# EDGAR Filing Document

**Accession Number:** 0001962609
**File Stem:** 0001669191-23-000114
**Filing Date:** 2023-2
**Character Count:** 165141
**Document Hash:** 242cc7da0286a23604ac814058f7ee47
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001669191-23-000114.hdr.sgml**: 20230203

**ACCESSION NUMBER**: 0001669191-23-000114

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230203

**DATE AS OF CHANGE**: 20230203

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Aqua Research Inc.
- **CENTRAL INDEX KEY:** 0001962609
- **IRS NUMBER:** 882838204
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31727
- **FILM NUMBER:** 23585340

**BUSINESS ADDRESS:**
- **STREET 1:** 5601 MIDWAY PARK PLACE NE
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87109
- **BUSINESS PHONE:** 5053620575

**MAIL ADDRESS:**
- **STREET 1:** 5601 MIDWAY PARK PLACE NE
- **CITY:** ALBUQUERQUE
- **STATE:** NM
- **ZIP:** 87109

## Ex-99

html![](offeringpage.jpg)

### Attached PDF Documents

**Attachment 1:** `offeringstatement.pdf`

# Offering Statement for Aqua Research, Inc.

**(“Aqua Research,” “we,” “our,” or the “Company”)**

This document is generated by a website that is operated by Netcapital Systems LLC (“Netcapital”), which is not a registered broker-dealer. Netcapital does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included in this document are the responsibility of, the applicable issuer of such securities. Netcapital has not taken any steps to verify the adequacy, accuracy or completeness of any information. Neither Netcapital nor any of its officers, directors, agents and employees makes any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information in this document or the use of information in this document.

All Regulation CF offerings are conducted through Netcapital Funding Portal Inc. (“Portal”), an affiliate of Netcapital, and a FINRA/SEC registered funding-portal. For inquiries related to Regulation CF securities activity, contact Netcapital Funding Portal Inc.:

**Paul Riss:**

paul@netcapital.com

Netcapital and Portal do not make investment recommendations and no communication, through this website or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Equity crowdfunding investments in private placements, Regulation A, D and CF offerings, and start-up investments in particular are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. Companies seeking startup investments through equity crowdfunding tend to be in earlier stages of development and their business model, products and services may not yet be fully developed, operational or tested in the public marketplace. There is no guarantee that the stated valuation and other terms are accurate or in agreement with the market or industry valuations. Additionally, investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. In the most sensible investment strategy for start-up investing, start-ups should only be part of your overall investment portfolio. Further, the start-up portion of your portfolio may include a balanced portfolio of different start-ups. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.

The information contained herein includes forward-looking statements. These statements relate to future events or to future financial performance, and involve known and unknown risks, uncertainties, and other factors, that may cause actual results to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties, and other factors, which are, in some cases, beyond the company’s control and which could, and likely will, materially affect actual results, levels of activity, performance, or achievements. Any forward-looking statement reflects the current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. No obligation exists to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

## The Company

**1. What is the name of the issuer?**

Aqua Research, Inc.

5601 Midway Park Place NE

Albuquerque, NM 87109

## Eligibility

**2. The following are true for Aqua Research, Inc.:**

- Organized under, and subject to, the laws of a State or territory of the United States or the District of Columbia.
- Not subject to the requirement to file reports pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934.
- Not an investment company registered or required to be registered under the Investment Company Act of 1940.
- Not ineligible to rely on this exemption under Section 4(a)(6) of the Securities Act as a result of a disqualification specified in Rule 503(a) of Regulation Crowdfunding. (For more information about these disqualifications, see Question 30 of this Question and Answer format).
- Has filed with the Commission and provided to investors, to the extent required, the ongoing annual reports required by Regulation Crowdfunding during the two years immediately preceding the filing of this offering statement (or for such shorter period that the issuer was required to file such reports).
- Not a development stage company that (a) has no specific business plan or (b) has indicated that its business plan is to engage in a merger or acquisition with an unidentified company or companies.

**3. Has the issuer or any of its predecessors previously failed to comply with the ongoing reporting requirements of Rule 202 of Regulation Crowdfunding?**

No.

## Directors, Officers and Promoters of the Company

**4. The following individuals (or entities) represent the company as a director, officer or promoter of the offering:**

*Name*

Gene Rabent

*Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates*

| Start Date | End Date | Company | Position / Title |
| --- | --- | --- | --- |
| 01/01/2018 | 05/01/2022 | CTE Global | VP, Sales |
| 07/01/2022 | Present | Aqua Research, Inc. | CEO |
| 05/01/2022 | 07/01/2022 | Retired | Retired |

Short bio: Gene is an experienced C-level executive in the water, energy, and chemical industry who is known for helping entrepreneurs to best implement their great ideas. Gene previously acted as Senior VP at Tri-Water Holdings, achieving a successful exit and investor ROI 5 years after start-up.; Education: MBA, J.L. Kellogg School of Management, Northwestern University, Evanston, IL, 1996; B.S. in Chemistry, Daemen College, Amherst, NY, 1979; Volunteer: Advisory Board - Enhance Giving; Volunteer - H.E.L.P. (“Homes for Endangered and Lost Pets”); LinkedIn: https://www.linkedin.com/in/gene-rabent-7356178/

# Name

Rodney Herrington

# Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates

Start Date End Date Company Position / Title

06/10/2022 Present Aqua Research, Inc. Founder & CTO

09/01/2011 06/10/2022 Aqua Research LLC Founder & CEO

01/01/2011 01/01/2018 Aqua Membranes, Inc. Founder & CEO

01/01/2018 Present Aqua Membranes, Inc. Founder & CTO

Short bio: Rodney is a born innovator and inventor of multiple technologies. He has 30+ years of experience with water and disinfection and can solve just about any technical problem.; 50 years in engineering. Registered professional engineer.; 30 year experience in electrolytic water treatment technology and reverse osmosis membrane technology.; Also founder of Aqua Membranes Inc. ; Education: B.S. Texas A&M University, Aerospace Engineering; M.S. Texas A&M University, Mechanical Engineering; Business courses post grad school.; LinkedIn: https://www.linkedin.com/in/rodney-herrington/

# Name

Terri Herrington

# Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates

Start Date End Date Company Position / Title

12/31/2016 06/10/2022 Aqua Research LLC Board Member

06/10/2022 Present Aqua Research Inc. Board Member

01/01/2018 Present CompX International Inc. Director

01/01/2018 Present Directors of Valhi Inc. Director

Short bio: Terri L. Herrington, age 67, is a private investor and has served on the Boards of Directors of Valhi Inc. and CompX International Inc., since 2018. She has also served on their Audit Committees and as primary Audit Committee Financial Expert for both companies since 2018. She retired from International Paper Company, a worldwide producer of fiber-based packaging, pulp and paper, at the end of 2016. Ms. Herrington worked for International Paper for nine years, including as their global Vice President Finance, their Consumer Packaging Vice President Finance and Strategy, and as their Vice President Internal Audit. Prior to joining International Paper, Ms. Herrington spent over 25 years with BP p.l.c. (and the former Amoco Corporation), a global producer of oil and gas, where she held a variety of finance and commercial positions, lastly as their global Director of Audit for Finance and Financial Control.

# Name

Lois Warren

# Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates

**Start Date End Date Company Position / Title**

06/10/2022 Present Aqua Research Inc. COO

09/01/2011 06/10/2022 Aqua Research, LLC COO & Secretary

Short bio: Lois is a biologist formerly involved in R&D at NanoPore Inc., developing water from air technology and man-portable cooling systems. She manages all manufacturing, development, and distribution of the company's products.

**Name**

Katie Rich

**Principal occupation and employment responsibilities during at least the last three (3) years with start and ending dates**

**Start Date End Date Company Position / Title**

09/01/2011 06/10/2022 Aqua Research, LLC VP Marketing

06/10/2022 Present Aqua Research Inc. VP Marketing

Short bio: Katie has 25-year history marketing on-site chlorination systems. She graduated summa cum laude from Southern Methodist University with a BBA in Marketing.

## Principal Security Holders

5. Provide the name and ownership level of each person, as of the most recent practicable date, who is the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power. To calculate total voting power, include all securities for which the person directly or indirectly has or shares the voting power, which includes the power to vote or to direct the voting of such securities. If the person has the right to acquire voting power of such securities within 60 days, including through the exercise of any option, warrant or right, the conversion of a security, or other arrangement, or if securities are held by a member of the family, through corporations or partnerships, or otherwise in a manner that would allow a person to direct or control the voting of the securities (or share in such direction or control - as, for example, a co-trustee) they should be included as being "beneficially owned." You should include an explanation of these circumstances in a footnote to the "Number of and Class of Securities Now Held." To calculate outstanding voting equity securities, assume all outstanding options are exercised and all outstanding convertible securities converted.

### Rodney Herrington

| Securities: | 1,386,770 |
| --- | --- |
| Class: | Common Stock |
| Voting Power: | 27.2% |

## Business and Anticipated Business Plan

6. Describe in detail the business of the issuer and the anticipated business plan of the issuer.

The Company was formed in 2011. The founder, Rodney Herrington, has been working with electrolytic systems since 1994. He has developed systems of all sizes to treat from point-of-use applications to large

municipal and industrial systems and has worked with distributors worldwide to deploy the technology in drinking water, wastewater, aquatics, cooling towers, beverage plants, and others. Our new CEO, Gene Rabent, has been involved in the chemical business for more than 30 years, including chlorine systems, cooling towers, and many others. We have salesmen who know our technology that are committed to join our team. We recently merged Aqua Research LLC to into the new Delaware corporation, Aqua Research, Inc. on June 10, 2022. Since the beginning, Aqua Research has been involved in electrolytic systems for converting saltwater brine to liquid chlorine. We started with a small portable solar power hand-held device that only requires users in developing countries to have salt in order to disinfect found water. We then developed a small briefcase size portable system that has been deployed in a variety of applications, but primarily for making chlorine solutions for sanitizing health care facilities in developing countries. We are working with PATH in Seattle (one of the largest non-government organizations (NGOs) consistently funded by the Gates Foundation every year. PATH is also funded by organizations such as the Hilton Foundation. We are working directly with Catholic Relief Services (CRS), World Vision, Operation Blessing International, USAID programs and UNICEF. Our product line has grown to larger systems that make thousands of gallons per day of chlorine for the Hub-and-Spoke model such as five major cities in Haiti under the USAID funded Sante project. We are now working with PATH to introduce our technology to ministers of health in Ghana and Rwanda, and other countries, to get our technology adopted in the national supply chains of those countries. While this program has been slow to incubate, the upside potential for adoption in many countries is very large. In order to accelerate sales, we are using the same technology, common to all applications, to penetrate the industrial cooling tower industry where we have extensive prior experience. Our cost to produce disinfectants is from 4 to 8 times cheaper than conventional biocides in 2,000,000 cooling towers across the US. We believe that lower operating costs provide a shorter time to ROI for the capex associated with our equipment. We are pursuing purchase or lease models - depending on customer preference. All of our technology has been field proven under the worst conditions and is reliable.

Aqua Research currently has 5 employees.

## Risk Factors

*A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment.*

*In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document.*

*The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.*

*These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.*

### **7. Material factors that make an investment in Aqua Research, Inc. speculative or risky:**

1. We face risks related to health epidemics and other outbreaks, which could significantly disrupt the Company's operations and could have a material adverse impact on us. The outbreak of pandemics and epidemics could materially and adversely affect the Company's business, financial condition, and results of operations. If a pandemic occurs in areas in which we have material operations or sales, the Company's business activities originating from affected areas, including sales, materials, and supply chain related activities, could be adversely affected. Disruptive activities could include the temporary

closure of facilities used in the Company's supply chain processes, restrictions on the export or shipment of products necessary to run the Company's business, business closures in impacted areas, and restrictions on the Company's employees' or consultants' ability to travel and to meet with customers, vendors or other business relationships. The extent to which a pandemic or other health outbreak impacts the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of a virus and the actions to contain it or treat its impact, among others. Pandemics can also result in social, economic, and labor instability which may adversely impact the Company's business. If the Company's employees or employees of any of the Company's vendors, suppliers or customers become ill or are quarantined and in either or both events are therefore unable to work, the Company's operations could be subject to disruption. The extent to which a pandemic affects the Company's results will depend on future developments that are highly uncertain and cannot be predicted.

1. 2. The Company may never receive a future equity financing, or undergo a liquidity event such as a sale of the Company or an initial public offering (IPO). If a liquidity event does not occur, such as a sale of the Company or an IPO, the purchasers could be left holding Company securities in perpetuity. The Company's securities have numerous transfer restrictions and will likely be highly illiquid, with potentially no secondary market on which to sell them. The securities have only a minority of voting rights and do not provide the ability to direct the Company or its actions.
2. 3. In order to expand, the Company is raising funds, and may raise additional funds in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the Company.
3. 4. We rely on investment funds in order to use resources to build the necessary tech and business infrastructure to be successful in the long-term. In the event of competitors being better capitalized than we are, that would give them a significant advantage in marketing and operations.
4. 5. Potential customers may be less willing to invest in innovation and forward-looking improvements if they are facing an economic downturn. This may temporarily reduce our market size. Furthermore, a global crisis might make it harder to diversify.
5. 6. The Company may extend the Offering deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the maximum offering amount even after the Offering deadline stated herein is reached. Your investment will not be accruing interest during this time and will simply be held until such time that Offering is closed, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you.
6. 7. No governmental agency has reviewed the Company's offering and no state or federal agency has passed upon either the adequacy of the disclosure contained herein or the fairness of the terms of this offering.
7. 8. Any valuation at this stage is difficult to assess. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
8. 9. The Company does not anticipate paying any cash dividends for the foreseeable future. The Company currently intends to retain future earnings, if any, for the foreseeable future, to repay indebtedness and to support its business. The Company does not intend in the foreseeable future to pay any dividends to holders of its shares of common stock.
9. 10. The failure to attract and retain key employees could hurt our business, and our management does not have extensive experience in the operation of businesses such as ours. Our success also depends upon our ability to attract and retain numerous highly qualified employees. Our failure to attract and retain skilled management and employees may prevent or delay us from pursuing certain opportunities. If we fail to successfully fill many management roles, fail to fully integrate new members of our management team, lose the services of key personnel, or fail to attract additional qualified personnel, it will be significantly more difficult for us to achieve our growth strategies and success.

11. We are highly dependent on the services of our founder. Our future business and results of operations depend in significant part upon the continued contributions of our CEO and CTO. If we lose those services or if they fail to perform in their current positions, or if we are not able to attract and retain skilled employees in addition to our CEO, CTO and the current team, this could adversely affect the development of our business plan and harm our business. In addition, the loss of any other member of the board of directors or executive officers could harm the Company's business, financial condition, cash flow and results of operations.
12. Our management may not be able to control costs in an effective or timely manner. The Company's management anticipates it can use reasonable efforts to assess, predict and control costs and expenses. However, implementing our business plan may require more employees, capital equipment, supplies or other expenditure items than management has predicted. Likewise, the cost of compensating employees and consultants or other operating costs may be higher than management's estimates, which could lead to sustained losses.
13. Start-up investing is risky. Investing in early-stage companies is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the Company.
14. Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the Company does not have any plans to list these shares on an exchange or other secondary market. At some point the Company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a "liquidation event" occurs. A "liquidation event" is when the Company either lists their shares on an exchange, is acquired, or goes bankrupt.
15. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.

You should not rely on the fact that our Form C, and if applicable Form D is accessible through the U.S. Securities and Exchange Commission's EDGAR filing system as an approval, endorsement or guarantee of compliance as it relates to this Offering.

16. Neither the Offering nor the Securities have been registered under federal or state securities laws, leading to an absence of certain regulation applicable to the Company.

The securities being offered have not been registered under the Securities Act of 1933 (the "Securities Act"), in reliance on exemptive provisions of the Securities Act. Similar reliance has been placed on apparently available exemptions from securities registration or qualification requirements under applicable state securities laws. No assurance can be given that any offering currently qualifies or will continue to qualify under one or more of such exemptive provisions due to, among other things, the adequacy of disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change of any securities law or regulation that has retroactive effect. If, and to the extent that, claims or suits for rescission are brought and successfully concluded for failure to register any offering or other offerings or for acts or omissions constituting offenses under the Securities Act, the Securities Exchange Act of 1934, or applicable state securities laws, the Company could be materially adversely affected, jeopardizing the Company's ability to operate successfully. Furthermore, the human and capital resources of the Company could be adversely affected by the need to defend actions under these laws, even if the Company is ultimately successful in its defense.

17. The Company has the right to extend the Offering Deadline, conduct multiple closings, or end the Offering early.

The Company may extend the Offering Deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the Minimum Amount even after the Offering Deadline stated herein is reached. While you have the right to cancel your investment up to 48 hours before an Offering Deadline, if you choose to not cancel your investment, your investment will not be accruing interest during this time and will simply be held until such time as the new Offering Deadline is reached without the Company receiving the Minimum Amount, at which time it will be returned to you without interest or deduction, or the Company receives the Minimum Amount, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you. If the Company reaches the target offering amount prior to the Offering Deadline, they may conduct the first of multiple closings of the Offering prior to the Offering Deadline, provided that the Company gives notice to the investors of the closing at least five business days prior to the closing (absent a material change that would require an extension of the Offering and reconfirmation of the investment commitment). Thereafter, the Company may conduct additional closings until the Offering Deadline. The Company may also end the Offering early; if the Offering reaches its target offering amount after 21-calendar days but before the deadline, the Company can end the Offering with 5 business days' notice. This means your failure to participate in the Offering in a timely manner, may prevent you from being able to participate - it also means the Company may limit the amount of capital it can raise during the Offering by ending it early.

18. *The Company's management may have broad discretion in how the Company uses the net proceeds of the Offering.*

Despite that the Company has agreed to a specific use of the proceeds from the Offering, the Company's management will have considerable discretion over the allocation of proceeds from the Offering. You may not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately.

19. *The Securities issued by the Company will not be freely tradable until one year from the initial purchase date. Although the Securities may be tradable under federal securities law, state securities regulations may apply, and each Investor should consult with his or her attorney.*

You should be aware of the long-term nature of this investment. There is not now and likely will not be a public market for the Securities. Because the Securities offered in this Offering have not been registered under the Securities Act or under the securities laws of any state or non-United States jurisdiction, the Securities have transfer restrictions and cannot be resold in the United States except pursuant to Rule 501 of Regulation CF. It is not currently contemplated that registration under the Securities Act or other securities laws will be affected. Limitations on the transfer of the shares of Securities may also adversely affect the price that you might be able to obtain for the shares of Securities in a private sale. Investors should be aware of the long-term nature of their investment in the Company. Investors in this Offering will be required to represent that they are purchasing the Securities for their own account, for investment purposes and not with a view to resale or distribution thereof.

20. *Investors will not be entitled to any inspection or information rights other than those required by Regulation CF.*

Investors will not have the right to inspect the books and records of the Company or to receive financial or other information from the Company, other than as required by Regulation CF. Other security holders of the Company may have such rights. Regulation CF requires only the provision of an annual report on Form C and no additional information - there are numerous methods by which the Company can terminate annual report obligations, resulting in no information rights, contractual, statutory or otherwise, owed to Investors. This lack of information could put Investors at a disadvantage in general and with respect to other security holders.

21. *The shares of Securities acquired upon the Offering may be significantly diluted as a consequence of subsequent financings.*

Company equity securities will be subject to dilution. Company intends to issue additional equity to future employees and third-party financing sources in amounts that are uncertain at this time, and as a consequence, holders of Securities will be subject to dilution in an unpredictable amount. Such dilution may reduce the purchaser’s economic interests in the Company.

22. The amount of additional financing needed by Company will depend upon several contingencies not foreseen at the time of this Offering. Each such round of financing (whether from the Company or other investors) is typically intended to provide the Company with enough capital to reach the next major corporate milestone. If the funds are not sufficient, Company may have to raise additional capital at a price unfavorable to the existing investors. The availability of capital is at least partially a function of capital market conditions that are beyond the control of the Company. There can be no assurance that the Company will be able to predict accurately the future capital requirements necessary for success or that additional funds will be available from any source. Failure to obtain such financing on favorable terms could dilute or otherwise severely impair the value of the investor’s Company securities.

23. *There is no present public market for these Securities and we have arbitrarily set the price.*

The offering price was not established in a competitive market. We have arbitrarily set the price of the Securities with reference to the general status of the securities market and other relevant factors. The Offering price for the Securities should not be considered an indication of the actual value of the Securities and is not based on our net worth or prior earnings. We cannot assure you that the Securities could be resold by you at the Offering price or at any other price.

24. In addition to the risks listed above, businesses are often subject to risks not foreseen or fully appreciated by the management. It is not possible to foresee all risks that may affect us. Moreover, the Company cannot predict whether the Company will successfully effectuate the Company’s current business plan. Each prospective Investor is encouraged to carefully analyze the risks and merits of an investment in the Securities and should take into consideration when making such analysis, among other, the Risk Factors discussed above.

25. THE SECURITIES OFFERED INVOLVE A HIGH DEGREE OF RISK AND MAY RESULT IN THE LOSS OF YOUR ENTIRE INVESTMENT. ANY PERSON CONSIDERING THE PURCHASE OF THESE SECURITIES SHOULD BE AWARE OF THESE AND OTHER FACTORS SET FORTH IN THIS OFFERING STATEMENT AND SHOULD CONSULT WITH HIS OR HER LEGAL, TAX AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN THE SECURITIES. THE SECURITIES SHOULD ONLY BE PURCHASED BY PERSONS WHO CAN AFFORD TO LOSE ALL OF THEIR INVESTMENT.

## The Offering

Aqua Research, Inc. (“Company”) is offering securities under Regulation CF, through Netcapital Funding Portal Inc. (“Portal”). Portal is a FINRA/SEC registered funding portal and will receive cash compensation equal to 4.9% of the value of the securities sold through Regulation CF. Investments made under Regulation CF involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest.

The Company plans to raise between $10,000 and $1,234,999 through an offering under Regulation CF. Specifically, if we reach the target offering amount of $10,000, we may conduct the first of multiple or rolling closings of the offering early if we provide notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

In the event The Company fails to reach the offering target of $10,000, any investments made under the offering will be cancelled and the investment funds will be returned to the investor.

#### **8. What is the purpose of this offering?**

The proceeds from this offering are planned to be used for primarily sales, product development, and general and administrative expenses.

#### **9. How does the issuer intend to use the proceeds of this offering?**

| Uses | If Target Offering Amount Sold | If Maximum Amount Sold |
| --- | --- | --- |
| Intermediary Fees | $490 | $60,515 |
| Unallocated Funds | $0 | $1 |
| Sales | $0 | $617,499 |
| Product Development | $0 | $308,750 |
| General & Administrative | $9,510 | $248,235 |
| Total Use of Proceeds | $10,000 | $1,234,999 |

#### **10. How will the issuer complete the transaction and deliver securities to the investors?**

In entering into an agreement on the Netcapital Funding Portal to purchase securities, both investors and Aqua Research, Inc. must agree that a transfer agent, which keeps records of our outstanding Common Stock (the 'Securities'), will issue digital Securities in the investor's name (a paper certificate will not be printed). Similar to other online investment accounts, the transfer agent will give investors access to a web site to see the number of Securities that they own in our company. These Securities will be issued to investors after the deadline date for investing has passed, as long as the targeted offering amount has been reached. The transfer agent will record the issuance when we have received the purchase proceeds from the escrow agent who is holding your investment commitment.

#### **11. How can an investor cancel an investment commitment?**

You may cancel an investment commitment for any reason until 48 hours prior to the deadline identified in the offering by logging in to your account with Netcapital, browsing to the Investments screen, and clicking to cancel your investment commitment. Netcapital will notify investors when the target offering amount has been met. If the issuer reaches the target offering amount prior to the deadline identified in the offering materials, it may close the offering early if it provides notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). If an investor does not cancel an investment commitment before the 48-hour period prior to the offering deadline, the funds will be released to the issuer upon closing of the offering and the investor will receive securities in exchange for his or her investment. If an investor does not reconfirm his or her investment commitment after a material change is made to the offering, the investor's investment commitment will be cancelled and the committed funds will be returned.

12. Can the Company perform multiple closings or rolling closings for the offering?

If we reach the target offering amount prior to the offering deadline, we may conduct the first of multiple closings of the offering early, if we provide notice about the new offering deadline at least five business days prior (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Thereafter, we may conduct additional closings until the offering deadline. We will issue Securities in connection with each closing. Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

# Ownership and Capital Structure

## The Offering

13. Describe the terms of the securities being offered.

We are issuing Securities at an offering price of $1.63 per share.

14. Do the securities offered have voting rights?

The Securities are being issued with voting rights. However, so that the crowdfunding community has the opportunity to act together and cast a vote as a group when a voting matter arises, a record owner will cast your vote for you. Please refer to the record owner agreement that you sign before your purchase is complete.

15. Are there any limitations on any voting or other rights identified above?

You are giving your voting rights to the record owner, who will vote the Securities on behalf of all investors who purchased Securities on the Netcapital crowdfunding portal.

16. How may the terms of the securities being offered be modified?

Any provision of the terms of the Securities being offered may be amended, waived or modified by written consent of the majority owner(s) of the Company. We may choose to modify the terms of the Securities before the offering is completed. However, if the terms are modified, and we deem it to be a material change, we need to contact you and you will be given the opportunity to reconfirm your investment. Your reconfirmation must be completed within five business days of receipt of the notice of a material change, and if you do not reconfirm, your investment will be canceled and your money will be returned to you.

## Restrictions on Transfer of the Securities Offered

The securities being offered may not be transferred by any purchaser of such securities during the one-year period beginning when the securities were issued, unless such securities are transferred:

- to the issuer;
- to an accredited investor;
- as part of an offering registered with the U.S. Securities and Exchange Commission; or
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other similar circumstance.

The term “accredited investor” means any person who comes within any of the categories set forth in Rule 501(a) of Regulation D, or who the seller reasonably believes comes within any of such categories, at the time of the sale of the securities to that person.

The term “member of the family of the purchaser or the equivalent” includes a child, stepchild, grandchild, parent, stepparent, grandparent, spouse or spousal equivalent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the purchaser, and includes adoptive relationships. The term “spousal equivalent” means a cohabitant occupying a relationship generally equivalent to that of a spouse.

## Description of Issuer’s Securities

17. What other securities or classes of securities of the issuer are outstanding? Describe the material terms of any other outstanding securities or classes of securities of the issuer.

### Securities

| Class of Security | Amount Authorized | Amount Outstanding | Voting Rights | Other Rights |
| --- | --- | --- | --- | --- |
| Common Stock | 20,000,000 | 4,340,234 | Yes |  |
| Preferred Stock | 5,000,000 | 0 | No | Preferred Stock terms are yet to be determined by the board. |

### Options, Warrants and Other Rights

| Type | Description | Reserved Securities |
| --- | --- | --- |
| Incentive Pool | 765,910 shares of Common Stock are available for issuance under the equity incentive plan. | 765,910 |
| Warrant 1 | Exercise price of $1 per share, up to a total of $25,000 per warrant. Adjusted for a 10:1 stock split. The warrants are exercisable through the tenth anniversary of their issuance barring the occurrence of one of the following: The closing of a firmly underwritten public offering of the Company’s common stock, or the closing of a change in control. | 25,000 |
| Warrant 2 | Exercise price of $1 per share, up to a total of $25,000 per warrant. Adjusted for a 10:1 stock split. The warrants are exercisable through the tenth anniversary of their issuance barring the occurrence of one of the following: The closing of a firmly underwritten public offering of the Company’s common stock, or the closing of a change in control. | 25,000 |

18. How may the rights of the securities being offered be materially limited, diluted or qualified by the rights of any other class of securities?

The existing convertible debt, inclusive of SAFE note agreements, is subject to conversion into equity under certain circumstances, and if they convert you will be diluted by that conversion. In addition, the Company has 5,000 shares reserved for warrant issuance and 765,910 reserved for issuance under the incentive plan. If those shares are issued your ownership in the Company will be diluted.

**19. Are there any differences not reflected above between the securities being offered and each other class of security of the issuer?**

The Company has granted a perpetual waiver of the transfer restrictions listed in the Corporate Bylaws of Aqua Research, Inc. for all Securities sold in this Offering.

**20. How could the exercise of rights held by the principal owners identified in Question 5 above affect the purchasers of Securities being offered?**

The Company's bylaws can be amended by the shareholders of the Company, and directors can be added or removed by shareholder vote. As minority owners, you are subject to the decisions made by the majority owners. The issued and outstanding common stock gives management voting control of the Company. As a minority owner, you may be outvoted on issues that impact your investment, such as the issuance of additional shares, or the sale of debt, convertible debt or assets of the Company.

**21. How are the securities being offered being valued? Include examples of methods for how such securities may be valued by the issuer in the future, including during subsequent corporate actions.**

The price of the Securities was determined solely by the management and bears no relation to traditional measures of valuation such as book value or price-to-earnings ratios. We expect that any future valuation will take the same approach.

**22. What are the risks to purchasers of the securities relating to minority ownership in the issuer?**

As the holder of a majority of the voting rights in the Company, our majority shareholders may make decisions with which you disagree, or that negatively affect the value of your investment in the Company, and you will have no recourse to change those decisions. Your interests may conflict with the interests of other investors, and there is no guarantee that the Company will develop in a way that is advantageous to you. For example, the majority shareholders may decide to issue additional shares to new investors, sell convertible debt instruments with beneficial conversion features, or make decisions that affect the tax treatment of the Company in ways that may be unfavorable to you. Based on the risks described above, you may lose all or part of your investment in the securities that you purchase, and you may never see positive returns.

**23. What are the risks to purchasers associated with corporate actions including:**

- additional issuances of securities,
- issuer repurchases of securities,
- a sale of the issuer or of assets of the issuer or
- transactions with related parties?

The issuance of additional shares of our common stock will dilute your ownership. As a result, if we achieve profitable operations in the future, our net income per share will be reduced because of dilution, and the market price of our common stock, if there is a market price, could decline as a result of the additional issuances of securities. If we repurchase securities, so that the above risk is mitigated, and there are fewer shares of common stock outstanding, we may not have enough cash available for marketing expenses, growth, or operating expenses to reach our goals. If we do not have enough cash to operate and grow, we anticipate the market price of our stock would decline. A sale of our company or of the assets of our company may result in an entire loss of your investment. We cannot predict the market value of our company or our assets, and the proceeds of a sale may not be cash, but instead, unmarketable securities, or an assumption of liabilities. In addition to the payment of wages and expense reimbursements, we may need to engage in transactions with officers, directors, or affiliates. By acquiring an interest in the Company, you will be deemed to have acknowledged the existence of any such actual or potential related party transactions and waived any claim with respect to any liability arising from a perceived or actual conflict of interest. In some instances, we may deem it necessary to seek a loan from related parties. Such

financing may not be available when needed. Even if such financing is available, it may be on terms that are materially averse to your interests with respect to dilution of book value, dividend preferences, liquidation preferences, or other terms. No assurance can be given that such funds will be available or, if available, will be on commercially reasonable terms satisfactory to us. If we are unable to obtain financing on reasonable terms, we could be forced to discontinue our operations. We anticipate that any transactions with related parties will be vetted and approved by executives(s) unaffiliated with the related parties.

# 24. Describe the material terms of any indebtedness of the issuer:

| Creditor(s): | Red Tree Holdings |
| --- | --- |
| Amount Outstanding: | $63,616 |
| Interest Rate: | 10.0% |
| Maturity Date: | March 4, 2023 |
| Other Material Terms: | Qualified Financing Threshold: $2,000,000. Discount Rate upon a Qualified Financing: 10% |
| Creditor(s): | Derrica Holdings |
| Amount Outstanding: | $63,616 |
| Interest Rate: | 10.0% |
| Maturity Date: | March 4, 2023 |
| Other Material Terms: | Qualified Financing Threshold: $2,000,000. Discount Rate upon a Qualified Financing: 10% |
| Creditor(s): | SAFE Note |
| Amount Outstanding: | $28,500 |
| Interest Rate: | 0.0% |
| Maturity Date: | No Maturity Date |
| Other Material Terms: | If there is an Equity Financing before the termination of this Safe, on the initial closing of such Equity Financing, this Safe will automatically convert into the number of shares of Safe Preferred Stock equal to the Purchase Amount divided by the Discount Price.; Discount Rate: 85%; |
| Creditor(s): | Rodney Herrington advance |
| Amount Outstanding: | $164,094 |
| Interest Rate: | 0.0% |
| Maturity Date: | Payable On Demand |
| Other Material Terms: |  |
| Creditor(s): | EIDL |
| Amount Outstanding: | $88,800 |
| Interest Rate: | 3.8% |
| Maturity Date: | April 22, 2050 |
| Other Material Terms: | Minimum monthly payments are $433 |
| Creditor(s): | New Mexico FA SBR&S Program Loan |
| Amount Outstanding: | $150,000 |

| Interest Rate: | 1.6% |
| --- | --- |
| Maturity Date: | September 9, 2024 |
| Other Material Terms: |  |
| Creditor(s): | Note Payable to Paul and Terri Herrington |
| Amount Outstanding: | $50,000 |
| Interest Rate: | 9.0% |
| Maturity Date: | Payable On Demand |
| Other Material Terms: |  |

**25. What other exempt offerings has Aqua Research, Inc. conducted within the past three years?**

| Date of Offering: | 2021-02-01 |
| --- | --- |
| Exemption: | Section 4(a)(2) |
| Securities Offered: | Common Stock |
| Amount Sold: | $263,168 |
| Use of Proceeds: | Conversion of convertible debt. |
| Date of Offering: | 2021-10-01 |
| Exemption: | Section 4(a)(2) |
| Securities Offered: | Common Stock |
| Amount Sold: | $117,917 |
| Use of Proceeds: | Conversion of convertible debt. |

**26. Was or is the issuer or any entities controlled by or under common control with the issuer a party to any transaction since the beginning of the issuer's last fiscal year, or any currently proposed transaction, where the amount involved exceeds five percent of the aggregate amount of capital raised by the issuer in reliance on Section 4(a)(6) of the Securities Act during the preceding 12-month period, including the amount the issuer seeks to raise in the current offering, in which any of the following persons had or is to have a direct or indirect material interest:**

1. any director or officer of the issuer;
2. any person who is, as of the most recent practicable date, the beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power;
3. if the issuer was incorporated or organized within the past three years, any promoter of the issuer; or
4. any immediate family member of any of the foregoing persons.

Yes.

If yes, for each such transaction, disclose the following:

| Specified Person | Relationship to Issuer | Nature of Interest in Transaction | Amount of Interest |
| --- | --- | --- | --- |
| Rodney Herrington | CTO and founder | Related Party Advance | $164,094 |
| Paul and Terri Herrington | CTO's brother | Note Payable | $50,000 |

## Financial Condition of the Issuer

# **27. Does the issuer have an operating history?**

Yes.

# **28. Describe the financial condition of the issuer, including, to the extent material, liquidity, capital resources and historical results of operations.**

Aqua Research LLC, currently known as Aqua Research, Inc., was organized in New Mexico in 2011. We recently merged Aqua Research LLC into a new Delaware corporation, Aqua Research, Inc. on June 10, 2022. The Company develops innovative water treatment technologies that meet the extreme needs within developing countries and provides sustainable water purification to outdoor enthusiasts, travelers, emergency preppers, first responders, Peace Corps, and the military. The Company's expertise resides primarily in electrolytic technologies that produce disinfectants from common salt to a variety of water filtration technologies. As of the date of the filing of this Form C the Company has 20,000,000 shares of Common and 5,000,000 shares of Preferred Stock authorized. During fiscal 2022 the Company estimates that they generated approximately $391,000 in revenue, representing a decrease of 41% when compared to fiscal 2021. During the same year the Company incurred cost of revenues of $52,000 resulting in gross margin of approximately 86%. During fiscal 2021 the Company generated $665,355 in revenue, representing a decrease of 43% when compared to fiscal 2020. During the same year the Company incurred cost of revenues of $351,215 resulting in gross margin of 47%. General & administrative expenses amounted to $434,138, contributing to a loss from operations of $119,998. Interest expense amounted to $23,226 while the Company booked a gain from PPP loan forgiveness in the amount of $68,214, resulting in a net loss of $75,010. During fiscal 2020 the Company generated $1,175,727 in revenue. During the same year the Company incurred cost of revenues of $550,940 resulting in gross margin of 53%. General & administrative expenses amounted to $554,647, contributing to a gain from operations of $52,755. Interest expense amounted to $31,885 while the Company booked a gain from PPP loan forgiveness in the amount of $14,500, resulting in a net income of $52,755. In 2021, the Company also converted $299,900 of convertible debt previously issued into equity. The remaining convertible notes (see #24 above) accrue simple interest at a rate of 10% per year and have an original maturity of three years from the date of issuance. The Company took a loan under the New Mexico Finance Authority Small Business Recovery and Stimulus Program of $150,000 on September 9, 2021. The loan is evidenced by two notes of $75,000 each, and the Company's founder personally guaranteed the second of these notes. The term of the loan is ten years. The Company's founder occasionally advances funds to the Company to provide working capital. There is currently $164,094 outstanding due to the Company's founder. The founder's brother lent the Company $50,000 on February 2, 2021. The loan is payable on demand and accrues simple interest of 9% per annum. In 2020, the Company took an Economic Injury Disaster Loan (EIDL) from the US Small Business Administration (SBA) in the amount of $88,800 on April 22, 2020. Under the original terms of the loan, interest accrues at 3.75% per year on funds advanced from the dates of each advance. The term of the note is thirty years. Monthly payments of $433 were to begin 12 months from the date of the loan. The Company was granted additional time until the first payment was due, extending the payment holiday to a full thirty months. The Company plans to use the proceeds from this offering are planned to be used for primarily sales, product development, and general and administrative expenses.

## Financial Information

# **29. Include the financial information specified by regulation, covering the two most recently completed fiscal years or the period(s) since inception if shorter.**

See attachments:

CPA Review Report:

reviewletter.pdf

30. With respect to the issuer, any predecessor of the issuer, any affiliated issuer, any director, officer, general partner or managing member of the issuer, any beneficial owner of 20 percent or more of the issuer's outstanding voting equity securities, calculated in the same form as described in Question 6 of this Question and Answer format, any promoter connected with the issuer in any capacity at the time of such sale, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of securities, or any general partner, director, officer or managing member of any such solicitor, prior to May 16, 2016:

1. Has any such person been convicted, within 10 years (or five years, in the case of issuers, their predecessors and affiliated issuers) before the filing of this offering statement, of any felony or misdemeanor:
1. in connection with the purchase or sale of any security?
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

2. Is any such person subject to any order, judgment or decree of any court of competent jurisdiction, entered within five years before the filing of the information required by Section 4A(b) of the Securities Act that, at the time of filing of this offering statement, restrains or enjoins such person from engaging or continuing to engage in any conduct or practice:
1. in connection with the purchase or sale of any security?;
2. involving the making of any false filing with the Commission?
3. arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser, funding portal or paid solicitor of purchasers of securities?

3. Is any such person subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the U.S. Commodity Futures Trading Commission; or the National Credit Union Administration that:
1. at the time of the filing of this offering statement bars the person from:
1. association with an entity regulated by such commission, authority, agency or officer?
2. engaging in the business of securities, insurance or banking?
3. engaging in savings association or credit union activities?

2. constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct and for which the order was entered within the 10-year period ending on the date of the filing of this offering statement?

4. Is any such person subject to an order of the Commission entered pursuant to Section 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 that, at the time of the filing of this offering statement:
1. suspends or revokes such person's registration as a broker, dealer, municipal securities dealer, investment adviser or funding portal?
2. places limitations on the activities, functions or operations of such person?
3. bars such person from being associated with any entity or from participating in the offering of any penny stock?

If Yes to any of the above, explain:

5. Is any such person subject to any order of the Commission entered within five years before the filing of this offering statement that, at the time of the filing of this offering statement, orders the person to cease and desist from committing or causing a violation or future violation of:

1. any scienter-based anti-fraud provision of the federal securities laws, including without limitation Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act, Section 15(c)(1) of the Exchange Act and Section 206(1) of the Investment Advisers Act of 1940 or any other rule or regulation thereunder?
2. Section 5 of the Securities Act?
6. Is any such person suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade?
7. Has any such person filed (as a registrant or issuer), or was any such person or was any such person named as an underwriter in, any registration statement or Regulation A offering statement filed with the Commission that, within five years before the filing of this offering statement, was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, or is any such person, at the time of such filing, the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?
8. Is any such person subject to a United States Postal Service false representation order entered within five years before the filing of the information required by Section 4A(b) of the Securities Act, or is any such person, at the time of filing of this offering statement, subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the United States Postal Service to constitute a scheme or device for obtaining money or property through the mail by means of false representations?

Aqua Research, Inc. answers 'NO' to all of the above questions.

## Other Material Information

31. In addition to the information expressly required to be included in this Form, include: any other material information presented to investors; and such further material information, if any, as may be necessary to make the required statements, in the light of the circumstances under which they are made, not misleading.

The following is a transcript of a video which will be displayed on the Portal's offering page for the Company: Hello, I'm Rodney Herrington, founder of Aqua Research and inventor of life-saving disinfection solutions for the world. My first love from day one was innovation. Back in the day I had been in cryogenics and electro optics for night vision equipment and got involved in the oil field for a while, it was pretty slick stuff. Then I met my wife and the next thing you know we had a family, a pretty large family. We had five kids one right after the other and I had to set aside my entrepreneurial spirit for a while. Then one day I stumbled across a technology that used salt and energy to generate a disinfectant with some fascinating properties. They'd wiped out chlorine resistant bugs that caused illness. I was aware of the crisis in developing countries. Over 2 billion people don't have access to safe drinking water. 1.2 million people die each year from waterborne diseases. I knew I could make a difference. I decided to combine my love of innovation with helping humanity and from that point forward there was no turning back. We started building systems for water treatment. Yeah, like it's a pure, yeah I like it. Then I found out that hospital acquired infections are another major cause of death. Developing nations are plagued with supply chain issues, leaving hospitals without disinfection for up to half of the year. I refined our system design so that we could offer solutions in every size. Our smallest system can provide a family with 10 gallons of safe water per day for 10 years for only 50 cents a year in common salt. Our larger systems are used in hospitals and communities. Today we've got thousands of systems around the globe. Our technology empowers the people of developing nations, helping them avoid illness. They can make their own disinfectant within minutes using common salt. We're working with the world's leading humanitarian organizations and government agencies to get our technology added to the national supply chains in many countries. The

United Nations sustainable development goals are driving impact investors to explore this market. There's a huge market potential for our solution that is growing quickly. We invite you to become a part of it and make an impact. Join us.

The following documents are being submitted as part of this offering:

**Governance:**

**Certificate of Incorporation:** certificateofincorporation.pdf

**Corporate Bylaws:** corporatebylaws.pdf

**Opportunity:**

**Offering Page JPG:** offeringpage.jpg

## Ongoing Reporting

**32. The issuer will file a report electronically with the Securities & Exchange Commission annually and post the report on its web site, no later than 120 days after the end of each fiscal year covered by the report:**

Once posted, the annual report may be found on the issuer's web site at: https://www.aquaresearch.com

The issuer must continue to comply with the ongoing reporting requirements until:

- the issuer is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;
- the issuer has filed at least one annual report pursuant to Regulation Crowdfunding and has fewer than 300 holders of record and has total assets that do not exceed $10,000,000;
- the issuer has filed at least three annual reports pursuant to Regulation Crowdfunding;
- the issuer or another party repurchases all of the securities issued in reliance on Section 4(a)(6) of the Securities Act, including any payment in full of debt securities or any complete redemption of redeemable securities; or
- the issuer liquidates or dissolves its business in accordance with state law.

**Attachment 2:** `reviewletter.pdf`

# AQUA RESEARCH, LLC

## FINANCIAL STATEMENTS

December 31, 2021 and 2020

# INDEPENDENT ACCOUNTANTS' REVIEW REPORT

Board of Directors

Aqua Research, LLC

Albuquerque, New Mexico

We have reviewed the accompanying financial statements of Aqua Research, LLC, which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of income, changes in members' equity, and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of entity management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, we do not express such an opinion.

# Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statement 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.

# Accountants' Responsibility

Our responsibility is to conduct the review engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion

We are required to be independent of Aqua Research, LLC and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements related to our review.

# Accountants' Conclusion

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in accordance with accounting principles generally accepted in the United States of America

Baca & Howard, P.C.

Albuquerque, New Mexico

January 23, 2023

# AQUA RESEARCH, LLC

## BALANCE SHEETS (Unaudited)

December 31,

See Independent Accountants' Review Report

| ASSETS | 2021 | 2020 |
| --- | --- | --- |
| CURRENT ASSETS |  |  |
| Cash and cash equivalents | $108,906 | $98,533 |
| Accounts receivable | 11,792 | - |
| Inventory | 322,185 | 150,097 |
| Total current assets | 442,883 | 248,630 |
| PROPERTY AND EQUIPMENT - AT COST |  |  |
| net of accumulated depreciation (Note C) | 4,994 | 5,158 |
| TOTAL ASSETS | $447,877 | $253,788 |

| LIABILITIES AND MEMBERS' EQUITY | 2021 | 2020 |
| --- | --- | --- |
| CURRENT LIABILITIES |  |  |
| Accounts payable | $12,512 | $5,849 |
| Accrued expenses | 37,760 | 2,950 |
| Note payable to member (Note D) | 54,125 | - |
| Total current liabilities | 104,397 | 8,799 |
| LONG-TERM LIABILITIES (Note D) |  |  |
| Notes payable | 244,495 | 91,019 |
| Convertible notes | 117,500 | 264,375 |
| Due to member | 164,094 | 159,694 |
| TOTAL LIABILITIES | 630,486 | 523,887 |
| COMMITMENTS AND CONTINGENCIES (Note E) |  |  |
| MEMBERS' EQUITY (Note E) | (182,609) | (270,099) |
| TOTAL LIABILITIES AND MEMBERS' EQUITY | $447,877 | $253,788 |

The accompanying notes are an integral part of these financial statements.

2

# AQUA RESEARCH, LLC

## STATEMENTS OF INCOME (Unaudited)

Years ended December 31,

See Independent Accountants' Review Report

|  | 2021 | 2020 |
| --- | --- | --- |
| Revenues | $665,355 | $1,175,727 |
| Cost of revenues | 351,215 | 550,940 |
| Gross profit | 314,140 | 624,787 |
| General & administrative expenses | 434,138 | 554,647 |
| (Loss) Income from operations | (119,998) | 70,140 |
| Other income (expense) |  |  |
| Interest expense | (23,226) | (31,885) |
| PPP loan forgiveness | 68,214 | 14,500 |
| Net (Loss) Income | $(75,010) | $52,755 |

The accompanying notes are an integral part of these financial statements.

3

# AQUA RESEARCH, LLC

## STATEMENTS OF CHANGES IN MEMBERS' EQUITY (Unaudited)

Years ended December 31,

See Independent Accountants' Review Report

|  | Members' Equity |
| --- | --- |
| Balance at December 31, 2019 | $(621,854) |
| Notes converted to equity | 299,000 |
| Distributions | - |
| Net income | 52,755 |
| Balance at December 31, 2020 | (270,099) |
| Notes converted to equity | 162,500 |
| Distributions | - |
| Net loss | (75,010) |
| Balance at December 31, 2021 | $(182,609) |

The accompanying notes are an integral part of these financial statements.

4

# AQUA RESEARCH, LLC

## STATEMENTS OF CASH FLOWS (Unaudited)

Years ended December 31,

See Independent Accountants' Review Report

| Increase in cash and cash equivalents | 2021 | 2020 |
| --- | --- | --- |
| Cash flows from operating activities |  |  |
| Cash received from customers | $653,563 | $1,177,527 |
| Cash paid to employees and suppliers | (915,804) | (1,263,393) |
| PPP loan forgiven | 68,214 | 14,500 |
| Net cash used in operating activities | (194,027) | (71,366) |
| Cash flows from financing activities |  |  |
| Advances from (repayments to) member | 54,400 | (57,551) |
| Proceeds from convertible notes | - | 100,000 |
| Proceeds from long-term notes payable | 150,000 | 88,800 |
| Net cash provided by financing activities | 204,400 | 131,249 |
| Net increase in cash and cash equivalents | 10,373 | 59,883 |
| Cash and cash equivalents at beginning of year | 98,533 | 38,650 |
| Cash and cash equivalents at end of year | $108,906 | $98,533 |

The accompanying notes are an integral part of these financial statements.

5

# AQUA RESEARCH, LLC

## STATEMENTS OF CASH FLOWS(Unaudited) - Continued

Years ended December 31,

See Independent Accountants' Review Report

| Reconciliation of net (loss) income to net cash used in operating activities | 2021 | 2020 |
| --- | --- | --- |
| Net (loss) income | $(75,010) | $52,755 |
| Adjustments to reconcile net (loss) income to net cash used in operating activities |  |  |
| Depreciation | 164 | 164 |
| Interest accrued on long-term debt | 7,601 | 2,219 |
| Interest accrued on convertible notes | 15,625 | 29,666 |
| Change in assets and liabilities |  |  |
| Accounts receivables | (11,792) | 1,800 |
| Inventory Asset | (172,088) | (135,838) |
| Accounts Payable | 6,663 | (21,413) |
| Accrued Expenses | 34,810 | (719) |
| Total adjustments | (119,017) | (124,121) |
| Net cash (used in) provided by operating activities | $(194,027) | $(71,366) |

Supplemental Schedule of Noncash Investing and Financing Activities:

| Convertible notes converted to equity | $162,500 | $299,000 |
| --- | --- | --- |
| Equity issued for services | $28,700 | $ - |

The accompanying notes are an integral part of these financial statements.

6

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited)

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE A - DESCRIPTION OF BUSINESS

Aqua Research, LLC (the “Company”) was organized in New Mexico in 2011. The Company develops innovative water treatment technologies that meet the extreme needs within developing countries and provides sustainable water purification to outdoor enthusiasts, travelers, emergency preppers, first responders, Peace Corps, and the military. The Company’s expertise resides primarily in electrolytic technologies that produce disinfectants from common salt to a variety of water filtration technologies.

The Company is located and headquartered in Albuquerque, New Mexico.

**Risks and Uncertainties** - The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including, but not limited to, the need for successful development of products, the need for additional capital to fund operating losses, competition from substitute products and services from larger companies, protection of proprietary technology, patent litigation, dependence on key individuals, and risks associated with changes in water filtration technology.

The Company has incurred net losses, utilized cash in operations since inception, has deficit capital of $(182,609) as of December 31, 2021, and expects to incur future additional losses. The Company believes it will be able to fund operations and meet its obligations as they come due within one year from the date these financial statements are issued. In the event that the Company does not achieve revenue anticipated in its current operating plan, management has the ability and commitment to reduce operating expenses as necessary. The Company’s long-term success is dependent upon its ability to raise additional capital, market its existing products, increase revenues, and, ultimately, to achieve profitable operations.

The Company’s 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.

### NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

**Basis of Presentation** - The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP).

7

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

**Use of Estimates** - The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expense during the reporting period. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ from these estimates.

**Cash and Cash Equivalents** - The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be cash and cash equivalents. Cash and cash equivalents are recorded at cost, which approximates fair value. As of December 31, 2021 and 2020, cash consists primarily of checking and savings deposits. The Company's cash balances occasionally exceed those that are federally insured. To date, the Company has not recognized any losses caused by uninsured balances.

**Accounts Receivable and Allowance for Doubtful Accounts** - Accounts receivable are stated at net realizable value. The Company generally does not require any security or collateral to support its receivables. The majority of customers are not extended credit. A receivable is considered past due if the Company has not received payments based on agreed-upon terms. On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance or if any accounts should be written off based on a history of write-offs, collections, and current credit and economic conditions. Based on the evaluations of receivables, the allowance for doubtful accounts was $0 as of December 31, 2021 and 2020.

**Property and Equipment** - Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are to be amortized over the shorter of the lease term or the estimated useful life of the related asset. Leasehold improvements are being amortized over the tax life of 39 years; any difference is insignificant and not material to these financial statements.

**Revenue Recognition** - In May 2015, the FASB issued Accounting Standards Update (ASU) No. 2014-09, *Revenue from Contracts with Customers (Topic 606)*, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU No. 2014-09 and its related amendments (Collectively, known as ASC 606, *Revenue from Contracts with Customers*) effective January 1, 2019, using the modified retrospective approach to all contracts not completed at the date of initial application. Adoption of ASC 606 did not impact the timing of revenue recognition in the Company's financial statements for the prior annual periods. No contract assets or liabilities were required to be recognized at adoption

8

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

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 arrangements.

- identify the contract with a customer,
- identify the performance obligations in the contract,
- determine the transaction price,
- allocate the transaction to performance obligations in the contract, and
- recognize revenue as the performance obligation is satisfied.

Under ASC Topic 606, the Company estimated the transaction price, including variable consideration, at the commencement of the contract and recognizes revenue over the contract term, rather than when fees become fixed or determinable.

#### Payment Terms

The Company's contracts with customers do not result in significant obligations associated with returns, refunds, or warranties. The payment terms are generally fixed and do not include variable revenues.

**Contract Assets and Contract Liabilities (Deferred Revenue)** - A contract asset results when goods or services have been transferred to the customer, but payment is contingent upon a future event, other than the passage of time (i.e., type of unbilled receivable). The Company does not have any material unbilled receivables, therefore, it does not have any contract assets. The Company only has accounts receivable as presented on the face of the balance sheet.

The Company records contract liabilities to deferred revenue when the Company receives customer payments in advance of the performance obligations being satisfied on the Company's contracts. Deferred revenue that will be recognized during the succeeding 12-month period is presented as short-term deferred revenue and the remaining portion is presented as long-term deferred revenue. The Company does not have any material deferred revenue and, therefore, does not have any contract liabilities.

9

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concluded

**Advertising Costs** - Advertising costs are expensed as incurred.

**Income Taxes** - Aqua Research, LLC is treated as a partnership under the federal income tax code and does not incur income taxes. Any earnings and losses are included in the personal returns of the members, and taxed depending on their personal tax situations. Therefore, there are no income tax provisions presented in the accompanying financial statements.

**Taxes Collected From Customers** - Taxes collected from customers are netted against those remitted to government authorities in the accompanying financial statements. Accordingly, taxes collected from customers are not reported as revenue.

**Accounting for Government Grants** - Currently there is no authoritative guidance under U.S. GAAP that addresses accounting and reporting by a for-profit business entity that receives a forgivable loan from a government entity. Accordingly, management has elected to analogize to International Accounting Standards 20, *Accounting for Government Grants and Disclosure of Government Assistance*, which states that a forgivable loan from the government is treated as a government grant when there is reasonable assurance that the entity will meet the terms for forgiveness of the loan. Accordingly, the Company presents income from forgivable loans from government entities within other income (expense) in the statement of income when all performance obligations have been satisfied and forgiveness is reasonable assured.

### NOTE C - PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

|  | 2021 | 2020 |
| --- | --- | --- |
| Assets: |  |  |
| Computer equipment | $2,036 | $2,036 |
| Leasehold improvements | 6,403 | 6,403 |
|  | 8,439 | 8,439 |
| Less: Accumulated depreciation | 3,445 | 3,281 |
| Net property and equipment | $4,994 | $5,158 |

Depreciation expense totaled $164 in each of 2021 and 2020.

10

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE D - LONG-TERM LIABILITIES

Long-term liabilities consist of the following:

Convertible Notes - As part of its capital financing, the Company has issued a number of convertible notes in face amounts between $25,000 and $50,000. The two $50,000 convertible notes outstanding at December 31, 2021, were issued April 3, 2020. All of the notes accrue simple interest at a rate of 10% per year and have an original maturity of three years from the date of issuance.

Under the terms of the notes, principal and interest are due and payable upon the earliest of a change in control, an event of default, or the maturing of the note.

A change in control is defined to be:

- Any merger or consolidation resulting in the holders of voting securities of the Company outstanding immediately prior thereto holding immediately thereafter 50% or less than the combined voting power of the voting securities of the Company or such surviving or acquiring entity outstanding immediately after such merger or consolidation.
- Any sale, lease, or other conveyance of all or substantially all of the assets of the Company.
- The voluntary or involuntary liquidation, dissolution, or winding up of the Company.
- The acquisition of "beneficial ownership" (defined as 50% or more of the combined voting power of the Company's then outstanding securities) by a person as defined in Rules 13(d) and 14(d) of the Securities Exchange Act of 1934.

Conversion of the note to an equity interest in the Company is automatic at note maturity. At the note's maturity, all of the outstanding principal amount and all accrued interest will be converted in Equity Units of the Company at a Company valuation equal to the then-current value of the Company, as agreed between the Company and the Holders of a majority of the principal of the then outstanding notes. If there is no agreement, the Company will use a valuation expert to determine the value.

A note will also be converted to an equity interest in the Company in the event of a Qualified Financing prior to the maturity date or a change in control. As defined in the note, a Qualified Financing shall mean an equity financing transaction (in a closing or a series of closings), the principal purpose of which is to raise capital, and pursuant to which the Company issues or will issue equity units in exchange for $2,000,000 or more. In this event, the principal balance and all accrued and unpaid interest shall be converted into units of the Company issued or to be issued by the Company in the Qualified Financing, except that the conversion shall be effected at a 10% discount to the price of the Equity Units issued in the Qualified Financing. This discount is not presented in the accompanying financial statements, as its value could not be determined at inception under the terms of this agreement.

11

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE D - LONG-TERM LIABILITIES - Continued

**Loans from Government Agencies** - the Company has the following loans from various government agencies:

*Economic Injury Disaster Loan*

The Company took an Economic Injury Disaster Loan (EIDL) from the US Small Business Administration (SBA) in the amount of $88,800 on April 22, 2020. Under the original terms of the loan, interest accrues at 3.75% per year on funds advanced from the dates of each advance. The term of the note is thirty years. Monthly payments of $433 were to begin 12 months from the date of the loan. The Company was granted additional time until the first payment was due, extending the payment holiday to a full thirty months.

The loan is collateralized by inventory; equipment; instruments, including promissory notes; chattel paper; documents; letter of credit rights; accounts, including health-care insurance receivables and credit card receivables; deposit accounts; commercial tort claims; and general intangibles. The Company can sell its inventory in the ordinary course of business but cannot sell or transfer any of the other collateral without the express prior consent of the SBA. Additionally, the Company cannot make distributions to its members or pay bonuses to members or employees without the consent of the SBA.

*New Mexico Finance Authority Small Business Recovery and Stimulus Program Loan*

The Company took a loan under this program of $150,000 on September 9, 2021. The loan is evidenced by two notes of $75,000 each, and the managing member personally guaranteed the second of these notes (referred to as Note A-2). The term of the loan is ten years.

The interest rate for the loan is fixed at 1.625% per year. Interest will not accrue the first year, and payments are not required. Beginning on the first anniversary of the Disbursement Date, interest shall be calculated on a simple interest, 30-360-day calendar year. Beginning on the second anniversary of the Disbursement Date, payments of interest on the loan are due and payable in annual installments. Following the third anniversary of the Disbursement Date, payments of principal and interest are due in monthly installments according to a schedule determined by the Lender, with interest calculated using the fixed rate above.

The loan is subject to several non-financial covenants.

12

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants’ Review Report

### NOTE D - LONG-TERM LIABILITIES - Continued

#### Loans from Members

##### *Amounts Due to Managing Member*

As more fully discussed in Note F, the managing member occasionally advances funds to the Company to provide working capital. Advances are repaid as funds become available. There is no note payable or agreement formalizing this arrangement. These amounts due to the managing member bear no interest. The amounts due under this arrangement are presented with the long-term liabilities in the accompanying financial statement as they will likely not be repaid within one year of the date of these financial statements. Eventual repayment will likely depend upon the Company successfully raising additional capital and the agreement of the other members.

##### *Loan from member*

A member other than the managing member loaned the Company$50,000 on February 2, 2021. Per the loan agreement, simple interest of 9% is to be charged. The initial term of the loan was six months, with an option to extend the note for an additional six months. Repayment of the loan is contingent upon the company being paid in full on four purchase orders outlined in the loan agreement. This loan is presented with the current liabilities in the accompanying financial statements.

Principal maturities of long-term debt are as follows:

Year ending March 31,

| 2022 | $ - |
| --- | --- |
| 2023 | 161,058 |
| 2024 | 5,126 |
| 2025 | 23,044 |
| 2026 | 23,105 |
| Thereafter | 192,091 |
|  | $404,424 |

The principal maturities above do not include the $50,000 loan from member which is separately stated as a current liability. Also, none of the convertible notes are included - all of the convertible notes are payable to current members who have converted prior notes and are fully expected to convert these notes as well.

13

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE E - COMMITMENTS AND CONTINGENCIES

**Leases** - As discussed further in Note F, the Company subleases 1,895 square feet of office and lab space from and shares 600 square feet of shipping and receiving space with a related entity. The lease commenced August 1, 2018. At December 31, 2021, the Company is in year four of the original four year term of the lease. The lease provides for two additional two-year extension periods.

The annual minimum rent for year four of the original term is $21,274. The annual minimum rent is to increase 2.5% per year for each of the two year extension periods. Thus, the rent in year five will be $21,806 increasing to $22,351, then $22,910, and then $23,482 in year eight. The Company is responsible for its own insurance and a portion of shared costs.

**Patent Purchase Agreement** - The Company entered into an agreement on October 25, 2018, to purchase certain patents, intellectual property, know-how and trade secrets from another company. The Company was previously granted licenses to these patents and technologies but wishes to have exclusive control of them. Under the terms of the agreement, the Company will pay a variable percentage of gross sales (3% or 5%, as identified in the agreement) during the Measurement Period. The Measurement Period began September 30, 2015, and ends July 25, 2025. Any amounts due under the agreement (beginning on day one of the Measurement Period) do not become due until the year in which the Company achieves gross sales of $1,000,000 or more (referred to as the Trigger Year). Once the Measurement Period ends, the Company will have title to the patents and technologies listed in the agreement. Gross sales exceeding $1,000,000 was achieved during 2020. The amount due to the seller of $31,376 is included in accrued liabilities as of December 31, 2021, in the accompanying financial statements.

**Warrants** - In connection with two loans made to the Company on March 8, 2013, the Company issued two warrants to purchase ownership units at an exercise price of $10 per unit, up to a total of $25,000 per warrant. The warrants are exercisable through the tenth anniversary of their issuance barring the occurrence of one of the following:

- The closing of a firmly underwritten public offering of the Company's common stock, or
- The closing of a Change in Control.

Warrants issued in these types of transactions are typically valued and recorded as a discount to the notes payable giving rise to their issuance, which is amortized over the life of the warrant. These warrants were valued at zero. The loans with which these warrants were associated have been repaid.

14

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Continued

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE F - RELATED-PARTY TRANSACTIONS

The Company sub-leases office space from a related company. The managing member is a stockholder in this related entity.

In the normal course of business, the managing member occasionally advances funds to the Company for cash flow purposes and is repaid as cash becomes available. At December 31, 2021, the Company owed the managing member $164,094 under this arrangement. Advances bear no interest and are not evidenced by a note payable or other written agreement.

### NOTE G - SUBSEQUENT EVENTS

The Company evaluated subsequent events from December 31, 2021, the date of these financial statements, through January 23, 2023, which represents the date the financial statements were available for issuance, for events requiring recording or disclosure in the financial statements for the year ended December 31, 2021. The Company concluded that no events have occurred that would require recognition or disclosure in the financial statements, except as described below.

In anticipation of increasing efforts to raise capital through a crowdfunding intermediary, the Company created a new Delaware corporation, Aqua Research, Inc. Aqua Research, LLC was merged into the new corporation on June 30, 2022. The Company began operations as Aqua Research, Inc. on July 1, 2022. This merger was not a taxable event for the Company.

On July 1, 2022, the Patent Purchase Agreement was amended to change the ending date of the Measurement Period to December 31, 2028.

### NOTE H - CORONAVIRUS & PAYCHECK PROTECTION PROGRAM ("PPP")

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States. While the disruption was expected to be temporary, there is still uncertainty around its duration. Therefore, while management expects this matter to negatively impact the Corporation, results of operations, and financial position, the related financial impact cannot be reasonably estimated at this time.

Between April 20, 2020, and May 14, 2021, the Company borrowed $75,740 under the Paycheck Protection Program ("PPP"). Both loans required interest at 1% of borrowed amounts, matured in two years, and provided a payment deferral of at least six months.

15

# AQUA RESEARCH, LLC

## NOTES TO FINANCIAL STATEMENTS (Unaudited) - Concluded

December 31, 2021 and 2020

See Independent Accountants' Review Report

### NOTE H - CORONAVIRUS & PAYCHECK PROTECTION PROGRAM (“PPP”) - Continued

As discussed at the end of Note B, the Company chose to analogize the treatment of these loans to the treatment outlined in International Accounting Standards 20. Under this standard, the loan is treated as a government grant when the Company has reasonable assurance that it will meet the terms for forgiveness of the loan. The first of the loans was taken to income in 2020. The second of the loans, including some accrued interest, was taken to income in 2021. The Company has received official notice from the SBA that both of these loans were forgiven.

16

**Attachment 3:** `certificateofincorporation.pdf`

![img-0.jpeg](img-0.jpeg)

Name : Aqua Research, Inc.

Service : Filing Organizational Documents

Jurisdiction : US - DE - Secretary of State

Thru Date: 06/10/2022

Results :

SEE ATTACHED

---

Reasonable care is exercised in the completion of all requests, however, as the responsibility for the accuracy of the public records rests with the filing officer, we accept no liability for the report contained herein.

# Delaware

The First State

Page 1

I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT
COPY OF THE CERTIFICATE OF INCORPORATION OF "AQUA RESEARCH,
INC.", FILED IN THIS OFFICE ON THE TENTH DAY OF JUNE, A.D.
2022, AT 7:51 O'CLOCK A.M.

![img-1.jpeg](img-1.jpeg)

Jeffrey W. Bullock, Secretary of State

6847854 8100
SR# 20222682304

You may verify this certificate online at corp.delaware.gov/authver.shtml

Authentication: 203650693
Date: 06-10-22

State of Delaware
Secretary of State
Division of Corporations
Delivered 07:51 AM 06/10/2022
FILED 07:51 AM 06/10/2022
SR 20222682304 - File Number 6847854

# CERTIFICATE OF INCORPORATION

# OF

# AQUA RESEARCH, INC.

THE UNDERSIGNED, acting as the incorporator of a corporation under and in accordance with the General Corporation Law of the State of Delaware, as the same exists or may hereafter be amended from time to time (the “General Corporation Law”), hereby adopts the following Certificate of Incorporation for such corporation:

# ARTICLE I

The name of the corporation is Aqua Research, Inc. (the “Corporation”).

# ARTICLE II

The purpose for which the Corporation is organized is any or all lawful acts and activities for which corporations may be incorporated under the General Corporation Law.

# ARTICLE III

The street address of the initial registered office of the Corporation is 1012 College Road, Suite 201 Dover, DE 19904 Kent County; and the name of the registered agent of the Corporation in the State of Delaware at such address is Telos Legal Corp.

# ARTICLE IV

The total number of shares of capital stock that the Corporation is authorized to issue is 25,000,000 shares, consisting of 20,000,000 shares of Common Stock, par value $0.0001 per share (the “Common Stock”), and 5,000,000 shares of Preferred Stock, par value $0.0001 per share (the “Preferred Stock”).

# ARTICLE V

The name and mailing address of the incorporator is as follows:

| Name | Mailing Address |
| --- | --- |
| Stephen A. Carroll | 15260 Ventura Blvd., 20th Floor Sherman Oaks, CA 91403 |

# ARTICLE VI

To the extent permitted by the General Corporation Law, a director of the Corporation will not be liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director. Any repeal or amendment of this Article VI by the stockholders of the Corporation or by changes in applicable law, or the adoption of any provision of this Certificate

of Incorporation inconsistent with this Article VI, will, to the extent permitted by applicable law, be prospective only (except to the extent such amendment or change in applicable law permits the Corporation to provide a broader limitation on a retroactive basis than permitted prior thereto), and will not adversely affect any limitation on the personal liability of any director of the Corporation at the time of such repeal or amendment or adoption of such inconsistent provision.

## ARTICLE VII

The Corporation shall indemnify any person who was or is a party or is threatened to be made a party to, or testifies or otherwise participates in, any threatened, pending or completed action, suit, or proceeding, whether civil, criminal, administrative, arbitrative, or investigative, any appeal in such an action, suit, or proceeding and any inquiry or investigation that could lead to such an action, suit or proceeding (whether or not by or in the right of the Corporation), by reason of the fact that such person is or was a director or officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, partner, venturer, proprietor, trustee, employee, agent, or similar functionary of another corporation, partnership, joint venture, sole proprietorship, trust, nonprofit entity, employee benefit plan, or other enterprise, against all judgments, penalties (including excise and similar taxes), fines, settlements, and expenses (including attorneys' fees and court costs) actually and reasonably incurred by such person in connection with such action, suit, or proceeding to the extent permitted by any applicable law, and such indemnity will inure to the benefit of the heirs, executors, and administrators of any such person so indemnified pursuant to this Article VII; provided, however, that, except for proceedings to enforce rights to indemnification, the Corporation shall not be obligated to indemnify any person pursuant to this Article VII in connection with an action, suit, or proceeding (or part thereof) initiated by such person unless such action, suit, or proceeding (or part thereof) was authorized or consented to by the Board of Directors. The right to indemnification under this Article VII will also include the right to be paid by the Corporation the expenses incurred in defending, testifying, or otherwise participating in any such proceeding in advance of its disposition; provided, however, that, if the General Corporation Law requires, the payment of such expenses incurred by a director or officer in advance of the final disposition of a proceeding will be made only upon delivery to the Corporation of an undertaking, by or on behalf of such director or officer, to repay all amounts so advanced if it is ultimately determined that such director or officer is not entitled to be indemnified under this Article VII or otherwise. The right to indemnification and advancement of expenses under this Article VII is a contract right and should not be deemed exclusive of any other right to which those seeking indemnification may be entitled under any law, bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office, and will continue as to a person who has ceased to be a director or officer. Any repeal or amendment of this Article VII by the stockholders of the Corporation or by changes in applicable law, or the adoption of any other provision of this Certificate of Incorporation inconsistent with this Article VII, will, to the extent permitted by applicable law, be prospective only (except to the extent such amendment or change in applicable law permits the Corporation to provide broader indemnification rights on a retroactive basis than permitted prior thereto), and will not adversely affect the indemnification of any person who may be indemnified at the time of such repeal or amendment or adoption of such inconsistent provision. The Corporation may, to the extent authorized from time to time by the Board of Directors, grant rights to indemnification to any employee or agent of the Corporation to the extent of the provisions of this Article VII with respect to indemnification of directors and

4860-3980-1632, v. 2

officers of the Corporation and may, by action of the Board of Directors, pay in advance such expenses incurred by employees and agents of the Corporation upon such terms as the Board of Directors deems appropriate.

### ARTICLE VIII

The Corporation elects not to be governed by Section 203 of the General Corporation Law.

### ARTICLE IX

In furtherance and not in limitation of the powers conferred by statute, the Board of Directors is expressly authorized to adopt the original bylaws of the Corporation, to amend or repeal the bylaws or to adopt new bylaws, subject to any limitations that may be contained in such bylaws, but any bylaws adopted by the Board of Directors may be amended or repealed by the stockholders entitled to vote thereon.

### ARTICLE X

Election of directors need not be by written ballot.

IN WITNESS WHEREOF, the incorporator of the Corporation hereto has caused this Certificate of Incorporation to be duly executed as of June 10, 2022.

/s/ Stephen A. Carroll

Stephen A. Carroll, Incorporator

4860-3980-1632, v. 2

# NEW MEXICO PUBLIC REGULATION COMMISSION

COMMISSIONERS

DISTRICT 1 Jason Marks

DISTRICT 2 Patrick H. Lyons

DISTRICT 3 Jerome D.Block

DISTRICT 4 Theresa Becenti-Aquilar

DISTRICT 5 Ben L.Hall

1120 Paseo de Peralta/P.O. Box 1269

Santa Fe, NM 87504-1269

Johnny Montoya, Chief of Staff

CORPORATION BUREAU

(505) 827-4508

September 27, 2011

RODNEY E. HERRINGTON

8631 GLENRIDGE PLACE N.W.

ALBUQUERQUE NM 87114

RE: AQUA RESEARCH LLC

NMPRC# 4510356

This Commission has approved and filed the Articles Of Organization for the above captioned organization effective September 1, 2011. The enclosed Certificate Of Organization is evidence of filing, and should become a permanent document of the organization's records.

The referenced approval does not constitute authorization for the above referenced organization to transact any business which requires compliance with other applicable federal or state laws, including, but not limited to, state licensing requirements. It is the organizations' sole responsibility to obtain such compliance with all legal requirements applicable thereto prior to engaging in the business for which it has obtained approval of the referenced document.

Your canceled check, as validated by this commission, is your receipt. If you have any questions, please contact the Chartered Document Division at (505) 827-4511 for assistance.

Chartered Document Division

JC

![img-2.jpeg](img-2.jpeg)

## NEW MEXICO PUBLIC REGULATION COMMISSION

### *Certificate Of Organization*

OF

**AQUA RESEARCH LLC**

**4510356**

The Public Regulation Commission certifies that the Articles Of Organization, duly signed and verified pursuant to the provisions of the

**Limited Liability Company Act**

**(53-19-1 To 53-19-74 NMSA 1978)**

have been received by it and are found to conform to law. Accordingly, by virtue of the authority vested in it by law, the Public Regulation Commission issues this Certificate Of Organization and attaches hereto a duplicate of the Articles Of Organization.

Dated : **September 1, 2011**

In testimony whereof, the Public Regulation of the State of New Mexico has caused this certificate to be signed by its Chairman and the seal of said Commission to be affixed at the city of Santa Fe.

Bureau Chief

Chairman

SUBMIT ORIGINAL AND A COPY
TYPE OR PRINT LEGIBLY

FILED
NMPRC
Corporation Bureau

SEP - 1 2011

## Limited Liability Company
## ARTICLES OF ORGANIZATION

The undersigned, acting as organizer(s) of a limited liability company pursuant to the New Mexico Limited Liability Company Act, adopt the following Articles of Organization:

ARTICLE ONE: The name of the limited liability company is: Aqua Research LLC

ARTICLE TWO: The period of duration (if other than perpetual) is:

ARTICLE THREE:

(1) The New Mexico street address of the company's initial registered office is:
8631 Glenridge Place NW, Albuquerque, NM 87114

(P.O. Box is not acceptable. Provide a description of the geographical location if a street address does not exist.)

(2) The name of the initial registered agent at that address is: Rodney E. Herrington
(3) The street address of the company's principal place of business, if different from its registered office, is:

ARTICLE FOUR (check only if applicable):

☑ YES Management of the business and affairs of the company is vested in a manager.

ARTICLE FIVE (check only if applicable):

☐ YES The limited liability company is a single member limited liability company.

ARTICLE SIX: If these Articles of Organization are not to be effective upon filing with the commission, the effective date is: (if an effective date is specified here, it cannot be a date prior to the date the articles are received by the commission)

Dated: August 25, 2011

Rodney E. Herrington

Rodney E. Herrington

Signature of Organizer(s)

Printed Name(s)

Form DLLC

(revised 07/03)

RECEIVED

NMPRC

Corporation Bureau

SEP 0 1 2011

# STATEMENT OF ACCEPTANCE OF APPOINTMENT
BY DESIGNATED INITIAL REGISTERED AGENT

FILED
NMPRC
Corporation Bureau SEP - 1 2011

I, Rodney E. Herrington

hereby acknowledge that the undersigned individual or corporation accepts the

appointment as Initial Registered Agent of
Aqua Access LLC

the limited liability company which is named in the annexed Articles of Organization.

Rodney E. Herrington

(Sign on this line if the registered agent named in the Articles of Organization is an individual.

If this line is signed, the two lines below do not apply and must be left blank.)

# CORPORATION ACTING AS A REGISTERED AGENT ONLY

(If the following lines are used, the signature line above does not apply and must be left blank)

(If the registered agent named in the Articles of Organization is a corporation, limited liability company, or partnership, type or print the name of that entity here.)

By
(An authorized person of the entity being appointed as registered agent must sign here)

Form DLLC-STMNT
(revised 07/03)

RECEIVED

NMPRC

SEP 01 2011

**Attachment 4:** `corporatebylaws.pdf`

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# BYLAWS

# OF

Aqua Research, Inc.

a Delaware Corporation

(the "Corporation")

# ARTICLE I

# STOCKHOLDERS MEETINGS

Section 1 Place of Meeting. Meetings of the Stockholders shall be held at the principal offices of the Corporation or at such place, within or without the State of Delaware, as may from time to time be designated for that purpose, by the Board.

Section 2 Annual Meetings. Unless directors are elected by written consent in lieu of an annual meeting as permitted by this Section 2, an annual meeting of the Stockholders for the election of directors shall be held on such date and at such time as may be designated, from time to time, by the Board. Stockholders may, unless the Certificate of Incorporation otherwise provides, act by written consent to elect directors; provided, however, that if such consent is less than unanimous, such action by written consent may be in lieu of holding an annual meeting only if all of the directorships to which directors could be elected at an annual meeting held at the effective time of such action are vacant and are filled by such action. If the annual meeting for the election of directors is not held on the date designated therefor or action by written consent to elect directors in lieu of an annual meeting has not been taken, the directors shall cause the meeting to be held as soon as is convenient. Any other proper business may be transacted at the annual meeting.

Section 3 Special Meetings. Special meetings of the Stockholders for any purpose or purposes may be called at any time by the Board, the Chairman of the Board or any two directors.

Section 4 Notice of Meetings. Except as otherwise provided by the DGCL written notice of each meeting of the Stockholders, whether annual or special, shall be given not less than 10 nor more than 60 days prior to the date upon which the meeting is to be held to each Stockholder entitled to vote at such meeting. Such notice shall be deemed delivered when deposited in the United States mail, postage prepaid, addressed to the Stockholder at such person's address as it appears on the stock records of the Corporation, or otherwise actually delivered to such address or such person. Such notice shall state the place, date and hour of the meeting, and, in the case of a special meeting, the purpose or purposes for which the meeting is called. Notice may also be given to Stockholders by a form of electronic transmission in accordance with and subject to the provisions of Section 232 of the DGCL. If a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken. If the adjournment is for more than 30 days, or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each Stockholder of record entitled to vote at the meeting.

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Section 5 Quorum. Except as otherwise provided by law, the Certificate of Incorporation or these Bylaws, at each meeting of Stockholders the presence in person or by proxy of the holders of shares of stock having a majority of the votes which could be cast by the holders of all outstanding shares of stock entitled to vote at the meeting shall be necessary and sufficient to constitute a quorum. In the absence of a quorum, any meeting of the Stockholders may be adjourned from time to time by a majority of the votes represented either in person or by proxy, and no other business may be transacted at such meeting. The Stockholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough Stockholders to leave less than a quorum, if any action taken (other than adjournment) is approved by at least a majority of the shares required to constitute a quorum.

Section 6 Adjourned Meeting. Any Stockholders' meeting, annual or special, whether or not a quorum is present, may be adjourned by vote of a majority of the shares present, either in person or by proxy. At any adjourned meeting, the Corporation may transact any business which might have been transacted at the original meeting.

Section 7 Chairman of Meeting; Opening of Polls. Meetings of Stockholders shall be presided over by the person designated by the Board, or in the absence of such designation, by the Chairman of the Board, if any, or in his or her absence by the Vice Chairman of the Board, if any, or in his or her absence by the Chief Executive Officer, or in their absence by a chairman chosen at the meeting by the Stockholders. The Secretary shall act as secretary of the meeting, but in his or her absence, the chairman of the meeting may appoint any person to act as secretary of the meeting. The chairman of the meeting shall announce at each meeting of Stockholders the date and time of the opening of the polls for each matter upon which the Stockholders will vote.

Section 8 Proxies. Each Stockholder entitled to vote at a meeting of Stockholders or to express consent or dissent to corporate action in writing without a meeting may authorize another person or persons to act for such person by proxy.

Section 9 Stockholder List. The officer who has charge of the stock ledger of the Corporation shall prepare and make, at least ten days before every meeting of Stockholders, a complete list of the Stockholders entitled to vote at the meeting, arranged in alphabetical order, and showing the address of each Stockholder and the number of shares registered in the name of each Stockholder. Such list shall be open to the examination of any Stockholder, for any purpose germane to the meeting, during ordinary business hours, for a period of at least ten days prior to the meeting, either at a place within the city where the meeting is to be held, which place shall be specified in the notice of the meeting, or, if not so specified, at the place where the meeting is to be held. The list shall also be produced and kept at the time and place of the meeting during the whole time thereof, and may be inspected by any Stockholder who is present.

Section 10 Consent of Stockholders in Lieu of Meeting. Unless otherwise provided in the Certificate of Incorporation, any action required to be taken, or that may be taken, at any annual or special meeting of the Stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action to be taken, shall have been signed by the holders of outstanding stock eligible to vote on such action, having not less than the minimum number of votes of each class of stock that would be necessary to authorize

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or take such action at a meeting at which all shares of each class of stock entitled to vote thereon were present and voted and shall be delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place of business, or to an officer or agent of the Corporation having custody of the book in which proceedings of minutes of Stockholders are recorded. Delivery made to the Corporation's registered office shall be by hand or by certified or registered mail, return receipt requested.

Every written consent shall bear the date of signature of each Stockholder who signs the consent and no written consent shall be effective to take the corporate action referred to therein unless, within 60 days of the earliest dated consent delivered in the manner required by this Section to the Corporation, written consents signed by a sufficient number of holders to take action are delivered to the Corporation by delivery to its registered office in the State of Delaware, its principal place of business, or to an officer or agent of the Corporation having custody of the book in which proceedings of minutes of Stockholders are recorded. Delivery made to the Corporation's registered office shall be by hand or by certified or registered mail, return receipt requested.

The Secretary shall give prompt notice of the taking of any corporate action without a meeting by less than unanimous written consent to those Stockholders who have not consented in writing and who, if the action had been taken at a meeting, would have been entitled to notice of the meeting if the record date for such meeting had been the date that written consents signed by a sufficient number of holders to take the action were delivered to the Corporation as provided in this Section 10.

Section 11 Inspectors of Election. In advance of any meeting of the Stockholders, the Board shall appoint at least one person, other than nominees for office, as inspectors of election, to act at such meeting or any adjournment thereof. The number of such inspectors of election shall be one or three. In case any person appointed as inspector fails to appear or refuses to act, the vacancy shall be filled by appointment by the Board in advance of the meeting, or at the meeting by the chairman of the meeting.

The duties of each such inspector shall include: determining the number of shares outstanding and voting power of each; determining the shares represented at the meeting; determining the existence of a quorum; determining the authenticity, validity and effect of proxies; receiving votes, ballots or consents; hearing and determining all challenges and questions in any way arising in connection with the right to vote; retaining for a reasonable period the disposition of any challenges made to the inspector's determinations; counting and tabulating all votes; determining when the polls shall close; determining the result of any election; certifying the determination of the number of shares represented at the meeting, and the count of all votes and ballots; certifying any information considered in determining the validity and counting of proxies and ballots if that information is used for the purpose of reconciling proxies and ballots submitted by or on behalf of banks, brokers, their nominees or similar persons which represent more votes than the Stockholder holds of record; and performing such acts as may be proper to conduct the election or vote with fairness to all Stockholders.

An announcement shall be made at each meeting of the Stockholders by the chairman of the meeting of the date and time of the opening and closing of polls for each matter upon which the Stockholders will vote at the meeting. No ballot, proxies or votes, nor any revocations thereof

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or changes thereto, shall be accepted by the inspectors after the closing of the polls unless the Delaware Court of Chancery upon application by a Stockholder shall determine otherwise.

Unless otherwise provided in the Certificate of Incorporation or these Bylaws, this Section 11 shall not apply to the Corporation if the Corporation does not have a class of voting stock that is:

(a) listed on a national securities exchange;

(b) authorized for quotation on an interdealer quotation system of a registered national securities association; or

(c) held of record by more than 2,000 Stockholders.

Section 12 Record Date. In order that the Corporation may determine the Stockholders entitled to notice of or to vote at any meeting of Stockholders or any adjournment thereof, or to express consent to corporate action in writing without a meeting, or entitled to receive payment of any dividend or other distribution or allotment of any rights, or entitled to exercise any rights in respect of any change, conversion or exchange of stock or for the purpose of any other lawful action, the Board may fix, in advance, a record date, which shall not be more than 60 nor less than 10 days before the date of such meeting, nor more than 60 days prior to any other action.

If no record date is fixed:

(a) The record date for determining Stockholders entitled to notice of or to vote at a meeting of Stockholders shall be at the close of business on the day next preceding the day on which notice is given, or, if notice is waived, at the close of business on the day next preceding the day on which the meeting is held;

(b) The record date for determining Stockholders entitled to express consent to corporate action in writing without a meeting, when no prior action by the Board is necessary, shall be the day on which the first written consent is expressed; and

(c) The record date for determining Stockholders for any other purpose shall be at the close of business on the day on which the Board adopts the resolution relating thereto.

A determination of Stockholders of record entitled to notice of or to vote at a meeting of Stockholders shall apply to any adjournment of the meeting; provided, however, that the Board may fix a new record date for the adjourned meeting.

Section 13 Conduct of Meetings. The Board may adopt such rules and regulations for the conduct of meetings of Stockholders as it shall deem appropriate. Except to the extent inconsistent with such rules and regulations as adopted by the Board, the chairman of any meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of the chairman, are appropriate for the proper conduct of the meeting. Such rules, regulations or procedures, whether adopted by the Board or prescribed by the chairman of the meeting, may include, without limitation, the following: (i) the establishment of an agenda or order of business for the meeting; (ii) rules and procedures for

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maintaining order at the meeting and the safety of those present; (iii) limitations on attendance at or participation in the meeting to Stockholders of record, their duly authorized and constituted proxies or such other persons as the chairman of the meeting shall determine; (iv) restrictions on entry to the meeting after the time fixed for commencement thereof; (v) limitations on the time allotted to questions or comments by participants. Unless and to the extent determined by the Board or the chairman of meeting, meetings of Stockholders shall not be required to be held in accordance with the rules of parliamentary procedure.

Section 14 Exception to Requirements of Notice. No notice is required to be given to any Stockholder under the Certificate of Incorporation or these Bylaws if under Section 230 of the DGCL no such notice is required to be given.

Section 15 Matters Considered at Annual Meeting. At an annual meeting of the Stockholders, only such business shall be conducted as shall have been properly brought before the meeting. To be properly brought before an annual meeting business must be (i) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board, (ii) otherwise properly brought before the meeting by or at the direction of the Board, or (iii) otherwise properly brought before the meeting by a Stockholder. For business to be properly brought before an annual meeting by a Stockholder, the Stockholder must have given timely notice thereof in writing to the Secretary of the Corporation. To be timely, a Stockholder's notice must be delivered to or mailed and received at the principal executive offices of the Corporation, not less than 60 days nor more than 90 days prior to the meeting; provided, however, that in the event that less than 70 days' notice or prior public disclosure of the date of the meeting is given or made to the Stockholders, notice by the Stockholder to be timely must be so received not later than the close of business on the 10th day following the day on which such notice of the date of the annual meeting was mailed or such public disclosure was made. A Stockholder's notice to the Secretary shall set forth as to each matter the Stockholder proposes to bring before the annual meeting (a) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (b) the name and address, as they appear on the Corporation's books, of the Stockholder proposing such business, (c) the class and number of shares of the Corporation which are beneficially owned by the Stockholder, and (d) any material interest of the Stockholder in such business. Notwithstanding anything in the Bylaws to the contrary, no business shall be conducted at any annual meeting except in accordance with the procedures set forth in this Section. The chairman of the annual meeting shall, if the facts warrant, determine and declare to the meeting that business was not properly brought before the meeting and in accordance with the provisions of this section and if he should so determine, he shall so declare to the meeting and any such business not properly brought before the meeting shall not be transacted.

Section 16 Nominations for Director. Only persons who are nominated in accordance with the procedures set forth in this Section shall be eligible for election as Directors. Nominations of persons for election to the Board may be made at a meeting of Stockholders by or at the direction of the Board or by any Stockholder entitled to vote for the election of Directors at the meeting who complies with the notice procedures set forth in this Section. Such nominations, other than those made by or at the direction of the Board shall be made pursuant to timely notice in writing to the Secretary of the Corporation. To be timely, a Stockholder's notice shall be delivered to or mailed and received at the principal executive offices of the Corporation not less

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than 60 days nor more than 90 days prior to the meeting; provided, however, that in the event that less than 70 days' notice or prior public disclosure of the date of the meeting is given or made to the Stockholders, notice by the Stockholder to be timely must be so received not later than the close of business on the 10th day following the day on which such notice of the date of the meeting was mailed or such public disclosure was made. Such Stockholder's notice shall set forth (i) as to each person whom the Stockholder proposes to nominate for election or re-election as a Director, (a) the name, age, business address and residence address of such person, (b) the principal occupation or employment of such person, (c) the class and number of shares of the Corporation which are beneficially owned by such person, and (d) any other information relating to such person that is required to be disclosed in solicitations of proxies for election of Directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (including without limitation such persons' written consent to being named in the proxy statement as a nominee and to serving as a Director if elected); and (ii) as to the Stockholder giving the notice (a) the name and address, as they appear on the Corporation's books, of such Stockholder and (bi) the class and number of shares of the Corporation which are beneficially owned by such Stockholder. At the request of the Board any person nominated by the Board for election as a Director shall furnish to the Secretary of the Corporation that information required to be set forth in a Stockholder's notice of nomination which pertains to the nominee. No person shall be eligible for election as a Director of the Corporation, other than for election to a vacant seat resulting from any resignation by a director or increase in the authorized number of directors, unless nominated in accordance with the procedures set forth in this Section. The chairman of the meeting shall, if the facts warrant, determine that a nomination was not made in accordance with the procedures prescribed by the Bylaws, and if he should so determine, he shall so declare to the meeting and the defective nomination shall be disregarded.

## ARTICLE II
## BOARD OF DIRECTORS

Section 1 Powers. The business and affairs of the Corporation shall be managed by, or under the direction of the Board, except as may be otherwise provided by the DGCL or in the Certificate of Incorporation or these Bylaws.

Section 2 Number. The Board shall consist of one or more members, the number thereof to be determined from time to time by resolution of the Board.

Section 3 Vacancies. Vacancies resulting from any resignation of a director or increase in the authorized number of directors may be filled by a majority of the directors then in office, although less than a quorum, or by a sole remaining director or by the Stockholders entitled to vote at any annual or special meeting held in accordance with Article I, and the directors so chosen shall hold office until their successors are duly elected and qualified, or until their earlier resignation or removal.

Section 4 Place of Meeting. Unless otherwise provided in the Certificate of Incorporation, meetings, both regular and special, of the Board shall be held at the Corporation's principal executive offices, or at such other place or places, as the Board or the Chairman of the Board may from time to time determine.

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Section 5 Regular Meetings. Immediately following each annual meeting of the Stockholders, the Board shall hold a regular meeting at the same place at which such Stockholders' meeting is held, or any other place as may be fixed from time to time by the Board or the Chairman of the Board. Notice of such meeting need not be given.

Other regular meetings of the Board shall be held without call at such time as the Board may from time to time determine. If any day fixed for a regular meeting shall be a legal holiday at the place where the meeting is to be held, then the meeting which would otherwise be held on that day shall be held at the same hour on the next succeeding business day not a legal holiday. Notice of a regular meeting need not be given.

Section 6 Special Meetings. Except as otherwise provided in the Certificate of Incorporation, special meetings of the Board for any purpose or purposes may be called at any time by the Chairman of the Board, the Chief Executive Officer or by any two directors.

Written notice of the time and place of special meetings shall be delivered personally to each director or communicated to each director by telephone or mail or other form of recorded communication, charges prepaid, addressed to each director at that director's address as it is shown on the records of the Corporation or, if it is not so shown on such records or is not readily ascertainable, at that director's residence or usual place of business. In case such notice is mailed, it shall be deposited in the United States mail at least seven days prior to the time of the holding of the meeting. In case such notice is delivered personally, by telephone or by written communication, it shall be delivered at least 48 hours before the time of the holding of the meeting. The notice shall state the time of the meeting, but need not specify the place of the meeting if the meeting is to be held at the principal executive office of the Corporation. The notice need not state the purpose of the meeting unless expressly provided otherwise by statute.

Section 7 Meetings by Communication Equipment. Members of the Board, or any committee designated by the Board, may participate in a meeting of the Board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other. Participation in a meeting pursuant to this Section shall constitute presence in person at such meeting.

Section 8 Quorum and Manner of Acting. The presence of a majority of the total number of directors shall constitute a quorum for the transaction of business, and the act of a majority of the directors present at a meeting at which a quorum is present shall be the act of the Board. In the absence of a quorum, a majority of the directors present may adjourn any meeting from time to time until a quorum is present. Notice of an adjourned meeting need not be given.

Section 9 Action Without Meeting. Any action required or permitted to be taken at any meeting of the Board, or of any committee thereof, may be taken without a meeting if all members of the Board or committee, as the case may be, consent thereto in writing and the writing or writings are filed with the minutes of proceedings of the Board or committee.

Section 10 Compensation of Directors. The Board may fix the compensation of directors.

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Section 11 Committees. The Board may, by resolution passed by a majority of the whole Board, designate one or more committees, each committee to consist of one or more of the directors of the Corporation. The Board may designate one or more directors as alternate members of any committee, who may replace any absent or disqualified member at any meeting of the committee. In the absence or disqualification of a member of the committee, the member or members thereof present at any meeting and not disqualified from voting, whether or not such member or members constitute a quorum, may unanimously appoint another member of the Board to act at the meeting in place of any such absent or disqualified member. Any such committee, to the extent permitted by law and to the extent authorized by the Board, shall have and may exercise all the powers and authority of the Board in the management of the business and affairs of the Corporation, and may authorize the seal of the Corporation to be affixed to all papers which may require it. The Board may remove any director from a committee with or without cause at any time.

### ARTICLE III
### OFFICERS

Section 1 Officers. The Board may elect such officers with such titles as the Board deems advisable. Each officer shall have the powers and duties set forth in any resolution of the Board appointing such officer, and to the extent not so provided, as generally pertain to their respective offices, subject to the control of the Board. Each such officer shall hold office until his or her successor is elected and qualified or until his or her earlier resignation or removal. Subject to contractual obligations to the Corporation, any officer may resign at any time upon written notice to the Corporation. The Board may remove any officer with or without cause at any time, but such removal shall be without prejudice to the contractual rights of such officer, if any, with the Corporation. One person may hold any number of offices.

### ARTICLE IV
### INDEMNIFICATION OF DIRECTORS,
### OFFICERS, EMPLOYEES AND OTHER AGENTS

Section 1 Agents, Proceedings and Expenses. For the purposes of this Article IV, “agent” means any person who is or was a director, officer, employee or other agent of the Corporation, or is or was a director, officer, employee or other agent of the Corporation as a director, officer, employee or agent of another foreign or domestic corporation, partnership, joint venture, trust or other enterprise, or was a director, officer, employee or agent of a foreign or domestic corporation which was a predecessor corporation of the Corporation or of another enterprise at the request of such predecessor corporation; “proceeding” means any threatened, pending or complete action or proceeding, whether civil, criminal, administrative, or investigative; and “expenses” includes, without limitation, attorneys’ fees and any expenses of establishing a right to indemnification under Section 2 or Section 3 of this Article IV.

Section 2 Actions Other Than by the Corporation. The Corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to, or testifies or otherwise participates in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative, arbitrative or investigative (other than an action by or in the right of the Corporation) by reason of the fact that such person is or was a director, officer, employee

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or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe such person's conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that such person's conduct was unlawful.

Section 3 Actions by the Corporation. The Corporation shall have power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that such person is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable for negligence or misconduct in the performance of such person's duty to the Corporation unless and only to the extent that the Delaware Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Delaware Court of Chancery or such other court shall deem proper.

Section 4 Successful Defense by Agent. To the extent that a present or former director or officer of the Corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in Section 2 or 3 of this Article IV, or in defense of any claim, issue or matter therein, such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

Section 5 Required Approval. Any indemnification under Sections 2 or 3 (unless ordered by a court) shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the present or former director, officer, employee or agent is proper in the circumstances because such person has met the applicable standard of conduct set forth in Sections 2 and 3 of this Article IV. Such determination shall be made, with respect to a person who is a director or officer at the time of such determination, (i) by a majority vote of the members of the Board who are not parties to such action, suit or proceeding, even though less than a quorum, or (ii) by a committee of such disinterested directors designated by majority vote of such disinterested directors, even though less than a quorum, or (iii) if there are no such disinterested directors, or if such disinterested directors so direct, by independent legal counsel in a written opinion, or (iv) by the affirmative vote of a majority of Stockholders.

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Section 6 Advance of Expenses. The Corporation may, in its discretion, pay the expenses (including attorneys' fees) incurred by an officer or director in defending any civil, criminal, administrative or investigative action, suit or proceeding, in advance of the final disposition of such action, suit or proceeding; provided, however, that the payment of expenses incurred by a director or officer in advance of the final disposition of the proceeding shall be made only upon receipt of an undertaking by or on behalf of such director or officer to repay all amounts advanced if it should ultimately be determined that the director or officer is not entitled to be indemnified by the Corporation as authorized in this Article IV or otherwise. Such expenses (including attorneys' fees) incurred by former directors and officers or other employees and agents may be so paid upon such terms and conditions, if any, as the Corporation deems appropriate.

Section 7 Contractual Rights. The indemnification and advancement of expenses provided by, or granted pursuant to, the other sections of this Article IV shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of Stockholders or disinterested directors or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office and shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 8 Limitations. No indemnification or advance shall be made under this Article IV, except as provided in Section 4, in any circumstances where it appears:

(a) That it would be inconsistent with a provision of the Certificate of Incorporation, a resolution of the Stockholders or an agreement in effect at the time of accrual of the alleged cause of action asserted in the proceeding in which the expenses were incurred or other amounts were paid, which prohibits or otherwise limits indemnification; or

(b) That it would be inconsistent with any condition expressly imposed by a court in approving a settlement.

Section 9 Insurance. The Corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the Corporation, or is or was serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against such person and incurred by such person in any such capacity, or arising out of such person's status as such, whether or not the Corporation would have the power to indemnify such person against such liability under the provisions of this Article IV.

Section 10 Constituent Corporations. For purposes of this Article IV, references to "the Corporation" shall include, in addition to the Corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the

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provisions of this Article IV with respect to the resulting or surviving corporation as such person would have with respect to such constituent corporation if its separate existence had continued.

Section 11 Definitions. For purposes of this Article IV, references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; and references to “serving at the request of the Corporation” shall include any service as a director, officer, employee or agent of the Corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner such person reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Corporation” as referred to in this Article IV.

## ARTICLE V
FORUM FOR ADJUDICATION OF DISPUTES

Section 1 Unless the Corporation consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Corporation, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Corporation to the Corporation or the Corporation’s stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, or (iv) any action asserting a claim governed by the internal affairs doctrine shall be a state or federal court located within the state of Delaware, in all cases subject to the court’s having personal jurisdiction over the indispensable parties named as defendants. Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Corporation shall be deemed to have notice of and consented to the provisions of this Article V.

## ARTICLE VI
MISCELLANEOUS

Section 1 Inspection of Books and Records by Stockholders. Any Stockholder of record, in person or by attorney or other agent, shall, upon written demand under oath stating the purpose thereof, have the right during the usual hours for business to inspect for any proper purpose the Corporation’s stock ledger, a list of its Stockholders, and its other books and records, and to make copies or extracts therefrom. A proper purpose shall mean a purpose reasonably related to such person’s interest as a Stockholder. In every instance where an attorney or other agent shall be the person who seeks the right to inspection, the demand under oath shall be accompanied by a power of attorney or such other writing which authorizes the attorney or other agent to so act on behalf of the Stockholder. The demand under oath shall be directed to the Corporation at its registered office in the State of Delaware or at its principal place of business.

Section 2 Inspection of Books and Records by Directors. Any director shall have the right to examine the Corporation’s stock ledger, a list of its Stockholders and its other books and records for a purpose reasonably related to such person’s position as a director. Such right to examine the records and books of the Corporation shall include the right to make copies and extract therefrom.

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Section 3 Checks, Drafts, Evidences of Indebtedness. All checks, drafts, or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the Corporation, shall be signed or endorsed by such person or persons and in such manner as, from time to time, shall be determined by the Board. In the absence of such determination, the Chief Executive Officer, the President, the Chief Operating Officer and the Chief Financial Officer shall have the authority to sign or endorse such instruments and documents.

Section 4 Corporate Contracts and Instruments; How Executed. The Board, except as otherwise provided in these Bylaws, may authorize any officer or officers, agent or agents, to enter into any contract or execute any instrument in the name of and on behalf of the Corporation, and such person's authority may be general or confined to specific instances; and, unless so authorized or ratified by the Board or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the Corporation by any contract or agreement or to pledge its credit or to render it liable for any purpose or for any amount. In the absence of specific resolution of the Board relating to the authority of officers to execute contracts generally, the Chief Executive Officer, the President, the Chief Operating Officer and the Chief Financial Officer shall have the authority to execute contracts of the Corporation.

Section 5 Certificates for Shares. The shares of the Corporation shall be represented by a certificate or shall be uncertificated. Certificates shall be signed by, or in the name of the Corporation by, the Chairman of the Board, the Chief Executive Officer, the President or a Vice President, and by the Treasurer, the Chief Financial Officer or an Assistant Treasurer, or the Secretary or an Assistant Secretary of the Corporation representing the number of shares owned by such person in the Corporation. Any or all of the signatures on the certificate may be a facsimile. If the Corporation shall be authorized to issue more than one class of stock or more than one series of any class, the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights shall be set forth in full or summarized on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock, provided that, except as otherwise provided in Section 202 of the DGCL, in lieu of the foregoing requirements, there may be set forth on the face or back of the certificate which the Corporation shall issue to represent such class or series of stock, a statement that the Corporation will furnish without charge to each Stockholder who so requests the powers, designations, preferences and relative, participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. Within a reasonable time after the issuance or transfer of uncertificated stock, the Corporation shall send to the registered owner thereof a written notice containing the information required to be set forth or stated on certificates pursuant to Sections 151, 156, 202(a) or 218(a) of the DGCL or a statement that the Corporation will furnish without charge to each Stockholder who so requests the powers, designations, preferences and relative participating, optional or other special rights of each class of stock or series thereof and the qualifications, limitations or restrictions of such preferences and/or rights. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he were such officer, transfer agent, or registrar at the date of issue.

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Section 6 Transfer of Shares. Transfers of shares of the capital stock of the Corporation shall be made only on the books of the Corporation by the holder thereof, or by such person's attorney thereunto authorized by a power of attorney duly executed and filed with the Secretary of the Corporation or a transfer agent of the Corporation, if any, and on surrender of the certificate or certificates for such shares properly endorsed. A person in whose name appears on shares of stock and on the books of the Corporation shall be deemed the owner thereof as regards the Corporation, and upon any transfer of shares of stock the person or persons into whose name or names such shares shall have been transferred, shall enjoy and bear all rights, privileges and obligations of holders of stock of the Corporation and as against the Corporation or any other person or persons. Upon receipt of proper transfer instructions from the registered owner of uncertificated shares, such uncertificated shares shall be cancelled and issuance of new equivalent uncertificated shares or certificated shares shall be made to the person entitled thereto and the transaction shall be recorded upon the books of the Corporation. The term "person" or "persons" wherever used herein shall be deemed to include any partnership, corporation, association or other entity. Whenever any transfer of shares shall be made for collateral security, and not absolutely, such fact, if known to the Secretary or to such transfer agent, shall be so expressed in the entry of transfer.

Section 7 Lost, Stolen or Destroyed Certificates. The Corporation may issue a new certificate of stock in the place of any certificate theretofore issued by it, alleged to have been lost, stolen or destroyed, and the Corporation may require the owner of the lost, stolen or destroyed certificate, or such person's legal representative, to give the Corporation a bond sufficient to indemnify it against any claim that may be made against it on account of the alleged loss, theft or destruction of any such certificate or the issuance of such new certificate.

Section 8 Representation of Shares of Other Corporations. The Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer or any person designated by any of such officers is authorized, in the absence of authorization by the Board, to vote on behalf of the Corporation any and all shares of any other corporation or corporations, foreign or domestic, for which the Corporation has the right to vote. The authority granted to these officers to vote or represent on behalf of the Corporation any and all shares held by the Corporation in any other corporation or corporations may be exercised by any of these officers in person or by any person authorized to do so by proxy duly executed by these officers.

Section 9 Construction and Definitions. Unless the context requires otherwise, the general provisions, rules of construction, and definitions in the DGCL shall govern the construction of these Bylaws. Without limiting the generality of this provision, the singular number includes the plural, the plural number includes the singular. In addition, as used in these Bylaws, the following terms have the meanings set forth below:

"Board" means the Board of Directors of the Corporation.

"DGCL" means the General Corporation Law of Delaware, as the same may from time to time be amended.

"Stockholders" means the stockholders of the Corporation.

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Section 10 Amendments to Bylaws. Unless otherwise provided in the Certificate of Incorporation, these Bylaws may be altered or repealed, and new Bylaws made, by the Board, but the Stockholders may make additional Bylaws and may alter and repeal any Bylaws whether adopted by them or otherwise.

Section 11 Conformance to the Law. In the event that it is determined that these Bylaws, as now written or as amended, conflict with the DGCL, or any other applicable law, as now enforced or as amended, these Bylaws shall be deemed amended, without action of the Board or the Stockholders, to conform with such law. Such amendment to be so interpreted as to bring these Bylaws within minimum compliance. For purposes of this section, “amendment” shall include a repeal of, or a change in interpretation of, the relevant compendium.

Section 12 Fiscal Year. The fiscal year of the Corporation shall be determined by the Board.

Section 13 Dividends; Surplus. Subject to the provisions of the Certificate of Incorporation and any restrictions imposed by statute, the Board may declare dividends out of the net assets of the Corporation in excess of its capital or, in case there shall be no such excess, out of the net profits of the Corporation for the fiscal year then current and/or the preceding fiscal year, or out of any funds at the time legally available for the declaration of dividends (hereinafter referred to as “surplus or net profits”) whenever, and in such amounts as, in its sole discretion, the conditions and affairs of the Corporation shall render advisable. The Board in its sole discretion may, in accordance with law, from time to time set aside from surplus or net profits such sum or sums as it may think proper as a reserve fund to meet contingencies, or for equalizing dividends, or for the purpose of maintaining or increasing the property or business of the Corporation, or for any other purpose as it may think conducive to the best interests of the Corporation.

Section 14 Waiver of Notice. Whenever notice is required to be given under these Bylaws or the Certificate of Incorporation or the DGCL, a written waiver, signed by the person entitled to notice, or a waiver by electronic transmission by the person entitled to notice, whether before or after the time stated therein, shall be deemed equivalent to notice. Attendance of a person at a meeting shall constitute a waiver of notice of such meeting, except where the person attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Stockholders, Board or any committee of the Board need be specified in any written waiver of notice unless so required by the Certificate of Incorporation or these Bylaws.

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# CERTIFICATE OF SECRETARY

I, the undersigned, do hereby certify:

(1) That I am the duly elected and acting Secretary of Aqua Research, Inc., a Delaware corporation (the "Corporation"); and
(2) That the foregoing Bylaws comprising of 14 pages, constitute the Bylaws of the Corporation as duly adopted by the Board of Directors.

IN WITNESS WHEREOF, I have hereunto subscribed my name as of this 10th day of June, 2022.

Lois Warren

Lois Warren, Secretary

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### UNITED STATES SECURITIES AND EXCHANGE COMMISSION
**Washington, D.C. 20549**

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** Aqua Research, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 09-01-2011

**Physical Address:** 5601 Midway Park Place NE, Albuquerque, NM, 87109

**Issuer Website:** https://www.aquaresearch.com

**Is there a Co-Issuer?:** No

**Intermediary Name:** NetCapital Funding Portal Inc.

**Intermediary CIK:** 0001669191

**Intermediary File Number:** 007-00035

**Intermediary CRD Number:** 283596

### Offering Information

**Compensation to Intermediary:** Up to 4.9% of amount raised for a successful offering and a listing fee of up to $10,000

**Financial Interest in Issuer:** None.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 6135

**Price per Security:** $1.63

**Method for Determining Price:** The price of the Securities was determined solely by the management and bears no relation to traditional measures of valuation such as book value or price-to-earnings ratios. We expect that any future valuation will take the same approach.

**Target Offering Amount:** $10,000.05

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** First-come, first-served basis

**Maximum Offering Amount:** $1,234,998.84

**Deadline to Reach Target Amount:** 04-03-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 5

**Total Assets (Most Recent Fiscal Year):** $447,877.00

**Total Assets (Prior Fiscal Year):** $253,788.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $108,906.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $98,533.00

**Accounts Receivable (Most Recent Fiscal Year):** $11,792.00

**Accounts Receivable (Prior Fiscal Year):** $0.00

**Short-Term Debt (Most Recent Fiscal Year):** $630,486.00

**Short-Term Debt (Prior Fiscal Year):** $523,887.00

**Long-Term Debt (Most Recent Fiscal Year):** $54,125.00

**Long-Term Debt (Prior Fiscal Year):** $0.00

**Revenues/Sales (Most Recent Fiscal Year):** $665,355.00

**Revenues/Sales (Prior Fiscal Year):** $1,175,727.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $351,215.00

**Cost of Goods Sold (Prior Fiscal Year):** $550,940.00

**Taxes Paid (Most Recent Fiscal Year):** $0.00

**Taxes Paid (Prior Fiscal Year):** $0.00

**Net Income (Most Recent Fiscal Year):** $-75,010.00

**Net Income (Prior Fiscal Year):** $52,755.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DELAWARE, DISTRICT OF COLUMBIA, FLORIDA, GEORGIA, HAWAII, IDAHO, ILLINOIS, INDIANA, IOWA, KANSAS, KENTUCKY, LOUISIANA, MAINE, MARYLAND, MASSACHUSETTS, MICHIGAN, MINNESOTA, MISSISSIPPI, MISSOURI, MONTANA, NEBRASKA, NEVADA, NEW HAMPSHIRE, NEW JERSEY, NEW MEXICO, NEW YORK, NORTH CAROLINA, NORTH DAKOTA, OHIO, OKLAHOMA, OREGON, PENNSYLVANIA, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING, B5, GU, 1V, PR, VI

### Signatures

**Issuer:** Aqua Research, Inc.

**Signature:** Gene  Rabent

**Title:** Principal Executive Officer

---

**Signature:** Gene  Rabent

**Title:** Principal Executive Officer

**Date:** 02-03-2023

---

**Signature:** Rodney  Herrington

**Title:** Principal Financial Officer

**Date:** 02-03-2023

---

**Signature:** Rodney  Herrington

**Title:** Principal Accounting Officer

**Date:** 02-03-2023