u>"), the Purchaser will acquire the Option Units from the Company in exchange for the Option Payment Amount, payable in immediately available funds. The "***Option Payment Amount***" shall be an amount equal to 3.5 times Adjusted 2025 Revenue. "***Adjusted 2025 Revenue***" shall be the total revenue of the Company as reported in the books of the Company for the fiscal year ended December 31, 2025, adjusted to give pro rated credit for any annual Contract entered into after January 1, 2025, as determined by those holders of Class A Units who were holders immediately prior to the date hereof, acting in good faith. For illustrative purposes only, if an annual Contract is entered into on July 1, 2025, which requires payment of $100,000 for the succeeding 12-month period, six months of such revenue, or $50,000, shall be added to the 2025 revenue amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No later than March 1, 2026, the Company shall deliver to the Purchaser a statement certified by the Chief Executive Officer of the Company setting forth the Adjusted 2025 Revenue and the Option Payment Amount (the "***Option Statement***"). No later than sixty (60) days following its receipt of the Option Statement (the "***Option Expiration Date***"), the Purchaser shall elect to notify the Company in writing of its determination to exercise the Option and complete the Option Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event (i) the Purchaser elects in writing not to exercise the Option or does not exercise the Option prior to the Option Expiration Date or (ii) the Purchaser or any of its creditors files at any time for protection of the Purchaser under federal or state bankruptcy Laws or the Purchaser defaults on the payment of any indebtedness in the amount greater than $25,000 the Company shall have the right to repurchase the Subscription Units from the Company (or any assignee of the Units) in exchange for payment of one dollar ($1.00). Such repurchase transaction shall take place within five (5) Business Days following the earlier to occur of (A) the date on which the Purchaser submits its election not to exercise the Option; (B) the Option Expiration Date or (C) the date of the occurrence of an event under clause (ii) above.

<u>Section 2.3</u> <u>Adjustments.</u> Without limiting the other provisions of this Agreement, if at any time during the period between the date of this Agreement and the Option Closing Date, any change in the outstanding Units of the Company shall occur, including by reason of any reclassification, recapitalization, unit split (including reverse unit split), or combination, exchange, or readjustment of Units, or any unit dividend or distribution paid in Units, the issuance of the Class A Units at the Option Closing pursuant to this Agreement shall be appropriately adjusted to reflect such change.

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**ARTICLE 3** 

**THE CLOSING**

<u>Section 3.1</u> <u>Subscription Closing Date</u>. Subject to the terms and conditions of this Agreement, the consummation of the Subscription Acquisition (the <sup>"</sup><u>Subscription Closing</u>") shall take place on the date hereof (the "***Subscription Closing Date***") by the electronic exchange of documents.

<u>Section 3.2</u> <u>Option Closing Date.</u> Subject to the terms and conditions of this Agreement, the Option Closing shall take place on the second (2nd) Business Day after the date that the conditions set forth in <u>Articles 7 and 8</u> (other than those conditions which, by their terms, are to be satisfied or waived at the Option Closing, but subject to the satisfaction or waiver of such conditions) shall have been satisfied or waived by the party entitled to waive the same, or at such other time and date that the Company and the Purchaser may agree in writing. The Option Closing shall take place by the electronic exchange of documents. The date upon which the Option Closing occurs is referred to herein as the "<u>Option Closing Date</u>."

<u>Section 3.3</u> <u>Closing Deliverables</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Subscription Closing, the Company shall deliver, or cause to be delivered, to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated as of the Subscription Closing Date and signed by a Manager of the Company, certifying that (A) attached thereto are true and complete copies of all resolutions adopted by the Company's Managers authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby, and (B) all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Such other documents or instruments as the Purchaser reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Subscription Closing the Purchaser shall deliver, or cause to be delivered to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Joinder Agreement duly executed on behalf of the Purchaser reflecting the admission of the Purchaser as a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate, dated as of the Subscription Closing Date and signed by a duly authorized officer of Purchaser, certifying that (A) attached thereto are true and complete copies of all resolutions adopted by the board of directors of the Purchaser authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, and (B) all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Subscription Payment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The KingsCrowd Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Such other documents or instruments as the Company reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the Option Closing, the Company shall deliver, or cause to be delivered, to the Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate, dated as of the Option Closing Date and signed by a Manager of the Company, certifying that (A) each of the conditions set forth in <u>Section 8.1</u> and <u>Section 8.2</u> have been satisfied, (B) attached thereto are true and complete copies of all resolutions adopted by the Company's Managers authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby and thereby, and (C) all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such other documents or instruments as the Purchaser reasonably requests and are reasonably necessary to consummate the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At the Option Closing, the Purchaser shall deliver, or cause to be delivered to the Company, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Option Payment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certificate, dated as of the Closing Date and signed by a duly authorized officer of Purchaser, certifying that (A) each of the conditions set forth in <u>Section 7.1</u> and <u>Section 7.2</u> have been satisfied, (B) attached thereto are true and complete copies of all resolutions adopted by the board of directors of the Purchaser authorizing the execution, delivery, and performance of this Agreement and the consummation of the transactions contemplated hereby, and (C) all such resolutions are in full force and effect and are all the resolutions adopted in connection with the transactions contemplated hereby and thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) A duly executed amended and restated limited liability company agreement of the Company reflecting the redemption of the membership interests of all Members other than the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such other documents or instruments as the Company may reasonably request and are reasonably necessary to consummate the transactions contemplated by this Agreement.

**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES OF THE COMPANY**

Except as set forth in the certain term sheets, related documents and financial statements, if any, or in the disclosure schedule attached hereto (the "***Disclosure Schedule***") which exceptions shall be deemed to be a part of the representations and warranties made hereunder, the Company hereby represents and warrants to the Purchaser as of the date hereof and as of the Option Closing Date, as follows:

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<u> </u>

<u>Section 4.1</u> <u>Organization and Power</u>. The Company is a limited liability company duly organized, validly existing and in good standing under the Laws of the State of Delaware. The Company has all requisite organizational and limited liability power and authority necessary to own, lease or operate its properties and other assets that it purports to own, lease, or operate and to carry on its businesses as now conducted and as has been conducted in the past three years. The Company is qualified to do business and is in good standing in each jurisdiction in which the failure to be so qualified, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.

<u>Section 4.2</u> <u>Authority; Binding Obligation; Manager Approval</u>. The Company has all requisite power and authority to execute and deliver this Agreement and the other agreements contemplated hereby and thereby and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance by the Company of this Agreement and the other agreements contemplated hereby and thereby and the consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all limited liability action on the Company's part and no other limited liability company proceedings on the Company's part are necessary to authorize the execution, delivery or performance of this Agreement or other agreements contemplated hereby and thereby or to consummate the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by the Company and, assuming that this Agreement is a valid and binding obligation of the Purchaser, this Agreement constitutes a legal, valid and binding obligation of each of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws from time to time in effect affecting generally the enforcement of creditors' rights and remedies; and (ii) general principles of equity (collectively, the "<u>Equitable Exceptions</u>").

<u>Section 4.3</u> <u>Consents; No Conflict or Violation</u>. The execution, delivery, and performance of this Agreement by the Company and the consummation of the transactions contemplated hereby will not violate, conflict with, or result in a breach or violation of the organizational documents or operating agreement of the Company or any of the terms or provisions of, or constitute a default or cause an acceleration of any obligation under, or result in the imposition or creation of (or the obligation to create or impose) an Encumbrance with respect to the organizational documents or operating agreement (or similar organizational and governance documents) of the Company, any bond, note, debenture, or other evidence of indebtedness or any indenture, mortgage, deed of trust, or other agreement or instrument to which the Company is a party or by which it is bound, or to which any properties of the Company are or may be subject, or contravene any Order of any court or Governmental Authority having jurisdiction over the Company or any of its properties, or violate or conflict with any statute, rule or regulation, or administrative or court decree applicable to the Company or any of its properties, except for any such violations, conflicts, breaches, or defaults which, singularly or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect.

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<u> </u>

<u>Section 4.4</u> <u>Capitalization</u>. <u>Section 4.4</u> of the Disclosure Schedule sets forth the issued and outstanding Units as of the date of hereof. Such Units constitute the only issued and outstanding Equity Interests of the Company. All of such Units (i) have been duly authorized, are validly issued, fully paid, and non-assessable, (ii) are not subject to, and were not issued in violation of, any preemptive right, (iii) are free and clear of all Encumbrances (other than restrictions on transfer arising under federal or state securities Laws), and (iv) were issued in compliance with applicable Law. Except for such Units, the Company has no other outstanding Equity Interests. There are no authorized or outstanding rights, subscriptions, warrants, or options to purchase or otherwise acquire any Equity Interests of the Company or securities or obligations of any kind convertible into or exchangeable for any Equity Interests of the Company or any outstanding or authorized stock appreciation, dividend equivalent, phantom stock, profit participation, or other similar rights with respect to the Company or any of its Equity Interests. There is no commitment by the Company to issue, sell, or grant any Equity Interests or to repurchase or redeem any Equity Interests of the Company. <u>Section 4.4</u> of the Disclosure Schedule sets forth as of the date hereof the name of each Person that is a registered or beneficial owner of any of such Units and the number of such Units owned by such Person.

<u>Section 4.5</u> <u>No Authorization or Consents Required.</u> No Governmental Authorizations will be required to be obtained or made by the Company in connection with the execution, delivery, and performance by the Company of this Agreement and the other agreements contemplated hereby and the consummation by the Company of the transactions contemplated hereby or thereby.

<u>Section 4.6</u> <u>Brokers</u>. No broker, finder, or investment banker is entitled to any brokerage commissions, finders' fees, or other fee, commission, or remuneration in connection with the transactions contemplated by this Agreement based on any arrangement or agreement made by or on behalf of the Company.

<u>Section 4.7</u> <u>No General Solicitation.</u> Neither the Company nor any of its officers, directors, employees, agents, stockholders or partners have either directly or indirectly, including through a broker or finder solicited offers for or offered or sold the Subscription Units by means of any form of general solicitation or general advertising within the meaning of Rule 502 of Regulation D under the Securities Act of 1933, as amended (the "***Securities Act")*** or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act. The Purchaser acknowledges that neither the Company nor any other person offered to sell the Subscription Units to it by means of any form of general solicitation or advertising within the meaning of Rule 502 of Regulation D under the Securities Act or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

**ARTICLE 5**

**REPRESENTATIONS AND WARRANTIES OF THE PURCHASER**

The Purchaser represents and warrants to the Company, as of the date hereof and as of the Option Closing Date, as follows:

<u>Section 5.1</u> <u>Organization</u>. The Purchaser is a corporation duly organized, validly existing and in good standing under the Laws of the State of Delaware. The Purchaser has all requisite organizational and limited liability power and authority necessary to own, lease or operate its properties and other assets that it purports to own, lease, or operate and to carry on its businesses as now conducted and as has been conducted in the past three years. The Purchaser is qualified to do business and is in good standing in each jurisdiction in which the failure to be so qualified, individually or in the aggregate, would reasonably be expected to have a material adverse effect on the Purchaser.

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<u>Section 5.2</u> <u>Authority; Binding Obligation</u>. The Purchaser has all requisite power and authority to execute and deliver this Agreement and the other agreements contemplated hereby and to perform its obligations hereunder and thereunder and to consummate the transactions contemplated hereby and thereby and no corporate proceedings on its respective part, other than as expressly contemplated by this Agreement, are necessary to authorize the execution, delivery, or performance of this Agreement and the agreements contemplated hereby and to consummate the transactions contemplated hereby and thereby. This Agreement has been duly executed and delivered by the Purchaser and (assuming due authorization, execution, and delivery by the Company) this Agreement constitutes a valid and binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by the Equitable Exceptions.

<u>Section 5.3</u> <u>No Defaults or Conflicts</u>. The execution, delivery, and performance of this Agreement by the Purchaser and the other documents contemplated hereby and the consummation of the transactions contemplated hereby and thereby will not violate, conflict with, or result in a breach or violation of the organizational documents of the Purchaser or any of the terms or provisions of, or constitute a default or cause an acceleration of any obligation under, or result in the imposition or creation of (or the obligation to create or impose) an Encumbrance with respect to the organizational documents of the Purchaser, any bond, note, debenture, or other evidence of indebtedness or any indenture, mortgage, deed of trust, or other agreement or instrument to which the Purchaser is a party or by which it is bound, or to which any properties of the Purchaser are or may be subject, or contravene any Order of any court or Governmental Authority having jurisdiction over the Purchaser or any of its properties, or violate or conflict with any statute, rule or regulation, or administrative or court decree applicable to the Purchaser or any of its properties, except for any such violations, conflicts, breaches, or defaults which, singularly or in the aggregate, would not reasonably be expected to result in a material adverse effect on the Purchaser.

<u>Section 5.4</u> <u>No Authorization or Consents Required</u>. No Governmental Authorizations will be required to be obtained or made by the Purchaser in connection with the execution, delivery, and performance by Purchaser of this Agreement and the other agreements contemplated hereby and the consummation by the Purchaser of the transactions contemplated hereby or thereby.

<u>Section 5.5</u> <u>Brokers</u>. No broker, finder, or similar intermediary is entitled to any broker's, finder's, or similar fee or other commission in connection with this Agreement or the transactions contemplated hereby based on any agreement or arrangement made by or on behalf the Purchaser.

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<u>Section 5.6</u> <u>Capitalization.</u> Section 5.6 of the Disclosure Schedule sets forth the issued and outstanding capital stock of the Purchaser as of the date of hereof on a fully diluted basis and as of the Option Closing Date. Such capital constitutes the only issued and outstanding Equity Interests of the Purchaser. All of such capital stock has been, and the stock issuable upon exercise of the KingsCrowd Warrant upon issuance (i) be duly authorized, validly issued, fully paid, and non-assessable, (ii) not be subject to, and not issued in violation of, any preemptive right, (iii) free and clear of all Encumbrances (other than restrictions on transfer arising under federal or state securities Laws), and (iv) issued in compliance with applicable Law. Except for such shares of capital stock, the Purchaser has no other outstanding Equity Interests. There are no authorized or outstanding rights, subscriptions, warrants, or options to purchase or otherwise acquire any Equity Interests of the Purchaser or securities or obligations of any kind convertible into or exchangeable for any Equity Interests of the Purchaser or any outstanding or authorized stock appreciation, dividend equivalent, phantom stock, profit participation, or other similar rights with respect to the Purchaser or any of its Equity Interests. There is no commitment by the Purchaser to issue, sell, or grant any Equity Interests or to repurchase or redeem any Equity Interests of the Purchaser. <u>Section</u> <u>5.6</u> of the Disclosure Schedule sets forth as of the date hereof the name of each Person that is a registered or beneficial owner of any of such Units and the number of such shares of capital stock owned by such Person.

<u>Section 5.7</u> <u>Reliance</u>. The Purchaser acknowledges that it and its Representatives have been permitted full and complete access to the books and records, facilities, equipment, tax returns, contracts, insurance policies (or summaries thereof) and other properties and assets of the Company that they and their respective Representatives have desired or requested to see or review, and that they and their respective Representatives have had a full opportunity to meet with the officers and employees of the Company to discuss the business of the Company. The Purchaser acknowledges that neither the Company nor any other Person has made any representation or warranty, express or implied, as to the accuracy or completeness of any information that the Company furnished or made available to the Purchaser and its Representatives, except for representations and warranties by the Company expressly set forth in <u>Article 4</u> (including the related portions of the Disclosure Schedule). Neither the Company nor any other Person (including any Affiliate of the Company or their respective Representatives) shall have or be subject to any liability to the Purchaser, or any other Person (including in contract or tort, at law, or in equity, under federal or state securities Laws or otherwise) resulting from the use of any information, documents, or material made available to the Company (or any omissions therefrom) in any "data rooms," management presentations, due diligence, or in any other form in expectation of the transactions contemplated hereby. The Purchaser acknowledges that the Purchaser shall acquire the Subscription Units and, if the Option Closing occurs, the Option Units without any representation or warranty as to merchantability or fitness for any particular purpose of the Company's assets, in an "as is" condition and on a "where is" basis, except that the foregoing shall not limit any of the express representations and warranties of the Company set forth in this Agreement. The Purchaser acknowledges that, except for the representations and warranties of the Company contained in <u>Article 4</u> (including the related portions of the Disclosure Schedule), neither the Company nor any other Person has made, and the Purchaser has not relied on, any other express or implied representation or warranty by or on behalf of, or with respect to, the Company.

<u>Section 5.8</u> <u>No General Solicitation.</u> The Purchaser acknowledges that neither the Company nor any other person offered to sell the Subscription Units to it by means of any form of general solicitation or advertising within the meaning of Rule 502 of Regulation D under the Securities Act or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act.

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<u>Section 5.9</u> <u>Accredited Investor.</u> The Purchaser is an "accredited investor" within the meaning of Rule 501 of Regulation D promulgated under the Securities Act.. The Purchaser agrees to furnish any additional information requested by the Company to assure compliance with applicable U.S. federal and state securities Laws in connection with the purchase and sale of the Subscription Units and the Option Units.

<u>Section 5.10</u> <u>Investment Experience.</u> The Purchaser is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

<u>Section 5.11</u> <u>Restricted Securities.</u> The Purchaser acknowledges that neither the Subscription Units nor the Option Units have been, or will be, registered under the Securities Act, or under any state securities Laws, and is being sold in reliance upon federal and state exemptions for transactions not involving any public offering. Further, the Purchaser is acquiring the Subscription Units and, if the Option Closing occurs, the Option Units solely for the Purchaser's own investment and not with the intent for future sale or distribution. The Purchaser is a knowledgeable investor with experience in business and financial matters and has received sufficient information concerning the Company and the Units in order for the Purchaser to evaluate the merits and risks inherent in owning the Units.

<u>Section 5.12</u> <u>No Public Market.</u> The Purchaser understands that no public market now exists for the Units and that the Company has made no assurances that a public market will ever exist for the Units.

<u>Section 5.13</u> <u>Residence.</u> The Purchaser is a corporation whose principal place of business is located in the state identified in the address shown on the Purchaser's signature page hereto.

<u>Section 5.14</u> <u>Reliance/Tax Advice.</u> The Purchaser has, at its sole expense and to the extent it deems necessary or appropriate, consulted with its own tax advisors to determine the tax consequences associated with the transactions contemplated hereby.

**ARTICLE 6** 

**COVENANTS**

<u>Section 6.1</u> <u>Filings, Authorizations, and Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions herein, each party hereto agrees to use commercially reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done as promptly as practicable, all things necessary, proper, and advisable under applicable Law to consummate and make effective as promptly as practicable the transactions contemplated under this Agreement and the documents related hereto. Subject to appropriate confidentiality protections, each party hereto shall furnish to the other parties such necessary information and reasonable assistance as such other party may reasonably request in connection with the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties shall cooperate with one another in good faith to prepare all necessary documentation to effect promptly all necessary filings, to give all notices and to obtain all consents, waivers, and approvals necessary to consummate the transactions contemplated by this Agreement. Each such party shall promptly inform the other parties hereto of any oral communication with, and provide copies of written communications with any Governmental Authority regarding any such filings or any such transaction.

<u>Section 6.2</u> <u>Further Assurances</u>. From the date hereof until the earlier of the Option Closing Date, each of the parties hereto shall execute such documents and perform such further acts as may be reasonably required to carry out the provisions hereof and the actions contemplated hereby. Each party shall, on or prior to the Option Closing Date, use its reasonable best efforts to fulfill or obtain the fulfillment of the conditions precedent to the consummation of the transactions contemplated hereby, including the execution and delivery of any documents, certificates, instruments, or other papers that are reasonably required for the consummation of the transactions contemplated by this Agreement and the documents related hereto .

<u>Section 6.3</u> <u>Conduct of Business of the Company ost-Subscription Closing</u>. The Purchaser agrees that the current management and officers of the Company, including, without limitation, Michael Knox, shall continue to be informed of operating strategies, new hires, regular financial reporting and regular business updates as would be appropriate to report to a board of directors. No current employee of the Company may be terminated without the written approval of Michael Knox with the sole objective being a smooth transition given the small size of the management team. No action shall be taken by the Company after the Subscription Closing Date without the approval of Michael Knox, including, without limitation, the consolidation of the Company's operations with those of the Purchaser, which in the reasonable judgment of Mr. Knox would be likely to have a negative impact on the maximization of Adjusted 2025 Revenue. revenue calculation related to the Option Purchase price. . The Purchaser further agree that, after the Subscription Closing and notwithstanding that the Purchaser shall own a majority of the Units, the Purchaser shall not be entitled to initiate any action in respect of, or vote its Units or have any consent rights in connection with, any action by the Company related to the Option Closing.

<u>Section 6.4</u> <u>Distribution of KingsCrowd Warrant.</u> No later than immediately prior to the Option Closing, the Company shall distribute to all Class A and Class B Members who held their Units immediately prior the Subscription Closing and remain Members as of the date of such distribution (the "***Existing Members***") the KingsCrowd Warrant pro rata based on the number of Units so held. The Purchaser shall take any action requested by a majority in interest of such Unitholders to effectuate such distribution, including, without limitation, issuing substitute options in the names of each such Member and in such pro rata amounts. For the avoidance of doubt, the Purchaser shall not be entitled to any such distribution notwithstanding its ownership of Class A Units prior to the Option Closing.

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<u>Section 6.5</u> <u>Distribution of Cash</u>. (a) Immediately prior to the Option Closing the Company shall distribute to all Class A and Class B Members at such time in accordance with the terms of the LLCA in effect at such time cash of the Company in an amount equal to the excess of the Company's Net Working Capital (as of the close of business on the date immediately prior to the Option Closing (as determined in good faith by those Class A Members at the time of such distribution who were Class A Members immediately prior to the Subscription Closing)) over $100,000; provided, however, that the Company shall first have repaid any and all indebtedness owed to the Existing Members and their Affiliates. From the date of the Subscription Closing through the date of determination of the cash distribution under this Section 6.5(a), the Company shall manage its working capital in the ordinary course of business as managed prior to the Subscription Closing. (b) At and in connection with the Option Closing the Company shall distribute the Option Payment Amount to all Members other than the Purchaser in accordance with terms of the LLCA as in effect at such time in full redemption of such Members' Units and such Members shall thereafter cease to be members of the Company.

**ARTICLE 7**

**CONDITIONS TO THE OBLIGATIONS OF THE PURCHASER RELATED TO THE OPTION CLOSING**

The obligations of the Purchaser under this Agreement to effect the Option Closing shall be subject to the satisfaction, at or prior to the Option Closing, of all of the following conditions, any one or more of which may be waived by the Purchaser:

<u>Section 7.1</u> <u>Representations and Warranties Accurate.</u> The representations and warranties of the Company contained in Article 4 (without giving effect to any materiality qualification therein) shall be true and correct in all respects on and as of the date hereof and on and as of the Option Closing Date as though made on and as of the Option Closing Date (except for representations and warranties expressly stated to relate to a specific date, in which case such representations and warranties shall be true and correct in all material respects on such earlier date).

<u>Section 7.2</u> <u>No Legal Prohibition or Action</u>. On the Option Closing Date, there shall exist no (a) Order issued by any Governmental Authority or court of competent jurisdiction that prohibits the consummation of the transactions contemplated under this Agreement or (b) pending Action against the Purchaser or the Company that attempts to enjoin the consummation of the transactions contemplated under this Agreement.

<u>Section 7.3</u> <u>Closing Deliveries</u>. The Company shall have delivered each of the deliverables set forth in <u>Section 3.2(c)</u>.

<u>Section 7.4</u> <u>Frustration of Closing Conditions</u>. The Purchaser may not rely on the failure of any condition set forth in this <u>Article 7</u> to be satisfied if such failure was materially contributed to by the failure of the Purchaser to use commercially reasonable efforts to cause the Closing to occur, as required by and subject to <u>Section 6.1 or 6.2</u>.

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**ARTICLE 8**

**CONDITIONS TO OBLIGATIONS OF THE COMPANY**

The obligation of the Company to effect the Option Closing shall be subject to the satisfaction, at or prior to the Option Closing, of all of the following conditions, any one or more of which may be waived by the Company:

<u>Section 8.1</u> <u>Representations and Warranties Accurate</u>. The representations and warranties of the Purchaser contained in <u>Article 5</u> (without giving effect to any materiality qualification therein) shall be true and correct in all respects on and as of the date hereof and on and as of the Option Closing Date as though made on and as of the Option Closing Date (except for representations and warranties expressly stated to relate to a specific date, in which case such representations and warranties shall be true and correct in all material respects on such earlier date).

<u>Section 8.2</u> <u>Performance</u>. The Purchaser shall have performed and complied in all material respects with all agreements and covenants required by this Agreement to be performed and complied with by them prior to or on the Option Closing Date.

<u>Section 8.3</u> <u>Legal Prohibition</u>. On the Option Closing Date, there shall exist no (a) Order issued by any Governmental Authority or court of competent jurisdiction that prohibits the consummation of the transactions contemplated under this Agreement or (b) pending Action against the Purchaser or the Company that attempts to enjoin the consummation of the transactions contemplated under this Agreement.

<u>Section 8.4</u> <u>Closing Deliveries</u>. The Purchaser shall have delivered each of the closing deliverables set forth in <u>Section 3.2(d)</u>.

<u>Section 8.5</u> <u>Frustration of Closing Conditions</u>. The Company may not rely on the failure of any condition set forth in this <u>Article 8</u> to be satisfied if such failure was materially contributed to by the failure of the Company to use commercially reasonable efforts to cause the Option Closing to occur, as required by and subject to <u>Section 6.1 and</u> <u>6.2</u>.

**ARTICLE 9** 

**MISCELLANEOUS**

<u>Section 9.1</u> <u>Expenses</u>. Except as otherwise expressly provided herein, all costs and expenses, including fees and disbursements of counsel, financial advisors, and accountants, incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Subscription Closing or the Option Closing shall have occurred.

<u>Section 9.2</u> <u>Amendment</u>. This Agreement may not be amended except by an instrument in writing signed on behalf of the Company and the Purchaser.

EXECUTION

VERSION

<u>Section 9.3</u> <u>Entire Agreement</u>. This Agreement, including the Disclosure Schedules and Exhibits attached hereto and which are deemed for all purposes to be part of this Agreement, contains all of the terms, conditions, and representations and warranties agreed upon or made by the parties relating to the subject matter of this Agreement and the business and operations of the Company and supersedes all prior and contemporaneous agreements, negotiations, correspondence, undertakings, and communications of the parties or their Representatives, oral or written, respecting such subject matter. No representation, warranty, inducement, promise, understanding, or condition not set forth in this Agreement has been made or relied upon by any of the parties. The parties have voluntarily agreed to define their rights, liabilities, and obligations respecting the subject matter hereof exclusively in contract pursuant to the express terms and provisions of this Agreement and the parties expressly disclaim that they are owed any duties or are entitled to any remedies not expressly set forth in this Agreement. Furthermore, the parties each hereby acknowledge that this Agreement embodies the justifiable expectations of sophisticated parties derived from arm's**-** length negotiations; the parties specifically acknowledge that no party has any special relationship with another party that would justify any expectation beyond that of ordinary parties in an arm's-length transaction.

<u>Section 9.4</u> <u>Headings</u>. The headings contained in this Agreement are intended solely for convenience and shall not affect the rights of the parties to this Agreement.

<u>Section 9.5</u> <u>Notices</u>. Any notice or other communication required or permitted under this Agreement shall be deemed to have been duly given and made if (a) in writing and served by personal delivery upon the party for whom it is intended, (b) if delivered by facsimile or email with receipt confirmed, or (c) if delivered by courier service, return-receipt received to the party at the address set forth below, with copies sent to the Persons indicated:

If to the Company:

LawBot LLC

1150 Hungry Neck Blvd, C361, Mount Pleasant, SC 29464

Attn: Michael Knox

Email: mknox@goldridgeasset.com

With a mandatory copy to (which shall not constitute notice):

Ellenoff, Grossman & Schole, LLP

1345 Avenue of the Americas

New York, New York 10105

Attention: Douglas S. Ellenoff and Jonathan P. Cramer

 <u>Email:</u> <u>ellenoff@egsllp.com</u> <u>and</u> <u>jcramer@egsllp.com</u>

EXECUTION

VERSION

If to the Purchaser:

KingsCrowd Inc.

855 Boylston Street

Suite 1000

Boston, MA 02116

Attention: Chis Lustrino

Email: chris@kingscrowd.com

Such addresses may be changed, from time to time, by means of a notice given in the manner provided in this <u>Section 9.5</u>.

<u>Section 9.6</u> <u>Disclosure Schedules</u>. Any matter, information or item disclosed in any section or subsection of the Disclosure Schedules shall be deemed to have been disclosed for the corresponding section or subsection of this Agreement and any other section or subsection of this Agreement, if and only to the extent that it is readily apparent, based on the face of such disclosure, that it applies to such other section or subsection of this Agreement. The inclusion of any matter, information or item in the Disclosure Schedules shall not be deemed to constitute an admission of any liability by the Company or Purchaser, respectively, to any third party or otherwise imply that any such matter, information or item is material or creates a measure for materiality for the purposes of this Agreement.

<u>Section 9.7</u> <u>Waiver</u>. Waiver of any term or condition of this Agreement by any party shall only be effective if in writing and shall not be construed as a waiver of any subsequent breach or failure of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of any party hereto to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any right, power, or privilege under this Agreement.

<u>Section 9.8</u> <u>Binding Effect; Assignment</u>. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. No party to this Agreement may assign or delegate all or any portion of its rights, obligations, or liabilities under this Agreement without the prior written consent of the other parties to this Agreement (which consent shall not be unreasonably withheld, delayed, denied, or conditioned).

<u>Section 9.9</u> <u>No Third-party Beneficiary</u>. Nothing in this Agreement shall confer any rights, remedies, or claims upon any Person or entity not a party or a permitted assignee of a party to this Agreement, except the provisions of <u>Section 6.3</u> hereof may be enforced by the Managers of the Company as of immediately prior to the Subscription Closing Date.

EXECUTION

VERSION

<u>Section 9.10</u> <u>Counterparts</u>. This Agreement may be signed in any number of counterparts with the same effect as if the signatures to each counterpart were upon a single instrument, and all such counterparts together shall be deemed an original of this Agreement. Facsimile signatures or signatures received as a pdf attachment to electronic mail shall be treated as original signatures for all purposes of this Agreement.

<u>Section 9.11</u> <u>Governing Law</u>. This Agreement and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), shall be governed by and construed in accordance with the internal Laws of the State of Delaware, without giving effect to the conflict of laws principles thereof that might require the application of the Laws of another jurisdiction.

<u>Section 9.12</u> <u>Exclusive Jurisdiction; Consent to Service of Process; Attorneys' Fees</u>. All claims, actions, and proceedings (whether in contract or tort) based upon, arising out of or relating to this Agreement or the negotiation, execution, or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement) shall be heard and determined exclusively in the in the Chancery Courts of the State of Delaware located in the City of Wilmington, County of New Castle, and the U.S. District Court for the District of Delaware (and, in the case of appeals, appropriate appellate courts therefrom).

The parties hereto irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon *forum non conveniens*. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action, or proceeding in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. The consents to jurisdiction set forth in this <u>Section 9.12</u> shall not constitute general consents to service of process in the State of Delaware and shall have no effect for any purpose except as provided in this <u>Section 9.12</u> and shall not be deemed to confer rights on any Person other than the parties hereto. The parties hereto agree that a final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by applicable Law.

The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs.

EXECUTION

VERSION

<u>Section 9.13</u> <u>WAIVER OF JURY TRIAL</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE TRANSACTION DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, WHETHER ARISING IN CONTRACT OR IN TORT OR OTHERWISE. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF ANY PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <u>SECTION 9.13</u>.

<u>Section 9.14</u> <u>Severability</u>. If any term, provision, agreement, covenant, or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the terms, provisions, agreements, covenants, and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired, or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party hereto. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a reasonably acceptable manner so that the transactions contemplated hereby may be consummated as originally contemplated to the fullest extent possible.

[*Remainder of page intentionally left blank*]

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written.

---

| | |
|:---|:---|
| LAWBOT, LLC | LAWBOT, LLC |
| By: | ![](kings_ex516img4.jpg) |
|  | Name: Michael Knox |
|  | Title: Manager |
| KINGSCROWD, INC | KINGSCROWD, INC |
| By: | ![](kings_ex516img5.jpg) |
|  | Name: Chris Lustrino |
|  | Title: CEO |

---

## Ex1K-5

**EXHIBIT 5.17**

**STOCK PURCHASE AGREEMENT**

This Stock Purchase Agreement (the "Agreement") is entered into as of [Date], by and among **KingsCrowd Inc.**, a Delaware corporation with its principal office located in Boston, Massachusetts ("Purchaser"), **Crowd Diligence Inc.**, a Delaware corporation with its principal office located at 1150 Hungryneck Blvd, C361, Mount Pleasant, SC 29464 (the "Company"), and the Shareholders of Crowd Diligence Inc. listed on **Exhibit A** (the "Shareholders").

**RECITALS**

**WHEREAS**, Purchaser desires to acquire all of the issued and outstanding shares of the capital stock of the Company ("Company Stock") in exchange for shares of Purchaser and the assumption of certain liabilities under the terms and conditions set forth herein;

**WHEREAS**, the Shareholders of the Company desire to exchange their shares of Company Stock for shares the Class A common stock, par value $0.0001 per share ("Class A Stock"), of Purchaser under the terms and conditions set forth herein;

**WHEREAS**, the Company has one wholly-owned subsidiary, **SoCapital Inc.**, a Delaware corporation with no active operations or liabilities and one partially owned subsidiary, THESOCO LLC, a Delaware limited liability company with no active operations but filings are not up to date as discussed herein;

**WHEREAS**, the parties wish to effect the closing of the transaction on or about

**January 2, 2025** ("Closing Date"), subject to the conditions specified herein.

NOW, THEREFORE, in consideration of the mutual covenants, agreements, representations, and warranties contained in this Agreement, the parties agree as follows:

**ARTICLE I: PURCHASE AND SALE OF STOCK**

**1.1. Sale and Transfer of Shares**

Each Shareholder agrees to sell, transfer, and deliver to Purchaser, and Purchaser agrees to acquire, all issued and outstanding shares of Company Stock owned by such Shareholder in exchange for shares of Purchaser's Class A common stock.

**1.2. Purchase Price Common Stock**

· The purchase price shall consist solely of stock consideration. Each Crowd Diligence shareholder shall receive **0.25 shares** of Purchaser's Class A common stock for each share of Company Stock held.

· The total outstanding shares of Crowd Diligence as of the Effective Date is **3,753,848**, resulting in the issuance of **938,462 shares of Purchaser's common stock**.

**1.3. Purchase Price Preferred Stock**

· Simultaneous with the closing of the transaction, the Company's $222,685 of Lustro I EB (The "SPV"), a series of Wefunder SPV, LLC, a Delaware limited liability company (the "LLC") Convertible Notes shall convert into 222,685 of the Company's Series Seed Preferred Shares.

· The purchase price for the Series Seed Preferred shares shall consist solely of stock consideration. Each Crowd Diligence Series Seed Preferred shareholder shall receive **5.555 shares** of Purchaser's Class A common stock for each share of Series Seed Preferred Stock held.

· The total outstanding Series Seed Preferred shares of Crowd Diligence as of the Effective Date will be 222,685, resulting in the issuance of **1,237,015 shares of Purchaser's common stock**.

**ARTICLE II: REPRESENTATIONS AND WARRANTIES**

**2.1. Representations of the Company**

The Company represents and warrants that:

1. **Organization and Authority**: It is duly organized, validly existing, and in good standing under Delaware law.

2. **Financial Statements**: The financial statements provided to Purchaser are accurate and fairly represent the Company's financial condition as of [Date].

3. **No Litigation**: There are no claims, actions, suits, investigations, or proceedings pending or, to the Company's knowledge, threatened against the Company, its subsidiary, or their assets.

4. **Subsidiary**: The Company has one fully owned subsidiary, **SoCapital Inc.**, a Delaware corporation, which has no active operations or liabilities and one partially owned subsidiary, THESOCO LLC, a Delaware limited liability company. THESOCO has been dormant and proper filings and tax returns have not been completed. Purchaser agrees to take responsibility for these matters and any fees or penalties not to exceed $4,000.

5. **No Conflicts/Consents**: The execution, delivery, and performance of this Agreement and the consummation of the transactions do not:

o Violate any laws, regulations, or agreements binding upon the Company.

o Require the consent or approval of any third party.

6. **Intellectual Property**: The Company owns or has the legal right to use all intellectual property, including trademarks, copyrights, patents, trade secrets, and domain names necessary for the operation of its business. A complete list of intellectual property is attached in **Schedule 2.1(f)**. All such rights shall transfer to Purchaser at the Closing Date.

**2.2. Representations of the Shareholders**

The majority Shareholder hereby represents and warrants to the Company, severally, and not jointly, with respect only to such Shareholder, as of the date hereof, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Authority; Execution and Delivery.** Such Shareholder (a) has full power, authority and legal right and capacity to enter into and perform such Shareholder's obligations under this Agreement and (b) has taken all action necessary to authorize (i) the execution and delivery of this Agreement, (ii) the performance of its obligations hereunder and (iii) the consummation of the transactions contemplated hereby. This Agreement has been duly and validly authorized and approved, executed and delivered by such Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Binding Obligation.** This Agreement has been duly executed and delivered by such Shareholder and constitutes the legal, valid and binding obligation of such Shareholder, enforceable against such Shareholder in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency and other similar Laws affecting the enforcement of creditors' rights in general.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **No Violation.** Neither the execution or delivery by such Shareholder of this Agreement, nor the consummation or performance by such Shareholder of the transactions contemplated hereby will, directly or indirectly, (a) contravene, conflict with, or result in a violation of any provision of the organizational documents of such Shareholder (if such Shareholder is not a natural Person); (b) contravene, conflict with, constitute a default (or an event or condition which, with notice or lapse of time or both, would constitute a default) under, or result in the termination or acceleration of, any agreement or instrument to which such Shareholder is a party or by which the properties or assets of such Shareholder are bound; or (c) contravene, conflict with, result in any breach of, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, impair the rights of such Shareholder under, or alter the obligations of any Person under, or create in any Person the right to terminate, amend, accelerate or cancel, or require any notice, report or other filing (whether with a Governmental Authority or any other Person) pursuant to, or result in the creation of a Lien on any of the assets or properties of the Company under, any note, bond, mortgage, indenture, contract, license, permit, franchise or other instrument or obligation to which such Shareholder is a party or any of such Shareholder's assets and properties are bound or affected, except, in the case of clauses (b) or (c) for any such contraventions, conflicts, violations, or other occurrences as would not have a Material Adverse Effect on such Shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Ownership.** Such Shareholder owns, of record and beneficially, and has good, valid and indefeasible title to and the right to transfer to the shares of Company Stock pursuant to this Agreement, such Shareholder's shares of Company Stock are free and clear of any and all Liens. There are no options, rights, voting trusts, stockholder agreements or any other contracts or understandings to which such Shareholder is a party or by which such Shareholder or such Shareholder's shares of Company Stock are bound. As of the Closing Date, the Company will acquire good, valid and marketable title to such Shareholder's shares of Company Stock free and clear of any and all Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Litigation.** There is no pending Proceeding against such Shareholder that involves nterest or that challenges, or may have the effect of preventing, delaying or making illegal, or otherwise interfering with, the exchange of securities contemplated by this Agreement and, to the Knowledge of such Shareholder, no such Proceeding has been threatened, and no event or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Investment for Own Account.** Such Shareholder represents that it is acquiring the shares of Class A Stock for its own account for investment purposes only, and not with a view to, or for offer or sale in connection with, any distribution thereof, which would be in violation of the Securities Act or any applicable state securities Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Restrictions on Transfer.** Such Shareholder acknowledges that the shares of Class A Stock have not been registered under the Securities Act or the securities laws of any state and that the issuance of the shares of Class A Stock is being affected in reliance upon an exemption from the registration requirements of the Securities Act and may be transferred only upon registration of such shares of Class A Stock under the Securities Act and state securities laws or pursuant to an exemption from the registration requirements thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Legends.** Such Shareholder acknowledges and agrees that any certificates evidencing the shares of Class A Stock will bear the following legends or one that is substantially similar to the following legend:

"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER APPLICABLE SECURITIES LAWS AND MAY NOT BE TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED EXCEPT (A) PURSUANT TO A REGISTRATION STATEMENT EFFECTIVE UNDER SUCH ACT AND LAWS, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Covenant Not to Transfer.** Such Shareholder covenants and agrees with the Company that it shall not Transfer the shares of Class A Stock without compliance with this Agreement and federal and state securities laws.

**Representations of Purchaser**

Purchaser represents and warrants that:

1. **Authorization**: The execution of this Agreement has been duly authorized by all necessary corporate actions.

2. **Stock Issuance**: The shares to be issued to the Shareholders will be duly authorized, validly issued, and free of encumbrances.

**ARTICLE III: ASSUMPTION OF LIABILITIES**

**3.1. Convertible Notes**

The following debt obligations of the Company will be exchanged for convertible notes of Purchaser totalling $582,379:

1. Gold Ridge Micro Cap II LLC Note: $83,409.28 of debt obligations exchanged for a Convertible Note attached as Exhibit B:

· Maturity Date: May 15, 2026

· Conversion Cap: $0.18 per KingsCrowd share.

2. Gold Ridge Asset Management GP LLC Obligations: A total of $22,278.67 of payables owed to Gold Ridge Asset Management GP LLC for funds provided to the Company shall be exchanged for a Convertible Note attached as Exhibit A :

---

| | |
|:---|:---|
| ·  | Maturity Date: May 15, 2026 |
|  | Conversion Cap: $0.18 per KingsCrowd share |

---

3. Gold Ridge Asset Management LLC Obligations: A total of $206,326.64 of debt obligations and $95,497.50 payables owed to Gold Ridge Asset Management for funds provided to the Company (total $301,824.14) shall be exchanged for a Convertible Note attached as Exhibit A :

· Maturity Date: May 15, 2026

· Conversion Cap: $0.18 per KingsCrowd share.

4. SAFE Securities: A total of $232,399 in outstanding SAFE securities shall be exchanged for $174,866.91 (.752 new Convertible Notes for each existing SAFE) of a Convertible Note attached as exhibit A:

· Maturity Date: May 15, 2026

· Conversion Cap: $0.18 per KingsCrowd share **.** 

**3.2. Termination of Liabilities**

All liabilities to Gold Ridge Asset Management, other than those explicitly assumed, shall be terminated as part of the transaction.

**3.3. Closing Liabilities**

The Company will have no credit card obligations or payables outstanding at the time of closing.

**ARTICLE IV: ADDITIONAL AGREEMENTS**

**4.1. Non-Compete Agreement**

The principal shareholder of the Company, **Michael Knox**, agrees to a **three (3) year** non-compete agreement post-closing, prohibiting engagement in any business competitive with Purchaser in the equity crowdfunding diligence or investment analysis space in the United States. If any court of competent jurisdiction shall at any time deem the duration or the geographic scope of any of the provisions of this Section 4.1 unenforceable, the other provisions of this Section 4.1 shall nevertheless stand and the duration and/or geographic scope set forth herein shall be deemed to be the longest period and/or greatest size permissible by law under the circumstances, and the parties hereto agree that such court shall reduce the time period and/or geographic scope to permissible duration or size.

**4.2. Transition Assistance**

Michael Knox agrees to provide reasonable assistance to Purchaser for up to **six (6) months** post-closing to ensure a smooth transition.

**4.3. Tax Filings**

Purchaser shall assume responsibility for all tax filings and obligations for the Company and its subsidiary for the fiscal year ending December 31, 2024, including the preparation and submission of all federal, state, and local tax returns.

**ARTICLE V: CONDITIONS TO CLOSING**

**5.1. Conditions Precedent to Purchaser's Obligations**

· Completion of due diligence to Purchaser's satisfaction.

· All Company liabilities and obligations, except those explicitly assumed, are resolved or terminated prior to closing. The Company shall provide reasonable evidence at closing demonstrating that all liabilities on the Company's balance sheet not explicitly assumed by Purchaser have been satisfied.

**5.2. Conditions Precedent to Company's Obligations**

· Purchaser provides notices of issuance of the shares of Class A common issued to the Shareholders pursuant to this Agreement reflecting the agreed exchange ratio.

· Execution of all necessary convertible notes as outlined in Article III.

**ARTICLE VI: MISCELLANEOUS**

**6.1. Governing Law**

This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.

**6.2. Entire Agreement**

This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations and understandings.

**6.3. Dispute Resolution**

Disputes arising under this Agreement shall be resolved through arbitration in Delaware applying Delaware law.

**6.4. Successors and Assigns.**

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed.

**6.5. Specific Performance.**

The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition to any other remedy to which they are entitled at law or in equity.

**6.6. Severability.**

If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

**6.7. Counterparts.**

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail, or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

---

| | |
|:---|:---|
| **SIGNATURES** | **SIGNATURES** |
| **KingsCrowd Inc.** | **KingsCrowd Inc.** |
| By: | ![](kings_ex517img5.jpg) |
| Name: | Christopher Lustrino |
| Date: | 1/2/25 |
| **Crowd Diligence Inc.** | **Crowd Diligence Inc.** |
| By: | ![](kings_ex517img6.jpg) |
| Name: | Michael Knox |
| Date: | 1/2/25 |

---

**SUBSCRIPTION AGREEMENT**

THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE OR ANY OTHER JURISDICTION. THERE ARE FURTHER RESTRICTIONS ON THE TRANSFERABILITY OF THE SECURITIES DESCRIBED HEREIN.

THE PURCHASE OF THE SECURITIES INVOLVES A HIGH DEGREE OF RISK AND SHOULD BE CONSIDERED ONLY BY PERSONS WHO CAN BEAR THE RISK OF THE LOSS OF THEIR ENTIRE INVESTMENT.

KingsCrowd, Inc.

101 Glen Lennox Ave. Suite 300

Chapel Hill, NC 27517

Ladies and Gentlemen:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The undersigned understands that KingsCrowd, Inc., a corporation organized under the laws of Delaware (the "**Company**"), is offering an aggregate of up to 937,500 shares of its Class A common stock, par value $0.0001 per share (the "**Securities**"), at a price of $0.16 per share, in a private placement (the "**Offering**"). The undersigned further understands that the offering is being made without registration of the Securities under the Securities Act of 1933, as amended (the "**Securities Act**"), or any securities law of any state of the United States or of any other jurisdiction, and is being made only to "accredited investors" (as defined in Rule 501 of Regulation D under the Securities Act).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Subscription</u>. Subject to the terms and conditions hereof, the undersigned hereby irrevocably subscribes for the Securities set forth in Appendix A hereto for the aggregate purchase price set forth in Appendix A, which is payable as described in Section 5 hereof. The undersigned acknowledges that the Securities will be subject to restrictions on transfer as set forth in this subscription agreement (the "**Subscription Agreement**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Acceptance of Subscription and Issuance of Securities</u>. It is understood and agreed that the Company shall have the sole right, at its complete discretion, to accept or reject this subscription, in whole or in part, for any reason and that the same shall be deemed to be accepted by the Company only when it is signed by a duly authorized officer of the Company and delivered to the undersigned at the Closing referred to in Section 4 hereof. Subscriptions need not be accepted in the order received, and the Securities may be allocated among subscribers. Notwithstanding anything in this Subscription Agreement to the contrary, the Company shall have no obligation to issue any of the Securities to any person who is a resident of a jurisdiction in which the issuance of Securities to such person would constitute a violation of the securities, "blue sky" or other similar laws of such jurisdiction (collectively referred to as the "**State Securities Laws**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>The Closing</u>. The closing of the purchase and sale of the Securities (the "**Closing**") shall take place remotely via the exchange of documents and signatures on the date of this Agreement, or at such other time and place as the Company and the undersigned agree upon orally or in writing (the "**Closing Date**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Payment for Securities</u>. Payment for the Securities shall be received by the Company from the undersigned by wire transfer of immediately available funds or other means approved by the Company at or prior to the Closing, in the amount as set forth in Appendix A hereto. The Securities shall be issued in book-entry or similar form and maintained by or on behalf of the Company within three days of the Closing Date with notations regarding the applicable restrictions on transfer imposed under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to the undersigned that the statements contained in this Section 6 are true and correct as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization, Qualification and Authority of the Company.</u> The Company is a corporation duly organized, validly existing, and in good standing under the Laws (as defined in Section 5(d) below) of the state of Delaware and has all necessary corporate power and authority to own, operate or lease the properties and assets now owned, operated or leased by it and to carry on its business as it is currently conducted. The Company is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the properties owned or leased by it or the operation of its business as currently conducted makes such licensing or qualification necessary, except where the failure to be so licensed, qualified or in good standing would not have a Material Adverse Effect (as defined in Section 5(d) below). All corporate actions taken by the Company in connection with this Agreement have been duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Capitalization.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The authorized capital stock of the Company, without giving effect to the issuance of any Securities in the Offering, consists of (i) 51,000,000 shares of Class A common stock (the "**Class A Common Stock**"), of which 46,539,276 shares are issued and outstanding, without giving effect to 11,594,550 shares of Class A Common Stock issuable upon conversion of the Class B Common Stock, (ii) 15,000,000 shares of Class B Common Stock, par value $0.0001 per share (the "**Class B Common Stock**"), of which 11,594,550 shares are issued and outstanding, each of which entitles the holder to ten votes per share and which is convertible into one share of Class A Common Stock at any time at the option of the holder or automatically if the Company completes an underwritten public offering of securities on Form S-1 from which it receives gross proceeds of $10 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As of immediately following the Closing after giving effect to the transactions contemplated by this Agreement, (i) all of the issued and outstanding shares of capital stock of the Company will have been duly authorized, validly issued, fully paid, and non- assessable, (ii) all of the issued and outstanding shares of capital stock of the Company will have been issued in compliance with all applicable Laws, and (iii) none of the issued and outstanding shares of capital stock of the Company will have been issued in violation of any agreement, arrangement, or commitment to which the Company is a party or is subject to or in violation of any preemptive or similar rights of any individual, corporation, partnership, joint venture, limited liability company, Governmental Authority (as defined in Section 5(d) below), unincorporated organization, trust, association, or other entity (each, a "**Person**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Except as set out in Section 6(b)(i) above, there are no outstanding or authorized options, warrants, convertible securities, stock appreciation, phantom stock, profit participation or other rights, agreements or commitments relating to the shares of the Company or obligating Seller or the Company to issue or sell any shares of, or any other interest in, the Company. There are no voting trusts, stockholder agreements, proxies, or other agreements in effect with respect to the voting or transfer of any of the Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Subsidiaries.</u> The Company does not, directly or indirectly, own, control, or have any interest in any shares or other ownership interest in any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Conflicts; Consents.</u> The execution, delivery and performance by Seller of this Agreement, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation or by-laws of Seller or the Company; (b) violate or conflict with any provision of any Law or Governmental Order applicable to the Company; (c) require the consent, notice or other action by any Person under, violate or conflict with, or result in the acceleration of any Material Contract; or (d) require any consent, permit, Governmental Order, filing or notice from, with or to any Governmental Authority, other than: (i) the filing of a Notice of Exempt Offering of Securities on Form D with the Securities and Exchange Commission under Regulation D, and (ii) such filings as are required to be made under applicable State Securities Laws; except, in the cases of clauses (b) and (c), where the violation, conflict, acceleration or failure to obtain consent or give notice would not have a Material Adverse Effect and, in the case of clause (d), where such consent, permit, Governmental Order, filing or notice which, in the aggregate, would not have a Material Adverse Effect. For purposes of this Agreement: (i) "**Law**" means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law or other requirement or rule of law of any Governmental Authority; (ii) "**Governmental Order**" means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority; (iii) "**Governmental Authority**" means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court or tribunal of competent jurisdiction; (iv) "**Person**" means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association or other entity; and (v) "**Material Adverse Effect**" means any event, occurrence, fact, condition or change that is materially adverse to the business, results of operations, financial condition or assets of the Company, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Litigation</u>. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its properties before or by any Governmental Authority (collectively, an "**Action**") which (i) adversely affects or challenges the legality, validity or enforceability of this Agreement or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Compliance</u>. The Company: (i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or governmental body or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Regulatory Permits</u>. The Company possesses all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct its business, except where the failure to possess such permits could not reasonably be expected to result in a Material Adverse Effect ("**Material Permits**"), and the Company has not received any notice of proceedings relating to the revocation or modification of any Material Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Title to Assets</u>. The Company does not own any real property. The Company has good and marketable title in all personal property owned by it that is material to the business of the Company, in each case free and clear of any pledge, lien, charge, security interest, claim, community property interest, option, equitable interest, restriction of any kind (including any restriction on use, voting, transfer, receipt of income, or exercise of any other ownership attribute), or other encumbrance (each, a "**Lien**"), except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Intellectual Property</u>. The Company owns or possess or can obtain on commercially reasonable terms sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses (software or otherwise), information, processes and similar proprietary rights ("**Intellectual Property**") necessary to the business of the Company as currently conducted, without any conflict with or infringement of the rights of others. The Company has not received any written communication alleging that the has violated any of the Intellectual Property of any other person or entity or demanding or requesting payment by the Company of a license fee or royalty in connection therewith, nor is the Company aware of any basis therefor. To the Company's knowledge, the Company has obtained and possesses valid licenses to use all of the software programs present on the computers and other software-enabled electronic devices that it owns or leases or that it has otherwise provided to its employees for their use in connection with the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Representations and Warranties of the Undersigned</u>. The undersigned hereby represents and warrants to and covenants with the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>General</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned has all requisite authority (and in the case of an individual, the capacity) to purchase the Securities, enter into this Subscription Agreement and to perform all the obligations required to be performed by the undersigned hereunder, and such purchase will not contravene any law, rule, or regulation binding on the undersigned or any investment guideline or restriction applicable to the undersigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The undersigned is a resident of the state set forth on the signature page hereto and is not acquiring the Securities as a nominee or agent or otherwise for any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The undersigned will comply with all applicable Laws in effect in any jurisdiction in which the undersigned purchases or sells Securities and obtain any consent, approval or permission required for such purchases or sales under the laws and regulations of any jurisdiction to which the undersigned is subject or in which the undersigned makes such purchases or sales, and the Company shall have no responsibility therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Information Concerning the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned understands and accepts that the purchase of the Securities involves various risks, including the risks outlined in this Subscription Agreement. The undersigned represents that it is able to bear any loss associated with an investment in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The undersigned confirms that it is not relying on any communication (written or oral) of the Company or any of its affiliates, as investment or tax advice or as a recommendation to purchase the Securities. It is understood that information and explanations related to the terms and conditions of the Securities provided by the Company or any of its affiliates shall not be considered investment or tax advice or a recommendation to purchase the Securities, and that neither the Company nor any of its affiliates is acting or has acted as an advisor to the undersigned in deciding to invest in the Securities. The undersigned acknowledges that neither the Company nor any of its affiliates has made any representation regarding the proper characterization of the Securities for purposes of determining the undersigned's authority to invest in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The undersigned is familiar with the business and financial condition and operations of the Company. The undersigned has had access to such information concerning the Company and the Securities as it deems necessary to enable it to make an informed investment decision concerning the purchase of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The undersigned understands that, unless the undersigned notifies the Company in writing to the contrary at or before the Closing, each of the undersigned's representations and warranties contained in this Subscription Agreement will be deemed to have been reaffirmed and confirmed as of the Closing, taking into account all information received by the undersigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The undersigned acknowledges that the Company has the right in its sole and absolute discretion to abandon this private placement at any time prior to the completion of the offering. This Subscription Agreement shall thereafter have no force or effect, and the Company shall return the previously paid subscription price of the Securities, without interest thereon, to the undersigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The undersigned understands that no federal or state agency has passed upon the merits or risks of an investment in the Securities or made any finding or determination concerning the fairness or advisability of this investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Non-</u><u>Reliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned represents that it is not relying on (and will not at any time rely on) any communication (written or oral) of the Company, as investment advice or as a recommendation to purchase the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The undersigned confirms that the Company has not (A) given any guarantee or representation as to the potential success, return, effect or benefit (either legal, regulatory, tax, financial, accounting or otherwise) of an investment in the Securities or (B) made any representation to the undersigned regarding the legality of an investment in the Securities under applicable legal investment or similar laws or regulations. In deciding to purchase the Securities, the undersigned is not relying on the advice or recommendations of the Company and the undersigned has made its own independent decision that the investment in the Securities is suitable and appropriate for the undersigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Status of Undersigned</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned has such knowledge, skill and experience in business, financial and investment matters that the undersigned is capable of evaluating the merits and risks of an investment in the Securities. With the assistance of the undersigned's own professional advisors, to the extent that the undersigned has deemed appropriate, the undersigned has made its own legal, tax, accounting, and financial evaluation of the merits and risks of an investment in the Securities and the consequences of this Subscription Agreement. The undersigned has considered the suitability of the Securities as an investment in light of its own circumstances and financial condition and the undersigned is able to bear the risks associated with an investment in the Securities, and it is authorized to invest in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The undersigned is an "accredited investor" as defined in Rule 501(a) under the Securities Act. The undersigned agrees to furnish any additional information requested by the Company or any of its affiliates to assure compliance with applicable U.S. federal and state securities laws in connection with the purchase and sale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Restrictions on Transfer or Sale of Securities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The undersigned is acquiring the Securities solely for the undersigned's own beneficial account, for investment purposes, and not with a view to, or for resale in connection with, any distribution of the Securities. The undersigned understands that the Securities have not been registered under the Securities Act or any State Securities Laws by reason of specific exemptions under the provisions thereof which depend in part upon the investment intent of the undersigned and of the other representations made by the undersigned in this Subscription Agreement. The undersigned understands that the Company is relying upon the representations and agreements contained in this Subscription Agreement (and any supplemental information) for the purpose of determining whether this transaction meets the requirements for such exemptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The undersigned understands that the Securities are "restricted securities" under applicable federal securities laws and that the Securities Act and the rules of the U.S. Securities and Exchange Commission (the "**Commission**") provide in substance that the undersigned may dispose of the Securities only pursuant to an effective registration statement under the Securities Act or an exemption from the registration requirements of the Securities Act, and the undersigned understands that the Company has no obligation or intention to register any of the Securities or the offering or sale thereof, or to take action so as to permit offers or sales pursuant to the Securities Act or an exemption from registration thereunder (including pursuant to Rule 144 thereunder). Accordingly, the undersigned understands that under the Commission's rules, the undersigned may dispose of the Securities only in "private placements" which are exempt from registration under the Securities Act, in which event the transferee will acquire "restricted securities," subject to the same limitations that apply to the Securities in the hands of the undersigned. Consequently, the undersigned understands that the undersigned must bear the economic risks of the investment in the Securities for an indefinite period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The undersigned agrees: (A) that the undersigned will not sell, assign, pledge, give, transfer, or otherwise dispose of the Securities or any interest therein, or make any offer or attempt to do any of the foregoing, unless the transaction is registered under the Securities Act and complies with the requirements of all applicable State Securities Laws, or the transaction is exempt from the registration provisions of the Securities Act and all applicable requirements of State Securities Laws; (B) that the certificates representing the Securities will bear a legend making reference to the foregoing restrictions; and (C) that the Company and its affiliates shall not be required to give effect to any purported transfer of such Securities, except upon compliance with the foregoing restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The undersigned acknowledges that neither the Company nor any other person offered to sell the Securities to it by means of any form of general solicitation or advertising, including but not limited to: (A) any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over television or radio or (B) any seminar or meeting whose attendees were invited by any general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Conditions to Obligations of the Undersigned and the Company</u>. The obligations of the undersigned to purchase and pay for the Securities specified in Appendix A and of the Company to sell those Securities, are subject to the satisfaction at or prior to the Closing of the following conditions precedent: the representations and warranties of the Company contained in Section 6 hereof and of the undersigned contained in Section 7 hereof shall be true and correct as of the Closing in all respects with the same effect as though such representations and warranties had been made on and as of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Obligations Irrevocable</u>. The obligations of the undersigned shall be irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Legend</u>. The certificates representing the Securities sold pursuant to this Subscription Agreement will be imprinted with a legend in substantially the following form:

"THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT OR SUCH OTHER APPLICABLE LAWS."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Waiver, Amendment</u>. Neither this Subscription Agreement nor any provisions hereof shall be modified, changed, discharged or terminated except by an instrument in writing, signed by the party against whom any waiver, change, discharge or termination is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Assignability</u>. Neither this Subscription Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof shall be assignable by either the Company or the undersigned without the prior written consent of the other party, and any attempted assignment without such prior written consent shall be void.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Waiver of Jury Trial</u>. THE UNDERSIGNED IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS SUBSCRIPTION AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Submission to Jurisdiction</u>. With respect to any Action relating to any offers, purchases, or sales of the Securities by the undersigned, the undersigned irrevocably submits to the jurisdiction of the federal and state courts located in the Borough of Manhattan in New York City, which submission shall be exclusive, unless none of such courts has lawful jurisdiction over such Proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Governing Law</u>. This Subscription Agreement shall be governed by and construed in accordance with the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Section and Other Headings</u>. The section and other headings contained in this Subscription Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Subscription Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts</u>. This Subscription Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which together shall be deemed to be one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Notices</u>. All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid, if sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 17):

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| | |
|:---|:---|
| If to the Company: | ADDRESS |
|  | E-mail: chris@kingscrowd.com <br> Attention: Christopher Lustrino, President |
| If to the Purchaser: | At the address set forth on the signature page hereof |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Binding Effect</u>. The provisions of this Subscription Agreement shall be binding upon and accrue to the benefit of the parties hereto and their respective heirs, legal representatives, successors, and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Survival</u>. All representations, warranties and covenants contained in this Subscription Agreement shall survive (i) the acceptance of the subscription by the Company and the Closing, and (ii) the death or disability of the undersigned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Notification of Changes</u>. The undersigned hereby covenants and agrees to notify the Company upon the occurrence of any event prior to the closing of the purchase of the Securities pursuant to this Subscription Agreement which would cause any representation, warranty, or covenant of the undersigned contained in this Subscription Agreement to be false or incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement this

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| | |
|:---|:---|
| January 2, 2025 |  |
| (Please insert date.) |  |
| PURCHASER (if an individual): | PURCHASER (if an entity): |
| ![](kings_ex517img7.jpg) | Legal Name of Entity |
| ![](kings_ex517img7.jpg) |  |
| Print Name:<u>Michael</u> <u>Knox</u>  |  |
|  | By: |
|  | Title: |

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State/Country of Domicile or Formation:<u> </u>

Address: 1150 Hungryneck Blvd, C361, Mount Pleasant, SC 29464

mknox@goldridgeasset.com

Email Address:<u> </u> Telephone No. 843-637-9450

The offer to purchase Securities as set forth above is confirmed and accepted by the Company as to 937,500 shares of Class A Common Stock.

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| | |
|:---|:---|
| KINGSCROWD, INC. | KINGSCROWD, INC. |
| By | ![](kings_ex517img8.jpg) |
| Name: | Christopher Lustrino |
| Title: | President |

---

**APPENDIX A**

**Consideration to be Delivered**

---

| | |
|:---|:---|
| Securities to Be Acquired | Aggregate Purchase Price to be Paid |
| 937,500 shares of Class A Common Stock | $150000 |

---

**COVER SHEET WITH SUBSCRIPTION INSTRUCTIONS**

Enclosed herewith are the documents necessary to subscribe for shares of Class A common stock (the "**Securities**") of KingsCrowd, Inc., a corporation incorporated under the laws of Delaware (the "**Company**"). The Securities are being offered only to "accredited investors" (as defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended). Set forth herein are instructions for the execution of the enclosed documents.

**A. Instructions.**

Each person considering subscribing for Securities should review the following instructions:

· <u>Subscription Agreement</u>: Two copies of the Subscription Agreement must be completed, executed and delivered to the Company at the address set forth below. If your subscription is accepted, the Company will execute both copies of the Subscription Agreement and return one copy to you for your records.

· <u>Payment</u>: Payment of the purchase price for the Securities subscribed for shall be made by wire transfer by Closing (as defined in Section 3 of the Subscription Agreement) to the Company at account specified by the Company.

· <u>Acceptance or Rejection of Subscription</u>: The Company shall have the right to accept or reject any subscription, in whole or in part. An acknowledgment of the Company's acceptance of your subscription for the Securities subscribed for will be returned to you promptly after acceptance.

**B. Communications.**

All documents and checks should be forwarded to:

Christopher Lustrino, President

ADDRESS

E-mail: chris@kingscrowd.com

KingsCrowd Inc.

Bank: Bank of America

Address: 1212 Broadway Plaza Walnut Creek CA 94596

Company/Recipient: Kings Crowd

Account Number: 466002301354

Routing: 026009593 (Wires)

Routing: 011000138 (Paper & Electronic)

## Ex1K-5

**EXHIBIT 5.18**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| ARTICLE I PURCHASE AND SALE | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.01 Purchase and Sale of Assets.** | **1** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.02 Excluded Assets.** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.03 No Assumption of Liabilities.** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.04 Purchase Price.** | **2** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.05 Allocation of Purchase Price.** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.06 Withholding Tax.** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 1.07 Third-Party Consents.** | 3 |
| ARTICLE II CLOSING | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 2.01 Closing.** | **3** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 2.02 Closing Deliverables.** | 3 |
| ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLERS | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.01 Organization and Authority of Sellers.** | **4** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.02 No Conflicts or Consents.** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.03 Financial Statements.** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.04 Undisclosed Liabilities.** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.05 Absence of Certain Changes, Events, and Conditions.** | **5** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.06 Assigned Contracts.** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.07 Title to Purchased Assets.** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.08 Condition and Sufficiency of Assets.** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.09 Legal Proceedings; Governmental Orders.** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.10 Compliance with Laws; Permits.** | **6** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.11 Employment Matters.** | **7** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.12 Taxes.** | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.13 Related Party Transactions.** | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.14 Insurance.** | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.15 Intellectual Property.** | **8** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.16 Brokers.** | **12** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 3.17 Full Disclosure.** | 12 |
| ARTICLE IV REPRESENTATIONS AND WARRANTIES OF PURCHASER | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 4.01 Organization and Authority of Purchaser.** | **13** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 4.02 No Conflicts; Consents.** | **13** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 4.03 Brokers.** | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 4.04 Legal Proceedings.** | 13 |
| ARTICLE V COVENANTS | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.01 Confidentiality.** | **13** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.02 Non-Competition; Non-Solicitation.** | **14** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.03 Public Announcements.** | **15** |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.04 Bulk Sales Laws.** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.05 Receivables.** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.06 Transfer Taxes.** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.07 Further Assurances.** | **15** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 5.08 Non-Disparagement.** | 15 |
| ARTICLE VI INDEMNIFICATION | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 6.01 Survival.** | **16** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 6.02 Indemnification by Sellers.** | **16** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 6.03 Indemnification by Purchaser.** | **16** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 6.04 Indemnification Procedures.** | **17** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 6.05 Cumulative Remedies.** | 17 |
| ARTICLE VII MISCELLANEOUS | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.01 Expenses.** | **17** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.02 Notices.** | **17** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.03 Interpretation; Headings.** | **18** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.04 Severability.** | **18** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.05 Entire Agreement.** | **18** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.06 Successors and Assigns.** | **18** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.07 Amendment and Modification; Waiver.** | **19** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.** | **19** |
| &nbsp;&nbsp;&nbsp;&nbsp; **Section 7.09 Counterparts.** | 19 |

---

ii<br>

**ASSET PURCHASE AGREEMENT**

This Asset Purchase Agreement (this "**Agreement**"), dated as of April 4, 2025, is entered into by and among CrowdCheck, Inc., a Delaware corporation ("**CCI**"), Nicole Loftus, an individual ("**Ms. Loftus**"), and KingsCrowd Advisory, Inc., a Delaware corporation ("**Purchaser**"). CCI and Ms. Loftus may be referred to individually as a "**Seller**" and together as the "**Sellers**." Capitalized terms used in this Agreement have the meanings given to such terms herein, as such definitions are identified by the cross-references set forth in <u>Exhibit A</u> attached hereto.

**RECITALS**

**WHEREAS**, CCI provides legal and compliance services for entrepreneurs, investors and investment platforms in connection with capital formation under the exemptions from the registration provisions of the Securities Act of 1933, as amended (the "**Securities Act**"), afforded by Regulation CF, Regulation A and Regulation D, among other exemptions thereunder (the "**Business**"); and

**WHEREAS**, Ms. Loftus is the principal stockholder and an officer and director of CCI; and

**WHEREAS**, Sellers desire to sell and assign to Purchaser, and Purchaser wishes to purchase from Sellers, substantially all the assets, without assuming any of the existing liabilities, of the Business, subject to the terms and conditions set forth herein; and

**NOW, THEREFORE**, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I**

**PURCHASE AND SALE**

**Section 1.01 Purchase and Sale of Assets.** Subject to the terms and conditions set forth herein, at the Closing, Sellers shall sell, convey, assign, transfer, and deliver to Purchaser, and Purchaser shall purchase from Sellers, all of Sellers' right, title, and interest in, to, and under all of the tangible and intangible assets, properties, and rights of every kind and nature and wherever located (other than the Excluded Assets), which relate to, or are used or held for use in connection with, the Business (collectively, the "**Purchased Assets**"), including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Contracts, including Intellectual Property Agreements (collectively the "**Assigned Contracts**"), set forth on Section 1.01(d) of the disclosure schedules attached hereto (the "**Disclosure Schedules**"). The term "**Contracts**" means all contracts, leases, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures, and all other agreements, commitments, and legally binding arrangements, whether written or oral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights obtained, or required to be obtained, from Governmental Authorities ("**Permits**") which are held by Sellers and required for the conduct of the Business as currently conducted or for the ownership and use of the Purchased Assets, including, without limitation, those listed on Section 3.13(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all rights to any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether at law or in equity (collectively, "**Actions**") of any nature available to or being pursued by Sellers to the extent related to the Business or the Purchased Assets, whether arising by way of counterclaim or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all of Sellers's rights under warranties, indemnities, and all similar rights against third parties to the extent related to any Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) originals or, where not available, copies, of all books and records, including books of account, ledgers, and general, financial, and accounting records, machinery and equipment maintenance files, customer lists, customer purchasing histories, price lists, distribution lists, supplier lists, production data, quality control records and procedures, customer complaints and inquiry files, research and development files, records, and data (including all correspondence with any federal, state, local, or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any arbitrator, court, or tribunal of competent jurisdiction (collectively, "**Governmental Authority**")), sales material and records, strategic plans and marketing, and promotional surveys, material, and research ("**Books and Records**"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all goodwill and the going concern value of the Purchased Assets and the Business.

In addition to the foregoing, Purchaser is acquiring certain management rights in CrowdCheck Law in consideration of the payment of $500,000 in cash pursuant to the terms of an Approval of the Partners in the form of Exhibit E hereto.

**Section 1.02 Excluded Assets.** Notwithstanding the foregoing, the Purchased Assets shall not include the assets, properties, and rights specifically set forth on Section 1.02 of the Disclosure Schedules (collectively, the "**Excluded Assets**").

**Section 1.03 No Assumption of Liabilities.** Notwithstanding any provision in this Agreement to the contrary, Purchaser shall not assume and shall not be responsible to pay, perform, or discharge any Liabilities of Sellers or any of their Affiliates of any kind or nature whatsoever. For purposes of this Agreement: (i) "**Liabilities**" means liabilities, obligations, or commitments of any nature whatsoever, whether asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured, or otherwise. (ii) "**Affiliate**" of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person; and (iii) the term "**control**" (including the terms "controlled by" and "under common control with") means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

**Section 1.04 Purchase Price.** The aggregate purchase price for the Purchased Assets shall be $4,500,000.00 (the "**Purchase Price**"). Purchaser shall pay the Purchase Price by delivery to Sellers of (i) $500,000.00 by wire transfer of immediately available funds to CrowdCheck Law to an account designated in writing by Seller to Buyer (the "**Closing Payment**") and (ii) a promissory note in the principal amount of $4,000,000.00 in the form of Exhibit D attached hereto (the "**Purchase Note**").

**Section 1.05 Allocation of Purchase Price.** The Purchase Price shall be allocated among the Purchased Assets for all purposes (including Tax and financial accounting) in accordance with Section 1060 of the Internal Revenue Code of 1986, as amended. Purchaser and Sellers shall file all returns, declarations, reports, information returns and statements, and other documents relating to Taxes (including amended returns and claims for refund) ("**Tax Returns**") in a manner consistent with the Allocation Schedule.

**Section 1.06 Withholding Tax.** Purchaser shall be entitled to deduct and withhold from the Purchase Price all Taxes that Purchaser may be required to deduct and withhold under any provision of Tax Law. All such withheld amounts shall be treated as delivered to Sellers hereunder.

**Section 1.07 Third-Party Consents.** To the extent that Sellers' rights under any Purchased Asset may not be assigned to Purchaser without the consent of another Person which has not been obtained, this Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof or be unlawful, and Sellers, at their expense, shall use their reasonable best efforts to obtain any such required consent(s) as promptly as possible. If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair Purchaser's rights under the Purchased Asset in question so that Purchaser would not in effect acquire the benefit of all such rights, Sellers, to the maximum extent permitted by Law and the Purchased Asset, shall act after the Closing as Purchaser's agent in order to obtain for it the benefits thereunder and shall cooperate, to the maximum extent permitted by Law and the Purchased Asset, with Purchaser in any other reasonable arrangement designed to provide such benefits to Purchaser.

**ARTICLE II**

**CLOSING**

**Section 2.01 Closing.** Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by this Agreement (the "**Closing**") shall take place remotely by exchange of documents and signatures (or their electronic counterparts), at 10:00 a.m., Eastern Time, simultaneously with the execution of this Agreement, or at such other time or place or in such other manner as Sellers and Purchaser may mutually agree upon in writing. The date on which the Closing is to occur is herein referred to as the "**Closing Date**."

**Section 2.02 Closing Deliverables.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the Closing, Sellers shall deliver to Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an assignment and assumption agreement in the form of **Exhibit B** attached hereto (the "**Assignment and Assumption Agreement**") and duly executed by Sellers, effecting the assignment to and assumption by Purchaser of the Purchased Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the written consent of CrowdCheck Law LLP to the assignment of the Intercompany Agreement between CCI and CrowdCheck Law LLP to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) an assignment in the form of Exhibit C hereto (the "**Intellectual Property Assignment**") and duly executed by Seller, transferring all of Seller's right, title and interest in and to the Intellectual Property Assets to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate of the Secretary (or equivalent officer) of each Seller certifying as to (A) the resolutions of the board of directors and the shareholders or partners of the Seller, as applicable, which authorize the execution, delivery, and performance of this Agreement, the Bill of Sale, the Assignment and Assumption Agreement, and the other agreements, instruments, and documents required to be delivered in connection with this Agreement or at the Closing (collectively, the "**Transaction Documents**") and the consummation of the transactions contemplated hereby and thereby, and (B) the names and signatures of the officers of Sellers authorized to sign this Agreement and the other Transaction Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other customary instruments of transfer or assumption, filings, or documents, in form and substance reasonably satisfactory to Purchaser, as may be required to give effect to the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the Closing, Purchaser shall deliver to Sellers the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Closing Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Purchase Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Assignment and Assumption Agreement duly executed by Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a certificate of the Secretary (or equivalent officer) of Purchaser certifying as to (A) the resolutions of the board of directors of Purchaser, which authorize the execution, delivery, and performance of this Agreement, the Purchase Note and the Transaction Documents and the consummation of the transactions contemplated hereby and thereby, and (B) the names and signatures of the officers of Purchaser authorized to sign this Agreement, the Purchase Note and the other Transaction Documents.

**ARTICLE III**

**REPRESENTATIONS AND WARRANTIES OF SELLERS**

Sellers represent and warrant to Purchaser, jointly and severally, that the statements contained in this ARTICLE III are true and correct as of the date hereof.

**Section 3.01 Organization and Authority of Sellers.** CCI is an entity duly organized or formed, validly existing, and in good standing under the Laws of its state of formation. Each Seller has full power and authority and, in Ms. Loftus' case, the capacity, to enter into this Agreement and the other Transaction Documents to which such Seller is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by each Seller of this Agreement and any other Transaction Document to which such Seller is a party, the performance by such Seller of its obligations hereunder and thereunder, and the consummation by such Seller of the transactions contemplated hereby and thereby have been duly authorized by all requisite action on the part of such Seller's board of directors and stockholders or managers and members, as applicable. This Agreement and the Transaction Documents constitute legal, valid, and binding obligations of Sellers enforceable against Sellers in accordance with their respective terms.

**Section 3.02 No Conflicts or Consents.** The execution, delivery, and performance by each Seller of this Agreement and the other Transaction Documents to which a Seller is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, certificate of partnership, partnership agreement or other governing documents of the Sellers; (b) violate or conflict with any provision of any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, other requirement, or rule of law of any Governmental Authority (collectively, "**Law**") or any order, writ, judgment, injunction, decree, stipulation, determination, penalty, or award entered by or with any Governmental Authority ("**Governmental Order**") applicable to either Seller, the Business or the Purchased Assets; (c) require the consent, notice, declaration, or filing with or other action by any individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated organization, trust, association, or other entity ("**Person**") or require any Permit or Governmental Order; (d) violate or conflict with, result in the acceleration of, or create in any party the right to accelerate, terminate, modify, or cancel any Contract to which a Seller is a party or by which a Seller or the Business is bound or to which any of the Purchased Assets are subject (including any Assigned Contract); or (e) result in the creation or imposition of any charge, claim, pledge, equitable interest, lien, security interest, restriction of any kind, or other encumbrance ("**Encumbrance**") on the Purchased Assets.

**Section 3.03 Financial Information.** Copies of the internally prepared, unaudited financial information of the Sellers consisting of the balance sheet of the Business as of December 31 2024 and a profit and loss statement and statement of cash flow for the year then ended (the "**Financial Information**") are included in Section 3.03 of the Disclosure Schedules. The Financial Information fairly present in all material respects the financial condition of the Business as of the date prepared and the results of the operations of the Business for the period ended December 31, 2024. The balance sheet of the Business as of December 31, 2024 is referred to herein as the "**Balance Sheet**" and the date thereof as the "**Balance Sheet Date**".

**Section 3.04 Undisclosed Liabilities.** Sellers have no Liabilities with respect to the Business, except (a) those which are adequately reflected or reserved against in the Balance Sheet as of the Balance Sheet Date, and (b) those which have been incurred in the ordinary course of business consistent with past practice since the Balance Sheet Date and which are not, individually or in the aggregate, material in amount.

**Section 3.05 Absence of Certain Changes,** Events, and Conditions. Since the Balance Sheet Date, except as set forth on Section 3.05 of the Disclosure Schedules, Business has been conducted in the ordinary course of business consistent with past practice and there has not been any change, event, condition, or development that is, or could reasonably be expected to be, individually or in the aggregate, materially adverse to: (a) the business, results of operations, condition (financial or otherwise), or assets of the Business; or (b) the value of the Purchased Assets.

**Section 3.06 Assigned Contracts.** Each Assigned Contract is valid and binding on the applicable Seller that is party to such Assigned Contract in accordance with its terms and is in full force and effect. Neither Sellers nor, to Sellers' knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach of or default under) in any material respect, or has provided or received any notice of any intention to terminate, any Assigned Contract. No event or circumstance has occurred that would constitute an event of default under any Assigned Contract or result in a termination thereof. Complete and correct copies of each Assigned Contract (including all modifications, amendments, and supplements thereto and waivers thereunder) have been made available to Purchaser. There are no material disputes pending or threatened under any Assigned Contract.

**Section 3.07 Title to Purchased Assets.** Seller has good and valid title to all the Purchased Assets and, upon the closing of this Agreement, Purchaser will acquire the Purchased Assets, free and clear of Encumbrances.

**Section 3.08 Condition and Sufficiency of Assets.** Each item of Tangible Personal Property is structurally sound, is in good operating condition and repair, and is adequate for the uses to which it is being put, and no item of Tangible Personal Property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are not material in nature or cost. The Purchased Assets are sufficient for the continued conduct of the Business after the Closing in substantially the same manner as conducted prior to the Closing and constitute all of the rights, property, and assets necessary to conduct the Business as currently conducted. None of the Excluded Assets are material to the Business.

**Section 3.09 Legal Proceedings; Governmental Orders.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) There are no Actions pending or, to Sellers' knowledge, threatened against or by Sellers: (i) relating to or affecting the Business or the Purchased Assets; or (ii) that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) CCI is in compliance with all Governmental Orders against, relating to, or affecting the Business or the Purchased Assets.

**Section 3.10 Compliance with Laws; Permits.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) CCI is in compliance with all Laws applicable to the conduct of the Business as currently conducted or the ownership and use of the Purchased Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All Permits required for CCI to conduct its Business as currently conducted or for the ownership and use of the Purchased Assets have been obtained by CCI and are valid and in full force and effect. All fees and charges with respect to such Permits as of the date hereof have been paid in full. Section 3.10(b) of the Disclosure Schedules lists all current Permits issued to each Seller which are related to the conduct of the Business as currently conducted or the ownership and use of the Purchased Assets, including the names of the Permits and their respective dates of issuance and expiration. Seller has complied and is now complying with the terms of all Permits listed on Section 3.10(b) of the Disclosure Schedules. No event has occurred that, with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any Permit set forth in Section 3.10(b) of the Disclosure Schedules.

**Section 3.11 Employment Matters.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 3.11(a) of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants of the Business as of the date hereof, including any employee who is on a leave of absence of any nature, paid or unpaid, authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title or position (including whether full-time or part-time); (iii) hire or retention date; (iv) current annual base compensation rate or contract fee; (v) commission, bonus or other incentive-based compensation; and (vi) a description of the fringe benefits provided to each such individual as of the date hereof. As of the date hereof, all compensation, including wages, commissions, bonuses, fees and other compensation, payable to all employees, independent contractors or consultants of the Business for services performed on or prior to the date hereof have been paid in full and there are no outstanding agreements, understandings or commitments of CCI with respect to any compensation, commissions, bonuses or fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) CCI is not, nor has it been a party to, bound by, or negotiating any collective bargaining agreement or other Contract with a union, works council or labor organization (collectively, "**Union**"). There has never been, nor has there been any threat of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption or dispute affecting CCI or any employees of the Business. CCI has no duty to bargain with any Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) CCI is and has been in compliance in all material respects with all applicable Laws pertaining to employment and employment practices to the extent they relate to employees, consultants and independent contractors of the Business, including all Laws relating to labor relations, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers' compensation, leaves of absence, paid sick leave and unemployment insurance. All individuals characterized and treated by the Seller as consultants or independent contractors of the Business are properly treated as independent contractors under all applicable Laws. All employees of the Business classified as exempt under the Fair Labor Standards Act and state and local wage and hour laws are properly classified in all material respects. There are no Actions against CCI pending, or to the Sellers' knowledge, threatened to be brought or filed, by or with any Governmental Authority or arbitrator in connection with the employment of any current or former applicant, employee, consultant or independent contractor of the Business, including, without limitation, any charge or claim relating to unfair labor practices, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, employee classification, child labor, hiring, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers' compensation, leaves of absence, paid sick leave, unemployment insurance or any other employment related matter arising under applicable Laws.

**Section 3.12 Taxes.** All Taxes due and owing by CCI have been, or will be, timely paid. No extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Sellers. All Tax Returns required to be filed by Sellers for any tax periods prior to Closing have been, or will be, timely filed. Such Tax Returns are, or will be, true, complete, and correct in all respects. The term "**Taxes**" means all federal, state, local, foreign, and other income, gross receipts, sales, use, production, ad valorem, transfer, documentary, franchise, registration, profits, license, withholding, payroll, employment, unemployment, excise, severance, stamp, occupation, premium, property (real or personal), customs, duties, or other taxes, fees, assessments, or charges of any kind whatsoever, together with any interest, additions, or penalties with respect thereto.

**Section 3.13 Related Party Transactions.** Except as set forth on Section 3.13 of the Disclosure Schedules, there are no Contracts or other arrangements involving the Business in which Sellers, their respective Affiliates, or any of their respective directors, managers, officers, or employees or any immediate family members thereof is a party, has a financial interest, or otherwise owns or leases any Purchased Asset.

**Section 3.14 Insurance.** Section 3.14 of the Disclosure Schedules sets forth a true and complete list of all current policies or binders of fire, liability, product liability, umbrella liability, real and personal property, workers' compensation, vehicular, fiduciary liability and other casualty and property insurance maintained by Sellers or their Affiliates and relating to the Business or the Purchased Assets (collectively, the "**Insurance Policies**"). There are no claims related to the Business, the Purchased Assets pending under any Insurance Policies as to which coverage has been questioned, denied or disputed or in respect of which there is an outstanding reservation of rights. Neither of the Sellers nor any of their respective Affiliates has received any written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of the Insurance Policies. All premiums due on the Insurance Policies have either been paid or, if not yet due, accrued. All the Insurance Policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by carriers who are financially solvent; and (c) have not been subject to any lapse in coverage. Neither of the Sellers nor any of their respective Affiliates is in default under, or has otherwise failed to comply with, in any material respect, any provision contained in any Insurance Policy. The Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to the Business and are sufficient for compliance with all applicable Laws and Contracts to which Sellers are a party or by which it is bound. True and complete copies of the Insurance Policies have been made available to Purchaser.

**Section 3.15 Intellectual Property.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For purposes of this Agreement, the terms set forth below have the meaning ascribed to them in this Section 3.15(a):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Intellectual Property**" means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout the world: (a) issued patents and patent applications (whether provisional or non-provisional), including divisionals, continuations, continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other Governmental Authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility models) ("**Patents**"); (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by, and all registrations, applications for registration, and renewals of, any of the foregoing ("**Trademarks**"); (c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and renewals of any of the foregoing ("**Copyrights**"); (d) internet domain names and social media account or user names (including "handles"), whether or not Trademarks, all associated web addresses, URLs, websites and web pages, social media sites and pages, and all content and data thereon or relating thereto, whether or not Copyrights; (e) mask works, and all registrations, applications for registration, and renewals thereof; (f) trade secrets, know-how, inventions (whether or not patentable), discoveries, improvements, technology, business and technical information, databases, data compilations and collections, tools, methods, processes, techniques, and other confidential and proprietary information and all rights therein ("**Trade Secrets**"); (g) computer programs, operating systems, applications, firmware and other code, including all source code, object code, application programming interfaces, data files, databases, protocols, specifications, and other documentation thereof ("**Software**"); and (h) all other intellectual or industrial property and proprietary rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Intellectual Property Agreements**" means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements, covenants not to sue, waivers, releases, permissions and other Contracts, whether written or oral, relating to any Intellectual Property that is used or held for use in the conduct of the Business as currently conducted to which either Seller is a party, beneficiary or otherwise bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Intellectual Property Assets**" means all Intellectual Property that is owned by either Seller and used or held for use in the conduct of the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Intellectual Property Registrations**" means all Intellectual Property Assets that are subject to any issuance, registration, or application by or with any Governmental Authority or authorized private registrar in any jurisdiction, including issued Patents, registered Trademarks, domain names and Copyrights, and pending applications for any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Licensed Intellectual Property**" means all Intellectual Property in which either Seller hold any rights or interests granted by other Persons, including any of Seller's Affiliates, that is used or held for use in the conduct of the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 3.15(b) of the Disclosure Schedules contains a correct, current and complete list of: (i) all Intellectual Property Registrations, specifying as to each, as applicable: the title, mark, or design; the jurisdiction by or in which it has been issued, registered or filed; the patent, registration or application serial number; the issue, registration or filing date; and the current status; (ii) all unregistered Trademarks included in the Intellectual Property Assets; (iii) all proprietary Software included in the Intellectual Property Assets; and (iv) all other Intellectual Property Assets that are used in the conduct of the Business as currently conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 3.15(c) of the Disclosure Schedules contains a correct, current and complete list of all Intellectual Property Agreements, specifying for each the date, title, and parties thereto, and separately identifying the Intellectual Property Agreements: (i) under which CCI is a licensor or otherwise grants to any Person any right or interest relating to any Intellectual Property Asset; (ii) under which CCI is a licensee or otherwise granted any right or interest relating to the Intellectual Property of any Person; and (iii) which otherwise relate to CCI's ownership or use of any Intellectual Property in the conduct of the Business as currently conducted, in each case identifying the Intellectual Property covered by such Intellectual Property Agreement. Sellers have provided Purchaser with true and complete copies (or in the case of any oral agreements, a complete and correct written description) of all such Intellectual Property Agreements, including all modifications, amendments and supplements thereto and waivers thereunder. Each Intellectual Property Agreement is valid and binding on CCI in accordance with its terms and is in full force and effect. To the knowledge of the Sellers, neither CCI nor any other party thereto is, or is alleged to be, in breach of or default under, or has provided or received any notice of breach of, default under, or intention to terminate (including by non-renewal), any Intellectual Property Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) CCI is the sole and exclusive legal and beneficial owner of all right, title and interest in and to the Intellectual Property Assets, and have the valid and enforceable right to use all other Intellectual Property used in or necessary for the conduct of the Business as currently conducted, in each case, free and clear of Encumbrances. The Intellectual Property Assets and Licensed Intellectual Property are all of the Intellectual Property necessary to operate the Business as presently conducted. Sellers have entered into binding, valid and enforceable written Contracts with each current and former employee and independent contractor who is or was involved in or has contributed to the invention, creation, or development of any Intellectual Property during the course of employment or engagement with the applicable Seller whereby such employee or independent contractor (i) acknowledges CCI's exclusive ownership of all Intellectual Property Assets invented, created or developed by such employee or independent contractor within the scope of his or her employment or engagement with CCI; (ii) grants to such Seller a present, irrevocable assignment of any ownership interest such employee or independent contractor may have in or to such Intellectual Property, to the extent such Intellectual Property does not constitute a "work made for hire" under Applicable Law; and (iii) irrevocably waives any right or interest, including any moral rights, regarding such Intellectual Property, to the extent permitted by applicable Law. Sellers have provided Purchaser with true and complete copies of all such Contracts. All assignments and other instruments necessary to establish, record, and perfect CCI's ownership interest in the Intellectual Property Registrations have been validly executed, delivered, and filed with the relevant Governmental Authorities and authorized registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Neither the execution, delivery, or performance of this Agreement, nor the consummation of the transactions contemplated hereunder, will result in the loss or impairment of or payment of any additional amounts with respect to, or require the consent of any other Person in respect of, the Purchaser's right to own or use any Intellectual Property Assets or Licensed Intellectual Property in the conduct of the Business as currently conducted. Immediately following the Closing, all Intellectual Property Assets will be owned or available for use by Purchaser on substantially the same terms as they were owned or available for use by Seller immediately prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All of the Intellectual Property Assets and Licensed Intellectual Property are valid and enforceable, and all Intellectual Property Registrations are subsisting and in full force and effect. CCI has taken all reasonable and necessary steps to maintain and enforce the Intellectual Property Assets and Licensed Intellectual Property and to preserve the confidentiality of all Trade Secrets included in the Intellectual Property Assets, including by requiring all Persons having access thereto to execute binding, written non-disclosure agreements. All required filings and fees related to the Intellectual Property Registrations have been timely submitted with and paid to the relevant Governmental Authorities and authorized registrars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The conduct of the Business as currently and formerly conducted, including the use of the Intellectual Property Assets and Licensed Intellectual Property in connection therewith, and the products, processes, and services of the Business have not infringed, misappropriated, or otherwise violated the Intellectual Property or other rights of any Person. No Person has infringed, misappropriated, or otherwise violated any Intellectual Property Assets or Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) There are no Actions (including any opposition, cancellation, revocation, review, or other proceeding), whether settled, pending or threatened (including in the form of offers to obtain a license): (i) alleging any infringement, misappropriation, or other violation of the Intellectual Property of any Person by either Seller in the conduct of the Business; (ii) challenging the validity, enforceability, registrability, patentability, or ownership of any Intellectual Property Assets or Licensed Intellectual Property; or (iii) by either Seller or any other Person alleging any infringement, misappropriation, or other violation by any Person of any Intellectual Property Assets. Sellers are not aware of any facts or circumstances that could reasonably be expected to give rise to any such Action. Neither Seller is subject to any outstanding or prospective Governmental Order (including any motion or petition therefor) that does or could reasonably be expected to restrict or impair the use of any Intellectual Property Assets or Licensed Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Section 3.15(i) of the Disclosure Schedules contains a correct, current, and complete list of all social media accounts used by each Seller in the conduct of the Business. Sellers have complied with all terms of use, terms of service, and other Contracts and all associated policies and guidelines relating to their use of any social media platforms, sites, or services in the conduct of the Business (collectively, "**Platform Agreements**"). There are no Actions settled, pending, or threatened alleging (i) any breach or other violation of any Platform Agreement by CCI; or (ii) defamation, any violation of publicity rights of any Person, or any other violation by CCI in connection with its use of social media in the conduct of the Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All Software, computer hardware, servers, networks, platforms, peripherals, and similar or related items of automated, computerized, or other information technology (IT) networks and systems (including telecommunications networks and systems for voice, data, and video) owned, leased, licensed, or used (including through cloud-based or other third-party service providers) in the conduct of the Business (collectively, "**Business IT Systems**") of CCI are in good working condition and are sufficient for the operation of the Business as currently conducted. In the past two years, there has been no malfunction, failure, continued substandard performance, denial-of-service, or other cyber incident, including any cyberattack, or other impairment of the Business IT Systems that has resulted or is reasonably likely to result in material disruption or damage to the Business that has not been remedied. CCI has taken all commercially reasonable steps to safeguard the confidentiality, availability, security, and integrity of the Business IT Systems, including implementing and maintaining appropriate backup, disaster recovery, and Software and hardware support arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) CCI has complied with all applicable Laws and all internal or publicly posted policies, notices, and statements concerning the collection, use, processing, storage, transfer, and security of personal information in the conduct of the Business. In the past two years, CCI has not (i) experienced any actual, alleged, or suspected data breach or other security incident involving personal information in its possession or control or (ii) been subject to or received any notice of any audit, investigation, complaint, or other Action by any Governmental Authority or other Person concerning the Sellers' collection, use, processing, storage, transfer, or protection of personal information or actual, alleged, or suspected violation of any applicable Law concerning privacy, data security, or data breach notification, in each case in connection with the conduct of the Business, and there are no facts or circumstances that could reasonably be expected to give rise to any such Action.

**Section 3.16 Brokers.** No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Sellers.

**Section 3.17 Full Disclosure.** No representation or warranty by Sellers in this Agreement and no statement contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Purchaser pursuant to this Agreement contains any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein, in light of the circumstances in which they are made, not misleading.

**ARTICLE IV**

**REPRESENTATIONS AND WARRANTIES OF PURCHASER**

Purchaser represents and warrants to Sellers that the statements contained in this ARTICLE IV are true and correct as of the date hereof.

**Section 4.01 Organization and Authority of Purchaser.** Purchaser is a corporation duly organized, validly existing, and in good standing under the Laws of the State of Delaware. Purchaser has full corporate power and authority to enter into this Agreement, the Purchase Note and the other Transaction Documents to which Purchaser is a party, to carry out its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Purchaser of this Agreement, the Purchase Note and any other Transaction Document to which Purchaser is a party, the performance by Purchaser of its obligations hereunder and thereunder, and the consummation by Purchaser of the transactions contemplated hereby and thereby have been duly authorized by all requisite corporate action on the part of Purchaser. This Agreement, the Purchase Note and the Transaction Documents constitute legal, valid, and binding obligations of Purchaser enforceable against Purchaser in accordance with their respective terms.

**Section 4.02 No Conflicts; Consents.** The execution, delivery, and performance by Purchaser of this Agreement, the Purchase Note and the other Transaction Documents to which it is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not: (a) violate or conflict with any provision of the certificate of incorporation, by-laws, or other organizational documents of Purchaser; (b) violate or conflict with any provision of any Law or Governmental Order applicable to Purchaser; or (c) require the consent, notice, declaration, or filing with or other action by any Person or require any permit, license, or Governmental Order.

**Section 4.03 Brokers.** No broker, finder, or investment banker is entitled to any brokerage, finder's, or other fee or commission in connection with the transactions contemplated by this Agreement or any other Transaction Document based upon arrangements made by or on behalf of Purchaser.

**Section 4.04 Legal Proceedings.** There are no Actions pending or, to Purchaser's knowledge, threatened against or by Purchaser that challenge or seek to prevent, enjoin, or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action.

**ARTICLE V**

**COVENANTS**

**Section 5.01 Confidentiality.** From and after the Closing, Sellers shall, and shall cause their respective Affiliates to, hold, and shall use their reasonable best efforts to cause their or their respective directors, officers, employees, consultants, counsel, accountants, and other agents ("**Representatives**") to hold, in confidence any and all information, whether written or oral, concerning the Business, except to the extent that Sellers can show that such information: (a) is generally available to and known by the public through no fault of Sellers, any of their Affiliates, or their respective Representatives; or (b) is lawfully acquired by Sellers, any of their Affiliates, or their respective Representatives from and after the Closing from sources which are not prohibited from disclosing such information by a legal, contractual, or fiduciary obligation. If Sellers or any of their Affiliates or their respective Representatives are compelled to disclose any information by Governmental Order or Law, Sellers shall promptly notify Purchaser in writing and shall disclose only that portion of such information which is legally required to be disclosed, *provided that* Sellers shall use reasonable best efforts to obtain as promptly as possible an appropriate protective order or other reasonable assurance that confidential treatment will be accorded such information.

**Section 5.02 Non-Competition; Non-Solicitation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Sellers acknowledge the competitive nature of the Business and accordingly agrees, in connection with the sale of the Purchased Assets, including the goodwill of the Business, which Purchaser considers to be a valuable asset, and in exchange for good and valuable consideration, that for a period of two years commencing on the Closing Date (the "**Restricted Period**"), Sellers shall not, and shall not permit any of their Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in providing legal and compliance services for entrepreneurs, investors and investment platforms in connection with capital formation under the exemptions from the registration provisions of the Securities Act (the "**Restricted Business**") in all jurisdictions in which CCI conducts the Business (the "**Territory**"); (ii) have an interest in any Person that engages directly or indirectly in the Restricted Business in the Territory in any capacity, including as a partner, shareholder, director, member, manager, employee, principal, agent, trustee, or consultant; or (iii) cause, induce, or encourage any material actual or prospective client, customer, supplier, or licensor of the Business (including any existing or former client or customer of Sellers and any Person that becomes a client or customer of the Business after the Closing), or any other Person who has a material business relationship with the Business, to terminate or modify any such actual or prospective relationship. Notwithstanding the foregoing, Sellers may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if Sellers is not a controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own five percent (5%) or more of any class of securities of such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the Restricted Period, Sellers shall not, and shall not permit any of their Affiliates to, directly or indirectly, hire or solicit any person who is or was employed in the Business during the Restricted Period, or encourage any such employee to leave such employment or hire any such employee who has left such employment, except pursuant to a general solicitation which is not directed specifically to any such employees; *provided that* nothing in this Section 5.02(b) shall prevent Sellers or any of their Affiliates from hiring (i) any employee whose employment has been terminated by Purchaser; or (ii) after one hundred eighty (180) days from the date of termination of employment, any employee whose employment has been terminated by the employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Sellers acknowledge that a breach or threatened breach of this Section 5.02 would give rise to irreparable harm to Purchaser, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a threatened breach by Sellers of any such obligations, Purchaser shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Sellers acknowledge that the restrictions contained in this Section 5.02 are reasonable and necessary to protect the legitimate interests of Purchaser and constitute a material inducement to Purchaser to enter into this Agreement and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this Section 5.02 should ever be adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable Law in any jurisdiction or any Governmental Order, then any court is expressly empowered to reform such covenant in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable Law or such Governmental Order. The covenants contained in this Section 5.02 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction.

**Section 5.03 Public Announcements.** Unless otherwise required by applicable Law, no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

**Section 5.04 Bulk Sales Laws.** The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer, or similar Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Purchaser.

**Section 5.05 Receivables.** From and after the Closing, if Sellers or any of their Affiliates receives or collects any funds relating to any Accounts Receivable or any other Purchased Asset, Sellers or their Affiliate shall remit such funds to Purchaser within five (5) business days after their receipt thereof. From and after the Closing, if Purchaser or its Affiliate receives or collects any funds relating to any Excluded Asset, Purchaser or its Affiliate shall remit any such funds to Sellers within five (5) business days after its receipt thereof.

**Section 5.06 Transfer Taxes.** All sales, use, registration, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the other Transaction Documents, if any, shall be borne and paid by Sellers when due. Sellers shall, at their own expense, timely file any Tax Return or other document with respect to such Taxes or fees (and Purchaser shall cooperate with respect thereto as necessary).

**Section 5.07 Further Assurances.** Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates to, execute and deliver such additional documents, instruments, conveyances, and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and the other Transaction Documents.

**Section 5.08 Non-Disparagement.** Each party to this Agreement, agrees not and shall use reasonably commercial efforts to cause any of their respective agents, officers, key employees or directors not to, in any way publicly disparage, call into disrepute, defame, slander or otherwise criticize the other parties or any of their products or services, in any manner that would damage the business or reputation or otherwise degrade the other party's reputation of such other parties, their products or services in the business or the community or in the relevant industry."

**ARTICLE VI**

**INDEMNIFICATION**

**Section 6.01 Survival.** All representations, warranties, covenants, and agreements contained herein and all related rights to indemnification shall survive the Closing.

**Section 6.02 Indemnification by Sellers.** Subject to the other terms and conditions of this ARTICLE VI, from and after Closing, each Seller shall, jointly and severally, indemnify and defend each of Purchaser and its Affiliates and their respective Representatives (collectively, the "**Purchaser Indemnitees**") against, and shall hold each of them harmless from and against, any and all losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys' fees (collectively, "**Losses**"), incurred or sustained by, or imposed upon, the Purchaser Indemnitees based upon, arising out of, or with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Sellers contained in this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Sellers pursuant to this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any Excluded Asset; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any Third-Party Claim based upon, resulting from, or arising out of the business, operations, properties, assets, or obligations of Sellers or any of their Affiliates (other than the Purchased Assets) conducted, existing, or arising on or prior to the Closing Date. For purposes of this Agreement, "**Third-Party Claim**" means notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an Affiliate of a party to this Agreement or a Representative of the foregoing.

**Section 6.03 Indemnification by Purchaser.** Subject to the other terms and conditions of this ARTICLE VI, from and after Closing, Purchaser shall indemnify and defend each of Sellers and their respective Affiliates and Representatives (collectively, the "**Sellers Indemnitees**") against, and shall hold each of them harmless from and against any and all Losses incurred or sustained by, or imposed upon, the Sellers Indemnitees based upon, arising out of, or with respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any inaccuracy in or breach of any of the representations or warranties of Purchaser contained in this Agreement, any other Transaction Document, or any schedule, certificate, or exhibit related thereto, as of the date such representation or warranty was made or as if such representation or warranty was made on and as of the Closing Date (except for representations and warranties that expressly relate to a specified date, the inaccuracy in or breach of which will be determined with reference to such specified date); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any breach or non-fulfillment of any covenant, agreement, or obligation to be performed by Purchaser pursuant to this Agreement.

**Section 6.04 Indemnification Procedures.** Whenever any claim shall arise for indemnification hereunder, the party entitled to indemnification (the "**Indemnified Party**") shall promptly provide written notice of such claim to the other party (the "**Indemnifying Party**"). In connection with any claim giving rise to indemnity hereunder resulting from or arising out of any Action by a Person who is not a party to this Agreement, the Indemnifying Party, at its or their sole cost and expense and upon written notice to the Indemnified Party, may assume the defense of any such Action with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall be entitled to participate in the defense of any such Action, with its counsel and at its own cost and expense. If the Indemnifying Party does not assume the defense of any such Action, the Indemnified Party may, but shall not be obligated to, defend against such Action in such manner as it may deem appropriate, including settling such Action, after giving notice of it to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate and no action taken by the Indemnified Party in accordance with such defense and settlement shall relieve the Indemnifying Party of its or their indemnification obligations herein provided with respect to any damages resulting therefrom. The Indemnifying Party shall not settle any Action without the Indemnified Party's prior written consent (which consent shall not be unreasonably withheld or delayed).

**Section 6.05 Payment of Indemnification Amounts.** Amounts determined to be owing under Section 6.02 and 6.03 shall be paid promptly within ten (10) days after any final judgment or award shall have been rendered by a court of law of competent jurisdiction, arbitration board or administrative agency, or a settlement shall have been consummated. Amounts determined to be owing under Section 6.02 shall be paid by a reduction of the principal amount of the Purchase Note. Amounts determined to be owing under Section 6.03 shall be paid by means of wire transfer to the bank account provided in writing by the Indemnified Party. All amounts paid pursuant to this ARTICLE VI shall be deemed to be an adjustment to the Purchase Price.

**Section 6.06 Cumulative Remedies.** The rights and remedies provided in this ARTICLE VI are cumulative and are in addition to and not in substitution for any other rights and remedies available at law or in equity or otherwise.

**ARTICLE VII**

**MISCELLANEOUS**

**Section 7.01 Expenses.** All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses.

**Section 7.02 Notices.** All notices, claims, demands, and other communications hereunder shall be in writing and shall be deemed to have been given: (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by email of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent after normal business hours of the recipient, or (d) on the third day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 7.02):

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| | |
|:---|:---|
| **If to Sellers:**<br>| Pop Venture Inc.<br> 12 East 49th Street 11th Floor<br> New York, NY 10017<br> Email: n@popventure.com |
| **If to Purchaser:**<br>| <br> KingsCrowd Advisory, Inc.<br> 101 Glen Lennox Drive Unit 300<br> Chapel Hill, NC 27517<br> Email: chris@kingscrowd.com<br> Attention: Christopher Lustrino, President |

---

**Section 7.03 Interpretation; Headings.** This Agreement shall be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 7.04 Severability.** If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision of this Agreement.

**Section 7.05 Entire Agreement.** This Agreement, the Purchase Note and the other Transaction Documents constitute the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between the statements in the body of this Agreement and those in the other Transaction Documents, the Exhibits, and the Disclosure Schedules (other than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will control.

**Section 7.06 Successors and Assigns.** This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. No party may assign its rights or obligations hereunder without the prior written consent of the other party or parties, which consent shall not be unreasonably withheld or delayed. Any purported assignment in violation of this Section shall be null and void. No assignment shall relieve the assigning party of any of its obligations hereunder.

**Section 7.07 Amendment and Modification; Waiver.** This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. No failure to exercise, or delay in exercising, any right or remedy arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right or remedy.

**Section 7.08 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All matters arising out of or relating to this Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction). Any legal suit, action, proceeding, or dispute arising out of or related to this Agreement, the Purchase Note, the other Transaction Documents, or the transactions contemplated hereby or thereby must be instituted in the federal court of the District of Delaware or the Delaware Court of Chancery, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL ACTION, PROCEEDING, CAUSE OF ACTION, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, INCLUDING ANY EXHIBITS AND SCHEDULES ATTACHED TO THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (I) NO REPRESENTATIVE OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (II) EACH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (III) EACH PARTY MAKES THIS WAIVER KNOWINGLY AND VOLUNTARILY; AND (IV) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

**Section 7.09 Counterparts.** This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by email or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

[Signature page follows.]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their duly authorized [officers/representatives].

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| |
|:---|
| SELLERS:<br>CROWDCHECK, INC. |
| By: |
| Nicole Loftus <br> President  |
| NICOLE LOFTUS  |
| PURCHASER:<br>KINGSCROWD ADVISORY, INC. |
| By: |
| <br> Christopher Lustrino<br> President  |

---

**EXHIBITS**

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| | |
|:---|:---|
| Exhibit A:<br>| Definitions Cross-Reference Table<br>|
| Exhibit B:<br>| Assignment and Assumption Agreement<br>|
| Exhibit C:<br>| Intellectual Property Assignment Agreement<br>|
| Exhibit D:<br>| Purchase Note<br>|

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**EXHIBIT A**

**DEFINITIONS CROSS-REFERENCE TABLE**

The following terms have the meanings set forth in the location in this Agreement referenced below:

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| | |
|:---|:---|
| **Term** | **Section** |
| Accounts Receivable | Section 1.01(b) |
| Actions | Section 1.01(f) |
| Affiliate | Section 1.03(b) |
| Agreement | Preamble |
| Allocation Schedule | Section 1.05 |
| Assigned Contracts | Section 1.01(d) |
| Assignment and Assumption Agreement | Section 2.02(a)(ii) |
| Balance Sheet | Section 3.03 |
| Balance Sheet Date | Section 3.03 |
| Bill of Sale | Section 2.02(a)(i) |
| Books and Records | Section 1.01(i) |
| Business | Recitals |
| Closing | Section 2.01 |
| Closing Date | Section 2.01 |
| Closing Payment | Section 1.04 |
| Contracts | Section 1.01(d) |
| Control | Section 1.03(b) |
| Copyrights | Section 3.15(a)(i) |
| Disclosure Schedules | Section 1.01(d) |
| Encumbrance | Section 3.02 |
| Excluded Assets | Section 1.02 |
| Excluded Liabilities | Section 1.03(b) |
| Financial Information | Section 3.03 |
| Governmental Authority | Section 1.01(i) |
| Governmental Order | Section 3.02 |
| Indemnified Party | Section 6.04 |
| Indemnifying Party | Section 6.04 |
| Insurance Policies | Section 3.17 |
| Intellectual Property | Section 3.15(a)(i) |
| Intellectual Property Assets | Section 3.15(a)(i) |

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| | |
|:---|:---|
| Intellectual Property Agreements | Section 3.15(a)(i) |
| Intellectual Property Registrations | Section 3.15(b) |
| Interim Financial Statements | Section 3.03 |
| Law | Section 3.02 |
| Liabilities | Section 1.03(a) |
| Licensed Intellectual Property | Section 3.15(a)(i) |
| Losses | Section 6.02 |
| Material Customers | Section 3.11(a) |
| Material Suppliers | Section 3.11(b) |
| Patents | Section 3.15(a)(i) |
| Permits | Section 1.01(e) |
| Person | Section 3.02 |
| Platform Agreements | Section 3.15(i) |
| Purchased Assets | Section 1.01 |
| Purchase Note | Section 1.04 |
| Purchase Price | Section 1.04 |
| Purchaser | Preamble |
| Purchaser Indemnitees | Section 6.02 |
| Representatives | Section 5.01 |
| Restricted Business | Section 5.02(a) |
| Restricted Period | Section 5.02(a) |
| Securities Act | Recitals |
| Sellers | Preamble |
| Sellers Indemnitees | Section 6.03 |
| Software | Section 3.15(a)(i) |
| Tangible Personal Property | Section 1.01(e) |
| Taxes | Section 3.14 |
| Tax Returns | Section 1.05 |
| Territory | Section 5.02(a) |
| Third-Party Claim | Section 6.02(d) |
| Trademarks | Section 3.15(a)(i) |
| Trade Secrets | Section 3.15(a)(i) |
| Transaction Documents | Section 2.02(a)(v) |
| Union | Section 3.14(b) |

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**DISCLOSURE SCHEDULES**

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| | |
|:---|:---|
| Section 1.01(d): | Assigned Contracts |
| Section 1.02: | &nbsp;&nbsp;&nbsp;&nbsp; Excluded Assets |
| Section 3.03: | &nbsp;&nbsp;&nbsp;&nbsp; Financial Information |
| Section 3.05 | &nbsp;&nbsp;&nbsp;&nbsp; Absence of Certain Changes, Events, and Conditions |
| Section 3.13(b): | Permits |
| Section 3.14(a): | Employment Matters. |
| Section 3.16: | &nbsp;&nbsp;&nbsp;&nbsp; Related Party Transactions |
| Section 3.17: | &nbsp;&nbsp;&nbsp;&nbsp; Insurance |
| Section 3.15(a): |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Intellectual Property Registrations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unregistered Trademarks included in the Intellectual Property Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Proprietary Software included in the Intellectual Property Assets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Other Intellectual Property Assets

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| | |
|:---|:---|
| Section 3.15(b) | Intellectual Property Agreements |
| Section 3.15(h): | Social Media Accounts |

---

**EXHIBITS**

Exhibit A

## Ex1K-5

**EXHIBIT 5.19**

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| | |
|:---|:---|
| $4000000.00  | April 4, 2025 |

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PROMISSORY NOTE

FOR GOOD AND VALUABLE CONSIDERATION RECEIVED, Kingscrowd Inc., a Delaware corporation (the "<u>Borrowe</u>r"), unconditionally promises to pay to the order of CROWDCHECK, INC. or its permitted assignee ("<u>Holder</u>" and together with the Borrower, the "<u>Parties</u>") the principal amount of FOUR MILLION DOLLARS ($4,000,000) or, if less, the aggregate unpaid principal amount outstanding hereunder, plus all accrued, unpaid interest, as set forth below. This Promissory Note (the "<u>Note</u>") is being issued and delivered by the Borrower pursuant to the Asset Purchase Agreement, dated as of March 31, 2025, by and among the Borrower, Holder, and the other parties thereto (the "<u>Purchase Agreement</u>"). Capitalized terms used and not otherwise defined in this Note have the meanings ascribed them in the Purchase Agreement.

The following is a statement of the rights of Holder, the obligations of the Borrower, and the terms and conditions to which this Note is subject, and to which Holder and the Borrower, by the acceptance of this Note, agree and acknowledge:

1. <u>Maturity Date</u>. All unpaid principal and accrued, unpaid interest then outstanding will be immediately due and payable on the date that is the sixth anniversary of the date hereof (the " <u>Maturity Date</u> ").

2. <u>Interest</u>. The outstanding principal amount of this Note shall not bear any interest.

3. <u>Payments and Prepayment</u>.

3.1 Commencing on May 4, 2025 and on the 4th day of each month thereafter until the entire principal amount of this Note has been paid, Borrower shall pay to Holder a sum equal to:

(a) seventy percent (70%) of Borrower's "net income," as such term is defined under generally accepted accounting principles in the United States (" <u>GAAP</u> "), generated in the prior month; plus

(b) commencing in the month after the Borrower has received gross proceeds from the Offerings (as defined below) in an aggregate amount of $1,500,000, a sum equal to 33.3% of the gross proceeds it receives in the Offerings in the prior month. The Term "Offerings" means the offerings of shares of the Borrower's Class A Common Stock, par value $0.0001 per share, Borrower currently is making pursuant to Regulation CF and Regulation D under the Securities Act of 1933, as amended.

3.2 All payments pursuant to this Note will be made to Holder in lawful money of the United States of America, by wire transfer, certified check or other "immediately available" funds to such place as Holder has notified the Borrower in writing.

3.3 This Note may be prepaid at any time and from time to time, in whole or in part, without penalty or premium, with or without notice in the Borrower's sole discretion.

4. <u>Right to Setoff</u>. The Borrower shall have the right to set-off on a dollar-for-dollar basis against any amounts payable by the Borrower to Holder under this Note (including, without limitation, fees, expenses and principal) any amounts payable by Holder to the Borrower or any Purchaser Indemnified Party under the Purchase Agreement, whether for indemnification under <u>Section 6</u> of the Purchase Agreement or otherwise.

5. <u>Event of Default</u>. For purposes of this Note, an " <u>Event of Default</u> " will be deemed to have occurred if any of the following occur, whatever the reason or cause, whether voluntary or involuntary, whether or not effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body:

5.1 Failure to Pay. The failure by the Borrower to make any payment of any principal when due and the continuance of such failure for a period of five (5) days following written notice by Holder specifying such failure.

5.2 Dissolution. Any order, judgment or decree is entered against the Borrower decreeing the dissolution, liquidation or winding-up of the Borrower.

5.3 Insolvency Proceedings. Institution of any proceeding by or against the Borrower under the provisions of any federal bankruptcy, reorganization, arrangement of debt, insolvency or receivership laws or similar state or federal laws providing for the relief of debtors, if such proceeding is not dismissed, bonded or discharged within sixty (60) days following its institution.

5.4 Receivership, Etc. The appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part of the Borrower's property, or the Borrower making an assignment for the benefit of creditors.

6. <u>Remedies</u>. Upon the occurrence and during the continuance of any uncured Event of Default, Holder may, by written notice to the Borrower, declare the entire unpaid principal amount of this Note together with accrued interest thereon to be due and payable, and the entire unpaid principal amount of this Note together with such interest will then immediately become due and payable. If Holder exercises any rights or remedies relating to the collection of amounts due hereunder, Borrow shall reimburse Holder on demand for all reasonable costs and fees (including reasonable attorney's fees) incurred in exercising any such rights or remedies.

7. <u>Waiver</u>. THE BORROWER AND ANY OTHER PERSONS WHO BECOME LIABLE FOR ALL OR ANY PART OF THE INDEBTEDNESS EVIDENCED BY THIS NOTE, HEREBY WAIVE DILIGENCE, PRESENTMENT, PROTEST AND DEMAND AND NOTICE OF PROTEST AND DEMAND, DISHONOR, NONPAYMENT AND ACCELERATION OF THIS NOTE, AND EXPRESSLY AGREE THAT THIS NOTE, OR ANY PAYMENT HEREUNDER, MAY BE EXTENDED FROM TIME TO TIME IN HOLDER'S SOLE DISCRETION AND THAT HOLDER MAY ACCEPT SECURITY FOR THIS NOTE OR RELEASE SECURITY FOR THIS NOTE, ALL WITHOUT IN ANY WAY AFFECTING THE LIABILITY OF THE BORROWER OR ANY OTHER PARTY LIABLE HEREUNDER.

8. <u>Security Interest and Related Matters</u>.

8.1 Definitions Applicable to this Section 8. Capitalized terms used in this Section 8 and not otherwise defined herein shall have the meanings set forth below. Unless otherwise defined herein, capitalized terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9.

(a) " <u>Collateral</u> " means and includes all present and future right, title and interest of the Company in or to any of the following property of the Company, whether now or hereafter acquired and wherever the same may from time to time be located, and all rights and powers of the Company to transfer any interest in or to any of such property: (i) all Accounts; (ii) all Chattel Paper; (iii) all Contracts; (iv) all Deposit Accounts; (v) all Documents; (iv) all Equipment; (vii) all Financial Assets; (viii) all Fixtures; (ix) all General Intangibles; (x) all Goods; (xi) all Instruments; (xii) all Intellectual Property; (xiii) all Inventory; (xiv) all Investment Property; (xv) all other goods and personal property, wherever located, whether tangible or intangible, and whether now owned or hereafter acquired, existing, leased or consigned by or to the Company; and (xvi) to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for and rents, profits and products of each of the foregoing.

(b) " <u>First Priority Lien</u> " means the first priority lien granted pursuant to the Senior Secured Note.

(c) " <u>Governmental Authority</u> " means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

(d) " <u>Law</u> " means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties is subject.

(e) " <u>Lien</u> " means any mortgage, pledge, hypothecation, encumbrance, lien (statutory or other), charge, or other security interest.

(f) " <u>Material Adverse Effect</u> " means a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent), operations, condition (financial or otherwise), or prospects of the Company; (b) the validity or enforceability of this Note; (c) the perfection or priority of any Lien purported to be created under this Note; (d) the rights or remedies of the Company hereunder; or (e) the Company's ability to perform any of its material obligations hereunder.

(g) "Person" means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, Governmental Authority or other entity.

(h) " <u>Secured Obligations</u> " means all duties, covenants, agreements, liabilities, indebtedness and obligations of the Company with respect to the repayment, payment or performance of all indebtedness, liabilities and obligations (monetary or otherwise) of the Company, whenever arising, whether primary, secondary, direct, contingent, fixed or otherwise and whether joint, several, or joint and several, established by or arising under or in connection with this Note, including all principal, interest, fees, legal and other costs, charges and expenses, and other amounts payable by the Company under this Note.

(i) " <u>Senior Secured Note</u> " means the Senior Secured Promissory Note made by the Company in favor of Gold Ridge Micro Cap II LLC dated as of March 31, 2025 in the principal amount of $500,000.

(j) " <u>UCC</u> " means the Uniform Commercial Code as in effect from time to time in the State of New York; provided, however, that if by reason of mandatory provisions of law, any or all of the perfection or priority of the Secured Party's security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Arizona, the term "UCC" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

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| | |
|:---|:---|
| 8.2 | <u>Grant of Security Interest</u>. As security for Secured Obligations, the Company hereby pledges, assigns, transfers and grants to Holder a Lien on and security interest in and to, all of the right, title and interest of the Company in and to the Collateral, subject in all respects to the rights and remedies of the holder of the First Priority Lien (the "<u>Security Interest</u>").  |
|  | This Security Interest shall (i) remain in full force and effect until the full performance of all Secured Obligations hereunder, (ii) be binding upon the Company and its successors and assigns and (iii) inure to the benefit of the Holder and its successors and assigns. Upon the occurrence, and during the continuation, of an Event of Default, Holder shall have with respect to the Collateral all rights and remedies of a secured party under the UCC or other applicable Law, subject only to the First Priority Lien. |

---

8.3 <u>Perfection of Security Interest; Execution of Documents; Further Assurances</u>. The Company shall execute such documents and instruments, including, without limitation, a security agreement, financing statements, continuation statements, assignments and certificates with respect to the Collateral pursuant to the UCC and otherwise as may be necessary or reasonably requested by Holder to perfect or continue or renew the security interests granted hereby, in each case in form reasonably satisfactory to Holder and subject only to the First Priority Lien. The Company grants to Holder the right, at any time and from time to time at Holder's option, and at the Company's expense, to file any or all such financing statements, continuation statements, and other documents pursuant to the UCC and otherwise as Holder reasonably may deem necessary or desirable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Company hereunder, without the signature of the Company where permitted by law. The Company agrees to provide all information required by Holder pursuant to this paragraph promptly to Holder upon written request. The Company agrees to pay the cost of filing the same in all public offices where filing is necessary or reasonably requested by Holder, and will pay any and all recording, transfer or filing taxes that may be due in connection with any such filing.

8.4 <u>Attorney in Fact</u>. The Company hereby appoints Holder as the Company's attorney-in-fact, with full authority in the place and stead of the Company and in the name of the Company or otherwise, from time to time during the continuance of an Event of Default in Holder's discretion to take any action and to execute any instrument which Holder may deem necessary or advisable to accomplish the purposes of this Note and to do all other things necessary to preserve and protect the Collateral and to make collections and to protect Holder's security interest in the Collateral (but Holder shall not be obligated to and shall have no liability to the Company or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Company hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. Holder shall not be liable to the Company for any action taken with respect to the Collateral while enforcing his rights under this Note.

8.5 <u>Release of Security Interest</u>. Upon the satisfaction by the Company of all of its obligations under the Note, either upon the full conversion of this Note by Holder or the payment of all amounts of principal and interest due under this Note, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to the Company and the Holder shall promptly surrender this Note by delivering it to the Company at its address set forth above, and the total amount of this Note shall be deemed paid in full. The Holder shall then have no further rights hereunder, and this Note shall thereupon be cancelled as of such date.

8.6 <u>Security Interest Subject to First Priority Lien</u>. Notwithstanding anything herein to the contrary, the lien and Security Interest granted to Holder pursuant to this Note shall be a second priority Lien on and security interest in the Collateral subject in all cases to the Senior Secured Note.

8.7 <u>Covenants</u>.

(a) <u>Affirmative Covenants</u> Until all Secured Obligations have been paid in full, the Company shall:

(i) <u>Maintenance of Existence</u>. (a) Preserve, renew, and maintain in full force and effect its corporate or organizational existence and (b) take all reasonable action to maintain all rights, privileges, and franchises necessary or desirable in the normal conduct of its business, except, in each case, where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

(ii) <u>Compliance</u>. Comply with (a) all of the terms and provisions of its organizational documents; and (b) its obligations under its material contracts and agreements.

(iii) <u>Payment Obligations</u>. Pay, discharge, or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings, and reserves in conformity with GAAP with respect thereto have been provided on its books.

(iv) <u>Maintenance of Collateral</u>. The Company agrees to maintain the Collateral in good order, repair, and condition at all times.

(v) <u>Defense of Collateral</u>. The Company agrees to timely pay shall, at its own cost and expense, defend title to the Collateral and the First Priority security interest and Lien granted to the Holder with respect thereto against all claims and demands of all Persons at any time claiming any interest therein materially adverse to the Holder.

(vi) <u>Payment of Claims</u>. The Company shall pay when due all taxes, judgments, levies, fees, or charges of any kind levied or assessed on the Collateral.

(vii) <u>Compliance with Laws</u>. The Company shall comply with all Laws applicable to it and its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

(viii) <u>Notice of Events of Default</u>. As soon as possible and in any event within two (2) Business Days after it becomes aware that a Default or an Event of Default has occurred, notify Holder in writing of the nature and extent of such Default or Event of Default and the action, if any, it has taken or proposes to take with respect to such Default or Event of Default.

(ix) <u>Notice of Payment of Senior Secured Note</u>. Promptly after the Company satisfies all of its obligations under the Senior Secured Note, it shall notify the Holder in writing thereof.

(b) <u>Negative Covenants.</u> Until all Secured Obligations have been paid in full, the Company shall not:

(i) <u>Indebtedness</u>. Incur, create, or assume any indebtedness senior to the indebtedness evidenced by this Note, other than existing indebtedness under the Senior Secured Note.

(ii) <u>Actions Impairing Collateral</u>. Not enter into any agreement or take any other action, that would reasonably be expected to restrict the transferability of any of the Collateral or otherwise impair or conflict in any material respect with the Company's obligations or the rights of the Holder hereunder or otherwise allow any taxes, judgments, levies, fees, or charges of any kind levied or assessed on the Collateral which are not promptly paid by the Company.

9. <u>Miscellaneous</u>.

9.1 Further Assurances. Each Party agrees to cooperate fully with the other Party and to execute such further instruments, documents and agreements and to give such further written assurances, as may be reasonably requested by any other Party to evidence and reflect the transactions described herein and contemplated hereby, and to carry into effect the intents and purposes of this Note.

9.2 Assignment; Binding Effect. Except as otherwise permitted herein, the respective rights of the Parties under this Note are not assignable without the prior written consent of the other Party. Any purported assignment in violation of this <u>Section 8.2</u> is void and of no force or effect. This Note inures to the benefit of, and is binding upon, the successors and permitted assigns of the Parties hereto.

9.3 Notices. All notices, demands, amendments, waivers, consents, approvals, and other communications required or permitted under this Note must be in writing at the address for such Party set forth below or such other replacement address provided to the other Party after the date hereof. Any such items requiring delivery shall be deemed delivered: (a) on the date such notice is delivered in person; (b) three (3) days after the date of mailing if sent by registered, express, or certified mail, postage prepaid, return receipt requested; (c) the next succeeding Business Day after the date of delivery to a nationally recognized overnight courier; or (d) the next succeeding Business Day after the transmission by email.

---

| | |
|:---|:---|
| (i) | if to the Borrower: |
|  | Kingscrowd Inc. <br> 101 Glen Lennox Drive Unit 300<br> Chapel Hill, NC 27517 |
| (ii) | if to Holder:<br>Pop Venture Inc.<br> 12 East 49<sup>th</sup> Street 11<sup>th</sup> Floor<br> New York, NY 10017 |

---

9.4 Entire Agreement. This Note and the documents referenced herein are the complete and exclusive statement of agreement and understanding of the Parties with respect to matters in this Note. This Note replaces and supersedes all prior written or oral agreements, statements, understandings and negotiations by the Parties with respect to the matters covered by it.

9.5 Amendments; Waivers. This Note may not be amended, modified, or changed, nor shall any waiver by Holder or any holder hereof of any provision of this Note be effective, except by written instrument signed by Holder and the Borrower. Every amendment or waiver must be in writing and designated as an amendment or waiver, as appropriate. No failure by any Party to insist on the strict performance of any provision of this Note, or to exercise any right or remedy, will be deemed a waiver of such performance, right or remedy, or of any other provision of this Note. Any waiver of this Note will only be effective with respect to circumstances or events specifically set forth in such waiver.

9.6 Severability. If any provision of this Note, or the application thereof, becomes or is declared by a court of competent jurisdiction to be illegal, void or unenforceable, the remainder of this Note will continue in full force and effect and the application of such provision to other persons or circumstances will be interpreted so as reasonably to effect the intent of the Parties hereto. The Parties further agree to replace such void or unenforceable provision of this Note with a valid and enforceable provision that will achieve, to the extent possible, the economic, business and other purposes of such void or unenforceable provision.

9.7 Governing Law. THIS INITIAL NOTE SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES OF NEW YORK OR ANY OTHER JURISDICTION.

9.8 Dispute Resolution. Any dispute among the Parties and arising out of or relating to this Note will be resolved in accordance with the procedures specified in the Purchase Agreement. The Parties intend that these provisions will be valid, binding, enforceable and irrevocable and will survive any termination of this Note. Any and all negotiations undertaken to resolve any dispute are confidential and will be treated as compromise and settlement negotiations for purposes of applicable rules of evidence. The statute of limitations applicable to the commencement of a lawsuit will apply to the commencement of an action hereunder, except that no defenses will be available based upon the passage of time during any such negotiation.

9.9 Replacement of Note. Upon receipt of evidence reasonably satisfactory to the Borrower of the loss, theft, destruction or mutilation of this Note, the Borrower will issue, in lieu thereof, a new Note of like tenor.

[Signature Page Follows]

IN WITNESS WHEREOF, the undersigned have executed this Note as of the date first written above.

---

| |
|:---|
| BORROWER: <br> Kingscrowd, INC. |
| By: |
| Name: Christopher Lustrino<br> Title: President  |

---

AGREED AND ACCEPTED:

HOLDER:

Pop venture inc.

By:<u> </u>

Name: Nicole Loftus

Title: CEO

NICOLE LOFTUS

__________________________________

## Ex1K-5

**EXHIBIT 5.20**

**SENIOR SECURED PROMISSORY NOTE**

---

| | |
|:---|:---|
| **$500000.00**<br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **April 4, 2025**<br>|

---

FOR VALUE RECEIVED, and subject to the terms and conditions set forth herein, KingsCrowd Advisory, Inc., a Delaware corporation (the "**Company**") hereby unconditionally promises to pay to the order of Gold Ridge Micro Cap II LLC (the "**Holder**") the principal amount of $500,000.00 (the "**Loan**"), together with all accrued interest thereon, as provided in this Senior Secured Promissory Note (the "**Note**", as the same may be amended, restated, supplemented or otherwise modified from time to time in accordance with its terms). Capitalized terms used herein shall have the meanings ascribed to them in Section 2. Capitalized terms used and not defined herein have the meanings ascribed to them in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Seniority of Note.** This Note shall rank senior to any and all other Indebtedness of the Company unless the Company receives the prior written consent of the Holder to otherwise incur Indebtedness senior to or on parity with this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Definitions.** Capitalized terms not otherwise defined herein shall have the meanings set forth in this Section 2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Applicable Interest Rate**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) From April 4, 2025 through July 4, 2025, interest will accrue on the outstanding principal amount of this Note at the rate of 9.99% per annum;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) From July 5, 2025 through Maturity, interest will accrue on the outstanding principal amount of this Note at the rate of 15% per annum; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Business Day**" means a day other than a Saturday, Sunday or other day on which commercial banks in Charlotte, North Carolina are authorized or required by law to close.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Collateral**" means and includes all present and future right, title and interest of the Company in or to any of the following property of the Company, whether now or hereafter acquired and wherever the same may from time to time be located, and all rights and powers of the Company to transfer any interest in or to any of such property: (i) all Accounts; (ii) all Chattel Paper; (iii) all Contracts; (iv) all Deposit Accounts; (v) all Documents; (iv) all Equipment; (vii) all Financial Assets; (viii) all Fixtures; (ix) all General Intangibles; (x) all Goods; (xi) all Instruments; (xii) all Intellectual Property; (xiii) all Inventory; (xiv) all Investment Property; (xv) all other goods and personal property, wherever located, whether tangible or intangible, and whether now owned or hereafter acquired, existing, leased or consigned by or to the Company; and (xvi) to the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and replacements for and rents, profits and products of each of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Default**" means any of the events specified in <u>Section 6</u> which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both pursuant to <u>Section 6</u> would, unless cured or waived, become an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Event of Default**" has the meaning set forth in <u>Section 6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**GAAP**" means generally accepted accounting principles in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Governmental Authority**" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Indebtedness**" means (without duplication): (i) the principal of indebtedness of the Company for borrowed money; (ii) principal obligations of the Company evidenced by bonds, debentures, notes or other similar instruments or upon which interest payments are customarily made; (iii) all reimbursement obligations of the Company in respect of letters of credit, bankers' acceptances or other similar instruments (the amount of such obligations being equal at any time to the aggregate then undrawn and unexpired amount of such letters of credit, bankers' acceptances or other instruments plus the aggregate amount of drawings thereunder that have not then been reimbursed) (except to the extent such reimbursement obligations relate to trade payables and such obligations are expected to be satisfied within 30 days of becoming due and payable); (iv) all Indebtedness of the Company secured by a lien on any asset of the Company, whether or not such Indebtedness is assumed by the Company; and (v) all guarantees by the Company of the Indebtedness of any other Person, to the extent so guaranteed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Law**" means any law (including common law), statute, ordinance, treaty, rule, regulation, policy or requirement of any Governmental Authority and authoritative interpretations thereon, whether now or hereafter in effect, in each case, applicable to or binding on such Person or any of its properties or to which such Person or any of its properties is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "**Liabilities**" means any and all debts, liabilities and obligations of any nature whatsoever, whether accrued or fixed, absolute or contingent, mature or unmatured, known or unknown or determined or indeterminable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "**Lien**" means any mortgage, pledge, hypothecation, encumbrance, lien (statutory or other), charge, or other security interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "**Material Adverse Effect**" means a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent), operations, condition (financial or otherwise), or prospects of the Company; (b) the validity or enforceability of this Note; (c) the perfection or priority of any Lien purported to be created under this Note; (d) the rights or remedies of the Company hereunder; or (e) the Company's ability to perform any of its material obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "**Maturity Date**" means the earlier of (a) April 4, 2026 and (b) the date on which all amounts under this Note shall become due and payable pursuant to <u>Section 6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "**Person**" means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, Governmental Authority or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Secured Obligations**" means all duties, covenants, agreements, liabilities, indebtedness and obligations of the Company with respect to the repayment, payment or performance of all indebtedness, liabilities and obligations (monetary or otherwise) of the Company, whenever arising, whether primary, secondary, direct, contingent, fixed or otherwise and whether joint, several, or joint and several, established by or arising under or in connection with this Note, including all principal, interest, fees, legal and other costs, charges and expenses, and other amounts payable by the Company under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "**UCC**" means the Uniform Commercial Code as in effect from time to time in the State ofNevada; provided, however, that if by reason of mandatory provisions of law, any or all of the perfection or priority of the Secured Party's security interest in any item or portion of the Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of Arizona, the term "UCC" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection or priority and for purposes of definitions relating to such provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Payment; Optional Prepayments; Issuance of Penalty Warrants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Payment Date</u>. The aggregate unpaid principal amount of this Note, all accrued and unpaid interest and any and all other amounts payable under this Note shall be due and payable on the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment Terms</u>. Commencing on May 1, 2025 and on the first day of each month thereafter until the entire principal amount of this Note has been paid, Borrower shall pay to Holder a sum equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fifteen percent (15%) of Borrower's "net income," as such term is defined under generally accepted accounting principles in the United States, generated in the prior month; plus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a sum equal to fifty percent (50%) of the gross proceeds received by Kingscrowd, Inc., a Delaware corporation ("KCI"), from the sale of shares of Class A Common Stock, par value $0.0001 per share, in the offering currently being made by KCI pursuant to Regulation CF and Regulation D under the Securities Act of 1933, as amended, in the prior month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Optional Prepayment</u>. The Company may prepay this Note in whole or in part at any time or from time to time. Any prepayment of this Note prior to October 4, 2025 shall be subject to a prepayment premium equal to $25,000 minus interest paid through the prepayment date. No prepayment penalty shall apply after October 4, 2025. Any such prepayment shall be applied first to accrued interest and then to the principal amount of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Non<u>-</u>Payment Penalty. If the entire principal amount of the Loan and interest accrued thereon has not been paid by August 4, 2025, the Company shall cause KingsCrowd, Inc. to issue to the Holder a warrant to purchase 300,000 shares of its Class A Common Stock, par value $0.0001 per share, in the form attached hereto as Exhibit A, which such warrant is identical to the to common stock purchase warrant issued to the Holder on the date hereof, except with respect to the date of issuance, the number of shares of Class A Common Stock subject to purchase and the expiration date of the warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Interest.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Interest Rate</u>. The outstanding principal amount of this Note shall bear simple interest at the Applicable Interest Rate commencing as of the date of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Computation of Interest</u>. All computations of interest shall be made on the basis of a year of 360 days and the actual number of days elapsed. Interest shall accrue on the principal amount of this Note commencing as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Interest Rate Limitation</u>. If at any time and for any reason whatsoever, the interest rate payable on this Note shall exceed the maximum rate of interest permitted to be charged by the Holder to the Company under applicable Law, that portion of each sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest permitted by applicable Law shall be deemed a voluntary prepayment of principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Payment Mechanics.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Manner of Payment</u>. All payments of interest and principal shall be made in lawful money of the United States of America no later than 12:00 PM on the date on which such payment is due by cashier's check, certified check or by wire transfer of immediately available funds to the Holder's account at a bank specified by the Holder in writing to the Company from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Application of Payments</u>. All payments made hereunder shall be applied first, to the payment of any fees or charges outstanding hereunder, second, to accrued interest and third, to the payment of the principal amount outstanding under the Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Business Day Convention</u>. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Events of Default.** The occurrence of any of the following shall constitute an Event of Default hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Failure to Pay</u>. The Company fails to pay (i) any principal amount of this Note when due; or (ii) interest or any other amount when due and such failure continues for ten (10) days after written notice to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Sale of Assets</u>. The sale of a material portion of the business and assets of the Company which does not make provision for the repayment of this Note

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Bankruptcy</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company commences any case, proceeding or other action (A) under any existing or future law relating to bankruptcy, insolvency, reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or the Company makes a general assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there is commenced against the Company any case, proceeding or other action of a nature referred to in clause (i) above which (A) results in the entry of an order for relief or any such adjudication or appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60) days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there is commenced against the Company any case, proceeding or other action seeking issuance of a warrant of attachment, execution or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which has not been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii) or (iii) above; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) J<u>udgments</u>. A judgment or decree is entered against the Company in excess of $200,000 and such judgment or decree has not been vacated, discharged, stayed or bonded pending appeal within ninety (90) days from the entry thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Remedies.** Upon the occurrence of an Event of Default and at any time thereafter during the continuance of such Event of Default, the Holder may at its option, by written notice to the Company (a) declare the entire principal amount of this Note, together with all accrued interest thereon and all other amounts payable hereunder, immediately due and payable and/or (b) exercise any or all of its rights, powers or remedies under applicable law; provided, however that, if an Event of Default described in Section 6(c) shall occur, the principal of and accrued interest on this Note shall become immediately due and payable without any notice, declaration, presentment, demand or other act on the part of the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Security Interest.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Grant of Security Interest</u>. As security for Secured Obligations, the Company hereby pledges, assigns, transfers and grants to Holder a first priority lien and continuing security interest in favor of Holder in and to the Collateral (the "**Security Interest**").

This Security Interest shall (i) remain in full force and effect until the full performance of all Obligations hereunder, (ii) be binding upon the Company and its successors and assigns and (iii) inure to the benefit of the Holder and its successors and assigns. Upon the occurrence, and during the continuation, of an Event of Default, Holder shall have with respect to the Collateral all rights and remedies of a secured party under the UCC or other applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Perfection of Security Interest; Execution of Documents; Further Assurances</u>. The Company shall execute such documents and instruments, including, without limitation, a security agreement, financing statements, continuation statements, assignments and certificates with respect to the Collateral pursuant to the UCC and otherwise as may be necessary or reasonably requested by Holder to perfect or continue or renew the security interests granted hereby, in each case in form reasonably satisfactory to Holder. The Company grants to Holder the right, at any time and from time to time at Holder's option, and at the Company's expense, to file any or all such financing statements, continuation statements, and other documents pursuant to the UCC and otherwise as Holder reasonably may deem necessary or desirable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Company hereunder, without the signature of the Company where permitted by law. The Company agrees to provide all information required by Holder pursuant to this paragraph promptly to Holder upon request. The Company agrees to pay the cost of filing the same in all public offices where filing is necessary or reasonably requested by Holder, and will pay any and all recording, transfer or filing taxes that may be due in connection with any such filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Attorney in Fact</u>. The Company hereby appoints Holder as the Company's attorney-in-fact, with full authority in the place and stead of the Company and in the name of the Company or otherwise, from time to time during the continuance of an Event of Default in Holder's discretion to take any action and to execute any instrument which Holder may deem necessary or advisable to accomplish the purposes of this Note and to do all other things necessary to preserve and protect the Collateral and to make collections and to protect Holder's security interest in the Collateral (but Holder shall not be obligated to and shall have no liability to the Company or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Company hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. Holder shall not be liable to the Company for any action taken with respect to the Collateral while enforcing his rights under this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Release of Security Interest</u>. Upon the satisfaction by the Company of all of its obligations under the Note, either upon the full conversion of this Note by Holder or the payment of all amounts of principal and interest due under this Note, the security interest granted hereby shall terminate and all rights to the Collateral shall revert to the Company and the Holder shall promptly surrender this Note by delivering it to the Company at its address set forth above, and the total amount of this Note shall be deemed paid in full. The Holder shall then have no further rights hereunder, and this Note shall thereupon be cancelled as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All notices, requests or other communications required or permitted to be delivered hereunder shall be delivered in writing to such address as a Party may from time to time specify in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Notices if (i) mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received, (ii) sent by facsimile during the recipient's normal business hours shall be deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given at the opening of the recipient's business on the next Business Day) and (iii) sent by e-mail shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Expenses</u>. The Company shall reimburse the Holder on demand for all reasonable out-of-pocket costs, expenses and fees (including reasonable expenses and fees of its counsel) incurred by the Holder in connection with the transactions contemplated hereby including the negotiation, documentation and execution of this Note and the enforcement of the Holder's rights hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Governing Law</u>. This Note and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Note and the transactions contemplated hereby shall be governed by the laws of the State of North Carolina.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver of Jury Trial</u>. THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Counterparts; Integration; Effectiveness</u>. This Note and any amendments, waivers, consents or supplements hereto may be executed in counterparts, each of which shall constitute an original, but all taken together shall constitute a single contract. This Note constitutes the entire contract between the Parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto. Delivery of an executed counterpart of a signature page to this Note by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Successors and Assigns</u>. This Note may be assigned, transferred or negotiated by the Holder to any Person at any time without notice to or the consent of the Company. The Company may not assign or transfer this Note or any of its rights hereunder without the prior written consent of the Holder. This Note shall inure to the benefit of and be binding upon the parties hereto and their permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Waiver of Notice</u>. The Company hereby waives presentment, demand for payment, protest, notice of dishonor, notice of protest or nonpayment, notice of acceleration of maturity and diligence in connection with the enforcement of this Note or the taking of any action to collect sums owing hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Amendments and Waivers</u>. No term of this Note may be waived, modified or amended except by an instrument in writing signed by both of the parties hereto. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Headings</u>. The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand or limit any of the terms or provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Waiver; Cumulative Remedies</u>. No failure to exercise and no delay in exercising on the part of the Holder, of any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Severability</u>. If any term or provision of this Note is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Note or invalidate or render unenforceable such term or provision in any other jurisdiction.

IN WITNESS WHEREOF, the Company has executed this Note as of April 4, 2025.

---

| |
|:---|
| **KINGSCROWD ADSORY, INC.** |
| By:  |
| Name: Christopher Lustrino  |
| Title: President  |

---

## Ex1K-5

**EXHIBIT 5.21**

**AMENDMENT NO. 1 TO** 

**MEMBERSHIP INTEREST SUBSCRIPTION AND OPTION AGREEMENT**

Amendment No. 1 to Membership Interest Subscription and Option Agreement, dated April 4, 2025 (the "**Amendment**"), by and between LawBot LLC, a Delaware limited liability company (the "**Company**"), and KingsCrowd, Inc., a Delaware corporation (the "**Purchaser**" and together with the Company, the "**Parties**," and each, a "**Party**").

WHEREAS, the Parties have entered into a Membership Interest Subscription and Option Agreement, dated as of January 23, 2023 (as amended, supplemented, or otherwise modified from time to time, the "**Existing Agreement**"); and

WHEREAS, the Parties desire to amend certain provisions in the Existing Agreement relating to the exercise of the Option (as defined in the Existing Agreement), on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Capitalized terms used and not defined in this Amendment have the respective meanings assigned to them in the Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Amendments to the Existing Agreement</u>. As of the Effective Date (as defined in Section 3), the Existing Agreement is hereby amended or modified as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Section 2.2(b) of the Existing Agreement is hereby amended by deleting said section in its entirety and inserting in place thereof the following:

"(b) No later than March 1, 2026, the Company shall deliver to the Purchaser a statement certified by the Chief Executive Officer of the Company setting forth the Adjusted 2025 Revenue and the Option Payment Amount (the "***Option Statement***"). No later than sixty (60) days following its receipt of the Option Statement (the "***Option Expiration Date***"), the Purchaser shall exercise the Option Units by paying a sum equal to the Option Payment Amount paid by wire transfer in immediately available funds to an account specified by Michael Knox, the Chief Executive Officer of the Company prior to the date of the Existing Agreement, for distribution among holders of Units other than the Company (each such Person, an "***Outstanding Unit Holder***") as detailed in Article V of Second Amended And Restated Limited Liability Company Operating Agreement Of Lawbot LLC dated January 23, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section 2.2(c) of the Existing Agreement is hereby amended by deleting said section in its entirety and inserting in place thereof the following:

"(c) In the event the Purchaser or any of its creditors files at any time for protection of the Purchaser under federal or state bankruptcy Laws or the Purchaser defaults on the payment of any indebtedness in the amount greater than $25,000, then the Company shall have the right to repurchase the Subscription Units and Option Units from the Company (or any assignee of the Units) in exchange for payment of one dollar ($1.00). Such repurchase transaction shall take place within five (5) Business Days following the date of the occurrence of an event under clause (ii) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Section 2.2 of the Existing Agreement is hereby amended by adding the following new section 2.2(d):

"(d) Purchaser agrees to use its best efforts make the Option Payment Amount on the Option Purchase Closing Date, including, if necessary, by completing an equity or debt financing to fund the Option Payment Amount. If the Purchaser is unable to pay the entire Option Payment Amount in cash on the Option Payment Date, the portion of the Option Payment Amount paid in cash shall be disbursed as instructed by Michael Knox per Article V of the Second Amended And Restated Limited Liability Company Operating Agreement of Lawbot LLC dated January 23, 2025 (the "**LLC Agreement**") to a promissory note equal to the difference between the Option Payment Amount and the amount paid in cash in accordance with the instructions of Michael Knox as instructed by Michael Knox per Article V of the LLC Agreement (the "***Option Purchase Note***"). The Option Purchase Note shall (i) mature three years after issuance, (ii) be senior to all other debt obligations of Purchaser incurred by Purchaser after the date the Option Purchase Notes are issued, (iii) bear interest at the rate of 12% per annum, (iv) be payable in equal monthly installments of principal and interest over a 3 year full amortization, (v) be secured by all assets of the Company, (vi) be guaranteed by LawBot LLC and (vii) be secured with a second priority lien on the assets of Kings Crowd Advisory, with the first priority lien having been granted to Nicole Loftus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Date of Effectiveness; Limited Effect</u>. This Amendment will be deemed effective as of the date first written above (the "**Effective Date**"). Except as expressly provided in this Amendment, all of the terms and provisions of the Existing Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the Parties. Without limiting the generality of the foregoing, the amendments contained herein will not be construed as an amendment to or waiver of any other provision of the Existing Agreement or as a waiver of or consent to any further or future action on the part of either Party that would require the waiver or consent of the other Party. On and after the Effective Date, each reference in the Existing Agreement to "this Agreement," "the Agreement," "hereunder," "hereof," "herein," or words of like import will mean and be a reference to the Existing Agreement as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Representations and Warranties</u>. Each Party hereby represents and warrants to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It has the full right, power, and authority to enter into this Amendment and to perform its obligations hereunder and under the Existing Agreement as amended by this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution of this Amendment by the individual whose signature is set forth at the end of this Amendment on behalf of such Party, and the delivery of this Amendment by such Party, have been duly authorized by all necessary action on the part of such Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Amendment has been executed and delivered by such Party and (assuming due authorization, execution, and delivery by the other Party) constitutes the legal, valid, and binding obligation of such Party, enforceable against such Party in accordance with its terms, except as may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws and equitable principles related to or affecting creditors' rights generally or the effect of general principles of equity.

EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS SECTION 4 OF THIS AMENDMENT, (A) NEITHER PARTY HERETO NOR ANY PERSON ON SUCH PARTY'S BEHALF HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, EITHER ORAL OR WRITTEN, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE, OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) EACH PARTY HERETO ACKNOWLEDGES THAT IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY THE OTHER PARTY, OR ANY OTHER PERSON ON SUCH OTHER PARTY'S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN THIS SECTION 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Amendment is governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict of laws provisions of such State.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Amendment shall inure to the benefit of and be binding upon each of the Parties and each of their respective successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The headings in this Amendment are for reference only and do not affect the interpretation of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) This Amendment may be executed in counterparts, each of which is deemed an original, but all of which constitute one and the same agreement. Delivery of an executed counterpart of this Amendment electronically shall be effective as delivery of an original executed counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This Amendment constitutes the sole and entire agreement between the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, with respect to such subject matter.

[Signature page follows.]

IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above.

---

| |
|:---|
| LAWBOT, LLC |
| By |
| <br> Name: Michael Knox<br>Title: Manager |
| KINGSCROWD, INC. |
| By |
| <br> Name: Christopher Lustrino<br>Title: President |

---

**MEMBERS HOLDING CLASS A UNITS IN LAWBOT LLC**

---

| | | |
|:---|:---|:---|
| Michael Knox | Gennady Spirin | Gennady Spirin |
| Georgia Quinn |  |  |
| ESQVest LLC | KingsCrowd, Inc. | KingsCrowd, Inc. |
| By: | By: |  |
| Name: | Name: | <u>Christopher Lustrino</u> |
| Title: | Title: | President |

---

## Form 1-K Filing Summary

### Filer Information

**Issuer CIK:** 0001744757

**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:** 12-31-2024

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

**Type of Report:** Annual Report

**Fiscal Year End:** 12-31-2024

**Exact Name of Issuer:** KingsCrowd, Inc.

**CIK:** 0001744757

**Jurisdiction of Incorporation:** DE

**IRS Number:** 82-3708101

**Address:** 410 University Avenue, Westwood, MA 02090

**Issuer Phone Number:** 914-826-4520

**Title of each class of securities issued pursuant to Regulation A:** Class A Common Stock

### Item 2: Ongoing Reporting Requirements

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