# EDGAR Filing Document

**Accession Number:** 0001941410
**File Stem:** 0001669191-23-000300
**Filing Date:** 2023-3
**Character Count:** 165769
**Document Hash:** e8e969fe340092f54095a2627aa8f974
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001669191-23-000300.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0001669191-23-000300

**CONFORMED SUBMISSION TYPE**: C/A

**PUBLIC DOCUMENT COUNT**: 9

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230330

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MicroMGx, Inc.
- **CENTRAL INDEX KEY:** 0001941410
- **IRS NUMBER:** 474577784
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** C/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 020-30856
- **FILM NUMBER:** 23780775

**BUSINESS ADDRESS:**
- **STREET 1:** 3440 S DEARBORN ST., SUITE 144S
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60616
- **BUSINESS PHONE:** 2158050783

**MAIL ADDRESS:**
- **STREET 1:** 3440 S DEARBORN ST.
- **STREET 2:** SUITE 144S
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60616

## Ex-99

html![](offeringpage.jpg)

### Attached PDF Documents

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

# Offering Statement for MicroMGx, Inc.

**(“MicroMGx Inc,” “we,” “our,” or the “Company”)**

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

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

**Paul Riss:**

paul@netcapital.com

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

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

## The Company

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

MicroMGx, Inc.

3440 S Dearborn St.
Suite 144s
Chicago, IL 60616

## Eligibility

**2. The following are true for MicroMGx, Inc.:**

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

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

No.

## Directors, Officers and Promoters of the Company

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

*Name*

Rajmony Pannu

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

| Start Date | End Date | Company | Position / Title |
| --- | --- | --- | --- |
| 08/01/2013 | Present | Columbus Vascular - Vein and Vascular | Vascular Specialist |
| 04/20/2020 | Present | MicroMGx, Inc. | Board Member |

Short Bio: Dr. Pannu is a practicing vascular specialist in Westerville, OH. He is one of a select few specialists in the country to have board certification in both vascular medicine and endovascular medicine.

While an extremely talented physician, Raj is also an active entrepreneur and brings to the MicroMGx Board a keen entrepreneurial mind, combining successful risk-taking, business acumen, and a flair for healthcare marketing.

# **Name**

Neil Kelleher

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

Start Date End Date Company Position / Title

06/01/2010 Present Northwestern University Glass Professor

07/20/2015 Present MicroMGx, Inc. Director & Co-Founder

06/15/2017 04/10/2021 MicroMGx, Inc. Chairman

Short Bio: Neil L. Kelleher is the Walter and Mary Elizabeth Glass Professor of Chemistry, Molecular Biosciences, and Medicine at Northwestern University. Neil's research focuses on the use of mass spectrometry for applications ranging from proteomics to natural products chemistry. Prof. Kelleher is also an experienced entrepreneur; he has founded three other companies, including the successful software company, Proteinaceous, and Integrated Protein Technologies which provides cutting-edge devices for protein sample preparation. Neil is a co-founder of MicroMgx and advises on business and technology development, especially the integration of mass spectrometry and informatics into MicroMGx's workflows. LinkedIn: linkedin.com/in/neil-kelleher-29736b12

# **Name**

William Metcalf

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

Start Date End Date Company Position / Title

01/01/1997 Present University of Illinois Department of Microbiology

07/20/2015 04/19/2021 MicroMGx, Inc. Board Member

04/19/2021 Present MicroMGx, Inc. Chairman & Co-Founder

Short Bio: Bill Metcalf is the G. William Arends Professor in Molecular and Cellular Biology and Professor of Microbiology at the University of Illinois at Urbana-Champaign. His research focuses on the complex chemistry that bacteria perform, including the biogenesis of methane and specialized natural products. Prof. Metcalf advises MicroMGx on the use of comparative genomics to identify the regions of the bacterial genome that are responsible for specialized metabolism, and on the use of advanced genome sequencing technologies. LinkedIn: linkedin.com/in/bill-metcalf-ab022815

# **Name**

Regan Thomson

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

Start Date End Date Company Position / Title

09/01/2006 Present Northwestern University Professor of Chemistry

07/20/2015 Present MicroMGx, Inc. Board Member & Co-Founder

Short Bio: Regan Thomson is a Professor of Chemistry at Northwestern University. His research pushes the boundaries of reaction design and applies it to drive the synthesis of complex biologically active molecules. As a Co-Founder and member MicroMGx's board of directors, his insight as a synthetic organic chemist

will guide the development of synthetic natural product analogs with improved activity and selectivity. The role of chemical synthesis in the commercialization of natural products with therapeutic activity is especially important because of current intellectual property policy, which severely limits protections on materials and compounds derived directly from nature. LinkedIn: https://www.linkedin.com/in/regan-thomson-1675b0191

**Name**

Jennifer Kelleher

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

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

07/31/2019 Present MicroMGx, Inc. Secretary of the Company

Short Bio: Jennifer received her degree in nursing from Johns Hopkins University and worked for many years in specialties as diverse as the Neonatal and Pediatric ICU and in-home hospice. Although she no longer practices, Jennifer maintains an interest in issues related to public health and access to care. She has assisted with several successful start-ups and works at MicroMGx to support the administrative and logistical needs of the company. LinkedIn: linkedin.com/in/jennifer-kelleher-8071a8185

**Name**

Anthony Goering

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

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

02/03/2019 Present MicroMGx, Inc. CSO & COO

Short Bio: Anthony Goering is trained in the fields of natural product discovery and synthetic biology. He performed his graduate research in the laboratory of Professor Neil Kelleher as part of the collaborative team that created metabologenomics, which is now one of MicroMGx's core technologies. As the chief scientific officer of MicroMGx, he oversees the continued development of metabologenomics, as well as its application to guide the discovery of new, bioactive natural products. LinkedIn: linkedin.com/in/anthony-goering-99a56093

**Name**

Jack Kloeber

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

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

05/01/2007 Present Kromite LLC Principal

02/01/2019 Present MicroMGx, Inc. CEO & CFO

Short Bio: Jack Kloeber is trained in the fields of Decision Analytics, Industrial Engineering, Simulation and Optimization. After teaching Mathematics at USMA, West Point, NY, and 6 years of Graduate level Operations Research at the Air Force Institute of Technology, he retired from the US Army as an LTC and joined Bristol-Myers Squibb as Head of Portfolio Management. He moved to Johnson & Johnson Pharmaceuticals and held the same position for 5 years. Jack left Johnson & Johnson to become a partner/owner of a successful consulting company of 14 analysts, Kromite LLC, where he focused on R&D decision-making for 12 years. He brings experience in running an analytics consulting company and working with executives in pharmaceuticals, government, and agriculture industries. Education: BS and MS in Ind. Engr from Lehigh University and PhD from ISYE at Georgia Tech. LinkedIn: https://www.linkedin.com/in/jackkloeber

# Principal Security Holders

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

### Neil Kelleher

| Securities: | 1,260,000 |
| --- | --- |
| Class: | Common Stock |
| Voting Power: | 27.2% |

### William Metcalf

| Securities: | 1,170,000 |
| --- | --- |
| Class: | Common Stock |
| Voting Power: | 25.3% |

### Jack Kloeber

| Securities: | 1,064,250 |
| --- | --- |
| Class: | Common Stock |
| Voting Power: | 22.8% |

# Business and Anticipated Business Plan

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

Our Mission at MicroMGx is to accelerate the discovery of new chemistry from nature that can enrich and extend human life. Our Vision is that thousands of undiscovered compounds produced by microbes will be identified and made accessible to life science R&D organizations around the world. What We Do: We harness microbial chemistry to create more effective and sustainable products. Our initial focus (GTM) is on herbicides, a sector that is sorely in need of innovation. We plan to use our proprietary platform for discovering natural products to discover, patent, then license new natural products to mid-to-large agriculture and pharmaceutical companies. We plan to use B2B marketing combined with an online showcase of our available natural products aligned with each company's needs. We intend to generate

revenue from upfront licensing fees, milestone payments, and royalties for those products that are accepted by regulatory agencies.

MicroMGx Inc currently has 5 employees.

## Risk Factors

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

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

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

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

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

1. 1. No governmental agency has reviewed the Company's offering and no state or federal agency has passed upon either the adequacy of the disclosure contained herein or the fairness of the terms of this offering.
2. 2. We face risks related to health epidemics and other outbreaks, which could significantly disrupt the Company's operations and could have a material adverse impact on us. The outbreak of pandemics and epidemics could materially and adversely affect the Company's business, financial condition, and results of operations. If a pandemic occurs in areas in which we have material operations or sales, the Company's business activities originating from affected areas, including sales, materials, and supply chain related activities, could be adversely affected. Disruptive activities could include the temporary closure of facilities used in the Company's supply chain processes, restrictions on the export or shipment of products necessary to run the Company's business, business closures in impacted areas, and restrictions on the Company's employees' or consultants' ability to travel and to meet with customers, vendors or other business relationships. The extent to which a pandemic or other health outbreak impacts the Company's results will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of a virus and the actions to contain it or treat its impact, among others. Pandemics can also result in social, economic, and labor instability which may adversely impact the Company's business.
3. 3. The Company may extend the Offering deadline beyond what is currently stated herein. This means that your investment may continue to be held in escrow while the Company attempts to raise the maximum offering amount even after the Offering deadline stated herein is reached. Your investment will not be accruing interest during this time and will simply be held until such time that Offering is closed, at which time it will be released to the Company to be used as set forth herein. Upon or shortly after release of such funds to the Company, the Securities will be issued and distributed to you.
4. 4. Any valuation at this stage is difficult to assess. Unlike listed companies that are valued publicly through market-driven stock prices, the valuation of private companies, especially startups, is difficult to assess and you may risk overpaying for your investment. In addition, there may be additional classes of equity with rights that are superior to the class of equity being sold.
5. 5. The Company does not anticipate paying any cash dividends for the foreseeable future. The Company currently intends to retain future earnings, if any, for the foreseeable future.

1. 6. Our management may not be able to control costs in an effective or timely manner. The Company's management anticipates it can use reasonable efforts to assess, predict and control costs and expenses. However, implementing our business plan may require more employees, capital equipment, supplies or other expenditure items than management has predicted. Likewise, the cost of compensating employees and consultants or other operating costs may be higher than management's estimates, which could lead to sustained losses.
2. 7. Start-up investing is risky. Investing in early-stage companies is very risky, highly speculative, and should not be made by anyone who cannot afford to lose their entire investment. Unlike an investment in a mature business where there is a track record of revenue and income, the success of a startup or early-stage venture often relies on the development of a new product or service that may or may not find a market. Before investing, you should carefully consider the specific risks and disclosures related to both this offering type and the Company.
3. 8. Your shares are not easily transferable. You should not plan on being able to readily transfer and/or resell your security. Currently there is no market or liquidity for these shares and the Company does not have any plans to list these shares on an exchange or other secondary market. At some point the Company may choose to do so, but until then you should plan to hold your investment for a significant period of time before a 'liquidation event' occurs. A 'liquidation event' is when the Company either lists their shares on an exchange, is acquired, or goes bankrupt.
4. 9. You may only receive limited disclosure. While the Company must disclose certain information, since the Company is at an early-stage they may only be able to provide limited information about its business plan and operations because it does not have fully developed operations or a long history. The Company may also only be obligated to file information periodically regarding its business, including financial statements. A publicly listed company, in contrast, is required to file annual and quarterly reports and promptly disclose certain events - through continuing disclosure that you can use to evaluate the status of your investment.
5. 10. Investment in personnel. An early-stage investment is also an investment in the entrepreneur or management of the Company. Being able to execute on the business plan is often an important factor in whether the business is viable and successful. You should be aware that a portion of your investment may fund the compensation of the Company's employees, including its management. You should carefully review any disclosure regarding the Company's use of proceeds.
6. 11. Third parties might infringe upon our technology. We cannot assure you that the steps we have taken to protect our property rights will prevent misappropriation of our technology. To protect our rights to our intellectual property, we plan to rely on a combination of trade secrets, confidentiality agreements and other contractual arrangements with our employees, affiliates, strategic partners and others. We may be unable to detect inappropriate use of our technology. Failure to adequately protect our intellectual property could materially harm our brand, devalue our proprietary content and affect our ability to compete effectively. Further, defending any technology rights could result in significant financial expenses and managerial resources.
7. 12. Competition Risk. Intense competition in the markets in which we compete could prevent us from generating or sustaining revenue growth and generating or maintaining profitability.
8. 13. *The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature.*

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

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

The securities being offered have not been registered under the Securities Act of 1933 (the 'Securities Act'), in reliance on exemptive provisions of the Securities Act. Similar reliance has been placed on

apparently available exemptions from securities registration or qualification requirements under applicable state securities laws. No assurance can be given that any offering currently qualifies or will continue to qualify under one or more of such exemptive provisions due to, among other things, the adequacy of disclosure and the manner of distribution, the existence of similar offerings in the past or in the future, or a change of any securities law or regulation that has retroactive effect. If, and to the extent that, claims or suits for rescission are brought and successfully concluded for failure to register any offering or other offerings or for acts or omissions constituting offenses under the Securities Act, the Securities Exchange Act of 1934, or applicable state securities laws, the Company could be materially adversely affected, jeopardizing the Company's ability to operate successfully. Furthermore, the human and capital resources of the Company could be adversely affected by the need to defend actions under these laws, even if the Company is ultimately successful in its defense.

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

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

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

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

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

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

Securities in a private sale. Investors should be aware of the long-term nature of their investment in the Company. Investors in this Offering will be required to represent that they are purchasing the Securities for their own account, for investment purposes and not with a view to resale or distribution thereof.

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

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

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

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

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

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

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

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

23. THE SECURITIES OFFERED INVOLVE A HIGH DEGREE OF RISK AND MAY RESULT IN THE LOSS OF YOUR ENTIRE INVESTMENT. ANY PERSON CONSIDERING THE PURCHASE OF THESE SECURITIES SHOULD BE AWARE OF THESE AND OTHER FACTORS SET FORTH IN THIS OFFERING STATEMENT AND SHOULD CONSULT WITH HIS OR HER LEGAL, TAX

AND FINANCIAL ADVISORS PRIOR TO MAKING AN INVESTMENT IN THE SECURITIES. THE SECURITIES SHOULD ONLY BE PURCHASED BY PERSONS WHO CAN AFFORD TO LOSE ALL OF THEIR INVESTMENT.

## The Offering

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

The Company plans to raise between $10,000 and $1,069,998 through an offering under Regulation CF. Specifically, if we reach the target offering amount of $10,000, we may conduct the first of multiple or rolling closings of the offering early if we provide notice about the new offering deadline at least five business days prior to such new offering deadline (absent a material change that would require an extension of the offering and reconfirmation of the investment commitment). Oversubscriptions will be allocated on a first come, first served basis. Changes to the offering, material or otherwise, occurring after a closing, will only impact investments which have yet to be closed.

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

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

The focus for this raise is to achieve very definite milestones in two areas: 1) Our very exciting lead molecule, MGX 1001, will need to start a microfield test to prove the herbicide can work in more realistic settings than just the lab or a greenhouse. This is a necessary step, but does not carry with it very much risk. We anticipate positive results coming from this test. 2) We have 3500 isolated strains ready to be analyzed to find novel natural products. With this first investment, we hope to analyze 2000 strains. Finally, we plan to conduct bioinformatics analysis and start testing the new compounds for bioactivity.

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

| Uses | If Target Offering Amount Sold | If Maximum Amount Sold |
| --- | --- | --- |
| Intermediary Fees | $490 | $52,430 |
| Compensation for managers | $0 | $136,568 |
| Platform Costs | $0 | $600,000 |
| Testing MGX 1001 | $0 | $150,000 |
| Rent | $9,510 | $36,000 |
| Structure Isolation | $0 | $60,000 |
| Additional Equipment | $0 | $35,000 |
| Total Use of Proceeds | $10,000 | $1,069,998 |

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

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

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

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

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

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

## Ownership and Capital Structure

### The Offering

#### **13. Describe the terms of the securities being offered.**

We are issuing Securities at an offering price of $2.37 per share.

#### **14. Do the securities offered have voting rights?**

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

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

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

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

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

### Restrictions on Transfer of the Securities Offered

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

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

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

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

### Description of Issuer’s Securities

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

#### Securities

| Class of Security | Amount Authorized | Amount Outstanding | Voting Rights | Other Rights |
| --- | --- | --- | --- | --- |
| Common Stock | 30,000,000 | 4,631,250 | Yes |  |

#### Options, Warrants and Other Rights

| Type | Description | Reserved Securities |
| --- | --- | --- |
| Employee Stock Option Plan (ESOP) | Under the plan, the Company has granted 302,820 options to employees. As a result, 222,180 securities have not been granted to employees. | 525,000 |

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

The Company has an Employee Stock Option Plan (ESOP) with 525,000 shares reserved. Under the plan, the Company has granted 302,820 options to employees. As a result, 222,180 securities have not been granted to employees.

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

The Company has granted a perpetual waiver of the transfer restrictions listed in the Bylaws of Microbial Pharmaceuticals Inc. for all Securities sold in this Offering.

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

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

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

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

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

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

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

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

The issuance of additional shares of our common stock will dilute your ownership. As a result, if we achieve profitable operations in the future, our net income per share will be reduced because of dilution, and the market price of our common stock, if there is a market price, could decline as a result of the additional issuances of securities. If we repurchase securities, so that the above risk is mitigated, and there are fewer shares of common stock outstanding, we may not have enough cash available for marketing expenses, growth, or operating expenses to reach our goals. If we do not have enough cash to operate and grow, we anticipate the market price of our stock would decline. A sale of our company or of the assets of our company may result in an entire loss of your investment. We cannot predict the market value of our

company or our assets, and the proceeds of a sale may not be cash, but instead, unmarketable securities, or an assumption of liabilities. In addition to the payment of wages and expense reimbursements, we may need to engage in transactions with officers, directors, or affiliates. By acquiring an interest in the Company, you will be deemed to have acknowledged the existence of any such actual or potential related party transactions and waived any claim with respect to any liability arising from a perceived or actual conflict of interest. In some instances, we may deem it necessary to seek a loan from related parties. Such financing may not be available when needed. Even if such financing is available, it may be on terms that are materially averse to your interests with respect to dilution of book value, dividend preferences, liquidation preferences, or other terms. No assurance can be given that such funds will be available or, if available, will be on commercially reasonable terms satisfactory to us. If we are unable to obtain financing on reasonable terms, we could be forced to discontinue our operations. We anticipate that any transactions with related parties will be vetted and approved by executives(s) unaffiliated with the related parties.

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

| Creditor(s): | EIDL |
| --- | --- |
| Amount Outstanding: | $160,300 |
| Interest Rate: | 3.8% |
| Maturity Date: | April 15, 2050 |
| Other Material Terms: | This is a covid/pandemic government program initiated to help small business. Run by the SBA. Payments are up to date and have been interest only. |
| Creditor(s): | Jack Kloeber - Shareholder Promissory Note |
| Amount Outstanding: | $16,350 |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |
| Creditor(s): | Neil Kelleher - Shareholder Promissory Note |
| Amount Outstanding: | $20,000 |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |
| Creditor(s): | Regan Thomson - Shareholder Promissory Note |
| Amount Outstanding: | $10,000 |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |
| Creditor(s): | William Metcalf - Shareholder Promissory Note |
| Amount Outstanding: | $25,000 |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |
| Creditor(s): | Rajmony Pannu - Shareholder Promissory Note |

| Amount Outstanding: | $25,000 |
| --- | --- |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |
| Creditor(s): | Anthony Goering - Shareholder Promissory Note |
| Amount Outstanding: | $5,000 |
| Interest Rate: | 10.0% |
| Maturity Date: | December 31, 2022 |
| Other Material Terms: |  |

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

| Date of Offering: | 05/2020 |
| --- | --- |
| Exemption: | Section 4(a)(2) |
| Securities Offered: | Common Stock |
| Amount Sold: | $400,000 |
| Use of Proceeds: | The proceeds were used to gather soil samples from around the country. These soil samples were used to find 3500 isolated bacterial and fungal strains which are the basis for finding new natural products. It was during the pandemic so the majority of the capital went towards salary and rent. |

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

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

No.

## Financial Condition of the Issuer

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

Yes.

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

MicroMGx, Inc. ("the Company") was formed as an S Corporation under the laws of Illinois on July 20, 2015. On June 28, 2022, the Company converted to a Corporation under the laws of Delaware. The

Company is engaged in discovering natural products that have important applications as the active ingredients in specialty chemical products ranging from pharmaceuticals to herbicides. The Company is primarily involved in research and development to support life sciences and new discovery that can generate revenue with other life science organizations. During the first six months of 2022, the Company generated $55,000 in sales. The Company's revenue has come from project revenue. However, the Company's focus in the future is on licensing. Additionally, the Company received $15,350 in cash from the sale of promissory notes to shareholders. The current balance of shareholder promissory notes is now $101,350. During the year ended December 31, 2021, the Company had $523,700 in service revenue, down $13,300 from $537,000 in 2020. During 2021, the Company had two customers it generated revenue from, which is an increase from the one customer it had in 2020. During the year ended December 31, 2021, the Company had cost of services of $731,195 and operating expenses of $143,714, resulting in an operating loss of $351,209. Additionally, the Company had other income of $217,141, resulting in a net loss for the year of $134,068. During the year ended December 31, 2020, the Company had cost of services of $724,353 and operating expenses of $116,719, resulting in an operating loss of $304,072. Additionally, the Company had other income of $34,400, resulting in a net loss for the year of $269,672. During 2021, the Company received $86,000 in cash from shareholder promissory notes and $43,100 in cash from an EIDL loan. Additionally, the Company spent $23,650 on investing activities and used $223,676 in cash for operating activities. Overall, the Company had a net decrease in cash for the year of $118,226, which resulted in the cash balance going from $203,237 to start the year to $85,011 to end the year. During 2020, the Company received $400,000 from an angel investor, received $117,200 from an EIDL loan, and spent $113,679 to payoff shareholder notes. Additionally, the Company spent $17,843 on investing activities and used $227,386 for operating activities. Overall, the Company had a net increase in cash for the year of $158,292, which resulted in the cash balance going from $44,945 to start the year to $203,237 to end the year. At December 31, 2021, the Company had 1,000,000 shares authorized and 154,375 shares issued. On July 29, 2022, the Company did a 30 to 1 stock split, resulting in 30,000,000 shares authorized and 4,631,250 shares issued. With this raise, the Company plans to spend the money primarily on platform costs, testing, and compensation for managers.

## Financial Information

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

See attachments:

CPA Review Report:

reviewletter.pdf

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

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

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

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

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

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

If Yes to any of the above, explain:

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

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

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

## Other Material Information

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

The following is a transcript of a video which will be displayed on the Portal's offering page for the Company: The natural world is full of compounds that are useful to human beings, from medicines to crop protection and many have been discovered by luck. They were more or less stumbled upon through trial and error methods. Our efforts to identify valuable natural products have intensified and become more focused but are still subject to tremendous inefficiency and waste. Now at MicroMGx, we're engineering the next jump forward using a breakthrough analytical discipline we call metabologenomics to identify new and valuable natural products faster and at a greater scale than ever before. Metabologenomics combines two fields: the first is metabolomics where we study metabolites produced by bacteria, the second is genomics sequencing bacterial genomes. We then use advanced analytics to determine which gene clusters produce which molecules. We are also able to compare this information against existing databases to find the products that are new and to provide an initial description of their probable characteristics, instead of growing a bacteria in a lab and only capturing what is produced. We can determine the entire productive potential of a bacteria through bioinformatics. This includes the eighty percent of hidden compounds that may not appear during lab testing. Metabologenomics makes the process of finding new natural products much faster and greatly reduces the waste inefficiency and loss of information associated with doing things the traditional way. In particular, we avoid rediscovery issues which plague current labs and burn time and money for many leading organizations. As we proceed, we are also creating an unprecedented library of natural compounds and gene clusters that our clients can access and use to guide research into new products in the fields of medicine, agriculture, and beyond. Clients can analyze the full potential of their microbes, researchers can more quickly find natural compounds with the qualities they seek, and our entire

community can speed up innovation at an entirely new scale. MicroMGx is revolutionizing natural product analysis and discovery with high throughput processes and methods that are transforming the way research is done. Contact us today to hear about investment opportunities or to learn more about becoming a client.

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

**Governance:**

| Certificate of Incorporation: | certificateofincorporation.pdf |
| --- | --- |
| Corporate Bylaws: | corporatebylaws.pdf |

**Opportunity:**

| Offering Page JPG: | offeringpage.jpg |
| --- | --- |
| Pitch Deck: | pitchdeck.pdf |

**Financials:**

| Additional Information: | otherfinancial.pdf |
| --- | --- |

## Ongoing Reporting

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

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

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

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

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

# MICROMGX, INC.

# FINANCIAL STATEMENTS

For the years ended
December 31, 2021 and 2020

BEGALKE & ASSOCIATES LLC

TAX, ACCOUNTING AND ADVISORY SERVICES

# INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To Management

MicroMGx, Inc.

3440 S. Dearborn Street

#144S

Chicago, Illinois 60616

We have reviewed the accompanying financial statements of MicroMGx, Inc. (an S Corporation), which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of income and retained earnings and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of 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 engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

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

BEGALKECPA.COM

2024 Kohler Memorial Drive

Sheboygan, WI 53081

506 E. Mill St., Suite 106

Plymouth, WI 53073

920.458.3591 (phone)

920.458.4560 (fax)

2

## Emphasis of Matter

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 14 to the financial statements, the Company has suffered recurring losses from operations, has a net capital deficiency, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 14. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our conclusion is not modified with respect to this matter.

## Accountant's Conclusion

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

Sheboygan, Wisconsin

July 25, 2022

Begalki & Associates, LLC

(Unaudited)

# MicroMGx, Inc.

# BALANCE SHEET

December 31, 2021 and 2020

(See Accountant's Review Report)

ASSETS

|  | 2021 | 2020 |
| --- | --- | --- |
| CURRENT ASSETS |  |  |
| Cash and cash equivalents | $85,011 | $203,237 |
| Due from US treasury - Employee retention credit | 85,542 | - |
| Prepaid payroll tax | 2,462 | 1,756 |
| Total current assets | $173,015 | $204,993 |

PROPERTY AND EQUIPMENT

| Equipment and tools | $31,493 | $17,843 |
| --- | --- | --- |
| Less: Accumulated depreciation | 6,003 | 1,297 |
| Net property and equipment | $25,490 | $16,546 |

OTHER ASSETS

| Licenses, net of amortization of $0 | $10,000 | $ - |
| --- | --- | --- |
| Total other assets | $10,000 | $ - |

TOTAL ASSETS

| $208,505 | $221,539 |
| --- | --- |

(Unaudited)

(Unaudited)

Exhibit A

# LIABILITIES

|  | 2021 | 2020 |
| --- | --- | --- |
| CURRENT LIABILITIES |  |  |
| Accounts payable | $6,089 | $5,529 |
| Credit card payable | 16,986 | 10,518 |
| Current portion of long-term debt | 86,000 | - |
| Accrued wages | 13,167 | 17,839 |
| Accrued payroll taxes and benefits | 2,330 | 12,631 |
| Accrued retirement contribution | 9,227 | 9,348 |
| Total current liabilities | $133,799 | $55,865 |
| LONG-TERM LIABILITIES |  |  |
| Note payable - EIDL | $160,300 | $117,200 |
| Notes payable - Stockholders | 86,000 | - |
| Less current portion | (86,000) | - |
| Total long-term liabilities | $160,300 | $117,200 |
| TOTAL LIABILITIES | $294,099 | $173,065 |

# STOCKHOLDERS' EQUITY

| COMMON STOCK |  |  |
| --- | --- | --- |
| 1,000,000 shares authorized, no par value, 154,375 shares issued | $401,778 | $401,778 |
| RETAINED EARNINGS |  |  |
| Retained earnings | (353,304) | (83,632) |
| Net income | (134,068) | (269,672) |
| TOTAL STOCKHOLDERS' EQUITY | $(85,594) | $48,474 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $208,505 | $221,539 |
| BOOK VALUE PER SHARE | $(0.55) | $0.31 |

See accompanying notes to financial statements.

(Unaudited)

# MicroMGx, Inc.

# STATEMENT OF INCOME

# AND RETAINED EARNINGS

For the years ended December 31, 2021 and 2020

(See Accountant's Review Report)

Exhibit B

|  | 2021 | 2020 |
| --- | --- | --- |
| SERVICE REVENUE | $523,700 | $537,000 |
| COST OF SERVICES - R & D |  |  |
| Lab supplies | $41,269 | $22,273 |
| Lab equipment | 7,839 | 3,794 |
| Subcontractors | 150,926 | 171,219 |
| Salaries and wages | 397,510 | 430,984 |
| Payroll taxes | 29,641 | 33,813 |
| Fringe benefits | 23,342 | 14,221 |
| Rent | 61,244 | 39,946 |
| Shipping | 1,306 | 304 |
| Depreciation | 4,706 | 1,297 |
| Cloud Computing | 13,412 | 6,502 |
| Total cost of services - R & D | $731,195 | $724,353 |
| Gross loss | $(207,495) | $(187,353) |
| GENERAL AND ADMINISTRATIVE EXPENSES |  |  |
| Advertising and marketing | $15,650 | $6,680 |
| Banking fees | 701 | 76 |
| Corporate development | 56,414 | 20,464 |
| Dues and subscriptions | 433 | 1,230 |
| Insurance | 3,695 | 10,729 |
| Interest expense | 3,432 | 8,147 |
| Legal and professional | 47,468 | 48,535 |
| Meals | 483 | 1,264 |
| Office expense | 8,832 | 12,778 |
| Parking | 3,768 | 522 |
| Travel | 2,838 | 6,294 |
| Total general and administrative expenses | $143,714 | $116,719 |
| Operating loss | $(351,209) | $(304,072) |
| OTHER INCOME |  |  |
| Interest income | $ - | $200 |
| Employee retention credit | 128,341 | - |
| EIDL Grant | - | 6,000 |
| PPP loan debt forgiveness | 88,800 | 28,200 |
| Total other income | $217,141 | $34,400 |
| Net loss | $(134,068) | $(269,672) |
| RETAINED EARNINGS |  |  |
| Beginning | (353,304) | (83,632) |
| Ending | $(487,372) | $(353,304) |
| Primary and fully diluted income per share | $(0.87) | $(1.75) |

See accompanying notes to financial statements.

(Unaudited)

# MicroMGx, Inc.

# STATEMENT OF CASH FLOWS

For the years ended December 31, 2021 and 2020

(See Accountant's Review Report)

Exhibit C

|  | 2021 | 2020 |
| --- | --- | --- |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss | $(134,068) | $(269,672) |
| Adjustments to reconcile net loss to net cash provided by operating activities |  |  |
| Depreciation | 4,706 | 1,297 |
| Increase in payroll tax credit receivable | (85,542) | - |
| Increase in payroll tax deposits | (706) | (1,756) |
| Increase in accounts payable | 560 | 5,529 |
| Increase in credit card payable | 6,468 | 10,518 |
| (Decrease) Increase in accrued payroll | (4,672) | 17,839 |
| Decrease in accrued payroll taxes and benefits | (10,301) | (489) |
| (Decrease) Increase in accrued retirement contribution | (121) | 9,348 |
| Net cash used by operating activities | $(223,676) | $(227,386) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| Acquisitions of property and equipment | $(13,650) | $(17,843) |
| Acquisition of intellectual property | (10,000) |  |
| Net cash used by investing activities | $(23,650) | $(17,843) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| Increase in credit lines and notes | $43,100 | $117,200 |
| Increase in shareholder notes | 86,000 | - |
| Payoff of shareholder notes | - | (109,500) |
| Accrued interest paid on shareholder notes | - | (4,179) |
| Common stock issued | - | 400,000 |
| Net cash provided by financing activities | $129,100 | $403,521 |
| NET (DECREASE) INCREASE IN CASH | $(118,226) | $158,292 |
| CASH AND CASH EQUIVALENTS |  |  |
| Beginning | 203,237 | 44,945 |
| Ending | $85,011 | $203,237 |
| Total income taxes paid | $ - | $ - |
| Total interest paid | $3,432 | $8,147 |

See accompanying notes to financial statements.

MircroMGx, Inc.

# NOTES TO FINANCIAL STATEMENTS

(See Accountant's Review Report)

# NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND NATURE OF OPERATIONS

# A. Summary of Operations

The Company is engaged in discovering natural products that have important applications as the active ingredients in specialty chemical products ranging from pharmaceuticals to herbicides. The Company is primarily involved in research and development to support life sciences and new discovery that can generate revenue with other life science organizations.

The Company's mission is to accelerate the discovery of new chemistry from nature that can enrich and extend human life. The Company supports that undiscovered compounds produced by microbes can be identified and made accessible to life science R&D organizations around the world.

The Company's current operations provide services, consulting and specific research for other scientific organizations, research companies and product developers.

At this time, the Company does not sell or produce any specific product. Nor does it have a routine service or specific contract in place with its customers and other organizations.

In the short term, the Company hopes to generate significant revenue by entering into contracts with life science companies to provide specific microbial processes, research and development, and proprietary data, which will allow those companies to meet their goals and development of life science products.

In the long term, the Company's plan is to discovery natural products and then license them to life science companies, bringing in upfront license fees, milestone payments, and royalties.

B. Application of Revenue Recognition - Contracts & Services
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This guidance outlines a single, comprehensive model for accounting for revenue from contracts with customers. We acknowledged and adopted the standard on January 1, 2018 and have concluded that no changes are necessary to conform to the new standard for our fixed contracts as well as time and material contracts. Both methods use separate accounting methods, but both recognize revenue as work is performed. Additionally, the Company has previously assigned contract prices to each customer and job that they perform.

2

The Company had no open contracts at the end of 2021 and 2020. Services were performed in short periods and invoiced at the inception of any contract in 2021 and 2020. Therefore, revenue was recognized at the beginning of each contract.

The Company may use the completed contract method for future contracts that span over multiple accounting periods.

# C. Accounting Method

The Company used the Income Tax method of accounting for book and management reports prior to the issuance of these financial statements. The Company made the switch to GAAP accounting on January 1, 2020 to prepare applicable financial statements for investors.

The only item that could have an effect on these financial statements from the prior period accounting methods is startup costs. These are immaterial as the Company has recognized revenue since 2017 in relation to grant funding.

# D. Selling, General and Administrative Expense

These expenses are charged to operations as incurred and are not allocated to contract costs.

# E. Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less to be cash equivalents.

# F. Inventory

There is no inventory recorded or booked as the Company is still developing a product or process that may be sold. Inventory will be valued at cost which will consist of raw materials and other development costs to deliver customer deliverables.

# G. Property, Equipment and Depreciation

Property and equipment are carried at cost. Major additions are capitalized. Depreciation is computed using straight-line and accelerated methods over the following estimated useful lives:

Equipment and tools - 5 and 7 years

For book and income tax purposes assets less than $2,500 are expensed in the year of purchase.

# H. Location and Industry

The Company's lab is located in Chicago, Illinois. All of its research and development is conducted at this location. Administration and office work takes place in Evanston, IL and other remote locations. The Company is involved in providing services, consulting and specific research for other scientific organizations, other research companies and product developers.

(See Accountant's Review Report)

3

I. Advertising Costs

Advertising and sales promotion costs are expensed as incurred.

J. Accounts Receivable

Accounts receivable is carried at cost and is written off when determined to be uncollectible. An allowance is carried on the books. The Company had no account receivable balances for the periods ending December 31, 2021 and 2020.

# NOTE 2 DEBT & SHAREHOLDER PROMISSORY NOTES

On June 16, 2020 the Company took out a $117,200 SBA loan as part of the Economic Impact Program or "EIDL". The Company received an additional $43,100 on August 24, 2021 as part of the same program. The total principal balance due was $160,300 and $43,100 on December 31, 2021 and 2020.

The initial note was to include monthly installments of $572 and bear an interest rate of 3.75%. The collateral on the loan is all business assets. The SBA did not require payments for 12 months and the first payment made on the note was on July 2, 2021. Six payments of $572 were made on the note during 2021.

After the principal increase of $43,100 on August 24, 2021 the payment amount was to be updated to $820. However, payments of $572 have been paid monthly since July 2, 2021 and at this time are interest only, despite the loan agreement stating that they should be allocated to principal and interest. The SBA has changed the terms of this note and modified payment terms multiple times. The Company is up to date on all payments and continues to make interest only payments. The SBA is currently revising future payments.

Prior to and during 2020 and 2021 the Company's shareholders issued numerous promissory notes to the Company for operational expenses. Each note was issued with different principal balances and could be increased depending on the Company's cash flow and needs. Each note consistently charged a rate of 10% per annum on the current principal balance.

All promissory notes outstanding at December 31 2021 are not charging interest until January 1, 2022. No interest is accrued for the December 31, 2021 tax year. These notes are due and are to be repaid in full, plus interest on June 30, 2022. However, the owner of the note has the option of extending the due date of the note.

The following summarizes all activity and interest paid on each shareholder's promissory note for the periods ending December 2021 and 2020:

(See Accountant's Review Report)

4

# Anthony Goering

# 2020 Activity:

Initial Loan Date: 1/21/20

Loan Amount: $10,000

Company Repayment Date: 6/30/20

Total Principal Payoff: $10,000

Company Interest Paid in 2020: $416

# Jack Kloeber

# 2020 Activity:

Initial Loan Date: 3/28/19

Initial Loan Amount: $15,000

Principal Balance at Beginning of 2020: $50,000

Additional Loans made during 2020: $100

Company Repayment Date: 6/30/20

Total Principal Payoff: $50,100

Company Interest Paid in 2020: $3870

# 2021 Activity:

Initial Loan Date: 12/7/21

Loan Amount: $6,000

# Neil Kelleher

# 2020 Activity:

Initial Loan Date: 12/1/2016

Initial Loan Amount: $6,296

Principal Balance at Beginning of 2020: $59,500

Additional Loans made during 2020: $40,000

Company Repayment Date: 6/30/20

Total Principal Payoff: $99,500

Company Interest Paid in 2020: $6,144

# 2021 Activity:

Initial Loan Date: 12/13/21

Loan Amount: $20,000

# Regan Thomson

# 2020 Activity:

Initial Loan Date: 2/26/20

Initial Loan Amount: $10,000

Company Repayment Date: 6/30/20

Total Principal Payoff: $10,000

Company Interest Paid in 2020: $318

# 2021 Activity:

Initial Loan Date: 12/16/21

Loan Amount: $10,000

(See Accountant's Review Report)

5

# William Metcalf

2020 Activity:

Initial Loan Date: 1/29/20

Initial Loan Amount: $40,000

Company Repayment Date: 6/30/20

Total Principal Payoff: $40,000

Company Interest Paid in 2020: $1,578

2021 Activity:

Initial Loan Date: 12/20/21

Loan Amount: $25,000

# Rajmony Pannu

2021 Activity:

Initial Loan Date: 12/16/21

Loan Amount: $25,000

# NOTE 3 RELATED PARTY TRANSACTIONS

During 2021 and 2020 the Company engaged in multiple projects that required consulting fees to be paid to shareholders or their closely held companies. These fees were agreed upon by the Board of Directors and 1099s were issued for consulting arrangements outside of regular employment.

The following amounts were paid to shareholders or their closely held companies for consulting or other related services during 2021:

Proteinaceous, Inc. (Neil Kelleher - Shareholder): $4,000
- Enkay Omics Inc. (Neil Kelleher - Shareholder): $80,000
Kromite, LLC (Jack Kloeber - Shareholder): $49,555

The following amounts were paid to shareholders or their closely held companies for consulting or other related services during 2020:

- Kelleher Consulting Inc. (Neil Kelleher - Shareholder): $16,960
Proteinaceous, Inc. (Neil Kelleher - Shareholder): $26,400
Kromite, LLC (Jack Kloeber - Shareholder): $64,464
Regan Thomson: $7,280
William Metcalf: $15,760

# NOTE 4 STOCK ISSUANCE AND OWNERSHIP

On April 20, 2020, the Company issued an additional 15,500 shares of common shares to Rajmony Pannu in exchange for $400,000. Before the issuance of the stock, the Company had 138,875 shares issued of 1,000,000 shares available. All other shares issued prior to 2020 were at zero cost or for $778 related to sweat equity.

(See Accountant's Review Report)

6

On June 21, 2021, Jack Kloeber purchased 6,200 shares from Rajmony Pannu.

Ownership of the Company on December 31, 2021 is as follows:

| Shareholder | Shares | % of Interest |
| --- | --- | --- |
| Neil Kelleher | 42,000 | 27.21% |
| William Metcalf | 39,000 | 25.26% |
| Regan Thomson | 18,000 | 11.66% |
| Anthony Goering | 12,100 | 7.84% |
| Jack Kloeber | 33,975 | 22.01% |
| Rajmony Pannu | 9,300 | 6.02% |
|  | 154,375 | 100.00% |

Ownership of the Company on December 31, 2020 is as follows:

| Shareholder | Shares | % of Interest |
| --- | --- | --- |
| Neil Kelleher | 42,000 | 27.21% |
| William Metcalf | 39,000 | 25.26% |
| Regan Thomson | 18,000 | 11.66% |
| Anthony Goering | 12,100 | 7.84% |
| Jack Kloeber | 27,775 | 17.99% |
| Rajmony Pannu | 15,500 | 10.04% |
|  | 154,375 | 100.00% |

The value of the stock is the appraised value, which is the fair market value of the Company as determined by the Company's regular accountant as of the end of the last full taxable year.

### NOTE 5 CASH FLOW INFORMATION

Cash paid for interest and income taxes was as follows:

|  | 2021 | 2020 |
| --- | --- | --- |
| Interest | $3,432 | $8,147 |

In 2021 and 2020 there were no non-cash investing or financing transactions. No interest was capitalized during the year.

### NOTE 6 CONCENTRATIONS

For the year ended December 31, 2021, the Company had two customers that comprised all of the revenue. For the year ended December 31, 2020, one customer comprised all of the company revenue.

The services and research the Company provides has a very concentrated customer base and demand.

(See Accountant's Review Report)

7

The Company also has a concentration of lenders and financing opportunities as a startup operation. Financing has only been obtainable through government programs and shareholders.

# NOTE 7 INCOME TAX EXPENSE

Components - Current and Deferred

The Company elected to be treated as an S-Corporation effective January 1, 2015.

The provision for income taxes consists of the following components:

|  | 2021 | 2020 |
| --- | --- | --- |
| Current - Federal | $ -0- | $ -0- |
| Current - Illinois | -0- | -0- |
| Deferred - Federal | -0- | -0- |
| Deferred - Illinois | -0- | -0- |
| Total | $ -0- | $ -0- |

The Company can elect to pay Illinois income tax at the entity level. Illinois passed legislation in August of 2021 that allows S-Corporations to deduct and pay income tax at the entity level. The Company has not elected to pay tax at the entity level in 2021.

In 2021 and going forward the Company will not book any deferred tax provisions, as the tax flows through to shareholders, not the Company.

# Uncertain Tax Positions

The Company adopted the provisions of ASC 740-10. As of December 31, 2021 and 2020 there were no significant uncertain tax positions.

The Company continually evaluates expiring statutes of limitations, audit, proposed settlements, changes in tax law, and new authoritative rulings.

The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of the income tax provision. As of December 31, 2021 and 2020 there were no accrued interest and penalties associated with uncertain tax positions accrued in the financial statements.

The Company files income tax returns in the U.S. federal jurisdiction, and the State of Illinois. There are no federal or state audits in progress.

U.S. federal and Illinois statute of limitations is three years.

The company has filed paperwork in 2021 to have the corporation be taxed as a "C Corporation", effective January 1, 2022.

(See Accountant's Review Report)

8

# NOTE 8 ESTIMATES

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

# NOTE 9 OTHER ASSET

The Company's other asset or intangible proprietary property, includes a license and patent option obtained in 2021 for $10,000 from the University of Illinois. The company is electing not to amortize this cost until research and production starts in relation to the licensing rights.

# NOTE 10 DEPRECIATION

Depreciation expense for 2021 and 2020 is as follows:

|  | 2021 | 2020 |
| --- | --- | --- |
| Beginning accumulated depreciation | $1,297 | $ -0- |
| Depreciation expense | 4,706 | 1,297 |
| Ending accumulated depreciation | $6,003 | $1,297 |

No assets were sold, disposed or out of service in 2021 and 2020.

# NOTE 11 RETIREMENT PLAN AND BENEFITS

The Company has a Simple IRA retirement plan for all employees. If performance allows, the company provides a percentage match at the end of year. The Company contributed and matched $9,227 and $9,348 in 2021 and 2020, respectively.

The Company has a paid time off policy and employees can accrue hours. The Company does not accrue paid time off in its financial statements. The approximate liability would be $10,000 for both 2021 and 2020, respectively.

# NOTE 12 COVID-19 AND FINANCIAL IMPACT

In 2021 the Company received a loan from PNC Bank, NA in the amount of $88,800 under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan is subject to a note dated February 8, 2021. The Company applied for and was notified on September 27, 2021 that $88,800 in eligible expenditures for

(See Accountant's Review Report)

9

payroll and other expenses described in the CARES Act have been forgiven. Loan forgiveness is reflected in other income in the statement of income.

In 2020 the Company received a loan from PNC Bank, NA in the amount of $28,200 under the Paycheck Protection Program established by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The loan was subject to a note dated May 12, 2020. The Company applied for and has been notified on April 14, 2021 that $28,200 in eligible expenditures for payroll and other expenses described in the CARES Act was forgiven. Loan forgiveness is reflected in other income in the accompanying statement of income.

The Company also received $6,000 on April 21, 2020 from the SBA as an initial EIDL loan advance. However, this amount was also forgiven and reclassified a grant.

None of the Paycheck Protection Program or the EIDL grant government assistance the Company received is taxable.

As part of Covid-19 relief programs the Company took advantage of the employee retention tax credit. The Company filed three 941 forms for the first three quarters of 2021 to claim a refund against payroll taxes. The total refunds requested totaled $128,341. The Company received $42,279 for the second quarter's credit in 2021 and the remaining credits of $85,542 were received in 2022. The credit is taxable for federal and Illinois income tax returns.

The Company has remained and continues to be operational during the Covid-19 pandemic.

# NOTE 13 RENTAL LAB LEASE

The Company rents its lab space from the Illinois Institute of Technology in Chicago Illinois. The Company entered into its first lease on March 28, 2019 and renewed the lease on October 23, 2021.

The Company recently adjusted the lease on May 25, 2022 and it expires on May 31, 2023. The renewed lease reduced the size and space the Company was leasing from the Illinois Institute of Technology.

Rent expense to Illinois Institute of Technology for the years ended December 31, 2021 and 2020 was $61,244 and $39,946, respectively. No amounts were unpaid at December 31, 2021 and 2020.

Known future rent payments are as follows:

2022 $49,363

2023 11,660

Total $61,023

(See Accountant's Review Report)

10

# NOTE 14 GOING CONCERN

The COVID-19 pandemic developed rapidly in 2020. The resulting impact of the virus on the operations and measures taken by various governments to contain the virus have negatively affected the Company's results in the respective reporting periods.

The currently known impacts of COVID-19 on the Company are:

- A decline in revenues in 2020 and 2021 from expected and budget services to be performed.
- Closure of the Company's production facilities/sales locations in Illinois until at least June of 2020 and limited use afterwards.
- Closure of the Company's customers and target market's business and operations.
- Difficulty obtaining financing for operations that are ceased or stalled.
- Limitations on travel to visit customers, marketing the Company's services, and raising funds from investors or banks.

These developments result in an operating net loss of $354,241 and $304,072 in 2021 and 2020. Additionally, an operating cash outflow of $118,266 occurred in 2021.

As a result of these matters there is a material uncertainty that may cast significant doubt upon the Company's ability to continue as a going concern and therefore whether the group will realize its assets and settle its liabilities in the ordinary course of business at the amounts recorded in the financial statements.

In response to these matters, the Company has taken the following actions:

1. Sale of equipment and other lab supplies that are not integral to short term operations
2. Ceasing unnecessary operations and furloughed staff in order to manage available cash reserves;
3. Not paying any shareholder distributions and not paying down shareholder promissory notes until cash flow allows.

However, if operations continue to decline and services or revenue opportunities are not present by December 31, 2022 then it will be necessary to raise additional capital from investors or obtain financing from lenders. The Company has started those discussions and expects that this capital will be available if required. Although it is not certain that these efforts will be successful, management has determined that the actions that have been taken are sufficient to mitigate the uncertainty. Based on the circumstances described above, the financial statements are prepared on the assumption that the entity is a going concern.

(See Accountant's Review Report)

11

# NOTE 15 SUBSEQUENT EVENTS

We are not aware of any subsequent events that need to be disclosed in the financial statements as of July 25, 2022, which is the financial statement issuance date.

(See Accountant's Review Report)

BEGALKE & ASSOCIATES LLC

TAX, ACCOUNTING AND ADVISORY SERVICES

# INDEPENDENT ACCOUNTANT'S REVIEW REPORT

To Management

MicroMGx, Inc.

3440 S. Dearborn Street

#144S

Chicago, Illinois 60616

We have reviewed the accompanying financial statements of MicroMGx, Inc. (an S Corporation), which comprise the balance sheets as of December 31, 2021 and 2020, and the related statements of income and retained earnings, changes in stockholders' equity, and cash flows for the years then ended, and the related notes to the financial statements. A review includes primarily applying analytical procedures to management's financial data and making inquiries of 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 engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. Those standards require us to perform procedures to obtain limited assurance as a basis for reporting whether we are aware of any material modifications that should be made to the financial statements for them to be in accordance with accounting principles generally accepted in the United States of America. We believe that the results of our procedures provide a reasonable basis for our conclusion.

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

BEGALKECPA.COM

2024 Kohler Memorial Drive

Sheboygan, WI 53081

506 E. Mill St., Suite 106

Plymouth, WI 53073

920.458.3591 (phone)

920.458.4560 (fax)

2

### **Emphasis of Matter**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 14 to the financial statements, the Company has suffered recurring losses from operations, has a net capital deficiency, and has stated that substantial doubt exists about the Company's ability to continue as a going concern. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in Note 14. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our conclusion is not modified with respect to this matter.

### **Accountant's Conclusion**

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

*Begulhu & Associates LLC*

Sheboygan, Wisconsin

July 25, 2022

MicroMGx, Inc.

STATEMENT OF CHANGES IN

STOCKHOLDERS' EQUITY

For the years ended December 31, 2021 and 2020

(See Accountant's Review Report)

(Unaudited)

Exhibit C

|  | Common Stock Shares | Common Stock Amount | Additional Paid-In Capital | Accumulated Deficit | Stock Warrants | Total Stockholders' Equity |
| --- | --- | --- | --- | --- | --- | --- |
| Balance at January 1, 2020 | 138,875 | $1,778 | $ - | $(83,632) | $ - | $(81,854) |
| Net income (loss) | - | - | - | (269,672) | - | (269,672) |
| Issurance of common stock | 15,500 | 400,000 | - | - | - | 400,000 |
| Balance at December 31, 2020 | 154,375 | $401,778 | $ - | $(353,304) | $ - | $48,474 |
| Net income (loss) | - | - | - | (134,068) | - | (134,068) |
| Issurance of common stock | - | - | - | - | - | - |
| Balance at December 31, 2021 | 154,375 | $401,778 | $ - | $(487,372) | $ - | $(85,594) |

See accompanying notes to financial statements.

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

State of Delaware
Secretary of State
Division of Corporations
Delivered 02:42 PM 07/29/2022
FILED 02:42 PM 07/29/2022
SR 20223128668 - File Number 6893666

# 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 MicroMGx, 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 "Fourth" so that, as amended, said Article shall be and read as follows:

The amount of the total stock of this corporation is authorized to issue is 30,000,000 shares (number of authorized shares) with a par value of $.0003333

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 28th day of July, 2022.

By: Jack M. Kloepfer

Authorized Officer

Title: CEO/President

Name: Jack M. Kloepfer Jr.

Print or Type

State of Delaware
Secretary of State
Division of Corporations
Delivered 03:59 PM 06/28/2022
FILED 03:59 PM 06/28/2022
SR 20222852810 - File Number 6893666

# STATE OF DELAWARE
CERTIFICATE OF CONVERSION
FROM A NON-DELAWARE CORPORATION
TO A DELAWARE CORPORATION
PURSUANT TO SECTION 265 OF THE
DELAWARE GENERAL CORPORATION LAW

1.) The jurisdiction where the Non-Delaware Corporation first formed is Illinois
2.) The jurisdiction immediately prior to filing this Certificate is Illinois
3.) The date the Non-Delaware Corporation first formed is July 20, 2015
4.) The name of the Non-Delaware Corporation immediately prior to filing this Certificate is MicroMGx, Inc.
5.) The name of the Corporation as set forth in the Certificate of Incorporation is MicroMGx, Inc.

IN WITNESS WHEREOF, the undersigned being duly authorized to sign on behalf of the converting Non-Delaware Corporation have executed this Certificate on the 6th day of June, A.D. 2022.

By: Jack M Kloeb

Name: Jack Kloeber
Print or Type

Title: CEO/President
Print or Type

# STATE of DELAWARE
## CERTIFICATE of INCORPORATION
### A STOCK CORPORATION

• First: The name of this Corporation is MicroMGx, Inc.

• Second: Its registered office in the State of Delaware is to be located at 251 Little Falls Drive Street, in the City of Wilmington County of New Castle Zip Code 19808.

The registered agent in charge thereof is Corporation Service Company

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

• Fourth: The amount of the total stock of this corporation is authorized to issue is 1,000,000 shares (number of authorized shares) with a par value of 0.01 per share.

• Fifth: The name and mailing address of the incorporator are as follows:
Name Jack Kloeber
Mailing Address 3440 S Dearborn St Suite #144s
Chicago, IL 60616 Zip Code Chicago, IL

• I, The Undersigned, for the purpose of forming a corporation under the laws of the State of Delaware, do make, file and record this Certificate, and do certify that the facts herein stated are true, and I have accordingly hereunto set my hand this 6th day of June, A.D. 2022.

BY: Jack M Kloeber
(Incorporator)

NAME: Jack Kloeber
(type or print)

State of Delaware
Secretary of State
Division of Corporations
Delivered 03:59 PM 06/28/2022
FILED 03:59 PM 06/28/2022
SR 20222852810 - File Number 6893666

8/3/22, 1:09 PM

articles of incorporation.jpg (1700×2200)

# FORM BCA 2.10
ARTICLES OF INCORPORATION
Business Corporation Act

Filing Fee: $150

Franchise Tax: $25

Total: $175

File #: 70266695

Approved By: JXR

FILED

JUL 20 2015

Jesse White

Secretary of State

1. Corporate Name: MICROBIAL PHARMACEUTICALS, INC.

2. Initial Registered Agent: ALAN R. SINGLETON

| Initial Registered Office: | First Name |  | Middle Initial | Last Name |
| --- | --- | --- | --- | --- |
|  | 2001 S 1ST ST STE 209 |  |  |  |
|  | Number | Street | Suite No. |  |
|  | CHAMPAIGN | IL | 61820-7478 | CHAMPAIGN |
|  | City |  | ZIP Code | County |

3. Purposes for which the Corporation is Organized:

The transaction of any or all lawful businesses for which corporations may be incorporated under the Illinois Business Corporation Act.

4. Authorized Shares, Issued Shares and Consideration Received:

| Class | Number of Shares Authorized | Number of Shares Proposed to be Issued | Consideration to be Received Therefor |
| --- | --- | --- | --- |
| COMMON | 1000000 | 100000 | $1000 |

# NAME & ADDRESS OF INCORPORATOR

5. The undersigned incorporator hereby declares, under penalties of perjury, that the statements made in the foregoing Articles of Incorporation are true.

| Dated JULY 20 | 2015 | 2749 WOODBINE AVE. |  |  |
| --- | --- | --- | --- | --- |
| Month & Day | Year | Street |  |  |
| NEIL LINDSTROM KELLEHER | EVANSTON | IL | 60201 |  |
| Name | City/Town | State | ZIP Code |  |

This document was generated electronically at www.cyberdriveillinois.com

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

# **BYLAWS  
OF  
MICROBIAL PHARMACEUTICALS, INC.**---

## ARTICLE I

### OFFICES

The principal office of the corporation in the State of Illinois shall be located in Cook County. The corporation may have such other offices, either within or without the State of Illinois, as the business of the corporation may require from time to time.

The registered office of the corporation required by the Illinois Business Corporation Act of 1983 to be maintained in the State of Illinois may be, but need not be, identical with the principal office in the State of Illinois.

## ARTICLE II

### SHAREHOLDERS

**SECTION 1. ANNUAL MEETING.** The annual meeting of the shareholders shall be held on the 1$^{st}$ day in June each year beginning in 2016, for the purpose of electing directors and for the transaction of such other business as may come before the meeting. If the day fixed for the annual meeting shall be a legal holiday, such meeting shall be held on the next succeeding business day. If the election of directors shall not be held on the day designated herein for any annual meeting, or at any adjournment thereof, the Board of Directors shall cause the election to be held at a meeting of the shareholders as soon thereafter as may be convenient.

**SECTION 2. SPECIAL MEETINGS.** Special meetings of the shareholders may be called by the president, by the Board of Directors, or by the holders of not less than one-fifth of all the outstanding shares of the corporation entitled to vote on the matter for which the meeting is called.

**SECTION 3. PLACE OF MEETING.** The Board of Directors may designate any place, either within or without the State of Illinois, as the place of meeting for any annual meeting or for any special meeting called by the Board of Directors. A waiver of notice signed by all shareholders may designate any place, either within or without the State of Illinois, as the place for the holding of such meeting. If no designation is made, or if a special meeting is otherwise called, the place of meeting shall be the registered office of the corporation in the State of Illinois, except as otherwise provided in Section 5 of this Article II.

**SECTION 4. NOTICE OF MEETINGS.** Written or printed notice stating the place, day, and hour of the meeting, and in the case of a special meeting, the purpose or purposes for which the

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meeting is called, shall be delivered not less than ten (10) nor more than sixty (60) days before the date of the meeting, or in the case of a merger, consolidation, share exchange, dissolution, or sale, lease or exchange of assets, not less than twenty (20) nor more than sixty (60) days before the date of the meeting, either personally or by mail, by or at the direction of the president, or the secretary, or the officer or persons calling the meeting, to each shareholder of record entitled to vote at such meeting. If mailed, such notice shall be deemed to be delivered when deposited in the United States mail, addressed to the shareholder at the shareholder's address as it appears on the records of the corporation, with postage thereon prepaid. When a meeting is adjourned to another time or place, notice need not be given of the adjourned meeting if the time and place thereof are announced at the meeting at which the adjournment is taken.

**SECTION 5. MEETING OF ALL SHAREHOLDERS.** If all of the shareholders shall meet at any time and place, either within or without the State of Illinois, and consent to the holding of a meeting at such time and place, such meeting shall be valid without call or notice, and at such meeting any corporate action may be taken.

**SECTION 6. CLOSING OF TRANSFER BOOKS OR FIXING OF RECORD DATE.** For the purpose of determining the shareholders entitled to notice of or to vote at any meeting of shareholders, or shareholders entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors of the corporation may fix in advance a date as the record date for any such determination of shareholders, not less than ten (10) days, or in the case of a merger, consolidation, share exchange, dissolution, or sale, lease, or exchange of assets, not less than twenty (20) days, immediately preceding the date of such meeting. If no record date is fixed for the determination of shareholders entitled to notice of or to vote at a meeting of shareholders, or shareholders entitled to receive payment of a dividend, the date on which notice of the meeting is mailed or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of shareholders. When a determination of shareholders entitled to vote at any meeting of shareholders has been made as provided in this Section, such determination shall apply to any adjournment thereof.

**SECTION 7. VOTING LISTS.** The officer or agent having charge of the transfer books for shares of the corporation shall make, within twenty (20) days after the record date for a meeting of shareholders or at least ten (10) days before such meeting, whichever is earlier, a complete list of the shareholders entitled to vote at such meeting, arranged in alphabetical order, showing the address of and the number of shares registered in the name of each shareholder. For a period of ten (10) days before such meeting, such list shall be kept on file at the registered office of the corporation and shall be open to inspection by any shareholder, and to copying at the shareholder's expense, at any time during usual business hours. Such list shall also be produced and kept open at the time and place of the meeting and may be inspected by any shareholder during the whole time of the meeting. The original share ledger or transfer book, or a duplicate thereof kept in the State of Illinois, shall be prima facie evidence as to the shareholders who are entitled to examine such list, share ledger, or transfer book or to vote at any meeting of shareholders.

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SECTION 8. QUORUM. A majority of the outstanding shares of the corporation entitled to vote on a matter, represented in person or by proxy, shall constitute a quorum for consideration of such matter at any meeting of shareholders; provided, that if less than a majority of the outstanding shares are represented at said meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. If a quorum is present, the affirmative vote of the majority of the shares represented at the meeting shall be the act of the shareholders, unless the vote of a greater number of voting by classes is required by The Illinois Business Corporation Act of 1983, the Articles of Incorporation or these Bylaws. At any adjourned meeting at which a quorum shall be present, any business may be transacted that might have been transacted at the original meeting. Withdrawal of shareholders from any meeting shall not cause failure of a duly constituted quorum at that meeting.

SECTION 9. PROXIES. At all meetings of shareholders, a shareholder may vote by proxy executed in writing by the shareholder or by the shareholder's duly authorized attorney in fact. Such proxy shall be filed with the secretary of the corporation before or at the time of the meeting. No proxy shall be valid after eleven (11) months from the date of its execution unless otherwise provided in the proxy.

SECTION 10. VOTING OF SHARES. Unless otherwise provided in the Articles of Incorporation, each outstanding share shall be entitled to one (1) vote on each matter submitted to vote at a meeting of shareholders; provided, however, that at all elections for directors, every shareholder shall have the right to vote, in person or by proxy, the number of shares owned by the shareholder for as many persons as there are directors to be elected, or to cumulate such votes, and give one candidate as many votes as shall equal the number of directors multiplied by the number of such shares, or to distribute them on the same principle among as many candidates as the shareholder shall see fit.

SECTION 11. VOTING OF SHARES BY CERTAIN HOLDERS. Shares of the corporation held by the corporation in a fiduciary capacity may be voted and shall be counted in determining the total number of outstanding shares entitled to vote at any given time.

Shares registered in the name of another corporation, domestic or foreign, may be voted by any officer, agent, proxy, or other legal representative authorized to vote such shares under the law of incorporation of such corporation. The corporation may treat the president or other person holding the position of chief executive officer of such other corporation as authorized to vote such shares, together with any other person indicated and any other holder of any office indicated by the corporate shareholder to the corporation as a person or an officer authorized to vote such shares. Such persons and officers indicated shall be registered by the corporation on the transfer books for shares and included in any voting list prepared in accordance with Section 7 of this Article II.

Shares registered in the name of a deceased person, a minor ward or a person under legal disability may be voted by that person's administrator, executor, or court appointed guardian, either in person or by proxy, without a transfer of such shares into the name of such administrator,

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executor, or court appointed guardian. Shares registered in the name of a trustee may be voted by the trustee, either in person or by proxy.

Shares registered in the name of a receiver may be voted by such receiver, and shares held by or under the control of a receiver may be voted by such receiver without the transfer thereof into the receiver's name if authority so to do is contained in an appropriate order of the court by which such receiver was appointed. A shareholder whose shares are pledged shall be entitled to vote such shares until the shares have been transferred into the name of the pledgee, and thereafter the pledgee shall be entitled to vote the shares so transferred.

**SECTION 12. INSPECTORS.** At any meeting of shareholders, the chair of the meeting may, or upon the request of any shareholder shall, appoint one or more persons as inspectors for such meeting.

Such inspectors shall ascertain and report the number of shares represented at the meeting based on their determination of the validity and effect of proxies, count all votes and report the results, and do such other acts as are proper to conduct the election and voting with impartiality and fairness to all the shareholders.

Each report of an inspector shall be in writing and signed by the inspector or by a majority of the inspectors if there is more than one inspector acting at such meeting. If there is more than one inspector, the report of a majority shall be the report of the inspectors. The report of the inspector or inspectors on the number of shares represented at the meeting and the results of the voting shall be prima facie evidence thereof.

**SECTION 13. INFORMAL ACTION BY SHAREHOLDERS.** Unless otherwise provided in the Articles of Incorporation or §12.10 of the Illinois Business Corporation Act of 1983, any action required to be taken at any annual or special meeting of the shareholders, or any other action that may be taken at a meeting of the shareholders, may be taken without a meeting and without a vote if a consent in writing, setting forth the action so taken, shall be signed (a) by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voting or (b) by all of the shareholders entitled to vote with respect to the subject matter thereof. If such consent is signed by less than all of the shareholders entitled to vote, then such consent shall become effective only if at least five (5) days before the execution of the consent a notice in writing is delivered to all the shareholders entitled to vote with respect to the subject matter thereof and, after the effective date of the consent, prompt notice of the taking of the corporate action without a meeting by less than unanimous written consent shall be delivered in writing to those shareholders who have not consented in writing.

**SECTION 14. VOTING BY BALLOT.** Voting on any question or in any election may be by voice unless the presiding officer shall order or any shareholder shall demand that voting be by ballot.

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# ARTICLE III

## DIRECTORS

**SECTION 1. GENERAL POWERS.** The business and affairs of the corporation shall be managed by or under the direction of its Board of Directors.

**SECTION 2. NUMBER, TENURE, AND QUALIFICATIONS.** The number of directors of the corporation shall be three (3). The number of directors may be increased or decreased from time to time by amendment of this Section, but no decrease shall have the effect of shortening the term of any incumbent director. The terms of all directors shall expire at the next annual shareholders' meeting following their election. The term of a director elected to fill a vacancy shall expire at the next annual shareholders' meeting at which the predecessor's term would have expired. The term of a director elected as a result of an increase in the number of directors shall expire at the next annual shareholders' meeting. Despite the expiration of a director's term, a director shall continue to serve until the next meeting of shareholders at which directors are elected. Directors need not be residents of the State of Illinois or shareholders of the corporation.

**SECTION 3. REGULAR MEETINGS.** A regular meeting of the Board of Directors shall be held without other notice than this Bylaw immediately after, and at the same place as, the annual meeting of shareholders. The Board of Directors may provide, by resolution, the time and place, either within or without the State of Illinois, for the holding of additional regular meetings without other notice than such resolution.

**SECTION 4. SPECIAL MEETINGS.** Special meetings of the Board of Directors may be called by or at the request of the president or any director. The person or persons authorized to call special meetings of the Board of Directors may fix any place, either within or without the State of Illinois, as the place for holding any special meeting of the Board of Directors called by them.

**SECTION 5. NOTICE.** Notice of any special meeting shall be given at least five (5) days previous thereto by written notice delivered personally or mailed to each director at the director's business address, or by facsimile, email or overnight courier. If mailed, such notice shall be deemed to be delivered four days after being deposited with the United States mail so addressed, with postage thereon prepaid. If notice is given by facsimile, email or overnight courier, such notice shall be effective when actually received. Any directors may waive notice of any meeting. The attendance of a director at any meeting shall constitute a waiver of notice of such meeting, except when a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting.

**SECTION 6. QUORUM.** Unless otherwise provided in the Articles of Incorporation, a majority of the number of directors fixed by these Bylaws shall constitute a quorum for the

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transaction of business at any meeting of the Board of Directors, provided that if less than a majority of such number of directors are present at said meeting, a majority of the directors present may adjourn the meeting from time to time without further notice.

Unless specifically prohibited by the Articles of Incorporation, members of the Board of Directors or of any committee of the Board of Directors may participate in and act at any meeting of such board or committee through the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other. Participation in such meeting shall constitute attendance and presence in person at the meeting of the person or persons so participating.

**SECTION 7. MANNER OF ACTING.** The act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors, unless the act of a greater number is required by statute, these Bylaws, or the Articles of Incorporation.

**SECTION 8. RESIGNATIONS.** A director may resign at any time by giving written notice to the Board of Directors, its chair, if any, or the president or secretary of the corporation. A resignation shall be effective when the notice is given unless the notice specifies a future date. The pending vacancy may be filled before the effective date, but the successor shall not take office until the effective date.

**SECTION 9. VACANCIES.** Any vacancy occurring in the Board of Directors and any directorship to be filled by reason of an increase in the number of directors may be filled by election at an annual meeting or at a special meeting of shareholders called for the purpose. A director appointed to fill a vacancy shall serve until the next meeting of shareholders at which directors are to be elected.

**SECTION 10. INFORMAL ACTION BY DIRECTORS.** Unless specifically prohibited by the Articles of Incorporation or by other provisions of these Bylaws, any action required to be taken at a meeting of the Board of Directors, or any other action that may be taken at a meeting of the Board of Directors, or of any committee thereof, may be taken without a meeting if a consent in writing, setting forth the action so taken, shall be signed by all the directors entitled to vote with respect to the subject matter thereof, or by all the members of such committee, as the case may be. Any such consent signed by all the directors or all the members of the committee shall have the same effect as a unanimous vote and may be stated as such in any document filed with the Secretary of State of the State of Illinois or with anyone else.

**SECTION 11. COMMITTEES.** A majority of the directors fixed by these Bylaws may, by resolution, create one or more committees and appoint members of the board to serve on any one or more of such committees. Each committee shall have one (1) or more members who shall serve at the pleasure of the board. A majority of any committee shall constitute a quorum, and a majority of a quorum is necessary for committee action. Each committee, to the extent provided by the Board of Directors in such resolution, shall have and exercise all of the authority of the Board of Directors in

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the management of the corporation, except that a committee may not authorize distributions; approve or recommend to shareholders any act required by statute to be approved by shareholders; fill vacancies on the board or on any of its committees; adopt, amend, or repeal the Bylaws; approve a plan of merger not requiring shareholder approval; authorize or approve the reacquisition of shares, except according to a general formula or method prescribed by the board; authorize or approve the issuance or sale, or contract for sale, of shares or determine the designation and relative rights, preferences, and limitations of a series of shares, except that the board may direct a committee to fix the specific terms of issuance or sale or contract for sale or the number of shares to be allocated to particular employees under an employee benefit plan; or amend, alter, repeal, or take action inconsistent with any resolution or action of the Board of Directors when the resolution or action of the Board of Directors provides by its terms that it shall not be amended, altered, or repealed by action of a committee. Vacancies in the membership of any committee shall be filled by the Board of Directors. Each committee shall keep regular minutes of its proceedings and report the same to the board when required. A committee may act by unanimous consent in writing without a meeting and, subject to action by the Board of Directors, each committee, by a majority vote of its members, shall determine the time and place of meetings and the notice required thereof.

SECTION 12. COMPENSATION. The Board of Directors, by the affirmative vote of a majority of directors then in office, and irrespective of any personal interest of any of its member, shall have authority to establish reasonable compensation of all directors for services to the corporation as directors, officers, or otherwise. By resolution of the Board of Directors, the directors may be paid their expenses, if any, of attendance at each meeting of the board. No such payment previously mentioned in this Section shall preclude any director from serving the corporation in any other capacity and receiving compensation therefor.

SECTION 13. PRESUMPTION OF ASSENT. A director of the corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be conclusively presumed to have assented to the action taken unless that director's dissent shall be entered in the minutes of the meeting or unless the director files a written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or forwards such dissent by registered or certified mail to the secretary of the corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action.

SECTION 14. REMOVAL OF DIRECTORS. One (1) or more of the directors may be removed, with or without cause, at a meeting of shareholders by the affirmative vote of the holders of a majority of the outstanding shares then entitled to vote at an election of directors, except that no director shall be removed at a meeting of shareholders unless the notice of such meeting shall state that a purpose of the meeting is to vote on the removal of one or more directors named in the notice, and then only the named director or directors may be removed at such meeting. In the event directors of the corporation are elected by cumulative voting, if less than the entire board is to be removed, no director may be removed, with or without cause, if the votes cast against the director's removal would be sufficient to elect the director if then cumulatively voted at an election of the entire Board

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of Directors. If a director has been elected by a class or series of shares, such director may be removed only by the shareholders of that class or series.

## ARTICLE IV

### OFFICERS

**SECTION 1. NUMBER.** The officers of the corporation shall be a president, one or more vice presidents (the number thereof to be determined by the Board of Directors), a treasurer, and a secretary, and such assistant treasurers, assistant secretaries, or other officers as may be elected or appointed by the Board of Directors. Any two (2) or more offices may be held by the same person.

**SECTION 2. ELECTION AND TERM OF OFFICE.** The officers of the corporation shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each annual meeting of shareholders. If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as may be convenient. Vacancies may be filled or new offices created and filled at any meeting of the Board of Directors. Each officer shall hold office until a successor shall have been duly elected and shall have qualified or until the officer's death or until the officer shall resign or shall have been removed in the manner hereinafter provided. Election or appointment of an officer or agent shall not of itself create contract rights. Any officer may resign at any time by giving notice to the Board of Directors or to the president or the secretary. A resignation of an officer need not be accepted in order to be effective.

**SECTION 3. REMOVAL.** Any officer or agent may be removed by the Board of Directors whenever in its judgment the best interests of the corporation would be served thereby, but such removal shall be without prejudice to the contract rights, if any, of the person so removed.

**SECTION 4. VACANCIES.** A vacancy in any office because of death, resignation, removal, disqualification, or otherwise may be filled by the Board of Directors for the unexpired portion of the term.

**SECTION 5. PRESIDENT.** The president shall preside at all meetings of the shareholders and of the Board of Directors. The president may sign, with the secretary or any other proper officer of the corporation thereunto authorized by the Board of Directors, certificates for shares of the corporation and any deeds, mortgages, bonds, contracts, or other instruments that the Board of Directors has authorized to be executed, except in cases in which the signing and execution thereof shall be expressly delegated by the Board of Directors or by these Bylaws to some other officer or agent of the corporation, or shall be required by law to be otherwise signed or executed, and in general shall perform all duties incident to the office of president and such other duties as may be prescribed by the Board of Directors.

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SECTION 6. THE VICE PRESIDENT. The vice president (or in the event there be more than one vice president, each of the vice presidents) shall assist the president in the discharge of the president's duties as the president may direct and shall perform such other duties as from time to time may be assigned to the vice president by the president or by the Board of Directors. In the absence of the president or in the event of the president's inability or refusal to act, the vice president (or in the event there be more than one vice president, the vice presidents in the order designated by the Board of Directors, or by the president if the Board of Directors has not made such a designation, or in the absence of any designation, then in the order of seniority of tenure as vice president) shall perform the duties of the president, and when so acting, shall have all the powers of and be subject to all the restrictions upon the president. Except in those instances in which the authority to execute is expressly delegated to another officer or agent of the corporation or a different mode of execution is expressly prescribed by the Board of Directors or these Bylaws, the vice president (or each of them if there is more than one) may execute for the corporation certificates for its shares and any contracts, deeds, mortgages, bonds, or other instruments that the Board of Directors has authorized to be executed, and the vice president may accomplish such execution either under or without the seal of the corporation and either individually or with the secretary, any assistant secretary, or any other officer thereunto authorized by the Board of Directors, according to the requirements of the form of the instrument.

SECTION 7. THE TREASURER. If required by the Board of Directors, the treasurer shall give a bond for the faithful discharge of the treasurer's duties in such sum and with such surety or sureties as the Board of Directors shall determine. The treasurer shall (a) have charge and custody of and be responsible for all funds and securities of the corporation; (b) receive and give receipts for money due and payable to the corporation from any source whatsoever and deposit all such money in the name of the corporation in such banks, trust companies, or other depositaries as shall be selected in accordance with the provisions of Section 4 of Article V of these Bylaws; and (c) in general perform all the duties incident to the office of treasurer and such other duties as from time to time may be assigned to the treasurer by the president or by the Board of Directors.

SECTION 8. THE SECRETARY. The secretary shall (a) keep the minutes of the meetings of the shareholders, the Board of Directors, and committees of directors, in one or more books provided for that purpose; (b) see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; (c) be custodian of the corporation records and of the seal of the corporation and see that the seal of the corporation is affixed to all certificates for shares before the issue thereof and to all documents, the execution of which on behalf of the corporation under its seal is duly authorized in accordance with the provisions of these Bylaws; (d) keep a register of the post office address of each shareholder that shall be furnished to the secretary by such shareholder; (e) sign with the president, or a vice president, certificates for shares of the corporation, the issue of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the stock transfer books of the corporation; and (g) in general perform all duties incident to the office of secretary and such other duties as from time to time may be assigned to the secretary by the president or by the Board of Directors.

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SECTION 9. ASSISTANT TREASURERS AND ASSISTANT SECRETARIES. The assistant treasurers shall respectively, if required by the Board of Directors, give bonds for the faithful discharge of their duties in such sums and with such sureties as the Board of Directors shall determine. The assistant secretaries as thereunto authorized by the Board of Directors may sign with the president or a vice president certificates for shares of the corporation, the issues of which shall have been authorized by a resolution of the Board of Directors. The assistant treasurers and assistant secretaries, in general, shall perform such duties as shall be assigned to them by the treasurer or the secretary, respectively, or by the president or the Board of Directors.

SECTION 10. SALARIES. The salaries of the officers shall be fixed from time to time by the Board of Directors, and no officer shall be prevented from receiving such salary by reason of the fact that the officer is also a director of the corporation.

## ARTICLE V

### CONTRACTS, LOANS, CHECKS, AND DEPOSITS

SECTION 1. CONTRACTS. The Board of Directors may authorize any officer or officers or any agent or agents to enter into any contract or execute and deliver any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances.

SECTION 2. LOANS. No loans shall be contracted on behalf of the corporation and no evidence of indebtedness shall be issued in its name unless authorized by a resolution of the Board of Directors. Such authority may be general or confined to specific instances.

SECTION 3. CHECKS, DRAFTS, ETC. All checks, drafts, or other orders for the payment of money, notes, or other evidences of indebtedness issued in the name of the corporation, shall be signed by such officer or officers or such agent or agents of the corporation and in such manner as shall from time to time be determined by resolution of the Board of Directors.

SECTION 4. DEPOSITS. All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the corporation in such banks, trust companies, or other depositories as the Board of Directors may select.

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# ARTICLE VI

## CERTIFICATES FOR SHARES AND THEIR TRANSFER

**SECTION 1. CERTIFICATES FOR SHARES.** The issued shares of the corporation shall be represented by certificates or shall be uncertificated shares. The certificates shall be in such form as shall be determined by the Board of Directors and shall be numbered and entered in the books of the corporation as they are issued. Each certificate shall exhibit the registered holder's name and the number and class of shares and the designation of any series that it evidences, shall set forth such other statements as may be required by statute, and shall be signed by the chief executive officer or a vice president and by the treasurer or an assistant treasurer or by the secretary or an assistant secretary, any or all of whose signatures may be facsimile if such certificate is countersigned by a transfer agent or registered by a registrar. In case any one (1) or more of the officers who have signed or whose facsimile signatures appear on any such certificate shall cease to be such officer or officers of the corporation, or any officer of the transfer agent or registrar, before such certificate is issued and delivered, it may nonetheless be issued and delivered with the same effect as if such officer or officers had continued in office.

**SECTION 2. LOST CERTIFICATES.** If a certificate representing shares has allegedly been lost or destroyed, the Board of Directors may in its discretion, except as may be required by law, direct that a new certificate be issued upon such indemnification and other reasonable requirements as it may impose.

**SECTION 3. TRANSFERS OF SHARES.** Transfer of shares of the corporation shall be made only on the books of the corporation by the holder or record thereof or by such holder's legal representative, who shall furnish proper evidence of authority to transfer, or by such holder's attorney thereunto authorized by power of attorney duly executed and filed with the secretary of the corporation, and on surrender for cancellation of the certificate for such shares.

# ARTICLE VII

## VOTING OF SECURITIES

The president shall have full authority, in the name and on behalf of the corporation, to attend, act, and vote at any meeting of security holders of any corporation in which the corporation may hold securities, and at any such meeting shall possess and may exercise any and all rights and powers incident to the ownership of such securities and which, as the holder thereof, the corporation might possess and exercise if personally present, and may exercise such power and authority through the execution of proxies or may delegate such power and authority to any other officer, agent, or employee of this corporation.

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# ARTICLE VIII

## INDEMNIFICATION

Each person who at any time is or was a director, officer, employee, or agent of this corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, shall be indemnified by this corporation in accordance with and to the full extent permitted by the Illinois Business Corporation Act of 1983 as in effect at the time of adoption of this Bylaw or as amended from time to time. The foregoing right of indemnification shall not be deemed exclusive of any other rights to which a person seeking indemnification may be entitled under any Bylaw, agreement, vote of shareholders or disinterested directors, or otherwise. If authorized by the Board of Directors, the corporation may purchase and maintain insurance on behalf of any person to the full extent permitted by the Illinois Business Corporation Act of 1983 as in effect at the time of the adoption of this Bylaw or as amended from time to time. If the corporation pays indemnity or makes an advance of expenses to a director, officer, employee, or agent, the corporation shall report the indemnification or advance in writing to the shareholders with or before the notice of the next shareholders meeting.

# ARTICLE IX

## FISCAL YEAR

The fiscal year of the corporation shall begin on the first day of January in each year and end on the last day of December in each year.

# ARTICLE X

## DIVIDENDS

The Board of Directors may from time to time declare, and the corporation may pay, dividends on its outstanding shares in the manner and on the terms and conditions provided by law and the Articles of Incorporation.

# ARTICLE XI

## SEAL

The corporation may have, but shall not be required to have, a corporate seal as shall be determined at the discretion of the secretary of the corporation. If a corporate seal is obtained, the seal shall contain the name of the corporation and the words 'Corporate Seal, Illinois,' and the use thereof shall be determined from time to time by the officer or officers executing and delivering instruments on behalf of the corporation, provided that the affixing of a corporate seal to an instrument shall not give the instrument additional force or effect or change the construction thereof.

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The seal, if any, may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced.

## ARTICLE XII

### WAIVER OF NOTICE

Whenever any notice whatsoever is required to be given under the provisions of these Bylaws or under the provisions of the Articles of Incorporation or under the provisions of the Illinois Business Corporation Act of 1983, a waiver thereof in writing, signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be deemed equivalent to the giving of such notice. Attendance by a person at any meeting shall constitute waiver of notice thereof unless at the meeting such person objects to the holding of the meeting because proper notice was not given.

## ARTICLE XIII

### AMENDMENTS

Unless otherwise provided in the Articles of Incorporation, these Bylaws may be made, altered, amended, or repealed by the shareholders or the board of directors, but no Bylaw adopted by the shareholders may be altered, amended, or repealed by the Board of Directors.

Regan James Thomson, Secretary

MICROBIAL PHARMACEUTICALS, INC.

13

BYLAWS

**Attachment 5:** `pitchdeck.pdf`

# Micro MGX

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

Jack M. Kloeber, CEO
j-kloeber@micromgx.com

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

Anthony Goering, CSO
a-goering@micromgx.com

www.micromgx.com

Harnessing
microbial chemistry
to create more
effective and
sustainable
products

1

# Our Purpose at MicroMGx

We harness microbial chemistry to create more effective and sustainable products

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

![img-3.jpeg](img-3.jpeg)

Penicillin

The first commercial antibiotic

![img-4.jpeg](img-4.jpeg)

Atorvastatin (Lipitor)

Cholesterol-lowering
The all-time best-selling drug

![img-5.jpeg](img-5.jpeg)

Glufosinate (Liberty)

Chemical herbicide
$2B annual sales*

Commercial products

*Glufosinate Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027, published by Research and Markets.

Micro MGX

2

# Problem

![img-6.jpeg](img-6.jpeg)

![img-7.jpeg](img-7.jpeg)

**Classic discovery methods have become obsolete.**

Time: 6-12 months to examine one strain

Cost: Salary for 1-2 scientists

Risk: 80% Rediscovery!

# Solution

![img-8.jpeg](img-8.jpeg)

**One of the only large-scale natural product discovery platform**

Time: **3 months to examine 1000 strains**

Cost: **Same Salary + $250,000 analysis**

Risk: **No rediscovery problem**

Micro MGX

3

# The MGx Platform

We estimate our platform is more than 100x more efficient in finding new natural chemicals

1. Flexible - Works with different microbes
2. Massively parallel
3. No rediscovery

![img-9.jpeg](img-9.jpeg)

Micro MGX

4

# The Product

Our product is an Actionable and Enabling Asset Package

![img-10.jpeg](img-10.jpeg)

UPL, Merck, Corteva, Syngenta, Bayer, Janssen

Micro MGX

5

# Our Business Plan

We are a Discovery and Licensing company

- We License it out
- We match Client & Use
- We patent new Chemical+Use
- We find its value (Use)
- We discover

![img-11.jpeg](img-11.jpeg)

NP Kinect/Cloud-based software

Obtain IP - Baker and Hostetler

Test for different uses/solutions

MGx Platform

Micro MGX

6

# A continuous supply of novel chemistry

Through this pipeline, we plan to create a library of Natural Products

![img-12.jpeg](img-12.jpeg)

Micro MGX

7

# The Market

![img-13.jpeg](img-13.jpeg)

![img-14.jpeg](img-14.jpeg)

## Our Market is B2B licensing to Life Science Companies

![img-15.jpeg](img-15.jpeg)

Global Life Sciences
Licensing & Acquisition

![img-16.jpeg](img-16.jpeg)

Only Small Molecules
and Natural Products

![img-17.jpeg](img-17.jpeg)

Plan to achieve 1%
penetration - 5 years
from investment

* https://clarivate.com/wp-content/uploads/2021/11/JPM-deals-analysis-2019_webinar_FINAL.pdf

Micro MGX

8

# Traction

Science supports our platform foundation - Clients support the need and validate the results.

![img-18.jpeg](img-18.jpeg)

> 500 citations!

7 Peer-Reviewed publications
with new natural products

Fee-for-Service Clients

| 2019 1 Client | 2020 1 Clients | 2021 2 Clients |
| --- | --- | --- |
| $260,000 | $537,000 | $523,000 |

Funds raised to-date

$150,000 SBIR*

![img-19.jpeg](img-19.jpeg)

$400,000 Angel investment

*A Metabologenomics Platform for Large-Scale, High-Throughput Natural Product Discovery, Jan 6, 2017, SBIR from NIH, #R43AT009417

Crop Protection

Corteva

Elanco Animal Health

Clients

Valent

Crop Protection

1st Patented Product:

MGX-1001 - one of the first in a stream of newly discovered herbicides

Micro MGX

9

# The Pipeline Begins

2021 - MGX-1001 is effective against herbicide resistant weeds

![img-20.jpeg](img-20.jpeg)

![img-21.jpeg](img-21.jpeg)

Potential?

Blockbuster

Blockbuster

Mustard
seedlings
(Brassica sp.)

![img-22.jpeg](img-22.jpeg)

Glyphosate-resistant
hairy fleabane

Controls
herbicide-resistant weeds

Micro MGX

10

# Our Leadership Team

## Diverse expertise in a cross-functional organization

### Founders

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

**Neil Kelleher, Director**
Professor of Chemistry at
Northwestern University, Head,
Chemistry for Life Sciences
Institute
**Key Role:**
Mass Spectrometry

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

**William Metcalf,
Chairman**
Professor of Molecular Biology
at the University of Illinois at
Urbana-Champaign.
**Key Role:** Genome Mining

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

**Regan Thomson,
Director**
Professor of Chemistry at
Northwestern University
**Key Role:** Organic Synthesis.

### Management

![img-3.jpeg](img-3.jpeg)

**Jack M. Kloeber, CEO**
Former US Army LTC.
Pharma portfolio management
at J&J, BMS.
Owner of R&D decision analysis
consulting firm, Kromite.

![img-4.jpeg](img-4.jpeg)

**Anthony Goering, CSO**
Co-developed the MGx platform
Expert in methodology for
discovering and characterizing
natural products.

### Investor/ Director

![img-5.jpeg](img-5.jpeg)

**Rajmony Pannu, MD**
Board Certified in Vascular,
Endo Vascular Medicine
Entrepreneur in Healthcare
Board Director for MetroVein
Healthcare Marketing
Angel Investor

### Scientific /Industry Advisors

![img-6.jpeg](img-6.jpeg)

**Richard Baltz, PhD**
Discovered daptomycin, last
antibiotic to reach the market
Past President/ Fellow of SIMB
Widely read author of Natural
Product discovery articles

![img-7.jpeg](img-7.jpeg)

**Alpheus Bingham, PhD**
30 yr career in Eli Lilly R&D.
Founded many innovation start ups
Innocentive Founder/CEO
Consultant to Pharma Co's

![img-8.jpeg](img-8.jpeg)

**Joe Byrum, PhD**
MBA from Univ of Michigan
Thought leader in AI-Data Sci.
20 yr Leader in Monsanto,
Syngenta- Seeds R&D
Financial AI at Principal
Agtech Advisor

Micro MGX

11

# Let's put natural product discovery in order

![img-9.jpeg](img-9.jpeg)

Only a tiny fraction 10's of millions of natural products has been accessed*

![img-10.jpeg](img-10.jpeg)

MicroMGx is building an organized library of microbes and novel molecules ready for testing and licensing

Efficient + Large Scale + BioActive = Affordable + Accessible + Valuable New Chemicals

*Bérdy, J. "Thoughts and facts about antibiotics: where we are now and where we are heading". J. Antibiot. (Tokyo) 65, 385-395 (2012).

Micro MGX

12

![img-11.jpeg](img-11.jpeg)

Contact:

Jack Kloeber CEO
Anthony Goering CSO
www.micromgx.com

j-kloeber@micromgx.com
a-goering@micromgx.com

Harnessing
microbial chemistry
to create more
effective and
sustainable
products

13

**Attachment 6:** `otherfinancial.pdf`

# Record Ownership and Voting Agreement

This Record Ownership and Voting Agreement (this “Agreement”) is entered into as of the date of electronic consent by the parties using the website www.netcapital.com (the “Portal”), by and among NetCapital Funding Portal Inc., a Delaware corporation (“NetCapital”), MG Teixeira Inc, a Connecticut corporation (the “Record Owner”), and the undersigned investor (“Investor”).

The Record Owner has agreed to open and maintain the Account (as defined below) for Investor and to provide other services to Investor in connection with the Account. This Agreement sets out, among other things, the terms under which the Record Owner will provide those services to Investor and the arrangements that will apply in connection with those services.

In consideration of the mutual promises herein made and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

## 1. Interpretation

### 1.1 Definitions

In this Agreement:

- • “Account” means the account opened by the Record Owner and consisting of the beneficial interests in any Shares that were offered for sale by the Issuer on the Portal and purchased by Investor.
- • “Account Balance” means, in relation to the Account, the number of Shares of each Issuer beneficially owned by Investor, including all of Investor’s rights to and interest in the balance from time to time on that Account.
- • “Business Day” means a weekday that is not a federal holiday.
- • “Escrow Agent” means Boston Private Bank and Trust Company.
- • “Fees” means the fees and charges referred to in clause 5.1 of this Agreement.
- • “Issuer” means each issuer of the Shares.
- • “Shares” means the beneficial interests in the uncertificated shares of common stock or preferred stock or the units of convertible debt, limited liability company membership interests or limited partnership interests that were beneficially purchased by Investor on the Portal.
- • “Termination Date” means the date on which this Agreement is terminated by the Record Owner or by Investor as permitted hereunder.
- • “Transfer Agent” means Equity Stock Transfer LLC, or a successor transfer agent.
- • “Withdrawal Date” means the date referred to in clause 2.2 of this Agreement.

### 1.2. Headings

The headings in this Agreement do not affect its interpretation.

### 1.3. Singular and plural

References to the singular include the plural and vice versa.

## 2. Account

### 2.1. Opening Account

The Record Owner shall open and maintain the Account for the beneficial interests in the Shares beneficially held by Investor.

### 2.2. Deposits and withdrawals

The balance of Investor's Account shall reflect the Shares beneficially held by Investor. A deposit of Shares is made into Investor's Account when the Escrow Agent sends payment funds to the Issuer or a seller of Shares, as the case may be, and the Record Owner receives a record from the Transfer Agent of the number of Shares that Investor beneficially holds. A withdrawal occurs when the Record Owner receives notice from the Transfer Agent that the Shares have been beneficially sold or transferred.

### 2.3. Reports

Reports relating to deposits into and withdrawals from the Account and the Account Balance will be available to Investor daily by means of a section on the Portal to which Investor may log in.

## 3. Services of the Record Owner

### 3.1. General

Investor and the Record Owner understand and agree that the Record Owner will be the legal but not the beneficial owner of the Shares.

### 3.2. Ownership of Securities

The Record Owner will be the sole holder of legal title to the Shares while Investor will hold beneficial ownership of the Shares. The Record Owner will be the sole record holder of the Shares on the books and records of the Issuer. The sole dispositive record of Investor's beneficial ownership of the Shares will be in the books and records of the Transfer Agent. Investor shall be entitled to all proceeds of the sale of Shares, net of fees and commissions.

### 3.3. Voting of Securities

Prior to the Withdrawal Date, at every meeting of the equity or interest holders of the Issuer called with respect to any matter, and at every adjournment or postponement thereof, and on every action or approval by written consent or resolution of the equity or interest holders of the Issuer, Investor agrees that the Record Owner shall vote Investor's Shares, in the event Investor's Shares contain voting rights, in a manner reasonably determined to be in the best interest of Investor.

### 3.4. Insurance

The Record Owner and Investor understand and agree that the Record Owner may maintain insurance in support of the Record Owner's obligations under this Agreement, including covering any loss of the Shares. In the event that the Record Owner elects to reduce, cancel or not to renew such insurance, the Record Owner may give Investor prior written notice as follows: in the case of a reduction, the Record Owner may endeavor to provide such notice at least 30 days prior to the effective date of the reduction; and in the event of a cancellation or expiration of the insurance without renewal, the Record Owner may provide such notice at least 30 days prior to the last day of insurance coverage. Investor acknowledges that any such insurance is held for the Record Owner's benefit and not for the benefit of Investor, and that Investor may not submit any claim under the terms of such insurance.

### 3.5. Notice of Changes

The Record Owner may notify Investor promptly in writing of the following: (i) the Record Owner receives notice of any claim against the Account other than a claim for payment of safe custody or administration permitted by this Agreement; (ii) the Record Owner otherwise fails to comply with any of the provisions of this Agreement; or (iii) any of the Record Owner's representations and warranties in clause 4 shall cease to be true and correct.

## 4. Obligations of the Portal

NetCapital shall notify or cause to be notified each Issuer of Shares of the identity of the Record Owner of the Shares of such Issuer.

## 5. Representations and Warranties

### 5.1 Investor's representations

Investor represents and warrants that:

- Investor is the beneficial owner of the Shares;
- Investor has all necessary authority, powers, consents, licenses and authorizations and has taken all necessary action to enable Investor lawfully to enter into and perform Investor's duties and obligations under this Agreement; and
- This Agreement and the obligations created under it are binding upon Investor and enforceable against Investor in accordance with its terms (subject to applicable principles of equity) and do not and will not violate the terms of the

rules or any order, charge or agreement by which Investor is bound.

## 5.2 The Record Owner's representations and warranties

The Record Owner represents and warrants to Investor that:

- this Agreement has been duly authorized, executed and delivered on the Record Owner's behalf and constitutes the Record Owner's legal, valid and binding obligation; and
- the execution, delivery and performance of this Agreement by the Record Owner does not and will not violate any agreement by which the Record Owner is bound.

## 6. Fees and Expenses

### 6.1 Fees

The Record Owner's fees will be paid in accordance with the fee agreement that has been executed by the Portal and the Record Owner. There are no fees payable by the Investor.

## 7. Scope of Responsibility

### 7.1 Exclusion of liability

The Record Owner may use reasonable care in the performance of its duties under this Agreement and will only be responsible for any loss or damage suffered by Investor as a direct result of any gross negligence, fraud or willful misconduct on the Record Owner's part in the performance of the Record Owner's duties, and in which case the Record Owner's liability will not exceed the aggregate market value of the Shares at the time of such gross negligence, fraud or willful misconduct.

### 7.2 Force majeure

Neither the Record Owner nor any of the Record Owner's directors, employees, agents or affiliates shall incur any liability to Investor if, by reason of any provision of any present or future law or regulation of any governmental or regulatory authority or stock exchange, or by reason of any act of God or war or terrorism, pandemic or other circumstances beyond the Record Owner's control, the Record Owner is prevented or forbidden from, or would be subject to any civil or criminal penalty on account of, or are delayed in, doing or performing any act or thing which by the terms of this Agreement it is provided shall be done or performed and accordingly the Record Owner does not do that thing or does that thing at a later time than would otherwise be required.

### 7.3 Exculpation in respect of offering documents

The Record Owner and its officers, directors, employees, agents and sub-record owners, if any, shall not be responsible or liable in any manner for any recitals, statements, representations or warranties made by any person other than the Record Owner including, but not limited to, statements contained in any material relating to

the offering and sale of Shares.

## 8. Termination

### 8.1 Method

The Record Owner may terminate this Agreement by giving not less than 60 Business Days' prior written notice to Investor and the Portal, provided that the Record Owner may terminate this Agreement immediately on written notice in the event that any of the statements set out in clause 4.1(a)-(c) become untrue. Clauses 6, 7.2 and 9 shall survive termination of this Agreement.

Investor may terminate this Agreement by giving not less than 60 Business Days' prior written notice to the Record Owner and the Portal in the event that the Record Owner is found, in a final determination not subject to appeal, to have committed an act of gross negligence or willful misconduct in respect of its duties as Record Owner hereunder.

### 8.2 Existing rights

Termination shall not affect rights and obligations then outstanding under this Agreement, which shall continue to be governed by this Agreement until all obligations have been fully performed.

### 8.3 Website

Effective upon the Termination Date, Investor's use of the Website will automatically be terminated and Investor will be permitted no further access to the Website until Investor has purchased other Shares.

## 9. Notices and Recordkeeping

### 9.1 Form

A notice or other communication given to Investor under or in connection with this Agreement may be given using the contact information Investor provided to the Portal.

### 9.2 Method of transmission

Any notice or other communication required to be in writing may be delivered by email, receipt confirmed, to the Portal or the Record Owner at the following email addresses:

If to the Record Owner:

MG Teixeira Inc
mannyteixeria@gmail.com

If to the Portal:

Netcapital Funding Portal Inc

## 10. General

### 10.1 No advice

The Record Owner’s duties and obligations under this Agreement do not include providing Investor with investment advice. In asking the Record Owner to open and maintain the Account, Investor does so in reliance upon Investor’s own judgment and the Record Owner shall not owe to Investor any duty to exercise any judgment on Investor’s behalf as to the merits or suitability of any deposits into, or withdrawals from, an Account.

### 10.2 Assignment

This Agreement is for the benefit of and binding upon the parties and their respective heirs, successors and assigns. Investor may not assign, transfer or encumber, or purport to assign, transfer or encumber, Investor’s right, title or interest in relation to any Account or any right or obligation under this Agreement or any part of any of the foregoing unless the Record Owner otherwise agrees in writing.

### 10.3 Amendments

Any amendment to this Agreement must be agreed in writing and be signed by all parties hereto. Unless otherwise agreed, an amendment will not affect any legal rights or obligations that may already have arisen.

### 10.4 Partial invalidity

If any of the clauses (or part of a clause) of this Agreement becomes invalid or unenforceable in any way, the validity of the remaining clauses (or part of a clause) will not in any way be affected or impaired.

### 10.5 Entire agreement

This document represents the entire agreement of the parties, and supersedes any previous agreements and understandings among the parties relating to the subject matter of this Agreement.

### 10.6 Joint and several liability

Investor’s responsibilities under this Agreement are joint and several if applicable.

### 10.7 Counterparts

This Agreement may be executed in any number of counterparts each of which when

executed and delivered is an original, but all the counterparts together constitute the same agreement.

### 10.8 Governing Law and Jurisdiction

This Agreement is governed by and construed in accordance with the laws of the State of Delaware without regard to its conflicts of laws principles. The parties agree that the United States District Court for the Delaware shall have sole and exclusive jurisdiction to determine any issues arising under this Agreement, and all Parties to this Agreement agree to submit to personal jurisdiction in Wilmington, Delaware, for the purpose of resolving any issue arising under or related to this Agreement.

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

## FORM C

### UNDER THE SECURITIES ACT OF 1933

### Issuer Information

**Name of Issuer:** MicroMGx, Inc.

**Legal Status:** Corporation

**Jurisdiction of Incorporation/Organization:** DE

**Date of Organization:** 07-20-2015

**Physical Address:** 3440 S Dearborn St., Chicago, IL, 60616

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

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

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

**Intermediary CIK:** 0001669191

**Intermediary File Number:** 007-00035

**Intermediary CRD Number:** 283596

### Offering Information

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

**Financial Interest in Issuer:** None.

**Type of Security Offered:** Common Stock

**Number of Securities Offered:** 4220

**Price per Security:** $2.37

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

**Target Offering Amount:** $10,001.40

**Oversubscription Accepted:** Yes

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

**Maximum Offering Amount:** $1,069,998.12

**Deadline to Reach Target Amount:** 04-14-2023

### Annual Report Disclosure Requirements

**Current Number of Employees:** 5

**Total Assets (Most Recent Fiscal Year):** $208,505.00

**Total Assets (Prior Fiscal Year):** $221,539.00

**Cash & Cash Equivalents (Most Recent Fiscal Year):** $85,011.00

**Cash & Cash Equivalents (Prior Fiscal Year):** $203,237.00

**Accounts Receivable (Most Recent Fiscal Year):** $0.00

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

**Short-Term Debt (Most Recent Fiscal Year):** $86,000.00

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

**Long-Term Debt (Most Recent Fiscal Year):** $160,300.00

**Long-Term Debt (Prior Fiscal Year):** $117,200.00

**Revenues/Sales (Most Recent Fiscal Year):** $523,700.00

**Revenues/Sales (Prior Fiscal Year):** $537,000.00

**Cost of Goods Sold (Most Recent Fiscal Year):** $731,195.00

**Cost of Goods Sold (Prior Fiscal Year):** $724,353.00

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

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

**Net Income (Most Recent Fiscal Year):** $-134,068.00

**Net Income (Prior Fiscal Year):** $-269,672.00

**Jurisdictions Offered:**

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

### Signatures

**Issuer:** MicroMGx, Inc.

**Signature:** Jack Kloeber

**Title:** Principal Executive Officer

---

**Signature:** Jack Kloeber

**Title:** Principal Executive Officer

**Date:** 03-30-2023

---

**Signature:** Jack Kloeber

**Title:** Principal Financial Officer

**Date:** 03-30-2023

---

**Signature:** Jack Kloeber

**Title:** Principal Accounting Officer

**Date:** 03-30-2023

---

**Signature:** Rajmony Pannu

**Title:** Board Member

**Date:** 03-30-2023

---

**Signature:** Neil  Kelleher

**Title:** Board Member

**Date:** 03-30-2023

---

**Signature:** William  Metcalf

**Title:** Board Member

**Date:** 03-30-2023

---

**Signature:** Regan Thomson

**Title:** Board Member

**Date:** 03-30-2023