# EDGAR Filing Document

**Accession Number:** 0001965534
**File Stem:** 0001665160-23-000273
**Filing Date:** 2023-2
**Character Count:** 122251
**Document Hash:** c21aa94ac46287ad72591a459b8ce931
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001665160-23-000273.hdr.sgml**: 20230217

**ACCESSION NUMBER**: 0001665160-23-000273

**CONFORMED SUBMISSION TYPE**: C

**PUBLIC DOCUMENT COUNT**: 2

**FILED AS OF DATE**: 20230217

**DATE AS OF CHANGE**: 20230217

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Ponix, Inc.
- **CENTRAL INDEX KEY:** 0001965534
- **IRS NUMBER:** 871133060
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-31825
- **FILM NUMBER:** 23641271

**BUSINESS ADDRESS:**
- **STREET 1:** 209 EDGEWOOD AVE
- **STREET 2:** SE #102
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30303
- **BUSINESS PHONE:** 833-467-6649

**MAIL ADDRESS:**
- **STREET 1:** 209 EDGEWOOD AVE
- **STREET 2:** SE #102
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30303

### Attached PDF Documents

**Attachment 1:** `offeringmemoformc.pdf`

## **Offering Memorandum: Part II of Offering Document (Exhibit A to Form C)**

Ponix, Inc.
209 Edgewood Ave. SE #102
Atlanta, GA 30303
https://ponixfarms.com/

Up to $1,234,998.72 in Class B Common Stock at $2.46
Minimum Target Amount: $14,998.62

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.

# Company:

Company: Ponix, Inc.

Address: 209 Edgewood Ave. SE #102, Atlanta, GA 30303

State of Incorporation: DE

Date Incorporated: May 12, 2021

# Terms:

Equity

Offering Minimum: $14,998.62 | 6,097 shares of Class B Common Stock

Offering Maximum: $1,234,998.72 | 502,032 shares of Class B Common Stock

Type of Security Offered: Class B Common Stock

Purchase Price of Security Offered: $2.46

Minimum Investment Amount (per investor): $250.92

*Maximum number of shares offered subject to adjustment for bonus shares. See Bonus info below.

# Investment Incentives & Bonuses*

# Time-Based:

Friends and Family Early Birds

Invest $1,000 within the first 48 hours and receive 15% bonus shares.

Super Early Bird Bonus

Invest $1,000 within the first week and receive 10% bonus shares.

Early Bird Bonus

Invest $1,000 within the first two weeks and receive an 5% bonus shares.

# Amount-Based:

$500+ | The Planter

Invest $500+ and receive a free Ponix t-shirt.

$1,000+ | The Cultivator

Invest $1,000+ and receive a free Ponix t-shirt + free Ponix Mini home garden + 5% Bonus Shares.

$2,500+ | The Producer

Invest $2,500+ and receive a free Ponix t-shirt + free Ponix Mini home garden + 7%

Bonus Shares.

### **\$5,000+ | The Harvester**

Invest $5,000+ and receive a free Ponix t-shirt + free Ponix Mini home garden + 10% Bonus Shares.

### **\$10,000+ | The Future Farmer**

Invest $10,000+ and receive a free Ponix t-shirt + free Ponix Mini home garden + VIP access to Ponix Harvest Invitational Events + 15% Bonus Shares.

*In order to receive perks from an investment, one must submit a single investment in the same offering that meets the minimum perk requirement. Bonus shares from perks will not be granted if an investor submits multiple investments that, when combined, meet the perk requirement. All perks occur when the offering is completed.*

### **The 10% StartEngine Owners' Bonus**

Ponix, Inc. will offer 10% additional bonus shares for all investments that are committed by investors that are eligible for the StartEngine Crowdfunding Inc. OWNer's bonus.

This means eligible StartEngine shareholders will receive a 10% bonus for any shares they purchase in this offering. For example, if you buy 100 shares of Class B Common Stock at $2.46/share, you will receive 10 additional shares of Class B Common Stock, meaning you'll own 110 shares for $246. Fractional shares will not be distributed and share bonuses will be determined by rounding down to the nearest whole share.

This 10% Bonus is only valid during the investor's eligibility period. Investors eligible for this bonus will also have priority if they are on a waitlist to invest and the company surpasses its maximum funding goal. They will have the first opportunity to invest should room in the offering become available if prior investments are canceled or fail.

Investors will receive the highest single bonus they are eligible for among the bonuses based on the amount invested and time of offering elapsed (if any). Eligible investors will also receive the Owner's Bonus in addition to the aforementioned bonus.

## **The Company and its Business**

### *Company Overview*

Ponix, Inc. ('Ponix' or the 'Company') is a C-Corporation organized under the laws of the state of Delaware. Ponix, Inc previously operated as Ponix, LLC (organized in New York on Sept. 18, 2014) and has since converted into a Delaware C-Corp. on May 21, 2021.

Ponix establishes and operates autonomous smart indoor vertical farming facilities - providing businesses and consumers direct access to fresh fruits, vegetables, and

herbs - much like a power plant provides residents and businesses with electricity. We believe direct access to the freshest produce hasn’t been this easy.

Ponix is building resilient food systems by creating innovative agriculture solutions and deploying them to the commercial market where consumers and communities everywhere can utilize our smart farming technology. Leveraging hydroponics, aquaponics, aeroponics, and indoor vertical growing methods, we are able to produce a variety of high-quality, nutrient-rich, crops with minimal resources and no pesticides. Our zero-waste approach requires 95% less land and 90% less water compared to conventional soil farming.

The Company has filed 4 patents and registered 5 trademarks with USPTO and assigned all of its Intellectual Property to Ponix, Inc. Ponix has plans to license its IP portfolio to other businesses in the future to reach national and international markets.

*Competitors and Industry*

#### Competitors

Plenty: Raised $941M so far in total funding. We are different from Plenty because of our hardware design. Currently, the hardware that Plenty utilizes is from ZipGrow Towers and requires more labor than Ponix's hardware design.

AppHarvest: Raised $616.3M so far in total funding. We are different from AppHarvest because we have a vertical farming solution rather than a horizontal farming solution used by AppHarvest. They are currently listed on NASDAQ: APPH

#### Landscape

According to MarketsandMarkets, the global hydroponic system market is valued at USD 12.1 billion in 2022 and is projected to reach USD 25.1 billion by 2027. The global hydroponic crop market is estimated to be valued at USD 37.7 billion in 2022 and is projected to reach USD 53.4 billion by 2027, recording a CAGR of 7.2%.

Hydroponic systems or soil-less agriculture reduce the farmer's consumption of resources, enabling this farming technique to be adopted by many stakeholders, ranging from home gardeners to professional growers and supermarkets to restaurants. According to the UN reports on global population, in 2018, plants grown in hydroponic systems achieved a 20-25% higher yield than the traditional agriculture system, with their productivity being 2-5 times higher. Also, owing to their controlled environmental conditions, the effect of climate changes can be balanced with the help of these systems, thereby not affecting the annual crop production.

*Current Stage and Roadmap*

#### Current Stage

We are selling indoor farming equipment to 2 enterprise customers and we believe to

increase our customer base to 10 by end of 2023. We are selling produce to 1 supermarket in Atlanta and working towards bring more fresh produce to the Southeast Region of the U.S.

### **Technology Roadmap:**

Continue innovating on indoor farming hardware and software that grows fruiting vegetables and root vegetables (currently we only can grow leafy greens and mushrooms). Sell/License to businesses and organizations to utilize our farming equipment.

### **Market Expansion:**

We aim to supply fresh hydroponic produce to 5 supermarkets and sell/license our farming technology to 10 enterprise customers in 2023 across the Southeast Region of the U.S. and internationally.

### **Production Expansion:**

The Company is looking to expand it's food production operations to a 10 acre indoor farming facility development by 2025. With this expansion, we aim to produce 22 million pounds of fresh hydroponic produce every year. We will use part of the proceeds raised from this crowdfunding campaign towards purchase of land.

## **The Team**

### **Officers and Directors**

**Name:** Hyon Y. Choi

Hyon Y. Choi's current primary role is with the Issuer.

Positions and offices currently held with the issuer:

- **Position:** CEO & Director

**Dates of Service:** September, 2014 - Present

**Responsibilities:** Responsible for providing strategic, financial and operational leadership for the company and will closely coordinate and work with the Board of Directors and senior leadership team. Day to Day responsibilities include strategic direction, implementing proposed plans, media and public relations, product development, business development, partnerships, setting work culture and environment. Hyon Choi owns 21.87% equity and does not currently take a salary. Hyon plans to take a salary in 2023 of approximately $86,000 per year. He plans to take this once the $5M grant comes through which is anticipated in February 2023.

**Name:** Michael Jinks

Michael Jinks's current primary role is with Pollen Electric, LLC. Michael Jinks currently services 1 hours per week in their role with the Issuer.

Positions and offices currently held with the issuer:

- **Position:** Board Member
  **Dates of Service:** February, 2016 - Present
  **Responsibilities:** Attend Board Meetings and develop strategies. Currently does not take a salary. Has 1.69% equity.

Other business experience in the past three years:

- **Employer:** Wags Capital
  **Title:** CFO
  **Dates of Service:** January, 2021 - October, 2022
  **Responsibilities:** Finance Strategy, Analysis, Business Development

Other business experience in the past three years:

- **Employer:** Cash Network
  **Title:** Partner, Co-Founder
  **Dates of Service:** January, 2012 - July, 2021
  **Responsibilities:** Finance Strategy, Analysis, Business Development

Other business experience in the past three years:

- **Employer:** Pollen Electric, LLC
  **Title:** Managing Partner
  **Dates of Service:** October, 2022 - Present
  **Responsibilities:** Finance Strategy, Analysis, Business Development

**Name:** Patrick McGowan

Patrick McGowan's current primary role is with NGMI Global. Patrick McGowan currently services 1 hours per week in their role with the Issuer.

Positions and offices currently held with the issuer:

- **Position:** Board Member
  **Dates of Service:** September, 2014 - Present
  **Responsibilities:** Attend board meetings. Currently does not take a salary. Has 19.81% equity.

Other business experience in the past three years:

• Employer: Spinning Rock
Title: CEO
Dates of Service: December, 2018 - December, 2020
Responsibilities: Design, Business Development, Strategy

Other business experience in the past three years:

• Employer: NGMI Global
Title: General Partner
Dates of Service: June, 2021 - Present
Responsibilities: Analysis, Product Incubation

Name: Dave Murray

Dave Murray's current primary role is with Accountants & Tax Consultants LLC. Dave Murray currently services 5 hours per week in their role with the Issuer.

Positions and offices currently held with the issuer:

• Position: CFO
Dates of Service: January, 2023 - Present
Responsibilities: Responsible for tracking cash flow, financial planning, analyzing the company's financial strengths and weaknesses, and routine accounting functions. No Salary; No Equity.

Other business experience in the past three years:

• Employer: Accountants & Tax Consultants LLC
Title: President
Dates of Service: July, 2013 - Present
Responsibilities: CPA

## Risk Factors

The SEC requires the company to identify risks that are specific to its business and its financial condition. The company is still subject to all the same risks that all companies in its business, and all companies in the economy, are exposed to. These include risks relating to economic downturns, political and economic events and technological developments (such as hacking and the ability to prevent hacking). Additionally, early-stage companies are inherently more risky than more developed companies. You should consider general risks as well as specific risks when deciding whether to invest.

These are the risks that relate to the Company:

### ***Uncertain Risk***

An investment in the Company (also referred to as “we”, “us”, “our”, or “Company”) involves a high degree of risk and should only be considered by those who can afford the loss of their entire investment. Furthermore, the purchase of any of the Class B Common Stock should only be undertaken by persons whose financial resources are sufficient to enable them to indefinitely retain an illiquid investment. Each investor in the Company should consider all of the information provided to such potential investor regarding the Company as well as the following risk factors, in addition to the other information listed in the Company’s Form C. The following risk factors are not intended, and shall not be deemed to be, a complete description of the commercial and other risks inherent in the investment in the Company.

### ***Our business projections are only projections***

There can be no assurance that the Company will meet our projections. There can be no assurance that the Company will be able to find sufficient demand for our product, that people think it’s a better option than a competing product, or that we will be able to provide the service at a level that allows the Company to make a profit and still attract business.

### ***Any valuation at this stage is difficult to assess***

The valuation for the offering was established by the Company. 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.

### ***The transferability of the Securities you are buying is limited***

Any Class B Common Stock purchased through this crowdfunding campaign is subject to SEC limitations of transfer. This means that the stock/note that you purchase cannot be resold for a period of one year. The exception to this rule is if you are transferring the stock back to the Company, to an “accredited investor,” as part of an offering registered with the Commission, to a member of your family, trust created for the benefit of your family, or in connection with your death or divorce.

### ***Your investment could be illiquid for a long time***

You should be prepared to hold this investment for several years or longer. For the 12 months following your investment there will be restrictions on how you can resell the securities you receive. More importantly, there is no established market for these securities and there may never be one. As a result, if you decide to sell these securities in the future, you may not be able to find a buyer. The Company may be acquired by an existing player in the educational software development industry. However, that may never happen or it may happen at a price that results in you losing money on this investment.

### ***If the Company cannot raise sufficient funds it will not succeed***

The Company is offering Class B Common Stock in the amount of up to $1,234,998.72 in this offering, and it may close on any investments that are made. Even if the maximum amount is raised, the Company is likely to need additional funds in the

future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the Company itself or the broader economy, it may not survive. If the Company manages to raise only the minimum amount of funds, sought, it will have to find other sources of funding for some of the plans outlined in “Use of Proceeds.”

# ***We may not have enough capital as needed and may be required to raise more capital.***

We anticipate needing access to credit in order to support our working capital requirements as we grow. Although interest rates are low, it is still a difficult environment for obtaining credit on favorable terms. If we cannot obtain credit when we need it, we could be forced to raise additional equity capital, modify our growth plans, or take some other action. Issuing more equity may require bringing on additional investors. Securing these additional investors could require pricing our equity below its current price. If so, your investment could lose value as a result of this additional dilution. In addition, even if the equity is not priced lower, your ownership percentage would be decreased with the addition of more investors. If we are unable to find additional investors willing to provide capital, then it is possible that we will choose to cease our sales activity. In that case, the only asset remaining to generate a return on your investment could be our intellectual property. Even if we are not forced to cease our sales activity, the unavailability of credit could result in the Company performing below expectations, which could adversely impact the value of your investment.

# ***Terms of subsequent financings may adversely impact your investment***

We will likely need to engage in common equity, debt, or preferred stock financings in the future, which may reduce the value of your investment in the Common Stock. Interest on debt securities could increase costs and negatively impact operating results. Preferred stock could be issued in series from time to time with such designation, rights, preferences, and limitations as needed to raise capital. The terms of preferred stock could be more advantageous to those investors than to the holders of Common Stock. In addition, if we need to raise more equity capital from the sale of Common Stock, institutional or other investors may negotiate terms that are likely to be more favorable than the terms of your investment, and possibly a lower purchase price per share.

# ***Management Discretion as to Use of Proceeds***

Our success will be substantially dependent upon the discretion and judgment of our management team with respect to the application and allocation of the proceeds of this Offering. The use of proceeds described below is an estimate based on our current business plan. We, however, may find it necessary or advisable to re-allocate portions of the net proceeds reserved for one category to another, and we will have broad discretion in doing so.

# ***Projections: Forward Looking Information***

Any projections or forward looking statements regarding our anticipated financial or operational performance are hypothetical and are based on management’s best estimate of the probable results of our operations and will not have been reviewed by

our independent accountants. These projections will be based on assumptions which management believes are reasonable. Some assumptions invariably will not materialize due to unanticipated events and circumstances beyond management's control. Therefore, actual results of operations will vary from such projections, and such variances may be material. Any projected results cannot be guaranteed.

# ***The amount raised in this offering may include investments from company insiders or immediate family members***

Officers, directors, executives, and existing owners with a controlling stake in the company (or their immediate family members) may make investments in this offering. Any such investments will be included in the raised amount reflected on the campaign page.

# ***Some of our products are still in prototype phase and might never be operational products***

It is possible that there may never be an operational product or that the product may never be used to engage in transactions. It is possible that the failure to release the product is the result of a change in business model upon the Company's making a determination that the business model, or some other factor, will not be in the best interest of the Company and its stockholders.

# ***Developing new products and technologies entails significant risks and uncertainties***

We are currently in the research and development stage and have only manufactured a prototype for our product. Delays or cost overruns in the development of our product and failure of the product to meet our performance estimates may be caused by, among other things, unanticipated technological hurdles, difficulties in manufacturing, changes to design and regulatory hurdles. Any of these events could materially and adversely affect our operating performance and results of operations.

# ***Minority Holder; Securities with No Voting Rights***

The Class B Common Stock that an investor is buying has no voting rights attached to them. This means that you will have no rights in dictating on how the Company will be run. You are trusting in management discretion in making good business decisions that will grow your investments. Furthermore, in the event of a liquidation of our company, you will only be paid out if there is any cash remaining after all of the creditors of our company have been paid out.

# ***You are trusting that management will make the best decision for the company***

You are trusting in management discretion. You are buying securities as a minority holder, and therefore must trust the management of the Company to make good business decisions that grow your investment.

# ***Insufficient Funds***

The company might not sell enough securities in this offering to meet its operating needs and fulfill its plans, in which case it will cease operating and you will get nothing. Even if we sell all the common stock we are offering now, the Company will (possibly) need to raise more funds in the future, and if it can't get them, we will fail. Even if we do make a successful offering in the future, the terms of that offering might

result in your investment in the company being worth less, because later investors might get better terms.

*This offering involves “rolling closings,” which may mean that earlier investors may not have the benefit of information that later investors have.*

Once we meet our target amount for this offering, we may request that StartEngine instruct the escrow agent to disburse offering funds to us. At that point, investors whose subscription agreements have been accepted will become our investors. All early-stage companies are subject to a number of risks and uncertainties, and it is not uncommon for material changes to be made to the offering terms, or to companies’ businesses, plans or prospects, sometimes on short notice. When such changes happen during the course of an offering, we must file an amended to our Form C with the SEC, and investors whose subscriptions have not yet been accepted will have the right to withdraw their subscriptions and get their money back. Investors whose subscriptions have already been accepted, however, will already be our investors and will have no such right.

*Our new product could fail to achieve the sales projections we expected*

Our growth projections are based on an assumption that with an increased advertising and marketing budget our products will be able to gain traction in the marketplace at a faster rate than our current products have. It is possible that our new products will fail to gain market acceptance for any number of reasons. If the new products fail to achieve significant sales and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

*We face significant market competition*

We will compete with larger, established companies who currently have products on the market and/or various respective product development programs. They may have much better financial means and marketing/sales and human resources than us. They may succeed in developing and marketing competing equivalent products earlier than us, or superior products than those developed by us. There can be no assurance that competitors will render our technology or products obsolete or that the products developed by us will be preferred to any existing or newly developed technologies. It should further be assumed that competition will intensify.

*We are an early stage company and have not yet generated any profits*

Ponix, Inc was formed on May 5th, 2021. Accordingly, the Company has a limited history upon which an evaluation of its performance and future prospects can be made. Our current and proposed operations are subject to all business risks associated with new enterprises. These include likely fluctuations in operating results as the Company reacts to developments in its market, managing its growth and the entry of competitors into the market. We will only be able to pay dividends on any shares once our directors determine that we are financially able to do so. Ponix, Inc has incurred a net loss and has had limited revenues generated since inception. There is no assurance that we will be profitable in the next 3 years or generate sufficient revenues to pay dividends to the holders of the shares.

### ***We have pending patent approval's that might be vulnerable***

One of the Company's most valuable assets is its intellectual property. The Company's intellectual property such as patents, trademarks, copyrights, Internet domain names, and trade secrets may not be registered with the proper authorities. We believe one of the most valuable components of the Company is our intellectual property portfolio. Due to the value, competitors may misappropriate or violate the rights owned by the Company. The Company intends to continue to protect its intellectual property portfolio from such violations. It is important to note that unforeseeable costs associated with such practices may invade the capital of the Company due to its unregistered intellectual property.

### ***Our trademarks, copyrights and other intellectual property could be unenforceable or ineffective***

Intellectual property is a complex field of law in which few things are certain. It is possible that competitors will be able to design around our intellectual property, find prior art to invalidate it, or render the patents unenforceable through some other mechanism. If competitors are able to bypass our trademark and copyright protection without obtaining a sublicense, it is likely that the Company's value will be materially and adversely impacted. This could also impair the Company's ability to compete in the marketplace. Moreover, if our trademarks and copyrights are deemed unenforceable, the Company will almost certainly lose any potential revenue it might be able to raise by entering into sublicenses. This would cut off a significant potential revenue stream for the Company.

### ***The cost of enforcing our trademarks and copyrights could prevent us from enforcing them***

Trademark and copyright litigation has become extremely expensive. Even if we believe that a competitor is infringing on one or more of our trademarks or copyrights, we might choose not to file suit because we lack the cash to successfully prosecute a multi-year litigation with an uncertain outcome; or because we believe that the cost of enforcing our trademark(s) or copyright(s) outweighs the value of winning the suit in light of the risks and consequences of losing it; or for some other reason. Choosing not to enforce our trademark(s) or copyright(s) could have adverse consequences for the Company, including undermining the credibility of our intellectual property, reducing our ability to enter into sublicenses, and weakening our attempts to prevent competitors from entering the market. As a result, if we are unable to enforce our trademark(s) or copyright(s) because of the cost of enforcement, your investment in the Company could be significantly and adversely affected.

### ***The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel in the future, could harm our business***

To be successful, the Company requires capable people to run its day to day operations. As the Company grows, it will need to attract and hire additional employees in sales, marketing, design, development, operations, finance, legal, human resources and other areas. Depending on the economic environment and the Company's performance, we may not be able to locate or attract qualified individuals for such positions when we need them. We may also make hiring mistakes, which can

be costly in terms of resources spent in recruiting, hiring and investing in the incorrect individual and in the time delay in locating the right employee fit. If we are unable to attract, hire and retain the right talent or make too many hiring mistakes, it is likely our business will suffer from not having the right employees in the right positions at the right time. This would likely adversely impact the value of your investment.

# ***We rely on third parties to provide services essential to the success of our business***

We rely on third parties to provide a variety of essential business functions for us, including manufacturing, shipping, accounting, legal work, public relations, advertising, retailing, and distribution. It is possible that some of these third parties will fail to perform their services or will perform them in an unacceptable manner. It is possible that we will experience delays, defects, errors, or other problems with their work that will materially impact our operations and we may have little or no recourse to recover damages for these losses. A disruption in these key or other suppliers' operations could materially and adversely affect our business. As a result, your investment could be adversely impacted by our reliance on third parties and their performance.

# ***Our management team may invest or spend the proceeds of this offering in ways with which you may not agree or in ways which may not yield a significant return.***

Management will have broad discretion over the use of proceeds from this offering. The net proceeds from this offering, if any, will be used for working capital and general corporate purposes, including to fund construction of planned facilities. Management will have considerable discretion in the application of the net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The net proceeds may be used for corporate purposes that do not increase our operating results or enhance the value of the stock.

# ***We have an evolving business model, which increases the complexity of our business and makes it difficult to evaluate our future business prospects.***

Our business model is continuing to evolve. We are primarily engaged in building a sustainable food company with a resilient and scalable ecosystem of applied technology greenhouses to produce fresh produce and food products in the U.S. We also intend to pursue additional opportunities through partnerships with third parties, including opportunities outside of the U.S. From time to time, we may continue to modify aspects of our business model relating to our products and services. We do not know whether these or any other modifications will be successful. The evolution of and modifications to our business model will continue to increase the complexity of our business and place significant strain on our management, personnel, operations, systems, technical performance and financial resources. Future additions to or modifications of our business model are likely to have similar effects. Further, any new products or services we offer that are not favorably received by the market could damage our reputation or our brand. The occurrence of any of the foregoing could have a material adverse effect on our business, financial condition and results of operations.

# ***We face risks inherent in the greenhouse agriculture business, including the risks of diseases and pests.***

We are focused on building small- and large-scale facilities across the US and in some foreign countries through partners with the goal of providing quality supply of fresh fruits and vegetables. As an agricultural business, we are subject to the risks inherent in an agricultural business, such as insects, plant and seed diseases and similar agricultural risks, which may include crop losses, for which we are not insured; production of non-saleable products; and rejection of products for quality or other reasons, all of which may materially affect our operational and financial performance. Although our produce is grown in climate-controlled greenhouses, there can be no assurance that natural elements will not have an effect on the production of these products.

# ***The unavailability, reduction or elimination of government and economic incentives could negatively impact our business, prospects, financial condition and operating results.***

Any reduction, elimination or discriminatory application of government subsidies and economic incentives because of policy changes, the reduced need for such subsidies and incentives due to the perceived success of our operations or other reasons may result in the diminished competitiveness of the industry generally or our products in particular. This could materially and adversely affect the growth of the CEA facility markets and our business, prospects, financial condition and operating results.

# ***Changes in existing laws or regulations, or the adoption of new laws or regulations, may increase our costs and otherwise adversely affect our business, results of operations and financial condition.***

The manufacture and marketing of food products is highly regulated. We and our suppliers are subject to a variety of laws and regulations. These laws and regulations apply to many aspects of our business, including the manufacture, packaging, labeling, distribution, advertising, sale, quality, and safety of our products, as well as the health and safety of our employees and the protection of the environment.

# ***A cybersecurity incident or other technology disruptions could negatively impact our business.***

We use or plan to use computers, software and technology in substantially all aspects of our business operations. We build and operate robotics which rely on these technologies. Our employees also use or plan to use mobile devices, social networking and other online activities to connect with crew members, distributors, customers and consumers. Such uses give rise to cybersecurity risks, including security breaches, espionage, system disruption, theft and inadvertent release of information. Cybersecurity incidents are increasing rapidly in their frequency, sophistication and intensity, with third-party phishing and social engineering attacks. Our business involves sensitive information and intellectual property, including know-how, private information about crew members and financial and strategic information about us and our business partners. While we have implemented and plans to implement measures to prevent security breaches and cyber incidents, these preventative measures and incident response efforts may not be entirely effective. The theft, destruction, loss,

misappropriation or release of sensitive information or intellectual property, or interference with our information technology systems or the technology systems of third parties on which we rely, could result in business disruption, negative publicity, brand damage, violation of privacy laws, loss of customers and distributors, potential liability and competitive disadvantage all of which could negatively impact our business, financial condition or results of operations.

*If we are unable to apply technology effectively in driving value for our clients through our technology-based platforms, our results of operations, client relationships and growth could be adversely affected.*

Our future success depends, in part, on our ability to anticipate and respond effectively to the threat and opportunity presented by digital disruption and developments in technology. These may include new robotics and automation products which we seek to introduce as turnkey indoor growing technology solutions. We may be exposed to competitive risks related to the adoption and application of new technologies by established market participants or new entrants such as technology companies and others. These new entrants are focused on using technology and innovation, including artificial intelligence, to simplify and improve the client experience, increase efficiencies, alter business models and effect other potentially disruptive changes in the industries in which we operate. If we fail to develop and implement technology solutions and technical expertise among our employees that anticipate and keep pace with rapid and continuing changes in technology, industry standards, client preferences and internal control standards, our value proposition and operating efficiency could be adversely affected. We may not be successful in anticipating or responding to these developments on a timely and cost-effective basis and our ideas may not be accepted in the marketplace. Additionally, the effort to gain technological expertise and develop new technologies in our business requires us to incur significant expenses. Our ability to build our technology depends on obtaining necessary capital when needed and on acceptable terms, which we may not be able to secure. If we cannot offer new technologies as quickly as our competitors, or if our competitors develop more cost-effective technologies or product offerings, we could experience a material adverse effect on our results of operations, client relationships, growth and compliance programs.

*The loss of any intellectual property could enable other companies to compete more effectively with us.*

We own trademarks and other proprietary rights that are important to our business. These are valuable assets that reinforce the distinctiveness of our brand to consumers. We believe that the protection of our intellectual property is important to our success. Our continued success depends, to a significant degree, upon our ability to protect and preserve our intellectual property, including trademarks and copyrights.

*We may be unable to obtain or qualify for government grants and incentives in the future.*

We applied for and received various government grants and incentives in connection with our business, and we may in the future apply for federal and state grants, loans and tax incentives under government programs designed to stimulate the economy

and support sustainable agriculture. Our ability to obtain funds or qualify for incentives from government or other sources is subject to availability of funds under applicable programs and approval of our applications to participate in such programs. The application process for these funds and other incentives will likely be highly competitive. We cannot assure you that we will be successful in obtaining or qualifying for any of these additional grants, loans and other incentives, and failure to obtain or qualify for these grants, loans and other incentives could have a negative effect on our operating costs and ability to open additional greenhouses.

*Our employees and independent contractors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements, which could negatively impact our business, prospects, financial condition and operating results.*

We are exposed to the risk that our employees and independent contractors may engage in misconduct or other illegal activity. Misconduct by these parties could include intentional, reckless or negligent conduct or other activities that violate laws and regulations, including production standards, U.S. federal and state fraud, abuse, data privacy and security laws, other similar non-U.S. laws or laws that require the true, complete and accurate reporting of financial information or data. It is not always possible to identify and deter misconduct by employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. In addition, we are subject to the risk that a person or government could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, prospects, financial condition and operating results, including, without limitation, the imposition of significant civil, criminal and administrative penalties, damages, monetary fines, disgorgement, integrity oversight and reporting obligations to resolve allegations of non-compliance, imprisonment, other sanctions, contractual damages, reputational harm, diminished profits and future earnings and curtailment of our operations, any of which could adversely affect our business, prospects, financial condition and operating results.

*The COVID-19 pandemic could negatively impact on our business, results of operations and financial condition.*

In connection with the COVID-19 pandemic, and variants thereof, governments have implemented significant measures, including closures, quarantines, travel restrictions and other social distancing directives, intended to control the spread of the virus. Companies have also taken precautions, such as requiring employees to work remotely, imposing travel restrictions and temporarily closing businesses. While such measures have been relaxed in certain jurisdictions, to the extent that these restrictions remain in place, additional prevention and mitigation measures are implemented in the future, or there is uncertainty about the effectiveness of these or any other measures to contain, treat, or prevent COVID-19, there is likely to be an adverse impact on global economic conditions and consumer confidence and

spending, which could materially and adversely affect our operations and demand for our products. Although we have not experienced material financial impacts due to the pandemic, the fluid nature of the COVID-19 pandemic and uncertainties regarding the related economic impact are likely to result in sustained market turmoil, which could also negatively impact our business, financial condition and cash flows. Although our business is considered an “essential business,” the COVID-19 pandemic could result in labor shortages, which could result in our inability to plant and harvest crops at full capacity and could result in spoilage or loss of unharvested crops. The impact of COVID-19 on any of our suppliers, distributors, transportation or logistics providers may negatively affect our costs of operation and our supply chain. If the disruptions caused by the COVID-19 pandemic, including decreased availability of labor, continue despite the increasing availability of vaccines, our ability to meet the demands of distributors and customers may be materially impacted. Further, the COVID-19 pandemic may impact customer and consumer demand. There may be significant reductions or volatility in consumer demand for our products due to the temporary inability of consumers to purchase these products due to illness, quarantine or financial hardship, shifts in demand away from one or more of our products, decreased consumer confidence and spending, inflation or pantry-loading activity, any of which may negatively impact our results, including as a result of an increased difficulty in planning for operations and future growing seasons. The extent of the COVID-19 pandemic’s effect on our operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic and the effectiveness of vaccines against COVID-19 and variants thereof, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As a result, it is not currently possible to ascertain the overall impact of the COVID-19 pandemic on our business. However, if the pandemic continues to persist as a severe worldwide health crisis, the disease could negatively impact our business, financial condition results of operations and cash flows, and may also have the effect of heightening many of the other risks described in this “Risk Factors” section.

*If we fail to retain and motivate members of our management team or other key employees, our business and future growth prospects would be harmed.*

Our success and future growth depend largely upon the continued services of our executive officers as well as other key employees. These executives and key employees have been primarily responsible for determining the strategic direction of the business and executing our growth strategy and are integral to our brand, culture and reputation with distributors and others in the industry. From time to time, there may be changes in our executive management team or other key employees resulting from the hiring or departure of these personnel. The loss of one or more of executive officers, or the failure by the executive team to effectively work with employees and lead the company, could harm our business.

*The Company’s CEO does not currently take a salary.*

Hyon Choi, the Company CEO, does not currently take a salary, however, he owns 21.87% equity of the company. Hyon plans to take a salary in 2023 of approximately $86,000 per year. He plans to take this once the $5M grant comes through which is anticipated in February 2023. There is some risk in investing in a company whose day-

to-day operations are managed by an individual who does not receive a salary.

# Ownership and Capital Structure; Rights of the Securities

## Ownership

The following table sets forth information regarding beneficial ownership of the company's holders of 20% or more of any class of voting securities as of the date of this Offering Statement filing.

| Stockholder Name | Number of Securities Owned | Type of Security Owned | Percentage |
| --- | --- | --- | --- |
| Hyon Y. Choi | 3,562,600 | Class A Common Stock | 21.87% |

## The Company's Securities

The Company has authorized Class A Common Stock, and Class B Common Stock. As part of the Regulation Crowdfunding raise, the Company will be offering up to 502,032 of Class B Common Stock.

### *Class A Common Stock*

The amount of security authorized is 75,000,000 with a total of 16,291,600 outstanding.

### *Voting Rights*

One vote per share.

### *Material Rights*

**Dividends.** If any, outstanding at any time, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Corporation as may be declared by the Board of Directors from time to time with respect to the Common Stock out of assets or funds of the Corporation legally available therefor; provided, however, that in the event that such dividend is paid in the form of shares of Common Stock or rights to acquire Common Stock, the holders of Class A Common Stock shall receive Class A Common Stock or rights to acquire Class A Common Stock, as the case may be, and the holders of Class B Common Stock shall receive Class B Common Stock or rights to acquire Class B Common Stock, as the case may be.

**Liquidation.** If any outstanding at any time, in the event of the voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Corporation, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, all assets of the Corporation of whatever kind available for distribution to the holders of Common Stock.

### *Class B Common Stock*

The amount of security authorized is 2,000,000 with a total of 0 outstanding.

### *Voting Rights*

There are no voting rights associated with Class B Common Stock.

### *Material Rights*

**Dividends.** If any, outstanding at any time, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Corporation as may be declared by the Board of Directors from time to time with respect to the Common Stock out of assets or funds of the Corporation legally available therefor; provided, however, that in the event that such dividend is paid in the form of shares of Common Stock or rights to acquire Common Stock, the holders of Class A Common Stock shall receive Class A Common Stock or rights to acquire Class A Common Stock, as the case may be, and the holders of Class B Common Stock shall receive Class B Common Stock or rights to acquire Class B Common Stock, as the case may be.

**Liquidation.** If any outstanding at any time, in the event of the voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Corporation, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, all assets of the Corporation of whatever kind available for distribution to the holders of Common Stock.

**Conversion.** Each share of Class B Common Stock shall be convertible into one (1) fully paid and nonassessable share of Class A Common Stock at the option of the holder thereof at any time upon written notice to the transfer agent of the Corporation upon the consummation of and the listing and trading on a stock exchange of a Public Offering. The term “Public Offering” shall mean the offer and sale of securities of the Corporation for cash pursuant to an effective registration statement under the Securities Act of 1933, as amended, on Form S-1, or any successor form) in a Firm Commitment Underwriting. The term “Firm Commitment Underwriting” shall mean the securities are offered pursuant to an underwriting or similar agreement under which the underwriters are committed to purchase all of the securities being offered, except those purchased by others pursuant to a rights offering, if the underwriters purchase any of the securities.

## What it means to be a minority holder

As a minority holder of Class B Common Stock of the company, you will have limited rights in regards to the corporate actions of the company, including additional issuances of securities, company repurchases of securities, a sale of the company or its significant assets, or company transactions with related parties. Further, investors in this offering may have rights less than those of other investors, and will have limited influence on the corporate actions of the company.

## Dilution

Investors should understand the potential for dilution. The investor's stake in a company could be diluted due to the company issuing additional shares. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock. If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

## Transferability of securities

For a year, the securities can only be resold:

- In an IPO;
- To the company;
- To an accredited investor; and
- 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.

## Recent Offerings of Securities

We have made the following issuances of securities within the last three years:

The Company has not had any recent offering of securities in the last three years.

## Financial Condition and Results of Operations

### Financial Condition

*You should read the following discussion and analysis of our financial condition and results of our operations together with our financial statements and related notes appearing at the end of this Offering Memorandum. This discussion contains forward-looking statements reflecting our current expectations that involve risks and uncertainties. Actual results and the timing of events may differ materially from those*

*contained in these forward-looking statements due to a number of factors, including those discussed in the section entitled “Risk Factors” and elsewhere in this Offering Memorandum.*

## Results of Operations

**Circumstances which led to the performance of financial statements:**

*Year ended December 31, 2020 compared to year ended December 31, 2021.*

### Revenue

Revenue for fiscal year 2020 was $2,991 compared to $149,290 in fiscal year 2021.

The Company began generating significant revenue in 2021. New partnerships were forged and new clients obtained. Contracts were made with two (2) universities to provide AgTech hardware, software, and curriculum.

### Cost of sales

Cost of Sales for fiscal year 2020 was $6,806 compared to $136,623 in fiscal year 2021.

The Company fulfilled these sales and incurred expenses in 2021 that may or may not have future benefit. Because these were The Company’s first substantial sales, The Company chose to ensure very high-quality customer satisfaction and deem this as a learning process to deliver products and services in the future. Because of the possibility of not having future benefits, The Company expensed all of the costs for the year. We expect in the future, the learning we had in 2021 will likely mean our cost of goods sold will be less than our revenue.

### Gross margins

Gross margins for fiscal year 2020 were negligible and gross margin for fiscal year 2021 was slightly positive as explained above in “Cost of Sales”.

### Expenses

Operating Expenses for fiscal year 2020 were $12,356 compared to $46,208 in fiscal year 2021.

The Company’s expenses of the two years were within expectations given the change in revenue.

### Historical results and cash flows:

The Company is currently in the initial production and early growth stage and is revenue-generating. We are of the opinion the historical cash flows will not be indicative of the revenue and cash flows expected for the future because we are now producing income. Past cash received was primarily generated through angel investments and loans. Our goal is to double revenue for several years in a row and

experience positive cash flow from the sale of subject matter expertise and AgTech equipment.

## Liquidity and Capital Resources

**What capital resources are currently available to the Company? (Cash on hand, existing lines of credit, shareholder loans, etc...)**

As of December, 2022, the Company has capital resources available in the form of $98,981 in cash with Bank of America.

**How do the funds of this campaign factor into your financial resources? (Are these funds critical to your company operations? Or do you have other funds or capital resources available?)**

We believe the funds of this campaign are not critical to our current company operations, however, we intend to use the funds to finance future growth beyond what we currently can do.

We have other funds and capital resources available in addition to the funds from this Regulation Crowdfunding campaign.

**Are the funds from this campaign necessary to the viability of the company? (Of the total funds that your company has, how much of that will be made up of funds raised from the crowdfunding campaign?)**

We believe the funds from this campaign are not necessary to the viability of the Company. Of the total funds that our Company has, 91.6% will be made up of funds raised from the crowdfunding campaign, if it raises its maximum funding goal.

**How long will you be able to operate the company if you raise your minimum? What expenses is this estimate based on?**

If the Company raises the minimum offering amount, we anticipate the Company will be able to operate for many years. This is based on our current period revenues being in excess of our current costs (as of the date of writing) and we expect this to continue into the foreseeable future.

**How long will you be able to operate the company if you raise your maximum funding goal?**

If the Company raises the maximum offering amount, we anticipate the Company will be able to operate indefinitely based on current revenues being in excess of current expenses (as of the date of this writing).

Are there any additional future sources of capital available to your company?
(Required capital contributions, lines of credit, contemplated future capital raises, etc...)

Currently, the Company has contemplated additional future sources of capital including a USDA Partnerships for Climate-Smart Commodities grant of $4,999,999. To date, Ponix has been selected to receive the grant from the Biden-Harris Administration, through the U.S Department of Agriculture (USDA) for Partnerships for Climate-Smart Commodities in effort to expand markets for American producers who produce climate-smart commodities leveraging greenhouse gas benefits of climate-smart production, and providing meaningful benefits to producers, including small and underserved producers.

## Indebtedness

- Creditor: Consciousness Incorporated -loan
  Amount Owed: $29,375.00
  Interest Rate: 0.0%
- Creditor: Hyon Choi - loan
  Amount Owed: $304.00
  Interest Rate: 0.0%
- Creditor: Dennis Fernland - Loan
  Amount Owed: $11,030.00
  Interest Rate: 0.0%
- Creditor: OKMagz, LLC- Promissory Note
  Amount Owed: $31,278.00
  Interest Rate: 12.0%
  Maturity Date: August 01, 2025
- Creditor: Lucas Kraft- Promissory Note
  Amount Owed: $24,661.00
  Interest Rate: 12.0%
  Maturity Date: November 05, 2025
- Creditor: Priscilla Choi- Promissory Note
  Amount Owed: $12,341.00
  Interest Rate: 12.0%
  Maturity Date: November 05, 2025
- Creditor: Julia Park - Loan
  Amount Owed: $4,000.00

Interest Rate: 0.0%

## Related Party Transactions

- **Name of Entity:** Consciousness Incorporated

**Names of 20% owners:** Hyon Choi

**Relationship to Company:** 20%+ Owner

**Nature / amount of interest in the transaction:** In 2021, the Company received money from Consciousness Incorporated, owned by the shareholder and the CEO, Hyon Choi, in the amount of $29,375. The loan bears no interest rate and has no set maturity date.

**Material Terms:** As of December 31, 2021, and December 31, 2020, the outstanding loan is in the amount of $29,375 and $0, respectively.

- **Name of Entity:** Hyon Choi

**Relationship to Company:** 20%+ Owner

**Nature / amount of interest in the transaction:** In 2021, the Company received money from the shareholder and the CEO, Hyon Choi, in the amount of $304. The loan bears no interest rate and has no set maturity date.

**Material Terms:** As of December 31, 2021, and December 31, 2020, the outstanding loan is in the amount of $304 and $0, respectively.

- **Name of Entity:** Consciousness Incorporated

**Names of 20% owners:** Hyon Choi

**Relationship to Company:** 20%+ Owner

**Nature / amount of interest in the transaction:** As of December 31, 2020, the company had receivable from Consciousness Incorporated, related party in the amount of $1,746.

**Material Terms:** The entire amount was collected during 2021.

## Valuation

**Pre-Money Valuation:** $40,077,336.00

### Valuation Details:

Ponix, Inc. ('Ponix' or the 'Company') determined its valuation based on the following factors.

*As a note, Ponix's Pre-Money Valuation method has been determined in the best efforts of the management team. Ponix has 4 Patents Applications filed with the USPTO as of November 2022 including (a) U.S. Patent Application No. 17245486 titled 'HYDROPONICS PLANT GROWTH TOWERS USING PVC,' dated April 20, 2021; (b) U.S. Patent Application No. 29780435 titled 'HYDROPONICS PLANT GROWTH SYSTEM,' dated July 24, 2021; (c) U.S. Patent Application No. 63391722, titled*

*“HYDROPONIC PLANT GROWTH TOWERS USING PVC,” dated July 23, 2022; (d) U.S. Patent Application No. 63323505, titled “METHODS AND SYSTEMS FOR AUTONOMOUS PLANT GROWTH,” dated March 25, 2022. Further, the company has fully developed 3 products stemming from these patents, has found product market fit, and has begun commercializing.*

## Intellectual Property

In addition to these patents, the company has also filed 5 trademarks with the USPTO including (a) Registration No. 4584455, titled “PONIX” for its brand design mark, dated January 20, 2014; (b) Registration No. 5489209, titled “PONIX” for its brand work mark, dated July 22, 2016; (c) Registration No. 6368588, titled “FOOD AS A UTILITY”, dated July 24, 2020; (d) Registration No. 6192868, titled “THE FOOD UTILITY COMPANY”, dated October 2, 2019; (e) Serial No. 90706290, titled “HOW’S IT GROWING?”, dated May 12, 2021 (still pending). These trademarks allow the company to cohesively market and garner brand awareness for the company’s products and services. We believe in light of our Intellectual Property portfolio, a $40,077,336.00 is justified.

## Partnerships

The company has secured a strategic partnership with Ed Farm / Propel Center, a non-profit organization, which equips educators in schools and communities with innovative tools and strategies that support active learning and engagement for students and community members. Founded and supported with funding by Apple and Southern Company, Ed Farm / Propel Center has selected Ponix as an Industry Partner to deploy hydroponic farming systems and education curriculum around the systems to HBCUs, high schools, and middle schools across the country. In 2022 alone, we have deployed products and services to 2 HBCUs, 4 middle schools, and one high school. In 2023, we expect to triple our client base and then roll out our products and services on a national level. Other strategic partnerships are in the works with big box retailers and food distribution chains to distribute our hydroponic produce in the Southeast region of the U.S. - including hydroponic lettuce, spinach, bok choy, basil, microgreens, and more. When considering the above, we believe our strategic partnerships further justify our $40,077,336.00 valuation.

## Industry & Landscape

The global indoor farming market size is valued at $39.5 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 13.5% from 2022 to 2030. In North America, the indoor farming market size is valued at $8.9 billion in 2021 and is expected to expand 13.9% from 2022 - 2030. We believe we have an opportunity to capture some of this market share as Ponix has spent the past eight years developing ways to grow food more cost-efficiently, at higher yields, while using minimal resources. We believe our technology provides a comprehensive indoor farming solution that allows anyone to grow clean, nutritious, and fresh produce year-round in any setting, including urban cityscapes and indoor spaces. Therefore, in light of the current industry and landscape, we believe our $40,077,336.00 valuation is

justified.

## Comparable Competitors

Here are the comparables for major indoor farming companies. We believe our Pre-Money Valuation is on target with these company valuations:

Plenty raised early-stage venture funding (Seed/Series A) of $26,000,000 for a 43.22% investor's equity stake and has raised $541,000,000 to date in total. InFarm raised early stage venture funding (Seed/Series A) of $24,540,000 for a 29.77% stake investor's equity stake and has raised $335,000,000 to date in total. Bowery Farms raised early-stage venture funding (Seed/Series A) of $23,500,000 for 53% investor's equity stake and has raised $129,880,000 to date in total.

Comps data was downloaded via Crunchbase.com as of July 29, 2021.

We believe that Ponix is different from it's competitors because we are seeking to establish resilient food systems to cities and municipalities as an AgTech and food utility company innovating on indoor farming solutions which further solidifies our justification for a $40,077,336.00 valuation.

*The Company set its valuation internally, without a formal-third party independent evaluation.*

*The pre-money valuation has been calculated on a fully diluted basis. The Company only has two classes of securities authorized and one class of securities (Class A Common Stock) outstanding. The Company has no outstanding or reserved options, warrants, or other securities with a right to acquire shares.*

## Use of Proceeds

If we raise the Target Offering Amount of $14,998.62 we plan to use these proceeds as follows:

- *StartEngine Platform Fees*  
  5.5%
- *Operations*  
  94.5%  
  StartEngine Fees.

If we raise the over allotment amount of $1,234,998.72, we plan to use these proceeds as follows:

- *StartEngine Platform Fees*  
  5.5%
- *Research & Development*  
  10.0%

We will use 10% of the funds raised for market and customer research, new product development and market testing.

# - • *Inventory*

5.0%

We will use 5% of the funds raised to purchase inventory in preparation of increased marketing efforts.

# - • *Company Employment*

30.0%

We will use 30% of the funds to hire key personnel for daily operations, including the following roles: Office Administration, Sales and Marketing, Customer Service, Consultants, Professional Services, etc. Wages to be commensurate with training, experience and position.

# - • *Working Capital*

35.0%

We will use 35% to purchase food production facilities and to purchase manufacturing machinery.

# - • *Operations*

14.5%

We will use 20% of the funds for operations to cover expenses for additional marketing, as well as ongoing day-to-day operations of the Company.

The Company may change the intended use of proceeds if our officers believe it is in the best interests of the company.

## Regulatory Information

### Disqualification

No disqualifying event has been recorded in respect to the company or its officers or directors.

### Compliance Failure

The company has not previously failed to comply with the requirements of Regulation Crowdfunding.

### Ongoing Reporting

The Company will file a report electronically with the SEC annually and post the report on its website no later than April 29 (120 days after Fiscal Year End). Once posted, the annual report may be found on the Company’s website at https://ponixfarms.com/ (www.ponixfarms.com/investors/annual-report).

The Company must continue to comply with the ongoing reporting requirements

until:

(1) it is required to file reports under Section 13(a) or Section 15(d) of the Exchange Act;

(2) it has filed at least one (1) annual report pursuant to Regulation Crowdfunding and has fewer than three hundred (300) holders of record and has total assets that do not exceed $10,000,000;

(3) it has filed at least three (3) annual reports pursuant to Regulation Crowdfunding;

(4) it 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

(5) it liquidates or dissolves its business in accordance with state law.

## Updates

Updates on the status of this Offering may be found at: www.startengine.com/ponix

## Investing Process

See Exhibit E to the Offering Statement of which this Offering Memorandum forms a part.

# **EXHIBIT B TO FORM C**

# **FINANCIAL STATEMENTS AND INDEPENDENT ACCOUNTANT'S REVIEW FOR Ponix, Inc.**

*[See attached]*

# PONIX, INC.

# FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2021 AND 2020
(Unaudited)

# INDEX TO FINANCIAL STATEMENTS

(UNAUDITED)

|  | Page |
| --- | --- |
| INDEPENDENT ACCOUNTANT'S REVIEW REPORT | 1 |
| FINANCIAL STATEMENTS: |  |
| Balance Sheet | 2 |
| Income Statement | 3 |
| Statement of Changes in Stockholders' Equity | 4 |
| Statement of Cash Flows | 5 |
| Notes to Financial Statements | 6 |

# INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To the Board of Directors

Ponix, Inc.

Atlanta, Georgia

We have reviewed the accompanying financial statements of Ponix, Inc. (the "Company,"), which comprise the balance sheet as of December 31, 2021 and December 31, 2020, and the related income statement, statement of shareholders' equity (deficit), and cash flows for the year ending December 31, 2021 and December 31, 2020, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of company 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 statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

## Accountant's Responsibility

Our responsibility is to conduct the review 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.

## Accountant's 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 conformity with accounting principles generally accepted in the United States of America.

## Going Concern

As discussed in Note 11, certain conditions indicate that the Company may be unable to continue as a going concern. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

SetApart FS

November 21, 2022

Los Angeles, California

- 1 -

# **PONIX INC.**  
 **BALANCE SHEET**  
 **(UNAUDITED)**---

| As of December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| ASSETS |  |  |
| Current Assets: |  |  |
| Cash & Cash Equivalents | $134 | $ - |
| Account receivables, net | 134,838 | - |
| Due from related party | - | 1,746 |
| Total Current Assets | 134,972 | 1,746 |
| Property and Equipment, net | 12,857 | - |
| Intangible Assets | 16,255 | 20,380 |
| Total Assets | $164,084 | $22,126 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current Liabilities: |  |  |
| Accounts Payable | $115,930 | $ - |
| Credit Cards | - | 103 |
| Current Portion of Promissory Notes and Loans | 47,008 | 48,363 |
| Total Current Liabilities | 162,938 | 48,466 |
| Promissory Notes and Loans | 65,979 | 68,279 |
| Total Liabilities | 228,918 | 116,745 |
| STOCKHOLDERS EQUITY |  |  |
| Common Stock | 1,629 | - |
| Additional Paid in Capital | 61,698 | - |
| Retained Earnings/(Accumulated Deficit) | (128,161) | (94,619) |
| Total Stockholders' Equity | (64,834) | (94,619) |
| Total Liabilities and Stockholders' Equity | $164,084 | $22,126 |

*See accompanying notes to financial statements.*

---- 2 -

PONIX INC.

INCOME STATEMENT

(UNAUDITED)

| For Fiscal Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| Net Revenue | $149,290 | $2,991 |
| Cost of Goods Sold | 136,623 | 6,806 |
| Gross profit | 12,667 | (3,815) |
| Operating expenses |  |  |
| General and Administrative | 46,208 | 11,185 |
| Research and Development | - | 1,171 |
| Total operating expenses | 46,208 | 12,356 |
| Operating Income/(Loss) | (33,541) | (16,171) |
| Interest Expense | - | - |
| Other Loss/(Income) | - | (9,000) |
| Income/(Loss) before provision for income taxes | (33,541) | (7,171) |
| Provision/(Benefit) for income taxes | - | - |
| Net Income/(Net Loss) | $(33,541) | $(7,171) |

See accompanying notes to financial statements.

- 3 -

# **PONIX INC.**

# **STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY**

**(UNAUDITED)**

| (In , $US) | Common Stock |  | Additional Paid In Capital | Retained earnings/ (Accumulated Deficit) | Total Shareholder Equity |
| --- | --- | --- | --- | --- | --- |
|  | Shares | Amount |  |  |  |
| Balance-December 31, 2019 |  | $ - | $ - | $(87,448) | $(87,448) |
| Net income/(loss) |  |  |  | (7,171) | (7,171) |
| Balance-December 31, 2020 | - | - | - | $(94,619) | $(94,619) |
| Conversion from LLC into C Corp | 16,291,600 | 1,629 | 61,698 |  | 63,327 |
| Net income/(loss) |  |  |  | (33,541) | (33,541) |
| Balance-December 31, 2021 | 16,291,600 | $1,629 | $61,698 | $(128,161) | $(64,834) |

*See accompanying notes to financial statements.*

- 4 -

# **PONIX INC.**  
 **STATEMENTS OF CASH FLOWS**  
 **(UNAUDITED)**---

| For Fiscal Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| (USD $ in Dollars) |  |  |
| CASH FLOW FROM OPERATING ACTIVITIES |  |  |
| Net income/(loss) | $(33,541) | $(7,171) |
| Adjustments to reconcile net income to net cash provided/(used) by operating activities: |  |  |
| Depreciation of Property | 2,143 | 235 |
| Amortization of Intangibles | 4,125 | 2,911 |
| Changes in operating assets and liabilities: |  |  |
| Account receivables, net | (134,838) |  |
| Due from related party | 1,746 | (1,746) |
| Accounts Payable | 115,930 | - |
| Credit Cards | (103) | 103 |
| Net cash provided/(used) by operating activities | (44,538) | (5,668) |
| CASH FLOW FROM INVESTING ACTIVITIES |  |  |
| Purchases of Property and Equipment | (15,000) | - |
| Net cash provided/(used) in investing activities | (15,000) | - |
| CASH FLOW FROM FINANCING ACTIVITIES |  |  |
| Capital Contribution | 63,327 | - |
| Borrowing on Promissory Notes and Loans | - | 4,000 |
| Repayment of Promissory Notes and Loans | (3,655) | - |
| Net cash provided/(used) by financing activities | 59,672 | 4,000 |
| Change in Cash | 134 | (1,668) |
| Cash-beginning of year | - | 1,668 |
| Cash-end of year | $134 | $ - |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |  |  |
| Cash paid during the year for interest | $ - | $ - |
| Cash paid during the year for income taxes | $ - | $ - |
| OTHER NONCASH INVESTING AND FINANCING ACTIVITIES AND SUPPLEMENTAL DISCLOSURES |  |  |
| Purchase of property and equipment not yet paid for | $ - | $ - |
| Issuance of equity in return for note | - |  |
| Issuance of equity in return for accrued payroll and other liabilities |  |  |

*See accompanying notes to financial statements.*

---- 5 -

PONIX INC.

NOTES TO FINANCIAL STATEMENTS

FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020

# 1. NATURE OF OPERATIONS

Ponix Inc. was incorporated on May 12, 2021, in the state of Delaware. On June 9, 2021, the Company merged with Ponix LLC, which was formed on September 30, 2014, in the state of New York. The name of the surviving company is Ponix, Inc. The financial statements of Ponix Inc. (which may be referred to as the “Company”, “we”, “us”, or “our”) are prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company’s headquarters are located in Atlanta, Georgia.

Ponix is a provider of fresh produce and indoor farming solutions. The company solutions are easy to on-board, integrate, customize and easy to deploy in various applications. At the core, Ponix establishes and operates sustainable indoor farms within cities, providing consumers and businesses direct access to fresh fruits, vegetables, and herbs. Once the machinery is sold, the company sells growing supplies. The company provides consulting services regarding the feasibility of hydroponic farming, and creates hydroponic farming curriculum for Universities and Local School Districts.

# 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

# Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“US GAAP”). The Company has adopted the calendar year as its basis of reporting.

# Use of Estimates

The preparation of financial statements in conformity with United States GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

# Cash and Cash Equivalents

Cash and cash equivalents include all cash in banks. The Company’s cash is deposited in demand accounts at financial institutions that management believes are creditworthy. The Company’s cash and cash equivalents in bank deposit accounts, at times, may exceed federally insured limits. As of December 31, 2021 and December 31, 2020, the Company’s cash and cash equivalents did not exceed FDIC insured limits.

# Accounts Receivable and Allowance for Doubtful Accounts

Accounts receivable are recorded at net realizable value or the amount that the Company expects to collect on gross customer trade receivables. We estimate losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written-off when it is probable that all contractual payments due will not be collected in accordance with the terms of the agreement. As of December 31, 2021, and 2020, the Company determined that no reserve was necessary.

- 6 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

# **Property and Equipment**

Property and equipment are stated at cost. Normal repairs and maintenance costs are charged to earnings as incurred and additions and major improvements are capitalized. The cost of assets retired or otherwise disposed of, and the related depreciation are eliminated from the accounts in the period of disposal and the resulting gain or loss is credited or charged to earnings.

Depreciation is computed over the estimated useful lives of the related asset type or term of the operating lease using the straight-line method for financial statement purposes. The estimated service lives for property and equipment are as follows:

| Category | Useful Life |
| --- | --- |
| Equipment | 5 years |

# **Impairment of Long-lived Assets**

Long-lived assets, such as property and equipment and identifiable intangibles with finite useful lives, are periodically evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We look for indicators of a trigger event for asset impairment and pay special attention to any adverse change in the extent or manner in which the asset is being used or in its physical condition. Assets are grouped and evaluated for impairment at the lowest level of which there are identifiable cash flows, which is generally at a location level. Assets are reviewed using factors including, but not limited to, our future operating plans and projected cash flows. The determination of whether impairment has occurred is based on an estimate of undiscounted future cash flows directly related to the assets, compared to the carrying value of the assets. If the sum of the undiscounted future cash flows of the assets does not exceed the carrying value of the assets, full or partial impairment may exist. If the asset carrying amount exceeds its fair value, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset. Fair value is determined using an income approach, which requires discounting the estimated future cash flows associated with the asset.

# **Intangible Assets**

The Company capitalizes its patent and filing fees and legal patent and prosecution fees in connection with internally developed pending patents. When pending patents are issued, patents will be amortized over the expected period to be benefitted, not to exceed the patent lives, which may be as long as ten years.

# **Income Taxes**

Ponix, Inc. is a C corporation for income tax purposes. The Company accounts for income taxes under the liability method, and deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided on deferred tax assets if it is determined that it is more likely than not that the deferred tax asset will not be realized. The Company records interest, net of any applicable related income tax benefit, on potential income tax contingencies as a component of income tax expense.

The Company records tax positions taken or expected to be taken in a tax return based upon the amount that is more likely than not to be realized or paid, including in connection with the resolution of any related appeals or other legal processes. Accordingly, the Company recognizes liabilities for certain unrecognized tax benefits based on the amounts that are more likely than not to be settled with the relevant taxing authority. The Company recognizes interest and/or penalties related to unrecognized tax benefits as a component of income tax expense.

---- 7 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

# *Concentration of Credit Risk*

The Company maintains its cash with a major financial institution located in the United States of America which it believes to be creditworthy. Balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At times, the Company may maintain balances in excess of the federally insured limits.

# **Revenue Recognition**

The Company recognizes revenues in accordance with FASB ASC 606, revenue from contracts with customers, when delivery of services is the sole performance obligation in its contracts with customers. The Company typically collects payment upon sale and recognizes the revenue when the service has been performed and has fulfilled its sole performance obligation.

Revenue recognition, according to Topic 606, is determined using the following steps:

1) Identification of the contract, or contracts, with the customer: the Company determines the existence of a contract with a customer when the contract is mutually approved; the rights of each party in relation to the services to be transferred can be identified, the payment terms for the services can be identified, the customer has the capacity and intention to pay, and the contract has commercial substance.

2) Identification of performance obligations in the contract: performance obligations consist of a promised in a contract (written or oral) with a customer to transfer to the customer either a good or service (or a bundle of goods or services) that is distinct or a series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.

3) Recognition of revenue when, or how, a performance obligation is met: revenues are recognized when or as control of the promised goods or services is transferred to customers.

The Company earns revenues from the sale fresh fruits, vegetables, and herbs. The company also provide indoor farming equipment, provide indoor farming consulting services, and also provide educational curriculum services around indoor farming as well.

# **Cost of sales**

Costs of goods sold include the cost of goods sold, contract labor, and supplies.

# **Advertising and Promotion**

Advertising and promotional costs are expensed as incurred. Advertising and promotional expenses for the years ended December 31, 2021 and December 31, 2020 amounted to $758 and $345, which is included in sales and marketing expenses.

# **Research and Development Costs**

Costs incurred in the research and development of the Company’s products are expensed as incurred.

---- 8 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

# **Fair Value of Financial Instruments**

The carrying value of the Company's financial instruments included in current assets and current liabilities (such as cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to the short-term nature of such instruments).

The inputs used to measure fair value are based on a hierarchy that prioritizes observable and unobservable inputs used in valuation techniques. These levels, in order of highest to lowest priority, are described below:

*Level 1*-Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

*Level 2*-Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

*Level 3*-Unobservable inputs reflecting the Company's assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.

# **COVID-19**

In March 2020, the outbreak and spread of the COVID-19 virus was classified as a global pandemic by the World Health Organization. This widespread disease impacted the Company's business operations, including its employees, customers, vendors, and communities. The COVID-19 pandemic may continue to impact the Company's business operations and financial operating results, and there is substantial uncertainty in the nature and degree of its continued effects over time. The extent to which the pandemic impacts the business going forward will depend on numerous evolving factors management cannot reliably predict, including the duration and scope of the pandemic; governmental, business, and individuals' actions in response to the pandemic; and the impact on economic activity including the possibility of recession or financial market instability. These factors may adversely impact consumer and business spending on products as well as customers' ability to pay for products and services on an ongoing basis. This uncertainty also affects management's accounting estimates and assumptions, which could result in greater variability in a variety of areas that depend on these estimates and assumptions, including investments, receivables, and forward-looking guidance.

# **Subsequent Events**

The Company considers events or transactions that occur after the balance sheet date, but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated through November 21, 2022, which is the date the financial statements were issued.

# **Recently Issued and Adopted Accounting Pronouncements**

FASB issued ASU No. 2019-02, leases, that requires organizations that lease assets, referred to as 'lessees', to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than twelve months. ASU 2019-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements.

The new standard for nonpublic entities will be effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022, and early application is permitted. We are currently evaluating the effect that the updated standard will have on the financial statements and related disclosures.

---- 9 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

The FASB issues ASUs to amend the authoritative literature in ASC. There have been a number of ASUs to date, including those above, that amend the original text of ASC. Management believes that those issued to date either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact on our financial statements.

# **3. PROPERTY AND EQUIPMENT**

As of December 31, 2021, and December 31, 2020, property and equipment consists of:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Equipment | $19,897 | $4,897 |
| Property and Equipment, at Cost | 19,897 | 4,897 |
| Accumulated depreciation | (7,040) | (4,897) |
| Property and Equipment, Net | $12,857 | $ - |

Depreciation expenses for property and equipment for the fiscal year ended December 31, 2021, and 2020 were in the amount of $2,143 and $235, respectively.

# **4. INTANGIBLE ASSETS**

As of December 31, 2021, and December 31, 2020, intangible assets consist of:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Patent | $29,113 | $29,113 |
| Intangible assets, at cost | 29,113 | 29,113 |
| Accumulated amortization | (12,858) | (8,733) |
| Intangible assets, Net | $16,255 | $20,380 |

Entire intangible assets have been amortized. Amortization expenses for trademarks and patents for the fiscal year ended December 31, 2021 and 2020 were in the amount of $4,125 and $2,911, respectively.

The following table summarizes the estimated amortization expense relating to the Company's intangible assets as of December 31, 2021:

| Period | Expense |
| --- | --- |
| 2022 | $(4,125) |
| 2023 | (4,125) |
| 2024 | (4,125) |
| 2025 | (3,881) |
| Thereafter |  |
| Total | $(16,255) |

---- 10 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**

# **5. CAPITALIZATION AND EQUITY TRANSACTIONS**

# **Common Stock**

The Company is authorized to issue 50,000,000 shares of Common Stock with a par value of $0.0001. As of December 31, 2021, and December 31, 2020, 16,291,600 and 0 shares have been issued and are outstanding, respectively.

# **6. DEBT**

# **Promissory Notes & Loans**

During the years presented, the Company entered into promissory notes & loans agreements. The details of the Company's loans, notes, and the terms are as follows:

| Debt Instrument Name | Principal Amount | Interest Rate | Borrowing Period | Maturity Date | For the Year Ended December 2021 |  |  | For the Year Ended December 2020 |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  | Current Portion | Non-Current Portion | Total Indebtedness | Current Portion | Non-Current Portion | Total Indebtedness |
| Consciousness Incorporated -loan | $29,375 | 0.00% | Fiscal year 2021 | Not set | $29,375 | $ - | $29,375 | $ - | $ - | $ - |
| Hyon Choi - loan | $304 | 0.00% | Fiscal year 2021 | Not set | $304 | $ - | $304 | $ - | $ - | $ - |
| Dennis Fernland - Loan | $11,030 | 0.00% | Fiscal year 2019 | Not set | $11,030 | $ - | $11,030 | $44,363 | $ - | $44,363 |
| OKMagz, LLC- Promissory Note | $31,278 | 12.00% | Fiscal year 2020 | 8/1/2025 | $2,300 | $28,978 | $31,278 | $ - | $31,278 | $31,278 |
| Lucas Kraft- Promissory Note | $24,661 | 12.00% | Fiscal year 2020 | 11/5/2025 | $ - | $24,661 | $24,661 | $ - | $24,661 | $24,661 |
| Priscilla Choi- Promissory Note | $12,341 | 12.00% | Fiscal year 2020 | 11/5/2025 | $ - | $12,341 | $12,341 | $ - | $12,341 | $12,341 |
| Julia Park - Loan | $4,000 | 0.00% | Fiscal year 2020 | Not set | $4,000 | $ - | $4,000 | $4,000 | $ - | $4,000 |
| Total |  |  |  |  | $47,008 | $65,979 | $112,988 | $48,363 | $68,279 | $48,363 |

The summary of the future maturities is as follows:

# **As of Year Ended December 31, 2021**

| 2022 | $47,008 |
| --- | --- |
| 2023 | 12,341 |
| 2024 | - |
| Thereafter | 53,639 |
| Total | $112,988 |

# **7. INCOME TAXES**

The provision for income taxes for the year ended December 31, 2021, and December 31, 2020 consists of the following:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Net Operating Loss | $(10,396) | $ - |
| Valuation Allowance | 10,396 | - |
| Net Provision for income tax | $ - | $ - |

Significant components of the Company's deferred tax assets and liabilities on December 31, 2021, and December 31, 2020 are as follows:

| As of Year Ended December 31, | 2021 | 2020 |
| --- | --- | --- |
| Net Operating Loss | $(10,396) | $ - |
| Valuation Allowance | 10,396 | - |
| Total Deferred Tax Asset | $ - | $ - |

- 11 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. On the basis of this evaluation, the Company has determined that it is more likely than not that the Company will not recognize the benefits of the federal and state net deferred tax assets, and, as a result, full valuation allowance has been set against its net deferred tax assets as of December 31, 2021, and December 31, 2020. The amount of the deferred tax asset to be realized could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased.

For the fiscal year ending December 31, 2021, the Company had federal cumulative net operating loss ('NOL') carryforwards of $38,865, and the Company had state net operating loss ('NOL') carryforwards of approximately $38,865. Utilization of some of the federal and state NOL carryforwards to reduce future income taxes will depend on the Company's ability to generate sufficient taxable income prior to the expiration of the carryforwards. The federal net operating loss carryforward is subject to an 80% limitation on taxable income, does not expire, and will carry on indefinitely.

The Company recognizes the impact of a tax position in the financial statements if that position is more likely than not to be sustained on a tax return upon examination by the relevant taxing authority, based on the technical merits of the position. As of December 31, 2021, and December 31, 2020, the Company had no unrecognized tax benefits.

The Company recognizes interest and penalties related to income tax matters in income tax expense. As of December 31, 2021, and December 31, 2020, the Company had no accrued interest and penalties related to uncertain tax positions.

# **8. RELATED PARTY**

In 2021, the Company received money from Consciousness Incorporated, owned by the shareholder and the CEO, Hyon Choi, in the amount of $29,375. The loan bears no interest rate and has no set maturity date. As of December 31, 2021, and December 31, 2020, the outstanding loan is in the amount of $29,375 and $0, respectively.

In 2021, the Company received money from the shareholder and the CEO, Hyon Choi, in the amount of $304. The loan bears no interest rate and has no set maturity date. As of December 31, 2021, and December 31, 2020, the outstanding loan is in the amount of $304 and $0, respectively.

As of December 31, 2020, the company had receivable from Consciousness Incorporated, related party in the amount of $1,746. The entire amount was collected during 2021.

# **9. COMMITMENTS AND CONTINGENCIES**

# **Operating Leases**

On April 30, 2021, the Company entered into a lease agreement with the Municipal Market Company to rent premises in Atlanta, Georgia. The rent is set to $480 per month and will expire on April 30, 2024. The aggregate minimum annual lease payments under operating leases in effect on December 31, 2021, are as follows:

---- 12 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

| Year | Obligation |
| --- | --- |
| 2022 | $5,760 |
| 2023 | 5,760 |
| 2024 | 1,920 |
| 2025 | - |
| Thereafter | - |
| Total future minimum operating lease payments | $13,440 |

Rent expenses were in the amount of $2,903 and $892 as of December 31, 2021, and December 31, 2020, respectively.

# **Contingencies**

The Company's operations are subject to a variety of local and state regulation. Failure to comply with one or more of those regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations.

# **Litigation and Claims**

From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of December 31, 2021, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company's operations.

# **10. SUBSEQUENT EVENTS**

The Company has evaluated subsequent events for the period from December 31, 2021, through November 21, 2022, which is the date the financial statements were available to be issued.

In 2022, the Company paid off the loan received from Consciousness Inc in the amount $29,375.

In 2022, Ponix, Inc created a wholly owned subsidiary called Ponix Cafe, LLC. The company took a loan from Consciousness Incorporated to capitalize this company that was in construction and to start the salad venture. For the year ending 2021 and the first two quarters of 2022, the company invested $31,118 and $49,019 in expenditures, respectively. All expenditures were deemed operational and expensed in the period incurred. In 2022, the company decided to exit this business and sold the assets of the venture for $65,000. The net proceeds of the sale were used to pay down loans received from Consciousness Inc.

There have been no other events or transactions during this time which would have a material effect on these financial statements.

# **11. GOING CONCERN**

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has a net operating loss of $33,541, an operating cash flow loss of $44,538, and liquid assets in cash of $134, which less than a year's worth of cash reserves as of December 31, 2021. These factors normally raise doubt about the Company's ability to continue as a going concern.

---- 13 -

# **PONIX INC.**

# **NOTES TO FINANCIAL STATEMENTS**

# **FOR YEAR ENDED TO DECEMBER 31, 2021 AND DECEMBER 31, 2020**---

The Company's ability to continue as a going concern in the next twelve months following the date the financial statements were available to be issued is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results.

Management has evaluated these conditions and plans to generate revenues and raise capital as needed to satisfy its capital needs.

There are no assurances that management will be able to raise capital on terms acceptable to the Company. If it is unable to obtain sufficient amounts of additional capital, it may be required to reduce the scope of its planned development, which could harm its business, financial condition, and operating results. The accompanying financial statements do not include any adjustments that might result from these uncertainties.

---- 14 -

# **EXHIBIT C TO FORM C**

# **PROFILE SCREENSHOTS**

*[See attached]*

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

# EXHIBIT D TO FORM C

# VIDEO TRANSCRIPT

# Campaign Video

Ponix is an on-site hydroponic vertical farming company. We work with public and private sectors to establish and operate sustainable indoor farms, which produce and distribute fresh local foods all year round directly to surrounding consumers and businesses. As food producers, we believe that everyone should have access to fresh food no matter the circumstances. At Ponix, we're on a mission to reclassify food as a utility. We see a future where food is locally grown in cities and distributed to consumers and businesses seamlessly, just like how wifi, power, and water are provided. Our crops are grown indoors without soil and completely pesticide free because we grow inside clean and controlled environments. We monitor and operate the farm's year round in any location using smart devices. This process uses up to 90% less water compared to traditional soil farming methods. We are constantly thinking about the future.

By 2050, we'll need to feed 2 billion more people. How do we do this without hurting the planet? Studies show that 68% of our population will be living in cities. Our current food system is not equipped to handle this shift yet. Consider the shrinking workforce. The average age of farmers is 66 worldwide. Where are the new generations of farmers? In a world that demands more, how do we plan to fulfill this need? At Ponix, we're passionate about food justice and would like to live in a reality where all vital human physiological needs can be met through sustainable production and distribution of resources. Our goal is to alleviate food deserts across the world and then nourish our communities with fresh food. That is why Ponix is working with private and public sectors to come up with creative solutions and build out the infrastructure needed to solve our food system and prepare for this massive shift. Upgrading your office, university, or retail operation for direct access to the freshest produce hasn't been this easy. Welcome to the world of Ponix.

# STARTENGINE SUBSCRIPTION PROCESS (Exhibit E)

# Platform Compensation

- As compensation for the services provided by StartEngine Capital, the issuer is required to pay to StartEngine Capital a fee consisting of a 5.5-13% (five and one-half to thirteen) commission based on the dollar amount of securities sold in the Offering and paid upon disbursement of funds from escrow at the time of a closing. The commission is paid in cash and in securities of the Issuer identical to those offered to the public in the Offering at the sole discretion of StartEngine Capital. Additionally, the issuer must reimburse certain expenses related to the Offering. The securities issued to StartEngine Capital, if any, will be of the same class and have the same terms, conditions and rights as the securities being offered and sold by the issuer on StartEngine Capital's website.
- As compensation for the services provided by StartEngine Capital, investors are also required to pay StartEngine Capital a fee consisting of a 0-3.5% (zero to three and a half percent) service fee based on the dollar amount of securities purchased in each investment.

# Information Regarding Length of Time of Offering

- Investment Cancellations: Investors will have up to 48 hours prior to the end of the offering period to change their minds and cancel their investment commitments for any reason. Once within 48 hours of ending, investors will not be able to cancel for any reason, even if they make a commitment during this period.
- Material Changes: Material changes to an offering include but are not limited to: A change in minimum offering amount, change in security price, change in management, material change to financial information, etc. If an issuer makes a material change to the offering terms or other information disclosed, including a change to the offering deadline, investors will be given five business days to reconfirm their investment commitment. If investors do not reconfirm, their investment will be canceled and the funds will be returned.

# Hitting The Target Goal Early & Oversubscriptions

- StartEngine Capital will notify investors by email when the target offering amount has hit 25%, 50% and 100% of the funding goal. If the issuer hits its goal early, the issuer can create a new target deadline at least 5 business days out. Investors will be notified of the new target deadline via email and will then have the opportunity to cancel up to 48 hours before the new deadline.
- Oversubscriptions: We require all issuers to accept oversubscriptions. This may not be possible if: 1) it vaults an issuer into a different category for financial statement requirements (and they do not have the requisite financial statements); or 2) they reach $5M in investments. In the event of an oversubscription, shares will be allocated at the discretion of the issuer.
- If the sum of the investment commitments does not equal or exceed the target offering amount at the offering deadline, no securities will be sold in the offering, investment commitments will be canceled and committed funds will be returned.
- If a StartEngine issuer reaches its target offering amount prior to the deadline, it may conduct an initial closing of the offering early if they provide notice of the new offering deadline at least five business days prior to the new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). StartEngine will notify

investors when the issuer meets its target offering amount. Thereafter, the issuer may conduct additional closings until the offering deadline.

# Minimum and Maximum Investment Amounts

- In order to invest, to commit to an investment or to communicate on our platform, users must open an account on StartEngine Capital and provide certain personal and non- personal information including information related to income, net worth, and other investments.
- Investor Limitations: There are no investment limits for investing in crowdfunding offerings for accredited investors. Non-accredited investors are limited in how much they can invest on all crowdfunding offerings during any 12-month period. The limitation on how much they can invest depends on their net worth (excluding the value of their primary residence) and annual income. If either their annual income or net worth is less than $107,000, then during any 12-month period, they can invest either $2,200 or 5% of their annual income or net worth, whichever is greater. If both their annual income and net worth are equal to or more than $107,000, then during any 12-month period, they can invest up to 10% of annual income or net worth, whichever is greater, but their investments cannot exceed $107,000.

# **EXHIBIT F TO FORM C**

# **ADDITIONAL CORPORATE DOCUMENTS**

*[See attached]*

State of Delaware

Secretary of State

Division of Corporations

Delivered 11:26 AM 05/12/2021

FILED 11:26 AM 05/12/2021

SR 20211730980 - File Number 5917130

# CERTIFICATE OF INCORPORATION OF

# PONIX, INC

# A STOCK CORPORATION

This certificate of Incorporation is submitted for filing pursuant to the applicable provisions of the General Corporation Law of the State of Delaware.

# Article I - Entity Name and Type

The name and type of filing entity being formed are: Ponix, Inc, a Delaware stock corporation (hereinafter "Stock Corporation").

# Article II - Registered Office and Registered Agent

The Registered Office of the corporation in the State of Delaware is located at 221 N Broad St, Middletown, Delaware 19709, and County of New Castle. The name of the Registered Agent at such address upon whom process against this corporation may be served is Incyourbiz Corp.

# Article III - Purpose

The purpose for which the Stock Corporation is organized is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of Delaware.

# Article IV - Authorized Shares

Stock Corporation is authorized to issue a total of 50,000,000 shares, and the shares shall have $.0001 par value per share.

# Article V - Incorporator

The name and address of the Incorporator is:

Name

Hyon Choi

Address

2163 Oakdale Estates Ct

Smyrna, GA 30080

# Article VI - Execution

The undersigned affirms that the person designated as registered agent has consented to the appointment. The undersigned signs this document subject to the penalties imposed by law for the submission of a materially false or fraudulent instrument and certifies under penalty of perjury that the undersigned is authorized to execute the filing instrument.

Date: May 10, 2021

Hyon Choi

Hyon Choi

PAGE 1 OF 1-CERTIFICATE OF INCORPORATION-PONIX, INC.

# **STATE OF DELAWARE**
**CERTIFICATE OF AMENDMENT**
**OF CERTIFICATE OF INCORPORATION**

The corporation organized and existing under and by virtue of the General Corporation Law of the State of Delaware does hereby certify:

**FIRST:** That at a meeting of the Board of Directors of
PONIX, INC

resolutions were duly adopted setting forth a proposed amendment of the Certificate of Incorporation of said corporation, declaring said amendment to be advisable and calling a meeting of the stockholders of said corporation for consideration thereof. The resolution setting forth the proposed amendment is as follows:

**RESOLVED**, that the Certificate of Incorporation of this corporation be amended by changing the Article thereof numbered "Article IV" so that, as amended, said Article shall be and read as follows:

PLEASE SEE ATTACHED AMENDMENT TO ARTICLE IV

**SECOND:** That thereafter, pursuant to resolution of its Board of Directors, a special meeting of the stockholders of said corporation was duly called and held upon notice in accordance with Section 222 of the General Corporation Law of the State of Delaware at which meeting the necessary number of shares as required by statute were voted in favor of the amendment.

**THIRD:** That said amendment was duly adopted in accordance with the provisions of Section 242 of the General Corporation Law of the State of Delaware.

**IN WITNESS WHEREOF**, said corporation has caused this certificate to be signed this 22nd day of December, 2022.

By: [Signature]
Authorized Officer

Title: President

Name: Hyon Choi
Print or Type

State of Delaware
Secretary of State
Division of Corporations
Delivered 10:24 AM 12/27/2022
FILED 10:24 AM 12/27/2022
SR 20224371471 - File Number 5917130

# AMENDMENT TO
CERTIFICATE OF INCORPORATION OF PONIX, INC.

## ARTICLE IV

Section 1. Authorized Shares. This Corporation is authorized to issue 75,000,000 shares of Class A Common Stock, par value $0.0001 per share (the "Class A Common Stock"), and 2,000,000 shares of Class B Common Stock, par value $0.0001 per share (the "Class B Common Stock", and together with the Class A Common Stock, the "Common Stock"). The number of authorized shares of any class or classes of stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of at least a majority of the voting power of the issued and outstanding shares of Common Stock of the Corporation, voting together as a single class.

Section 2. Common Stock. A statement of the designations of each class of Common Stock and the powers, preferences and rights and qualifications, limitations or restrictions thereof is as follows:

(a) Voting Rights.

(i) Each holder of shares of Class A Common Stock shall be entitled to one (1) vote for each share of Class A Common Stock held as of the applicable date on any matter that is submitted to a vote or for the consent of the stockholders of the Corporation.

(ii) Except as otherwise required by law, Shares of Class B Common Stock shall be non-voting; provided that so long as any shares of Class B Common Stock are outstanding, the Corporation shall not, without the written consent of a majority of the outstanding shares of Class B Common Stock or the affirmative vote of holders of a majority of the outstanding shares of Class B Common Stock at a meeting of the holders of Class B Common Stock duly called for such purpose, amend, alter or repeal (by merger, consolidation, combination, reclassification or otherwise) its Certificate of Incorporation or bylaws so as to adversely affect (disproportionately relative to the Class A Common Stock) the preferences, rights or powers of the Class B Common Stock.

(iii) Concurrently with the filing of this Second Amended and Restated Certificate of Incorporation with the Secretary of State of Delaware, all shares of common stock outstanding immediately prior to such filing shall be redesignated as Class A Common Stock.

(b) Dividends. If any, outstanding at any time, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, in such dividends and other distributions of cash, property or shares of stock of the Corporation as may be declared by the Board of Directors from time to time with respect to the Common Stock out of assets or funds of the Corporation legally available therefor; provided, however, that in the event that such dividend is paid in the form of shares of Common Stock or rights to acquire Common Stock, the holders of Class A Common Stock shall receive Class A Common Stock or

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rights to acquire Class A Common Stock, as the case may be, and the holders of Class B Common Stock shall receive Class B Common Stock or rights to acquire Class B Common Stock, as the case may be.

(c) Liquidation. If any outstanding at any time, in the event of the voluntary or involuntary liquidation, dissolution, distribution of assets or winding up of the Corporation, the holders of Class A Common Stock and the holders of Class B Common Stock shall be entitled to share equally, on a per share basis, all assets of the Corporation of whatever kind available for distribution to the holders of Common Stock.

(d) Subdivision or Combinations. If the Corporation in any manner subdivides or combines the outstanding shares of one class of Common Stock, the outstanding shares of the other class of Common Stock will be subdivided or combined in the same manner, with the holders of Class B Common Stock interests remaining non-voting.

(e) Equal Status. Except as expressly provided in this Article IV, Class A Common Stock and Class B Common Stock shall have the same rights and privileges and rank equally, share ratably and be identical in all respects as to all matters.

(f) Conversion. Each share of Class B Common Stock shall be convertible into one (1) fully paid and nonassessable share of Class A Common Stock at the option of the holder thereof at any time upon written notice to the transfer agent of the Corporation upon the consummation of and the listing and trading on a stock exchange of a Public Offering. The term "Public Offering" shall mean the offer and sale of securities of the Corporation for cash pursuant to an effective registration statement under the Securities Act of 1933, as amended, on Form S-1, or any successor form) in a Firm Commitment Underwriting. The term "Firm Commitment Underwriting" shall mean the securities are offered pursuant to an underwriting or similar agreement under which the underwriters are committed to purchase all of the securities being offered, except those purchased by others pursuant to a rights offering, if the underwriters purchase any of the securities.

(g) Reservation of Stock. The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Class A Common Stock, solely for the purpose of effecting the conversion of the shares of Class B Common Stock, such number of its shares of Class A Common Stock as shall from time to time be sufficient to effect the conversion of all outstanding shares of Class B Common Stock into shares of Class A Common Stock.

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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:** Ponix, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 05-12-2021

**Physical Address:** 209 Edgewood Ave. SE #102, Atlanta, GA, 30303

**Issuer Website:** https://ponixfarms.com/

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

**Intermediary Name:** StartEngine Capital, LLC

**Intermediary CIK:** 0001665160

**Intermediary File Number:** 007-00007

### Offering Information

**Compensation to Intermediary:** up to 9% percent

**Financial Interest in Issuer:** Three percent (3%) of securities of the total amount of investments raised in the offering, along the same terms as investors.

**Type of Security Offered:** Other

**Other Description of Security:** Class B Common Stock

**Number of Securities Offered:** 6097

**Price per Security:** $2.46

**Method for Determining Price:** N/A

**Target Offering Amount:** $14,998.62

**Oversubscription Accepted:** Yes

**Oversubscription Allocation Type:** Other

**Description of Oversubscription:** At issuer's discretion, with priority given to StartEngine Owners

**Maximum Offering Amount:** $1,234,998.72

**Deadline to Reach Target Amount:** 05-25-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 3

**Total Assets (Most Recent Fiscal Year):** $164,084.00

**Total Assets (Prior Fiscal Year):** $22,126.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $134.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $0.00

**Accounts Receivable (Most Recent Fiscal Year):** $134,838.00

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

**Short-Term Debt (Most Recent Fiscal Year):** $162,938.00

**Short-Term Debt (Prior Fiscal Year):** $48,466.00

**Long-Term Debt (Most Recent Fiscal Year):** $65,979.00

**Long-Term Debt (Prior Fiscal Year):** $68,279.00

**Revenues/Sales (Most Recent Fiscal Year):** $149,290.00

**Revenues/Sales (Prior Fiscal Year):** $2,991.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $136,623.00

**Cost of Goods Sold (Prior Fiscal Year):** $6,806.00

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

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

**Net Income (Most Recent Fiscal Year):** $-33,541.00

**Net Income (Prior Fiscal Year):** $-7,171.00

**Jurisdictions Offered:**

ALABAMA, ALASKA, ARIZONA, ARKANSAS, CALIFORNIA, COLORADO, CONNECTICUT, DISTRICT OF COLUMBIA, DELAWARE, 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, PR, RHODE ISLAND, SOUTH CAROLINA, SOUTH DAKOTA, TENNESSEE, TEXAS, UTAH, VERMONT, VIRGINIA, WASHINGTON, WEST VIRGINIA, WISCONSIN, WYOMING

### Signatures

**Issuer:** Ponix, Inc.

**Signature:** Hyon Y. Choi

**Title:** CEO, Director

---

**Signature:** Hyon Y. Choi

**Title:** CEO, Director

**Date:** 02-17-2023

---

**Signature:** Dave Murray

**Title:** CFO

**Date:** 02-17-2023

---

**Signature:** Michael Jinks

**Title:** Director

**Date:** 02-17-2023

---

**Signature:** Patrick McGowan

**Title:** Director

**Date:** 02-17-2023