# EDGAR Filing Document

**Accession Number:** 0001589361
**File Stem:** 0001493152-23-009512
**Filing Date:** 2023-3
**Character Count:** 1148553
**Document Hash:** 3575988a28b5aaca1757732c48d87374
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-009512.hdr.sgml**: 20230329

**ACCESSION NUMBER**: 0001493152-23-009512

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 134

**FILED AS OF DATE**: 20230329

**DATE AS OF CHANGE**: 20230329

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** White River Energy Corp.
- **CENTRAL INDEX KEY:** 0001589361
- **STANDARD INDUSTRIAL CLASSIFICATION:** TRANSPORTATION SERVICES [4700]
- **IRS NUMBER:** 453797537
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-268707
- **FILM NUMBER:** 23776028

**BUSINESS ADDRESS:**
- **STREET 1:** 609 W/ DICKSON ST., SUITE 102 G
- **CITY:** FAYETTEVILLE
- **STATE:** AR
- **ZIP:** 72701
- **BUSINESS PHONE:** (800) 203-5610

**MAIL ADDRESS:**
- **STREET 1:** 609 W/ DICKSON ST., SUITE 102 G
- **CITY:** FAYETTEVILLE
- **STATE:** AR
- **ZIP:** 72701

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Fortium Holdings Corp.
- **DATE OF NAME CHANGE:** 20210519

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Banner Energy Services Corp.
- **DATE OF NAME CHANGE:** 20200218

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** MTB Corp.
- **DATE OF NAME CHANGE:** 20191205

?xml version='1.0' encoding='ASCII'?

**As filed with the Securities and Exchange Commission on March 29, 2023**

**Registration No. 333-268707**

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

**Amendment No. 4** **to**

**FORM S-1** **REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

**White River Energy Corp** *(Exact name of Registrant as specified in its charter)*

---

| | | |
|:---|:---|:---|
| **Nevada** | **1311** | **45-3797537** |
| *(State or other jurisdiction of <br> incorporation or organization)* | *(Primary Standard Industrial <br> Classification Code Number)* | *(I.R.S. Employer <br> Identification Number)* |

---

**609 W/ Dickson St., Suite 102 G**

**Fayetteville** **, AR, 72701 (800) 203-5610** *(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)*

**Jay Puchir Chief Executive Officer White River Energy Corp 609 W/ Dickson St., Suite 102 G**

**Fayetteville** **, AR, 72701 (800) 203-5610** *(Name, address, including zip code, and telephone number, including area code, of agent for service)*

 ****

***Copies to:***

**Michael Harris, Esq. Constantine Christakis, Esq. Nason, Yeager, Gerson, Harris & Fumero, P.A. 3001 PGA Boulevard, Suite 305 Palm Beach Gardens, Florida 33410 (561) 686-3307**

**Approximate date of commencement of proposed sale to the public:** As soon as practicable after the effective date of this registration statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act of 1933, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act of 1934.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

**The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, or until the Registration Statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to Section 8(a), may determine.**

**The information in this prospectus is not complete and may be changed. The selling stockholders may not sell these securities until the registration statement filed with the Securities and Exchange Commission is declared effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED March 29, 2023**

**WHITE RIVER ENERGY CORP**

**PROSPECTUS**

**56,525,044** **Shares of Common stock**

**9,513,682** **Warrants to Purchase Shares of Common Stock**

This Prospectus relates to the distribution (the "Spin-Off") by Ecoark Holdings, Inc., now known as BitNile Metaverse, Inc. ("Ecoark") of 42,253,521 shares of common stock, par value $0.0001 per share (the "Spin-Off Shares") of White River Energy Corp ("White River," the "Company," "we," "our," or "us"), a Nevada corporation, to the holders of Ecoark common stock and convertible preferred stock (on an as-converted basis). We are also registering the issuance of up to an additional 1,000 shares of common stock to account for the rounding up of fractional shares that would otherwise be distributable to the Ecoark record holders as Spin-Off Shares ("Fractional Shares"), and unless expressly noted or the context clearly dictates otherwise, the up to 1,000 Fractional Shares are also included in references to "Spin-Off Shares" in this Prospectus. This Prospectus also relates to the offering and resale by the selling stockholders identified herein (the "Selling Stockholders") of up to 14,270,523 shares of the common stock of White River (the "PIPE Shares") and up to 9,513,682 warrants to purchase shares of common stock of White River (the "Warrants," and together with the PIPE Shares, collectively, the "PIPE Securities"), which consists of shares of common stock issuable upon conversion of 190.2726308 outstanding shares of the Company's Series C Convertible Preferred Stock (the "Series C") and exercise of Warrants representing 200% warrant coverage issued in private placement transactions that commenced in October 2022 and terminated in November 2022 in a private investment in public equity offering by the Company (the "PIPE Offering"). The PIPE Shares and the Spin-Off Shares, are collectively referred to as the "Shares," and together with the Warrants, the securities being offered hereby are collectively referred to as the "Securities." The above number of PIPE Securities assumes that 80% of the 30-day VWAP (as defined in the Series C Certificate of Designation) of the Company's common stock for the period ending 10 trading days prior to effectiveness of the Registration Statement of which this Prospectus is a part is at least $1.00. If that number is lower, the number of PIPE Securities will be higher. See "The Private Placement" and "Selling Stockholders" for more information.

The Company is not selling any securities in this offering, and therefore will not receive any proceeds from the distribution of Spin-Off Shares by Ecoark and the sale of the PIPE Securities by the Selling Stockholders. However, we will receive gross proceeds upon the exercise of the Warrants if exercised for cash.

Spin-Off

The Spin-Off Shares of our common stock will be distributed to Ecoark holders of common stock and convertible preferred stock as of the record date of September 30, 2022 (the "Record Date"), on an as-converted basis for the preferred stock, meaning the holder of Ecoark's outstanding convertible preferred stock as of the Record Date will also receive shares of White River common stock as if the shares of Ecoark common stock underlying their preferred stock were issued and outstanding (subject to beneficial ownership limitations) calculated as of the Record Date. As of the Record Date, there were 28,176,055 shares of Ecoark common stock outstanding and 4,438,096 shares of Ecoark common stock were issuable upon conversion of the convertible preferred stock, although the latter amount disregards the beneficial ownership limitations. No fractional shares of our common stock will be issued in the Spin-Off, and any fractional share of our common stock in the Spin-Off will be rounded up to the nearest whole share. We have agreed to issue Ecoark Fractional Shares to account for this rounding approach.

PIPE Securities

After the Spin-Off takes place, the Selling Stockholders may sell the PIPE Securities described in this Prospectus in a number of different ways and at varying prices. The prices at which the Selling Stockholders may sell the PIPE Securities in this offering will be determined by the prevailing market price for the shares of our common stock or in negotiated transactions. See "Plan of Distribution" for more information about how the Selling Stockholders may sell the Securities being registered pursuant to this Prospectus. Each Selling Stockholder may be deemed an "underwriter" within the meaning of Section 2(a)(11) of the Securities Act of 1933 (the "Securities Act"). The Selling Stockholders have informed us that they do not currently have any agreement or understanding, directly or indirectly, with any person to distribute the PIPE Securities. The Selling Stockholders will not receive their PIPE Securities until after the Spin-Off has taken place.

We have agreed to pay the expenses of the registration of the shares of our common stock offered and sold under the Registration Statement under the Spin-Off and by the Selling Stockholders. Each Selling Stockholder will pay any commissions and applicable to the Securities it sells.

Our common stock issued is traded on the OTCQB under the symbol "WTRV." Our Warrants are expected to trade on the OTCQB under the symbol "WTRVW." On March 22, 2023, the last reported sale price of our common stock on the OTCQB was $1.00. Our common stock has not traded since that date.

**Investing in our securities involves various risks. See "Risk Factors" beginning on page 4 of this Prospectus for a discussion of information that should be considered in connection with an investment in our securities.**

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this Prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

The date of this Prospectus is _________ ___, 2023

**Table of Contents**

---

| | |
|:---|:---|
|  | **Page** |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#m_001) | ii |
| [PROSPECTUS SUMMARY](#m_002) | 1 |
| [THE OFFERINGS](#m_003) | 2 |
| [RISK FACTORS](#m_004) | 4 |
| [USE OF PROCEEDS](#m_005) | 27 |
| [DIVIDEND POLICY](#m_006) | 27 |
| [DETERMINATION OF OFFERING PRICE](#m_007) | 28 |
| [CAPITALIZATION](#m_008) | 28 |
| [UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](#m_009) | 29 |
| [SPIN-OFF](#ps_001) | 35 |
| [THE PRIVATE PLACEMENT](#ps_002) | 43 |
| [SELLING STOCKHOLDERS](#ps_003) | 44 |
| [PLAN OF DISTRIBUTION](#ps_004) | 46 |
| [BUSINESS](#m_010) | 48 |
| [PROPERTIES](#a_000000001) | 57 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ps_005) | 61 |
| [MANAGEMENT](#A_003) | 71 |
| [CORPORATE GOVERNANCE](#A_002) | 73 |
| [EXECUTIVE COMPENSATION](#ao_001) | 75 |
| [MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS](#ao_002) | 79 |
| [RELATED PARTY TRANSACTIONS](#ao_003) | 80 |
| [PRINCIPAL STOCKHOLDERS](#ao_004) | 81 |
| [DESCRIPTION OF OUR SECURITIES](#ao_005) | 83 |
| [LEGAL MATTERS](#ao_006) | 87 |
| [EXPERTS](#ao_007) | 87 |
| [WHERE YOU CAN FIND MORE INFORMATION](#ao_008) | 87 |
| [WHITE RIVER ENERGY CORP AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS](#jhgj_002) | F-1 |

---

**You should rely only on information contained in this Prospectus. We have not authorized anyone to provide you with information that is different from that contained in this Prospectus. The Selling Stockholders are not offering to sell or seeking offers to buy securities in jurisdictions where offers and sales are not permitted. We are responsible for updating this Prospectus to ensure that all material information is included and will update this Prospectus to the extent required by law.**

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Prospectus contains, in addition to historical information, certain forward-looking statements, that includes information relating to future events, future financial performance, strategies, business opportunities, expectations including our goals and projections with respect to the planned Spin-Off by Ecoark of our common stock issuable upon conversion of its preferred stock, the expected results from and trends and developments in our oil and gas drilling and related activities, future plans for and anticipated transactions and relationships with respect to our oil and gas portfolio and operations and potential acquisition of a broker-dealer, our working capital needs, potential financings through the sale of our common stock or other securities, the subsequent use and sufficiency of the proceeds from any capital raising methods we may undertake to fund our operations, our further development and implementation of our business plan and our ability to locate sources of capital necessary to meet our business needs and objectives. Such forward-looking statements include those that express plans, anticipation, intent, contingency, goals, targets or future development and/or otherwise are not statements of historical fact. These forward-looking statements are based on our current expectations and projections about future events and they are subject to risks and uncertainties known and unknown that could cause actual results and developments to differ materially from those expressed or implied in such statements.

In some cases, you can identify forward-looking statements by terminology, such as "may," "should," "would," "expect," "intend," "anticipate," "believe," "estimate," "continue," "plan," "potential" and similar expressions. Accordingly, these statements involve estimates, assumptions and uncertainties that could cause actual results to differ materially from those expressed in them. Any forward-looking statements are qualified in their entirety by reference to the factors discussed throughout this Prospectus or incorporated herein by reference.

You should read this Prospectus and the documents we have filed as exhibits to the Registration Statement, of which this Prospectus is part, completely and with the understanding that our actual future results may be materially different from what we expect. You should not assume that the information contained in this Prospectus or any prospectus supplement is accurate as of any date other than the date on the front cover of those documents.

Risks, uncertainties and other factors that may cause our actual results, performance or achievements to be different from those expressed or implied in our written or oral forward-looking statements may be found in this Prospectus under the heading "Risk Factors."

Forward-looking statements speak only as of the date they are made. You should not put undue reliance on any forward-looking statements. We assume no obligation to update forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information, except to the extent required by applicable securities laws. If we do update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. New factors emerge from time to time, and it is not possible for us to predict which factors will arise. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We qualify all of the information presented in this Prospectus particularly our forward-looking statements, by these cautionary statements.

ii

**PROSPECTUS SUMMARY**

**Our Business**

Overview

White River is a holding company which beginning in late July 2022 operates in the oil and gas exploration and drilling industry through White River Holdings Corp. ("White River Holdings"). Prior to the White River Holdings acquisition, the Company was formerly in the early stages of operations in the online sporting goods space, and was planning to operate as a retail distributor of cannabis products in California. In September 2022, the Company sold each of these entities to focus exclusively on its core business in the energy sector through its oil and gas operations.

White River Acquisition

On July 25, 2022, the Company acquired White River Holdings from Ecoark in exchange for 1,200 shares of the Company's newly designated Series A Convertible Preferred Stock (the "Series A"). Subject to certain terms and conditions set forth in the Certificate of Designation of the Series A, the Series A will become convertible into 42,253,521 shares of the Company's common stock upon such time as (A) the Registration Statement on Form S-1, of which this Prospectus forms a part, has been declared effective, and (B) Ecoark elects to distribute the underlying shares of the Company's common stock to Ecoark's stockholders. The Series A has a stated value of $30 million and has a liquidation preference over the common stock and any subsequent series of junior preferred stock equal to the stated value, plus any accrued but unpaid dividends. Following the acquisition, the Company's business focus has been on maintaining and growing its revenue generating capabilities in the oil and gas production space through White River.

PIPE Offering

From October 19, 2022 through November 8, 2022, the Company entered into a Securities Purchase Agreement ("SPA") pursuant to which the Company sold 190.2726308 Units to 122 accredited investors, with each Unit consisting of one share of Series C and five-year Warrants to purchase up to 200% of the shares of common stock issuable upon conversion of the Series C, at a purchase price of $25,000 per Unit for a total purchase price of $4,756,816 in the PIPE Offering. The net proceeds from the PIPE Offering, after offering expenses and related costs, have been and/or will be used for working capital and general corporate purposes including oil and gas drilling on the Company's working interests in Louisiana and Mississippi. The shares of the Series C are expected to be converted upon the effective registration of the Registration Statement which includes this Prospectus.

The shares of the Company's common stock underlying the securities issued to Ecoark in the White River Holdings acquisition and to the Selling Stockholders in the PIPE Offering are being registered under the Registration Statement of which this Prospectus forms a part.

Principal Operations

Following the White River acquisition described above, our principal operations consist of generating revenue through oil and gas exploration, drilling and production. Through White River the Company is now engaged in oil and gas exploration, drilling, production, and operations on over 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi. We may also expand our energy asset portfolio or engage in other energy-related strategic transactions as they arise, provided we have sufficient capital and market and regulatory conditions otherwise enable favorable to such transactions. Such transactions may serve a number of business objectives, including by seeking to expand our product and service offerings and/or to increase our geographic footprint.

Planned Acquisition of a Broker-Dealer

We also plan to acquire a licensed broker-dealer for the purpose of enabling the Company to create and sell interests in oil and gas funds to assist the Company in continuing its oil and gas exploration and drilling activities. In the furtherance of this goal, we have entered into a Membership Interest Purchase Agreement to acquire Commenda Securities LLC, a licensed broker-dealer which is registered with the Securities and Exchange Commission (the "SEC"), for $70,000 plus certain other items not to exceed $50,000. We have applied to the Financial Industry Regulatory Authority ("FINRA") which must approve the change of control of the broker-dealer. In March 2023 we sold additional Units to raise capital that will be required for regulatory purposes in order to close the acquisition. However, no assurance can be given that our change of control of the broker-dealer will be approved, or that any such acquisition will be successful. If we are unable to acquire a broker-dealer, our plans with respect to these oil and gas funds could be limited or restricted.

**THE OFFERINGS**

---

| | |
|:---|:---|
| **Issuer** | White River Energy Corp, a Nevada corporation |
| **Spin-Off by Ecoark** | 42,253,521 shares of White River common stock to be issued to Ecoark upon conversion of the Series A held by Ecoark and subsequently distributed by Ecoark to Ecoark's stockholders on an as-converted basis as to the Ecoark convertible preferred stock, comprised of 36,503,711 Spin-Off Shares to be issued to holders of outstanding Ecoark common stock and up to 5,749,810 Spin-Off Shares to be issued to holders of outstanding Ecoark convertible preferred stock, which does not give effect to beneficial ownership limitations. These amounts are based on the total number of Spin-Off Shares divided by the 32,614,151 shares of Ecoark common stock outstanding and underlying the outstanding Ecoark convertible preferred stock (without taking into account the beneficial ownership limitations in the Ecoark preferred stock) as of the Record Date, which results in a Spin-Off ratio of 1.295557900618 White River Spin-Off Shares per Ecoark share of common stock. We may also issue up to 1,000 Fractional Shares as described elsewhere in this Prospectus. |
| **Securities offered by the Selling Stockholders** | 14,270,523 shares of our common stock, which we refer to herein as "PIPE Shares," comprised of (i) up to 4,756,841 shares of common stock issuable upon conversion of the Series C, and (ii) up to 9,513,682 shares of common stock issuable upon exercise of the Warrants. There are also up to 9,513,682 Warrants which may be separately sold by the Selling Stockholders rather than exercised, which together with the PIPE Shares are referred to herein as the "PIPE Securities." As more particularly described under "The Private Placement," the number of PIPE Securities may increase if 80% of the 30-day VWAP for the period ending on the 10<sup>th</sup> trading day preceding the effectiveness date is less than $1.00 (the "PIPE Securities Formula"). See also "Selling Stockholders." |
| **Total common stock outstanding after these offerings** | 66,690,711 shares of common stock; assuming all of the Shares offered in this offering are issued including the Spin-Off Shares and the PIPE Shares issuable upon conversion of the Series C and exercise of the Warrants, and further assuming the PIPE Securities Formula equates to $1.00. This amount does not include 17,425,000 restricted stock units ("RSUs") issued to the Company's directors, officers, employees and advisors, which are subject to vesting conditions, as more particularly described under "Executive Compensation." |
| **Use of Proceeds** | We will not receive any proceeds from the sale of the Securities covered by this Prospectus. However, we will receive gross proceeds upon the exercise of the Warrants if exercised for cash. See "Use of Proceeds." |
| **Risk Factors** | Investing in our securities involves a high degree of risk. For a discussion of factors to consider before deciding to invest in our securities, you should carefully review and consider the "Risk Factors" beginning on page 4 of this Prospectus. |

---

**<u>Summary Risk Factors</u>**

Our business is subject to numerous risks and uncertainties that you should consider before investing in our common stock. Set forth below is a summary of the principal risks we face:

● In our oil and gas operations, we have incurred losses since inception, we may continue to incur losses and negative cash flows in the future.

● Conflicts of interest may arise, including rights granted to our Chief Executive Officer and Executive Chairman under their Employment Agreements, the Company's involvement in a new oil and gas drilling fund we sponsored, and other ventures our management and directors are or may become involved with separate from the Company.

● We have a limited operating history, which makes it difficult to forecast our future results, making any investment in us highly speculative.

● We may be required to recognize goodwill impairment charges, which could have a material adverse impact on our operating results.

● We may be required to record significant non-cash impairment charges related to a reduction in the carrying value of our proved oil and gas properties.

● Our future cash flows and results of operations, are highly dependent on our ability to efficiently develop our current oil reserves and economically find or acquire additional recoverable reserves, as well as the prices of oil and gas which are subject to volatility.

● Future approval by the SEC of its climate change rules and continued focus on environmental, social and governance ("ESG") regulation and sustainability initiatives, which would have the effect of reducing demand for fossil fuels and negatively impact our operating results, stock price and ability to access capital markets.

● We are focused exclusively on oil and gas operations with our initial portfolio located in only two states, and the lack of diversification exposes us and our investors to risk.

● We face intense competition in the energy industry, much of which comes from larger competitors with longer operating histories, greater access to capital and human resources and vertically integrated operations, as well as smaller market participants which can more easily adjust to market conditions and trends.

● We face risks related to our need for adequate insurance coverage and the possibility for uninsured or underinsured losses.

● Because of the Russian invasion of Ukraine, high inflation and increased Federal Reserve interest rates in response, we may have to deal with a recessionary economy which will reduce demand for our product.

● Our future success depends on our ability to retain and attract high-quality personnel, and the efforts, abilities and continued service of our senior management.

● We may struggle to manage our growth effectively, and as a result our business may be harmed.

● Part of our business plan presently closing our acquisition of a broker-dealer to allow us to engage in fundraising efforts using multiple oil and gas funds over the next 10 years, and we may face challenges in this endeavor, including the high expenses and uncertainty in the acquisition process, exposure to liability through the acquired business, and regulatory burdens and related costs of compliance.

● Certain of our activities or holdings, directly or through subsidiaries and other entities with which we do business, may subject us to federal or state regulation relating to investment companies and investment advisers.

● Our common stock is currently a "penny stock" which trades on a limited basis on OTCQB, and due to factors beyond our control our stock price may be volatile.

● Trading in our common stock is limited, and future sales of our common stock may depress our stock price.

● Future issuances of our common stock, which we may effect to raise capital or for other reasons, would likely dilute the interests of our existing stockholders or have other adverse consequences.

**RISK FACTORS**

Investing in our common stock involves a high degree of risk. Investors should carefully consider the following Risk Factors before deciding whether to invest in the Company. Additional risks and uncertainties not presently known to us, or that we currently deem immaterial, may also impair our business operations or our financial condition. If any of the events discussed in the Risk Factors below occur, our business, consolidated financial condition, results of operations or prospects could be materially and adversely affected. In such case, the value and marketability of the common stock could decline.

**<u>Risks Relating to Our Financial Condition</u>**

**Because we have a limited operating history as a standalone oil and gas company, we cannot predict our future results.**

White River's oil and gas operations were operated under Ecoark as a portion of a larger public holding company with greater diversification and access to capital. Given our limited operating history as a standalone entity, it may be difficult to evaluate our future performance or prospects. You should consider the uncertainties that we may encounter as a company that should still be considered an early-stage oil and gas company. These uncertainties include:

● the effect of the Biden Administrations' attempts to eliminate fossil fuels;

● the impact from the SEC's climate change rules;

● the price of oil;

● our ability to protect our oil and gas assets, including complying with mineral leases;

● our ability to locate and procure employees, contractors and third party service providers to assist us in our operations;

● our ability to adapt to changing market conditions and manage our planned growth effectively; and

● our evolving business model.

If we are not able to address successfully some or all of these uncertainties, we may not be able to expand our business, compete effectively or achieve profitability.

**We had incurred net losses on an annual basis since our inception and may continue to experience losses and negative cash flow in the future.**

As of March 28, 2023, we had cash (not including restricted cash) of approximately $429,534. We have not been profitable on an annual basis since inception and had previously incurred significant operating losses and negative cash flow from operations. We recorded a net loss of approximately $6,922,753 and $9,756,222 for the fiscal years ended March 31, 2022 ("FY 2022") and 2021 ("FY 2021"). We may continue to incur losses and experience negative cash flows from operations for the foreseeable future. If we cannot achieve positive cash flow from operations or net income, we may need to raise additional capital on acceptable terms.

**Because we may require additional capital to fund our business objectives and support our growth, our inability to generate and obtain such capital could harm our business, operating results, financial condition and prospects**.

Over the past two years, White River Holdings, increased its operating expenses in supporting its business of oil and gas exploration and drilling and consummating acquisitions of oil and gas properties. We intend to continue to make substantial investments to fund our business and support our growth. Although we recently raised $4,756,816 in a private placement, we may desire to increase our drilling activity or acquire additional oil and gas properties. In addition, White River E&P Management 1 LLC (the "Manager"), a subsidiary of the Company, is seeking to raise capital for a large oil and gas drilling fund (the "Fund") in which the Manager is the managing general partner.

If we are unable to obtain adequate financing, our ability to continue to support our business growth and to respond to business challenges could be significantly impaired, and our business may be adversely impacted. In addition, our inability to generate or obtain the financial resources needed may require us to delay, scale back, or eliminate some or all of our operations and business objectives and sell some of our assets.

Further, if we (as contrasted to the drilling Fund discussed in this Prospectus) raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity or debt securities we issue could have rights, preferences and privileges superior to those of holders of our common stock.

**Our ability to access capital markets could be limited.**

From time-to-time, we may need to access capital markets to obtain long-term and short-term financing. However, our ability to access capital markets could be limited or adversely affected by, among other things, oil and gas prices, interest rates, our asset base, our track record in the industry, and the health or market perceptions of the drilling and overall oil and gas industry and the global economy. In addition, many of the factors that affect our ability to access capital markets, including the liquidity of the overall capital markets in general and the lack of liquidity for our common stock and the state of the economy and/or the oil and gas industry, among others, are outside of our control. There have also been efforts in recent years aimed at the investment community, including leading investment advisors, sovereign wealth funds, public pension funds, universities and other groups, promoting the divestment of fossil fuel equities as well as pressuring lenders and other financial services companies to limit or curtail activities with companies engaged in the extraction of fossil fuel reserves, which, if successful, could limit our ability to access capital markets. No assurance can be given that we will be able to access capital markets on terms acceptable to us when required to do so, which could adversely affect our business, financial condition and results of operations.

**Since the Company's Executive Chairman and Chief Executive Officer are involved in other oil and gas ventures, and received certain interests and rights in our oil and gas drilling and production efforts pursuant to their employment agreements, conflicts of interest may arise.**

Each of Randy May, the Company's Executive Chairman, and Jay Puchir, the Company's Chief Executive Officer, are involved with the Fund in which they are the managers of a Company subsidiary, which is the managing general partner of a Fund formed to invest in various oil and gas exploration and production ventures. The Company will act as the driller for the Fund and expects to receive management fees. While the Company's management believes working with the Fund will benefit the Company, the Company and the Fund may compete with each other in drilling opportunities which creates a conflict of interest. To the extent that we have capital available to invest in drilling for our own account and the Fund participates either with us, or separately, to the extent that a well is successful, this conflict can adversely affect us. At the same time, we benefit if the well is not successful.

Additionally, pursuant to their respective Employment Agreements, each of Messrs. May and Puchir were granted a 5% overriding royalty interest (the "ORI") from the Company and its subsidiaries in any and all successfully drilled and completed oil and/or gas wells, as well as participation right of 15% and 10%, respectively, in the funding and ownership interest in any drilling or participation by the Company or any subsidiary in the drilling by a third party of an oil and gas well, which does not include the Fund but will include any other investment funds the Company sponsors. The initial terms of their Employment Agreements are five years, subject in each case to renewal. While these arrangements are intended to directly align these officers' incentives with the Company's oil and gas exploration, drilling and production efforts by compensating them for the success of such ventures, they also directly divert any revenue generated by these ventures to these officers and away from the Company, which may be adverse to the Company and its stockholders. For example, a well that could have been profitable, or our operations as a whole, may not be profitable where it otherwise would have been as a result of the ORI. Messrs. May and Puchir also have personal oil and gas investments which may also compete with the Company. These conflicts of interest may adversely affect our operations and financial condition, divert management's time and attention away from running our primary business and result in our management to providing business opportunities to the Fund instead of the Company, any of which could materially adversely affect us.

Further, because each of Messrs. May and Puchir are also executive officers of Ecoark, they divert their limited time and attention to both entities and their respective businesses, and as a result conflicts of interest may arise that could be materially adverse to us.

Any of these or other endeavors that those involved in our operations chooses to pursue could materially harm our operations and ability to execute our business plan.

**Because we have agreed with the Fund that we will redeem all of its partners in five years, we may not have the capital to meet this obligation.**

In order to attract investors to the Fund, we agreed to redeem all of its partners (other than our subsidiary which is the managing general partner) five years after it terminates its offering which will be not later than but possibly earlier than June 30, 2023. The Fund is seeking to raise up to $200 million, and as of the date of this Prospectus has raised $3,250,000. The redemption will be based upon a 20% discount to an industry formula. We cannot predict what our financial condition or oil and drilling business will be on the redemption date, including whether we will have sufficient cash to meet our obligations. Because we have committed to the redemptions, we are subject to the further risk that after making such payments, we will be unable to fund our ongoing operations or other capital commitments. While management intends to monitor our financial condition with a view to maintaining sufficient cash available for the redemption, no assurance can be given that we will be successful in obtaining and reserving the necessary capital from operational sources of revenue such as oil and gas drilling and production. In such an event, we would be forced to raise capital from one or more debt or equity financings to enable us to make the redemption payments, which financings could be extremely dilutive, require us to pay high interest rates, dividends or other unfavorable financial terms, impose substantial restrictions on our operations or corporate governance, and contain other terms that are adverse to us and/or our other investors.. If we fail to meet our redemption obligation, we may cease operations.

**Because we have not entered into a Transition Services Agreement with Ecoark, we may encounter certain risks which could result in damages to us.**

Often in spin-offs, the company distributing the dividend or the parent and the company being spun-off enter into a Transition Services Agreement outlining the rights and responsibilities between the parties and providing for payment to cover services usually rendered by the parent company. Because we operate independently of Ecoark and have control of all of our assets, we did not think we needed any agreement which would the parties' respective rights and obligations following the spin-off. However, if we are incorrect in this conclusion, we could encounter difficulty in proving our ownership of title to any assets or face liabilities to third parties for acts committed by Ecoark prior to the distribution. Once control of Ecoark changes, we may not be able to prove our title or we may to defend an asserted liability. If incur legal fees in seeking to prove title or lose control of any assets or if we are found liable for actions that were predominately due to Ecoark's actions, we may be required to sue Ecoark since we have no contractual indemnification rights. Any costs or damages may be material and we cannot assure you we will be able to collect from Ecoark even if we are successful.

**<u>Risks Relating to Our Oil and Gas Exploration and Production Operations</u>**

**We have significant ongoing capital requirements that could affect our operations if we are unable to generate sufficient cash from operations or obtain financing on favorable terms.**

The Company's drilling plan entails extracting oil reserves across its over 30,000 acres of shallow and deep drilling rights. The Company recently bought a deep drilling rig to further vertically integrate its operations. However, with historically high oil prices, ancillary services related to drilling and producing oil wells have risen significantly. The Company is largely vertically integrated, since its exploration and drilling activities are primarily conducted in-house except for (i) wire line services to obtain exploratory data, (ii) concrete procurement and installation at well sites, and (iii) seismic and geophysical services.

We expect to pay for projected capital expenditures related to exploring and drilling additional oil wells with cash flows from operations or the proceeds from equity sales, including the Company's recent financings. If we were unable to generate sufficient cash from operations, we would need to seek alternative sources of capital to meet our capital requirements. To the extent that our working capital is insufficient, we may have to scale back operations including our drilling activity.

**Since analyzing a well's potential is very risky, our management may make errors in assessing the potential of wells which could lead to limited revenue.**

In our efforts to acquire, explore, and drill interests in oil and gas wells, management will assess reports about the recoverable reserves, future oil and gas prices, operating costs, potential liabilities, and other factors relating to the wells. These assessments are necessarily inexact, and their accuracy is inherently questionable and uncertain. The review of a subject property in connection with its acquisition assessment may not reveal all existing or potential problems or permit it to become sufficiently familiar with the property to fully assess its deficiencies and capabilities. Management and other personnel involved in the process may not inspect every well, and may not be able to observe structural and environmental problems even if it does inspect a well. If problems are identified, various affiliates, vendors, contractors, or third parties may be unwilling or unable to provide effective contractual protection against all or part of those problems. Any acquisition of property interests may not be economically successful, and unsuccessful acquisitions may have a material adverse effect on the Company's financial condition, and future results of operations.

**Unless we develop new reserves, reserves we acquire and subsequent production will decline, which would adversely affect our future cash flows and results of operations.**

Producing oil reservoirs generally are characterized by declining production rates that vary depending upon reservoir characteristics and other factors. Unless we conduct successful ongoing exploration and development activities or continually acquire properties containing proven reserves, our proven reserves will decline as those reserves are produced. Our future reserves and production, and therefore our future cash flow and results of operations, are highly dependent on our success in efficiently and economically finding or acquiring recoverable reserves. We may not be able to develop, find or acquire sufficient reserves to replace our current and future production. Further, our projections about a well's production prospects could prove to be incorrect. If we are unable to replace our current and future production, the value of our reserves will decrease, and our business, financial condition and results of operations would be materially and adversely affected. If our estimates provide to be incorrect now or in the future, for some or all of the wells we are exploring and producing from, it could materially adversely affect our operating results.

**The loss of any of, or a material reduction in orders from, our largest customers would materially and adversely affect our results of operations and financial condition.** 

Our oil and has business is and has been characterized by a high degree of customer concentration and reliance on a very limited number of customers for our revenue. The loss of any of these customers, particularly Plains Marketing, LP, a leading midstream energy company which we frequently rely on for our sales, or a material reduction in their purchases from us spending activities generally, would have a material adverse effect on our financial condition, liquidity and results of operations.

**Since our exploration and production operations are subject to stringent environmental, oil and gas-related and occupational safety and health laws and regulations, noncompliance with such laws and regulations could expose us to material costs and liabilities.**

Our exploration and production operations are subject to stringent federal, state and local laws and regulations governing, among other things, the drilling activities, production rates, the size and shape of drilling and spacing units or proration units, the transportation and sale of crude oil, gas, and the discharging of materials into the environment and environmental protection. These laws and regulations may limit the amount of oil and gas we can produce or limit the number of wells or the locations where we can drill.

Further, we are required to obtain and maintain numerous environmental and oil and gas-related permits, approvals and certificates from various federal, state and local governmental agencies in connection with our exploration and production operations, and may incur substantial costs in doing so. If we acquire gas wells we may in the future be charged royalties on gas emissions or required to incur certain capital expenditures for air pollution control equipment or other air emissions-related issues. Additionally, our operations are subject to a number of federal and state laws and regulations, including the federal occupational safety and health and comparable state statutes, aimed at protecting the health and safety of employees.

Another significant risk inherent in drilling plans is the need to obtain drilling permits from local, state, federal and other governmental authorities, as appropriate. Delays in obtaining regulatory approvals and drilling permits, including delays which jeopardize our ability to realize the potential benefits from leased properties within the applicable lease periods, the failure to obtain a drilling permit for a well, or the receipt of a permit with unreasonable conditions or costs could have materially adverse effects on our ability to capitalize on proposed projects. As long as the Biden Administration or a successor Democratic Administration holds the Office of President, we expect the permitting process on federal lands will be marked by delays and refusals.

Although we will use third party contractors to handle delivery of crude oil and by-products, we may be subject to environmental liabilities for the acts of the contractors arising from the hauling and handling of hazardous materials, air emissions from our vehicles and facilities, and engine idling and discharge. Our operations involve the risks of environmental damage and hazardous waste disposal, among others. If we are involved in an accident involving hazardous substances, if there are releases of hazardous substances we transport, if soil or groundwater contamination is found at our facilities or results from our operations, or if we are found to be in violation of applicable environmental laws or regulations, we could owe clean-up costs and incur related liabilities, including substantial fines or penalties or civil and criminal liability, any of which could have a materially adverse effect on our business and operating results.

Failure to comply with these laws and regulations may subject us to sanctions, including administrative, civil or criminal penalties, remedial clean-ups or corrective actions, delays in permitting or performance of projects, natural resource damages and other liabilities. In addition, these laws and regulations may be amended and additional laws and regulations may be adopted in the future with more stringent legal requirements.

Our operations may generate waste that may be subject to the Federal Resource Conservation and Recovery Act ("RCRA') and comparable state statutes. The EPA and various state agencies have limited the approved methods of disposal for certain hazardous and nonhazardous waste. Furthermore, certain waste generated by natural gas and oil operations that are currently exempt from treatment as hazardous waste may in the future be designated as hazardous waste and therefore become subject to more rigorous and costly operating and disposal requirements.

The Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), RCRA and analogous state laws impose liability, without regard to fault or the legality of the original conduct, on specified classes of persons that are considered to have contributed to the release of a hazardous substance into the environment. These classes of persons include the owner or operator of the disposal site or sites where the release occurred and companies that disposed or arranged for the disposal of the hazardous substances found at the site. Persons who are or were responsible for releases of hazardous substances under CERCLA may be subject to joint and several liability for the costs of cleaning up the hazardous substances that have been released into the environment, for damages to natural resources, and for the costs of certain health studies. It is not uncommon for neighboring landowners and other third parties to file claims for personal injury and property damage allegedly caused by the hazardous substances released into the environment.

Our operations also may become subject to the Clean Air Act ("CAA") and comparable state and local requirements. In 1990, Congress adopted amendments to the CAA containing provisions that have resulted in the gradual imposition of certain pollution control requirements with respect to air emissions. The EPA and states have developed and continue to develop regulations to implement these requirements. We are also subject to a variety of federal, state, local and international permitting and registration requirements relating to protection of the environment. While the Company believes it is in substantial compliance with current applicable environmental laws and regulations and that continued compliance with existing requirements will not have a material adverse effect on its operations, but it cannot be certain.

**Legislation, regulations or government actions related to climate change, greenhouse gas emissions and sustainability initiatives and other "ESG" laws, regulations and government action, could result in increased compliance and operating costs and reduced demand for fossil fuels, and concern in financial and investment markets over greenhouse gasses and fossil fuel production could adversely affect demand for our products, limit our access to capital and materially and adversely affect our future operating results.**

As described under "Business-Government Regulations", our operations are regulated extensively at the federal, state and local levels, and lawmakers and government agencies continue to consider potential new laws and regulations that would regulate or otherwise affect our industry. Environmental and other governmental laws and regulations have increased the costs to plan, design, drill, install, operate and abandon oil and natural gas wells. The trend in recent years has been increased scrutiny and regulatory oversight of the oil and gas industry, including among other things increasingly the proposal of new laws and regulations aimed at reducing or restricting oil and gas production and use. For example, in a rulemaking notice in mid-November 2022, the EPA announced a new calculation that would raise the damage estimate referred to as the "Social Cost of Carbon" of from $51 per metric ton, which had been the rate for the last several years, to $190 per metric ton by 2022 and as much as $410 by the year 2080. This amount is expected to guide or influence numerous laws and regulations in the future that are designed to reduce carbon emissions and the harm they cause to the environment. Under these laws and regulations, we could also be liable for personal injuries, property damage and other damages. In addition, failure to comply with these laws and regulations may result in the suspension or termination of our operations and subject us to administrative, civil and criminal penalties and fines.

The adoption and implementation of these and other similar regulations could require us to incur material costs to monitor and report on greenhouse gas emissions or install new equipment to reduce emissions of greenhouse gases associated with our operations. In addition, these regulatory initiatives could drive down demand for our products and services in the oil and gas industry by stimulating demand for alternative forms of energy that do not rely on combustion of fossil fuels that serve as a major source of greenhouse gas emissions, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. This could have a material adverse effect on our business, consolidated results of operations, and consolidated financial condition.

**Because of the trend to use alternative energy technologies rather than oil and gas, it could have a material adverse effect on our results of operations**.

Since our business depends on the level of activity in the oil and natural gas industry, any improvement in or new discoveries of alternative energy technologies that increase the use of alternative forms of energy and reduce the demand for oil and natural gas could have a material adverse effect on our business, financial condition and results of operations. As the United States and certain other countries transition to electric vehicles and as certain states in the United States are banning any usage of gas as a fuel, the oil and gas business is adversely affected. We will be further subject to state regulatory efforts such as California's announced goal of eliminating the sale of vehicles which use gas by 2035. Automobile manufacturers are beginning to announce that they will only manufacture electric vehicles in the future. President Biden has also stated that the 2022 retail price rise in the price of gasoline was part of a plan to transition to electric vehicles.

As an example, in August 2022, the California Air Resources Board passed a rule banning the sale of gas vehicles by 2035, requiring 35% of new passenger vehicles sold by 2026 to be electric or otherwise not using gas with the number rising to 68% by 2030. It has been reported that more than a dozen states typically follow California which is the largest market for the sale of passenger vehicles. The State of Washington has enacted a Rule similar to California. California also enacted a law effective July 1, 2022 banning the sale of gas powered lawn mowers and leaf blowers starting in 2024. Further in late September 2022 the California Air Resources Board banned natural gas heaters and furnaces by 2030. As this and the other trends outlined above are implemented, the Company could incur material and adverse effects on its results of operations.

**Because we expect the SEC will adopt most, if not all of its proposed climate change rules, as a small producer, the compliance costs may adversely affect our future results of operating and financial condition, which effects may be material**.

On March 21, 2022, the SEC released proposed rule changes that would require new climate-related disclosure in SEC filings, including certain climate-related metrics and greenhouse gas emissions, information about climate-related targets and goals, transition plans, if any, and extensive attestation requirements. In addition to requiring filers to quantify and disclose direct emissions data, the new rules would also require disclosure of climate impact arising from the operations and uses by the filer's business partners and contractors and end-users of the filer's products and/or services. If adopted as proposed, the rule changes would apply to the Company and result in us incurring material additional compliance and reporting costs, including monitoring, collecting, analyzing and reporting the new metrics and implementing systems and procuring additional internal and external personnel with the requisite skills and expertise to serve those functions. Such costs are likely to adversely affect our future results of operations and financial condition, which may be material. We expect the rule will be adopted in 2023 and be effective beginning at some point in 2023. We cannot predict the outcome of litigation which we expect will challenge any new climate change rules.

**If Congress enacts the proposed price gouging bill, it could have a material adverse effect on our oil and gas operations and the Fund.**

Senator Elizabeth Warren and others have introduced legislation aimed at rising gasoline and other prices and would empower the Federal Trade Commission ("FTC") to investigate and penalize companies with "unconscionably excessive price increases." The proposed legislation does not define what this phrase means so it will permit the FTC to define it. While we cannot predict whether the legislation will pass, the recent election and the apparent Republican control of the House of Representatives may mean the proposed bill will not be enacted. If it does pass, the FTC will enact Rules although it is possible it may enact an emergency Rule like other regulatory agencies have recently done. Any such legislation will likely affect gasoline prices. We believe price controls will have a material adverse effect on the Company and the Fund.

**Because competition in the oil and natural gas industry is intense, we may be unable to effectively compete with larger companies with greater financial, technical and managerial resources.**

We are a relatively small participant in the United States onshore oil and gas exploration and drilling industry and we face significant competition from major energy companies with substantial financial, technical, management, and other resources as well as large and other privately-held businesses which have competitive advantages. While we are mostly vertically integrated, our cost of operations is dependent in part on certain third-party services, and competition for these services can be significant, especially in times when commodity prices are high. Similarly, if and as we grow we will compete for trained, qualified personnel, and in times of lower prices for oil, we and other companies with similar production profiles may not be able to attract and retain this talent. Conversely, some of our competitors have a broader portfolio properties, assets and rights that in many cases enable them to both explore and drill wider geographic areas with a greater likelihood of success and/or complete the exploration, drilling, distribution and sale processes at lower costs while also offering related services to third parties.

Our ability to acquire and develop reserves in the future, and maintain and grow our customer base will depend on our ability to evaluate and select suitable properties and assets and to consummate transactions in a highly competitive environment for acquiring such properties and assets, marketing oil and gas, securing and compensating trained personnel and meeting demand for our products and services. Also, there is substantial competition for capital available for investment in the oil and gas industry. Our competitors may be able to pay more to acquire working interests in oil and gas leases as well as for personnel, property and services and to attract capital at lower rates. Because of our small size, we may be more affected than larger competitors. Further, the current inflation the United States is facing will affect us more that many well capitalized competitors.

**The potential lack of availability of, or cost of, drilling rigs, equipment, supplies, personnel and crude oil field services could adversely affect our ability to execute on a timely basis our exploration and development plans within our budget.**

We currently own three drilling rigs which can perform deep vertical and horizontal/directional drilling projects in depths of up to 30,000 feet, and three workover rigs. When the prices of crude oil increase, or the demand for equipment and services is greater than the supply in certain areas, we could encounter an increase in the cost of securing a deep drilling rig capable of performing lateral drilling projects in the Tuscaloosa Marine Shale. In addition, larger producers may be more likely to secure access to such equipment by offering more lucrative terms. If we are unable to acquire access to such resources, or can obtain access only at higher prices, our ability to convert our reserves into cash flow could be delayed and the cost of producing those reserves could increase significantly. In addition to increasing our costs, we may face the possibility of poorly rendered services or faulty or damaged equipment coupled with potential damage to downhole reservoirs and personnel injuries. Such issues can increase the actual cost of services, extend the time to secure such services and add costs for damages due to accidents sustained from the overuse of equipment and inexperienced personnel. All of these factors may adversely affect our results of operations and financial condition.

**Drilling for and producing crude oil involves significant risks and uncertainties that could adversely affect our business, financial condition or results of operations.**

Our drilling and production activities are subject to many risks, including the risk that we will not discover commercially productive reservoirs. Drilling for crude oil can be unprofitable, not only from dry holes, but from productive wells that do not produce sufficient revenues to return a profit. In addition, our drilling and producing operations may be curtailed, delayed or cancelled as a result of other factors, including but not limited to:

● unusual or unexpected geological formations and miscalculations;

● fires;

● explosions and blowouts;

● pipe or cement failures;

● environmental hazards, such as natural gas leaks, oil spills, pipeline and tank ruptures, encountering naturally occurring radioactive materials, and unauthorized discharges of toxic gases, brine, well stimulation and completion fluids, or other pollutants into the surface and subsurface environment;

● loss of drilling fluid circulation;

● title problems for the properties on which we drill and resulting restrictions or termination of lease for oil drilling and production operations;

● facility or equipment malfunctions;

● unexpected operational events, especially the need to drill significantly deeper than originally contemplated or finding, despite an engineering study to the contrary;

● shortages of skilled personnel or unexpected loss of key drilling and production workers;

● shortages or delivery delays of equipment and services or of water used in hydraulic fracturing activities;

● compliance with environmental and other regulatory requirements and any unexpected remedial requirements for violations of environmental or other regulatory requirements;

● stockholder activism and activities by non-governmental organizations to restrict the exploration, development and production of oil and natural gas so as to minimize emissions of greenhouse gases;

● natural disasters; and

● adverse weather conditions.

Any of these risks can cause substantial losses, including personal injury or loss of life, severe damage to or destruction of property, natural resources and equipment, pollution, environmental contamination, clean-up responsibilities, loss of wells, repairs to resume operations; and regulatory fines or penalties. Further, our exposure to operational risks may increase as our drilling activity expands.

We may not be insured or fully insured against certain of the above operational risks, either due to unavailability of such insurance or the high premiums and deductibles. The occurrence of an event that is not covered in full or in part by insurance could have a material adverse impact on our business, financial condition and results of operations.

**Because of the speculative nature of drilling oil and gas wells, we cannot guarantee any return on your investment.**

Oil and natural gas exploration is an inherently speculative activity. Before the drilling of a well, we cannot predict with absolute certainty the volume of oil and natural gas recoverable from the well; or the time it will take to recover the oil and gas.

In addition, oil and gas wells by their nature are depleting assets with respect to which production could last anywhere from a few months to more than 30 years. As a result, annual production will naturally decline over the life of a well, and so too will returns to investors.

Even if targeted wells are completed and produce oil and gas in commercial quantities, it may not produce enough oil and gas to pay for the costs of drilling and completing the well.

**Because the oil and gas drilling business is very cyclical, we may face a downturn which in turn can adversely affect our business.**

Between inflation, supply chain shortages and the war in Ukraine, among other factors, the price of oil has spiked in 2022 with peak oil prices over $122 per barrel of oil for WTI crude on June 8, 2022, which was the highest level in over 10 years. However, as the economy is seemingly worsening, the price of crude oil fell to early January levels with WTI crude at $78.74 on September 24, 2022, although the price has since increased to above $90 in early November 2022. Changes in oil and natural gas prices (and specifically downwards trends or the lack of an increase) will have a significant adverse impact on our cash flow. Lower oil and gas prices may not only impact our revenues, but also may reduce the amount of oil and gas that we can produce economically. Historically, oil and gas prices have been volatile, and it is likely that they will continue to be volatile in the future. At some point, the regulatory factors facing fossil fuels and the drilling for oil as well as a recession may make oil drilling financially unattractive. In that event, our results of operations may be materially and adversely affected.

The volatility of oil and natural gas prices could also hamper our ability to produce oil and gas economically. Oil and natural gas prices are volatile, and a decline in prices could significantly, adversely affect both profitability and overall financial health of the Company. The oil and gas industry has experienced severe downturns characterized by oversupply and/or weak-to-zero demand.

Our future revenues from exploration and production operations, cash flows, and carrying value of our oil and gas properties will depend on oil prices. Commodity prices, including oil, are highly volatile and may fluctuate widely in response to relatively minor changes in supply and demand and market uncertainty. Additional factors which may affect oil prices and which are beyond our control include but are not limited to, the following factors:

● worldwide and regional economic conditions impacting the global supply of and demand for oil, including the impact of the Russian invasion of Ukraine and inflation;

● the price and quantity of foreign imports of oil;

● consumer and business demand;

● geopolitical and economic conditions in or affecting other producing regions or countries, including the Middle East, Africa, South America and Russia;

● actions of the Organization of the Petroleum Exporting Countries, its members and other state-controlled oil companies relating to oil price and production controls;

● the level of global exploration, development and production;

● the level of global inventories;

● prevailing prices on local price indexes in the area in which we operate;

● the proximity, capacity, cost and availability of gathering and transportation facilities;

● localized and global supply and demand fundamentals and transportation availability;

● the cost of exploring for, developing, producing and transporting reserves;

● weather conditions and other natural disasters;

● technological advances affecting energy consumption;

● the price and availability of alternative fuels;

● government regulations, such as regulation of natural gas transportation and price controls;

● U.S. federal, state and local and non-U.S. governmental regulation and taxes; and

● market perceptions of future prices, whether due to the foregoing factors or others.

Currently, oil prices are higher than they have been in prior years, although there can be no certainty as to if, when and to what extent they may decline in the future. Further, while higher oil prices generally provide benefits to our drilling operations to the extent we have productive wells during the high price periods, they also pose increased costs in drilling additional wells.

**Our operating results fluctuate due to the effect of seasonality, adverse weather or other natural occurrences that generally impact the oil and gas industry.**

Operating levels of the oil industry have historically been lower in the winter months because of adverse weather conditions. Accordingly, our revenue generally follows a seasonal pattern. Revenue can also be affected by other adverse weather conditions, holidays and the number of business days during a given period because revenue is directly related to the available working days. From time-to-time, we may also suffer short-term impacts from severe weather and similar events, such as tornadoes, hurricanes, blizzards, ice storms, floods, fires, earthquakes, and explosions that could harm our results of operations or make our results of operations more volatile.

**Because we may be subject to various claims and lawsuits in the ordinary course of business, increases in the amount or severity of these claims and lawsuits could adversely affect us.**

In the ordinary course of our planned business, we may be exposed to various claims and litigation related to commercial disputes, personal injury, property damage, environmental liability and other matters. If we incur increases in litigation or serious claims, there are developments in legislative or regulatory trends, or our employees or contractors incur a catastrophic accident or series of accidents, involving property damage, personal injury, or environmental liability it could have a material adverse effect on our operating results and financial condition.

**The extension of our active oil and gas mineral leases are in some cases subject to performing continuous drilling operations.**

Our oil and gas mineral leases may contain acreage that is either held by production or not. In order to extend the leased acreage not held by production, the Company must maintain minimum continuous drilling operations in order to extend these leases to future periods. Further, at least one of our leases requires us to drill a new well every 270 days in order to maintain the rights, and our failure to do so would result in us losing the rights unless the owner agrees to a waiver or extension. The Company's inability to perform operations during any given period could result in the Company's losing the rights to future operations on that lease.

**We may be required to meet future drilling conditions and lack the capital to protect our interest in one or more wells.**

In addition to the requirements under our current interests, we may acquire interests in wells that require continuous drilling in order to maintain our interest. In the past, White River Holdings a then subsidiary of Ecoark was unable to meet the drilling condition, which permitted our Executive Chairman (and Ecoark's Chief Executive Officer) to personally acquire a portion of the working interest when he made the required investment. Because we may acquire oil and gas mineral leases that may require future drilling to maintain the leasehold interest, if we do the Company will be required to invest in future drilling in order to extend these leases to future periods or lose the interest in any such leases. If we lack the capital, our affiliates may acquire the leases by investing their own capital.

**Our ability to spread the risks of drilling among many wells may be limited**.

Our ability to spread risks through diversification will be related to our ability to obtain the necessary capital and other resources needed to evaluate a well's prospects and deploy drilling equipment, as well as acquire and maintain drilling rights. Limited capital will force us to drill fewer wells, or forego opportunities management deems to be attractive, which decreases our ability to spread the risks of drilling and mitigate the possibility of deploying our limited resources towards a successful drilling venture. In addition, our revenue and ability to achieve or maintain profitability may decrease if management is unable to find enough suitable well locations to be drilled. While we have over 30,000 acres to select drilling locations from, there can be no assurance that we will be successful in drilling in a manner or pace that enables us to generate sufficient revenue at low enough costs to become profitable.

**The Company may face issues with title defects, which could result in losses in leases which the fund acquires.**

There may be defects in the title to the leases on which the Company's wells are drilled. In certain instances, the Company may elect not to obtain title opinions or take certain other due diligence related actions that could have otherwise unveiled problems, due to cost, timing or other constraints. Thus, the Company may experience losses from title defects which arose during drilling that would have been disclosed by such due diligence. Also, the Company may waive title requirements for the leases on which the Company's wells are drilled. Any failure of title of working interest transferred to the Company could materially adversely affect our operating results and business.

**We may be required to record significant non-cash impairment charges related to a reduction in the carrying value of our proved oil and gas properties, which could materially and adversely affect our results of operations.**

We will perform assessments of our oil and gas properties whenever events or circumstances indicate that the carrying value of those assets may not be recoverable. In order to perform these assessments, management will use various observable and unobservable inputs, including management's outlooks for (i) proved reserves and risk-adjusted probable and possible reserves, (ii) commodity prices, (iii) production costs, (iv) capital expenditures and (v) production. Significant or extended price declines could result in the need to adjust the carrying value of our proved oil and gas properties by recording non-cash impairment charges. To the extent such assessments indicate a reduction of the estimated useful life or estimated future cash flows, the carrying value of the oil and gas properties may not be recoverable and therefore we may be required to record an impairment charge reducing the carrying value of the proved properties to their fair value. If oil and natural gas prices decline in the future, we may be required to record impairment charges related to the oil and gas properties acquired from Ecoark, which would materially and adversely affect our results of operations in the period incurred.

**Similar to many companies, we have experienced a spike in our insurance costs, which could have a material adverse effect on our operating results**.

Insurance premiums have recently escalated, and we are facing a similar increase in our insurance costs. Our future insurance and claims expense might exceed historical levels, which could reduce our earnings. We self-insure or maintain a high deductible for a portion of our claims exposure resulting from workers' compensation, auto liability, general liability, cargo and property damage claims, as well as associated health insurance. Estimating the number and severity of claims, as well as related judgment or settlement amounts is inherently difficult. This, along with legal expenses, incurred but not reported claims and other uncertainties can cause unfavorable differences between actual claim costs and our reserve estimates. We plan to reserve for anticipated losses and expenses and periodically evaluate and adjust our claims reserves to reflect our experience. However, ultimate results may differ from our estimates, which could result in losses over our reserved amounts.

We maintain insurance with licensed insurance carriers above the amounts which we retain. Although we believe our general liability and related insurance limits should be sufficient to cover reasonably expected claims, the amount of one or more claims could exceed our coverage limits. If any claim were to exceed our coverage, we would be required to bear the excess, in addition to our other self-insured/retained amounts. As a result, our insurance and claims expense could increase, or we could raise our self-insured retention or deductible when our policies are renewed or replaced. Our operating results and financial condition could be materially and adversely affected if (i) cost per claim, premiums, or the number of claims significantly exceed our estimates, (ii) there is one or more claims in excess of our coverage limits, (iii) our insurance carriers refuse to pay our insurance claims or (iv) we experience a claim for which coverage is not provided.

**<u>General Risks</u>**

**Because the COVID-19 pandemic had a material adverse effect on crude oil prices and the economy, the uncertainty relating to its continuation may have a future adverse effect on our business, results of operations, and future prospects.**

The global COVID-19 pandemic and the unprecedented actions taken by U.S. federal, state and local governments and governments around the world in order to stop the spread of the virus had a profound impact on the U.S. and global economy, disrupting global supply chains and creating significant volatility in the financial markets.

While COVID-19 seems to no longer threaten the economy as it did, supply chain shortages seem to have evolved from COVID-19. Moreover, the risk of a serious new COVID-19 strain or other serious virus evolving remains.

Disruptions and/or uncertainties related to a new strain of COVID-19 for a sustained period of time could have a material adverse impact on our business, results of operations and financial condition. Supply chain delays and shortages of equipment, or increased transportation, labor or other costs which may result from COVID-19 could have a material adverse effect on our financial condition and results of operations.

Furthermore, the effect of another serious COVID-19 outbreak on financial markets and on our Company may limit our ability to raise additional capital in the future on the terms acceptable to us at the time we need it, or at all.

**Because of the Russian invasion of Ukraine, as well as high inflation and increased Federal Reserve interest rates in response, the effect on the capital markets and the economy is uncertain, and we may have to deal with a recessionary economy and economic uncertainty including possible adverse effects upon the oil and gas industry and other industries.** 

As a result of the Russian invasion of Ukraine, certain events are beginning to affect the global and United States economy including continued inflation, Federal Reserve interest rate increases in response, prominent bank failures and weaknesses, substantial increases in the prices of oil and gas, declines in the capital markets, and large Western companies ceasing to do business in Russia. The duration of this war and its impact are at best uncertain, and continuation may result in Internet access issues if Russia, for example, began illicit cyber activities. The economy appears to be headed into a recession with uncertain and potentially severe impacts upon public companies and us. We cannot predict how this will affect the market for oil and gas, but the impact may be adverse.

**Our future success depends on our ability to retain and attract high-quality personnel, and the efforts, abilities and continued service of our senior management.**

Our future success depends on our ability to attract, hire, train and retain a number of highly skilled employees and on the service and performance of our senior management team and other key personnel for each of our subsidiaries particularly with the planned expansion of our operations. The loss of the services of our executive officers or other key employees and inadequate succession planning could cause substantial disruption to our business operations, deplete our institutional knowledge base and erode our competitive advantage, which would adversely affect our business. Competition for qualified personnel possessing the skills necessary to implement our strategy is intense, and we may fail to attract or retain the employees necessary to execute our business model successfully. We do not have "key person" life insurance policies covering any of our executive officers.

Our success will depend to a significant degree upon the continued efforts of our key management, engineering and other personnel, many of whom would be difficult to replace. In particular, we believe that our future success is highly dependent on Randy May, our Executive Chairman, and Jay Puchir, our Chief Executive Officer. If any members of our management team leave our employment, our business could suffer, and the share price of our common stock could decline.

**If we cannot manage our growth effectively, our results of operations would be materially and adversely affected.**

We have recently experienced significant growth in our operations commencing with and following the White River Holdings acquisition. Our business model relies on our rapidly growing our oil and gas drilling business. Businesses that grow rapidly often have difficulty managing their growth while maintaining their compliance and quality standards. If we continue to grow as rapidly as we anticipate, we will need to expand our management by recruiting and employing additional executive and key personnel capable of providing the necessary support. There can be no assurance that our management, along with our staff, will be able to effectively manage our growth. Our failure to meet the challenges associated with rapid growth could materially and adversely affect our business and operating results.

**We will have a highly concentrated portfolio of assets and operate in a limited number of markets, and therefore face risks surrounding a lack of diversification.**

Our current operations and revenue generating activities are conducted exclusively through White River Holdings, which is focused on oil and gas drilling. Thus, an investment in our Company will not provide diversity as to asset type and industry, as we are focused solely on oil and gas assets in the energy sector. Additionally, while we intend to expand our portfolio as capital becomes available, our oil and gas portfolio and operations are presently geographically concentrated in the relatively small territory of Louisiana and Mississippi. This lack of diversification could cause us to face difficulties in establishing material revenue, particularly if adverse external forces such as market or regulatory changes occur, and we may be unable to recover from these developments, in which case your investment would be at risk.

**If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired.**

Upon the effectiveness of the Registration Statement of which this Prospectus is a part, we will become subject to the reporting requirements of the Securities Exchange Act of 1934 (the "Exchange Act") and the Sarbanes-Oxley Act which requires, among other things, that public companies maintain effective disclosure controls and procedures and internal control over financial reporting.

Any failure to maintain effective controls or any difficulties encountered in their implementation or improvement in the future could cause us to fail to meet our reporting obligations and may result in a restatement of our financial statements for prior periods. If we fail to maintain an effective system of disclosure controls and internal control over financial reporting, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired, which could result in loss of investor confidence and could have an adverse effect on our stock price.

**The requirements of being a public company may strain our resources and distract our management, which could make it difficult to manage our business.**

The federal securities laws require us to comply with SEC reporting requirements relating to our business and securities following the effectiveness of the registration statement of which this prospectus is a part. Complying with these reporting and other regulatory obligations is time-consuming and will result in increased costs to us which could have a negative effect on our financial condition or business. As a public company, we are subject to the reporting requirements of the Exchange Act and the requirements of the Sarbanes-Oxley Act. These requirements may place a strain on our systems and resources. We will be required to file annual, quarterly and current reports with the SEC disclosing certain aspects and developments of our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting. To date, we file reports on a voluntary basis and have concluded in our most recent Form 10-Q for example, that our disclosure controls are not effective. To maintain and improve the effectiveness of our disclosure controls and procedures, we will need to commit significant resources, hire additional executive officers and personnel and provide for additional management oversight. We intend to implement additional procedures and processes for the purpose of addressing the standards and requirements applicable to SEC reporting companies. Sustaining our growth will also require us to commit additional managerial, operational and financial resources to identifying competent professionals to join our Company and to maintain appropriate operational and financial systems to adequately support our intended expansion. These activities may divert management's attention from other business concerns, which could have a material adverse effect on our results of operations, financial condition or business.

**<u>Risks Relating to Our Planned Acquisition of a Broker-Dealer and Certain Other Regulatory Matters.</u>**

**A failure or delay in the acquisition of a broker-dealer, including due to regulatory requirements of the broker-dealer, may adversely affect our business and results of operations.**

Broker-dealers are subject to intense laws and regulations enacted by national, and state governments, including those administered by the SEC. Additionally, broker-dealers are subject to FINRA oversight and must also comply with money laundering laws and know your customers laws. Self-regulatory organizations and related licenses and certifications often come with their own rules and processes with which we will need to comply to effect these types of transactions. Broker-dealers are regulated by the SEC, states in which they operate and by FINRA, and self-regulatory organizations of which they may be members. The SEC requires registration and certain periodic public disclosure about the broker-dealer unless an exemption from registration is available. Before a FINRA member firm may engage in a change of control transaction, FINRA Rule 1017 requires the member to file an application for approval at least 30 days prior to the transaction. Under the Rule, FINRA then has authority to review and potentially reject the application, in which case the transaction would not be able to go forward.

Therefore, our business plan as it relates to acquiring a broker-dealer through which to enable us to proceed with oil and gas funding activities could be materially delayed or even prevented by FINRA and/or the SEC rules and application and review processes, much of which will be beyond our control given that a significant source of the information and documentation FINRA or the SEC requests will come from the firm we are targeting to acquire. We filed the change of control application with FINRA in February 2023. If we do obtain FINRA approval to acquire a broker-dealer, we will become subject to the SEC's and FINRA's rules and requirements through the acquired entity, which together impose significant ongoing compliance requirements with respect to the financial condition (including net capital minimums), reporting, recordkeeping and audit requirements, supervisory and corporate governance mandates, customer relationships and communications and other requirements affecting the products and services offered by the broker-dealer. See the risk titled "If we obtain a broker-dealer, we will become subject to numerous regulatory requirements imposed by a variety of different private and public agencies, which could restrict our operations or impede our growth" for more information about the potential applicable requirements. Additionally, various states require registration which provides such states with the ability to regulate the broker-dealer including the power to inspect records.

Compliance with SEC and FINRA rules and regulations and other requirements in connection with acquisitions and ongoing operations are often capital intensive and time-consuming, can divert management's and personnel's attention from important operational matters, and may prevent us from ultimately achieving our goals within the desired timeframes, on favorable terms or at all. These requirements are often ambiguous, fact sensitive and context specific, which further magnifies the risk of exposure and/or the expense of compliance. Litigation or enforcement proceedings may arise involving large amounts of damages or fees, and defending against such litigation is costly. For the foregoing reasons, failure to comply with applicable laws or regulations, as interpreted and applied, and deployment of human and capital resources towards compliance and/or defense efforts, could have a material adverse effect on our business, including our ability to negotiate and complete transactions, and on our ability to execute our business plan and generate material revenue therefrom.

**If we obtain a broker-dealer, we will become subject to numerous regulatory requirements imposed by a variety of different private and public agencies, which could restrict our operations or impede our business plan and growth.**

If we acquire a broker-dealer, we will become subject to a number of laws, regulations, rules and policies aimed at protecting investors and preserving the integrity of the financial markets. These requirements can be costly to comply with, divert management's attention away from other important matters, and may have the effect of hindering our growth as a result. For example, among the laws, regulations, rules and policies to which the broker-dealer must comply with are:

● Rule 15c3-1 under the Exchange Act, which specifies minimum capital requirements intended to ensure the general financial soundness and liquidity of broker-dealers;

● Rule 15c3-3 under the Exchange Act, which requires broker-dealers to maintain certain liquidity reserves; and

● SEC and FINRA rules which require notification when net capital falls below certain defined criteria and when withdrawals of capital exceed certain thresholds, as well as remaining above a certain ratio of debt to equity in the regulatory capital composition of a broker-dealer.

While we expect the future operations of any broker-dealer we acquire to be limited, we may be subject to additional or different rules depending on the operations of the broker-dealer we acquire, and any future business we develop following the acquisition. Costs of compliance with these requirements is expected to be significant, and failure to comply would expose us to the risk of regulatory enforcement, civil liability, suspension or withdrawal of the license or registration to operate as a broker-dealer, any of which would materially adversely affect us.

**The Company may become subject to the requirements of the Investment Company Act of 1940, which would limit the Company's business operations and require the Company to expend and deploy significant resources towards compliance with such regulatory regime.**

The Investment Company Act of 1940 (the "Investment Company Act") defines an "investment company" to include (i) an issuer that is engaged in the business of investing, reinvesting, owning, holding or trading in securities and that owns investment securities having a value exceeding 40% its unconsolidated assets, excluding cash items and securities issued by the federal government, or (ii) an issuer which is or holds itself out to be primarily engaged investing, reinvesting, owning, holding or trading in securities. There are various exceptions to the definition, and there are also exemptions provided under the Investment Company Act, that apply in certain enumerated circumstances.

The Company and its subsidiaries do not fall within (i) above because our business is focused on oil and gas exploration and drilling, and not on investing, reinvesting, owning, holding or trading in securities. With respect to (ii) above, the Company and our subsidiaries fall below the 40% test, and in addition an exception applies to any issuer primarily engaged, directly or through a wholly-owned subsidiary or subsidiaries, in a business or businesses other than that of investing, reinvesting, owning, holding, or trading in securities, which we believe applies to the Company, and to our wholly-owned subsidiaries. In addition, the Investment Company Act also excludes from this definition any person substantially all of whose business consists of owning or holding oil, gas or other mineral royalties or leases or fractional interests therein, or certificates of interest or participation relating to such mineral royalties or leases, which we believe applies to both the Company and its subsidiaries and to the Fund. The Investment Company Act also affords an exception to the definition for issuers with no more than 100 beneficial holders of its outstanding securities and that is not making and does not at the time propose to make a public offering of such securities, which while not applicable to the Company would be available to the Fund.

While as described above the Company believes that it and its subsidiaries, as well as the Fund, either do not fall within the definition of investment company or has an exemption available from the definition, any of these entities could fall within the definition and become subject to the regulations called for by the Investment Company Act in the future. In addition, there is a possibility that the SEC disagrees with the Company's conclusions that these entities are beyond the scope of the definition. If our analysis on this issue proves to be incorrect or we or related entities on which our operations depend are otherwise deemed to be subject to the Investment Company Act, we would become subject to onerous filing and other regulatory requirements thereunder, could become subject to costly litigation in defending against claims or enforcement actions arising as a result, and may be found to have acted in violation of the Investment Company Act, the consequences of which can be significant. For example, investment companies are required to register with the SEC and comply with ongoing monitoring and reporting obligations with respect to their assets, operations and holders, and are subject to restrictions and limitations in terms of their corporate governance and capital structures and the transactions in which they can engage. Further, investment companies that fail to register under the Investment Company Act are prohibited from conducting business in interstate commerce, which includes selling securities or entering into other contracts in interstate commerce.

If in the future the nature of our business or assets changes such that the definition of investment company applies to us or our subsidiaries or the Fund without an available exemption, the ramifications of becoming an investment company, both in terms of the restrictions it would have on our business and the cost of compliance, would be significant. For example, in addition to expenses related to initially registering as an investment company, the Investment Company Act also imposes various restrictions with regard to our ability to enter into affiliated transactions, the diversification of our assets and our ability to borrow money. In order to ensure that we are not deemed to be an investment company, we may be required to materially restrict or limit our scope of operations or plans and we would be limited in the type of acquisitions that we may make or transactions that we engage in, and may need to modify our organizational structure or dispose of assets which we would not otherwise dispose of in order to maintain exclusion from the statute's scope. If we became subject to the Investment Company Act at some point in the future, our ability to continue pursuing our business plan would be severely limited for the reasons delineated above.

**If we are required to register under the Investment Advisers Act, our ability to conduct business could be materially adversely affected.**

The Investment Advisers Act of 1940 (the "Investment Advisers Act"), contains substantive legal requirements that regulate the manner in which "investment advisers" required to register under the Investment Advisers Act are permitted to conduct their business activities. The term "investment adviser" is defined as any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing, or selling securities, or who, for compensation and as part of a regular business, issues or promulgates analyses or reports concerning securities, subject to a number of enumerated exceptions from the definition. Other than the Manager, which manages the Fund, none of the Company or its other subsidiaries, or the Fund itself, would meet this definition.

With respect to the Manager, while it may be deemed to provide investment advice to the Fund, Rule 203(m)-1(a) promulgated under the Investment Advisers Act exempts from the registration requirements of that Act an investment adviser with its principal office and place of business in the U.S. and which both (i) acts solely as an investment adviser to one or more qualifying private funds; and (ii) manages private fund assets of less than $150 million. ("Private Fund Exemption").

Under Rule 203(m)-1(d), an investment adviser may treat as a private fund for purposes of the exemption an issuer that qualifies for an exclusion from the definition of an investment company under Section 3(c)(1) of the Investment Company Act, which is described in the risk factor above titled "The Company may become subject to the requirements of the Investment Company Act of 1940, which would limit the Company's business operations and require the Company to expend and deploy significant resources towards compliance with such regulatory regime" as applicable to the Fund. Because the Manager's activities solely relate to the Fund, which qualifies for exemption from the investment company definition provided for under Section 3(c)(1) of the Investment Company Act because it has no more than 100 beneficial owners and has not and is not conducting a public offering of such securities, and also has less than $150 million in assets under management, the Manager qualifies for this exception.

Because its assets under management are less than $25 million, the Manager is not required to register, and is in fact precluded from registering, as an investment adviser with the SEC, but is subject to the state investment adviser regulations of the State of Colorado, where its principal office and place of business are located. As an exempt reporting advisor, notice filings are made with the state of Colorado.

Although exempt from registration under the Investment Advisers Act, the Manager is required to file an annual/materially changing truncated Form ADV with the SEC as an "exempt reporting adviser" pursuant to the terms of the registration exemption on which it relies. While provisions of the Investment Advisers Act that apply only to registered investment advisers do not apply to exempt reporting advisers, as an exempt reporting adviser the Manager is subject to some of the requirements and regulations of the Investment Advisers Act, including, among other things, conflict of interest, advertising performance information, anti- money laundering, fiduciary duties to advisory clients, recordkeeping and regulatory reporting requirements, disclosure obligations, limitations on agency cross and principal transactions between an adviser and its advisory clients, anti-corruption rules relating to investors associated with U.S. state or local governments, and general anti-fraud prohibitions. In addition, the SEC is authorized under the Investment Advisers Act to require an exempt reporting adviser such as the Manager to maintain records and provide reports, and to examine these advisers' records.

While we believe our current practices do not require us or any of our subsidiaries to register as an investment adviser under the Investment Advisers Act, if a regulator were to disagree with our analysis with respect to the Manager or any other portion of our business, the Manager, the Company or another subsidiary may be required to register as an investment adviser and to comply with the Investment Advisers Act. Registering as an investment adviser could adversely affect our method of operation and revenues. For example, registered investment advisers under the Investment Advisers Act are subject to burdensome compliance requirements. It could be difficult for us to comply with these obligations without meaningful changes to our business operations, and there is no guarantee that we could do so successfully. If we were ever deemed to be subject to, and in non-compliance with, Investment Advisers Act requirements, we could also be subject to various penalties, including administrative or judicial proceedings that might result in censure, fines, civil penalties, cease-and-desist orders or other adverse consequences, as well as private rights of action, any of which could materially adversely affect our business.

**<u>Risks Relating to our Common Stock</u>**

**If we are not successful, you may lose your entire investment.**

Prospective investors should be aware that if we are not successful in our business, their entire investment in the Company could become worthless. Even if the Company is successful, we can provide no assurances that investors will derive a profit from their investment. We need additional capital to meet our obligations and achieve our business objectives, and we cannot guarantee we will be successful in locating additional required capital as and when needed or that any such amounts will be sufficient for us to establish material revenue growth. If we are not successful, you may lose your entire investment.

**The price of our common stock is subject to volatility, including for reasons unrelated to our operating performance, which could lead to losses by investors and costly securities litigation.**

The trading price of our common stock is likely to be highly volatile and could fluctuate in response to a number of factors, some of which may be outside our control, including but not limited to, the following factors:

● the large number of shares which Ecoark stockholders will receive in the Spin-Off;

● sales of our common stock by these Ecoark stockholders;

● sales of the PIPE Shares offered by this Prospectus;

● the sporadic trading of our common stock which means that the limited demand and high supply may lead to price declines;

● future events related to the market for oil and gas or other products we may offer in the future, including regulation;

● changes in market valuations of companies in the oil and gas industry;

● future oil prices;

● regulatory initiatives from the Biden Administration or other government agencies;

● announcements of developments by us or our competitors;

● the continuation of the stock market slump and any related adverse events affecting the economy;

● announcements by us or our competitors of significant acquisitions, strategic partnerships, joint ventures, capital commitments, significant contracts, or other material developments that may affect our prospects;

● actual or anticipated variations in our operating results;

● adoption of new accounting standards affecting our industry;

● additions or departures of key personnel;

● the adverse consequences of future variants of COVID-19; and

● other events or factors, many of which are beyond our control.

The stock market is subject to significant price and volume fluctuations. In the past, following periods of volatility in the market price of a company's securities, securities class action litigation has often been initiated against such a company. Litigation initiated against us, whether or not successful, could result in substantial costs and diversion of our management's attention and Company resources, which could harm our business and financial condition.

**There is currently a limited trading market for the Company's common stock and none for the Warrants.**

Our common stock was recently quoted on the OTCQB under the symbol "WTRV." However, there is currently a limited trading market in our common stock, and we cannot give an assurance that a consistent, active trading market will develop. Trading on the OTCQB is less liquid than the leading national securities exchanges.

Additionally, there is currently no trading market for our Warrants being offered by the Selling Stockholders hereby. While we have applied for our Warrants to be quoted on the OTCQB under the symbol "WTRVW," such quotation, if our application is granted, does not guarantee that an active trading market for the Warrants will develop or be maintained.

If an active market for our common stock and Warrants develops, there is no assurance that such market will be maintained. The lack of an active market may impair your ability to sell your shares and Warrants at the time you wish to sell them or at a price that you consider reasonable.

Furthermore, there is a significant risk that our stock and Warrant prices may fluctuate in the future in response to any of the following factors, some of which are beyond our control:

● Material declines in the price of oil;

● Regulation by the federal government including the SEC's proposed climate change rules and whether such rules when adopted as we expect will apply to smaller reporting companies like the Company;

● Our ability to acquire sufficient oil and gas leases and working interests in oil and gas wells;

● The impact of inflation;

● Economic conditions including the onset of a recession or stagflation;

● Variations in our quarterly operating results;

● Announcements that our revenue or income is below analysts' expectations;

● Sales of large volume of our common stock especially after the Spin-Off; and

● Announcements by us or our competitors of significant contracts, strategic partnerships, joint ventures or capital commitments.

**Future sales of our common stock in the public market could lower the price of our common stock and impair our ability to raise funds in future securities offerings.**

Of 10,166,667 shares of common stock outstanding as of March 7, 2023, approximately 4,038,811 shares are held by investors who are not our affiliates, excluding the Shares being offered hereby. These Shares are free trading since they have been held more than two years. In addition the 14,270,523 PIPE Shares offered by the Selling Stockholders will be free trading without restrictions. Future sales of a substantial number of shares of our common stock in the public market, or the perception that such sales may occur, could adversely affect the then prevailing market price of our common stock and could make it more difficult for us to raise funds in the future through an offering of our securities. Future sales of substantial amounts of our common stock in the public market, or the anticipation of these sales, could materially and adversely affect market prices prevailing from time-to-time, and could impair our ability to raise capital through sales of equity or equity-related securities. In addition, the market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market or the perception that these sales may occur.

**Our common stock is a "penny stock" and thereby be subject to additional sale and trading regulations that may depress the price of our common stock.**

Our common stock is a "penny stock" if it does not qualify for one of the exemptions from the definition of "penny stock" under Section 3a51-1 of the Exchange Act. Our common stock may be a "penny stock" if it meets one or more of the following conditions: (i) it trades at a price less than $5 per share; (ii) it is not traded on a "recognized" national securities exchange which excludes the OTCQB and OTCQX; or (iii) is issued by a company that has been in business less than three years with net tangible assets less than $5 million. Thus, our common stock is a penny stock.

The principal result or effect of being designated a penny stock is that securities broker-dealers participating in sales of our common stock are discouraged from soliciting purchases of our common stock by the SEC's rules which generally results in low prices and limited trading volume. For example, SEC Rule 15g-2 requires broker-dealers dealing in penny stocks to provide potential investors with a document disclosing the risks of penny stocks and to obtain a manually signed and dated written receipt of the document at least two business days before effecting any transaction in a penny stock for the investor's account. Moreover, Rule 15g-9 requires broker-dealers in penny stocks to approve the account of any investor for transactions in such stocks before selling any penny stock to that investor. This procedure requires the broker-dealer to: (i) obtain from the investor information concerning his or her financial situation, investment experience and investment objectives; (ii) reasonably determine, based on that information, that transactions in penny stocks are suitable for the investor and that the investor has sufficient knowledge and experience as to be reasonably capable of evaluating the risks of penny stock transactions; (iii) provide the investor with a written statement setting forth the basis on which the broker-dealer made the determination in (ii) above; and (iv) receive a signed and dated copy of such statement from the investor, confirming that it accurately reflects the investor's financial situation, investment experience and investment objectives. Compliance with these requirements may make it more difficult and time consuming for holders of our common stock to resell their shares to third parties or to otherwise dispose of them in the market or otherwise. In addition, clearing firms, which hold retail accounts dislike penny stocks and through extra compliance efforts and costs they impose, make it hard to sell penny stocks.

**We may be unable to achieve some or all of the benefits that we expect to achieve from the Spin-Off.**

We believe that, as an independent publicly-traded company, we will be able to, among other things, better focus our financial and operational resources on our specific business, implement and maintain a capital structure designed to meet our specific needs, design and implement corporate strategies and policies that are targeted to our business, more effectively respond to industry dynamics and create effective incentives for our management and employees that are more closely tied to our business performance. Further, we expect that the Spin-Off will assist us in complying with certain requirements to have our securities listed on a national securities exchange operated by The Nasdaq Stock Market LLC ("Nasdaq") or the New York Stock Exchange ("NYSE"). However, we may fail to achieve these goals or realize these benefits, and could also face adverse consequences, such as being more susceptible to market fluctuations and have less support from Ecoark who will no longer be a principal stockholder following the Spin-Off. We have been advised that unless we complete a $40 million public offering, we cannot seek to be listed on Nasdaq or the NYSE until following our fiscal year ended March 31, 2024. In addition, we may be unable to uplist our securities in the time we intend, if at all. The completion of the Spin-Off will also require significant amounts of our management's and other personnel's time and effort, which may divert their attention away from operating and growing our business.

**Until the Spin-Off occurs, the Ecoark Board of Directors has sole discretion to change the terms of the Spin-Off in ways that may be unfavorable to us.**

Until the Spin-Off occurs, Ecoark will remain a prospective principal stockholder pending conversion of the Series A, which will occur after the effectiveness date of the Registration Statement of which this Prospectus is a part. Completion of the Spin-Off remains subject to the discretion of Ecoark, including approval by the Ecoark Board of Directors (the "Ecoark Board"). Additionally, Ecoark has the discretion to change the terms of the Spin-Off, including the ratio, which changes could be unfavorable to us or our stockholders, or the security holders of Ecoark. In addition, Ecoark may decide at any time prior to the completion of the Spin-Off not to proceed with the Spin-Off.

**Our Board of Directors may issue and fix the terms of shares of our preferred stock without stockholder approval, which could adversely affect the voting power of holders of our common stock or any change in control of our Company.**

Subject to existing and outstanding series of preferred stock, including the Series A and the Series C, our Articles of Incorporation authorizes the issuance of up to 5,000,000 shares of "blank check" preferred stock, with $0.0001 par value per share, with such designation rights and preferences as may be determined from time-to-time by the Company's Board. Subject to the terms of our outstanding securities, our Board is empowered, without stockholder approval, to issue shares of preferred stock with dividend, liquidation, conversion, voting or other rights which could adversely affect the voting power or other rights of the holders of our common stock. In the event of such issuances, the preferred stock could be used, under certain circumstances, as a method of discouraging, delaying or preventing a change in control of our Company. For example, the Company has a single authorized share of Series B Preferred Stock (the "Series B") which, if issued, is entitled to vote with the Company's common stock as a single class on any matter brought before the stockholders, and the Series B is entitled to a number of votes equal to the greater of (A) 100,000,000 votes, or (B) 50.1% of the Company's voting power as of the applicable date of determination. The Series B, which will be automatically cancelled upon the Company applying to have its common stock listed on a national securities exchange, was established to ward off any hostile takeover and may be issued by our Board at any time.

**The future issuance of equity or of debt securities that are convertible into, or exercisable for common stock and the common stock issuable under the Series C and Warrants, will place selling pressure on the market price for our common stock as well as affecting our ability to raise capital in the future.** 

In the Fall of 2022 we issued the Series C and Warrants in the PIPE Offering. In December 2022 we issued a Senior Secured Convertible Note in another private placement transaction, and pursuant to their terms these securities are convertible or exercisable for shares of our common stock, with conversion or exercise features that are subject to adjustment including based on our stock price and/or new issuances of common stock or common stock equivalents. The December 2022 Note has a principal value of $1,666,667 and is convertible at the lower of (i) $1.00 per share and (ii) the average of the five-closing prices of the common stock immediately prior to the date of conversion. Assuming the $1.00 conversion price applies, the Note is convertible into 1,666,667 shares. In addition, in December 2022 we issued 1,666,667 shares to an affiliate of the lender pursuant to a Consulting Agreement.

Each of the December 2022 issuances came with registration rights entitling the recipients to have their shares registered for resale on a registration statement. In addition, in connection with the above-described transactions we agreed to certain obligations, including repayment obligations and restrictive covenants, that may hinder our ability to raise capital or execute our business plan and strategic growth initiatives in the future.

In addition to the 2022 transactions, we may choose to raise additional capital in the future, depending on market conditions, strategic considerations and operational requirements. To that end, in March 2023, we entered into additional SPAs to raise $607,000 from the sale of additional shares of Series C and Warrants. The underlying common stock and Warrants are not offered by this Prospectus. To the extent that additional capital is raised through the issuance of shares or other securities convertible into, or exercisable for, shares of common stock, our stockholders will be diluted. Future issuances of our common stock or other equity securities, or the perception that such sales may occur, could adversely affect the prevailing market price of our common stock and impair our ability to raise capital through future offerings of equity or equity-linked securities. For example, we may grant registration rights similar to those given to the Selling Stockholders resulting to the Company's filing of the registration statement of which this Prospectus is a part to future investors. Accordingly, the adverse market and price pressures resulting from an offering pursuant to a registration statement may continue for an extended period of time and continued negative pressure on the market price of our common stock could have a material adverse effect on our ability to raise additional equity capital.

**We have not paid cash dividends in the past and do not expect to pay dividends in the future, so any return on investment may be limited to the value of our common stock.**

We have never paid cash dividends on our common stock and do not anticipate doing so in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting us at such time as our Board of Directors (the "Board") may consider relevant. If we do not pay dividends, our common stock may be less valuable because a return on your investment will only occur if our stock price appreciates.

**Our Articles of Incorporation contain certain provisions which may result in difficulty in bringing stockholder actions against or on behalf of the Company or its affiliates.**

Section 7 of our Articles of Incorporation provide that the internal affairs of the Company, including stockholder derivative actions, shall be brought exclusively in state courts located in Nevada. To the extent that any such action asserts a claim under the Exchange Act, that provision must be brought in federal court. Section 7 also provides that the United States federal courts generally shall have exclusive jurisdiction over claims brought under the Securities Act, the effect of which is that an action under the Securities Act with respect to the Company may only be brought in the federal courts, whereas absent such provision the federal and state courts would otherwise have concurrent jurisdiction over such a matter. Any claim seeking relief under the Exchange Act may only be brought in federal court. Further, Section 7 also provides for the United States District Court for the District of Nevada as the exclusive venue for any cause of action under either the Securities Act or the Exchange Act, meaning such federal court is the only court in which such a case may be brought and heard. Similarly, Section 5.7 of the Securities Purchase Agreement governing the Warrants being offered hereby provides that matters arising thereunder shall be brought exclusively in the state and federal courts sitting in Clark County, Nevada. This Section 5.7 does not apply to actions seeking relief under the Securities Act or the Exchange Act. These provisions may have the effect of precluding stockholders from bringing suit in their forum or venue of choice. Further, these provisions may give rise to a potential ambiguity as to which courts – state or federal – should preside over certain cases such as cases with overlapping claims under both state corporate law and the Securities Act and the rules and regulations thereunder. While the Supreme Court of Delaware has upheld a charter provision designating federal courts as the exclusive forum for actions brought under the Securities Act, it is unclear how a court in another jurisdiction, including Nevada, might rule. Therefore, an investor seeking to bring a claim against or on behalf of the Company or its affiliates under Nevada law or the federal securities laws may be forced to litigate their case in a court which poses geographic or other hardships, and could face uncertainty as to which jurisdiction and venue the case will ultimately be heard in, which may delay, prevent or impose additional obstacles on the investor in such litigation. Investors cannot waive compliance with the federal securities laws and the rules and regulations thereunder, and there is uncertainty as to whether a state or federal court would enforce this charter provision.

**USE OF PROCEEDS**

This Prospectus relates to the Spin-Off Shares that may be distributed to Ecoark's stockholders, as well as the PIPE Securities that may be offered and sold from time-to-time by the Selling Stockholders. We will not receive any proceeds upon the sale of the Securities by either of Ecoark or the Selling Stockholders in this offering. However, we will receive gross proceeds upon the exercise of the Warrants issued to the Selling Stockholders if exercised for cash. Any proceeds will be used for general corporate purposes including expanding our drilling program and working capital. See "Plan of Distribution" elsewhere in this Prospectus for more information.

**DIVIDEND POLICY**

We have never declared nor paid any cash dividends on our common stock, and currently intend to retain all our cash and any earnings for use in our business and, therefore, do not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay cash dividends on our common stock will be at the discretion of the Board and will be dependent upon our consolidated financial condition, results of operations, capital requirements and such other factors as the Board deems relevant.

**DETERMINATION OF OFFERING PRICE**

Spin-Off

No consideration will be paid by Ecoark's stockholders for the Spin-Off Shares to be distributed by Ecoark in the Spin-Off. The stockholders will be able to hold the Shares or sell them at prevailing prices or privately negotiated prices.

PIPE Offering

With respect to the PIPE Securities, each Selling Stockholder will determine at what price(s) such Selling Stockholder may sell the PIPE Securities, and such sales may be made at prevailing market prices, or at privately negotiated prices.

**CAPITALIZATION**

We had 10,066,667 shares of common stock outstanding as of December 31, 2022. The following table sets forth our cash and cash equivalents and capitalization as of December 31, 2022 (i) on an actual basis, and (ii) on a pro forma basis giving effect to the issuance of (a) 42,253,521 shares of common stock in conversion of the Series A, without giving effect to the 1,000 Fractional Shares; and (b) 4,756,841 shares of common stock in conversion of the Series C from the sale of 190.2726308 Series C from and the issuance of the Warrants in our PIPE Offering

---

| | | |
|:---|:---|:---|
|  | **Actual** | **Pro Forma<sup>(1) (2)</sup>** |
| Cash | $1215439 | $1215439 |
| Long-term debt | 792040 | 792040 |
| Stockholders' equity(deficit): |  |  |
| Preferred stock; $0.0001 par value, 5,000,000 shares authorized |  |  |
| Series A, 1,200 shares issued and outstanding actual and none pro forma | 1 |  |
| Series C, no shares issued and outstanding actual and none pro forma (assumed that the Series C shares issued in the PIPE will be converted into common stock) |  |  |
| Common stock, $0.0001 par value, 500,000,000 shares authorized; 10,066,667 shares issued and outstanding at December 31, 2022 actual and 57,077,029 issued and outstanding on a pro forma basis; | 1007 | 5708 |
| Additional paid-in capital | 41912737 | 41908037 |
| Accumulated deficit | (44547503) | (44547503) |
| Total stockholders' equity(deficit) | (2633758) | (2633758) |
| Total capitalization | $(1841718) | $(1841718) |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 pro forma table give effect to the issuance of 42,253,521 shares of common stock upon conversion of the Series A.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Series C in the PIPE Offering in the amount of $4,756,816, which is net of offering expenses of $35,000 is reflected as a derivative
 liability, and not included in the above table. No effect has been given to the exercise of the Warrants in the PIPE Offering.

The foregoing pro forma information as adjusted is illustrative only, and our capitalization following the completion of the offerings covered by this Prospectus. You should read this table together with our financial statements and the related notes appearing elsewhere in this Prospectus and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of this Prospectus.

The above discussion and table is based on 10,066,667 shares of common stock outstanding on February 1, 2023, and excludes 7,575,000 shares of common stock available for future grants under the Company's 2022 Equity Incentive Plan.

**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

Our unaudited pro forma condensed consolidated financial statements consist of an unaudited Pro Forma Condensed Consolidated Statement of Operations for the nine months ended December 31, 2022 and the year ended March 31, 2022, and an unaudited Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2022.

The unaudited pro forma condensed consolidated financial statements presented below have been derived from our historical unaudited Condensed Consolidated Statement of Operations for the nine months ended December 31, 2022 and the year ended March 31, 2022 and the historical unaudited Condensed Consolidated Balance Sheet at December 31, 2022. The unaudited pro forma Condensed Consolidated Balance Sheet gives effect to the related transactions described below as if they had occurred on December 31, 2022. The pro forma adjustments to the unaudited Pro Forma Condensed Consolidated Statement of Operations for the nine months ended December 31, 2022 and the year ended March 31, 2022 assume that the related transactions occurred as of April 1, 2021. The transaction adjustments identified below have been separately broken out to clearly identify the adjustments and the disclosure includes the basis for the adjustment.

**PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE NINE MONTHS ENDED DECEMBER 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Historical** | **Other Transaction**<br>**Adjustments** |<br>**Pro Forma** |
|  | | **(3)** | |
| **REVENUES** |  |  |  |
| Oil and gas production | $3015203 | $- | $3015203 |
| Fund management | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 3015203 | - | 3015203 |
| **COSTS AND EXPENSES** |  |  |  |
| Cost of revenues (excludes items below) | 1109372 |  | 1109372 |
| Salaries and salaries related costs | 4861432 |  | 4861432 |
| Professional and consulting fees | 2821430 |  | 2821430 |
| Oilfield supplies and repairs | 8552596 |  | 8552596 |
| Selling, general and administrative costs | 3192647 |  | 3192647 |
| Depreciation, amortization, impairment, depletion and accretion | 6398704 | - | 6398704 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 26936181 | - | 26936181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss from operations before other income (expenses)** | (23920978) | - | (23920978) |
| **OTHER INCOME (EXPENSE)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities | 3451752 |  | 3451752 |
| &nbsp;&nbsp;&nbsp;Derivative expense | (10124521) |  | (10124521) |
| &nbsp;&nbsp;&nbsp;Gain on sale of oil and gas property and ARO | 405052 |  | 405052 |
| &nbsp;&nbsp;&nbsp;Gain on sale of working interest on oil and gas properties | 2569241 |  | 2569241 |
| &nbsp;&nbsp;&nbsp;Amortization of original issue discount | (6525) |  | (6525) |
| &nbsp;&nbsp;&nbsp;Interest expense, net of interest income | (9108) | - | (9108) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (3714109) | - | (3714109) |
| **LOSS FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (27635087) |  | (27635087) |
| **DISCONTINUED OPERATIONS** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss from discontinued operations | (85848) |  | (85848) |
| &nbsp;&nbsp;&nbsp;Loss on disposal of discontinued operations | (144654) | - | (144654) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total discontinued operations** | (230502) | - | (230502) |
| **LOSS FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (27865589) |  | (27865589) |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | (2939) | - | (2939) |
| **NET LOSS** | $(27868528) | $- | $(27868528) |
| **NET LOSS PER SHARE** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted loss per share: | $(3.26) |  | $(0.49) |
| **WEIGHTED AVERAGE SHARES OUTSTANDING** | 8557233 |  | 57077029 |

---

**PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS**

**FOR THE YEAR ENDED MARCH 31, 2022** 

---

| | | | |
|:---|:---|:---|:---|
|  |<br>**Historical** | **Other Transaction**<br>**Adjustments** |<br>**Pro Forma** |
|  | | **(3)** | |
| **REVENUES** |  |  |  |
| Oil and gas production | $5046559 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $5046559 |
| Fund management | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 5046559 | - | 5046559 |
| **COSTS AND EXPENSES** |  |  |  |
| Salaries and salaries related costs | 2027255 |  | 2027255 |
| Professional and consulting fees | 324739 |  | 324739 |
| Oilfield supplies and repairs | 3339369 |  | 3339369 |
| Selling, general and administrative costs | 2065897 |  | 2065897 |
| Depreciation, amortization, impairment, depletion and accretion | 6218183 | - | 6218183 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 13975443 | - | 13975443 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Loss from operations before other income (expenses)** | (8928884) | - | (8928884) |
| **OTHER INCOME (EXPENSE)** |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability on Ecoark | 2954109 |  | 2954109 |
| &nbsp;&nbsp;&nbsp;(Loss) gain on sale of oil and gas property and ARO | (885796) |  | (885796) |
| &nbsp;&nbsp;&nbsp;Interest expense, net of interest income | (62182) | - | (62182) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 2006131 | - | 2006131 |
| **LOSS FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (6922753) |  | (6922753) |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | - | - | - |
| **NET LOSS** | $(6922753) | $- | $(6922753) |
| **NET LOSS PER SHARE** |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and Diluted loss per share: | $(0.82) |  | $(0.12) |
| **WEIGHTED AVERAGE SHARES OUTSTANDING** | 8400000 |  | 55410337 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |<br>**Historical** | **Other**<br>**Transaction**<br>**Adjustments** | **Other**<br>**Transaction**<br>**Adjustments** |<br>**Pro Forma** |
|  | | **(1)** | **(2)** | |
| **ASSETS** |  |  |  |  |
| CURRENT ASSETS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $1215439 | $- | $- | $1215439 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 873691 |  |  | 873691 |
| &nbsp;&nbsp;&nbsp;Receivable – Participation Agreement | 1597632 |  |  | 1597632 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1041931 |  |  | 1041931 |
| &nbsp;&nbsp;&nbsp;Inventory | 103324 | - | - | 103324 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 4832017 | - | - | 4832017 |
| NON-CURRENT ASSETS |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 3156992 |  |  | 3156992 |
| &nbsp;&nbsp;&nbsp;Capitalized drilling costs | 494408 |  |  | 494408 |
| &nbsp;&nbsp;&nbsp;Oil and gas reserves | 5358850 |  |  | 5358850 |
| &nbsp;&nbsp;&nbsp;Right of use asset - operating leases | 236390 |  |  | 236390 |
| &nbsp;&nbsp;&nbsp;Right of use asset – financing leases | 184532 |  |  | 184532 |
| &nbsp;&nbsp;&nbsp;Goodwill | 2100374 |  |  | 2100374 |
| &nbsp;&nbsp;&nbsp;Other assets | 13465 | - | - | 13465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 11445011 | - | - | 11445011 |
| TOTAL ASSETS | $16277028 | $- | $- | $16277028 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |  |  |
| CURRENT LIABILITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1306839 | $- | $- | $1306839 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 241853 |  |  | 241853 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | 12353541 |  |  | 12353541 |
| &nbsp;&nbsp;&nbsp;Deferred liabilities | 3243153 |  |  | 3243153 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability - operating leases | 145476 |  |  | 145476 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability – financing leases | 29020 |  |  | 29020 |
| &nbsp;&nbsp;&nbsp;Convertible note payable, net of discount | 582569 |  |  | 582569 |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 65518 | - | - | 65518 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 17967969 |  |  | 17967969 |
| NON-CURRENT LIABILITIES |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset retirement obligation | 671135 |  |  | 671135 |
| &nbsp;&nbsp;&nbsp;Lease liability - operating leases, net of current portion | 4179 |  |  | 4179 |
| &nbsp;&nbsp;&nbsp;Lease liability – financing leases, net of current portion | 123550 |  |  | 123550 |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 143953 | - | - | 143953 |
|  | 942817 |  |  | 942817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 18910786 | - | - | 18910786 |
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, Series A, par value | 1 |  | (1) |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, Series B, par value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, Series C, par value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, par value | 1007 | 477 | 4224 | 5708 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 41912737 | (477) | (4223) | 41908037 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (44547503) | - | - | (44547503) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | (2633758) | - | - | (2633758) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $16277028 | $- | $- | $16277028 |

---

Beginning October 19, 2022 up through November 8, 2022, the Company sold 190.2726308 Units for a total purchase price of $4,756,816. See "The Private Placement."

The acquisition of White River Holdings was considered a reverse merger. In accordance with ASC 805-40-45-1, the consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (White River Energy Corp) but described in the notes to the financial statements as a continuation of the financial statements of the legal subsidiary (White River Holdings Corp), with one adjustment, which is to retroactively adjust the accounting acquirer's legal capital to reflect the legal capital of the accounting acquiree (White River Energy Corp). That adjustment is required to reflect the capital of the legal parent. Comparative information presented in the consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent.

Under ASC 805-40-45-2, the consolidated financial statements represent the continuation of the legal subsidiary except for the capital structure, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The assets and liabilities
 of the legal subsidiary recognized and measured at their precombination carrying amounts;

(b) The assets and liabilities
 of the legal parent recognized and measured in accordance with the guidance in this topic applicable to business combinations (ASC
 805);

(c) The retained earnings and
 other equity balances of the legal subsidiary before the business combination;

(d) The amount recognized as
 issued equity interests in the consolidated financial statements determined by adding the issued equity interest of the legal subsidiary
 outstanding immediately before the business combination to the fair value of the legal parent determined in accordance with the guidance
 in ASC 805 applicable to business combinations. However, the equity structure reflects the equity structure of the legal parent,
 including the equity interests the legal parent issued to effect the combination. Accordingly, the equity structure of the legal
 subsidiary is restated using the exchange ratio established in the acquisition agreement to reflect the number of shares of the legal
 parent issued in the reverse acquisition.

The Company acquired White River Holdings for 1,200 shares of Series A. On an as converted basis, the 1,200 Series A shares convert to 42,253,521 shares of common stock, without giving effect to the 1,000 Fractional Shares. The 1,200 shares of Series A were issued in a share exchange. The Series A shares are reflected in the Company's historical financial statements in a manner consistent with having applied reverse merger accounting.

On July 25, 2022, the Company completed its acquisition of White River Holdings. As a result of this transaction, which is accounted for as a reverse merger, White River Holdings is a wholly owned subsidiary of the Company (the "Merger"). In accordance with the terms of the Merger, at the effective time of the Merger, each outstanding share of the common stock of White River was exchanged for the 1,200 shares of Series A Preferred Stock of the Company. This exchange of shares and the resulting controlling ownership of White River Energy Corp constitutes a reverse acquisition resulting in a recapitalization of White River Holdings and purchase accounting being applied to White River Energy Corp under ASC 805 due to White River being the accounting acquirer and White River Energy Corp, being deemed an acquired business. This requires financial reporting from the Merger close date forward to reflect only the historic consolidated results of White River Holdings and to include the consolidated results for White River Energy Corp and subsidiaries from July 25, 2022 forward.

The primary reasons White River Holdings consummated the merger with the Company were the opportunity to immediately become a public company without the process of doing its own initial public offering, thereby affording it the opportunity to more quickly raise capital and provide liquidity options to its stockholders, and at the same time acquiring the infrastructure required of a public company run by people experienced in investor relations and the public company regulatory compliance issues and filings required by virtue of appointing certain of Ecoark's executive officers as executive officers of the Company. The previously existing businesses of the Company at the time of the Merger, consisting of Norr and Elysian, were sold within 60 days of the Merger taking place.

The unaudited pro forma condensed consolidated financial statements have been prepared to include other transaction adjustments to reflect the financial condition and results of operations as if White River Holdings were operating as a public company for all the periods presented. Our historical financial statements included cost allocations from Ecoark as noted below.

Management does not believe there are any transaction accounting or autonomous entity adjustments necessary to be included in the unaudited pro forma information presented herein as the pro forma adjustments noted herein are due to the effects of the capital changes that have either subsequently occurred or that are expected to occur upon the effective date of the registration statement. We have identified three transaction adjustments as noted below. Management has determined that there are no other material changes to be made to the historical financial statements as a result of the acquisition of White River Energy Corp by White River Holdings Corp, as the historical financial statements represent the continuation of White River Holdings Corp as this is considered a reverse merger and White River Holdings Corp is the accounting acquirer.

White River Holdings has included in their historical columns certain operating expenses and other income (expense) from Ecoark that have been allocated to them in the year ended March 31, 2022, which are part of the Condensed Consolidated Statement of Operations for the year ended March 31, 2022. Commencing April 1, 2022, White River Holdings included in their historical financial statements, all expenses that were previously allocated to them. The allocations represented charges incurred by Ecoark for certain corporate, infrastructure and shared services expenses, including legal, human resources, payroll, finance and accounting, employee benefits, insurance, information technology, telecommunications, treasury, and other expenses. Where possible, these charges were allocated based on direct usage, with the remainder allocated on a pro rata basis of headcount, asset, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented pursuant to SAB Topic 1.B.1. The allocations may not, however, reflect the expense White River Holdings would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that White River Holdings will incur in the future or would have incurred if White River Holdings had obtained these services from a third party.

The unaudited pro forma condensed financial information is for informational purposes only and does not purport to represent what our financial position and results of operations actually would have been had the reverse merger of White River Holdings not occurred, or to project our financial performance for any future period. Our historical financial statements have been derived from our historical accounting records and reflect certain allocation of expenses as noted above.

The unaudited pro forma condensed financial information reported below should be read in conjunction with the "Management's Discussion and Analysis of Financial Condition and Results of Operations," the historical financial statements and the corresponding notes included elsewhere in this prospectus.

**NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**Transaction Accounting Adjustments:**

There were no transaction accounting adjustments identified by Management.

**Autonomous Entity Adjustments:**

There were no autonomous entity adjustments identified by Management.

**Other Transaction Adjustments:**

&nbsp;&nbsp;&nbsp;&nbsp;(1) To
 record the issuance of 4,756,841 shares of common stock in conversion of the 190.2726308
 Series C preferred shares. On the Unaudited Condensed Consolidated Balance Sheet as of December
 31, 2022, this adjustment is #1. No effect has been given to the exercise of the warrants
 in the Private Placement. It is anticipated that the conversion of the Series C preferred
 shares will take place upon the effective registration of this Form S-1.

&nbsp;&nbsp;&nbsp;&nbsp;(2) To
 record the issuance of 42,253,521 shares of common stock in conversion of the 1,200 Series
 A preferred shares, without giving effect to the 1,000 Fractional Shares issued to
 Ecoark in the reverse merger transaction when the Company acquired White River Holdings.
 On the Unaudited Condensed Consolidated Balance Sheet as of December 31, 2022, this adjustment
 is #2. It is anticipated that the conversion of the Series A preferred shares will take place
 upon the effective registration of this Form S-1.

(3) We
 anticipate no tax adjustments as a result of the transactions reflected herein.

Each share of Series C has a stated value of $25,000 (the "Stated Value"), and will automatically convert into shares of the Company's common stock upon the earlier to occur of (i) the effectiveness of the Registration Statement, of which this Prospectus forms a part, registering the sale by the holder of the shares of common stock issuable upon conversion of the Series C, and (ii) December 31, 2023, with the number of shares of Common Stock to be determined by dividing the Stated Value by the lower of (A) $1.00 and (B) 80% of the 30-day volume-weighted average price, or VWAP, for the period ending on the 10th trading day immediately preceding such date, subject to adjustment.

**Management Adjustments:**

Management adjustments are optional to include.

We believe there are no material adjustments that need to be made to the unaudited pro forma condensed financial statements to enhance an understanding of the pro forma effects of the proposed transaction. The adjustments are limited to the effect of such synergies and dis-synergies on the historical financial statements that form the basis for the pro forma statements of operations as if the synergies and dis-synergies existed as of the beginning of the fiscal year presented.

**Earnings (Loss) Per Share:**

The pro forma weighted average number of shares outstanding of our common stock used to compute basic earnings per share are as follows for both the nine months ended December 31, 2022 and year ended March 31, 2022.

EPS Reconciliations:

For the year ended March 31, 2022:

---

| | |
|:---|:---|
| Historical weighted average shares outstanding | 8400000 |
| Shares to be issued in conversion of the Series A preferred stock | 42253521 |
| Shares to be issued in conversion of the Series C preferred stock | 4756841 |
| Pro forma weighted average shares outstanding | 55410362 |

---

For the nine months ended December 31, 2022:

---

| | |
|:---|:---|
| Historical weighted average shares outstanding | 10066667 |
| Shares to be issued in conversion of the Series A preferred stock | 42253521 |
| Shares to be issued in conversion of the Series C preferred stock | 4756841 |
| Pro forma weighted average shares outstanding | 57077029 |

---

**THE SPIN-OFF**

Background

Ecoark plans to effect a Spin-Off, which will be a distribution of the 42,253,521 shares of White River common stock issuable to Ecoark upon conversion of the Series A, plus up to 1,000 Fractional Shares, which are collectively referred to herein as the Spin-Off Shares. The Series A becomes convertible upon the effectiveness of the Registration Statement of which this Prospectus is a part.

The Ecoark Board has fixed the Record Date for the Spin-Off at September 30, 2022. The ratio, based on 42,253,521 Spin-Off Shares divided by the 32,614,151 shares of Ecoark common stock outstanding and underlying the outstanding Ecoark convertible preferred stock (without taking into account the beneficial ownership limitations in the Ecoark preferred stock) as of the Record Date, is 1.295557900618 White River Spin-Off Shares per Ecoark share of common stock. The estimated distribution date for the Spin-Off is April 17, 2023 (the "Distribution Date"). However, because of a 4.99% beneficial ownership blocker (the "Blocker") applicable to the holder of the Ecoark convertible preferred stock, not all of the shares that otherwise would have been distributable will be issued on the Distribution Date; the balance will be distributed to a preferred stockholder of Ecoark in the future in compliance with the Blocker. See below under "Number of Shares Ecoark Stockholders Will Receive." For the issuance of Fractional Shares, see below under "Treatment of Fractional Shares."

Completion of the Spin-Off is subject to the satisfaction, or the Ecoark Board's waiver, to the extent permitted by law, of a number of conditions. In addition, Ecoark may at any time until the distribution decide to abandon the distribution or modify or change the terms of the distribution. For a more detailed discussion, see below under "Conditions to the Spin-Off."

**Reasons for the Spin-Off**

The Ecoark Board has reviewed various factors, including the company's portfolio and capital allocation options with the goal of enhancing long-term stockholder value and determined that the Spin-Off is in the best interests of Ecoark and its stockholders. The potential benefits considered by the Ecoark Board in making the determination to consummate the Spin-Off include the following:

● <u>Greater Focus and Enhanced Operational Agility</u>. The Spin-Off will permit both us and Ecoark and the respective management teams to more effectively focus on pursuing their own distinct operating priorities and strategies.

● <u>Separate Capital Structures and Allocation of Financial Resources</u>. Each of Ecoark and White River has different cash flow structures and capital requirements. The separation will permit each company to allocate its financial resources to meet the unique needs of its businesses and intensify the focus on its distinct operating and strategic priorities. The separation will also give each business its own capital structure and allow it to manage capital allocation and adopt distinct capital return strategies. Further, the separation will eliminate internal competition for capital between the two businesses which are under common management control and enable each business to implement a capital structure tailored to its strategy and business needs.

● <u>Improved Alignment of Management Incentives and Performance</u>. The separation will allow each company to more effectively recruit, retain and motivate employees, including through the use of equity-based compensation that more closely reflects and aligns management and employee incentives with specific business objectives, financial goals and business attributes. To the extent that the separate equity awards are more attractively valued, this would further benefit each company.

 

● <u>Enhanced Strategic Opportunities</u>. The separation will provide each of Ecoark and White River with its own capital structure and asset base that can be used to facilitate capital raising and to pursue potential acquisitions, strategic transactions and other opportunities that are more closely aligned with each company's strategic goals and expected growth opportunities. To the extent that the separate attributes are more attractively valued and aligned with the respective goals of each company, this would further increase these benefits to each company.

● <u>Changes to Ecoark</u>. Ecoark has publicly disclosed that it intends to spin-off each of its operating subsidiaries, although it may not spin-off of Agora Digital Holdings, Inc., which previously was a Bitcoin mining company until it ceased operations when the Bitcoin market crashed earlier in 2022, or Zest Labs, Inc. which holds technology and intellectual property rights which are the subject of ongoing litigation. On March 6, 2023, Ecoark entered into a share exchange agreement with Ault Alliance, Inc. ("Ault") [NYSE American: AULT] and certain minority stockholders of BitNile.com, Inc ("BNC") under which Ecoark acquired BNC in exchange for convertible preferred stock. On June 8, 2022, Ecoark raised $12 million from the sale of convertible preferred stock to a subsidiary of Ault. Ault is receiving 5,749,810 shares from the Spin-Off subject to the effect of the Blocker.

● <u>Clearer Investment Identities</u>. The separation will allow investors to more clearly understand the separate business models, financial profiles and investment identities of the two companies and to invest in each based on a better appreciation of these characteristics. Each company may appeal to different types of investors who may differ from Ecoark's current investors. Following the separation, the separate management teams of each of the two companies are expected to be better positioned to implement goals and evaluate strategic opportunities in light of the expectations of the specific investors in that individual company's market.

**When and How You Will Receive Our Shares**

Ecoark will distribute to its common and preferred stockholders, as a pro rata dividend, 42,253,521 shares of our common stock for every share of Ecoark common stock outstanding on a fully diluted basis as of September 30, 2022, the Record Date for the Spin-Off.

Prior to the Spin-Off, subject to satisfaction of the conversion conditions set forth in the Series A, the Series A held by Ecoark will convert into shares of common stock, and Ecoark will then deliver those shares of our common stock to the distribution agent. VStock Transfer, LLC will serve as distribution agent in connection with the distribution and as transfer agent and registrar for our common stock. Because the 42,253,521 shares of our common stock issuable to Ecoark upon conversion of the Series A is in excess of the number of shares of Ecoark common stock entitled to receive our shares on a fully-diluted basis, Ecoark stockholders will receive our shares at a ratio of 1.295557900618. Further, as more fully described below under "Treatment of Fractional Shares," any fractional shares that would have otherwise been distributable to Ecoark stockholders in the Spin-Off by virtue of that ratio will instead be rounded up to the nearest whole share.

If you own Ecoark common stock or preferred stock as of the close of business on the Record Date, the shares of our common stock that you are entitled to receive in the Spin-Off will be issued to your account as follows:

● <u>Registered stockholders</u>. If you own your shares of Ecoark common stock or preferred stock directly through Ecoark's transfer agent, you are a registered stockholder. In this case, the distribution agent will credit the shares of our common stock you receive in the distribution by way of direct registration in book-entry form to a new account with our transfer agent. Registration in book-entry form refers to a method of recording share ownership where no physical stock certificates are issued to stockholders, as is the case in the distribution. You will be able to access information regarding your book-entry account for our shares at ecoark.info or by calling (212) 828-8436. Commencing on or shortly after the Distribution Date, the distribution agent will mail to you an account statement that indicates the number of shares of our common stock that have been registered in book-entry form in your name. We expect it will take the distribution agent up to two weeks after the Distribution Date to complete the distribution of the shares of our common stock and mail statements of holding to all registered stockholders.

● <u>"Street name" or beneficial stockholders</u>. If you own your shares of Ecoark common stock or preferred stock beneficially through a bank, broker or other nominee, the bank, broker or other nominee holds the shares in "street name" and records your ownership on its books. In this case, your bank, broker or other nominee will credit your account with the shares of our common stock that you receive in the distribution on or shortly after the Distribution Date. We encourage you to contact your bank, broker or other nominee if you have any questions concerning the mechanics of having shares held in "street name."

If you sell any of your shares of Ecoark stock on or before the Distribution Date, the buyer of those shares may in some circumstances be entitled to receive the shares of our common stock to be distributed in respect of the Ecoark shares you sold. See "Trading Prior to the Distribution Date" for more information.

We are not asking Ecoark stockholders to take any action in connection with the Spin-Off. We are not asking you for a proxy and request that you not send us a proxy. We are also not asking you to make any payment or surrender or exchange any of your shares of Ecoark common stock or preferred stock for shares of our common stock. The number of outstanding shares of Ecoark common stock or preferred stock will not change as a result of the Spin-Off, except for the Series A which will convert into the Spin-Off Shares.

**Number of Shares Ecoark Stockholders Will Receive**

On the Distribution Date, each record holder of Ecoark common stock will be entitled to receive 1.295557900618 shares of our common stock for every share of Ecoark common stock held as of the Record Date.

With respect to the Ecoark convertible preferred stock, because of the 4.99% beneficial ownership limitation contained in the Certificate of Designation for that series of preferred stock, the holder will initially only receive approximately 2,355,000 shares of our common stock, and the remaining approximately 3,394,810 shares of our common stock to which it is or may become entitled will be held by us or the distribution agent in abeyance until the earlier to occur of (i) such time as the preferred stockholder's receipt of all or any portion of those shares would not cause it to exceed the 4.99% beneficial ownership limitation, in which case the additional shares will not cause the holder to exceed that percentage, and (ii) such time as the preferred stockholder as provided us and Ecoark with 61 days' notice of its intent to increase its beneficial ownership to up to 9.99%, in which case the additional shares receivable by the holder on or after the end of the 61 day-period will not cause the holder exceed that increased percentage. As a result of this, each time PIPE Shares are sold, unless the Ecoark preferred stockholder transfers shares of our common stock it holds, the number of Spin-Off Shares distributable to the preferred stockholder will increase accordingly. If the recently announced reverse merger with another Ault subsidiary closes, we expect the Blocker will be cancelled.

**Treatment of Fractional Shares**

Because the 42,253,521 shares of our common stock issuable to Ecoark upon conversion of the Series A is in excess of the number of shares of Ecoark common stock entitled to receive our shares on a fully-diluted basis, Ecoark stockholders will receive our shares at a ratio of 1.295557900618-for-one. By virtue of this ratio, some or most of the Spin-Off Shares would have needed to be divided into fractions to effect that Spin-Off ratio for some of the Ecoark stockholders. However, instead of dividing and distributing fractional Spin-Off Shares, any fractions of Spin-Off Shares that would have otherwise been distributable to Ecoark stockholders in the Spin-Off by virtue of that ratio will instead be rounded up to the nearest whole share. In order to permit this approach, the Company has agreed to issue Ecoark Fractional Shares for distribution to such stockholders. However, because each such stockholder will only be entitled to receive one Fractional Share by virtue of this rounding approach, we expect the ultimate number of Fractional Shares so issued to be less than 1,000.

**No Transition Services Agreement**

Because we have operated independently from Ecoark since our acquisition of White River Holdings in late July 2022 and are not dependent upon Ecoark for the provision of any services, we have elected not to enter into a Transition Services Agreement which under normal circumstances would require Ecoark to provide services to us for a transitionary period in exchange for payment of certain fees. We do, however, have common management in that Ecoark's Chief Executive Officer and Chief Financial Officer are our senior executives as described in this Prospectus. Although Ecoark recently closed a reverse merger transaction as described elsewhere in this Prospectus, we expect that our executive officers will remain as executive officers of Ecoark until after the Spin-off since a majority of our Board of Directors will be unaffiliated with Ault until Ecoark stockholders approve the reverse merger. The lack of a Transition Services Agreement subjects us to certain risks and uncertainties with respect to the Spin-Off. See the risk factor titled "Because we have not entered into a Transition Services Agreement with Ecoark, we may encounter certain risks which could result in damages to us at page 7."

**Results of the Spin-Off**

After the Spin-Off, we will continue as an independent, publicly-traded company. Immediately following the Spin-Off, we expect to have approximately 53,507,269 shares of our common stock outstanding, based on the number of Ecoark shares of common stock outstanding and underlying the Ecoark preferred stock on the Record Date, without giving effect to the issuance of any Fractional Shares. This amount gives effect to the beneficial ownership limitations in the Ecoark convertible preferred stock and the issuance of PIPE Shares to the Selling Stockholders pursuant to conversion of the Series C which automatically convert upon the effectiveness of the Registration Statement of which this Prospectus forms a part, subject to beneficial ownership limitations. This amount does not give effect to the exercise of any Warrants, or the closing of the reverse merger referred to above. Any outstanding shares of our common stock in excess of that number following the Spin-Off may be returned to the status of unauthorized and unissued shares of our common stock, or may be held by us as treasury shares, as may be determined by our Board. The Spin-Off will not affect the number of outstanding shares of Ecoark common stock or preferred stock, or any common stock equivalents or any rights of Ecoark stockholders. However, following the distribution, the equity value of Ecoark will no longer reflect the value of the White River capital stock it held prior to the Spin-Off, including any value that may have been ascribed to that amount based on White River's business. Although Ecoark believes that the Spin-Off offers its stockholders greater long-term value, there can be no assurance that the combined trading prices of the Ecoark common stock and our common stock underlying the Series A will equal or exceed what the trading price of Ecoark common stock would have been in absence of the Spin-Off.

**Trading Prior to the Distribution Date**

It is possible that a "when-issued" market in our common stock may develop prior to the Distribution Date. "When-issued" trading refers to a sale or purchase made conditionally on or before the Distribution Date because the securities of the spun-off entity have not yet been distributed. If you own shares of Ecoark common stock or preferred stock at the close of business on the Record Date, you will be entitled to receive shares of our common stock in the Distribution. You may trade this entitlement to receive our Shares, without the shares of Ecoark common stock or preferred stock you own, on the "when-issued" market. We expect "when-issued" trades of our common stock to settle within two trading days after the Distribution Date. On the first trading day following the Distribution Date, we expect that any "when-issued" trading of our common stock will end and "regular-way" trading will begin.

We also anticipate that if a when-issued market develops prior to the Distribution Date, there may be two markets in Ecoark common stock: a "regular-way" market and an "ex-distribution" market. Shares of Ecoark common stock that trade on the regular-way market will trade with an entitlement to receive shares of our common stock in the distribution. Shares that trade on the ex-distribution market will trade without an entitlement to receive shares of our common stock in the distribution. Therefore, if you sell shares of Ecoark common stock in the regular-way market up to and including the Distribution Date, you will be selling your right to receive shares of our common stock in the distribution. However, if you own shares of Ecoark common stock at the close of business on the Record Date and sell those shares on the ex-distribution market up to and including the Distribution Date, you will still receive the shares of our common stock that you would otherwise be entitled to receive in the distribution.

If "when-issued" trading occurs, the quotation for our common stock is expected to be under a trading symbol different from our regular-way trading symbol. We will announce our "when-issued" trading symbol when and if it becomes available. If the Spin-Off does not occur, all "when-issued" trading will be null and void.

**Conditions to the Spin-Off**

We expect that the Spin-Off will be effective on the Distribution Date (although there may be a delay in the delivery of the spun-off shares to Ecoark stockholders), provided that the following conditions shall have been satisfied or waived by the Ecoark Board (if any such waiver permitted by law):

● The Ecoark Board shall have approved the Distribution and not withdrawn such approval, and shall have declared the dividend of our common stock to Ecoark stockholders.

● The Registration Statement, of which this Prospectus is a part, shall be effective under the Securities Act, and no stop order suspending the effectiveness of the Registration Statement shall be in effect and no proceedings for that purpose shall be pending before or threatened by the SEC.

● No order, injunction or decree issued by any governmental authority of competent jurisdiction or other legal restraint or prohibition preventing consummation of the distribution shall be in effect, and no other event outside the control of Ecoark shall have occurred or failed to occur that prevents the consummation of the distribution.

● No other events or developments shall have occurred prior to the distribution that, in the judgment of the Ecoark Board, would result in the distribution having a material adverse effect on Ecoark or its stockholders.

Any of the above conditions may be waived by the Ecoark Board to the extent such waiver is permitted by law. If the Ecoark Board waives any condition prior to the effective date of this Registration Statement, of which the Prospectus forms a part, or change the terms of the distribution, and the result of such waiver or change is material to Ecoark stockholders, we will file an amendment to the Registration Statement to revise the disclosure in this Prospectus accordingly. In the event that Ecoark waives a condition or changes the terms of the distribution after the Registration Statement becomes effective and such waiver or change is material to Ecoark stockholders, we expect Ecoark would communicate such waiver or change to Ecoark's stockholders by filing a Current Report on Form 8-K with the SEC and/or a press release describing the waiver or change.

The fulfillment of the above conditions will not create any obligation on Ecoark's part to complete the Spin-Off. We are not aware of any material federal, foreign or state regulatory requirements with which we must comply, other than SEC rules and regulations, or any material approvals that we must obtain, in connection with the distribution. Ecoark may at any time until the distribution decide to abandon the distribution or modify or change the terms of the distribution.

**Consequences to U.S. Holders of Ecoark Capital Stock**

The following is a summary of the material U.S. federal income tax consequences to holders of Ecoark capital stock in connection with their receipt of shares of our common stock in the Spin-Off. This summary is based on the Internal Revenue Code of 1986 (the "Code"), the Treasury Regulations promulgated under the Code and judicial and administrative interpretations of those laws, in each case as in effect and available as of the date of this Prospectus and all of which are subject to change at any time, possibly with retroactive effect. Any such change could affect the tax consequences described below.

This summary is limited to holders of Ecoark capital stock that are U.S. Holders, as defined immediately below, that hold their Ecoark capital stock as a capital asset. A "U.S. Holder" is a beneficial owner of Ecoark capital stock that is, for U.S. federal income tax purposes:

● an individual who is a citizen or a resident of the United States;

● a corporation, or other entity taxable as a corporation for U.S. federal income tax purposes, created or organized under the laws of the United States or any state thereof or the District of Columbia;

● an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

● a trust if (1) a court within the United States is able to exercise primary jurisdiction over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or (2) in the case of a trust that was treated as a domestic trust under law in effect before 1997, a valid election is in place under applicable Treasury Regulations.

This summary is for general information only and is not tax advice. It does not discuss all tax considerations that may be relevant to stockholders in light of their particular circumstances, nor does it address the consequences to stockholders subject to special treatment under the U.S. federal income tax laws, such as:

● dealers or traders in securities or currencies;

● tax-exempt entities;

● banks, financial institutions or insurance companies;

● real estate investment trusts, regulated investment companies or grantor trusts;

● persons who acquired Ecoark capital stock pursuant to the exercise of employee stock options or otherwise as compensation;

● stockholders who own, or are deemed to own, 10% or more, by voting power or value, of Ecoark equity;

● stockholders owning Ecoark capital stock as part of a position in a straddle or as part of a hedging, conversion, synthetic security, integrated investment, constructive sale transaction or other risk reduction transaction for U.S. federal income tax purposes;

● persons who are subject to the alternative minimum tax;

● persons whose functional currency is not the U.S. dollar;

● certain former citizens or long-term residents of the United States;

● persons who are subject to special accounting rules under Section 451(b) of the Code;

● persons who own Ecoark capital stock through partnerships or other pass-through entities; or

● persons who hold Ecoark capital stock through a tax-qualified retirement plan.

This summary is not a complete analysis or description of all potential U.S. federal income tax consequences of the distribution. It does not address any tax consequences arising under the Medicare tax on net investment income or the Foreign Account Tax Compliance Act (including the Treasury Regulations promulgated thereunder and intergovernmental agreements entered into pursuant thereto or in connection therewith). In addition, it does not address any U.S. state or local or foreign tax consequences or any estate, gift or other non-income tax consequences of the distribution.

If a partnership, or any other entity treated as a partnership for U.S. federal income tax purposes, holds Ecoark capital stock, the tax treatment of a partner in that partnership will generally depend on the status of the partner and the activities of the partnership. Such a partner or partnership is urged to consult its own tax advisor as to its tax consequences.

**EACH HOLDER OF ECOARK CAPITAL STOCK IS URGED TO CONSULT ITS OWN TAX ADVISOR WITH RESPECT TO THE U.S. FEDERAL, STATE AND LOCAL AND FOREIGN TAX CONSEQUENCES OF THE DISTRIBUTION.**

**General**

Ecoark anticipates that the distribution of the Spin-Off Shares will constitute a taxable transaction for U.S. federal income tax purposes. Neither the Company nor Ecoark expect to obtain a private letter ruling from the IRS, or an opinion of counsel, on whether the distribution will qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code or any other provisions of the Code or Treasury Regulations.

If the distribution is determined to be a taxable event, each U.S. Holder who receives our common stock in the distribution would generally be treated as receiving a distribution in an amount equal to the fair market value of our common stock received, which would generally result in:

● a taxable dividend to the U.S. Holder to the extent of that U.S. Holder's pro rata share of Ecoark's current or accumulated earnings and profits;

● a reduction in the U.S. Holder's basis (but not below zero) in Ecoark capital stock to the extent the amount received exceeds the stockholder's share of Ecoark earnings and profits; and

● a taxable gain from the exchange of Ecoark capital stock to the extent the amount received exceeds the sum of the U.S. Holder's share of Ecoark's earnings and profits and the U.S. Holder's basis in its Ecoark capital stock.

U.S. Holders that have acquired different blocks of Ecoark capital stock at different times or at different prices are urged to consult their tax advisors regarding the allocation of their aggregate adjusted tax basis among, and the holding period of, shares of our common stock distributed with respect to such blocks of Ecoark capital stock.

Alternatively, if the distribution were determined to qualify as a tax-free distribution, then subject to the qualifications and limitations set forth herein, for U.S. federal income tax purposes:

● no gain or loss will be recognized by, or be includible in the income of, a U.S. Holder as a result of the distribution;

● the aggregate tax basis of the Ecoark capital stock and our capital stock held by each U.S. Holder immediately after the distribution will be the same as the aggregate tax basis of the Ecoark capital stock held by the U.S. Holder immediately before the distribution, allocated between the Ecoark capital stock and our common stock in proportion to their relative fair market values on the date of the distribution; and

● the holding period of our common stock received by each U.S. Holder will include the holding period of their Ecoark capital stock, provided that such Ecoark capital stock is held as a capital asset on the date of the distribution.

**Information Reporting**

Treasury Regulations require each Ecoark stockholder that, immediately before the distribution, owned 5% or more (by vote or value) of the total outstanding stock of Ecoark or stockholders whose basis in their Ecoark capital stock equals or exceeds $1,000,000 to attach to such stockholder's U.S. federal income tax return for the year in which the distribution occurs a statement setting forth certain information related to the distribution.

**Consequences to Ecoark**

The following is a summary of the material U.S. federal income tax consequences to Ecoark in connection with the Spin-Off that may be relevant to holders of Ecoark capital stock.

If the distribution is determined not to qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code, then Ecoark will recognize gain equal to the excess of the fair market value of our common stock distributed to Ecoark stockholders over Ecoark's tax basis in our common stock.

If the distribution were to qualify for non-recognition of gain or loss under Section 355 and related provisions of the Code, no gain or loss would be recognized by Ecoark as a result of the distribution (other than income or gain arising from any imputed income or other adjustment to Ecoark, us or our respective subsidiaries if and to the extent that the Spin-Off is determined to have terms that are not at arm's length).

As discussed above, Ecoark has not received a private letter ruling from the IRS or an opinion of counsel concerning the tax consequences of the distribution.

**THE PRIVATE PLACEMENT**

Overview

Beginning October 19, 2022 through November 8, 2022, the Company entered into a Securities Purchase Agreement, or "SPA" with the Selling Stockholders whereby the Selling Stockholders purchased a total of 190.2726308 Units from the Company, with each Unit consisting of one share of Series C and five-year Warrants to purchase up to 200% of the shares of common stock issuable upon conversion of the Series C, at a purchase price of $25,000 per Unit for a total purchase price of $4,756,816 in the PIPE Offering. The Company is using the net proceeds from the Offering, after Offering expenses and related costs, for working capital and general corporate purposes including oil and gas drilling on the Company's working interests in Louisiana and Mississippi.

Each share of Series C has a stated value of $25,000 (the "Stated Value"), and will automatically convert into shares of the Company's common stock upon the earlier to occur of (i) the effectiveness of the Registration Statement, of which this Prospectus forms a part, registering the sale by the holder of the shares of common stock issuable upon conversion of the Series C, and (ii) December 31, 2023, with the number of shares of Common Stock to be determined by dividing the Stated Value by the lower of (A) $1.00 and (B) 80% of the 30-day volume-weighted average price, or VWAP, for the period ending on the 10th trading day immediately preceding such date, subject to adjustment.

The Warrants are exercisable into 200% of the shares of common stock underlying the Series C contained in the Units purchased by the holder, at an initial exercise price of $1.00 per share (subject to adjustment as provided in the Warrant), beginning at the same time as the Series C converts, and ending on October 19, 2027.

The current estimate of 14,270,523 PIPE Shares and 9,513,682 Warrants assumes that $1.00 is the lower number in the number of shares of common stock underlying both the Series A and the Warrants is tied to that PIPE Securities Formula. If the number of PIPE Shares and Warrants is higher, we intend to file an amendment to the Registration Statement, of which this Prospectus is a part, to reflect the higher amount. The maximum number of PIPE Shares and Warrants will not be determinable 10 trading days prior to the effectiveness of the Form S-1, which we will determine by communications between the Company and its counsel and the Staff of the SEC.

The PIPE Offering was not registered under the Securities Act of 1933 and was exempt from registration pursuant to Section 4(a)(2) thereof and Rule 506(b) promulgated thereunder.

Pursuant to a Registration Rights Agreement with the Selling Stockholders, the Company has agreed to register the sale by the Selling Stockholders of the shares of common stock issuable upon conversion of the Series C and exercise of the Warrants. The Company filed the Registration Statement, of which this Prospectus is a part, with the SEC registering the sale of the PIPE Securities by the Selling Stockholders pursuant to the Registration Rights Agreement.

**SELLING STOCKHOLDERS**

This Prospectus covers the Spin-Off of the Spin-Off Shares by Ecoark, as well as the possible resale of PIPE Securities by the Selling Stockholders identified below. The PIPE Shares being offered by the Selling Stockholders are issuable upon conversion of the Series C and exercise of the Warrants. For additional information regarding the issuance of the Series C and Warrants, see the section of this Prospectus entitled "The Private Placement" above. We are registering the PIPE Securities to permit the Selling Stockholders to offer and sell the PIPE Securities from time-to-time. Except as otherwise noted above and under "Related Party Transactions" or "Principal Stockholders," prior to the PIPE Offering the Selling Stockholders have not had any material relationship with us within the past three years.

The Selling Stockholders may pursuant to this Prospectus from time-to-time offer and sell any or all of the Shares to be issued to the Selling Stockholders upon conversion of the Series C and exercise of the Warrants, and/or may sell the Warrants themselves. We do not know how long each Selling Stockholder will hold the PIPE Securities before selling them, and we currently have no agreements, arrangements or understandings with the Selling Stockholders regarding the sale of any of the PIPE Securities.

To our knowledge, none of the Selling Stockholders nor any affiliates has held a position or office, or had any other material relationship, with us or any of our predecessors or affiliates, except as set forth under "Principal Stockholders." As used in this Prospectus, the term "Selling Stockholder" includes each Selling Stockholder and any donees, pledgees, transferees or other successors in interest selling Securities received after the date of this Prospectus from that Selling Stockholder as a gift, pledge or other non-sale related transfer.

The table below lists information regarding the beneficial ownership of the PIPE Securities and Warrants by the Selling Stockholders. The numbers contained in the table below assume that the Series C will convert at $1.00 per share. The number of Warrants (and shares of common stock issuable upon exercise) are fixed at two PIPE Securities Warrants for each PIPE Share and Warrants issuable upon conversion of the Series C.

The first column lists the PIPE Securities beneficially owned by the Selling Stockholders prior to this offering. Each Selling Stockholder may sell all, some or none of the PIPE Shares and Warrants it beneficially owns in this offering. This includes PIPE Shares issuable upon conversion of the Series C and upon exercise of the Warrants. See "Plan of Distribution."

The second column lists the PIPE Shares being offered by this Prospectus by each Selling Stockholder issuable upon conversion of the Series C. The third column lists the numbers of Warrants beneficially owned by each Selling Stockholder which may be sold pursuant to this Prospectus. The fourth column lists the number of PIPE Shares issuable upon exercise of the Warrants which PIPE Shares may be sold pursuant to this Prospectus. We assume all PIPE Shares and/or Warrants will be sold and that the Selling Stockholders shall not beneficially own any shares of our common stock following this Offering.

In accordance with the terms of a Registration Rights Agreement with the Selling Stockholders, this Prospectus covers the resale of up to 14,270,523 PIPE Shares issuable to the Selling Stockholders, in addition to the potential sale by the Selling Stockholders of the up to 9,513,682 Warrants.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Holder** | **PIPE Securities Beneficially Owned Before This Offering and Registered to be Sold in the Offering<sup>(1)(2)(3)</sup>** | **Number of PIPE Shares being Issued upon Conversion of the Series C and Registered to be Sold in the Offering** | **Number of Warrants Registered to be Sold in the Offering** | **Shares Issuable Upon the Exercise of Warrants Registered to be Sold in the Offering** |
| Baisch Revocable Living Trust UAD 09/24/01 | 150000 | 150000 | 100000 | 100000 |
| Kim L Dworak TOD DTD 02/08/2021 | 75000 | 75000 | 50000 | 50000 |
| Kenneth Harpell Carrie Harpell JT TEN | 75000 | 75000 | 50000 | 50000 |
| Douglas Hoefer TOD DTD 05/11/2020 | 300000 | 300000 | 200000 | 200000 |
| Michael P Lewis TOD DTD 03/10/2022 | 3464304 | 3464304 | 2309536 | 2309536 |
| Mark Lenhart TOD DTD 07/13/2021 | 75000 | 75000 | 50000 | 50000 |
| Ryan Pearson | 30000 | 30000 | 20000 | 20000 |
| Alyssa Greene & Jonathan Greene JT TEN | 75000 | 75000 | 50000 | 50000 |
| Matthew Pearson | 45000 | 45000 | 30000 | 30000 |
| B & E Ross Family LLC | 61470 | 61470 | 40980 | 40980 |
| Ruth A Lorsung Revocable Living Trust UAD 02/17/06 | 94617 | 94617 | 63078 | 63078 |
| Brent C Rehm & Tara L Rehm JT TEN | 79611 | 79611 | 53074 | 53074 |
| David B Kern Inheritance Protection Trust UAD 12/05/2_ | 278409 | 278409 | 185606 | 185606 |
| Lawrence Krynski Luwanda Krynski JT TEN | 71553 | 71553 | 47702 | 47702 |
| Perry Smith | 30000 | 30000 | 20000 | 20000 |
| Pamela Madden | 55872 | 55872 | 37248 | 37248 |
| Dean & Brenda Creviston Trust | 41106 | 41106 | 27404 | 27404 |
| The Diana Lyn Kietzman Living Trust UAD 06/25/98 | 82350 | 82350 | 54900 | 54900 |
| Neil R Adcock Trust UAD 10/23/96 | 70983 | 70983 | 47322 | 47322 |
| Kasner Revocable Trust | 33000 | 33000 | 22000 | 22000 |
| Kurt Bachmayer & Lisa Dalke JT TEN | 54000 | 54000 | 36000 | 36000 |
| Ralph & Joyce Bone JT | 75000 | 75000 | 50000 | 50000 |
| Ralph Bone | 75000 | 75000 | 50000 | 50000 |
| Robert & Charity Lewis JT TEN | 15000 | 15000 | 10000 | 10000 |
| Bradley A. Johnson | 6000 | 6000 | 4000 | 4000 |
| Bradley A Johnson & Bryce A Johnson | 6000 | 6000 | 4000 | 4000 |
| Carol Wessler | 37812 | 37812 | 25208 | 25208 |
| Amy Donaldson | 31359 | 31359 | 20906 | 20906 |
| Nepsis Inc | 825000 | 825000 | 550000 | 550000 |
| The Terese E Harwood Lvng TR UAD 01/09/14 | 105000 | 105000 | 70000 | 70000 |
| Joseph H Perra & Sherry Perra JT TEN | 1052640 | 1052640 | 701760 | 701760 |
| Beverly M Gustafson Trust | 44925 | 44925 | 29950 | 29950 |
| Kenneth J Gustafson Trust | 38562 | 38562 | 25708 | 25708 |
| Cory Wong | 45000 | 45000 | 30000 | 30000 |
| Abram & Cindy Lawrence | 120000 | 120000 | 80000 | 80000 |
| Don Kyle TOD DTD 04/28/2021 | 131580 | 131580 | 87720 | 87720 |
| Samuel Thacker III TOD DTD 05/26/2021 | 43800 | 43800 | 29200 | 29200 |
| Earl O'neal Henson Janet Ann Henson TEN COM | 204480 | 204480 | 136320 | 136320 |
| Daryl Munson Susan Munson JT TEN | 52947 | 52947 | 35298 | 35298 |
| Stanley W Smith & Alice T Vaszquez-Smith JT TE | 98481 | 98481 | 65654 | 65654 |
| Susan W Taylor & Barbara J Tolliver | 114915 | 114915 | 76610 | 76610 |
| Adele Smith | 25734 | 25734 | 17156 | 17156 |
| Cindy Finn | 40989 | 40989 | 27326 | 27326 |
| Donald H Leach & Karen J Leach | 48486 | 48486 | 32324 | 32324 |
| Peter R. Walchenbach Melinda McCoy | 46233 | 46233 | 30822 | 30822 |
| Jonathan Green & Aya Itazu | 44376 | 44376 | 29584 | 29584 |
| Beth Negrey | 31239 | 31239 | 20826 | 20826 |
| Jason T Mathis Samantha J Mathis | 30177 | 30177 | 20118 | 20118 |
| Joseph Burnett Melissa Todd JT TEN | 60255 | 60255 | 40170 | 40170 |
| The Lita G Hart 2009 Irrevocable Trust UAD 11/24/09 | 90000 | 90000 | 60000 | 60000 |
| John B Hart & Lita Hart JT TEN | 30000 | 30000 | 20000 | 20000 |
| Beersheba LLC | 180000 | 180000 | 120000 | 120000 |
| Pacific Diazo Trust UAD 11/29/07 | 60000 | 60000 | 40000 | 40000 |
| The Ennes Family Trust | 15000 | 15000 | 10000 | 10000 |
| Beatrice Skinner 2012 Irrev Tr Fbo Judy A Mccune UAD 01/06/ | 75000 | 75000 | 50000 | 50000 |
| Lindsey Financial & Insurance Services Inc | 150000 | 150000 | 100000 | 100000 |
| BBD Holdings LLC | 30900 | 30900 | 20600 | 20600 |
| STL Partners LLC | 106140 | 106140 | 70760 | 70760 |
| Oceans Edge LLC | 19515 | 19515 | 13010 | 13010 |
| Gerald R Beland & Diana D Beland TR UAD 04/04/ | 150000 | 150000 | 100000 | 100000 |
| Cherrywood Legacy LLC | 75000 | 75000 | 50000 | 50000 |
| By Low - Sell Hi LLC | 150000 | 150000 | 100000 | 100000 |
| Blue Sky Unlimited LLC | 120000 | 120000 | 80000 | 80000 |
| Lindsey Financial Group Inc | 60000 | 60000 | 40000 | 40000 |
| Verna Mae Trust | 60000 | 60000 | 40000 | 40000 |
| Blue Sky Assurance S Corp | 36000 | 36000 | 24000 | 24000 |
| Lindsey Financial Inc | 24000 | 24000 | 16000 | 16000 |
| James Schnitzius TOD | 30000 | 30000 | 20000 | 20000 |
| Jen Investments LLC | 30000 | 30000 | 20000 | 20000 |
| Jennifer Fishel TOD | 30000 | 30000 | 20000 | 20000 |
| National Outreach Foundation Incorporated | 600000 | 600000 | 400000 | 400000 |
| Carol Diane Jeffers Living Trust DTD 03/26/2020 | 30000 | 30000 | 20000 | 20000 |
| CDJ Enterprises, LLC | 30000 | 30000 | 20000 | 20000 |
| Donald L Carter Jr & Stacey N Carter JT TEN | 90000 | 90000 | 60000 | 60000 |
| Joshua Sale TOD | 120000 | 120000 | 80000 | 80000 |
| Rachel Griffore TOD | 90000 | 90000 | 60000 | 60000 |
| Tim Ahcan | 15000 | 15000 | 10000 | 10000 |
| The Hunter Family Trust UAD 07/02/13 | 53043 | 53043 | 35362 | 35362 |
| Roger D Thompson Joanne L Thompson JT TEN TOD DTD 03/31/2022 | 47862 | 47862 | 31908 | 31908 |
| Bradley A Sharratt TOD DTD 01/05/2022 | 101160 | 101160 | 67440 | 67440 |
| Brian Alex Petry TOD DTD 10/06/2021 | 22191 | 22191 | 14794 | 14794 |
| Christine Petry, TOD DTD 10/06/2021 | 21711 | 21711 | 14474 | 14474 |
| Guy Benninghouse TOD DTD 08/11/2021 | 105000 | 105000 | 70000 | 70000 |
| Jan & Kathy Kiesser Jt Ten | 31350 | 31350 | 20900 | 20900 |
| Michael F Bode & Kathleen S Bode Jt Ten | 28008 | 28008 | 18672 | 18672 |
| Kevin P & Linda Moran WROS TOD | 25185 | 25185 | 16790 | 16790 |
| Tina A. Thomsen TOD | 22548 | 22548 | 15032 | 15032 |
| Balsam Solutions | 30000 | 30000 | 20000 | 20000 |
| Charley & Ryan Black | 35895 | 35895 | 23930 | 23930 |
| Lance Pollard & Mitsuko Pollard | 25167 | 25167 | 16778 | 16778 |
| Rebecca Gore-Clark | 24057 | 24057 | 16038 | 16038 |
| Nancy Martin | 49335 | 49335 | 32890 | 32890 |
| Juan Ramirez & Hsien De Hsieh | 36405 | 36405 | 24270 | 24270 |
| William & Heidi Nordin | 60000 | 60000 | 40000 | 40000 |
| Amy Spray | 34620 | 34620 | 23080 | 23080 |
| Paula Strid | 34272 | 34272 | 22848 | 22848 |
| Yvonne Lunceford | 33462 | 33462 | 22308 | 22308 |
| Chad Field & Terhi Telsavaara | 32256 | 32256 | 21504 | 21504 |
| Erin Hattersley | 22893 | 22893 | 15262 | 15262 |
| Olga Levin | 17949 | 17949 | 11966 | 11966 |
| Anders & Dawn Dillner | 14757 | 14757 | 9838 | 9838 |
| Jeff & Ann McNamara | 150000 | 150000 | 100000 | 100000 |
| Stephen Hordynski | 60000 | 60000 | 40000 | 40000 |
| Dennis Gilbert | 30000 | 30000 | 20000 | 20000 |
| David Aust & Cathy Aust JT TEN | 90000 | 90000 | 60000 | 60000 |
| John Spencer | 30000 | 30000 | 20000 | 20000 |
| Daniel Fenesan | 60000 | 60000 | 40000 | 40000 |
| Lance & Kathy Jameson | 75000 | 75000 | 50000 | 50000 |
| David Iverson | 150000 | 150000 | 100000 | 100000 |
| Jules Najarian | 75000 | 75000 | 50000 | 50000 |
| Mike Rasmussen | 30000 | 30000 | 20000 | 20000 |
| Troy & Kathleen Miller | 150000 | 150000 | 100000 | 100000 |
| Timothy Maroushek | 109077 | 109077 | 72718 | 72718 |
| Dalton Trucking | 172500 | 172500 | 115000 | 115000 |
| Lirio Diaz | 30000 | 30000 | 20000 | 20000 |
| Marioly Alfaro | 60000 | 60000 | 40000 | 40000 |
| Kristi Hendrickson Trust | 300000 | 300000 | 200000 | 200000 |
| Robert Hoefer Trust | 150000 | 150000 | 100000 | 100000 |
| David B. Clark Trust | 300000 | 300000 | 200000 | 200000 |
| Marvin Keith Stitt | 150000 | 150000 | 100000 | 100000 |

---

\* Less than 1%

(1) Beneficial ownership is determined in accordance with Section 13(d) under the Exchange Act and Rule 13d-3 thereunder. It includes all shares which each Selling Stockholder currently has the power to vote and/or sell as of the date of this Prospectus and within 60 days afterwards. Based upon information supplied by or on behalf of each Selling Stockholder, the Company believes that except for the PIPE Securities, the Selling Stockholders do not beneficially own any common stock of the Company.

(2) The PIPE Shares reflected in the above table as to each Selling Stockholder consist of the following: (i) one-third of such PIPE Shares are shares of common stock issuable upon conversion of shares of Series C held by the Selling Stockholder, and (ii) two-thirds of such PIPE Shares are shares of common stock issuable upon exercise of the Warrants held by the Selling Stockholder, which represents 200% warrant coverage. These amounts may be increased based on the PIPE Securities Formula.

(3) This table is calculated assuming that 80% of the 30-day VWAP under the PIPE Securities Formula as of its date is higher than $1.00, such that the $1.00 conversion price applies. To the extent the conversion price is lower than $1.00, the number of shares of common stock underling the Series C and warrants being offered hereby will be higher. This table does not include the Spin-Off Shares issuable upon conversion of the Series A held by Ecoark, which are being distributed to Ecoark's stockholders in the Spin-Off.

**PLAN OF DISTRIBUTION**

Spin-Off

For information on the process and administration of the Spin-Off by Ecoark, see "Spin-Off" beginning on page 35.

PIPE Offering

With respect to the PIPE Securities being sold hereby by the Selling Stockholders, such Selling Stockholders and any of such party's pledgees, assignees and successors-in-interest may from time-to-time sell any or all of their securities covered hereby on the principal trading market or any other stock exchange, market or trading facility on which the Securities are traded or in private transactions. These sales may be at fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling the PIPE Securities:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● settlement of short sales;

● in transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated price per security;

● through the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;

● a combination of any such methods of sale; or

● any other method permitted pursuant to applicable law.

The Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act, if available, rather than under this Prospectus.

Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser) in amounts to be negotiated, but, except as set forth in a supplement to this Prospectus, in the case of an agency transaction not in excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or markdown in compliance with FINRA IM-2440.

In connection with the sale of the Securities, the Selling Stockholders may enter into hedging transactions with broker-dealers or other financial institutions, which may in turn engage in short sales of the Securities in the course of hedging the positions they assume. The Selling Stockholders may also sell Shares short and deliver these Shares to close out their short positions, or loan or pledge the Securities to broker-dealers that in turn may sell these Shares. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the delivery to such broker-dealer or other financial institution of Shares offered by this Prospectus, which Shares such broker-dealer or other financial institution may resell pursuant to this Prospectus (as supplemented or amended to reflect such transaction).

The Selling Stockholders and any broker-dealers or agents that are involved in selling the Securities may be deemed to be "underwriters" within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the Securities purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding, directly or indirectly, with any person to distribute the Securities.

The Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the Securities. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

We agreed to keep this Prospectus effective until the earlier of (i) the date on which the Securities have all been sold or (ii) the date on which the Securities may be sold by the Selling Stockholders without volume or manner-of-sale restrictions under Rule 144, and the conditions of Rule 144(i)(2) have been met, which generally require that the issuer have been subject to the Exchange Act reporting requirements and filed all required reports. The Securities will be sold only through or to registered broker-dealers. In addition, in all states but New York, the Securities covered hereby may not be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously engage in market making activities with respect to the common stock for the applicable restricted period, as defined in Regulation M, prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the common stock by the Selling Stockholders or any other person. We will make copies of this Prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this Prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

**BUSINESS**

Company Overview

White River is a holding company which operates in oil and gas exploration, drilling and production through White River Holdings and our management of the Fund.

In March 2020, the Company acquired the oil and gas exploration operations of White River Holdings and Shamrock Upstream Energy LLC ("Shamrock") from third-parties (including related parties) and simultaneously sold those assets along with other oil and gas assets they held related to transportation services and equipment to Ecoark; on July 25, 2022, the Company re-acquired White River Holdings as Ecoark began to divest its businesses. The main reasons that the Company sold these entities to Ecoark were (a) Ecoark assumed approximately $12,000,000 in debt; (b) Ecoark had better access to capital to properly fund the operations of the entities they acquired including the ability to uplist to the Nasdaq Capital Market and it insisted upon acquiring the oil and gas exploration business; and (c) the Company then lacked the technical expertise to operate the oil and gas exploration business. The Company received 1,789,041 shares of Ecoark common stock (post-split) of which it retained 200,000 shares and transferred the remaining shares to the various selling stockholders of White River Holdings (the Company's current senior officers) and Shamrock. These 200,000 shares were sold prior to the July 25, 2022 acquisition of Holdings. The Company's current Chief Executive Officer was also the former Chief Executive Officer as of the March 2020 transactions, He resigned on July 31, 2020 to become an officer of Ecoark before rejoining the Company as Chief Executive Officer on July 25, 2022.

As of March 2020 , there was only nominal operations in the oil and exploration entities. White River Holdings and Shamrock had acquired oil and gas property leases in Louisiana, Mississippi and Texas along with approximately $12,000,000 in both non-related party and related party debt. The leases acquired had economic value; however significant drilling operations had not yet commenced due to the lack of capital that Ecoark was able to subsequently raise.

Beginning in March 2021, the Company formed an online sporting goods company Norr, and was developing a business plan for the commencement of operations as a retail distributor of cannabis products in California, before it divested those subsidiaries in September 2022. The financial statements contained in this Prospectus do not reflect our former businesses, and instead only reflect our oil and gas exploration and drilling operations business through White River Holdings. Set forth below is an overview of our current and planned operations.

White River Holdings Acquisition

On July 25, 2022, the Company entered into a Share Exchange Agreement with Ecoark and White River pursuant to which the Company acquired White River Holdings from Ecoark and in exchange issued Ecoark 1,200 shares of a new series of Series A of White River. The transaction was treated as a reverse merger for accounting purposes with White River Holdings being the accounting acquirer. Ecoark funded the Company with $3 million at the time of the reverse merger.

Following the reverse merger and the subsequent divestment of our non-oil and gas business in September 2022, our operations consist of generating revenue through oil and gas exploration, production and drilling. Through White River Holdings, the Company is now engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi. In recent years the Company has focused its efforts to a considerable extent on expanding its exploration and production footprint and capabilities by acquiring oil and gas leases, working interests in oil and gas mineral leases, and related assets. We may also expand our energy asset portfolio or engage in other energy-related strategic transactions as they arise, provided we have sufficient capital and market and regulatory conditions otherwise enable favorable to such transactions. Such transactions may serve a number of business objectives, including by seeking to expand our product and service offerings and/or to increase our geographic footprint.

The Company acquired White River Holdings because, prior to the acquisition, the Company was in a very early stage with two development stage businesses, one of which is subject to extensive regulation at the state level. That regulation led to delay. The Company's management and Board of Directors determined to proceed with the acquisition following the Company being approached by Ecoark's management concerning a contemplated spin-off of Ecoark's oil and gas operations, as such an acquisition would permit the Company to be primarily an oil and gas company, and thereby to operate a revenue-generating business with a better opportunity to uplist to a national securities exchange without many of the obstacles the Company then faced as a development stage company.

Our Oil and Gas Operations

Through its wholly-owned operating subsidiary, White River Holdings, the Company is engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi. This subsidiary is engaged in oil and natural gas development, production, acquisition, and exploration activities principally in the above-referenced states. We may also expand our energy asset portfolio or engage in other energy-related strategic transactions as they arise, provided we have sufficient capital and market and regulatory conditions otherwise enable favorable to such transactions. Such transactions may serve a number of business objectives, including by seeking to expand our product and service offerings and/or to increase our geographic footprint.

Using a vertically-integrated business model, we plan to proceed with consistent, timely and efficient execution of our drilling campaigns, work programs and operations, while maintaining a substantial degree of operational control over our properties. We endeavor to execute our operations in a safe and environmentally responsible manner, and to continuously seek ways to reduce our operating cash costs on a per barrel basis. Our exploration and drilling initiatives are primarily conducted in-house, with the principal exceptions being (i) wire line services to obtain exploratory data, (ii) concrete procurement and installation at well sites, (iii) seismic and geophysical services, and (iv) funding and participation rights provided to third parties.

Our White River business is focused on developing and commercializing these holdings and transactions to produce and sell revenue-generating energy resources, particularly oil. Our exploration and drilling operations are principally focused on sand formations rather than shale formations, as the latter are very deep and involve horizontal drilling complexities that sand formations do not. One major advantage of our focus on sand formation is that the wells can be drilled vertically as opposed to the shale wells which are usually lateral. Examples of sand formations the Company operates on through White River Holdings are the Frio Formation of the Texas Gulf Coast Basin which is partially located in Louisiana and Mississippi and has a depth of 3,000 feet, and the Wilcox Formation in Louisiana, which has a depth of 9,000 feet. The Company also has oil and gas mineral leases covering deep levels below the aforementioned sand formations including, but not limited to, the Austin Chalk and Tuscaloosa Marine Shale formations.

The Company has continuous drilling requirements to drill or re-complete a well on its 9,615 Peabody Blackhawk lease every 270 days to keep the lease active. The Company drilled and completed a well in February 2022 on this oil and gas mineral lease and extended the lease to at least August 2023. In February 2022, our Executive Chairman funded Ecoark's drilling obligation. See "Risk Factors at page 4.

**Key Developments**

The Company has continued to grow its oil and gas exploration and drilling, energy transportation business and achieved or experienced the following key developments:

On December 5, 2022, White River Operating LLC (the "Operator"), the Company, and Ault Energy, LLC ("Ault") entered into a Participation Agreement, pursuant to which, the parties agreed to the following: (i) Ault agreed to pay the Company an initial amount of $1,567,632.00 for drilling one or more wells on the Company's mineral lease located in Concordia Parish, Louisiana in exchange for (A) a 37.5% working interest and (B) a 27% net revenue interest in all such wells. Under the Agreement, in the event the test well on the lease is determined to be economically viable, Ault agreed to pay the Company an additional $595,972.45 in costs to complete and produce the test well. Under the Agreement, Ault also agreed to participate in the drilling of the initial test well, and each party may also drill a substitute well if the test well is abandoned prior to reaching the agreed upon depth. Further, for any well drilled after the initial test well and substitute well referenced in the preceding sentence, Ault agreed to the same cost sharing arrangements as provided for the initial test well. The well commenced drilling in November 2022 and reached terminal depths in early January 2023. As of March 7, 2023, Ault owes the Company the sums due under both of these Participation Agreements.

As of March 7, 2023, the Company has 16 productive wells in operation.

On November 22, 2022, the Company entered into two Participation Agreements (each, an "Agreement") with White River E&P 1 LP, a related party referred to elsewhere in this Prospectus as the "Fund", whereby the parties agreed to the following: (i) under the first Agreement, the Fund agreed to pay the Company an initial amount of $1,408,000 for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi in exchange for (A) a 50% working interest and (B) a 32.5% net revenue interest in all such wells (the "Mississippi Agreement"); and (ii) under the second Agreement, the Fund agreed to pay the Company an initial amount of $1,597,632 for drilling one or more wells on the Company's mineral lease located in Concordia Parish, Louisiana in exchange for (A) a 37.5% working interest and (B) a 27% net revenue interest in all such wells (the "Louisiana Agreement"). In addition, under the Louisiana Agreement, in the event the test well on the lease is determined to be economically viable, the Fund agreed to pay the Company an additional $595,972.45 in costs to complete and produce the test well, while the Mississippi Agreement requires an additional $992,963.27 in costs to complete and produce that test well. The Louisiana well commenced drilling in mid-November 2022, reached terminal depths in December 2022 and was logged in January 2023. The logging of the Louisiana well showed significant oil in the Frio formation, so the well began completion procedures in late January 2023 / early February 2023 and is expected to begin producing oil in mid-March 2023. The Mississippi well is expected to commence drilling in the 2<sup>nd</sup> week of March 2023, and is expected to reach terminal depths and be logged by the end of March 2023.

In October 2022, the Company through White River Operating LLC ("WR Ops") and Ault Energy, LLC ("Ault Energy"), a wholly-owned subsidiary of Ault, successfully completed drilling a 9,531 foot well, the Harry O'Neal 20-9 No. 1 (the "O'Neal No. 1 Well"), on White River's oil and gas mineral lease in Holmes County, Mississippi. Initial production results indicated higher than estimated production. Through an exercise of its participation right, Ault executed a participation agreement for a 40% working interest in the O'Neal No. 1 well; White River is currently owed approximately $2,000,000 for Ault's participation in the O'Neal No. 1 well, and is expecting receipt of payment prior to its March 31<sup>st</sup> fiscal year end.

In October 2022, WR Ops borrowed $1,500,000 from and issued a Secured Promissory Note to Align Business Finance, LLC in the principal amount of $1,500,000, and used the proceeds to acquire two oil and gas drilling rigs and related equipment. In December 2022, this note was repaid in full.

White River's most recent drilling project was a 13,500' deep vertical oil well in the Wilcox, Austin Chalk, and Tuscaloosa Marine Shale formations in the Coochie Oil Field in Concordia Parish, LA. White River's next planning drilling project is to drill three consecutive deep vertical drilling projects at approximately 13,000' in the Rodessa and Hosston sand formations on the Pisgah Field Lease in Rankin County, MS.

In September 2022, WR Ops completed a workover project as the operator of record on the Deshotel 24H 001 Well ("Deshotel Well") in the Bayou Jack North Field in Avoyelles Parish, Louisiana. The Deshotel Well was originally drilled and completed by WR Ops in early 2021 as an open-hole lateral Austin Chalk oil and gas well. Production had been inhibited on the Deshotel Well due to a build-up of paraffin in the well's vertical casing and tubing. White River performed a workover procedure on the Deshotel Well, which involved a heavy water flush into the wellbore to remove a substantial paraffin blockage and also installed artificial lift to increase the production rate. The initial results of the workover procedure greatly exceeded expectations with over a 500% increase in current production rates being realized at the Deshotel Well. As the well has returned online, it has averaged approximately 50 barrels per day in 2023 on days the well has pumped.

In August 2022, in connection with drilling efforts on the O'Neal No. 1 Well, White River Holdings purchased two additional drilling rigs, comprised of an additional MD Cowan Super Single drilling rig and an APEX PK drilling rig, for a total purchase price of $1,800,000. The addition of two more drilling rigs to our equipment portfolio resulted in White River owning three drilling rigs and three workover rigs, thereby enhancing the Company's in-house drilling capabilities for projects on up to 30,000' horizontally in formations on our leases, including the Austin Chalk and Tuscaloosa Marine Shale.

On March 4, 2022, White River successfully completed the drilling of an oil project on its 9,615 acre oil and gas mineral lease in the Blackhawk oil field in Concordia Parish, Louisiana on March 4, 2022. White River led the drilling effort in close partnership with a local energy services provider. The completed well was logged March 5, 2022 and had significant shows in the three different zones in the Frio sand formation.

In April 2022, White River Holdings purchased an MD Cowan Super Single drilling rig for $351,813 to add to its three workover rigs it owns. This purchase is expected to enable White River to drill its own vertical wells at both shallow and deep levels. This purchase, together with the recent financing described below, will facilitate the expansion of the Company's drilling program.

White River has recently formed the Fund which will consist of private external general and limited partners consisting of retail accredited and institutional investors who have or will advance proceeds to the fund in exchange for partnership interests therein. Our subsidiary's WR Fund #1 Manager is the managing General Partner of the Fund. The Fund is currently offering up to 4,000 units of partnership interest at a price per unit of $50,000 with a minimum investment of one unit or $50,000 through a five-year closed-end fund structure. The fund is expected to close to new investors at the earlier of June 30, 2023 or the sale of all 4,000 units. Mr. May, our Executive Chairman and Mr. Puchir, our Chief Executive Officer are also serving in the roles as Co-Fund Managers of WR Fund #1 Manager. Proceeds of the Fund will be intended to be used in drilling White River drilling projects whereby White River will retain a 25% promoted working interest in all drilling projects participated in by the Fund, and WR Fund #1 Manager will receive a 10% carried working interest at the successful closure of the Fund and a 1% annual management fee calculated based on the average assets under management each quarter and paid pro rata on a quarterly basis on the last day of each quarter. WR Fund #1 Manager will use the proceeds from the annual management fee to pay for various service functions such as legal, external audit, tax, and fund administration.

White River has made a commitment to acquire the partnership interest of all investor partners in WR Fund #1 at the end of the fund's 5-year term at the PV20 valuation generated by an independent valuation firm subject to the cash availability of White River. The Fund will terminate, and we have agreed to redeem all of the Fund's partners, five years after the Fund terminates its offering which will be not later than but possibly earlier than June 30, 2023. As of March 7, 2023, the Fund had raised $3,250,000.

The Fund's investment and business strategy envisions leveraging the Company's leases, equipment and employees in conjunction with the Company's intention of drilling 100 wells, or potentially more, over the next five years, by investing in drilling projects owned and operated by the Company over its five year term. Under this arrangement, the Company will sell to the Fund up to 75% of the interests, which may include potential cash flows and/or working interests, in each such drilling project. With such sales, the Company will grant the Fund a right of first refusal with respect to funding any such projects. The projects to which the Fund's investments will relate are expected to primarily consist of horizontal/deep oil drilling projects, refracturing oil projects, vertical/shallow oil drilling projects and purchases of existing production which may include wells drilled by the Company or its affiliates, independently or in participation with third party oil and gas companies. However, the aforementioned drilling projects are anticipated to be originally owned and operated by the Company. In such arrangements, the Fund will own direct working interests in oil and gas drilling projects and purchases of existing production. Assuming sufficient capital is raised, the Fund will seek to participate in approximately 20 drilling projects, 10 re-fracking projects, and purchases of existing oil production over the next five years, although the Fund is not precluded from participating in a greater number of projects or in different types of projects, or from engaging, investing or cooperating in oil and gas drilling activities of other third parties in the oil and gas industry not involving the Company. The Company plans to launch a second drilling fund and begin seeking investors on July 1, 2023. Any drilling projects in the first Fund that were not able to be performed due to insufficient capital raised will be allocated to the new fund.

While the Company anticipates collaborating with the Fund in pursuing oil and gas ventures that are mutually beneficial to both entities, conflicts of interest may arise. See "Risk Factors" below for more information. The Company has no equity ownership of the Fund but expects to provide drilling services for a fee and receive management fees.

**Oil Gas Portfolio and Acquisitions**

The following is an overview of our oil and gas properties portfolio:

**Louisiana properties**

- Coochie Oil Field

- Five Mile Bayou Oil Field

- Lake Ophelia Oil Field

- Lake St John Oil Field

- North Bayou Jack Oil Field

- Tew Lake Oil Field

**Mississippi properties:**

**-** Henry Oil Field

**-** Horseshoe Lake Oil Field

**-** Pearl River Oil Field

**-** Thanksgiving Oil Field

**Competition**

The Company faces intense competition in the oil and gas industry, as we are producing and selling crude oil as a commodity so we compete against all producers including individual well owners through the major global and national oil companies. Many of these competitors possess greater financial, technical, human and other resources than we do and our financial resources are relatively limited when contrasted with those of many of these competitors.

**Government Regulations** 

Set forth below is an overview of the government regulations we presently face or could face as a result of our current and planned operations. As the regulatory and legal environment evolves, we may become subject to new laws, such as further regulation by the SEC and other agencies, which may affect our mining and other activities. For additional discussion regarding our belief about the potential risks existing and future regulation pose to our business, see "Risk Factors."

Oil and Gas

Oil and gas production is regulated under a wide range of federal and state statutes, rules, orders and regulations. State and federal statutes and regulations require permits for drilling operations, drilling bonds and reports concerning operations. The states in which we operate, Louisiana and Mississippi, have regulations governing conservation matters, including provisions for the unitization or pooling of oil and gas properties, the establishment of maximum rates of production from oil and gas wells, the regulation of spacing, and requirements for plugging and abandonment of wells. Also, states in our territory impose a severance tax on production and sales of oil, and gas within its jurisdiction. Failure to comply with these rules and regulations can result in substantial penalties. Our competitors in the oil and gas industry are subject to the same regulatory requirements and restrictions that affect our operations. But large companies have sufficient human capital to deal with regulation in contrast to White River.

Our exploration and production activities are subject to a variety of rules and regulations concerning drilling permits, location, spacing and density of wells, water discharge and disposal, prevention of waste, bonding requirements, surface use and restoration, public health and environmental protection and well plugging and abandonment. In addition, our operations must comply with rules governing the size of drilling and spacing units or proration units and the unitization or pooling of lands and leases. Some states allow the forced pooling or integration of tracts to facilitate exploration while other states rely primarily or exclusively on voluntary pooling of lands and leases. In states where pooling is primarily or exclusively voluntary, it may be more difficult to form units and therefore to drill and develop our leases in circumstances where we do not own all of the leases in the proposed unit. These risks also exist in other states that have imposed limits on forced pooling. State laws may also prohibit or limit the venting or flaring of natural gas, which may impact rates of production of crude oil and natural gas from our wells. Leases covering state or federal lands often include additional laws, regulations and conditions which can limit the location, timing and number of wells we can drill and impose other requirements on our operations, all of which can increase our costs. The Company, however, only had an insignificant amount of oil and gas mineral leases on federal land owned by the Bureau of Land Management.

Federal regulation of oil and gas is also extensive. The recent spike in gasoline and other fuel costs is at least in part been driven by the Biden Administration's efforts to reduce oil drilling and transition away from fossil fuels.

Since he took office in January 2021, President Biden has signed a series of executive orders seeking to adopt new regulations to address climate change and to suspend, revise, or rescind certain prior agency actions which were part of the Trump Administration's de-regulatory push, including oil drilling. The Biden Administration is expected to continue to aggressively seek to regulate the energy industry and has stated its goal to eliminate fossil fuels. The new executive orders include, among other things, orders requiring a review of current federal lands leasing and permitting practices, as well as a temporary halt of new leasing of federal lands and offshore waters available for oil and gas exploration, directing federal agencies to eliminate subsidies for fossil fuels, and to develop a plan to improve climate-related disclosures. Federal agencies including the Environmental Protection Agency ("EPA") and the SEC have followed suit in pushing ahead with new regulations which will adversely affect our future business, as more particularly described below.

In January 2021, President Biden also issued an executive order calling for methane emissions regulations to be reviewed and for the EPA to establish new standards by September 2021. This resulted in the EPA finalizing what it refers to as "the most ambitious federal greenhouse gas emissions standards for passenger cars and light trucks ever" in December 2021. The EPA has also adopted regulations under existing provisions of the Clean Air Act that, among other things, establish Prevention of Significant Deterioration (the "PSD"), construction and Title V operating permit reviews for certain large stationary sources. Facilities required to obtain PSD permits for their greenhouse gas emissions also will be required to meet "best available control technology" standards that will be established on a case-by-case basis. The EPA also has adopted rules requiring the monitoring and reporting of greenhouse gas emissions from specified onshore and offshore natural gas and oil production sources in the United States on an annual basis, which include certain of our operations.

In November 2021, the EPA released new proposed methane rules which would impose regulations on methane release at existing wells nationwide, although methane primarily affects gas production rather than oil which is our focus. These new rules, among other things, would implement a comprehensive monitoring program to require companies to find and fix leaks. Additionally, the new rules would require well operators to place gas that is produced in a pipeline to be sold when possible to prevent wasting the gas, which could force us or well operators on which we rely to sell the gas at lower prices and thereby reduce our revenues. As with most regulations, smaller participants like us will face more burdens due to the compliance and other costs and the limited revenue to absorb such costs. The EPA is expected to issue a supplemental proposal in 2022 in the hopes of identifying additional regulatory means of reducing methane and other emissions, and has indicated an intention to adopt final rules before the end of calendar year 2022. In November 2022, the EPA announced it intends to strengthen its proposed methane standards and cut methane and other harmful air pollution.

While a recent U.S. Supreme Court case imposed limitations on the EPA's authority under the Clean Air Act, including by holding that the EPA's attempted energy generation shifting entailed an overly broad interpretation of the statute's delegation of authority, if the EPA adopts the above or other regulations and such regulations are held to be valid, the resulting new regulatory framework could impose additional restrictions and costs on our operations which could materially adversely affect our business. The regulations at issue in the recent case pertained to an attempt to shift a portion of U.S. energy production from coal to natural gas by an enumerated percentage by 2030. In February 2022, a federal judge blocked a Biden Administration executive order which used the "social cost of carbon." The Interior Department responded by suspending permits for oil and gas drilling.

Although Congress from time-to-time has considered legislation to reduce emissions of greenhouse gases, there has not been significant activity in the form of adopted legislation to reduce greenhouse gas emissions at the federal level in recent years. In the absence of such federal climate legislation, a number of states, including states in which we operate, have enacted or passed measures to track and reduce emissions of greenhouse gases, primarily through the planned development of greenhouse gas emission inventories and regional greenhouse gas cap-and-trade programs. Most of these cap-and-trade programs require major sources of emissions or major producers of fuels to acquire and surrender emission allowances, with the number of allowances available for purchase reduced each year until the overall greenhouse gas emission reduction goal is achieved. These reductions may cause the cost of allowances to escalate significantly over time.

Additionally, the United States re-joined, effective February 19, 2021, the non-binding international treaty to reduce global greenhouse gas emissions (the "Paris Agreement"), adopted by over 190 countries in December 2015. The Paris Agreement entered into force in November 2016 after more than 70 nations, including the United States, ratified or otherwise indicated their intent to be bound by the agreement. The United States had previously withdrawn from the Paris Agreement effective November 4, 2020. Following the United States re-joining the Paris Agreement, President Biden announced in April 2021 the United States' pledge to achieve an approximately 50% reduction from 2005 levels in "economy-wide" net greenhouse gas emissions by 2030. To the extent that the United States implements this agreement or imposes other climate change regulations on the oil and natural gas industry, or that investors insist on compliance regardless of legal requirements, it could have an adverse effect on our business, operating results and future growth.

**Environmental Compliance**

Our oil and gas operations through White River Holdings are or may become subject to numerous laws and regulations relating to environmental protection and climate change. These laws and regulations change frequently, and the effect of these changes is often to impose additional costs or other restrictions on our operations. We cannot predict the occurrence, timing, nature or effect of these changes. We also operate under a number of environmental permits and authorizations. The issuing agencies may take the position that some or all of these permits and authorizations are subject to modification, suspension, or revocation under certain circumstances, but any such action would have to comply with applicable procedures and requirements.

While we are currently not experiencing any material expenses related to the environmental compliance, we may become subject to requirements of environmental or other related laws and regulations in the future, which may result from a number of causes. Please review the Risk Factors beginning on page 4 and the paragraph that follows with regard to potential environmental and other compliance expenses.

On March 21, 2022, the SEC released proposed rule changes on climate-related disclosure. The proposed rule changes would require registrants including the Company to include certain climate-related disclosures in registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on the registrant's business, results of operations, or financial condition, and certain climate-related financial statement metrics in a note to their audited financial statements. The required information about climate-related risks also would include disclosure of a registrant's greenhouse gas emissions, information about climate-related targets and goals, and transition plan, if any, and requires extensive attestation requirements. The proposed new rules would also require companies to disclose multiple levels of climate impact, including primary direct impacts from the registrant's own operations, as well as secondary and tertiary effects of the operations and uses by contractors that the registrant utilizes and end-users of the registrant's products and/or services. If adopted as proposed, the rule changes will result in material additional compliance and reporting costs, including monitoring, collecting, analyzing and reporting the new metrics and implementing systems and procuring additional internal and external personnel with the requisite skills and expertise to serve those functions. We expect that the rules will be adopted in large part at least in late 2022 or early 2023, and our compliance costs will be material. However, following a June 2022 U.S. Supreme Court administrative law decision, we expect a court challenge to any climate change SEC Rule. We cannot predict the outcome of any challenge.

**Seasonality**

Our business experiences a certain level of seasonality due to our oil and gas exploration and production business, including as a result of demand for oil typically being higher in the Fall and Winter months resulting in higher prices. Due to these seasonal fluctuations, results of operations for individual quarterly periods may not be indicative of the results that may be realized on an annual basis. Seasonal weather conditions, including the annual flooding of coastal properties, and lease stipulations can limit drilling and producing activities. These seasonal anomalies can pose challenges for the drilling objectives and can increase competition for equipment, supplies and personnel during the spring and summer months, which could lead to shortages and increase costs or delay operations, thus, harming our operating margins. Also, the volatility of commodities prices and supply chain issues can potentially delay the receipt of critical parts and equipment needed during drilling projects which can both delay the project and add additional costs to the project. Finally, Winter storms and lower temperatures resulting in snow and ice adversely impact drilling and production capabilities.

**Dependence on Major Customers**

From time-to-time we have had and may continue to have customers generating 10 percent or more of the Company's revenues, and loss of such customers could have a material adverse effect on the Company.

In FY 2022 three of our customers accounted for 95% of our total revenue and 66% of our accounts receivable. In particular, we frequently rely on Plains Marketing, LP, a leading midstream energy company, for our sales. We expect this trend to continue unless and until we expand our oil and gas drilling activities and diversify our customer base in terms of amount and geographic region.

Acquisition of a Broker-Dealer

An element of our business strategy is to acquire an existing broker-dealer which is licensed by the SEC and FINRA and also meets applicable state licensure and registration requirements. The purposes of acquiring the broker-dealer is to enable us to proceed with our plan to open a new oil and gas drilling fund, which began in calendar year 2022 with the Fund, each year for the next 10 years. Because our and our affiliates' activities in raising proceeds and attracting investors to invest in these funds may be viewed by regulators as engaging in the business of effecting sales of securities for the accounts of others, we have been advised by counsel to acquire and maintain registration and licensure for a registered and licensed broker-dealer to ensure these activities are conducted in compliance with the applicable federal and state securities laws and self-regulatory organization rules.

We have entered into a Membership Interest Purchase Agreement to acquire Commenda Securities LLC, a small licensed broker-dealer which is registered with the SEC for $70,000, up to $30,000 in liabilities and up to $20,000 in third party expenses. The acquisition of the broker-dealer will be subject to approval by FINRA which must be obtained by July 23, 2023, as well as possibly a few states. In February 2023, we filed a change of control application with FINRA. FINRA could take months to complete its review. We cannot assure you it will approve our application.

If we do acquire the broker-dealer, the operation of any such entity is subject to intense regulation. We would need to overcome obstacles inherent in integration of a newly acquired business generally, as well as specific complications posed in the broker-dealer context. Among these challenges are:

● differences in the information technology infrastructure or friction amongst the personnel of White River and the broker-dealer;

● the lack of knowledge and experience of our management team in the broker-dealer industry, and resultant reliance upon an outside consultant to the broker-dealer, particularly in the short- and medium-term following the acquisition; and

● laws and regulations imposed on the industry and broker-dealer practices by legislatures, governmental agencies such as the SEC and self-regulatory organizations such as FINRA which are intense and robust, and the high costs of continued compliance with these requirements.

With respect to laws and regulations, we will need to comply with, among others: (i) anti-money laundering and know your customers laws, (ii) minimum capital, liquidity reserve and corporate structure requirements, (iii) monitoring, reporting and notice requirements with respect to net capital and other financial metrics, and (iv) cash deposit, "best execution," margin lending, and other operational obligations and restrictions aimed at protecting investors and securities markets.

See "Risks Relating to Our Planned Acquisition of a Broker-Dealer" beginning on page 20 for more information on the challenges and risks involved in the acquisition and operation of a broker-dealer.

**Human Capital Resources**

As of March 7, 2023, we have ten full-time employees, no part-time employees and 60 independent contractors.

Our ability to successfully execute our strategic initiatives is highly dependent on recruiting and retaining skilled personnel.

**PROPERTIES**

Headquarters

The Company currently leases a small office space in Fayetteville, Arkansas for its headquarters. Most of our employees and consultants work remotely and/or in the field.

Oil and Gas Properties

As of March 31, 2022, our oil and gas acreage is comprised of approximately 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi. We have reflected below our reserves as of the fiscal year ended March 31, 2022 ("FY 2022") and the fiscal year ended March 31, 2021 ("FY 2021"). During these periods and continuing presently, we continue to focus on expanding our exploration and production footprint and capabilities by acquiring real property and working interests in oil and gas mineral leases.

White River Holdings, received an analysis from an independent petroleum consulting company as of March 31, 2022. Based on this analysis, there was no impairment noted to our proved reserves as of March 31, 2022.

Oil and Natural Gas Reserves

As of March 31, 2022 and 2021, all of our proved oil and natural gas reserves were located in the United States, specifically in Mississippi and Louisiana.

The following tables set forth summary information with respect to White River Holdings' proved reserves as of March 31, 2022 and 2021. All reserves are located in the United Stated. For additional information see Supplemental Information "Oil and Gas Producing Activities (Unaudited)" to our consolidated financial statements in the Financial Statements and Supplementary Data contained in this Prospectus.

Proved reserves as of March 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Reserve Category** | **Crude <br> Oil <br> (Bbl)** | **Natural <br> Gas <br> (MMcf)** | **Total<br> Proved<br> (BOE)<sup>(1)</sup>** |
| **Proved Reserves** | | | |
| &nbsp;&nbsp;&nbsp;**Developed** | 169688 |  | 169688 |
| &nbsp;&nbsp;&nbsp;**Developed Non-Producing** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Undeveloped** | - |  | - |
| **Total Proved Reserves** | 169688 |  | 169688 |
| **Estimated Future Net Cash Flows<sup>(2)</sup>** |  |  | $5367705 |
| **Less: Future income taxes<sup>(3)</sup>** |  |  | - |
| **10% annual discount for estimated timing of cash flows <sup>(4)</sup>** |  |  | (1822233) |
| **Discounted Future Net Cash Flows**<br>**  |  |  | $3545472 |

---

**(1)** BOE
 (barrels of oil equivalent) is calculated by a ratio of 6 1,000 cubic feet of volume (Mcf) to 1 barrel (Bbl) of oil.

**(2)** Prices
 used for net cash flow are based on the 12 month average of the first-day-of-the-month West Texas Intermediate (WTI) cushing price
 reference. An average realized price of $75.44/Bbl was utilized, which reflects the adjustments to the benchmark
 prices for gravity, quality, local conditions, and/or distance from market.

**(3)** The
 Company has sufficient tax deductions and allowances related to proved oil and gas reserves
 to offset future net revenues.

**(4)** PV-10 represents the discounted future net cash flows
 attributable to our proved oil and natural gas reserves discounted at 10%. PV-10 of our total year-end proved reserves is considered
 a non-U.S. GAAP financial measure as defined by the SEC. We believe that presentation of the PV-10 is relevant and useful to our
 investors because it presents the discounted future net cash flows attributable to our proved reserves. We further believe investors
 and creditors use our PV-10 as a basis for comparison of the relative size and value of our reserves to other companies.

Proved reserves as of March 31, 2021:

---

| | | | |
|:---|:---|:---|:---|
| **Reserve Category** | **Crude <br> Oil <br> (Bbl)** | **Natural <br> Gas<br> (MMcf)** | **Total <br> Proved (BOE)<sup>(1)</sup>** |
| **Proved Reserves** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Developed** | 462914 |  | 462914 |
| &nbsp;&nbsp;&nbsp;**Developed Non-Producing** |  |  |  |
| &nbsp;&nbsp;&nbsp;**Undeveloped** | - |  | - |
| **Total Proved Reserves** | 462914 |  | 462914 |
| **Estimated Future Net Cash Flows<sup>(2)</sup>** |  |  | $8049641 |
| **Less: Future income taxes<sup>(3)</sup>** |  |  | - |
| **10% annual discount for estimated timing of cash flows<sup>(4)</sup>** |  |  | (2347850) |
| **Discounted Future Net Cash Flows** |  |  | $5701791 |

---

**(1)** BOE
 (barrels of oil equivalent) is calculated by a ratio of 6 Mcf to 1 Bbl of oil

**(2)** Prices
 used for net cash flow are based on the 12 month average of the WTI cushing price reference. An average benchmark of $40.01/Bbl and
 average realized price of $38.54/Bbl were analyzed with the realized price ultimately used in the cash flow analysis.

**(3)** The
 Company has sufficient tax deductions and allowances related to proved oil and gas reserves
 to offset future net revenues.

**(4)** PV10 represents the discounted future net cash flows
 attributable to our proved oil and natural gas reserves discounted at 10%. PV-10 of our total year-end proved reserves is considered
 a non-U.S. GAAP financial measure as defined by the SEC. We believe that presentation of the PV-10 is relevant and useful to our
 investors because it presents the discounted future net cash flows attributable to our proved reserves. We further believe investors
 and creditors use our PV-10 as a basis for comparison of the relative size and value of our reserves to other companies.

The following table presents certain information with respect to oil and natural gas production attributable to our interests in all of our properties in the United States, the reserve derived from the sale of such production, average sales price received and average production costs for FY 2022 and FY 2021.

---

| | | |
|:---|:---|:---|
|  | **Units of Measure** | **March 31, 2022** |
| **Production** | | |
| &nbsp;&nbsp;&nbsp;**Oil** | | |
| &nbsp;&nbsp;&nbsp;Bayou Jack North Field, Avoyelles Co, LA | Barrels | 27641 |
| &nbsp;&nbsp;&nbsp;Henry Field, Wilkinson Co, MS | Barrels | 10556 |
| &nbsp;&nbsp;&nbsp;Pearl River Field, Amite Co, MS | Barrels | 5540 |
| &nbsp;&nbsp;&nbsp;Tew Lake -88% Field, Catahoula Co, LA | Barrels | 4186 |
| &nbsp;&nbsp;&nbsp;Other Fields | Barrels | 16362 |
| &nbsp;&nbsp;&nbsp;**Natural Gas** | Mcf |  |
| &nbsp;&nbsp;&nbsp;**BOE** |  | 64285 |
| **Sales** |  |  |
| &nbsp;&nbsp;&nbsp;**Oil** | Barrels | 64474 |
| &nbsp;&nbsp;&nbsp;**Natural Gas** | Mcf |  |
| **Average Sales Price** |  |  |
| &nbsp;&nbsp;&nbsp;**Oil** | Barrels | $75.55 |
| &nbsp;&nbsp;&nbsp;**Natural Gas** | Mcf | $- |
| **Production - Lease Operating Expenses** |  | $1412093 |
| **Average Cost of Production per BOE** |  | $21.97 |

---

---

| | | |
|:---|:---|:---|
|  | **Units of Measure** | **March 31, 2021** |
| **Production** |  |  |
| &nbsp;&nbsp;&nbsp;**Oil** |  |  |
| &nbsp;&nbsp;&nbsp;Bayou Jack North Field, Avoyelles Co, LA | Barrels | 6084 |
| &nbsp;&nbsp;&nbsp;Henry Field, Wilkinson Co, MS | Barrels | 8757 |
| &nbsp;&nbsp;&nbsp;Pearl River Field, Amite Co, MS | Barrels | 6162 |
| &nbsp;&nbsp;&nbsp;Tew Lake -88% Field, Catahoula Co, LA | Barrels | 3197 |
| &nbsp;&nbsp;&nbsp;Other Fields | Barrels | 13608 |
| **Natural Gas** | Mcf |  |
| **BOE** |  | 37808 |
| **Sales** |  |  |
| **Oil** | Barrels | 37259 |
| **Natural Gas** | Mcf |  |
| **Average Sales Price** |  |  |
| **Oil** | Barrels | $41.89 |
| **Natural Gas** | Mcf | $- |
| **Production - Lease Operating Expenses** |  | $1213700 |
| **Average Cost of Production per BOE** |  | $32.10 |

---

Technologies Used in Establishing Proved Reserves Additions in 2022 and 2021

Additions to the Company's proved reserves in 2022 and 2021 were based on estimates generated through the integration of available and appropriate geological, engineering and production data, utilizing well-established technologies that have been demonstrated in the field to yield repeatable and consistent results.

Data used in these integrated assessments included information obtained directly from the subsurface via wellbores, such as well logs, reservoir core samples, fluid samples, static and dynamic pressure information, production test data, and surveillance and performance information. The data utilized also included subsurface information obtained through indirect measurements including high-quality 3-D and 4-D seismic data, calibrated with available well control information. The tools used to interpret the data included seismic processing software, reservoir modeling and simulation software, and data analysis packages.

In some circumstances, where appropriate analog reservoirs were available, reservoir parameters from these analogs were used to increase the quality of and confidence in the reserves estimates.

Qualifications of Reserves Technical Oversight Group and Internal Controls over Proved Reserves

The Company has a team that provides technical oversight and is separate from the operating organization. Primary responsibilities of this team include oversight of the reserves estimation process for compliance with the SEC rules and regulations, review of annual changes in reserves estimates, and the reporting of the Company's proved reserves. This team also maintains the official company reserves estimates for the Company's proved reserves of crude oil, natural gas liquids, bitumen, synthetic oil, and natural gas. In addition, the team provides training to personnel involved in the reserves estimation and reporting process within the Company and its affiliates. The Manager of the team has more than 20 years of experience in reservoir engineering and reserves assessment. The team is also staffed with individuals that have technical experience in the petroleum industry, including expertise in the classification and categorization of reserves under SEC guidelines.

The team maintains a central database containing the official company reserves estimates. Appropriate controls, including limitations on database access and update capabilities, are in place to ensure data integrity within this central database. An annual review of the system's controls is done by our finance staff in developing representations under Sarbanes-Oxley. Key components of the reserves estimation process include technical evaluations, commercial and market assessments, and analysis of well and field performance. No changes may be made to the reserves estimates in the central database, including additions of any new initial reserves estimates or subsequent revisions, unless these changes have been thoroughly reviewed and evaluated by duly authorized geoscience and engineering professionals within the operating organization. In addition, changes to reserves estimates that exceed certain thresholds require further review and approval by the appropriate level of management within the operating organization before the changes may be made in the central database.

Drilling and other exploratory activities

During FY 2022, White River Holdings undertook very minor drilling and exploratory activities that were nominal in terms of costs incurred. We drilled two net productive development wells in FY 2022, and no exploratory wells.

During FY 2021, White River Holdings undertook a drilling program and pre-funded approximately $3,000,000 of the cost, associated with the drilling and completion of an initial deep horizontal well in the Austin Chalk formation which is reflected as capitalized drilling costs. We drilled three net productive development wells in FY 2021, and no exploratory wells.

Present activities

The Company is assessing all of its properties at the present time to determine any future drilling activities to commence.

Delivery commitments

The Company is not currently committed to provide a fixed and determinable quantity of oil and gas in the near future under existing contracts or agreements.

Productive Wells

The following table sets forth the number of wells in our inventory, in which White River Holdings maintained a working interest as of January 27, 2023. All of the wells with the exception of the plugged and abandoned wells and the inactive dry-hole well are mechanically capable of producing with proper funding that will enable the Company to afford additional capital expenditures.

---

| | | |
|:---|:---|:---|
| **Well Category:** | **Oil** | **Oil** |
|  | Gross Wells | Net Wells |
| **Active Producer** | 8 | 3 |
| **Inactive Producer** | 45 | 9 |
| **Inactive – dry-hole** | 1 |  |
| **Shut-In** | 3 | 1 |
| **Plugged & Abandoned** | 3 |  |
| **Active Salt Water Disposal (SWD)** | 9 |  |
| **Inactive SWD** |  |  |
| **Pending completion** | 1 | 1 |
|  | **70** | **14** |

---

As of January 27, 2023, we have approximately 34,082 total acres. Of the total acres, we have 23,269 gross developed acres, 10,813 gross undeveloped acres, 5,817 net developed acres, and 2,703 net undeveloped acres. We had no Gas wells as of January 27, 2023.

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

**Overview**

White River operates in the oil and gas industry, with a focus on exploration, production and drilling operations on approximately 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi.

In FY 2022 and more recently, the following key aspects of our business advanced and developments occurred:

● On July 25, 2022 the Company purchased 100% of the capital stock of White River Holdings from Ecoark in exchange for 1,200 shares of Series A which will become convertible into approximately 42,253,521 shares of the Company's common stock upon the effective date of the Registration Statement of which this Prospectus is a part. As a result of this acquisition, we shifted our focus to operating as an oil and gas exploration and drilling company. Since the accounting for this transaction was in the form of a reverse merger with White River Holdings being the accounting acquirer, this share issuance was reflected retroactively. The results of operation are those of the accounting acquirer, White River Holdings.

● In September 2022, the Company divested the two former operating subsidiaries of Fortium Holdings Corp., Norr and Elysian, to focus exclusively on the oil and gas business.

● In FY 2022 the Company obtained additional drilling rigs to enhance its equipment portfolio, which as a result now consists of three drilling rigs and three workover rigs;

● The Company commenced or completed the following projects: (i) the O'Neal No. 20-9 Well, (ii) a deep vertical well in the Blackhawk oil field in Concordia Parish, Louisiana, and (iii) a deep vertical well in the Pisgah oil field in Rankin, Mississippi; and

● In October and November 2022, the Company raised a total of $4,756,816 in gross proceeds from the sale of Units consisting of shares of Series C and Warrants in the PIPE Offering; and

● Recently, the Company formed WR Fund #1 which will be used in White River drilling projects and managed by the Company's management.

● In December 2022, the Company borrowed $1,500,000 in gross proceeds and issued the lender a 10% Original Issue Discount Senior Secured Convertible Promissory Note in the principal amount of $1,666,666.67.

● In November and December 2022, the Company entered into Participation Agreements pursuant to which the Company received $4,214,762 in gross proceeds which were or are being used to drill the wells and have a receivable due in the amount of $1,597,632.

● In October 2022, the Company and Ault Energy, LLC ("Ault Energy"), a wholly-owned subsidiary of Ault Alliance, Inc., successfully completed drilling a 9,531 foot well, the Harry O'Neal 20-9 No. 1 (the "O'Neal No. 1 Well"), on the Company's oil and gas mineral lease in Holmes County, Mississippi. Through an exercise of its participation right, Ault Energy acquired a 37.5% working interest and a 27% net revenue interest in the O'Neal No. 1 Well.

● In October 2022, the Operator borrowed $1,500,000 from and issued a Secured Promissory Note to Align Business Finance, LLC in the principal amount of $1,500,000 and used the proceeds to acquire two oil and gas drilling rigs and related equipment. In December 2022, this note was repaid in full.

● During the three months ended December 31, 2022, the Company sold a total of 190.2726308 Units, with each Unit consisting of one share of Series C Convertible Preferred Stock (the "Series C") and one Warrant to purchase 200% of the shares of common stock underlying the Series C, for a purchase price of $25,000 per Unit and resulting in total gross proceeds to the Company of $4,756,816. The proceeds are being used for working capital and general corporate purposes including oil and gas drilling on the Company's working interests in Louisiana and Mississippi.

For an overview of key developments during FY 2022 as well as more recent developments and plans for the Company and its operations, see "Business."

**Production Data – FY 2022 and FY 2021**

The following tables set forth our production data for FY 2022 and FY 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Years Ended March 31,** | **Years Ended March 31,** | **Years Ended March 31,** | **Years Ended March 31,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **Bbls** | **Bbls** | **Bbls** | **Bbls** |
|  | **Gross** | **Net** | **Gross** | **Net** |
| **Production Data:** |  |  |  |  |
| **By State/County** |  |  |  |  |
| **Mississippi** |  |  |  |  |
| Holmes | 1838 | 1378 | 6 | 3 |
| Amite | 12054 | 9629 | 13853 | 11063 |
| Wilkinson | 13619 | 10560 | 10964 | 8765 |
| Pike | 1327 | 1019 | 752 | 611 |
|  | 28838 | 22586 | 25575 | 20442 |
| **Louisiana** |  |  |  |  |
| Catahoula | 5534 | 4186 | 4019 | 3197 |
| Concordia | 8626 | 4407 | 6650 | 3128 |
| Tensas | 3209 | 2407 | 2724 | 2024 |
| Lasalle | 609 | 330 | 1013 | 549 |
| Avoyelles | 44558 | 30371 | 12166 | 8469 |
|  | 62536 | 41701 | 26572 | 17367 |
| Total | 91374 | 64287 | 52147 | 37809 |

---

**Production Data – Nine Months Ended December 31, 2022 and 2021**

The following tables set forth our production data for the nine months ended December 31, 2022 and 2021:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine** **Months Ended December 31,** | **Nine** **Months Ended December 31,** | **Nine** **Months Ended December 31,** | **Nine** **Months Ended December 31,** |
|  | **2022** | **2022** | **2021** | **2021** |
|  | **Bbls** | **Bbls** | **Bbls** | **Bbls** |
|  | **Gross** | **Net** | **Gross** | **Net** |
| **Production Data:** |  |  |  |  |
| **By State/County** |  |  |  |  |
| **Mississippi** |  |  |  |  |
| Holmes | 1129 | 1 | 1657 | 1243 |
| Amite | 9267 |  | 9540 | 7621 |
| Wilkinson | 8126 |  | 10576 | 8197 |
| Pike | 288 | - | 1192 | 923 |
|  | 18810 | 1 | 22965 | 17984 |
| **Louisiana** |  |  |  |  |
| Catahoula | 4579 |  | 4871 | 3649 |
| Concordia | 5174 | 737 | 6463 | 3039 |
| Tensas | 1701 | 1215 | 2627 | 1970 |
| Lasalle |  |  | 609 | 330 |
| Avoyelles | 15770 | 6808 | 37976 | 25858 |
|  | 27224 | 8760 | 52546 | 34846 |
| Total | 46034 | 8761 | 75511 | 52830 |

---

**<u>Results of Operations</u>**

**Results of Operations for FY 2022 compared to FY 2021**

White River Holdings has included in their historical consolidated financial statements certain operating expenses and other income (expense) from Ecoark that have been allocated to them in the years ended March 31, 2022 and 2021, and for the six months ended September 30, 2022 (prior to the sale to the Company on July 25, 2022) and 2021, which are part of the Condensed Consolidated Statements of Operations for each of these periods. The allocations represented charges incurred by Ecoark for certain corporate, infrastructure and shared services expenses, including legal, human resources, payroll, finance and accounting, employee benefits, insurance, information technology, telecommunications, treasury, and other expenses. Where possible, these charges were allocated based on direct usage, with the remainder allocated on a pro rata basis of headcount, asset, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented pursuant to SAB Topic 1.B.1. The allocations may not, however, reflect the expense White River Holdings would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that White River Holdings will incur in the future or would have incurred if White River Holdings had obtained these services from a third party.

Revenues

Revenues for FY 2022 of $5,046,559 compared to FY 2021 of $2,373,482, with the increase primarily related to higher average oil prices during FY 2022, as well as an overall increase in production from an average of 127 barrels of oil per day ("BOPD") in FY 2021 compared to an average of 186 in BOPD in FY 2022. We expect our revenues to increase in our next fiscal year as a result of planned drilling projects we expect to commence in our fiscal third and fourth quarters of FY 2023. See the Unaudited Pro Forma Condensed Consolidated Financial Statements for the anticipated annual and semi-annual adjustments we have estimated in our revenues.

Costs and Expenses

The following table shows costs and expenses for FY 2022 and FY 2021:

---

| | | |
|:---|:---|:---|
|  | **FY 2022** | **FY 2021** |
| **Costs and Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues (excludes items below) | $1735650 | $805275 |
| &nbsp;&nbsp;&nbsp;Salaries and salaries related costs | 2027255 | 2313092 |
| &nbsp;&nbsp;&nbsp;Professional and consulting fees | 324739 | 185691 |
| &nbsp;&nbsp;&nbsp;Oilfield costs, supplies and repairs | 1603719 | 6657355 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 2065897 | 1256395 |
| &nbsp;&nbsp;&nbsp;Depreciation, amortization, depletion, accretion and impairment | 6218183 | 958141 |
|  | $13975443 | $12175949 |

---

Costs and expenses in FY 2022 totaled $13,975,443 compared to $12,175,949 for FY 2021. The amounts were relatively even between periods, attributable to a decrease in oilfield costs, supplies and repairs offset by an increase in depreciation, amortization, impairment, depletion and accretion, related to an increase in depletion of proved oil and natural gas properties and an increase in depletion of drilled wells for FY 2022 due to an adjustment of projected lifetime production at the Deshotel #24 well. White River Holdings oilfield costs and related expenses arose from which in each period related to additional procedures performed related to the completion and production of the Deshotel well in addition to various workover procedures to increase production on existing wells.

A portion of White River Holdings increase in operating expenses arose from its efforts to scale our oil and gas drilling capabilities and activities. Increased oil prices in FY 2022 have aided oil and gas production operations by increasing revenue as a result of the higher prices, but are also increasing drilling costs due to the increase in demand for ancillary drilling services. We expect our costs and expenses to increase in our next fiscal year as a result of planned drilling projects we expect to commence in our fiscal third and fourth quarters of FY 2023 as well as anticipated increases in stock-based compensation related to the granted RSUs on December 2, 2022. See the Unaudited Pro Forma Condensed Consolidated Financial Statements for the anticipated annual and semi-annual adjustments we have estimated in our costs and expenses.

Other Income (Expense)

The following table shows other income (expense) for FY 2022 and FY 2021:

---

| | | |
|:---|:---|:---|
|  | **FY 2022** | **FY 2021** |
| Change in fair value of derivative liabilities | $2954109 | (2039656) |
| Gain on exchange of warrants for common stock |  | 2322234 |
| Gain on conversion of long-term debt and accrued expenses |  | 115659 |
| Loss on abandonment of oil and gas property |  | (109407) |
| Loss on sale of oil and gas property and ARO | (885796) |  |
| Interest expense, net of interest income | (62182) | (242585) |
|  | $2006131 | $46245 |

---

Total other income was $2,006,131 in FY 2022 compared to $46,245 in FY 2021. The increase was primarily the result of the changes in fair value of our derivative liabilities in FY 2022 and FY 2021, and a $2,322,234 gain on the exchange of warrants for common stock. For FY 2021, the change in the fair value of the derivative liabilities and gain on the exchange of warrants for common stock, were related to warrants granted in registered direct offerings by White River Holdings former parent, Ecoark, and allocated to White River Holdings as noted herein. See the Unaudited Pro Forma Condensed Consolidated Financial Statements for the anticipated annual and semi-annual adjustments we have estimated related to our other income (expense) items. As noted, the changes in the derivative liability in 2021 was for a derivative liability recognized on Ecoark's books as it was indexed to their common stock. White River Holdings recorded a liability of "Due to Ecoark Holdings" for the proceeds received by Ecoark related to the financing transactions that Ecoark completed that resulted in the recognition of the derivative liabilities.

Net Loss

Net loss from continuing operations for FY 2022 was $6,922,753 as compared to net loss from continuing operations of $9,756,222 for FY 2021. The decrease in net loss was primarily due to higher revenue in FY 2022 due to higher oil prices and production activities, combined with an increase in total other income in FY 2022 from the change in fair value of derivative liabilities. Approximately 70% of loss from operations was from non-cash charges of depreciation, amortization, impairment, depletion and accretion in FY 2022, compared to approximately 10% in FY 2021.

**Results of Operations for the Nine Months Ended December 31, 2022 and 2021**

Revenues

Revenues for the nine months ended December 31, 2022 of $3,015,203 compared to the nine months ended December 31, 2021 of $3,573,186, reflected a decrease of $557,983. The decrease is primarily related to a decline in the average barrel price of oil period over period, and less production out of some of our wells as we completed some repairs intended to enable greater production.

Costs and Expenses

The following table shows costs and expenses for the nine months ended December 31, 2022 and 2021:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<br> December 31,** | **Nine Months Ended**<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<br> December 31,** |
|  | **2022** | **2021** |
| **Costs and Expenses** |  |  |
| Cost of revenues (excludes items below) | $1109372 | $705707 |
| Salaries and salaries related costs | 4861432 | 1946302 |
| Professional and consulting fees | 2821430 | 284900 |
| Oilfield costs, supplies and repairs | 8552596 | 651421 |
| Selling, general and administrative costs | 3192647 | 3095913 |
| Depreciation, amortization, depletion, accretion and impairment | 6398704 | 1587702 |
|  | $26936181 | $8271945 |

---

Costs and expenses in the nine months ended December 31, 2022 increased by $18,664,236 when compared to the nine months ended December 31, 2021, primarily from the increase of $7,901,175 in oilfield costs as we repaired some wells in an effort to increase production, as well as increased non-cash charges in the 2022 period compared to the 2021 period. In addition, we increased labor in the fields contributing to the $2,915,130 increase in salaries and salaries related costs and consulting expenses of $2,536,530 primarily from the issuance of common shares valued at $1,666,667. Our general and administrative costs were relatively consistent period over period, and in the periods ended 2022 and 2021 we recognized impairment, thus the non-cash depreciation, amortization, depletion, accretion and impairment costs increased $4,811,002 in the 2022 period from the same period in 2021 primarily from the impairment of $5,917,843. To-date the added expenditures have not resulted in increased revenue as needed to offset the higher costs, which resulted in a significant increase in net loss, and no assurances can be given that this trend will change in the future, particularly if and to the extent the decline in oil prices continues or the lower prices are sustained in future periods.

Other Income (Expense)

The following table shows other income (expense) (almost all non-cash) for the nine months ended December 31, 2022 and 2021:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended December 31,** | **Nine Months Ended December 31,** |
|  | **2022** | **2021** |
| Change in fair value of derivative liabilities | $3451752 | $7647407 |
| Derivative expense | (10124521) |  |
| Gain (loss) on disposal of fixed assets/oil and gas | 405052 | 721365 |
| Gain on sale of working interests from Participation Agreements | 2569241 |  |
| Amortization of original issue discount | (6525) |  |
| Interest expense, net of interest income | (9108) | (262528) |
| Other income (expense) | $(3714109) | $8106244 |

---

Total other income decreased $11,820,353 in the nine months ended December 31, 2022 from the same period in 2021. The 2021 change in the derivative liability and the interest expense was the result of a cost allocation from Ecoark to the Company in accordance with SAB Topic 1.B.1. In both the 2022 and 2021 periods we recognized gains on sales of oil and gas reserves. In the 2022 period, we entered into Participation Agreements to sell working interests in wells that we are currently drilling and have recorded $2,569,241 from these agreements. In the 2022 period, we recognized derivative liabilities related to preferred stock and convertible note issuances and recognized a large gain when marked to market at the reporting date. As noted, the changes in the derivative liability in 2021 was for a derivative liability recognized on Ecoark's books as it was indexed to their common stock. Holdings recorded a liability of "Due to Ecoark Holdings, Inc." for the proceeds received by Ecoark related to the financing transactions that Ecoark completed that resulted in the recognition of the derivative liabilities.

**<u>Net Loss</u>**

Net loss from continuing operations before taxes for 2022 was $(27,635,087) as compared to net income from continuing operations before taxes of $3,407,485 for 2021. The increase in net loss was primarily due to non-cash charges of $16,269,168 as noted above, together with increased operational costs and expenses primarily related to the addition of labor and consulting, drilling expenses for various projects being drilled and the oilfield repair work completed in 2022. While the work performed is intended and expected to increase production on the applicable wells, no assurances can be given that the increased production will offset the expenses incurred in the short-term or at all, including due to fluctuations in oil prices over time and other factors beyond our control. Further, to-date the added expenditures have not resulted in increased revenue as needed to offset the higher costs, which resulted in a significant net loss, and no assurances can be given that this trend will change in the future, particularly if and to the extent the decline in oil prices continues or the lower prices are sustained in future periods.

**Liquidity and Capital Resources**

Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are revenue generated from operations, levels of accounts receivable and accounts payable and capital expenditures.

FY 2022 and FY 2021

Net cash (used in) operating activities was $(475,519) for FY 2022, as compared to net cash provided by operating activities of $7,829,910 for FY 2021. Cash used in operating activities for FY 2022 was primarily caused by White River Holdings net loss partially offset by adjustments including depreciation, amortization, depletion and accretion, share-based compensation, and losses on the sale of fixed assets and disposal or abandonment of oil and gas properties as well as amounts allocated from Ecoark and changes in amounts due to Ecoark. In FY 2021, the amounts due to parent (Ecoark) were higher by nearly $10 million, and accrued payable and accrued liabilities increased by approximately $2.6 million, which were the principal reasons for the difference in net cash provided by (used in) operations between periods.

Net cash provided by investing activities was $585,774 for FY 2022, compared to net cash (used in) investing activities of $(6,406,885) for FY 2021. Net cash used in investing activities in FY 2022 were comprised of proceeds from the sale of oil and gas properties as we sold various leases that had large plugging liabilities, partially offset by purchases of oil and gas properties, net of asset retirement obligations. In FY 2021, the cash used in investing activities primarily related to purchases of oil and gas properties, net of asset retirement obligations, and capitalized drilling costs.

Net cash (used in) financing activities for FY 2022 was $(109,618) arising from a decrease in cash overdraft. In FY 2021, we used $(1,288,545) in cash flows from financing activities related to repayment to prior owners and repayment of related party notes, partially offset by an increase in cash overdraft.

Nine Months Ended December 31, 2022 and 2021

Net cash (used in) provided by operating activities for continuing operations was $(6,422,633) for the nine months ended December 31, 2022, as compared to $330,706 for the same period in 2021. Cash used in operating activities for the nine months ended December 31, 2022 was primarily caused by the $27,868,528 net loss, the non-cash charges related to the derivative liability and the stock-based compensation of $3,394,071 (including value of common shares issued) and impairment of $5,917,843. In the 2021 period, the changes in operating activities related to the net income from continuing operations of $3,407,485 offset by the changes in accounts payable and the amounts that were due to Ecoark including the home office allocation.

Net cash used in investing activities was $310,640 for the nine months ended December 31, 2022, compared to $320,500 for the nine months ended December 31, 2021. Net cash used in investing activities in the nine months ended December 31, 2022 were comprised of proceeds received from the sale of equipment, net of purchases and the capitalization of certain drilling costs on the Peabody AMI 12A #18 well. In the 2021 period, the cash used in investing activities related to purchases of oil and gas properties and fixed assets, offset slightly by sales of fixed assets.

Net cash provided by (used in) financing activities for the nine months ended December 31, 2022 was $7,697,662 which comprised of $4,721,816 in our private investment in public equity, or "PIPE," financing transaction in which we sold our Series C and accompanying Warrants, $3,000,000 in cash transferred to the Company from Ecoark which was a condition of such acquisition, $145,266 in proceeds from long-term debt, $1,485,000 in notes payable offset by repayments of long-term debt and notes payable of $1,588,561 and a decrease in a cash overdraft. In the 2021 period, we used $9,798 in cash flows from financing activities related to the decrease in the cash overdraft.

Available Cash

As of March 28, 2023, the Company has approximately $429,534 in cash and cash equivalents.

Well Opening Requirements

The Company has continuous drilling requirements to drill or re-complete a well on its 9,615 Peabody Blackhawk lease every 270 days to keep the lease active. The Company drilled and completed a well in November 2022 on this oil and gas mineral lease and extended the lease to at least August 2023. Depending on the formation drilled, the costs could be as high as approximately $2,000,000. In this event, we would likely seek significant partners to share the cost. We have already orally agreed to afford Ault Energy a 25% participation right in future wells we drill. Ault Energy is a subsidiary of Ault which invested $12 million in Ecoark in June 2022. We completed a joint oil and gas well drilling project with Ault Energy in October 2022 in which Ault Energy was issued a 40% working interest and a 30% net revenue interest. Ault Energy executed a participation agreement with White River in November 2022 to participate in a second well with a 37.5% working interest and a 27% net revenue interest.

PIPE Offering

From October 19, 2022 through November 8, 2022, the Company raised a total of $4,756,816 in the PIPE Offering. The net proceeds from the PIPE Offering, after offering expenses and related costs, are being used for working capital and general corporate purposes including oil and gas drilling on the Company's working interests in Louisiana and Mississippi. The terms of the securities sold in the PIPE Offering are outlined under "The Private Placement."

Between March 12, 2023 and March 27, 2023, the Company entered into additional SPAs with accredited investors on the same terms as the PIPE Offering, whereby the purchasers agreed to purchase a total of 24.28 Units from the Company, at a purchase price of $25,000 per Unit for a total purchase price of $607,000.

Convertible Note Financing

On December 20, 2022, the Company entered into a SPA with an accredited investor (the "Purchaser") whereby the Purchaser lent the Company an aggregate of $1,500,000 in gross proceeds and the Company issued the Purchaser a 10% Original Issue Discount Senior Secured Convertible Promissory Note in the principal amount of $1,666,667.67 (the "Note"). The proceeds are being used for both working capital and growth capital.

Pursuant to the SPA, the Company, its direct and indirect subsidiaries, and Jay Puchir and Randy May, executive officers of the Company, entered into Guarantee Agreements (the "Guarantee") with the Purchaser pursuant to which each subsidiary and Messrs. Puchir and May personally guaranteed to the Purchaser the payment of the Note. In addition, Messrs. Puchir and May pledged the shares of common stock they hold or have the right to acquire in the Spin-Off as collateral to secure the Company's obligations under the Note, and each individual also executed affidavits of confession and lock-up agreements to that effect. The affidavits of confession signed by Messrs. Puchir and May in connection with their Guarantees will permit the Purchaser to obtain a judgment against them personally upon the occurrence of an event of default without having to file a lawsuit.

The Note is due September 16, 2023. The Note bears interest at a rate of 12% per annum, payable monthly, subject to an increase to 18% per annum in case of an event of default as provided for therein. In addition, all overdue accrued and unpaid principal and interest is subject to a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law which if applicable accrues daily from the date such principal and interest is due.

The Note is convertible into shares of the Company's common stock at any time following the issuance date at the Purchaser's option at a conversion price equal to the lesser of (i) $1.00 per share and (ii) the average of the five-closing prices of the common stock immediately prior to the date of conversion, subject to certain adjustments (including based on the issuance of lower priced securities) and beneficial ownership limitations. Upon an event of default, the Purchaser may convert the Note at a reduced conversion price equal to 70% of the lowest closing price of the common stock for the 10 prior trading days.

Under the Note, beginning on April 16, 2023 the Company is required to pay monthly redemption amounts equal to one-fourth of the original principal amount at 120% of such principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note, with each payment resulting in a reduction in the principal of the Note at 100% (as compared to 120%). Furthermore, at any time after the issuance date of the Note, the Company may, after written notice to the Purchaser, prepay the Note in an amount equal to 120% of the then outstanding principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note. The Company will also be required to offer to pay the Note at 120% of the principal amount plus any unpaid accrued interest, upon the occurrence of certain events including (i) a change of control or sale of assets, (ii) a sale by the Company of equity or debt securities for gross proceeds to the Company of at least $5 million, and (iii) upon the maturity of the Note.

The Note is secured by the assets of the Company and its subsidiaries. The Note provides for certain events of default, including failure to pay amounts owing on the Note when due, failure to observe other covenants or obligations under the Note, default under any other indebtedness or material contract, a bankruptcy event with respect to the Company or a significant subsidiary, failure to maintain listing or quotation of the common stock on a trading market, failure to maintain the current public information requirement under Rule 144, and a judgment or similar process against the Company or any of its subsidiaries or assets in excess of $100,000. Upon an event of default, the Purchaser may cause the Note to become immediately due and payable and require the Company to pay 125% of the then outstanding principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note.

Further, pursuant to the Note the Company is subject to certain restrictive covenants, including covenants against incurring new indebtedness or liens on its assets, paying cash dividends or distributions on any equity securities, or entering into transactions with affiliates, subject to certain exceptions. In addition, under the Note the Company agreed to at all times reserve three times the number of shares of common stock into which the Note is convertible.

In addition, pursuant to the SPA, the Company entered into a Registration Rights Agreement with each Purchaser in which the Purchasers are entitled to "piggyback" registration rights, pursuant to which the Company has agreed to include the underlying shares of Common Stock from the conversion of the Note in a registration statement, if the Company files a registration statement for another purpose, subject to certain terms and conditions.

**<u>Critical Accounting Policies, Estimates and Assumptions</u>**

***Oil and Gas Properties***

The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under the full cost method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs are capitalized. General and administrative costs related to production and general overhead are expensed as incurred.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

***Limitation on Capitalized Costs***

Under the full-cost method of accounting, we are required, at the end of each reporting period, to perform a test to determine the limit on the book value of our oil and gas properties (the "Ceiling" test). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the Ceiling, the excess or impairment is charged to expense. The expense may not be reversed in future periods, even though higher oil and gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10% and assuming continuation of existing economic conditions, of (1) estimated future gross revenues from proved reserves, which is computed using oil and gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month hedging arrangements pursuant to Staff Accounting Bulletin ("SAB") 103, less (2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus, (b) the cost of properties being amortized; plus, (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties.

***Oil and Gas Reserves***

Reserve engineering is a subjective process that is dependent upon the quality of available data and interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary sometimes significantly. In addition, physical factors such as results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.

***Joint Interest Activities***

Certain of our exploration, development and production activities are conducted jointly with other entities and, accordingly, the consolidated financial statements reflect only our proportionate interest in such activities.

***Inventories***

Crude oil, products and merchandise inventories are carried at the lower of cost (last-in-first-out (LIFO)) or net realizable value. Inventory costs include expenditures and other charges directly and indirectly incurred in bringing the inventory to its existing condition and location.

***Accounting for Asset Retirement Obligation***

Asset retirement obligations ("ARO") primarily represent the estimated present value of the amount the Company will incur to plug, abandon and remediate its producing properties at the projected end of their productive lives, in accordance with applicable federal, state and local laws. The Company determined its ARO by calculating the present value of the estimated cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligation's inception, with an offsetting increase to proved properties or to exploration costs in cost of revenues.

***Revenue Recognition***

The Company accounts for revenue in accordance with ASC Topic 606, *Revenue from Contracts with Customers*.

The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 1: Identify the contract with the customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 2: Identify the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 3: Determine the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 4: Allocate the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 5: Recognize revenue when the Company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Variable consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Constraining estimates of variable consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The existence of a significant financing component in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Noncash consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

The Company accounts for contract costs in accordance with ASC Topic 340-40, *Contracts with Customers*. The Company recognizes the cost of sales of a contract as expense when incurred or at the time a performance obligation is satisfied. The Company recognizes an asset from the costs to fulfil a contract only if the costs relate directly to a contract, the costs generate or enhance resources that will be used in satisfying a performance obligation in the future and the costs are expected to be recovered. The incremental costs of obtaining a contract are capitalized unless the costs would have been incurred regardless of whether the contract was obtained.

The Company recognizes revenue for their proportionate share of revenue when: (i) the Company receives notification of the successful sale of a load of crude oil to a buyer; (ii) the buyer will provide a price based on the average monthly price of crude oil in the most recent month; and (iii) cash is received the following month from the crude oil buyer.

**MANAGEMENT**

The table below sets forth certain information concerning our executive officers and directors, including their names, ages, and positions with us. Our executive officers are chosen by our Board and hold their respective offices until their resignation or earlier removal by the Board.

Our Bylaws, as amended, provide for a classified Board, with the Board divided into four classes, with each class consisting as nearly as possible of one fourth of the number of directors constituting the full Board. Subject to the rights of holders of any series of preferred stock, each director shall serve for a term ending on the fourth annual meeting of stockholders following the annual meeting at which such director was elected. The initial terms of each class of directors are as follows: (i) Class A shall serve for a term expiring at the Company's first annual stockholder's meeting after the effectiveness of the Bylaws (August 15, 2022), (ii) Class B shall serve for a term expiring at the second stockholder's meeting after August 15, 2023, (iii) Class C shall serve for a term expiring at the third stockholder's meeting after August 15, 2024, and (iv) Class D shall serve for a term expiring at the third stockholder's meeting after August 15, 2025.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Position** | **Board Class** |
| Jay Puchir | 46 | Chief Executive Officer and Principal Financial Officer | N/A |
| Randy May | 58 | Executive Chairman | Class D |
| Danny Hames | 63 | Director | Class C |
| James Cahill | 65 | Director | Class B |
| Greg Landis | 60 | Director | Class A |
| Alisa Horgan | 29 | Director | Class D |

---

The following information pertains to the members of our Board and executive officers, their principal occupations and other public company directorships for at least the last five years and information regarding their specific experiences, qualifications, attributes and skills:

**Jay Puchir**. Mr. Puchir has served as the Chief Executive Officer and Principal Financial Officer of the Company since July 2022. He has served as Chief Financial Officer of Ecoark since April 12, 2022 and Treasurer of Ecoark since October 22, 2020. Mr. Puchir has served as co-fund manager of White River Private Capital Management LLC since November 2022. Mr. Puchir also served as the Chief Executive Officer and President of Banner Midstream Corp., a former Ecoark subsidiary, from its formation in April 2018 to September 2022. He previously was Chief Financial Officer of Agora Digital Holdings, Inc., a majority owned subsidiary of Ecoark, from September 2021 to April 2022. Mr. Puchir served in various roles with Ecoark as an executive at the Company including Director of Finance from December 2016 to March 2017, Chief Executive Officer from March 2017 to October 2017, Chief Financial Officer from October 2017 to May 2018 and Chief Accounting Officer from March 2020 to October 2020. He served as Chief Executive Officer of Banner Energy Services Corp. from November 2019 to August 2020 and as Chairman from February 2020 to August 2020. Mr. Puchir is a licensed Certified Public Accountant in the State of South Carolina.

**Randy S. May.** Mr. May has served as Executive Chairman since July 2022. He has served as Chairman of the Ecoark Board since April 11, 2016 and served as Chief Executive Officer of Ecoark from April 13, 2016 through March 28, 2017, and then again from September 21, 2017, to the present. Mr. May has also served as the Executive Chairman of the Board of Directors of Agora, an approximately 89% owned subsidiary of the Company, since September 2021. Mr. May is a 25-year retail and supply-chain veteran with experience in marketing, operational and executive roles. Prior to joining the Company, Mr. May held a number of roles with WalMart Stores, Inc. ("Walmart"). From 1998 to 2004, Mr. May served as Divisional Manager for half the United States for one of Walmart's specialty divisions, where he was responsible for all aspects of strategic planning, finance, and operations for more than 1,800 stores. Mr. May's qualifications and background that qualify him to serve on the Board include his strong managerial and leadership experience, his extensive knowledge of strategic planning, finance and operations, as well his ability to guide the Company.

**Danny Hames.** Mr. Hames has served as a director of the Company since July 2022. He also served as President and Chief Executive Officer of SemahTronix, LLC, a wiring harness assembly business, from April 2017 to September 2021 when he retired.

**James Cahill.** Mr. Cahill has served as a director of the Company since July 2022. Since September 2002, Mr. Cahill has been a restaurant owner and manager for various restaurants in New York.

**Greg Landis.** Mr. Landis has served as a director of the Company since July 2022. Since 2011, Mr. Landis has served as the President of Landis & Associates PLLC.

**Alisa Horgan.** Ms. Horgan has served as a director of the Company since July 2022 and as Chief Administrative Officer since December 2, 2022. From May 2018 through July 2022, Ms. Horgan was a real estate broker. From July 2017 through May 2018, Ms. Horgan served as the President of Vetritionals.

**CORPORATE GOVERNANCE**

**Appointment of Officers**

Each executive officer serves at the discretion of our Board and holds office until his successor is duly elected and qualified or until his earlier resignation or removal.

**Code of Business Conduct and Ethics**

We have not adopted a code of business conduct and ethics, however we plan to adopt such a code, that will apply to all of our employees, officers and directors, prior to or upon to effectiveness of the Registration Statement of which this Prospectus is a part. Upon the adoption of the code of business conduct and ethics, the full text of our code will be posted on our website. We intend to disclose any amendments to our code of business conduct and ethics, or waivers of its requirements, on our website or in filings under the Exchange Act.

**Board of Directors**

Our business and affairs are managed under the direction of our Board. We currently have five directors.

**Director Independence**

Our Board has undertaken a review of the independence of each director. Based on information provided by each director concerning his or her background, employment, and affiliations, our Board has determined that Danny Hames, Greg Landis and James Cahill do not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the applicable rules and regulations of the SEC and the Nasdaq listing standards. In making these determinations, our Board considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our Board deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director, and the transactions involving them described above.

**Family Relationships**

Alisa Horgan, a director of the Company, is the daughter of Randy S. May, Executive Chairman and a director, and wife of Richard Horgan, current Vice President of M&A, former Chief Executive Officer and former director.

**Committees of the Board of Directors**

Our Board has established an Audit Committee, a Compensation Committee and a Nominating and Corporate Governance Committee. The composition and responsibilities of each of the committees of our Board is described below. Members will serve on these committees until their resignation or until as otherwise determined by our Board. Our Board may establish other committees as it deems necessary or appropriate from time-to-time.

**Audit Committee**

Our Audit Committee is comprised of Danny Hames, Greg Landis and James Cahill. Greg Landis is the Chairman of our Audit Committee and meets the requirements for independence under the current Nasdaq listing standards and SEC rules and regulations. In addition, our Board has determined that Mr. Landis is an "audit committee financial expert" as defined in Item 407(d) of Regulation S-K promulgated under the Securities Act. This designation does not impose on him any duties, obligations, or liabilities that are greater than are generally imposed on members of our audit and compliance committee and our Board. Each member of our Audit Committee is financially literate. Our Audit Committee is directly responsible for, among other things:

● selecting a firm to serve as the independent registered public accounting firm to audit our consolidated financial statements;

● ensuring the independence of the independent registered public accounting firm;

● discussing the scope and results of the audit with the independent registered public accounting firm and reviewing, with management and that firm, our interim and year-end operating results;

● establishing procedures for employees to anonymously submit concerns about questionable accounting or audit matters;

● considering the adequacy of our internal controls and internal audit function;

● inquiring about significant risks, reviewing our policies for risk assessment and risk management, including cybersecurity risks, and assessing the steps management has taken to control these risks;

● reviewing and overseeing our policies related to compliance risks;

● reviewing related party transactions that are material or otherwise implicate disclosure requirements; and

● approving or, as permitted, pre-approving all audit and non-audit services to be performed by the independent registered public accounting firm.

**Compensation Committee**

Our Compensation Committee is comprised of Danny Hames, Greg Landis and James Cahill. James Cahill is the Chairman of our Compensation Committee. The composition of our compensation committee meets the requirements for independence under the current Nasdaq listing standards and SEC rules and regulations. Each member of this Committee is a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act. Our Compensation Committee is responsible for, among other things:

● reviewing and approving, or recommending that our Board approve, the compensation and the terms of any compensatory agreements of our executive officers;

● reviewing and recommending to our Board the compensation of our directors;

● administering our stock and equity incentive plans;

● reviewing and approving, or making recommendations to our Board with respect to, incentive compensation and equity plans; and

● establishing our overall compensation philosophy.

**Nominating and Corporate Governance Committee**

Our Nominating and Corporate Governance Committee is comprised of Danny Hames, Greg Landis and James Cahill. Danny Hames is the Chairman of our Nominating and Corporate Governance Committee. The composition of our Nominating and Corporate Governance Committee meets the requirements for independence under the current Nasdaq listing standards and SEC rules and regulations. Our Nominating and Corporate Governance Committee is responsible for, among other things:

● identifying and recommending candidates for membership on our Board;

● recommending directors to serve on Board committees;

● reviewing and recommending our corporate governance guidelines and policies;

● reviewing succession plans for senior management positions, including the Chief Executive Officer;

● reviewing proposed waivers of the Code of Business Conduct and Ethics for directors, executive officers, and employees (with waivers for directors or executive officers to be approved by the Board);

● evaluating, and overseeing the process of evaluating, the performance of our Board and individual directors; and

● advising our Board on corporate governance matters.

**EXECUTIVE COMPENSATION**

**Summary Compensation Table**

The following table summarizes all compensation paid, earned or accrued by the Company during FY 2022 and FY 2021 by: (i) all individuals who served as the Company's principal executive officer during FY 2022; (ii) the Company's two most highly compensated executive officers other than the principal executive officer who were serving as an executive officer of the Company as of FY 2022; and (iii) up to two additional individuals for whom disclosure would have been provided under (ii) above but for the fact that the individual was not serving as an executive officer of the Company at March 31, 2022 and whose compensation exceeded $100,000.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Salary** | **Bonus** | **All Other compensation** | **Total** |
| Richard Horgan (1) | 2022 | $73500 | – |  | 73500 |
| Vice President of M&A; Former Chief Executive Officer | 2021 | $122115 | – |  | 122115 |

---

(1) Mr. Horgan is our former Chief Executive Officer. He resigned from that role in July 2022, at which time he was also appointed our Vice President of M&A.

**Outstanding Equity Awards at Fiscal Year End**

As of March 31, 2022, we did not have outstanding any unexercised options, stock or other equity incentive plan awards. Our compensation arrangements that were approved in connection with the July 2022 acquisition of White River Holdings are described below.

**Agreements with Executive Officers**

The Company's Board approved five-year executive employment agreements pursuant to which our officers are entitled to the following compensation and other rights. These executive officers received grants of restricted stock in July 2022 which were cancelled and replaced on December 2, 2022 by RSUs with identical economic terms:

Randy May, our Executive Chairman, is receiving an annual base salary of $400,000, and was granted 5,000,000 shares of restricted common stock with half of the shares vesting annually over a five-year period and the remainder vesting based on performance metrics set forth in the agreement. Under his Agreement, Mr. May was also granted the following rights related to the Company's oil and gas operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an ORI to be held in perpetuity from either the Company or its subsidiaries equal to 5% in any and all successfully drilled and completed oil and/or gas wells during the term of his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a 15% participation right in the funding and ownership interest in any drilling or participation by the Company or any subsidiary in the drilling by the Company or a third party of an oil and gas well other than the Fund (a "Participation Right").

Jay Puchir, our Chief Executive Officer, is receiving an annual base salary of $350,000 and was granted 5,000,000 shares of restricted common stock with half of the shares vesting annually over a five-year period and the remainder vesting based on performance metrics set forth in the agreement. Under his agreement, Mr. Puchir was also granted the following rights related to the Company's oil and gas operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a 5% ORI during the term of his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a 10% Participation Right otherwise identical to Mr. May's.

Alisa Horgan, our Chief Administrative Officer and a member of our Board and Mr. May's daughter, is receiving an annual base salary of $180,000, and was granted 2,000,000 shares of restricted common stock with the shares vesting annually over a 10-year period.

Her husband, Richard Horgan, Senior Vice President of M&A and our former Chief Executive Officer, is receiving an annual base salary of $200,000, and was granted 2,000,000 shares of restricted common stock with the shares vesting annually over a 10-year period.

Each of the above employment agreements are also subject to the following severance provisions:

In the event of termination by the Company without "cause" or resignation by the officer for "good reason," each officer is entitled to receive 2.99 years' base salary, immediate vesting of unvested equity awards and continued benefits for six months.

In case of termination or adverse change in title upon a change of control, each officer is entitled to receive 2.99 years' base salary, immediate vesting of unvested equity awards, continued benefits for 18 months and 100% of the existing target bonus, if any, for that fiscal year when the change of control occurs.

Generally, "change of control" is defined in the employment agreements to include a transfer of 50% of the voting securities or interests of the Company or a key subsidiary (as defined in the Internal Revenue Code and Treasury Regulations thereunder), including through a merger or asset purchase, a change in the majority of the Board in a two-year period, or a liquidation or dissolution by the Company. The definition of change of control is subject to certain exceptions and limitations as more particularly set forth in the employment agreements.

Generally, "good reason" is defined as a material diminution in the officer's authority, duties or responsibilities due to no fault of his or her own (unless he or she has agreed to such diminution); any other action or inaction that constitutes a material breach by the Company under the employment agreement; or a relocation of the principal place of employment to a location outside the location specified in the employment agreements.

Generally, "cause" is defined as a felony conviction or plea related to the business of the Company; gross negligence or intentional misconduct in carrying our his or her duties resulting in material harm to the Company; misappropriation of Company funds or otherwise defrauding the Company; breach of fiduciary duty to the Company; material breach of any agreement with the Company without timely cure; breach of certain restrictive covenants set forth in the employment agreement; a federal injunction enjoining the officer from violating federal securities laws; a cease and desist order or other order issued by the SEC; refusal to carry out a resolution adopted by the Company's Board after a reasonable opportunity to dispute such resolution; or alcohol or drug abuse in a manner that interferes with the successful performance of his or her duties.

Further, upon the officer's death or disability, as defined, during the officer's term of employment, the officer's estate or the officer, as applicable, becomes entitled to, among other things, a $500,000 lump-sum payment and full vesting of all outstanding equity grants made to the officer.

In the event an officer's employment is terminated at the end of the term upon the notice of non-renewal and the officer remains employed until the end of the term, the officer will be entitled to receive six months' base salary and continued benefits for six months.

Under the terms of the Employment Agreements, the officers are subject to non-competition and non-solicitation covenants during the term of their employment and during one year following termination of employment with the Company. The Employment Agreements also contain customary confidentiality and non-disparagement covenants.

**Director Compensation**

To date, we have not paid our director any compensation for services on our Board. However, the Company has agreed to the following compensation for each non-employee director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an annual grant of $100,000 in RSUs which will vest on the final business day of each quarter equal to one-fourth of the total stipend, or $25,000 per quarter, with the number of shares to be determined based on the volume weighted average price of the Company's common stock as of each quarterly vesting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an annual cash fee of $50,000 which will vest on the final business day of each quarter equal to one-fourth of the total fee, or $12,500 per quarter (the "Cash Fees").

The director compensation set forth above is subject to upward adjustment upon the successful uplisting of the Company to a national securities exchange, whereupon the RSU grant will be increased to $200,000 per year and the Cash Fees will be increased to $100,000 per year. The existing directors also initially received restricted stock grants which were cancelled on December 1, 2022 in exchange for RSU grants.

**Equity Compensation Plan Information**

On December 2, 2022 the Board approved the Company's 2022 Equity Incentive Plan (the "2022 Plan"). The 2022 Plan enables the Company to provide stock-based incentives that align the interests of employees, consultants and directors with those of the stockholders of the Company by motivating these persons to achieve long-term results and rewarding them for their achievements; to attract and retain the types of employees, consultants and directors who will contribute to the Company's long-range success; and to promote the success of the Company's business.

**<u>Material Terms of the 2022 Equity Incentive Plan</u>**

The following is a summary of the material terms of the 2022 Plan, which is qualified in its entirety by the full text of the 2022 Plan, a copy of which is filed as Exhibit 10.5 to the registration statement of which this prospectus is a part.

**Duration of the 2022 Plan**

The 2022 Plan became effective upon approval by the Board and will remain in effect until December 2, 2032, unless terminated earlier by the Board.

**Plan Administration**

The 2022 Plan will be administered by the Compensation Committee of the Board (the "Committee") or, in the Board's sole discretion, by the Board. The Committee will have the authority to, among other things, interpret the 2022 Plan, determine who will be granted awards under the 2022 Plan, determine the terms and conditions of each award, and take action as it determines to be necessary or advisable for the administration of the 2022 Plan.

**Eligibility**

The Committee may grant awards to any employee, consultant or director of the Company and its affiliates. However, only employees are eligible to receive Incentive Stock Options ("ISOs") as defined by the Internal Revenue Code.

**Shares Available for Awards; Limits on Awards**

The 2022 Plan authorizes the issuance of up to 25,000,000 shares of the Company's common stock. If any outstanding award expires or is cancelled, forfeited, or terminated without issuance of the full number of shares of common stock to which the award related, then the shares subject to such award will again become available for future grant under the 2022 Plan.

**Types of Awards That May Be Granted**

Subject to the limits in the 2022 Plan, the Committee has the authority to set the size and type of award and any vesting or performance conditions. The types of awards that may be granted under the 2022 Plan are: stock options (including both ISOs and non-qualified stock options), restricted stock, restricted stock units ("RSUs"), and Stock Appreciation Rights ("SARs").

Stock Options

A stock option is the right to purchase shares of common stock at a future date at a specified price per share called the exercise price. An option may be either an ISO or a non-qualified stock option. Except in the case of options granted pursuant to an assumption or substitution for another option, the exercise price of a stock option may not be less than the fair market value (or in the case of an ISO granted to a 10% stockholder, 110% of the fair market value) of a share of common stock on the grant date.

Stock Appreciation Rights

A SAR is the right to receive payment of an amount of cash or shares of common stock having a value equal to the excess of the fair market value of a share of common stock on the date of exercise of the SAR over the exercise price. The exercise price of a SAR may not be less than the fair market value of a share of common stock on the grant date. SARs may be granted alone or in tandem with an option granted under the 2022 Plan. SARs may be settled in cash or in common stock at the discretion of the Committee.

Restricted Stock

A restricted stock award is an award of actual shares of common stock which is subject to certain restrictions on sale for a period of time determined by the Committee. Restricted stock may be held by the Company or in escrow or delivered to the participant pending the release of the restrictions. Participants who receive restricted stock awards generally have the rights and privileges of stockholders regarding the shares of restricted stock during the restricted period, including the right to vote and the right to receive dividends, provided that any cash or stock dividends with respect to the restricted stock will be withheld by the Company for the participant's account, and interest may be credited on the amount of the cash dividends withheld at a rate and subject to such terms as determined by the Committee. The cash dividends or stock dividends so withheld will be distributed to the participant in cash or, at the discretion of the Committee, in shares of common stock having a fair market value equal to the amount of such dividends upon the release of restrictions on such restricted stock, unless such restricted stock is forfeited.

Restricted Stock Units (RSUs)

An RSU is an award of hypothetical common stock units having a value equal to the fair market value of an identical number of shares of common stock, which may be subject to certain restrictions for a period of time determined by the Committee. One feature of an RSU is that delivery of the underlying common stock is delayed until vesting or a later date. No shares of common stock are issued at the time an RSU is granted, and the Company is not required to set aside any funds for the payment of any RSU award. Because no shares are outstanding, the participant does not have any rights as a stockholder. The Committee may grant RSUs with a deferral feature (deferred stock units or DSUs), which defers settlement of the RSU beyond the vesting date until a future payment date or event set out in the participant's award agreement. The Committee has the discretion to credit RSUs or DSUs with dividend equivalents.

**Adjustments Upon Changes in Stock**

In the event of changes in the outstanding common stock or in the capital structure of the Company by reason of any stock or extraordinary cash dividend, stock split, reverse stock split, an extraordinary corporate transaction such as any recapitalization, reorganization, merger, consolidation, combination, exchange, or other relevant change in capitalization occurring after the grant date of any award, awards granted under the 2022 Plan and any award agreements, the exercise price of options and SARs, the maximum number of shares of common stock subject to all awards and the maximum number of shares of common stock with respect to which any one person may be granted awards during any period will be equitably adjusted or substituted, as to the number, price or kind of a share of common stock or other consideration subject to such awards to the extent necessary to preserve the economic intent of the award.

**Change of Control**

In the event of a change of control, the vesting of all awards will fully accelerate and all outstanding options and SARs will become immediately exercisable only if the successor corporation refuses to assume or substitute for the outstanding awards. The change of control is defined as (i) the consummation of the sale or disposition by the Company of all or substantially all of the Company's assets in a transaction which requires stockholder approval under applicable state law; or (ii) the consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

**Limitation on Awards**

The exercise price of options or SARs granted under the 2022 Plan shall not be less than the fair market value of the underlying common stock at the time of grant. In the case of ISOs, the exercise price may not be less than 110% of the fair market value in the case of 10% stockholders. Options and SARs may not be exercisable for a period of more than 10 years after the date of grant, except that the exercise period of ISOs granted to 10% stockholders is limited to five years. The exercise price may be paid by check or wire transfer or, at the discretion of the Committee, by delivery of shares of our common stock having a fair market value equal, determined as provided for in the 2022 Plan or otherwise as approved by the Committee, as of the date of exercise to the cash exercise price, or a combination thereof.

**Amendment or Termination of the 2022 Plan**

The Board may amend or terminate the 2022 Plan at any time. However, except in the case of adjustments upon changes in common stock, no amendment will be effective unless approved by the stockholders of the Company to the extent stockholder approval is necessary to satisfy applicable laws or the rules of any stock exchange or quotation system on which the shares of common stock are listed or quoted, and the applicable laws of any foreign country or jurisdiction where Awards are granted under the 2022 Plan. Further, any amendment to the 2022 Plan that impairs the rights of participants who received outstanding grants under the 2022 Plan must be approved by such participants.

**Amendment of Awards**

The Committee may amend the terms of any one or more awards. However, the Committee may not amend an award that would impair a participant's rights under the award without the participant's written consent.

**Forfeiture and Recoupment**

Each award and the applicable participant's rights, payments and benefits with respect to an award are subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of the participant's: (i) breach of a duty of confidentiality, (ii) purchasing or selling securities of the Company in violation of the Company's insider trading guidelines, (iii) competing with the Company, (iv) soliciting Company personnel after employment is terminated, (v) failure to assign any invention or technology to the Company if such assignment is a condition of employment or any other agreements between the Company and the participant, (vi) being terminated for cause, (vii) violating of the Company's insider trading policy, or (viii) engaging in other conduct that is disloyal or detrimental to the interests of the Company as determined by the Board.

**Transfer of Awards**

Except for ISOs, all awards are transferable subject to compliance with the securities laws and the 2022 Plan. ISOs are only transferable by will or by the laws of descent and distribution.

**MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS**

**Market Information**

Our common stock issued is quoted on the OTCQB under the symbol "WRTV." On March 22, 2023, the last reported sale price of our common stock on the OTCQB was $1.00.

We have applied to have our Warrants traded on the OTCQB under the symbol "WTRVW." We were issued Cusip #96448D 117 on January 23, 2023 for these warrants to be traded upon approval of our application by the OTCQB.

**Stockholders**

As of March 24, 2023 there were an estimated 135 holders of record of our common stock. A total of 202,643 shares of common stock are held in street name and are held by additional beneficial owners.

**Dividends**

We have never paid a cash dividend on our common stock since inception. The payment of dividends may be made at the discretion of our Board, and will depend upon, but not limited to, our operations, capital requirements, and overall financial condition.

We do not anticipate paying cash dividends on our common stock in the foreseeable future. The payment of dividends on our common stock will depend on earnings, financial condition and other business and economic factors affecting it at such time as the Board may consider relevant. We intend to follow a policy of retaining all of our earnings to finance the development and execution of our strategy and the expansion of our business. If we do not pay dividends, our common stock may be less valuable because a return on your investment will occur only if our stock price appreciates.

**RELATED PARTY TRANSACTIONS**

Set forth below is a brief description of the White River Holding (and us since July 25, 2022) transactions since April 1, 2020 in excess of the lesser of $120,000 and one percent of the average of the Company's total assets at year end for the last two completed fiscal years, in which we or White River Holdings was a participant and in which any director or executive officer of the Company, any known 5% or greater stockholder of the Company or any immediate family member of any of the foregoing persons, had a direct or indirect material interest as defined in Item 404(a) of Regulation S-K. As permitted by the SEC rules, discussion of employment relationships or transactions involving the Company's executive officers and directors, and compensation solely resulting from such employment relationships or transactions, or service as a director of the Company, as the case may be, has been omitted to the extent disclosed in the sections of this Prospectus titled "Executive Compensation" or "Director Compensation", as applicable.

White River Holdings has recently formed the Fund which will consist of private external general and limited partners consisting of retail accredited and institutional investors who have or will advance proceeds to the fund in exchange for partnership interests therein. WR Fund #1 Manager, our subsidiary, is the managing General Partner of the Fund. The Fund is currently offering up to 4,000 units of partnership interest at a price per unit of $50,000 with a minimum investment of one unit or $50,000 through a five-year closed-end fund structure. Mr. May, our Executive Chairman and Mr. Puchir, our Chief Executive Officer are also serving in the roles as Co-Fund Managers of WR Fund #1 Manager. Proceeds of the fund will be intended to be used in drilling White River drilling projects whereby White River will receive a 25% promoted working interest and WR Fund #1 Manager will receive a 10% carried working interest at the successful closure of the fund and 1% annual management fee. White River has made a commitment to acquire the partnership interest of all investor partners in the Fund at the end of the Fund's five-year term at the PV20 valuation generated by an independent valuation firm subject to the cash availability of White River.

Additionally, pursuant to their respective Employment Agreements, each of Messrs. May and Puchir were granted a 5% ORI from the Company and its subsidiaries in any and all successfully drilled and completed oil and/or gas wells, as well a participation right of 15% and 10%, respectively, in the funding and ownership interest in any drilling or participation by the Company or any subsidiary in the drilling by a third party of an oil and gas well, which does not include the Fund but will include any other investment funds the Company sponsors. The initial terms of their Employment Agreements are five years, subject in each case to possible renewal.

White River Holdings historically relied upon advances from Ecoark which totaled $25,058,733 and $21,582,193, respectively, at March 31, 2022 and 2021. There was no interest charged on this amount and the amount is due on demand and reflected as a current liability. The sum due at July 25, 2022 was contributed to our capital by Ecoark. The balance is comprised of expenses paid on behalf of the Company by Ecoark.

On August 1, 2020, White River Holdings issued a Junior Secured Revolving Promissory Note to Atikin Investments LLC, an entity managed by Jay Puchir, now the Company's Chief Executive Officer. Pursuant to this note, the Company may borrow up to an amount not to exceed $200,000 in principal outstanding at a given time. The note bears interest at a rate of 10% per annum, and was to mature on December 15, 2020, which had been extended to January 15, 2021. As of January 11, 2021, the principal outstanding amounts along with all accrued interest has been repaid.

On October 13, 2022, White River Operating LLC, an indirect subsidiary of the Company, issued a $1,500,000 secured promissory note, which was used to purchase two workover rigs (total value of $1,800,000, where the Company paid a total of $300,000). The note bears interest at the lesser of (i) prime rate plus 7.50%; and (ii) the maximum rate permitted by applicable law, and payments consist of interest and principal in the amount of $25,000 per month through October 13, 2025 when the remaining balance of principal and interest is due. Our Executive Chairman and Chief Executive Officer, Randy May and Jay Puchir, respectively, executed and delivered guarantees in favor of the lender to secure this note. The Company repaid this note on December 6, 2022 because certain unaffiliated oil and gas interest owners declined to execute documents in favor of the lender.

As more particularly described under "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Convertible Note Financing" on page 61, pursuant to the SPA under which the Company sold the Note to the Purchaser, the Company, its direct and indirect subsidiaries, and Jay Puchir and Randy May, executive officers of the Company, entered into Guarantee Agreements with the Purchaser pursuant to which each subsidiary and Messrs. Puchir and May guaranteed to the Purchaser the payment of the Note issued under the SPA. In addition, Messrs. Puchir and May pledged the shares of common stock they hold or have the right to acquire in the anticipated distribution of the Company's common stock by Ecoark as collateral to secure the Company's obligations under the Note, and each individual also executed affidavits of confession and lock-up agreements to that effect. The affidavits of confession signed by Messrs. Puchir and May in connection with their Guarantees will permit the Purchaser to obtain a judgment against them personally upon the occurrence of an event of default without having to file a lawsuit.

In connection with the Company's acquisition of White River Holdings from Ecoark in July 2022, the Company granted Ault certain participation rights in its oil and gas exploration and drilling ventures ("Participation Rights") identical to rights Ecoark had given Ault. Ault exercised these Participation Rights and owed us approximately $3.25 million (as of March 22, 2023) from the exercise.

On March 22, 2023, our Board of Directors approved Ecoark's advancing payments to us of up to $3.25 million (the "Amounts") with the objective of satisfying Ault's obligations payable to the Company from its exercise of the Participation Rights. As of March 28, 2023, Ecoark has advanced us $500,000 under this transaction. Ecoark and Ault have agreed that in lieu of repayment by Ault, Ault will permit Ecoark to redeem shares of Ecoark's Series A Convertible Redeemable Preferred Stock ("Ecoark Series A") held by Ault by dividing the Amounts by the stated value of such shares, or one share of Ecoark Series A for each $10,833.33 advanced to us. The redemption cannot occur until the Spin-Off and a related distribution of Wolf Energy Services Inc. occur which permits Ault to receive its full dividends. The effect of this transaction for the Company is that we begin collecting Amounts from Ecoark in satisfaction of Ault's account payable to us related to the Participation Rights due. The transaction was approved by the independent directors of the Company and Ecoark with Mr. May and his daughter abstaining as White River directors, and Mr. May also abstained as an Ecoark director.

**PRINCIPAL STOCKHOLDERS**

The following table sets forth certain information with respect to the beneficial ownership of our common stock as of the date of this Prospectus for:

● each of our directors;

● each of our executive officers;

● all of our current directors and executive officers as a group; and

● each person, entity or group, who beneficially owned more than 5% of each of our classes of securities.

For the pre-Offering columns, we have based our calculations of the percentage of beneficial ownership on 10,166,667 shares of our common stock outstanding as of March 7, 2023. For the post-Offering columns, the calculations are based on 10,166,667 shares outstanding as of March 7, 2023, plus the Spin-Off Shares and the shares of common stock issuable upon conversion of the Series C, subject to beneficial ownership limitations, for an estimated post-Offering amount of 53,507,269 shares of common stock outstanding. This amount does not give effect to any exercises of the Warrants. We have deemed shares of our common stock subject to warrants that are currently exercisable within 60 days of the date of this Prospectus to be outstanding and to be beneficially owned by the person holding the warrants for the purpose of computing the percentage ownership of that person. Unless otherwise indicated, the principal business address for each of the individuals and entities listed below is our offices Arkansas. These amounts give effect to the Spin-Off and our PIPE Offering to which this Prospectus relates assuming the $1.00 price is used.

The information provided in the table is based on our records, and information provided to us, except where otherwise noted. It does not give effect to the RSUs none of which will vest within 60-days of the date of this Prospectus. The post offering percentages give effect to the receipt of Spin-Off Shares to the extent disclosed in the notes.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Amount and <br> Nature of <br> Beneficial <br> Ownership <br> Common Stock <br> Included\*** | **Pre-Offering Percentage of <br> Common Stock <br> Beneficially <br> Owned** | **Post-Offering Beneficial Ownership Of Common Stock** | **Post-Offering Percentage** |
| Randy May<sup>(1)</sup> | 1587063 | 15.6% | 2293142 | 4.3% |
| Jay Puchir<sup>(2)</sup> | 687063 | 6.8% | 1403264 | 2.6% |
| Richard Horgan <sup>(3)</sup> | 1587063 | 15.6% | 1587063 | 3.0% |
| Danny Hames<sup>(4)</sup> |  | \* |  | \* |
| James Cahill<sup>(5)</sup> |  | \* |  | \* |
| Greg Landis<sup>(6)</sup> |  | \* |  | \* |
| Alisa Horgan<sup>(7)</sup> |  | \* |  | \* |
| **All officers and directors as a group (7 persons)** | 2274126 | 22.4% | 3696406 | 6.9% |
| **5% or more Stockholders** |  |  |  |  |
| May Family Foundation<sup>(8)</sup> | 1587063 | 15.6% | 1587063 | 3.0% |
| Atikin Investments LLC<sup>(9)</sup> | 1487063 | 14.6% | 1487063 | 4.1% |
| Nepsis, Inc. <sup>(10)</sup> |  |  | 3768028 | 7.0% |

---

\* Less than 1%.

(1) **May**. Mr. May is our Executive Chairman and a director. Post-offering amount includes 706,079 Spin-Off Shares.

(2) **Puchir**. Mr. Puchir is our Chief Executive Officer and Chief Financial Officer. Represents shares of common stock held by Atikin Investments LLC an entity for which Mr. Puchir serves as manager. Post-offering amount includes 716,201 Spin-Off Shares, including 709,896 Spin-Off Shares distributable to Atikin Investments LLC.

(3) **Horgan**. Mr. Horgan is our former Chairman of the Board and Chief Executive Officer.

(4) **Hames**. Mr. Hames is a director of the Company.

(5) **Cahill**. Mr. Cahill is a director of the Company.

(6) **Landis**. Mr. Landis is a director of the Company.

(7) **Horgan**. Ms. Horgan is a director of the Company. She disclaims any beneficial ownership in the common stock held by her husband.

(8) **May Family Foundation**. Elizabeth Boyce is the managing member of the May Family Foundation and deemed the beneficial owner of its common stock.

(9) **Atikin Investments LLC**. Address is 5899 Preston Road #505, Frisco, Texas 75034. Atikin Investments LLC (687,063 shares) is managed by Jay Puchir. Included
in this amount is common stock issued to Overcoming the Odds Foundation (800,000 shares) as Jay Puchir controls the voting for this entity.
Post-offering amount includes 709,896 Spin-Off Shares.

(10) **Nepsis, Inc**. Mark Pearson is the President. The address is 8674 Eagle Creek Circle, Minneapolis, MN 55378. Post-offering includes 3,768,028
Spin-Off Shares. Based solely on the information contained in a Schedule 13D/A filed with the SEC on April 13, 2022. Does not include
the PIPE Shares to be issued or issuable upon conversion of the Series C or exercise of the Warrants purchased by in the PIPE Offering,
which are subject to beneficial ownership limitations. See "Selling Stockholders."

**DESCRIPTION OF OUR SECURITIES**

**Capital Stock**

Our authorized capital stock consists of 500,000,000 shares of common stock, par value $0.0001 per share, and 5,000,000 shares of "blank check" preferred stock, par value $0.0001 per share. As of the date of this Prospectus, 10,166,667 shares of our common stock and 1,200 shares of our Series A and 214.5526308 shares of Series C were issued and outstanding. The following description summarizes the material terms of our securities. Because it is only a summary, it may not contain all the information that is important to you. For a complete description, you should refer to our Articles of Incorporation, as amended, our Bylaws, and the Certificates of Designation setting forth the terms of our authorized series of preferred stock, each of which are filed as an exhibit to the Registration Statement of which this Prospectus is a part, and to the applicable provisions of Nevada law, including Chapter 78 of the Nevada Revised Statutes (the "NRS").

**Common stock**

Voting Rights

Holders of our common stock are entitled to one vote for each share held on all matters properly submitted to a vote of stockholders on which holders of common stock are entitled to vote. Our Articles of Incorporation do not provide for cumulative voting with respect to the election of directors. The directors are elected by a plurality of the votes cast at the election.

Dividend Rights

Subject to applicable law and to preferences that may apply to any shares of preferred stock outstanding at the time, the holders of our common stock are entitled to receive dividends out of funds legally available if our Board, in its discretion, determines to declare and pay dividends and then only at the times and in the amounts that our Board may determine.

Liquidation Rights

If the Company becomes subject to a liquidation, dissolution or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our common stock and any participating preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock.

Other Rights and Preferences

The holders of the common stock have no preemptive, conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to the common stock. The rights, preferences and privileges of the holders of the common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of our preferred stock that the Board may designate and issue in the future.

**Series A Preferred Stock**

The Company has authorized 1,200 shares of Series A, of which 1,200 shares are outstanding. Subject to certain terms and conditions set forth in the Certificate of Designation of the Series A, the Series A will become convertible into 42,254,521 shares of the Company's common stock upon such time as (A) the Company has filed a Registration Statement with the SEC and such Form Registration Statement has been declared effective, or is no longer subject to comments from the Staff of the SEC, and (B) Ecoark elects to distribute shares of the Company's common stock to the stockholders. The Series A has a liquidation preference over the common stock and any subsequent series of junior preferred stock equal to the stated value, plus any accrued but unpaid dividends.

**Series B Preferred Stock**

The Company has a single authorized share of Series B Preferred Stock, of which no shares are outstanding. The single share of Series B, if issued, is entitled to vote with the Company's common stock as a single class on any matter brought before the stockholders, and the Series B is entitled to a number of votes equal to the greater of (A) 100,000,000 votes, or (B) 50.1% of the Company's voting power as of the applicable date of determination. Any outstanding Series B will be automatically cancelled upon the Company applying to have its common stock listed on a national securities exchange. The Series B does not come with any dividend rights, preemptive rights or liquidation rights. The Series B was established to ward off any hostile takeover and may be issued by our Board at any time.

**Series C Preferred Stock**

The Company is authorized to issue up to 1,000 shares of Series C, of which 214.5526308 shares are outstanding. The terms Series C are summarized under "The Private Placement."

**Warrants**

The Warrants being offered by the Selling Stockholders hereunder were originally sold by the Company in the PIPE Offering. The terms of the Warrants are summarized under "The Private Placement."

**Anti-Takeover Effects of Certain Provisions of our Articles of Incorporation and Bylaws**

Our Articles of Incorporation and Bylaws contain certain provisions that may have anti-takeover effects, making it more difficult for or preventing a third party from acquiring control of the Company or changing our Board and management. Set forth below is a summary of certain of these provisions.

Classified Board of Directors

The Company's Bylaws provide for a classified Board, with the Board divided into four classes, with each class consisting as nearly as possible of one fourth of the number of directors constituting the full Board. Subject to the rights of holders of any preferred stock, each director shall serve for a term ending on the fourth annual meeting of stockholders following the annual meeting at which such director was elected. The initial terms of each class of directors are as follows: (i) Class A shall serve for a term expiring at the Company's first annual stockholder's meeting after the effectiveness of the Bylaws (August 15, 2022), (ii) Class B shall serve for a term expiring at the second stockholder's meeting after August 15, 2023, (iii) Class C shall serve for a term expiring at the third stockholder's meeting after August 15, 2024, and (iv) Class D shall serve for a term expiring at the third stockholder's meeting after August 15, 2025.

"Blank Check" Preferred Stock

Under our Articles of Incorporation the Board may authorize the issuance of one or more series of preferred stock with such rights, preferences and limitations as the Board may determine, including voting or conversion rights that could adversely affect the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes could, under some circumstances, have the effect of delaying, deferring or preventing a change in control of the Company.

Potential Series B Issuance

As described above, the Series B, if issued, entitles the holder to a number of votes equal to the greater of (A) 100,000,000 votes, or (B) 50.1% of the Company's voting power as of the applicable date of determination. Any outstanding Series B will be automatically cancelled upon the Company applying to have its common stock listed on a national securities exchange. The Board authorized the Series B because the Company is not subject to Section 13 of the Exchange Act, so the protections and disclosure provided by Section 13(d) and the rules and regulations promulgated thereunder do not apply to the Company, and the Series B is intended to enable the Board to act quickly to react to any potential hostile takeover. The auto-cancellation provision was included because the super-voting rights contained in the Series B would violate the rules of a prospective national securities exchange.

Advance Notice of Stockholder's Proposals

Our Bylaws contain advance notice requirements for stockholder proposals wherein stockholders seeking to propose a matter for consideration at an annual meeting must deliver detailed notice to us no earlier than the 120th calendar day, nor later than the 90th calendar day, prior to the anniversary date of the immediately preceding annual meeting, or if the current year's meeting is called for a date that is not within 30 days of the anniversary of the previous year's annual meeting, such notice must be received no later than 10 calendar days following the day on which public announcement of the date of the annual meeting is first made.

Special Meeting Limitations

Under our Bylaws, special meetings of the stockholders may be called only by (i) the Chairman of the Board, (ii) the Chief Executive Officer, or (iii) the President, and shall be called upon a written request signed by a majority of members of the Board.

Jurisdiction and Venue

Section 7(a) of our Articles of Incorporation provides that lawsuits involving the Company and its internal affairs, including derivative actions brought on behalf of the Company by its stockholders under state corporate law, be governed by the laws of Nevada and providing that resulting proceedings be heard exclusively in state courts located within Nevada, which may make actions against or on behalf of the Company more difficult to litigate by stockholders. Similarly, Section 7(b) of our Articles of Incorporation provide the United States federal courts with exclusive jurisdiction over claims brought under the Securities Act. The effect of this provision is that an action under the Securities Act with respect to the Company may only be brought in the federal courts, whereas absent such provision the federal and state courts would otherwise have concurrent jurisdiction over such a matter. Further, Section 7(c) provides for the United States District Court for the District of Nevada as the exclusive venue for any cause of action under either the Securities Act or the Securities Exchange Act, meaning such federal court is the only court in which such a case may be brought and heard.

**Transfer Agent and Registrar**

VStock Transfer, LLC, with an address of 18 Lafayette Place, Woodmere, New York 11598, will act as the transfer agent with respect to our common stock.

**LEGAL MATTERS**

The validity of the securities being offered by this Prospectus will be passed upon for us by Nason, Yeager, Gerson, Harris & Fumero, P.A.

**EXPERTS**

The financial statements included in this Prospectus have been audited by RBSM LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

Certain estimates of our oil and gas reserves and the present values thereof related to our properties included elsewhere in this Prospectus were based upon reserve reports prepared by independent petroleum engineers Ryder Scott Company, L.P. We have included these estimates in reliance on the authority of such firms as experts in such matters.

**WHERE YOU CAN FIND MORE INFORMATION**

This Prospectus, which constitutes a part of the Registration Statement that we have filed with the SEC under the Securities Act, does not contain all of the information in the registration statement and its exhibits. For further information with respect to us and the securities offered by this Prospectus, you should refer to the Registration Statement and the exhibits filed as part of that document. Statements contained in this Prospectus as to the contents of any contract or any other document referred to herein are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the Registration Statement. Each of these statements is qualified in all respects by this reference.

We will be subject to the reporting requirements of the Exchange Act, and file annual, quarterly and current reports, proxy statements and other information with the SEC. Our SEC filings, including the Registration Statement, are publicly available through the SEC's website at *www.sec.gov*. The information contained in, or that can be accessed through, our website is not part of this Prospectus.

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**White River Holdings Corp**

**Consolidated Financial Statements**

---

| | |
|:---|:---|
|  | **Page** |
| [Report of Independent Registered Public Accounting Firm](#A_001) | F-2 |
| [Consolidated Balance Sheets March 31, 2022 and 2021](#jhgj_001) | F-3 |
| [Consolidated Statements of Operations for the Fiscal Years Ended March 31, 2022 and 2021](#jhgj_003) | F-4 |
| [Consolidated Statements of Changes in Stockholder's Equity for the Fiscal Years Ended March 31, 2022 and 2021](#jhgj_004) | F-5 |
| [Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2022 and 2021](#jhgj_005) | F-6 |
| [Notes to Consolidated Financial Statements for the Fiscal Years Ended March 31, 2022 and 2021](#jhgj_006) | F-7 – F-22 |

---

**White River Energy Corp**

**(formerly Fortium Holdings Corp.)**

---

| | |
|:---|:---|
| [Condensed Consolidated Balance Sheets as of December 31, 2022 (Unaudited) and March 31, 2022](#vj_001) | F-23 |
| [Condensed Consolidated Statements of Operations for the Nine and Three Months Ended December 31, 2022 and 2021 (Unaudited)](#vj_002) | F-24 |
| [Condensed Consolidated Statements of Changes in Stockholder's Equity for the Nine and Three Months Ended December 31, 2022 and 2021 (Unaudited)](#vj_003) | F-25 |
| [Condensed Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2022 and 2021 (Unaudited)](#vj_004) | F-26 |
| [Notes to Unaudited Condensed Consolidated Financial Statements for the Nine Months Ended December 31, 2022 and 2021](#vj_005) | F-27 – F-53 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors

White River Holdings Corp

**Opinion on the financial statements**

We have audited the accompanying consolidated balance sheets of White River Holdings Corp (the "Company") as of March 31, 2022 and 2021, and the related consolidated statements of operations, stockholders deficit and cash flows for each of the two years in the period ended March 31, 2022 and 2021, and the related notes and schedule (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2022 and 2021, and the results of its operations and its cash flows for each of the two years in the period ended March 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America.

**Substantial doubt about the Company's Ability to Continue as a Going Concern**

The accompanying combined consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has suffered recurring losses from operations and had an accumulated deficit that raises substantial doubt about its ability to continue as a going concern. Management's plans in regard to these matters are also described in Note 1. The combined consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the combined consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the combined consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the combined consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ RBSM LLP

 

We have served as the Company's auditor since 2020.

New York, NY

October 28, 2022, except for Note 1, as to which the date is March 8, 2023.

**WHITE RIVER HOLDINGS CORP**

**CONSOLIDATED BALANCE SHEETS**

**MARCH 31, 2022 AND 2021** 

---

| | | |
|:---|:---|:---|
|  | **MARCH 31,**<br>**2022** | **MARCH 31,**<br>**2021** |
| **<u>ASSETS</u>** |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash (including $251,050 and $250,413 restricted as of March 31, 2022 and 2021, respectively) | $251050 | $250413 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of allowance of $208,713 as of March 31, 2022 and 2021, respectively | 634483 | 850735 |
| &nbsp;&nbsp;&nbsp;Inventories - Crude Oil | 107026 | 122007 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 318771 | 313897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1311330 | 1537052 |
| NON-CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 596464 | 612902 |
| &nbsp;&nbsp;&nbsp;Right of use asset - operating lease | 243494 | 362267 |
| &nbsp;&nbsp;&nbsp;Oil and gas properties, full cost-method | 6626793 | 12352479 |
| &nbsp;&nbsp;&nbsp;Capitalized drilling costs, net of depletion | 604574 | 2566052 |
| &nbsp;&nbsp;&nbsp;Other assets | 14760 | 14760 |
| &nbsp;&nbsp;&nbsp;Goodwill | 2100374 | 2100374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 10186459 | 18008834 |
| **TOTAL ASSETS** | $11497789 | $19545886 |
| **<u>LIABILITIES AND STOCKHOLDERS' EQUITY</u>** |  |  |
| **LIABILITIES** |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $799100 | $2868448 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 119600 | 463052 |
| &nbsp;&nbsp;&nbsp;Due to Ecoark Holdings |  |  |
| &nbsp;&nbsp;&nbsp;Cash overdraft | 27918 | 137536 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability - operating lease | 155263 | 145078 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 1101881 | 3614114 |
| NON-CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability - operating lease, net of current portion | 110235 | 248421 |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations | 1303751 | 1531589 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 1413986 | 1780010 |
| **Total Liabilities** | 2515867 | 5394124 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.000001 par value, 1,000 shares authorized and no shares issued and outstanding (\*) | 1 | 1 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.000001 par value, 100,000,000 shares authorized and 60,000,000 shares issued and outstanding (\*) |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid in capital (\*) | 25660896 | 23907983 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (16678975) | (9756222) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 8981922 | 14151762 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** | $11497789 | $19545886 |

---

---

| | |
|:---|:---|
| (\*) | On July 25, 2022, White River Holdings Corp acquired Fortium Holdings Corp. in a reverse merger. White River Holdings' parent, Ecoark Holdings, Inc., now known as BitNile Metaverse, Inc. ("Ecoark"), was issued 1,200 Series A Preferred Shares of Fortium Holdings Corp in exchange for the 60,000,000 common shares that were outstanding at the time of the reverse merger. The Company has reflected this transaction retroactively in these audited financial statements. Since the amounts due to Ecoark were exchanged in the issuance of the preferred shares, these have been reflected in additional paid in capital. The reclassification of amounts due to Ecoark as of March 31, 2022 and 2021 that were reclassified to additional paid in capital were $25,058,733 and $21,582,193, respectively and are deemed to have been permanently contributed by Ecoark. |

---

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

**WHITE RIVER HOLDINGS CORP**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

**FOR THE YEARS ENDED MARCH 31, 2022 AND 2021**

---

| | | |
|:---|:---|:---|
|  | **MARCH 31,** | **MARCH 31,** |
|  | **2022** | **2021** |
| **REVENUES** | $5046559 | $2373482 |
| **OPERATING EXPENSES** |  |  |
| &nbsp;&nbsp;&nbsp;Salaries and salaries related costs | 2027255 | 2313092 |
| &nbsp;&nbsp;&nbsp;Professional and consulting fees | 324739 | 185691 |
| &nbsp;&nbsp;&nbsp;Oilfield costs, supplies and repairs | 3339369 | 7462630 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 2065897 | 1256395 |
| &nbsp;&nbsp;&nbsp;Depreciation, amortization, impairment, depletion, and accretion | 6218183 | 958141 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 13975443 | 12175949 |
| **LOSS FROM OPERATIONS BEFORE OTHER INCOME (EXPENSE)** | (8928884) | (9802467) |
| **OTHER INCOME (EXPENSE)** |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities | 2954109 | (2039656) |
| &nbsp;&nbsp;&nbsp;Gain (loss) on exchange of warrants for common stock |  | 2322234 |
| &nbsp;&nbsp;&nbsp;Gain on conversion of long-term debt and accrued expenses |  | 115659 |
| &nbsp;&nbsp;&nbsp;Loss on abandonment of oil and gas property |  | (109407) |
| &nbsp;&nbsp;&nbsp;Loss on sale of oil and gas property and ARO | (885796) |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net of interest income | (62182) | (242585) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | 2006131 | 46245 |
| **LOSS FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (6922753) | (9756222) |
| PROVISION FOR INCOME TAXES | - | - |
| **NET LOSS** | $(6922753) | $(9756222) |
| **NET LOSS PER SHARE** | $(0.12) | $(0.15) |
| **WEIGHTED AVERAGE SHARES OUTSTANDING** | 60000000 | 60000000 |

---

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

**WHITE RIVER HOLDINGS CORP**

**STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)** 

**FOR THE YEARS ENDED MARCH 31, 2022 AND 2021** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock** | **Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares(\*)** | **Amount** | **Shares(\*)** | **Amount** | **Additional**<br>**Paid-In**<br>**Capital** |<br>**Accumulated**<br>**Deficit** |<br>**Total** |
| Balance - March 31, 2020 | 1200 | $&nbsp;&nbsp;&nbsp;&nbsp;1 |  | $- | $23042049 | $- | $23042050 |
| Cost allocations from Ecoark Holdings |  |  |  |  | 865934 |  | 865934 |
| Net loss for the year | - | - |  | - | - | (9756222) | (9756222) |
| Balance - March 31, 2021 | 1200 | 1 |  |  | 23907983 | (9756222) | 14151762 |
| Advances by Ecoark Holdings |  |  |  |  | 3486697 |  | 3486697 |
| Cost allocations from Ecoark Holdings |  |  |  |  | (1733784) |  | (1733784) |
| Net income (loss) for the period | - | - |  | - | - | (6922753) | (6922753) |
| Balance - March 31, 2022 | 1200 | $1 |  | $- | $25660896 | $(16678975) | $(8981922) |

---

---

| | |
|:---|:---|
| (\*) | On July 25, 2022, White River Holdings Corp acquired Fortium Holdings Corp. in a reverse merger. White River Holdings' parent, Ecoark Holdings, Inc., was issued 1,200 Series A Preferred Shares of Fortium Holdings Corp in exchange for the 60,000,000 common shares that were outstanding at the time of the reverse merger. The Company has reflected this transaction retroactively in these audited financial statements along with amounts due to Ecoark Holdings, Inc. that were exchanged for the Series A Preferred shares. The reclassification of amounts due to Ecoark Holdings, Inc. as of March 31, 2022 and 2021 that were reclassified to additional paid in capital were $25,058,733 and $21,582,193, respectively and are deemed to have been permanently contributed by Ecoark Holdings, Inc. |

---

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

**WHITE RIVER HOLDINGS CORP**

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE YEARS ENDED MARCH 31, 2022 AND 2021**

---

| | | |
|:---|:---|:---|
|  | **MARCH 31,** | **MARCH 31,** |
|  | **2022** | **2021** |
| **CASH FLOW FROM OPERATING ACTIVITIES FROM OPERATIONS** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(6922753) | $(9756222) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home office allocation | (1733784) | 865934 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization, depletion, and accretion | 6218182 | 958142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 120675 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt, net of recovery |  | 183713 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of oil and gas property, ARO and fixed assets | 681808 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on abandonment of oil and gas property |  | 109407 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on conversion of debt and liabilities to common stock |  | 2439969 |
| Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 216252 | (1016920) |
| &nbsp;&nbsp;&nbsp;Inventory | 4456 | (122007) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | (4874) | (333132) |
| &nbsp;&nbsp;&nbsp;Amortization of right of use asset - operating leases | 118773 | 79246 |
| &nbsp;&nbsp;&nbsp;Due to parent | 3366022 | 13265294 |
| &nbsp;&nbsp;&nbsp;Operating lease expense | (128001) | (48014) |
| &nbsp;&nbsp;&nbsp;Accrued payable and accrued liabilities | (2412275) | 1204500 |
| &nbsp;&nbsp;&nbsp;Total adjustments | 6447234 | 17586132 |
| &nbsp;&nbsp;&nbsp;**Net cash (used in) provided by operating activities** | (475519) | 7829910 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Advance of note receivable |  | (275000) |
| &nbsp;&nbsp;&nbsp;Purchases of oil and gas properties, net of asset retirement obligations | (303500) | (3215060) |
| &nbsp;&nbsp;&nbsp;Drilling costs capitalized |  | (2696542) |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of fixed assets | 5032 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from the sale of oil and gas properties | 906274 |  |
| &nbsp;&nbsp;&nbsp;Purchase of fixed assets | (22032) | (220283) |
| &nbsp;&nbsp;&nbsp;**Net cash provided by (used in) investing activities** | 585774 | (6406885) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;(Decrease) increase in cash overdraft | (109618) | 137536 |
| &nbsp;&nbsp;&nbsp;Repayments of notes payable - related parties |  | (296013) |
| &nbsp;&nbsp;&nbsp;Repayment to prior owners | - | (1130068) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in financing activities** | (109618) | (1288545) |
| **NET INCREASE IN CASH AND RESTRICTED CASH** | 637 | 134480 |
| **CASH AND RESTRICTED CASH - BEGINNING OF YEAR** | 250413 | 115933 |
| **CASH AND RESTRICTED CASH - END OF YEAR** | $251050 | $250413 |
| **SUPPLEMENTAL DISCLOSURES** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest expense | $- | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $- | $- |
| **SUMMARY OF NON-CASH ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Due to parent for acquisition of oil and gas reserves and fixed assets, net of asset retirement obligations | $- | $2860000 |
| &nbsp;&nbsp;&nbsp;Note receivable offset against oil and gas reserves in acquisition of Rabb | $- | $304475 |

---

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

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

**NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Pinnacle Frac Holdings Corp is a corporation established pursuant to the laws of the State of Delaware on April 2, 2018. Pinnacle Frac Holdings Corp was renamed Banner Midstream Corp ("Banner Midstream") by the Delaware Division of Corporations on December 6, 2018.

On March 27, 2020, Ecoark Holdings, Inc., now known as BitNile Metaverse, Inc. ("Ecoark") and Banner Energy Services Corp., a Nevada corporation ("Banner Parent"), entered into a Stock Purchase and Sale Agreement (the "Banner Purchase Agreement") to acquire Banner Midstream. Pursuant to the acquisition, Banner Midstream became a wholly owned subsidiary of Ecoark, and the Banner Parent received shares of Ecoark common stock in exchange for all of the issued and outstanding shares of Banner Midstream.

Banner Midstream has two active operating subsidiaries: Pinnacle Frac Transport LLC ("Pinnacle Frac"), and Capstone Equipment Leasing LLC ("Capstone"). The Company assigned the ownership interests of White River Holdings Corp ("White River Holdings"), and Shamrock Upstream Energy LLC ("Shamrock") to Ecoark in June 2022. These consolidated financial statements do not include the operations of Pinnacle Frac and Capstone.

White River Holdings and Shamrock are engaged in oil and gas exploration, production, and drilling operations on over 30,000 cumulative acres of active mineral leases in Louisiana and Mississippi.

On June 11, 2020, the Company acquired certain energy assets from SR Acquisition I, LLC for $1,000 as part of the ongoing bankruptcy reorganization of Sanchez Energy Corporation. The transaction includes the transfer of 262 total wells in Mississippi and Louisiana, approximately 9,000 acres of active mineral leases, and drilling production materials and equipment. The 262 total wells include 57 active producing wells, 19 active disposal wells, 136 shut-ins with future utility wells, and 50 shut-in pending plugging wells. Included in the assignment are 4 wells in the Tuscaloosa Marine Shale formation. One of the leases acquired in this transaction was sold in November 2020.

On June 18, 2020, the Company acquired certain energy assets from SN TMS, LLC for $500 as part of the ongoing bankruptcy reorganization of Sanchez Energy Corporation. The transaction includes the transfer of wells, active mineral leases, and drilling production materials and equipment.

On August 14, 2020, the Company entered into an Asset Purchase Agreement by and among the Company, White River E&P LLC, a Texas Limited Liability Company and a wholly owned subsidiary of the Company Rabb Resources, LTD. and Claude Rabb, the sole owner of Rabb Resources, LTD. Pursuant to the Asset Purchase Agreement, the Company completed the acquisition of certain assets of Rabb Resources, LTD. The acquired assets consisted of certain real property and working interests in oil and gas mineral leases. The Company in June 2020 previously provided for bridge financing to Rabb Resources, LTD under the $225,000 Senior Secured Convertible Promissory Note. As consideration for entering into the Asset Purchase Agreement, the Company agreed to pay Rabb Resources, LTD. A total of $3,500,000 consisting of (i) $1,500,000 in cash, net of $304,475 in outstanding amounts related to the note receivable and accrued interest receivable, and (ii) $2,000,000 payable in common stock of the Company, which based on the closing price of the common stock as of the date of the Asset Purchase Agreement equaled 102,828 shares. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the Rabb Resources, LTD historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

On September 4, 2020, White River SPV 3, LLC, a wholly owned subsidiary of Banner Midstream entered into an Agreement and Assignment of Oil, Gas and Mineral Lease with a privately held limited liability company (the "Assignor"). Under the Lease Assignment, the Assignor assigned a 100% working interest (75% net revenue interest) in a certain oil and gas lease covering in excess of 1,600 acres (the "Lease"), and White River Holdings paid $1,500,000 in cash to the Assignor. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

On October 9, 2020, the Company and White River SPV, entered into a Participation Agreement (the "Participation Agreement") by and among the Company, White River SPV, BlackBrush Oil & Gas, L.P. ("BlackBrush") and GeoTerre, LLC, an unrelated privately held limited liability company (the "Assignor"), to conduct drilling of wells in the Austin Chalk formation.

Pursuant to the Participation Agreement, the Company and White River SPV pre-funded a majority of the cost, approximately $5,746,941, associated with the drilling and completion of an initial deep horizontal well in the Austin Chalk formation of which $3,387,000 was expensed as drilling costs. The Participation Agreement required the drilling costs that were paid into a designated escrow account at the commencement of the drilling in January 2021, which it was. BlackBrush agreed to assign to the other parties to the Participation Agreement, subject to certain exceptions and limitations specified therein, specified portions of its leasehold working interest in certain Austin Chalk formation units.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

The Participation Agreement provides for an initial allocation of the working interests and net revenue interests among the assignor, BlackBrush and the Company and then a re-allocation upon payout or payment of drilling and completion costs for each well drilled. Prior to payout, the Company will own 90% of the working interest and 67.5% of the net revenue interest in each well. Following payout, the Company will own 70% of working interest and 52.5% net revenue interest in each well.

The Parties to the Participation Agreement, except for the Company, had previously entered into a Joint Operating Agreement, dated September 4, 2020 (the "Operating Agreement") establishing an area of mutual interest, including the Austin Chalk formation, and governing the parties' rights and obligations with respect to drilling, completion and operation of wells therein. The Participation Agreement and the Operating Agreement require, among other things, that White River SPV and the Company drill and complete at least one horizontal Austin Chalk well with a certain minimum lateral each calendar year and/or maintain leasehold by paying its proportionate share of any rental payments.

On September 30, 2020, the Company entered into three Asset Purchase Agreements (the "Asset Purchase Agreements") with privately held limited liability companies to acquire working interests in the Harry O'Neal oil and gas mineral lease (the "O'Neal OGML"), the related well bore, crude oil inventory and equipment. Immediately prior to the acquisition, White River Holdings owned an approximately 61% working interest in the O'Neal OGML oil well and a 100% working interest in any future wells.

The purchase prices of these leases were $125,474, $312,264 and $312,262, respectively, totaling $750,000. The consideration paid to the Sellers was in the form of 68,000 shares of Ecoark common stock. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

In February and March 2021, the Company acquired additional leases for $916,242 under the Blackbrush/Deshotel lease related to the Participation Agreement.

On August 16, 2021 the Company and Shamrock Upstream Energy, LLC, a wholly-owned subsidiary of the Company entered into an agreement with a privately-held limited liability company to acquire working interests in the Luling Prospect for $250,000. No other assets were acquired in this transaction, nor was there any recognized ARO for this working interest. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

On September 1, 2021 the Company entered into an agreement with several individuals to acquire working interests in the various leases in Concordia, LA for $53,500. No other assets were acquired in this transaction, nor was there any recognized ARO for this working interest. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

***Principles of Consolidation***

The Company prepares its consolidated financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, all of which have a year end of March 31. All intercompany accounts, balances and transactions have been eliminated in the consolidation.

 ****

***Use of Estimates***

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. 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 consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, management's estimate of provisions required for uncollectible accounts receivable, impaired value of equipment and intangible assets, including goodwill, liabilities to accrue, cost incurred in the satisfaction of performance obligations, permanent and temporary differences related to income taxes, cost allocations from Ecoark to present these consolidated financial statements on a standalone basis and determination of the fair value of stock awards.

Actual results could differ from those estimates.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

The estimates of proved, probable and possible oil and gas reserves are used as significant inputs in determining the depletion of oil and gas properties and the impairment of proved and unproved oil and gas properties. There are numerous uncertainties inherent in the estimation of quantities of proven, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and assumptions utilized.

 ****

***Oil and Gas Properties***

The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under the full cost method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs are capitalized. General and administrative costs related to production and general overhead are expensed as incurred.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

There was $4,793,847 and $739,037 in depletion expense for the Company's oil and gas properties for the years ended March 31, 2022 and 2021, respectively.

***Limitation on Capitalized Costs***

Under the full-cost method of accounting, we are required, at the end of each reporting period, to perform a test to determine the limit on the book value of our oil and gas properties (the "Ceiling" test). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the Ceiling, the excess or impairment is charged to expense. The expense may not be reversed in future periods, even though higher oil and gas prices may subsequently increase the Ceiling. The Ceiling is defined as the sum of: (a) the present value, discounted at 10% and assuming continuation of existing economic conditions, of (1) estimated future gross revenues from proved reserves, which is computed using oil and gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month hedging arrangements pursuant to Staff Accounting Bulletin ("SAB") 103, less (2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus, (b) the cost of properties being amortized; plus, (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. A ceiling test was performed as of March 31, 2022 and the Company incurred an impairment charge of $772,000 related to the book to tax differences on the depletion of the reserves.

***Oil and Gas Reserves***

Reserve engineering is a subjective process that is dependent upon the quality of available data and interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary sometimes significantly. In addition, physical factors such as results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.

***Joint Interest Activities***

Certain of our exploration, development and production activities are conducted jointly with other entities and, accordingly, the consolidated financial statements reflect only our proportionate interest in such activities.

***Inventories***

Crude oil, products and merchandise inventories are carried at the lower of cost (last-in-first-out (LIFO)) or net realizable value. Inventory costs include expenditures and other charges directly and indirectly incurred in bringing the inventory to its existing condition and location.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

***Accounting for Asset Retirement Obligation***

Asset retirement obligations ("ARO") primarily represent the estimated present value of the amount the Company will incur to plug, abandon and remediate its producing properties at the projected end of their productive lives, in accordance with applicable federal, state and local laws. The Company determined its ARO by calculating the present value of the estimated cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligation's inception, with an offsetting increase to proved properties or to exploration costs in cost of revenue.

***Revenue Recognition***

The Company recognizes revenue under ASC 606, Revenue from Contracts with Customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

● Step 1: Identify the contract with the customer

● Step 2: Identify the performance obligations in the contract

● Step 3: Determine the transaction price

● Step 4: Allocate the transaction price to the performance obligations in the contract

● Step 5: Recognize revenue when the Company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following:

● Variable consideration

● Constraining estimates of variable consideration

● The existence of a significant financing component in the contract

● Noncash consideration

● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The standalone selling price is the price at which the Company would sell a promised service separately to a customer. The relative selling price for each performance obligation is estimated using observable objective evidence if it is available. If observable objective evidence is not available, the Company uses its best estimate of the selling price for the promised service. In instances where the Company does not sell a service separately, establishing standalone selling price requires significant judgment. The Company estimates the standalone selling price by considering available information, prioritizing observable inputs such as historical sales, internally approved pricing guidelines and objectives, and the underlying cost of delivering the performance obligation. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

Management judgment is required when determining the following: when variable consideration is no longer probable of significant reversal (and hence can be included in revenue); whether certain revenue should be presented gross or net of certain related costs; when a promised service transfers to the customer; and the applicable method of measuring progress for services transferred to the customer over time.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** 

**MARCH 31, 2022 AND 2021**

The Company recognizes revenue upon satisfaction of its performance obligation at either a point in time or over time in accordance with ASC 606-10-25.

The Company accounts for incremental costs of obtaining a contract with a customer and contract fulfillment costs in accordance with ASC 340-40, *Other Assets and Deferred Costs*. These costs should be capitalized and amortized as the performance obligation is satisfied, if certain criteria are met. The Company elected the practical expedient, to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise have been recognized is one year or less, and expenses certain costs to obtain contracts when applicable. The Company recognizes an asset from the costs to fulfill a contract only if the costs relate directly to a contract, the costs generate or enhance resources that will be used in satisfying a performance obligation in the future and the costs are expected to be recovered. The Company recognizes the cost of sales of a contract as expense when incurred or when a performance obligation is satisfied. The incremental costs of obtaining a contract are capitalized unless the costs would have been incurred regardless of whether the contract was obtained, are not considered recoverable, or the practical expedient applies.

Revenue under master service agreements is recorded upon the performance obligation being satisfied. Typically, the satisfaction of the performance obligation occurs upon the frac sand load being delivered to the customer site and this load being successfully invoiced and accepted by the Company's factoring agent.

***Accounts Receivable and Concentration of Credit Risk***

The Company considers accounts receivable, net of allowance for doubtful accounts, to be fully collectible. The allowance is based on management's estimate of the overall collectability of accounts receivable, considering historical losses, credit insurance and economic conditions. Based on these same factors, individual accounts are charged off against the allowance when management determines those individual accounts are uncollectible. Credit extended to customers is generally uncollateralized, however credit insurance is obtained for some customers. Past-due status is based on contractual terms.

White River Holdings has recognized an allowance for doubtful accounts of $208,713as of March 31, 2022 and 2021, respectively.

***Fair Value Measurements***

ASC 820 *Fair Value Measurements* defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and expands disclosure about fair value measurements. ASC 820 classifies these inputs into the following hierarchy:

Level 1 inputs: Quoted prices for identical instruments in active markets.

Level 2 inputs: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 inputs: Instruments with primarily unobservable value drivers.

The carrying values of the Company's financial instruments such as cash, accounts payable, and accrued expenses approximate their respective fair values because of the short-term nature of those financial instruments.

Cryptocurrencies will consist of cryptocurrency assets and will be presented in current assets. Fair value will be determined by taking the price of the coins from the trading platforms which Agora will most frequently use.

***Impairment of Long-lived Assets***

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

***Earnings (Loss) Per Share of Common Stock***

Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted earnings (loss) per share ("EPS") include additional dilution from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options and warrants.

Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented, so only the basic weighted average number of common shares are used in the computations.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

***Cost Allocations***

The accompanying consolidated financial statements and footnotes of the Company have been prepared in connection with the expected separation and have been derived from the consolidated financial statements and accounting records of Ecoark operated on a standalone basis during the periods presented and were prepared in accordance with accounting principles generally accepted in the United States of America.

The consolidated financial statements reflect allocations of certain Ecoark corporate, infrastructure and shared services expenses, including centralized research, legal, human resources, payroll, finance and accounting, employee benefits, real estate, insurance, information technology, telecommunications, treasury, and other income and expenses for interest expense on debt that portions were used for White River Holdings, changes in derivative liabilities on the books of Ecoark for warrants granted in offerings of which proceeds went towards the operations of White River Holdings, and conversions of debt. As noted, the derivative liabilities are included in Ecoark's books however, the advances made by Ecoark related to the proceeds received that were recognized as a derivative liability are included in the March 31, 2022 balance sheet as "Due to Ecoark Holdings" which was reclassified to additional paid in capital. Where possible, these charges were allocated based on direct usage, with the remainder allocated on a pro rata basis of headcount, asset, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented pursuant to SAB Topic 1.B.1. The allocations may not, however, reflect the expense the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

Management believes the assumptions underlying our financial statements, including the assumptions regarding the allocation of general corporate expenses from our Parent are reasonable. Nevertheless, our financial statements may not include all of the actual expenses and income that would have been incurred had we operated as a standalone company during the periods presented and may not reflect our results of operations, financial position and cash flows had we operated as a standalone company during the periods presented.

Actual costs that would have been incurred if we had operated as a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure.

We also may incur additional costs associated with being a standalone, publicly listed company that were not included in the expense allocations and, therefore, would result in additional costs that are not included in our historical results of operations, financial position and cash flows.

***Correction of Immaterial Misstatement***

During the quarter ended December 31, 2022, the Company became aware of an adjustment to correct an error in our previously issued financial statements regarding the reclassification of previous intercompany advances from Ecoark Holdings, Inc. (the former parent of White River Holdings Corp) to additional paid in capital in the amounts of $25,058,733 and $21,582,193 as of March 31, 2022 and 2021, respectively, effective with the issuance of the 1,200 Series A issued to Ecoark Holdings, Inc. in the reverse merger.

Based on an analysis of ASC 250 "Accounting Changes and Error Corrections", Staff Accounting Bulletin 99 "Materiality" and Staff Accounting Bulletin 108 "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements", we have determined that these errors were immaterial to the previously issued consolidated financial statements for the years ended March 31, 2022 and 2021. The errors had no impact on the consolidated statements of operations, earnings (loss) per share or cash flows for either of the two-year periods.

***Recently Issued Accounting Standards***

The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

 ****

***Liquidity***

For the years ended March 31, 2022 and 2021, the Company had a net loss of $(6,922,753) and ($9,756,222), respectively, has a working capital deficit of $24,859,441 and $23,659,255 as of March 31, 2022 and 2021, and has an accumulated deficit as of March 31, 2022 of $(16,678,975). As of March 31, 2022, the Company has $251,050 in cash and cash equivalents.

The Company has relied on Ecoark to provide the necessary capital to sustain their operations. The Company has included cost allocations as noted herein to reflect the operations as if they were a standalone entity.

The financial statements of the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period. The financial statements of the Company do not include any adjustments that may result from the outcome of the uncertainties.

The Company plans include the raising of capital through a potential offering once they are an SEC reporting company.

Impact of COVID-19

The COVID-19 pandemic has had a profound effect on the U.S. and global economy and may continue to affect the economy and the industries in which we operate, depending on the vaccine and booster rollouts and the emergence of virus mutations including Omicron.

COVID-19 did not have a material effect on the Statements of Operations or the Balance Sheets for the years ended March 31, 2022 and 2021.

COVID-19 has contributed to the supply chain disruptions which have not yet had a material effect for the Company. The Company will continue to monitor the supply chain shortages affecting the world.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

Because the federal government and some state and local authorities are reacting to the current Omicron variant of COVID-19, it is creating uncertainty on whether these actions could disrupt the operation of the Company's business and have an adverse effect on the Company. The extent to which the COVID-19 outbreak may impact the Company's results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the virus and the actions to contain its impact.

**NOTE 2: REVENUE**

The Company recognizes revenue when it transfers promised services to customers in an amount that reflects the consideration to which it expects to be entitled in exchange for those services.

The following table disaggregates the Company's revenue by major source for the years ended March 31:

SCHEDULE OF DISAGGREGATES REVENUES

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Revenue: |  |  |
| &nbsp;&nbsp;&nbsp;Oil and Gas Production | $5038855 | $2362577 |
| &nbsp;&nbsp;&nbsp;Other income | 7704 | 10905 |
| Total revenue | $5046559 | $2373482 |

---

There were no significant contract asset or contract liability balances for all periods presented. The Company elected the practical expedients in paragraphs 606-10-50-14 and 50-14A and does not disclose the amount of transaction price allocated to remaining performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed, or variable consideration related to future service periods.

Collections of the amounts billed are typically paid by the customers within 30 to 60 days.

**NOTE 3: INVENTORIES**

The Company's inventory as of March 31, 2022 and 2021 of $107,026 and $122,007, respectively, consisted of crude oil of approximately 4,935 and 6,198 barrels of unsold crude oil, respectively, using the lower of cost (LIFO) or net realizable value.

**NOTE 4: NOTE RECEIVABLE**

The Company entered into a $225,000 senior secured convertible promissory note on June 18, 2020 with Rabb Resources, LTD. The Company had an existing note in the amount of $25,000 that had not been secured, and rolled an additional $200,000 into Rabb Resources, LTD, whereby the entire amount became secured. The note was non-interest bearing if paid or converted within forty-five days of the issuance date of June 18, 2020 (August 2, 2020, which is the maturity date). If not paid or converted, the note bore interest at 11% per annum, paid in cash on a quarterly basis.

This note was convertible into shares of Rabb Resources, LTD. based on a valuation of Rabb Resources, LTD. into shares of that company at a value of the $225,000. The Company advanced an additional $50,000 on July 8, 2020 and $25,000 on August 7, 2020 to bring the total note receivable to $300,000. This amount plus the accrued interest receivable of $4,475 was due as of August 14, 2020.

On August 14, 2020, the Company entered into an Asset Purchase Agreement with Rabb Resources, LTD. which included the acquisition of real property. The purchase price for this acquisition was $3,500,000, of which $1,196,000 was paid in cash (after applying the outstanding principal of the note receivable and accrued interest receivable against the $1,500,000 agreed upon cash consideration) and the balance was paid in common stock of the Company. The Company accounted for this acquisition as an asset purchase (see Note 18). There were no amounts outstanding as of March 31, 2022 and 2021, respectively.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

**NOTE 5: PROPERTY AND EQUIPMENT AND GOODWILL**

PROPERTY AND EQUIPMENT

Property and equipment consisted of the following as of March 31, 2022 and 2021:

SCHEDULE OF PROPERTY AND EQUIPMENT

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2022** | **March 31,<br> 2021** |
| Land | $140000 | $140000 |
| Buildings | 236000 | 236000 |
| Machinery and equipment | 278116 | 261116 |
| Total property and equipment | 654116 | 637116 |
| Accumulated depreciation and impairment | (57652) | (24214) |
| Property and equipment, net | $596464 | $612902 |

---

As of March 31, 2022 and 2021, the Company performed an evaluation of the recoverability of these long-lived assets. The analysis resulted in no impairment as of related to these assets.

The Company in April 2021 traded in a truck with a value of $5,447 for a new truck with a value of $2,532 and received cash of $2,500 in the exchange. Depreciation expense for the years ended March 31, 2022 and 2021 was $33,438 and $24,214, respectively.

Ecoark recorded a total of $2,100,374 of goodwill in connection with the purchase of White River Holdings. The Company assessed the criteria for impairment, and there were no indicators of impairment present as of March 31, 2022, and therefore no impairment is necessary.

**NOTE 6: ACCRUED LIABILITIES**

Accrued liabilities consisted of the following:

SCHEDULE OF ACCRUED LIABILITIES

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2022** | **March 31,<br> 2021** |
| Insurance | $103162 | $70458 |
| Amounts due override owners | 16438 | 392594 |
| Total | $119600 | $463052 |

---

**NOTE 7: CAPITALIZED DRILLING COSTS AND OIL AND GAS PROPERTIES**

As noted, under Rule 4-10 (c)(2) of Regulation S-X, the Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under the full cost method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs are capitalized. General and administrative costs related to production and general overhead are expensed as incurred.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Under Rule 6(i) of Regulation S-X, disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

Capitalized Drilling Costs

In January 2021, the Company commenced a drilling program on their Deshotel 24H well included in their proved reserves. The Company, pursuant to ASC 932 is amortizing $2,696,542 under the full-cost method based on the units of production method. Depletion expense for the years ended March 31, 2022 and 2021 for the capitalized drilling costs was $1,961,478 and $130,490, respectively. As of March 31, 2022, the capitalized drilling costs were $604,574.

Oil and Gas Properties

The Company's holdings in oil and gas mineral lease ("OGML") properties as of March 31, 2022 and 2021 are as follows:

SCHEDULE OF OIL AND GAS PROPERTIES

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2022** | **March 31,<br> 2021** |
| Total OGML Properties Acquired | $6626793 | $12352479 |

---

The Company's properties activities consist of the following from April 1, 2021 through March 31, 2022:

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

As discussed in Note 12, the Company acquired certain leases on June 11, 2020 and June 18, 2020 in Mississippi and Louisiana valued at $2,000. These assets were paid entirely in cash. In addition, the Company impaired $82,500 of property as it let certain leases lapse.

As discussed in Note 12, on August 14, 2020, the Company entered into an Asset Purchase Agreement with Rabb Resources, LTD which included the acquisition of real property. The purchase price for this acquisition was $3,500,000. Of this amount, $3,224,000, is reflected as Oil and Gas Properties.

As discussed in Note 12, on September 4, 2020, the Company entered into a Lease Assignment agreement. The purchase price for this acquisition was $1,500,000. Of this amount, $1,500,000, is reflected as Oil and Gas Properties.

As discussed in Note 12, on September 30, 2020, the Company entered into three Asset Purchase Agreements. The purchase prices for these acquisitions were $750,000. Of this amount, $760,000, is reflected as Oil and Gas Properties.

As discussed in Note 12, on October 1, 2020, the Company entered into three Asset Purchase Agreements. The purchase price for these acquisitions were $22,400. Of this amount, $22,400, is reflected as Oil and Gas Properties.

As discussed in Note 12, on October 9, 2020, the Company entered into three Asset Purchase Agreements. The purchase price for these acquisitions were $615,000. Of this amount, $615,000, is reflected as Oil and Gas Properties.

In February and March 2021, the Company acquired additional leases for $916,242 under the Blackbrush/Deshotel lease related to the Participation Agreement.

On May 13, 2021, the Company's subsidiaries White River Energy LLC and White River Operating LLC entered into a Letter Agreement for a .60 of 8/8<sup>th</sup> Earned Working Interest with TSEA Partners LLC ("TSEA") for their Harry O'Neal 20-10 lease in Holmes County, MS ("Letter Agreement"). Under the terms of the Letter Agreement, TSEA paid $600,000 to the Company to transfer the working interest to TSEA and TSEA received a $300,000 drilling or workover credit to use towards any authority for expenditure at Horseshoe Field. There were no amounts valued as oil and gas properties for this particular property, and as a result, the entire $600,000 is reflected as a gain on sale of property as well as the removal of the asset retirement obligation of $175 which brought the total gain to $600,175.

Effective on July 1, 2021, the Company's subsidiary White River SPV 2, LLC closed on the sale of the Weyerhauser OGML Lease. The Company did not record a value for the property as it was acquired in a group of properties on June 11, 2020 as the entire group of properties were purchased for $1,500. As a result, the entire sales price of $112,094, which includes the sale of the existing inventory and related expenses of $12,094 on this well and removal of the accumulated depletion, asset retirement obligation of $21,191 brought the total gain to $121,190.

The Company had an analysis completed by an independent petroleum consulting company in March 2021 to complete the acquisition analysis within the required one-year period. There were no adjustments required from the original asset allocation on March 27, 2020.

The Company impaired $1,235,285 for the year ended March 31, 2022 in undeveloped reserves.

The following table summarizes the Company's oil and gas activities by classification for the years ended March 31, 2022 and 2021.

SCHEDULE OF OIL AND GAS ACTIVITIES

---

| | | | |
|:---|:---|:---|:---|
| **Activity Category** | **March 31,<br> 2021** | **Adjustments (1)** | **March 31,<br> 2022** |
| Proved Developed Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $7223379 | $(2307411) | $4915968 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation, depletion and amortization | (739037) | (2486490) | (3225527) |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $6484342 | $(4793901) | $1690441 |
| Undeveloped and Non-Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $5868137 | $(931785) | $4936352 |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $5868137 | $(931785) | $4936352 |
| Grand Total | $12352479 | $(5725686) | $6626793 |

---

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

---

| | | | |
|:---|:---|:---|:---|
| **Activity Category** | **March 31,<br> 2020** | **Adjustments (1)** | **March 31,<br> 2021** |
| Proved Developed Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $166849 | $7056530 | $7223379 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation, depletion and amortization |  | (739037) | (739037) |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $166849 | $6317493 | $6484342 |
| Undeveloped and Non-Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $5968151 | $(100014) | $5868137 |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $5968151 | $(100014) | $5868137 |
| Grand Total | $6135000 | $6217479 | $12352479 |

---

(1) Relates
 to acquisitions and dispositions of reserves.

**NOTE 8: DUE TO RELATED PARTIES**

The Company receives its support from Ecoark and other subsidiaries of Ecoark.

As of March 31, 2022 and 2021, the intercompany advances balance with Ecoark was $25,068,890 and $21,582,193, respectively. There is no interest charged on this amount and the amount is due on demand and reflected as a current liability. The balance is comprised of expenses paid on behalf of the Company by Ecoark.

Prior to July 1, 2021, the financial statements reflect allocations of certain Ecoark corporate, infrastructure and shared services expenses, including centralized research, legal, human resources, payroll, finance and accounting, employee benefits, real estate, insurance, information technology, telecommunications, treasury, and other income and expenses for interest expense on debt that portions were used for White River Holdings, changes in derivative liabilities on the books of Ecoark for warrants granted in offerings of which proceeds went towards the operations of White River Holdings, and conversions of debt. Where possible, these charges were allocated based on direct usage, with the remainder allocated on a pro rata basis of headcount, asset, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented pursuant to SAB Topic 1.B.1. The allocations may not, however, reflect the expense the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

During the year ended March 31, 2021, the Company converted and paid $2,362,760 in amounts due to prior owners. The Company recognized a loss on conversion of $1,247,971 in the year ended March 31, 2021.

**NOTE 9: STOCKHOLDERS' EQUITY (DEFICIT)**

The Company had 100,000,000 shares of common stock authorized at $0.000001 par value per share, and there were 60,000,000 common shares issued and outstanding at March 31, 2022 and 2021, respectively, which were all owned by Ecoark. There were 1,000 shares of preferred stock authorized at $0.000001 par value, and no shares have been issued.

On July 25, 2022, White River Holdings Corp acquired Fortium Holdings Corp. in a reverse merger. The Company's parent, Ecoark, was issued 1,200 Series A Preferred Shares of Fortium Holdings Corp in exchange for the 60,000,000 common shares that were recorded. The Company has reflected this transaction retroactively in these audited financial statements.

There were no equity transactions for the years ended March 31, 2022 and 2021.

**NOTE 10: COMMITMENTS AND CONTINGENCIES**

On October 9, 2020, the Company and White River SPV, entered into a Participation Agreement (the "Participation Agreement") by and among the Company, White River SPV, BlackBrush Oil & Gas, L.P. ("BlackBrush") and GeoTerre, LLC, an unrelated privately-held limited liability company (the "Assignor"), to conduct drilling of wells in the Austin Chalk formation.

Pursuant to the Participation Agreement, the Company and White River SPV funded 100% of the cost, $5,746,941, associated with the drilling and completion of an initial deep horizontal well in the Austin Chalk formation. The Participation Agreement required the drilling costs that were paid into a designated escrow account at the commencement of the drilling in January 2021, which it was. BlackBrush agreed to assign to the other parties to the Participation Agreement, subject to certain exceptions and limitations specified therein, specified portions of its leasehold working interest in certain Austin Chalk formation units. The Participation Agreement provides for an initial allocation of the working interests and net revenue interests among the assignor, BlackBrush and the Company and then a re-allocation upon payout or payment of drilling and completion costs for each well drilled. Prior to payout, the Company will own 90% of the working interest and 67.5% of the net revenue interest in each well. Following payout, the Company will own 70% of working interest and 52.5% net revenue interest in each well.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

The Parties to the Participation Agreement, except for the Company, had previously entered into a Joint Operating Agreement, dated September 4, 2020 (the "Operating Agreement") establishing an area of mutual interest, including the Austin Chalk formation, and governing the parties' rights and obligations with respect to drilling, completion and operation of wells therein. The Participation Agreement and the Operating Agreement require, among other things, that White River SPV and the Company drill and complete at least one horizontal Austin Chalk well with a certain minimum lateral each calendar year and/or maintain leasehold by paying its proportionate share of any rental payments.

**NOTE 11: CONCENTRATIONS**

<u>Customer Concentration</u>. Three and three customers accounted for more than 10% of the accounts receivable balance at March 31, 2022 and 2021 for a total of 66% and 87% of accounts receivable, respectively. In addition, three and three customers represent approximately 95% and 91% of total revenues for the Company for the years ended March 31, 2022 and 2021, respectively.

<u>Supplier Concentration</u>. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments.

The Company occasionally maintains cash balances in excess of the FDIC insured limit. The Company does not consider this risk to be material.

***<u>Commodity price risk</u>***

We are exposed to fluctuations in commodity prices for oil and natural gas. Commodity prices are affected by many factors, including but not limited to, supply and demand.

**NOTE 12: ACQUISITIONS**

The following represent acquisitions for the years ended March 31, 2022 and 2021.

**<u>Energy Assets</u>**

On June 11, 2020, the Company acquired certain energy assets from SR Acquisition I, LLC for $1,500 as part of the ongoing bankruptcy reorganization of Sanchez Energy Corporation. The transaction includes the transfer of 262 total wells in Mississippi and Louisiana, approximately 9,000 acres of active mineral leases, and drilling production materials and equipment. The 262 total wells include 57 active producing wells, 19 active disposal wells, 136 shut-ins with future utility wells, and 50 shut-in pending plugging wells. Included in the assignment are 4 wells in the Tuscaloosa Marine Shale formation.

On June 18, 2020, the Company acquired certain energy assets from SN TMS, LLC for $500 as part of the ongoing bankruptcy reorganization of Sanchez Energy Corporation. The transaction includes the transfer of wells, active mineral leases, and drilling production materials and equipment.

The Company accounted for these acquisitions as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the Rabb Resources, LTD. historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

**<u>Rabb Resources</u>**

On August 14, 2020, the Company entered into an Asset Purchase Agreement by and among the Company, White River E&P LLC, a Texas Limited Liability Company and a wholly-owned subsidiary of the Company Rabb Resources, LTD. and Claude Rabb, the sole owner of Rabb Resources, LTD. Pursuant to the Asset Purchase Agreement, the Company completed the acquisition of certain assets of Rabb Resources, LTD. The acquired assets consisted of certain real property and working interests in oil and gas mineral leases. The Company in June 2020 previously provided for bridge financing to Rabb Resources, LTD under the $225,000 Senior Secured Convertible Promissory Note. As consideration for entering into the Asset Purchase Agreement, the Company agreed to pay Rabb Resources, LTD. A total of $3,500,000 consisting of (i) $1,500,000 in cash, net of $304,475 in outstanding amounts related to the note receivable and accrued interest receivable, and (ii) $2,000,000 payable in common stock of the Company, which based on the closing price of the common stock as of the date of the Asset Purchase Agreement equaled 102,828 shares. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the Rabb Resources, LTD. historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

SCHEDULE OF ASSETS ACQUIRED

---

| | |
|:---|:---|
| Building | $236000 |
| Land | 140000 |
| Oil and Gas Properties | 3224000 |
| Asset retirement obligation | (100000) |
|  | $3500000 |

---

**<u>Unrelated Third Party</u>**

On September 4, 2020, the Company entered into an Agreement and Assignment of Oil, Gas and Mineral Lease with GeoTerre Operating, LLC, a privately held limited liability company (the "Assignor"). Under the Lease Assignment, the Assignor assigned a 100% working interest (75% net revenue interest) in a certain oil and gas lease covering in excess of 1,600 acres (the "Lease"), and the Company paid $1,500,000 in cash to the Assignor. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

**<u>O'Neal Family</u>**

On September 30, 2020, the Company entered into three asset purchase agreements (the "Asset Purchase Agreements") with privately-held limited liability companies to acquire working interests in the Harry O'Neal oil and gas mineral lease (the "O'Neal OGML"), the related well bore, crude oil inventory and equipment. Immediately prior to the acquisition, the Company owned approximately 61% working interest in the O'Neal OGML oil well and a 100% working interest in any future wells.

The purchase prices of these leases were $125,475, $312,261 and $312,264, respectively, totaling $750,000. The consideration paid to the Sellers was in the form of 68,182 shares of common stock. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

---

| | |
|:---|:---|
| Oil and Gas Properties | $760000 |
| Asset retirement obligation | (10000) |
|  | $750000 |

---

**<u>Luling Prospect</u>**

On August 16, 2021 the Company entered into an agreement with a privately-held limited liability company to acquire working interests in the Luling Prospect for $250,000. No other assets were acquired in this, nor was there any recognized ARO for this working interest. The manager of the privately held limited liability company is related through marriage to the Chairman and CEO of the Company, however the acquisition was determined to be at arms' length. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

---

| | |
|:---|:---|
| Oil and gas properties | $250000 |
|  | $250000 |

---

**<u>Concordia Leases</u>**

On September 1, 2021 the Company entered into an agreement with several individuals to acquire working interests in the various leases in Concordia, LA for $53,500. No other assets were acquired in this, nor was there any recognized ARO for this working interest. The Company accounted for this acquisition as an asset acquisition under ASC 805 and that the Company has early adopted the amendments of Regulation S-X dated May 21, 2020 and has concluded that this acquisition was not significant. Accordingly, as a result of the amendment, the presentation of the historical financial statements under Rule 3-05 and related pro forma information under Article 11 of Regulation S-X, respectively, were not required to be presented.

---

| | |
|:---|:---|
| Working interest in oil and gas wells | $53500 |
|  | $53500 |

---

**NOTE 13: ASSET RETIREMENT OBLIGATIONS**

In conjunction with the approval permitting the Company to resume drilling in the existing fields, the Company has recorded an asset retirement obligation ("ARO") based upon the plan submitted in connection with the permit. The ARO results from the Company's responsibility to abandon and reclaim their net share of all working interest properties and facilities.

The following table summarizes activity in the Company's ARO for the years ended March 31, 2022 and March 31, 2021:

SCHEDULE OF ASSET RETIREMENT OBLIGATIONS

---

| | | |
|:---|:---|:---|
|  | **March 31,<br> 2022** | **March 31, <br> 2021** |
| Balance, beginning of period | $1531589 | $294800 |
| &nbsp;&nbsp;&nbsp;Accretion expense | 155612 | 64401 |
| &nbsp;&nbsp;&nbsp;Reclamation obligations settled |  |  |
| &nbsp;&nbsp;&nbsp;Disposition due to sale of property | (383450) |  |
| &nbsp;&nbsp;&nbsp;Additions |  | 110000 |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | 1062388 |
| Balance, end of period | $1303751 | $1531589 |

---

Total ARO at March 31, 2022 and 2021 shown in the table above consists of amounts for future plugging and abandonment liabilities on our wellbores and facilities based on third-party estimates of such costs, adjusted for inflation for the periods ended March 31, 2022 and 2021, respectively. These values are discounted to present value at 10% per annum for the periods ended March 31, 2022 and 2021. The Company disposed of a portion of their properties and wrote off the balance of ARO associated with that disposal of $383,450 in sales of some of the Company's properties.

**NOTE 14: RELATED PARTY TRANSACTIONS**

In the years ended March 31, 2022 and 2021, Ecoark contributed $3,366,022 and $13,265,294 to the Company to be used in operations for working capital purposes which the Company considers are similar to trade payables rather than third party financing. Accordingly, the inflows have been accounted for as operating activities in the accompanying statements of cash flows in accordance with ASC 230, Statements of Cash Flows.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

**NOTE 15: LEASES**

The Company has adopted ASU No. 2016-02, *Leases (Topic 842)*, as of April 1, 2019 and will account for their leases in terms of the right of use assets and offsetting lease liability obligations under this pronouncement. The Company recorded these leases at present value, in accordance with the standard, using discount rates ranging between 2.5% and 11.36%. The right of use asset is composed of the sum of all lease payments, at present value, and is amortized straight line over the life of the expected lease term. For the expected term of the lease the Company used the initial terms ranging between 42 and 60 months. Upon the election by the Company to extend the lease for additional years, that election will be treated as a lease modification and the lease will be reviewed for re-measurement.

The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach. Adoption of the new standard did not result in an adjustment to retained earnings for the Company.

As of March 31, 2022, the value of the unamortized lease right of use asset is $243,494, of which is from an operating lease (through maturity at November 30, 2023). As of March 31, 2022, the Company's lease liability was $265,498, of which is from an operating lease.

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY

---

| | |
|:---|:---|
| Maturity of lease liability for the operating lease for the period ended March 31, |  |
| 2023 | $155263 |
| 2024 | $108116 |
| 2024 | $2119 |
| Total lease liability | $265498 |

---

---

| | |
|:---|:---|
| Disclosed as: |  |
| Current portion | $155263 |
| Non-current portion | $110235 |

---

---

| | |
|:---|:---|
| Amortization of the right of use asset for the period ended March 31, |  |
| 2023 | $142907 |
| 2024 | $98468 |
| 2025 | $2119 |
| Total | $243494 |

---

**Total Lease Cost**

Individual components of the total lease cost incurred by the Company is as follows:

SCHEDULE OF TOTAL LEASE COST

---

| | | |
|:---|:---|:---|
|  | **Year ended<br> March 31,<br> 2022** | **Year ended<br> March 31,<br> 2021** |
| **Operating lease expense** | $135850 | $79246 |

---

**NOTE 16: INCOME TAXES**

The Company has been included as a subsidiary of Ecoark's consolidated income tax return filed with the Internal Revenue Service and State tax authorities. The effective tax rate for the years ended March 31, 2022 and 2021 varied from the expected statutory tax rate due to the Company continuing to provide a 100% valuation allowance on net deferred tax assets. The Company determined that it was appropriate to continue the full valuation allowance on net deferred tax assets as March 31, 2022, primarily because of the Company's history of operating losses. The Company has incurred operating losses in recent years, and it continues to be in a three-year cumulative loss position at March 31, 2022. Accordingly, the Company determined that there was not sufficient positive evidence regarding its potential for future profits to outweigh the negative evidence of the three-year cumulative loss position under the guidance provided in ASC 740. Therefore, it determined to continue to provide a 100% valuation allowance on its net deferred tax assets. To the extent the Company determines that the realization of some or all of these benefits is more likely than not based upon expected future taxable income, a portion or all of the valuation allowance will be reversed. Based on Ecoark's consolidated income tax return, the Company has approximately $128 million in Federal and $87 million in State net operating loss carryforwards to offset future taxable income as of March 31, 2022.

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

**NOTE 17: SUBSEQUENT EVENTS**

Subsequent to March 31, 2022, the Company had the following transactions:

Fortium Holdings Corp. ("Fortium") executed a Share Exchange Agreement (the "Exchange Agreement") on July 25, 2022 and pursuant to the Exchange Agreement that day acquired 100% of the outstanding shares of capital stock of White River Holdings from Ecoark, White River Holdings' sole stockholder. In exchange Fortium issued Ecoark 1,200 shares of the newly designated non-voting Series A Convertible Preferred Stock (the "Series A"). The Series A will become convertible into approximately 42,253,521 shares of Fortium's common stock upon such time as (A) Fortium has filed a Form S-1 or Form 10, or other applicable form, with the Securities and Exchange Commission (the "SEC") and such Form S-1 or other registration statement has been declared effective, or such Form 10 or other applicable form is no longer subject to comments from the Staff of the SEC, and (B) Ecoark elects to distribute shares of the Fortium's common stock to Ecoark's stockholders. The Series A has a liquidation preference over the common stock and any subsequent series of junior preferred stock equal to the stated value, plus any accrued but unpaid dividends.

**SUPPLEMENTAL INFORMATION ON OIL AND GAS PRODUCING ACTIVITIES (UNAUDITED)**

The following supplemental unaudited information regarding the Company's oil and gas activities is presented pursuant to the disclosure requirements of ASC 932. All of the Company's activities are in the United States.

**Results of Operations**

SCHEDULE OF RESULTS OF OPERATIONS

---

| | | |
|:---|:---|:---|
| **Results of Operations** | **March 31, <br> 2022** | **March 31, <br> 2021** |
| **Sales** | $5038855 | $2362577 |
| **Lease operating costs** | (6263875) | (9476002) |
| **Depletion, accretion and impairment** | (4949830) | (933437) |
|  | $(4340307) | $(8046862) |

---

**Reserve Quantity Information**

The supplemental unaudited presentation of proved reserve quantities and related standardized measure of discounted future net cash flows provides estimates only and does not purport to reflect realizable values or fair market values of the Company's reserves. The Company emphasizes that reserve estimates are inherently imprecise and that estimates of new discoveries are more imprecise than those of producing oil and gas properties. Accordingly, significant changes to these estimates can be expected as future information becomes available.

Proved reserves are those estimated reserves of crude oil (including condensate and natural gas liquids) and natural gas that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions. Proved developed reserves are those expected to be recovered through existing wells, equipment, and operating methods.

**Estimated Quantities of Proved Reserves (Bbl)**

SCHEDULE OF ESTIMATED QUANTITIES OF PROVED RESERVES

---

| | | |
|:---|:---|:---|
| **Estimated Quantities of Net Proved Reserves** | **March 31, <br> 2022** | **March 31, <br> 2021** |
| Net Proved Developed, Producing | 169688 | 462914 |
| Net Proved Developed, Non-Producing | - | - |
| &nbsp;&nbsp;&nbsp;Total Net Proved Developed | 169688 | 462914 |
| Net Proved Undeveloped | - | - |
| Total Net Proved | 169688 | 462914 |

---

**WHITE RIVER HOLDINGS CORP**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2022 AND 2021**

SCHEDULE OF ESTIMATED QUANTITIES OF NET PROVED DEVELOPMENT

---

| | | |
|:---|:---|:---|
| **Estimated Quantities of Net Proved Reserves – Proved Developed, Producing** | **March 31, <br> 2022** | **March 31, <br> 2021** |
| Beginning of the year | 462914 | 17000 |
| Revisions of previous estimates | (21570) | (12633) |
| Improved recovery |  |  |
| Purchases of minerals in place |  | 495108 |
| Extensions and discoveries |  |  |
| Production | (61039) | (36561) |
| Sales of minerals in place | (210617) | - |
| End of year | 169688 | 462914 |

---

**Petroleum and Natural Gas Reserves**

Reserves are estimated remaining quantities of oil and natural gas and related substances, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known resources, and under existing economic conditions, operating methods and government regulations prior to the time at which contracts providing the right to operate expire.

**Costs Incurred in Oil and Gas Property Acquisition, Exploration and Development**

SCHEDULE OF COST INCURRED IN OIL AND GAS PROPERTY ACQUISITION EXPLORATION AND DEVELOPMENT

---

| | | |
|:---|:---|:---|
|  | **March 31, <br> 2022** | **March 31, <br> 2021** |
| Acquisition of properties |  |  |
| &nbsp;&nbsp;&nbsp;Proved | $- | $6220997 |
| &nbsp;&nbsp;&nbsp;Unproved | $303500 | $4746297 |
| Exploration costs | $- | $- |
| Development costs | $114424 | $2696615 |

---

**Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves**

The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves and the changes in standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves were prepared in accordance with provisions of ASC 932, "Extractive Activities – Oil and Gas." Future cash inflows as March 31, 2022 and 2021 were computed by applying the unweighted, arithmetic average of the closing price on the first day of each month for the twelve month period prior to March 31, 2022 and 2021 to estimated future production. Future production and development costs are computed by estimating the expenditures to be incurred in developing and producing the proved oil and natural gas reserves at year-end, based on year-end costs and assuming continuation of existing economic conditions. The standardized measure includes costs for future dismantlement, abandonment and rehabilitation obligations.

Future income tax expenses are calculated by applying appropriate year-end tax rates to future pretax net cash flows relating to proved oil and natural gas reserves, less the tax basis of properties involved. Future income tax expenses give effect to permanent differences, tax credits and loss carry forwards relating to the proved oil and natural gas reserves. Future net cash flows are discounted at a rate of ten percent annually to derive the standardized measure of discounted future net cash flows. This calculation procedure does not necessarily result in an estimate of the fair market value of the Company's oil and natural gas properties.

The standardized measure of discounted future net cash flows relating to proved oil and natural gas reserves for the years ended March 31, 2022 and 2021 are as follows:

SCHEDULE OF STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOW

---

| | | |
|:---|:---|:---|
| **Standardized Measure of Discounted Future Net Cash Flow** | **March 31, <br> 2022** | **March 31, <br> 2021** |
| Future gross revenue | $12801590 | $17838848 |
| Less: Future production tax expense | (602982) | (1181379) |
| &nbsp;&nbsp;&nbsp;Future gross revenue after production taxes | 12198608 | 16657469 |
| Less: Future operating costs | (6098161) | (7577657) |
| Less: Ad Valorem Taxes | (167657) | (159814) |
| Less: Development costs | (565085) | (870357) |
| &nbsp;&nbsp;&nbsp;Future net income (loss) before taxes | 5367705 | 8049641 |
| &nbsp;&nbsp;&nbsp;Less: Future income tax expense<sup>(1)</sup> | - | - |
| 10% annual discount for estimated timing of cash flows | (1822233) | (2347850) |
| Discounted future net cash flows | $3545472 | $5701791 |

---

<sup>(1)</sup> The Company has sufficient tax deductions and allowances related to proved oil and gas reserves to offset future net revenues.

**Changes in Standardized Measure of Discounted Future Net Cash Flows** 

The changes in the standardized measure of future net cash flows relating to proved oil and natural gas reserves for the years ended March 31, 2022 and 2021 are as follows:

SCHEDULE OF CHANGE IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOW

---

| | | |
|:---|:---|:---|
| **Change in Standardized Measure of Discounted Future Net Cash Flow** | **March 31, <br> 2022** | **March 31, <br> 2021** |
| **Balance - beginning** | $5701791 | $(88308) |
| **Net changes in prices and production costs** | 602918 | (3871613) |
| **Net changes in future development costs** | 16844 | (391731) |
| **Sales of oil and gas produced, net** | (363095) | (510189) |
| **Extensions, discoveries and improved recovery** |  |  |
| **Purchases of reserves** |  | 10563632 |
| **Sales of reserves** | (4343965) |  |
| **Revisions of previous quantity estimates** | 1930979 |  |
| **Previously estimated development costs incurred** |  |  |
| **Net change income taxes** |  |  |
| **Accretion of discount** | - | - |
| **Balance - ending** | $3545472 | $5701791 |

---

In accordance with SEC requirements, the pricing used in the Company's standardized measure of future net revenues in based on the twelve-month unweighted arithmetic average of the first day of the month price for the period April through March for each period presented and adjusted by lease for transportation fees and regional price differentials. The use of SEC pricing rules may not be indicative of actual prices realized by the Company in the future.

**WHITE RIVER ENERGY CORP**

**(FORMERLY FORTIUM HOLDINGS CORP.)**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

**DECEMBER 31, 2022 (UNAUDITED) AND MARCH 31, 2022**

---

| | | |
|:---|:---|:---|
|  | **DECEMBER 31,**<br>**2022** | **MARCH 31,**<br>**2022** |
|  | **(unaudited)** |  |
| **<u>ASSETS</u>** |  |  |
| CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Cash (including $251,375 and $201,050 in restricted cash) | $1215439 | $251050 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net of $50,895 in reserve for bad debt in December 31, 2022 | 873691 | 634483 |
| &nbsp;&nbsp;&nbsp;Receivable - Participation Agreement | 1597632 |  |
| &nbsp;&nbsp;&nbsp;Inventories - Crude Oil | 103324 | 107026 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 1041931 | 318771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 4832017 | 1311330 |
| NON-CURRENT ASSETS: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 3156992 | 596464 |
| &nbsp;&nbsp;&nbsp;Right of use asset - operating lease | 136390 | 243494 |
| &nbsp;&nbsp;&nbsp;Right of use asset - financing lease | 184532 |  |
| &nbsp;&nbsp;&nbsp;Oil and gas properties, full cost-method | 5358850 | 6626793 |
| &nbsp;&nbsp;&nbsp;Capitalized drilling costs, net of depletion | 494408 | 604574 |
| &nbsp;&nbsp;&nbsp;Other assets | 13465 | 14760 |
| &nbsp;&nbsp;&nbsp;Goodwill | 2100374 | 2100374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 11445011 | 10186459 |
| **TOTAL ASSETS** | $16277028 | $11497789 |
| **<u>LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</u>** |  |  |
| **LIABILITIES** |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $1306839 | $799100 |
| &nbsp;&nbsp;&nbsp;Accrued liabilities | 241853 | 119600 |
| &nbsp;&nbsp;&nbsp;Due to Ecoark Holdings, Inc. (\*) |  |  |
| &nbsp;&nbsp;&nbsp;Cash overdraft |  | 27918 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities (including the Series C Preferred Shares) | 12353541 |  |
| &nbsp;&nbsp;&nbsp;Deferred liabilities | 3243153 |  |
| &nbsp;&nbsp;&nbsp;Convertible note payable, net of discount | 582569 |  |
| &nbsp;&nbsp;&nbsp;Current portion of long-term debt | 65518 |  |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability - operating lease | 145476 | 155263 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability - financing lease | 29020 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 17967969 | 1101881 |
| NON-CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp;Lease liability - operating lease, net of current portion | 4179 | 110235 |
| &nbsp;&nbsp;&nbsp;Lease liability - financing lease, net of current portion | 123550 |  |
| &nbsp;&nbsp;&nbsp;Long-term debt, net of current portion | 143953 |  |
| &nbsp;&nbsp;&nbsp;Asset retirement obligations | 671135 | 1303751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current liabilities | 942817 | 1413986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total Liabilities** | 18910786 | 2515867 |
| COMMITMENTS AND CONTINGENCIES |  |  |
| **STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001par value, 5,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series A - 1,200and 1,200shares issued and outstanding (\*) | 1 | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series B - noshares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series C - 190.2726308and 0shares issued and outstanding (included in derivative liabilities) |  |  |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001par value, 500,000,000 shares authorized and 10,066,667 and 0 shares issued and outstanding (\*) | 1007 |  |
| &nbsp;&nbsp;&nbsp;Additional paid in capital (\*) | 41912737 | 25660896 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (44547503) | (16678975) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | (2633758) | 8981922 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** | $16277028 | $11497789 |

---

---

| | |
|:---|:---|
| (\*) | On July 25, 2022, White River Holdings Corp. ("Holdings") acquired White River Energy Corp, then named Fortium Holdings Corp. (the "Company"), in a share exchange. White River Holdings' parent, Ecoark Holdings, Inc., now known as BitNile Metaverse, Inc. ("Ecoark"), was issued 1,200 shares of Series A convertible preferred stock ("Series A") of the Company in exchange for the 60,000,000 common shares that were outstanding at the time of the share exchange. The Company has reflected this transaction retroactively in these interim financial statements. Since the amounts Due to Ecoark were exchanged in the issuance of the preferred shares, these have been reflected in additional paid in capital. The reclassification of amounts due to Ecoark as of March 31, 2022 that were reclassified to additional paid in capital were $25,058,733 and are deemed to have been permanently contributed by Ecoark. |

---

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

**WHITE RIVER ENERGY CORP**

**(FORMERLY FORTIUM HOLDINGS CORP.)**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)**

**FOR THE NINE AND THREE MONTHS ENDED DECEMBER 31, 2022 AND 2021**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **NINE MONTHS ENDED** | **NINE MONTHS ENDED** | **THREE MONTHS ENDED** | **THREE MONTHS ENDED** |
|  | **DECEMBER 31,** | **DECEMBER 31,** | **DECEMBER 31,** | **DECEMBER 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **REVENUES** | $3015203 | $3573186 | $806443 | $1270115 |
| **COSTS AND EXPENSES** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost of revenues (excludes items below) | 1109372 | 705707 | 297395 | 11449 |
| &nbsp;&nbsp;&nbsp;Salaries and salaries related costs | 4861432 | 1946302 | 2540366 | 700424 |
| &nbsp;&nbsp;&nbsp;Professional and consulting fees | 2821430 | 284900 | 2502156 | 143680 |
| &nbsp;&nbsp;&nbsp;Oilfield costs, supplies and repairs | 8552596 | 651421 | 4328988 | 55793 |
| &nbsp;&nbsp;&nbsp;Selling, general and administrative costs | 3192647 | 3095913 | 598275 | 488352 |
| &nbsp;&nbsp;&nbsp;Depreciation, amortization, impairment, depletion, and accretion | 6398704 | 1587702 | 196308 | 353440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 26936181 | 8271945 | 10463488 | 1753138 |
| **LOSS FROM OPERATIONS BEFORE OTHER INCOME (EXPENSE)** | (23920978) | (4698759) | (9657045) | (483023) |
| **OTHER INCOME (EXPENSE)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liabilities | 3451752 | 7647407 | 3451752 | 5489569 |
| &nbsp;&nbsp;&nbsp;Derivative expense | (10124521) |  | (10124521) |  |
| &nbsp;&nbsp;&nbsp;Gain (loss) on sale of oil and gas property and ARO | 405052 | 721365 | 13519 |  |
| &nbsp;&nbsp;&nbsp;Gain on sale of working interests on oil and gas properties | 2569241 |  | 1597632 |  |
| &nbsp;&nbsp;&nbsp;Amortization of original issue discount | (6525) |  | (6525) |  |
| &nbsp;&nbsp;&nbsp;Interest expense, net of interest income | (9108) | (262528) | (4985) | 15642 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other income (expense) | (3714109) | 8106244 | (5073128) | 5505211 |
| **(LOSS) INCOME FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (27635087) | 3407485 | (14730173) | 5022188 |
| **DISCONTINUED OPERATIONS:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss from discontinued operations | (85848) |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss on disposal of discontinued operations | (144654) | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total discontinued operations | (230502) | - | - | - |
| **(LOSS) INCOME FROM OPERATIONS BEFORE PROVISION FOR INCOME TAXES** | (27865589) | 3407485 | (14730173) | 5022188 |
| PROVISION FOR INCOME TAXES | (2939) | - | (2939) | - |
| **NET (LOSS) INCOME** | $(27868528) | $3407485 | $(14733112) | $5022188 |
| **NET (LOSS) EARNINGS PER SHARE - BASIC** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;**Continuing operations** | $(3.23) | $- | $(1.70) | $- |
| &nbsp;&nbsp;&nbsp;**Discontinued operations** | (0.03) | - | - | - |
| **NET (LOSS) EARNINGS PER SHARE** | $(3.26) | $- | $(1.70) | $- |
| **WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC (\*)** | 8557233 | - | 8671739 | - |
| **NET (LOSS) EARNINGS PER SHARE - DILUTED** | $(3.26) | $- | $(1.70) | $- |
| **WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED (\*)** | 8557233 | - | 8671739 | - |

---

(\*) Since the retroactive treatment is reflected and there were only Series A preferred shares issued in the exchange, no EPS for the prior periods are reflected. The 1,200 Series A convert into 42,253,521 common shares.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

**WHITE RIVER ENERGY CORP**

**(FORMERLY FORTIUM HOLDINGS CORP.)**

**CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)**

**FOR THE NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Preferred Stock (\*)** | **Series A Preferred Stock (\*)** | **Series C Preferred Stock** | **Series C Preferred Stock** | **Common Stock (\*)** | **Common Stock (\*)** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional<br> Paid-In**<br>**Capital (\*)** | **Accumulated**<br>**Deficit** |<br>**Total** |
| Balance - March 31, 2021(\*) | 1200 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1 |  | $- |  | $- | $23907983 | $(9756222) | $14151762 |
| Advances from Ecoark Holdings Inc. to White River Holdings Corp, net |  |  |  |  |  |  | 3213283 |  | 3213283 |
| Cost allocations from Ecoark Holdings, Inc. |  |  |  |  |  |  | (974485) |  | (974485) |
| Net income for the period | - | - |  | - | - | - | - | 1017766 | 1017766 |
| Balance - June 30, 2021 | 1200 | 1 |  |  |  |  | 26146781 | (8738456) | 17408326 |
| Advances from Ecoark Holdings, Inc. to White River Holdings Corp, net |  |  |  |  |  |  | (433331) |  | (433331) |
| Cost allocations from Ecoark Holdings, Inc. |  |  |  |  |  |  | 1675482 |  | 1675482 |
| Net loss for the period | - | - |  | - | - | - | - | (2632469) | (2632469) |
| Balance - September 30, 2021 | 1200 | 1 |  |  |  |  | 27388932 | (11370925) | 16018008 |
| Advances from Ecoark Holdings, Inc. to White River Holdings Corp, net |  |  |  |  |  |  | (25336) |  | (25336) |
| Cost allocations from Ecoark Holdings, Inc. |  |  |  |  |  |  | (5081496) |  | (5081496) |
| Net income for the period | - | - |  | - | - | - | - | 5022188 | 5022188 |
| Balance - December 31, 2021 | 1200 | $1 |  | $- | - | $- | $22282100 | $(6348737) | $15933364 |
| Balance - March 31, 2022 | 1200 | $1 |  | $- |  | $- | $25660896 | $(16678975) | $8981922 |
| Advances from Ecoark Holdings, Inc. to White River Holdings Corp, net |  |  |  |  |  |  | 2597455 |  | 2597455 |
| Net loss for the period | - | - |  | - | - | - | - | (1986544) | (1986544) |
| Balance - June 30, 2022 | 1200 | 1 |  |  |  |  | 28258351 | (18665519) | 9592833 |
| Advances from Ecoark Holdings, Inc. to White River Holdings Corp, net |  |  |  |  |  |  | 1297322 |  | 1297322 |
| To reflect the reverse merger of White River Holdings Corp |  |  |  |  | 8400000 | 840 | 5963160 |  | 5964000 |
| To record contribution of capital by Ecoark Holdings, Inc. |  |  |  |  |  |  | 3000000 |  | 3000000 |
| Stock-based compensation |  |  |  |  |  |  | 657935 |  | 657935 |
| Net loss for the period | - | - |  | - | - | - | - | (11148872) | (11148872) |
| Balance - September 30, 2022 | 1200 | 1 |  |  | 8400000 | 840 | 39176768 | (29814391) | 9363218 |
| Preferred shares issued in PIPE, net of classification as liability\*\* |  |  |  |  |  |  |  |  |  |
| Shares issued in consulting agreement |  |  |  |  | 1666667 | 167 | 1666500 |  | 1666667 |
| Stock-based compensation |  |  |  |  |  |  | 1069469 |  | 1069469 |
| Net loss for the period | - | - |  | - | - | - | - | (14733112) | (14733112) |
| Balance - December 31, 2022 | 1200 | $1 |  | $- | 10066667 | $1007 | $41912737 | $(44547503) | $(2633758) |

---

\* On July 25, 2022, White River Holdings acquired the Company in a share exchange. White River Holdings' parent, Ecoark was issued 1,200 Series A of the Company in exchange for the 60,000,000 common shares that were outstanding at the time of the share exchange. The Company has reflected this transaction retroactively in these interim financial statements along with amounts due to Ecoark that were exchanged for the Series A. The reclassification of amounts due to Ecoark as of July 25, 2022 and March 31, 2022 that were reclassified to additional paid in capital were $28,953,510 and $25,058,733 and are deemed to have been permanently contributed by Ecoark.

\*\* The entire value of the 190.2726308 shares of Series C Convertible Preferred Stock is reflected as a liability and thus not included herein.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

**WHITE RIVER ENERGY CORP**

**(FORMERLY FORTIUM HOLDINGS CORP.)**

**CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)**

**FOR THE NINE MONTHS ENDED DECEMBER 31, 2022 AND 2021**

---

| | | |
|:---|:---|:---|
|  | **DECEMBER 31,** | **DECEMBER 31,** |
|  | **2022** | **2021** |
| **CASH FLOW FROM OPERATING ACTIVITIES FROM OPERATIONS** |  |  |
| &nbsp;&nbsp;&nbsp;Net (loss) income | $(27868528) | $3407485 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Home office allocation |  | (4380499) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation, amortization, depletion, accretion and impairment | 6406201 | 1587702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation | 1727404 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fees paid in termination of note payable | 65065 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bad debt reserve | 50895 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of Norr and Elysian | 144654 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of oil and gas property, ARO and fixed assets | (405052) | (29078) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (3451752) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for services | 1666667 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative expense | 10124521 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of discount | 6525 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expenses recorded on notes payable and preferred stock transactions | 50000 |  |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (290103) | 42692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable - Participation Agreement | (1597632) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 3702 | (43136) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | (721865) | (24561) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right of use asset - operating leases | 107104 | 83167 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of right of use asset - financing leases | 5173 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues | 3243153 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contribution from Ecoark Holdings, Inc. | 3884620 | 2754616 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease expense | (115843) | (89570) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense on financing leases | 806 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued payable and accrued liabilities | 629992 | (2978112) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments | 21534235 | (3076779) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash used in operating activities of continuing operations** | (6334293) | 330706 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in discontinued operations | (88340) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) provided by operating activities** | (6422633) | 330706 |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of oil and gas properties, net of asset retirement obligations |  | (303500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advances on note receivable | (200000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments received from note receivable | 200000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of fixed assets |  | 2500 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized drilling costs | (214197) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of oil and gas properties | 999999 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of fixed assets | (1096442) | (19500) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash (used in) investing activities** | (310640) | (320500) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| &nbsp;&nbsp;&nbsp;(Decrease) in cash overdraft | (27918) | (9798) |
| &nbsp;&nbsp;&nbsp;Proceeds from Series C Preferred Stock, net | 4721816 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from long-term debt | 145266 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from note payable | 1485000 |  |
| &nbsp;&nbsp;&nbsp;Repayment of long-term debt and note payable | (1588561) |  |
| &nbsp;&nbsp;&nbsp;Payment of lease liability | (37941) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from Ecoark Holdings, Inc. in acquisition of White River | 3000000 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Net cash provided by (used in) financing activities** | 7697662 | (9798) |
| **NET INCREASE IN CASH AND RESTRICTED CASH** | 964389 | 408 |
| **CASH AND RESTRICTED CASH - BEGINNING OF PERIOD** | 251050 | 250413 |
| **CASH AND RESTRICTED CASH - END OF PERIOD** | $1215439 | $250821 |
| **SUPPLEMENTAL DISCLOSURES** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest expense | $10841 | $- |
| &nbsp;&nbsp;&nbsp;Cash paid for income taxes | $2939 | $- |
| **SUMMARY OF NON-CASH ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net assets acquired from Fortium Holdings Corp. | $46157 | $- |
| &nbsp;&nbsp;&nbsp;Bifurcation of derivative liability from convertible note | $923956 | $- |
| &nbsp;&nbsp;&nbsp;ROU asset acquired for lease liability - financing leases | $189705 | $- |
| &nbsp;&nbsp;&nbsp;Fixed assets acquired for notes payable and long-term debt | $1587701 | $- |

---

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

**WHITE RIVER ENERGY CORP**

**(FORMERLY FORTIUM HOLDINGS CORP.)**

**NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**

**DECEMBER 31, 2022**

**NOTE 1: DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Description of Business***

The terms "we," "us," "our," "registrant," and the "Company" refer to White River Energy Corp.

On September 19, 2022, the Company changed its name from Fortium Holdings Corp. to White River Energy Corp. On September 28, 2022, the Board of Directors and holders of the majority outstanding voting power approved the changing of the fiscal year of the Company from December 31 to March 31, and approved increasing the authorized capital to 505,000,000 shares consisting of 500,000,000 shares of common stock (from 200,000,000) and 5,000,000 shares of preferred stock. The Company filed a Certificate of Amendment to the Articles of Incorporation with the Nevada Secretary of State on September 29, 2022, and the changes became effective upon filing.

The Company executed a Share Exchange Agreement (the "Exchange Agreement") on July 25, 2022 and pursuant to the Exchange Agreement that day acquired 100% of the outstanding shares of capital stock of White River Holdings Corp, a Delaware corporation ("Holdings") from Ecoark Holdings, Inc., now known as BitNile Metaverse, Inc. ("Ecoark"), White River Holdings' sole stockholder. In exchange the Company issued Ecoark 1,200 shares of the newly designated non-voting Series A Convertible Preferred Stock (the "Series A"). The Series A will become convertible into approximately 42,253,521 shares of the Company's common stock upon such time as (A) the Company has filed a Form S-1, with the Securities and Exchange Commission (the "SEC") and such Form S-1 has been declared effective or is no longer subject to comments from the Staff of the SEC, and (B) Ecoark elects to distribute shares of the Company's common stock to Ecoark's stockholders. The Company filed the Form S-1 in December 2022 (File No. 333-268707), and is currently in the process of addressing the comments from the SEC Staff. The Series A has a stated value of $30 million and has a liquidation preference over the common stock and any subsequent series of junior preferred stock equal to the stated value, plus any accrued but unpaid dividends; the Series A, however, does not have any of the voting rights of common stockholders. The transaction was accounted for as a share exchange, whereby Holdings is considered the accounting acquirer. Since the share exchange occurred with a non-shell public company, the transaction included the purchase of the non-controlling interest of Fortium Holdings Corp. Except as expressly indicated in this Report to the contrary or where the context clearly dictates otherwise, references in this Report to "Fortium Holdings Corp." refers to the predecessor of the Company before the Holdings share exchange was effected in July 2022.

Holdings has operations in oil and gas, including exploration, production and drilling operations on over 30,000 cumulative acres of active mineral leases Louisiana, and Mississippi.

Pursuant to the Exchange Agreement Mr. Randy May, Ecoark's Chief Executive Officer, was appointed as Executive Chairman and as a director of the Company, and Mr. Jay Puchir, Ecoark's Chief Financial Officer, was appointed as Chief Executive Officer and Principal Financial Officer of the Company. Effective July 28, 2022, the number of directors of the Company was fixed at five, and Danny Hames, James Cahill, Greg Landis, and Alisa Horgan were appointed as directors. Alisa Horgan is the daughter of Randy May, and wife of Richard Horgan, who was the Company's Chief Executive Officer and sole director until after the closing of the Holdings acquisition.

Ecoark has advised us that it plans to spin-off the common stock issuable upon conversion of the Series A issued in the share exchange with Holdings, subject to the effectiveness of the Form S-1.

On July 29, 2022, the Company filed a Certificate of Designation with the Nevada Secretary of State designating a new series of preferred stock as Series B Preferred Stock (the "Series B"). The single authorized share of Series B is entitled to vote with the Company's common stock as a single class on any matter brought before the stockholders, and the Series B is entitled to a number of votes equal to the greater of (A) 100,000,000 votes, or (B) 50.1% of the Company's voting power as of the applicable date of determination. Any outstanding Series B will be automatically cancelled upon the Company applying to have its common stock listed on a national securities exchange. As of the date of this Report, the Series B is unissued. The Series B is intended to enable the Board of Directors to act quickly to react to any potential hostile takeover. The auto-cancellation provision was included because the super-voting rights contained in the Series B would violate the rules of a prospective national securities exchange.

On October 25, 2022, the Company filed a Certificate of Designation of the Rights, Preferences and Limitations (the "Series C Certificate of Designation") of Series C Convertible Preferred Stock (the "Series C") with the Nevada Secretary of State. The Series C Certificate of Designation provides for the issuance of up to 1,000 shares of Series C. From October 25, 2022 through November 8, 2022, the Company sold 190.2726308 Units, with each Unit comprised of one share of Series C and one Warrant to purchase 200% of the shares of common stock underlying such share of Series C (the "Units") at a purchase price of $25,000 per Unit for $4,756,816 in proceeds net of offering expenses of $35,593. The Warrants may be separately sold by the holders rather than exercised into shares of common stock, and the Company has submitted an application for the Warrants to be traded on the OTCQB under their own unique ticker symbol.

On March 18, 2021, the Company formed Norr LLC ("Norr"), a Nevada limited liability company and wholly-owned subsidiary of the Company, and commenced operations as a sports equipment and apparel manufacturer and retailer.

On September 9, 2021, the Company formed Elysian, a Colorado corporation and wholly-owned subsidiary, for the purpose of engaging in cannabis operations.

In September 2022, the Company sold both Norr and Elysian pursuant to a Membership Interest Purchase Agreement ("MIPA") for Norr, and a Stock Purchase Agreement for Elysian. These entities were sold to non-related third parties for $1 each. The purpose of the sale of these entities was for the Company to divest themselves of their non-core assets and focus exclusively on the oil and gas production business of Holdings.

On September 16, 2022, the Board of Directors and stockholders approved the name change of the Company from Fortium Holdings Corp. to White River Energy Corp. All paperwork were submitted to both the State of Nevada and to the Financial Industry Regulatory Authority ("FINRA") on September 20, 2022 and subsequently approved.

The Company has reflected the operations of both Norr and Elysian post-combination in discontinued operations and have reflected the loss on disposal of these companies in the Statements of Operations. All information related to the prior operations and corporate formation of these entities is included in the Company's Annual Report on Form 10-K, filed March 15, 2022 and the Form 10-Q for the period ended June 30, 2022 filed August 12, 2022.

***Basis of Presentation***

The Company's unaudited condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States (GAAP). Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification (ASC) and Accounting Standards Update (ASU) of the Financial Accounting Standards Board (FASB).

All adjustments considered necessary for a fair presentation have been included. These adjustments consist of normal and recurring accruals, as well as non-recurring charges.

As the acquisition of Holdings resulted in the owner of Holdings gaining control over the combined entity after the transaction, and the stockholders of the Company continuing only as passive investors, the transaction was not considered a business combination under the ASC. Instead, this transaction was considered to be a capital transaction of the legal acquiree (Holdings) and was equivalent to the issuance of shares by Holdings for the net monetary assets of the Company, except for the purchase of the 8,400,000shares of issued and outstanding common shares of Fortium Holdings Corp., which were considered as purchase consideration resulting in $5,917,843 of goodwill that was impaired immediately. As a result, the historical balances represent Holdings. See Note 2, "Merger" for more details on the accounting for the share exchange.

The condensed consolidated financial statements, and the accompanying notes, are prepared in accordance with GAAP and do not contain certain information included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, as well as the Holdings audited financial statements that are reflected in Form 8-K/A filed by the Company on October 28, 2022. Therefore, the interim condensed consolidated financial statements should be read in conjunction with those reports. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year due to various factors.

***Principles of Consolidation***

The Company prepares its consolidated financial statements on the accrual basis of accounting. The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts, balances and transactions have been eliminated in the consolidation.

***Reclassifications***

The Company has reclassified certain amounts in the December 31, 2021 condensed consolidated financial statements to be consistent with the December 31, 2022 presentation. These changes had no impact on the Company's financial position or result of operations for the periods presented. In addition, we had reclassifications related to the retroactive treatment of certain liabilities and equity items which are reflected by asterisks in the condensed consolidated financial statements that had no impact on our net loss.

***Use of Estimates***

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the U.S. 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 consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, management's estimate of provisions required for uncollectible accounts receivable, fair value of assets held for sale and assets and liabilities acquired, impaired value of equipment and intangible assets, including goodwill, asset retirement obligations, estimates of discount rates in lease, liabilities to accrue, fair value of derivative liabilities associated with warrants, cost incurred in the satisfaction of performance obligations, permanent and temporary differences related to income taxes and determination of the fair value of stock awards.

Actual results could differ from those estimates.

The estimates of proved, probable and possible oil and gas reserves are used as significant inputs in determining the depletion of oil and gas properties and the impairment of proved and unproved oil and gas properties. There are numerous uncertainties inherent in the estimation of quantities of proven, probable and possible reserves and in the projection of future rates of production and the timing of development expenditures. Similarly, evaluations for impairment of proved and unproved oil and gas properties are subject to numerous uncertainties including, among others, estimates of future recoverable reserves and commodity price outlooks. Actual results could differ from the estimates and assumptions utilized.

***Oil and Gas Properties***

The Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under the full cost method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs are capitalized. General and administrative costs related to production and general overhead are expensed as incurred.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

There was $312,679 and $1,445,233 in depletion expense for the Company's oil and gas properties for the nine months ended December 31, 2022 and 2021, and $110,722 and $305,079 for the three months ended December 31, 2022 and 2021, respectively.

***Limitation on Capitalized Costs***

Under the full-cost method of accounting, we are required, at the end of each reporting period, to perform a test to determine the limit on the book value of our oil and gas properties (the "Ceiling" test). If the capitalized costs of our oil and natural gas properties, net of accumulated amortization and related deferred income taxes, exceed the Ceiling, the excess or impairment is charged to expense. The expense may not be reversed in future periods, even though higher oil and gas prices may subsequently increase the Ceiling.

The Ceiling is defined as the sum of: (a) the present value, discounted at 10% and assuming continuation of existing economic conditions, of (1) estimated future gross revenues from proved reserves, which is computed using oil and gas prices determined as the unweighted arithmetic average of the first-day-of-the-month price for each month within the 12-month hedging arrangements pursuant to Staff Accounting Bulletin ("SAB") 103, less (2) estimated future expenditures (based on current costs) to be incurred in developing and producing the proved reserves; plus, (b) the cost of properties being amortized; plus, (c) the lower of cost or estimated fair value of unproven properties included in the costs being amortized; net of (d) the related tax effects related to the difference between the book and tax basis of our oil and natural gas properties. A ceiling test was performed as of December 31, 2022 and there were no indications of impairment noted.

***Oil and Gas Reserves***

Reserve engineering is a subjective process that is dependent upon the quality of available data and interpretation thereof, including evaluations and extrapolations of well flow rates and reservoir pressure. Estimates by different engineers often vary sometimes significantly. In addition, physical factors such as results of drilling, testing and production subsequent to the date of an estimate, as well as economic factors such as changes in product prices, may justify revision of such estimates. Because proved reserves are required to be estimated using recent prices of the evaluation, estimated reserve quantities can be significantly impacted by changes in product prices.

***Joint Interest Activities***

Certain of our exploration, development and production activities are conducted jointly with other entities and, accordingly, the consolidated financial statements reflect only our proportionate interest in such activities.

***Inventories***

Crude oil are carried at the lower of cost (last-in-first-out (LIFO)) or net realizable value. Inventory costs include expenditures and other charges directly and indirectly incurred in bringing the inventory to its existing condition and location.

***Accounting for Asset Retirement Obligation***

Asset retirement obligations ("ARO") primarily represent the estimated present value of the amount the Company will incur to plug, abandon and remediate its producing properties at the projected end of their productive lives, in accordance with applicable federal, state and local laws. The Company determined its ARO by calculating the present value of the estimated cash flows related to the obligation. The retirement obligation is recorded as a liability at its estimated present value as of the obligation's inception, with an offsetting increase to proved properties or to exploration costs in cost of revenue.

***Accounts Receivable and Concentration of Credit Risk***

The Company considers accounts receivable, net of allowance for doubtful accounts, to be fully collectible. The allowance is based on management's estimate of the overall collectability of accounts receivable, considering historical losses, credit insurance and economic conditions. Based on these same factors, individual accounts are charged off against the allowance when management determines those individual accounts are uncollectible. Credit extended to customers is generally uncollateralized, however credit insurance is obtained for some customers. Past-due status is based on contractual terms.

***Impairment of Long-lived Assets***

Management reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets.

***Property and Equipment and Long-Lived Assets***

Property and equipment is stated at cost. Depreciation on property and equipment is computed using the straight-line method over the estimated useful lives of the assets.

ASC 360 requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.

The Company reviews recoverability of long-lived assets on a periodic basis whenever events and changes in circumstances have occurred which may indicate a possible impairment. The assessment for potential impairment is based primarily on the Company's ability to recover the carrying value of its long-lived assets from expected future cash flows from its operations on an undiscounted basis. If such assets are determined to be impaired, the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets.

ASC 360-10 addresses criteria to be considered for long-lived assets expected to be disposed of by sale. Six criteria are listed in ASC 360-10-45-9 that must be met in order for assets to be classified as held for sale. Once the criteria are met, long-lived assets classified as held for sale are to be measured at the lower of carrying amount or fair value less costs to sell.

The Company assesses the impairment of identifiable intangibles whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers to be important which could trigger an impairment review include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Significant underperformance relative to expected historical or projected future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Significant changes in the manner of use of the acquired assets or the strategy for the overall business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Significant negative industry or economic trends.

When the Company determines that the carrying value of intangibles may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent in the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows.

***Fair Value Measurements***

The accounting guidance defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or non-recurring basis. Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the accounting guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1: Observable inputs such as quoted prices in active markets.

Level 2: Inputs, other than the quoted prices in active markets that are observable either directly or indirectly.

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The carrying values of the Company's financial instruments such as cash, investments, accounts payable, and accrued expenses approximate their respective fair values because of the short-term nature of those financial instruments.

***Revenue Recognition***

The Company accounts for revenue in accordance with ASC Topic 606, *Revenue from Contracts with Customers*.

The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The following five steps are applied to achieve that core principle:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 1: Identify the contract with the customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 2: Identify the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 3: Determine the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 4: Allocate the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Step 5: Recognize revenue when the Company satisfies a performance obligation

In order to identify the performance obligations in a contract with a customer, a company must assess the promised goods or services in the contract and identify each promised good or service that is distinct. A performance obligation meets ASC 606's definition of a "distinct" good or service (or bundle of goods or services) if both of the following criteria are met: The customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer (i.e., the good or service is capable of being distinct), and the entity's promise to transfer the good or service to the customer is separately identifiable from other promises in the contract (i.e., the promise to transfer the good or service is distinct within the context of the contract).

If a good or service is not distinct, the good or service is combined with other promised goods or services until a bundle of goods or services is identified that is distinct.

The transaction price is the amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer. The consideration promised in a contract with a customer may include fixed amounts, variable amounts, or both. When determining the transaction price, an entity must consider the effects of all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Variable consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Constraining estimates of variable consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The existence of a significant financing component in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Noncash consideration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Consideration payable to a customer

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The transaction price is allocated to each performance obligation on a relative standalone selling price basis. The transaction price allocated to each performance obligation is recognized when that performance obligation is satisfied, at a point in time or over time as appropriate.

The Company accounts for contract costs in accordance with ASC Topic 340-40, *Contracts with Customers*. The Company recognizes the cost of sales of a contract as expense when incurred or at the time a performance obligation is satisfied. The Company recognizes an asset from the costs to fulfil a contract only if the costs relate directly to a contract, the costs generate or enhance resources that will be used in satisfying a performance obligation in the future and the costs are expected to be recovered. The incremental costs of obtaining a contract are capitalized unless the costs would have been incurred regardless of whether the contract was obtained.

The Company recognizes revenue for their proportionate share of revenue when: (i) the Company receives notification of the successful sale of a load of crude oil to a buyer; (ii) the buyer will provide a price based on the average monthly price of crude oil in the most recent month; and (iii) cash is received the following month from the crude oil buyer.

The Company may, from time to time, do contract drilling of oil wells for other energy companies and that services revenue would be categorized as Other Revenue within continuing operations. The Company may, from time to time, sell off working interests in drilling projects on its own oil and gas mineral leases, and that revenue would be categorized within "Other Income (Expense)".

***Share-Based Payment Arrangements***

The Company has accounted for stock-based compensation arrangements in accordance with Accounting Standards Codification subtopic 718-10, Compensation ("ASC 718"). This guidance addresses all forms of share-based payment awards including shares issued under employee stock purchase plans, stock options, restricted stock and stock appreciation rights, as well as share grants and other awards issued to employees and non-employees under free-standing arrangements. These awards are recorded at costs that are measured at fair value on the awards' grant dates, based on the estimated number of awards that are expected to vest and will result in charges to operations.

***Segment Reporting***

The Company follows the provisions of ASC 280-10 *Segment Reporting.* This standard requires that companies disclose operating segments based on the manner in which management disaggregates the Company in making internal operating decisions. The only continuing operation is that of Holdings, and the Company only operates in one segment – oil and gas production.

***Derivative Financial Instruments***

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. Management evaluates all of the Company's financial instruments, including warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. The Company generally uses a Black-Scholes model, as applicable, to value the derivative instruments at inception and subsequent valuation dates when needed. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-measured at the end of each reporting period. The Black-Scholes model is used to estimate the fair value of the derivative liabilities.

***Earnings (Loss) Per Share of Common Stock***

Basic net income (loss) per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share ("EPS") include additional dilution from common stock equivalents, such as stock issuable pursuant to the exercise of stock options and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be anti-dilutive for periods presented, so only basic weighted average number of common shares are used in the computations.

***Correction of Immaterial Misstatement***

During the quarter ended September 30, 2022, the Company in their previously issued condensed consolidated financial statements classified $2,100,374 of goodwill in additional paid in capital upon the July 25, 2022 share exchange between Holdings and Fortium Holdings Corp. The goodwill was the result of the Holdings reporting unit from the previous parent of Holdings, Ecoark.

During the quarter ended December 31, 2022, the Company became aware of the reclassification and has adjusted both goodwill and additional paid in capital by $2,100,374. The Company has determined that there is no impairment on this goodwill as of December 31, 2022 or September 30, 2022.

In addition, during the quarter ended December 31, 2022, the Company became aware of an adjustment to correct an error in our previously issued financial statements regarding the reclassification of previous intercompany advances from Ecoark Holdings, Inc. (the former parent of White River Holdings Corp) to additional paid in capital in the amount of $28,953,510 effective with the issuance of the 1,200 Series A issued to Ecoark Holdings, Inc. in the reverse merger.

Based on an analysis of ASC 250 "Accounting Changes and Error Corrections", Staff Accounting Bulletin 99 "Materiality" and Staff Accounting Bulletin 108 "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements", we have determined that these errors were immaterial to the previously issued consolidated financial statements for the six months ended September 30, 2022.

The errors had no impact on the consolidated statements of operations, earnings (loss) per share or cash flows for either of the periods presented.

***Recently Issued Accounting Pronouncements***

In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40), Accounting for Convertible Instruments and Contract's in an Entity's Own Equity. The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU simplifies the diluted net income per share calculation in certain areas.

The ASU is effective for annual and interim periods beginning after December 31, 2021, and early adoption is permitted for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company does not believe this new guidance will have a material impact on its consolidated financial statements.

In May 2021, the Financial Accounting Standards Board ("FASB") issued ASU 2021-04 "Earnings Per Share (Topic 260), Debt—Modifications and Extinguishments (Subtopic 470-50), Compensation— Stock Compensation (Topic 718), and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815- 40) Issuer's Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options" which clarifies and reduces diversity in an issuer's accounting for modifications or exchanges of freestanding equity-classified written call options (for example, warrants) that remain equity classified after modification or exchange. An entity should measure the effect of a modification or an exchange of a freestanding equity-classified written call option that remains equity classified after modification or exchange as follows: i) for a modification or an exchange that is a part of or directly related to a modification or an exchange of an existing debt instrument or line-of-credit or revolving-debt arrangements (hereinafter, referred to as a "debt" or "debt instrument"), as the difference between the fair value of the modified or exchanged written call option and the fair value of that written call option immediately before it is modified or exchanged; ii) for all other modifications or exchanges, as the excess, if any, of the fair value of the modified or exchanged written call option over the fair value of that written call option immediately before it is modified or exchanged.

The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. An entity should apply the amendments prospectively to modifications or exchanges occurring on or after the effective date of the amendments. The Company does not believe this new guidance will have a material impact on its consolidated financial statements.

The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

***Liquidity***

With the acquisition of Holdings, their former parent, Ecoark contributed $3,000,000 into the Company as part of the purchase. In addition, the Company raised capital through a private investment in public equity (PIPE) and raised approximately $4,800,000 from this PIPE offering, together with $4,214,762 received from Participation Agreements to provide the funds necessary for the Company's drilling program. The Company also began receiving drilling capital from the White River Fund during the quarter ended December 31, 2022 and launched the White River Drilling Club in January 2023 from both of which the Company is receiving a 25% promoted working interest on successfully completed oil and gas production wells. The Company has determined that there is substantial doubt about their ability to continue as a going concern.

The accompanying financial statements for the period ended December 31, 2022 have been prepared assuming the Company will continue as a going concern, but the ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it establishes a revenue stream and becomes profitable. Management's plans to continue as a going concern include raising additional capital through sales of equity securities and borrowing. However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. If the Company is not able to obtain the necessary additional financing on a timely basis, the Company will be required to delay, and reduce the scope of the Company's development and operations. Continuing as a going concern is dependent upon its ability to successfully secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Impact of COVID-19

COVID-19 has previously had a profound effect on the U.S. and global economy and may continue to affect the economy and the industries in which we operate, depending on the vaccine and booster rollouts and the emergence of virus mutations.

COVID-19 did not have a material effect on the Consolidated Statements of Operations or the Consolidated Balance Sheets for the nine months ended December 31, 2022.

COVID-19 has also contributed to the supply chain disruptions which have not yet had a material effect for the Company. The Company will continue to monitor the supply chain shortages affecting its business.

The extent to which COVID-19 may impact the Company's results will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning the severity of the virus and the actions to contain its impact.

**NOTE 2: MERGER**

The acquisition of Holdings was considered a reverse merger. In accordance with ASC 805-40-45-1, the consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent (White River Energy Corp) but described in the notes to the financial statements as a continuation of the financial statements of the legal subsidiary (Holdings), with one adjustment, which is to retroactively adjust the accounting acquirer's legal capital to reflect the legal capital of the accounting acquiree (White River Energy Corp). That adjustment is required to reflect the capital of the legal parent. Comparative information presented in the consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent.

Under ASC 805-40-45-2, the consolidated financial statements represent the continuation of the legal subsidiary except for the capital structure, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 assets and liabilities of the legal subsidiary recognized and measured at their pre-combination carrying amounts;

(b) The
 assets and liabilities of the legal parent recognized and measured in accordance with the guidance in this topic applicable to business
 combinations (ASC 805);

(c) The
 retained earnings and other equity balances of the legal subsidiary before the business combination;

(d) The
 amount recognized as issued equity interests in the consolidated financial statements determined by adding the issued equity interest
 of the legal subsidiary outstanding immediately before the business combination to the fair value of the legal parent determined
 in accordance with the guidance in ASC 805 applicable to business combinations. However, the equity structure reflects the equity
 structure of the legal parent, including the equity interests the legal parent issued to effect the combination. Accordingly, the
 equity structure of the legal subsidiary is restated using the exchange ratio established in the acquisition agreement to reflect
 the number of shares of the legal parent issued in the reverse acquisition.

Fortium Holdings Corp. issued Ecoark 1,200 shares of Series A in the share exchange transaction. On an as converted basis, the 1,200 Series A shares convert to 42,253,521 shares of common stock which represents approximately 80% of the total issued and outstanding shares on a fully diluted basis.

On July 25, 2022, the Company completed the share exchange transaction with Holdings. As a result of this transaction, which is accounted for as a share exchange, Holdings is a wholly owned subsidiary of the Company (the "Merger"). In accordance with the terms of the Merger, at the effective time of the Merger, the outstanding shares of the common stock of Holdings were exchanged for the 1,200 shares of Series A of the Company. This exchange of shares and the resulting controlling ownership of the Company constitutes a reverse acquisition resulting in a recapitalization of Holdings and purchase accounting being applied to the non-controlling interest acquired from Fortium Holdings Corp. under ASC 805 due to Holdings being the accounting acquirer and Fortium Holdings Corp., being deemed an acquired business as they were not a shell corporation. This requires financial reporting from the Merger close date forward to reflect only the historic consolidated results of Holdings and to include the consolidated results for the Company and subsidiaries from July 25, 2022 forward.

The previously existing businesses of the Company at the time of the Merger, consisting of Norr and Elysian, were sold within 60 days of the Merger taking place.

The estimated allocation of the purchase price of the assets acquired and liabilities assumed for the acquisition by Holdings of Fortium Holdings Corp. via the reverse acquisition are set forth below in accordance with the guidance under ASC 805:

---

| | |
|:---|:---|
| **Purchase Price Allocation of Fortium Holdings Corp.** |  |
| Current assets – inventory and deposits | $113472 |
| Accounts payable and accrued expenses | (67315) |
| Goodwill | 5917843 |
| Purchase price | $5964000 |

---

This allocation is based on management's estimated fair value of the Fortium Holdings Corp assets and liabilities as of July 25, 2022 utilizing the guidance in ASC 820-10-35 which included the measurement based on a known level one input regarding the applicable share price as well as the level of activity in the Company and the fact that the value was driven off of a business no longer included in the Company's current operations. Fortium Holdings Corp. assets were derived from a total value of $5,964,000, based on 8,400,000 shares of common stock outstanding on July 25, 2022 and the closing price that day of $0.71 per share. The Company impaired the goodwill effective with the Merger on July 25, 2022, as they had decided at that time to sell the Norr and Elysian businesses, although the sales were effected later in September 2022. The Company sold these two entities for a total of $4 in September 2022. The loss on the sale is reflected as a loss on disposal in the condensed consolidated statements of operations.

The following pro forma balance sheet reflects the details of the March 31, 2022 consolidated balance sheet as presented in the Company's financial statements as a result of the share exchange.

**PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS**

**MARCH 31, 2022**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Historical**<br> **Fortium** <br>**Holdings**<br>**Corp** | **White River**<br>**Holdings**<br>**Corp** | **Other**<br>**Transaction**<br>**Adjustments** | **Other**<br>**Transaction**<br>**Adjustments** |<br>**Pro Forma** |
|  |  |  | **(1)** | **(2)** |  |
| **ASSETS** |  |  |  |  |  |
| CURRENT ASSETS |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $140241 | $251050 | $- | $(140241) | $251050 |
| &nbsp;&nbsp;&nbsp;Accounts receivable |  | 634483 |  |  | 634483 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets | 71756 | 318771 |  | (71756) | 318771 |
| &nbsp;&nbsp;&nbsp;Inventory |  | 107026 |  |  | 107026 |
| &nbsp;&nbsp;&nbsp;Current assets held for sale | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 211997 | 1311330 | - | (211997) | 1311330 |
| NON-CURRENT ASSETS |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 1466 | 596464 |  | (1466) | 596464 |
| &nbsp;&nbsp;&nbsp;Capitalized drilling costs |  | 604574 |  |  | 604574 |
| &nbsp;&nbsp;&nbsp;Oil and gas reserves |  | 6626793 |  |  | 6626793 |
| &nbsp;&nbsp;&nbsp;Right of use asset - operating leases |  | 243494 |  |  | 243494 |
| &nbsp;&nbsp;&nbsp;Other assets |  | 14760 |  |  | 14760 |
| &nbsp;&nbsp;&nbsp;Goodwill | - | 2100374 | - | - | 2100374 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 1466 | 10186459 | - | (1466) | 10186459 |
| TOTAL ASSETS | $213463 | $11497789 | $- | $(213463) | $11497789 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |  |  |
| CURRENT LIABILITIES |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $23500 | $918700 | $- | $(23500) | $918700 |
| &nbsp;&nbsp;&nbsp;Current portion of lease liability - operating leases |  | 155263 |  |  | 155263 |
| &nbsp;&nbsp;&nbsp;Cash overdraft |  | 27918 |  |  | 27918 |
| &nbsp;&nbsp;&nbsp;Due to Ecoark Holdings, Inc. | - | - | - | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 23500 | 1101881 |  | (23500) | 1101881 |
| NON-CURRENT LIABILITIES |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Asset retirement obligation |  | 1303751 |  |  | 1303751 |
| &nbsp;&nbsp;&nbsp;Lease liability - operating leases, net of current portion | - | 110235 |  | - | 110235 |
|  |  | 1413986 |  |  | 1413986 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 23500 | 2515867 | - | (23500) | 2515867 |
| STOCKHOLDERS' EQUITY (DEFICIT) |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value | 1 |  |  |  | 1 |
| &nbsp;&nbsp;&nbsp;Common stock, $0.0001 par value |  | 60 | (60) |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 4317618 | 25660837 | (4127596) | (189963) | 25660896 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (4126539) | (16678975) | 4126539 | - | (16678975) |
| &nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) before non-controlling interest | 191080 | 8981922 | (1117) | (189963) | 8981922 |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | (1117) | - | 1117 | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | 189963 | 8981922 | - | (189963) | 8981922 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $213463 | $11497789 | $- | $(213463) | $11497789 |

---

---

| | | |
|:---|:---|:---|
| **Adjustments:** | **(1)** | To reflect the retained earnings and other equity balances of Holdings, pre-combination with Fortium Holdings Corp. |
|  | **(2)** | To reclassify assets sold of Norr/Elysian in September 2022 |

---

The consolidated statements of operations and cash flows represent the operations of Holdings for the nine months ended December 31, 2022 and 2021 include cost allocations from Holdings' former parent Ecoark as discussed below.

***Cost Allocations***

The consolidated financial statements of Holdings have been prepared in connection with the expected separation and have been derived from the consolidated financial statements and accounting records of Ecoark operated on a standalone basis during the periods presented and were prepared in accordance with accounting principles generally accepted in the United States of America.

The consolidated financial statements reflect allocations of certain Ecoark corporate, infrastructure and shared services expenses, including centralized research, legal, human resources, payroll, finance and accounting, employee benefits, real estate, insurance, information technology, telecommunications, treasury, and other income and expenses for interest expense on debt that portions were used for Holdings, changes in derivative liabilities on the books of Ecoark for Warrants granted in offerings of which proceeds went towards the operations of Holdings, and conversions of debt. As noted, the derivative liabilities are included in Ecoark's books however, the advances made by Ecoark related to the proceeds received that were recognized as a derivative liability are included in the March 31, 2022 balance sheet as "Due to Ecoark Holdings, Inc." which was reclassified to additional paid in capital. Where possible, these charges were allocated based on direct usage, with the remainder allocated on a pro rata basis of headcount, asset, or other allocation methodologies that are considered to be a reasonable reflection of the utilization of services provided or the benefit received by the Company during the periods presented pursuant to SAB Topic 1.B.1. The allocations may not, however, reflect the expense the Company would have incurred as a standalone company for the periods presented. These costs also may not be indicative of the expenses that the Company will incur in the future or would have incurred if the Company had obtained these services from a third party.

Management believes the assumptions underlying our financial statements, including the assumptions regarding the allocation of general corporate expenses from the former parent company are reasonable. Nevertheless, our financial statements may not include all of the actual expenses and income that would have been incurred had we operated as a standalone company during the periods presented and may not reflect our results of operations, financial position and cash flows had we operated as a standalone company during the periods presented.

Actual costs that would have been incurred if we had operated as a standalone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas, including information technology and infrastructure.

**NOTE 3: REVENUE**

The Company accounts for revenue in accordance with ASC Topic 606, *Revenue from Contracts with Custo*mers, which the Company adopted effective January 1, 2019. No cumulative adjustment to members equity was required, and the adoption did not have a material impact on our financial statements, as no material arrangements prior to the adoption were impacted by the new pronouncement.

In continuing operations, the Company only recognizes revenue from one source, oil and gas production and services, with the exception of $4,363 recognized in management fee revenue in 2022 for the management of the White River E&P I, LP.

The Company may, from time to time, do contract drilling of oil wells for other energy companies and that services revenue would be categorized as Other Revenue within continuing operations. The Company may, from time to time, sell off working interests in drilling projects on its own oil and gas mineral leases, and that revenue would be categorized within "Other Income (Expense)". Included in deferred revenue as of December 31, 2022 are proceeds received from White River E&P I, LP for working interests on two wells. As noted in Note 16 "Commitments", the Company has made the commitment to purchase all outstanding working interests from the Fund at the end of the five-year term on June 30, 2028, to close out the Fund and offer a mechanism to return capital to investors in the Fund. The Company has formally committed to purchasing these working interests at a PV20 valuation by an independent firm. Since drilling on these two wells has not been completed as of December 31, 2022, no estimate can be provided for the valuation. The Company has reflected these amounts as deferred liabilities pending this valuation.

There were no significant contract asset or contract liability balances for all periods presented. The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which we recognize revenue at the amount to which we have the right to invoice for services performed.

Collections of the amounts billed are typically paid by the customers within 30 to 60 days.

**NOTE 4: INVENTORIES**

Holdings' inventory as of December 31, 2022 and March 31, 2022 of $103,324 and $107,026, respectively, consisted of crude oil of approximately 4,135 and 4,935 barrels of unsold crude oil, respectively, using the lower of cost (LIFO) or net realizable value.

**NOTE 5: PROPERTY AND EQUIPMENT**

Property and equipment consisted of the following as of December 31, 2022 and March 31, 2022:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **March 31, 2022** |
|  | (unaudited) |  |
| Land | $140000 | $140000 |
| Buildings (39years) | 236000 | 236000 |
| Machinery and equipment (3to 10years) | 2962259 | 278116 |
| Total property and equipment | 3338259 | 654116 |
| Accumulated depreciation and impairment | (181267) | (57652) |
| Property and equipment, net | $3156992 | $596464 |

---

As of December 31, 2022, the Company performed an evaluation of the recoverability of these long-lived assets.

Depreciation expense for the nine months ended December 31, 2022 and 2021 was $123,615 and $24,754, respectively. Depreciation does not include items in fixed assets that are not in service. The Company purchased two additional drilling rigs during the quarter-ended December 31, 2022 which resulted in the majority of the increase in machinery and equipment.

**NOTE 6: CAPITALIZED DRILLING COSTS AND OIL AND GAS PROPERTIES**

As noted, under Rule 4-10 (c)(2) of Regulation S-X, the Company uses the full cost method of accounting for its investment in oil and natural gas properties. Under the full cost method of accounting, all costs associated with acquisition, exploration and development of oil and gas reserves, including directly related overhead costs are capitalized. General and administrative costs related to production and general overhead are expensed as incurred.

All capitalized costs of oil and gas properties, including the estimated future costs to develop proved reserves, are amortized on the unit of production method using estimates of proved reserves. Under Rule 6(i) of Regulation S-X, disposition of oil and gas properties are accounted for as a reduction of capitalized costs, with no gain or loss recognized unless such adjustment would significantly alter the relationship between capitalized costs and proved reserves of oil and gas, in which case the gain or loss is recognized in operations. Unproved properties and development projects are not amortized until proved reserves associated with the projects can be determined or until impairment occurs. If the results of an assessment indicate that the properties are impaired, the amount of the loss from operations before income taxes and the adjusted carrying amount of the unproved properties is amortized on the unit-of-production method.

Capitalized Drilling Costs

In January 2021, the Company commenced a drilling program on their Deshotel 24H well included in their proved reserves. Depletion expense for the nine months ended December 31, 2022 and 2021 for the capitalized drilling costs was $122,838 and $510,196, respectively. The Company capitalized $214,197 in drilling costs related to the Peabody 12A #18 well in the three months ended December 31, 2022. As of December 31, 2022, the capitalized drilling costs were $494,408.

Oil and Gas Properties

Activity in the current year consist of the following:

For the nine months ended December 31, 2022, the Company received proceeds of $999,999 whereby they recognized $405,052 in gains on the assignments of wells of $1,078,104 that contained plugging liabilities of $684,679. There was a percentage of the Deshotel 24H well in the assignment that resulted in a reduction of the capitalized drilling costs of $201,525 in this transaction.

On October 6, 2022, the Company assigned 10% of their working interest in the Harry O'Neal 20-9 well to two related parties, pursuant to the vesting of various performance conditions in the employment contracts of Mr. Randy May and Mr. Jay Puchir. There were no recognized reserves booked for this well.

On October 10, 2022, the Company entered into a settlement agreement with a Harry O'Neal working interest owner whereby they granted them a 50% working interest in the Harry O'Neal 20-9 well in exchange for a full release of claims from all prior investments. There were no recognized reserves booked for this well.

The following table summarizes the Company's oil and gas activities by classification for the periods ended December 31, 2022 and 2021.

---

| | | | |
|:---|:---|:---|:---|
| **Activity Category** | **March 31, 2022** | **Adjustments (1)** | **December 31, 2022** |
| Proved Developed Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $4915968 | $(2231401) | $2684567 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation, depletion and amortization | (3225527) | 991724 | (2233803) |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $1690441 | $(1239677) | $450764 |
| Undeveloped and Non-Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $4936352 | $(28266) | $4908086 |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $4936352 | $(28266) | $4908086 |
| Grand Total | $6626793 | $(1267944) | $5358850 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Activity Category** | **March 31, 2021** | **Adjustments (1)** | **December 31, 2021** |
| Proved Developed Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $7223379 | $- | $7223379 |
| &nbsp;&nbsp;&nbsp;Accumulated depreciation, depletion and amortization | (739037) | (928604) | (1667641) |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $6484342 | $(928604) | $5555738 |
| Undeveloped and Non-Producing Oil and Gas Properties |  |  |  |
| &nbsp;&nbsp;&nbsp;Cost | $5868137 | $303500 | $6171637 |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - | - |
| Total | $5868137 | $303500 | $6171637 |
| Grand Total | $12352479 | $(625104) | $11727375 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Relates
 to dispositions of reserves, and depletion expenses.

**NOTE 7: ASSET RETIREMENT OBLIGATIONS**

In conjunction with the approval permitting the Company to resume drilling in the existing fields, the Company has recorded an asset retirement obligation ("ARO") based upon the plan submitted in connection with the permit. The ARO results from the Company's responsibility to abandon and reclaim their net share of all working interest properties and facilities. The Company disposed of $684,679 in ARO for sales of leases during the nine months ended December 31, 2022, and $22,545 in the nine months ended December 31, 2021. Amounts reflected in the statements of operations are net of any oil and gas reserves being sold with the plugging liabilities.

The following table summarizes activity in the Company's ARO for the nine months ended December 31, 2022 and the nine months ended December 31, 2021:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
|  | (unaudited) | (unaudited) |
| Balance, beginning of period | $1303751 | $1531589 |
| &nbsp;&nbsp;&nbsp;Accretion expense | 52063 | 117715 |
| &nbsp;&nbsp;&nbsp;Reclamation obligations settled |  |  |
| &nbsp;&nbsp;&nbsp;Disposition due to sale of property | (684679) | (22545) |
| &nbsp;&nbsp;&nbsp;Additions |  |  |
| &nbsp;&nbsp;&nbsp;Changes in estimates | - | - |
| Balance, end of period | $671135 | $1626759 |

---

Total ARO at December 31, 2022 and December 31, 2021 shown in the table above consists of amounts for future plugging and abandonment liabilities on our wellbores and facilities based on third-party estimates of such costs, adjusted for inflation for the periods ended December 31, 2022 and December 31, 2021, respectively. These values are discounted to present value at 10% per annum for the periods ended December 31, 2022 and December 31, 2021.

**NOTE 8: NOTES PAYABLE - RELATED PARTIES**

The Company borrowed $512,000 from related parties that were repaid within a few weeks in the nine months ended December 31, 2022.

**NOTE 9: LONG-TERM DEBT**

Long-term debt consisted of the following as of December 31, 2022 and March 31, 2022.

SCHEDULE OF LONG-TERM DEBT

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **March 31, 2022** |
|  | (unaudited) |  |
| Truck loan – Amur Capital <sup>(a)</sup> | $76057 | $&nbsp;&nbsp;&nbsp;&nbsp; - |
| Truck loan – Mitsubishi <sup>(b)</sup> | 49120 |  |
| Tractor loan – Simmons Bank<sup>(d)</sup> | 47659 |  |
| Loan – Amur Capital<sup>(e)</sup> | 36635 | - |
| Total long-term debt | 209471 |  |
| Less: current portion | (65518) | - |
| Long-term debt, net of current portion | $143953 | $- |

---

(a) On
 May 13, 2022, entered into long-term secured note payable for $87,964 for two service
 trucks maturing April
 13, 2026 . The note
 is secured by the collateral purchased and accrued interest annually at 11.99 %
 with principal and interest payments due monthly .
 There is no accrued interest
 as of December 31, 2022.

(b) On
 June 21, 2022, entered into long-term secured note payable for $61,973 for a service truck
 maturing December
 21, 2024 . The note
 is secured by the collateral purchased and accrued interest annually at 11.99 %
 with principal and interest payments due monthly .
 There is no accrued interest
 as of December 31, 2022.

(c) On
 October 13, 2022, White River Operating LLC, an indirect subsidiary of the Company, issued
 a secured promissory note payable for $1,500,000 ,
 which was used for two drilling rigs purchased (total value of $1,800,000 ,
 where the Company paid a total of $300,000).
 The note bears interest at the lesser of (i) the prime rate published in the "Bonds,
 Rates and Yields" section of The Wall Street Journal plus 7.50 %;
 and (ii) the maximum rate permitted by applicable law, and payments consist of interest and
 principal in the amount of $25,000 per
 month through October 13, 2025 when the remaining balance of principal and interest is due.
 Randy May and Jay Puchir personally guaranteed this note. Pursuant to a letter agreement
 dated December 2, 2022, the Company and the borrower agreed to terms of early repayment of
 this note. On December 6, 2022, the Company paid $1,540,065 to
 repay all principal and interest and fees in satisfaction of the note, which included a termination
 fee of $65,065 .
 This repayment was mandated by a subsequent lender. See Note 10.

(d) On
 October 11, 2022, entered into long-term secured note payable for $50,142 for a tractor maturing October
 11, 2025 . The note
 is secured by the collateral purchased and accrued interest annually at 7.99 %
 with principal and interest payments due monthly .
 There is no accrued interest
 as of December 31, 2022.

(e) On
 October 18, 2022, entered into long-term secured note payable for $37,599 for equipment maturing October
 18, 2027 . The note is secured by the
 collateral purchased and accrued interest annually at 11.99 %
 with principal and interest payments due monthly .
 There is no accrued interest as of December 31,
 2022.

The following is a list of maturities as of December 31:

SCHEDULE OF MATURITIES

---

| | |
|:---|:---|
| 2023 | $65518 |
| 2024.0 | 70735 |
| 2025.0 | 47757 |
| 2026.0 | 17549 |
| 2027.0 | 7912 |
|  | $209471 |

---

Interest expense on long-term debt during the nine months ended December 31, 2022 and 2021 are $10,841 and $0, respectively.

**NOTE 10: SENIOR SECURED CONVERTIBLE PROMISSORY NOTE**

Convertible Note Transaction

On December 20, 2022, the Company entered into a Securities Purchase Agreement ("SPA") with an accredited investor (the "Purchaser") whereby the Purchaser lent the Company an aggregate of $1,500,000 in gross proceeds and the Company issued the Purchaser a 10% Original Issue Discount Senior Secured Convertible Promissory Note in the principal amount of $1,666,666.67 (the "Note"). The proceeds are being used for working capital and growth capital.

Pursuant to the SPA, the Company, its direct and indirect subsidiaries, and Jay Puchir and Randy May, executive officers of the Company, entered into Guarantee Agreements (the "Guarantee") with the Purchaser pursuant to which each subsidiary and Messrs. Puchir and May personally guaranteed to the Purchaser the payment of the Note. In addition, Messrs. Puchir and May pledged the shares of the Company's common stock they hold or have the right to acquire in the anticipated distribution of the Company's common stock by Ecoark as collateral to secure the Company's obligations under the Note, and each individual also executed affidavits of confession to that effect. The affidavits of confession signed by Messrs. Puchir and May in connection with their Guarantees will permit the Purchaser to obtain a judgment against them personally upon the occurrence of an event of default without having to file a lawsuit.

The Note is due September 16, 2023. The Note bears interest at a rate of 12% per annum, payable monthly, subject to an increase to 18% per annum in case of an event of default as provided for therein. In addition, all overdue accrued and unpaid principal and interest is subject to a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law which if applicable accrues daily from the date such principal and interest is due.

The Note is convertible into shares of the Company's common stock at any time following the issuance date at the Purchaser's option at a conversion price equal to the lesser of (i) $1.00 per share and (ii) the average of the five-closing prices of the common stock immediately prior to the date of conversion, subject to certain adjustments (including based on the issuance of lower priced securities) and beneficial ownership limitations. Upon an event of default, the Purchaser may convert the Note at a reduced conversion price equal to 70% of the lowest closing price of the common stock for the 10 prior trading days.

Under the Note, beginning on April 16, 2023 the Company is required to pay monthly installments equal to one-fourth of the original principal amount at 120% of such principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note, with each payment resulting in a reduction in the principal of the Note at 100% (as compared to 120%). Furthermore, at any time after the issuance date of the Note, the Company may, after written notice to the Purchaser, prepay the Note in an amount equal to 120% of the then outstanding principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note. The Company will also be required to offer to pay the Note at 120% of the principal amount plus any unpaid accrued interest, upon the occurrence of certain events including (i) a change of control or sale of assets, (ii) a sale by the Company of equity or debt securities for gross proceeds to the Company of at least $5 million, and (iii) upon the maturity of the Note.

The Note is secured by the assets of the Company and its subsidiaries. The Note provides for certain events of default, including failure to pay amounts owing on the Note when due, failure to observe other covenants or obligations under the Note, default under any other indebtedness or material contract, a bankruptcy event with respect to the Company or a significant subsidiary, failure to maintain listing or quotation of the common stock on a trading market, failure to maintain the current public information requirement under Rule 144, and a judgment or similar process against the Company or any of its subsidiaries or assets in excess of $100,000. Upon an event of default, the Purchaser may cause the Note to become immediately due and payable and require the Company to pay 125% of the then outstanding principal amount, plus accrued but unpaid interest and any other amounts outstanding under the Note.

Further, pursuant to the Note the Company is subject to certain restrictive covenants, including covenants against incurring new indebtedness or liens on its assets, paying cash dividends or distributions on any equity securities, or entering into transactions with affiliates, subject to certain exceptions. In addition, under the Note the Company agreed to at all times reserve three times the number of shares of common stock into which the Note is convertible.

In addition, pursuant to the SPA, the Company entered into a Registration Rights Agreement with each Purchaser in which the Purchasers are entitled to "piggyback" registration rights, pursuant to which the Company has agreed to include the underlying shares of common stock from the conversion of the Note in a registration statement, if the Company files a registration statement for another purpose, subject to certain terms and conditions.

The conversion terms of the Note required the Company to bifurcate the conversion option from the host, and classify the conversion option as a derivative liability under ASC 815. The value of the derivative liability at inception was $923,956. The Company recognized a gain of the change in fair value of the derivative liability related to the Note of $9,582 for the period ended December 31, 2022. (see Note 11). The Company recorded an amortization of original issue discount of $6,525 for the nine months ended December 31, 2022. The Company recognized $6,027 in interest expense on this convertible Note for the nine months ended December 31, 2022, all of which is accrued for at December 31, 2022.

Consulting Agreement

On December 20, 2022, the Company entered into a Consulting Agreement with an affiliate of the Purchaser described above (the "Consultant"), pursuant to which the Company agreed to issue shares 1,666,667 shares of common stock, subject to upward adjustment to the extent the closing price per share of the Company's common stock is below $1.00 as of (i) the date a registration statement registering the resale by the Consultant of its shares of common stock is declared effective by the SEC (the "Effective Date"), and/or (ii) 90 days after the Effective Date. In such event, the number of shares will be increased to the quotient obtained by dividing $1,666,666.67 by the closing price of the common stock. The value of $1,666,667 was expensed as stock-based compensation under this agreement pursuant to ASC 505. The Company also agreed to indemnify the Consultant pursuant to indemnification provisions attached to the Consulting Agreement.

**NOTE 11: DERIVATIVE LIABILITIES**

The Company issued Units consisting of Series C preferred stock and Warrants in a PIPE financing (see Note 12) and a Note payable (see Note 10) in two transactions ("Derivative Instruments"). The Series C as well as the conversion option on the Note payable contained characteristics that required the Company to classify them as derivative liabilities. The Derivative Instruments have been accounted for utilizing ASC 815 *"Derivatives and Hedging."* The Company has incurred a liability for the estimated fair value of Derivative Instruments. The estimated fair value of the Derivative Instruments has been calculated using the Black-Scholes fair value option-pricing model with key input variables provided by management, as of the date of issuance, with changes in fair value recorded as gains or losses on revaluation in other income (expense).

The Company identified embedded features in some of the agreements which were classified as liabilities. These embedded features included a variable conversion price that would convert those instruments into a variable number of common shares. The accounting treatment of derivative financial instruments requires that the Company treat the instrument as liability and record the fair value of the instrument as derivatives as of the inception date of the instrument and to adjust the fair value of the instrument as of each subsequent balance sheet date.

As discussed in Note 10, the Company entered into a Note payable that the conversion option was classified as a derivative liability. In addition, as discussed in Note 12, the Company entered into a PIPE transaction whereby they issued Series C and Warrants, whereby the Series C may be converted into common stock at a variable conversion price that required the Company to classify the Series C as a derivative liability.

The Company determined the derivative liabilities to be a Level 3 fair value measurement and used the Black-Scholes pricing model to calculate the fair value as of December 31, 2022. The Black-Scholes model requires six basic data inputs: the exercise or strike price, time to expiration, the risk-free interest rate, the current stock price, the estimated volatility of the stock price in the future, and the dividend rate.

Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each warrant is estimated using the Black-Scholes valuation model. The following assumptions were used on December 31, 2022, March 31, 2022 and at inception:

---

| | | | |
|:---|:---|:---|:---|
|  | **Nine<br> Months Ended<br> December 31,<br> 2022** | **Year Ended<br> March 31,<br> 2022** | **Inception** |
| Expected term | 0.70 – 0.75 years |  | 0.75 years |
| Expected volatility | 113 - 172% |  | 113% – 160 |
| Expected dividend yield |  |  |  |
| Risk-free interest rate | 4.64 – 4.73% |  | 4.64% |
| Market price | $0.40 – $1.43 |  |  |

---

The Company's remaining derivative liabilities as of December 31, 2022, March 31, 2022 and inception associated with the offerings are as follows.

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,<br> 2022<br> (unaudited)** | **March 31,<br> 2022** | **Inception** |
| Fair value of 190.2726308 shares of Series C Preferred Stock (see Note 12) | $2253621 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $3337025 |
| Fair value of Warrants issued in connection with Series C Preferred Stock (see Note 12) | 9185546 |  | 11544312 |
| Fair value of conversion option on convertible note payable (see Note 10) | 914374 | - | 923956 |
|  | $12353541 | $- |  |

---

Activity related to the derivative liabilities for the nine months ended December 31, 2022 is as follows:

---

| | |
|:---|:---|
| Beginning balance as of March 31, 2022 | $- |
| Issuances of Series C Preferred Stock and Warrants – derivative liabilities | 14881337 |
| Bifurcation of conversion option on convertible note payable | 923956 |
| Change in fair value of derivative liabilities | (3451752) |
| Ending balance as of December 31, 2022 | $12353541 |

---

The change in fair value of the derivative liability of $(3,451,752) includes $1,083,404 that was a change in the value of the preferred stock for the nine months ended December 31, 2022.

There were no derivative liabilities in the nine months ended December 31, 2021.

**NOTE 12: STOCKHOLDERS' EQUITY (DEFICIT)**

On September 28, 2022, increased its authorized capital to 505,000,000 shares consisting of 500,000,000 shares of common stock (from 200,000,000) and 5,000,000 shares of preferred stock. See Note 1.

The Company executed the Exchange Agreement on July 25, 2022 and pursuant to the Exchange Agreement that day acquired 100% of the outstanding shares of capital stock of Holdings from Ecoark, Holdings' sole stockholder. In exchange the Company issued Ecoark 1,200 shares of the newly designated Series A. See Note 1 under "Description of Business" for more details on the Series A.

The Series A has a stated value of $30 million and has a liquidation preference over the common stock and any subsequent series of junior preferred stock equal to the stated value, plus any accrued but unpaid dividends.

Pursuant to the Exchange Agreement Mr. Randy May, Ecoark's Chief Executive Officer, was appointed as Executive Chairman and as a director of the Company, and Mr. Jay Puchir, Ecoark's Chief Financial Officer, was appointed as Chief Executive Officer and Principal Financial Officer of the Company. Effective July 28, 2022, the number of directors of the Company was fixed at five, and Danny Hames, James Cahill, Greg Landis, and Alisa Horgan were appointed as directors. Alisa Horgan is the daughter of Randy May, and wife of Richard Horgan, who was the Company's Chief Executive Officer and sole director until after the closing of the Holding acquisition.

Ecoark has advised us that it plans to spin-off the common stock issuable upon conversion of the Series A, subject to the effectiveness of the Form S-1.

On July 29, 2022, the Company filed a Certificate of Designation with the Nevada Secretary of State designating a new series of preferred stock, the Series B. See Note 1 under "Description of Business" for more details on the Series B.

On October 25, 2022, the Company filed a Certificate of Designation of the Rights, Preferences and Limitations of Series C Convertible Preferred Stock (the "Series C Certificate of Designation") with the Nevada Secretary of State. The Series C Certificate of Designation provides for the issuance of up to 1,000 shares of Series C. See Note 1 under "Description of Business" and Note 11 "Derivative Liabilities" for more details on the Series C.

From July 25, 2022 through August 15, 2022, the Company entered into advisor agreements with directors, management and consultants pursuant to which the Company agreed to issue a total of 17,450,000 restricted shares of common stock at prices ranging from $0.71 to $1.25 per share (combined value of $12,604,500). These issuances represented 11,950,000 shares that are service-based grants ($8,699,500 value) and 5,500,000 shares that are performance-based grants ($3,905,000 value). The performance criteria are based on the average number of gross barrels of oil produced per day (BOPD) ranging from 1,000 to 5,000 BOPD. The service-based grants vest through July 31, 2032. None of the 17,450,000 restricted shares of common stock have been issued by the transfer agent as of November 30, 2022, and on November 15, 2022, 25,000 of these service-based shares were cancelled as the employee terminated their employment prior to any issuance or vesting of those shares. None of the shares have vested. On December 1, 2022, the remaining 17,425,000 restricted stock grants were cancelled. The Company then entered into new RSU agreements on December 1, 2022 with these individuals, that represented 5,500,000 performance-based RSUs valued at $5,005,000, and 11,925,000 service-based RSUs valued at $10,851,750. The performance-based grants are based on the average number of gross barrels of oil produced per day (BOPD) ranging from 1,000 to 5,000 BOPD; and the service-based grants vest through November 30, 2032. The Company has expensed $1,727,404 in stock-based compensation through December 31, 2022 related to these grants.

*<u>Stock Options</u>*

The Company's Board of Directors approved the adoption of the 2016 Stock-Based Compensation Plan (the "2016 Plan") on May 12, 2016.

There have been no stock options granted since 2018.

The Company determined the value of share-based compensation using the Black-Scholes fair value option-pricing model using the following weighted average assumptions for options granted during the former year ended December 31, 2018. All options stand completely vested.

---

| | |
|:---|:---|
|  | Date of<br> Grant |
| Expected term (years) | 10 |
| Expected volatility | 283% |
| Risk-free interest rate | 2.55% |
| Dividend yield | 0% |

---

As summary of option activity under the 2016 Plan as of December 31, 2022, and March 31, 2022 and changes during the periods then ended are presented below:

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted<br> Average<br> Exercise<br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Term** |
| Balance outstanding at March 31, 2021 | 60421 | $5.20 | 6.77 |
| &nbsp;&nbsp;&nbsp;Granted |  |  |  |
| &nbsp;&nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited |  |  |  |
| &nbsp;&nbsp;&nbsp;Expired |  |  |  |
| &nbsp;&nbsp;&nbsp;Cancelled | - | - | - |
| Balance outstanding at March 31, 2022 | 60421 | $5.20 | 5.77 |
| Exercisable at March 31, 2022 | 60421 | $5.20 | 5.77 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Number of<br> Options** | **Weighted<br> Average<br> Exercise <br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Term** |
| Balance outstanding at March 31, 2022 | 60421 | $5.20 | 5.77 |
| &nbsp;&nbsp;&nbsp;Granted |  |  |  |
| &nbsp;&nbsp;&nbsp;Exercised |  |  |  |
| &nbsp;&nbsp;&nbsp;Forfeited |  |  |  |
| &nbsp;&nbsp;&nbsp;Expired |  |  |  |
| &nbsp;&nbsp;&nbsp;Cancelled | - | - | - |
| Balance outstanding at December 31, 2022 | 60421 | $5.20 | 5.02 |
| Exercisable at December 31, 2022 | 60421 | $5.20 | 5.02 |

---

*<u>Warrants</u>*

On August 10, 2017, the Company entered into a Securities Purchase Agreement with two investors to purchase from the Company 42,510 shares of the Company's common stock for an aggregate purchase price of $525,000. The investors received a warrant to purchase an additional 5,314 shares at an exercise price of $14.25 per share, and a warrant to purchase an additional 5,314 shares at an exercise price of $19.00 per share.

On July 21, 2021, the Company entered into a Consulting Agreement with a company controlled by its current Chief Executive Officer for a period of one year, expiring July 20, 2022 and issued it 1,400,000 warrants that have a term of five years and an exercise price of $0.01, which were issued to the related party on September 14, 2021. On September 14, 2021, 700,000 of these warrants were assigned to a third party and all 1,400,000 warrants were exercised for $14,000 immediately thereafter.

As discussed herein, the Company issued 9,513,682 Warrants in the Series C Offering. These Warrants have a five-year term and are exercisable according to the terms of the warrant agreements calculated at $0.69 for December 31, 2022.

The following table reflects Warrant activity:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Warrants** | **Shares** | **Weighted<br> Average<br> Exercise <br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Term** | **Aggregate <br> Intrinsic <br> Value** |
| Outstanding at March 31, 2021 | 10628 | $16.625 | 1.45 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| Granted |  |  |  |  |
| Exercised |  |  |  |  |
| Forfeited or expired | - | - | - | - |
| Outstanding at March 31, 2022 | 10628 | $16.625 | 0.45 | $- |
| Exercisable at March 31, 2022 | 10628 | $16.625 | 0.45 | $- |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Warrants** | **Shares** | **Weighted<br> Average<br> Exercise <br> Price** | **Weighted<br> Average<br> Remaining<br> Contractual<br> Term** | **Aggregate <br> Intrinsic <br> Value** |
| Outstanding at March 31, 2022 | 10628 | $16.625 | 0.45 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - |
| Granted | 9513682 | 0.69 | 4.80 |  |
| Exercised |  |  |  |  |
| Forfeited or expired | (10628) | (16.625) | (0.45) | - |
| Outstanding at December 31, 2022 | 9513682 | $0.69 | 4.80 | $- |
| Exercisable at December 31, 2022 | - | $- | - | $- |

---

The following assumptions were used for the nine months ended December 31, 2022 and year ended March 31, 2022:

---

| | | |
|:---|:---|:---|
|  | **Nine Months<br> Ended**<br> **December 31,**<br> **2022** | **Year Ended**<br> **March 31,<br> 2022** |
| Expected term | 5 years |  |
| Expected volatility | 113-172% | -% |
| Expected dividend yield |  |  |
| Risk-free interest rate | 3.99-4.35% | 0.10% |

---

**NOTE 13: LEASES**

The Company has adopted ASU No. 2016-02, *Leases (Topic 842)* and as such will account for their leases in terms of the right of use assets and offsetting lease liability obligations under this pronouncement. The Company had had only short-term leases up through this acquisition. The Company recorded these amounts at present value, in accordance with the standard, using discount rates ranging between 0% and 11.36%. The right of use asset is composed of the sum of all lease payments, at present value, and is amortized straight line over the life of the expected lease term. For the expected term of the lease the Company used the initial terms ranging between 36 and 39 months. Upon the election by the Company to extend the lease for additional years, that election will be treated as a lease modification and the lease will be reviewed for re-measurement.

The Company has chosen to implement this standard using the modified retrospective model approach with a cumulative-effect adjustment, which does not require the Company to adjust the comparative periods presented when transitioning to the new guidance. The Company has also elected to utilize the transition related practical expedients permitted by the new standard. The modified retrospective approach provides a method for recording existing leases at adoption and in comparative periods that approximates the results of a modified retrospective approach. Adoption of the new standard did not result in an adjustment to retained earnings for the Company.

The Company's portfolio of leases contains operating and financing leases. As of December 31, 2022, the value of the unamortized lease right of use asset was $320,922 ($184,532 in financing leases and $136,390 in operating leases) (through maturity at November 2026). As of December 31, 2022, the Company's lease liability was $302,225 ($152,570 in financing leases and $149,655 in operating leases) (through maturity at November 2026).

SCHEDULE OF MATURITY OF OPERATING LEASE LIABILITY

---

| | |
|:---|:---|
| Maturity of lease liability for the operating leases for the period ended December 31, |  |
| 2023 | $146432 |
| 2024 | $4319 |
| Imputed interest | $(1096) |
| Total lease liability | $149655 |

---

---

| | |
|:---|:---|
| Disclosed as: |  |
| Current portion | $145476 |
| Non-current portion | $4179 |

---

---

| | |
|:---|:---|
| Maturity of lease liability for the financing leases for the period ended December 31, |  |
| 2023 | $55427 |
| 2024 | $55427 |
| 2025 | $55427 |
| 2026 | $50808 |
| Imputed interest | $(64519) |
| Total lease liability | $152570 |

---

---

| | |
|:---|:---|
| Disclosed as: |  |
| Current portion | $29020 |
| Non-current portion | $123550 |

---

---

| | |
|:---|:---|
| Amortization of the right of use asset for the period ended December 31, |  |
| 2023 | $169392 |
| 2024 | $47345 |
| 2025 | $50387 |
| 2026 | $53798 |
| Total | $320922 |

---

**Total Lease Cost**

Individual components of the total lease cost incurred by the Company is as follows:

SCHEDULE OF TOTAL LEASE COST

---

| | | |
|:---|:---|:---|
|  | **Nine months<br> ended<br> December 31,<br> 2022** | **Nine months<br> ended<br> December 31,<br> 2021** |
|  | (unaudited) | (unaudited) |
| **Operating lease expense** | $108366 | $106206 |
| **Financing lease expense** |  |  |
| Depreciation of capitalized finance lease assets | 5173 |  |
| Interest expense on finance lease liabilities | 5425 | - |
|  | $118964 | $106206 |

---

**NOTE 14: RELATED PARTY TRANSACTIONS**

On September 1, 2022, the Company assigned 10% working interests in a well to two related parties that are controlled by officers of the Company (Sky3D and Atikin) pursuant to the vesting of various performance conditions in the employment contracts of Randy May and Jay Puchir. In addition, two entities related to directors are working interest owners in wells the Company operates. As of December 31, 2022 and March 31, 2022, the Company is owed $620,603 and $56,269, respectively from these entities for their portion of the production expenses over the revenues received. These amounts are monitored closely and fluctuate each month. In January 2023, the Company received a progress payment of $239,425.

The May Family Foundation controls 15.77% of the outstanding common stock of the Company as of December 31, 2022. Additionally, Atikin, an entity which is controlled by Jay Puchir, our Chief Executive Officer, controls 6.9% of the outstanding common stock. Alisa Horgan, the daughter of Randy May, our new Executive Chairman, became a director and officer of the Company following the Holdings acquisition. Her husband Richard Horgan was the Company's former Chief Executive Officer and director. Mr. May is the Chief Executive Officer of Ecoark. Each of Messrs. May, Horgan and Puchir disclaim beneficial ownership of the securities held by The May Family Foundation except to the extent of any pecuniary interest therein.

All amounts due to Ecoark were exchanged for the 1,200 shares of Series A and classified as a capital transaction with the adjustment to additional paid in capital as they were from a related party. The historical cost basis as of the date of the merger with White River Holdings was $12,144,795. This basis included amounts reclassified to additional paid in capital of $28,953,510 which were deemed to be permanently contributed by Ecoark Holdings, Inc., effective with the issuance of the 1,200 Series A. The Series A shares are reflected in the Company's historical financial statements in place of the equity instruments held by Ecoark Holdings, Inc. on a historical cost basis. There was no impact on the condensed consolidated statements of operations.

**NOTE 15: FAIR VALUE MEASUREMENTS**

The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by U.S. generally accepted accounting principles. The fair value hierarchy has three levels, which are based on reliable available inputs of observable data. The hierarchy requires the use of observable market data when available. The three-level hierarchy is defined as follows:

Level 1 – quoted prices for identical instruments in active markets;

Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which significant inputs and significant value drivers are observable in active markets; and

Level 3 – fair value measurements derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Financial instruments consist principally of cash, investments, accounts receivable and other receivables, accounts payable and accrued liabilities, notes payable, and amounts due to related parties. The fair value of cash is determined based on Level 1 inputs. There were no transfers into or out of "Level 3" during the nine months ended December 31, 2022, and the year ended March 31, 2022. The recorded values of all other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** | **Total Gains<br> and (Losses)** |
| December 31, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | $- | $- | $12353541 | $3451752 |
| March 31, 2022 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities | $- | $- | $- | $- |

---

The table below shows a reconciliation of the beginning and ending liabilities measured at fair value using significant unobservable inputs (Level 3):

---

| | |
|:---|:---|
|  | **December 31,<br> 2022**<br>**(unaudited)** |
| Beginning balance | $- |
| Net change in unrealized (depreciation) appreciation included in earnings | 3451752 |
| Classification of Series C Preferred stock and warrants | (14881337) |
| Bifurcation of convertible note payable | (923956) |
| Sales |  |
| Transfers in and out | - |
| Ending balance | $(12353541) |

---

**NOTE** **16: COMMITMENTS**

***Participation Agreements***

On October 9, 2020, White River SPV 3 LLC, entered into a Participation Agreement (the "Participation Agreement") by and among White River SPV 3 LLC, BlackBrush Oil & Gas, L.P. ("BlackBrush") and GeoTerre, LLC, an unrelated privately-held limited liability company (the "Assignor"), to conduct drilling of wells in the Austin Chalk formation.

Pursuant to the Participation Agreement, White River SPV 3 LLC funded 100% of the cost, $5,746,941, associated with the drilling and completion of an initial deep horizontal well in the Austin Chalk formation. The Participation Agreement required the drilling costs that were paid into a designated escrow account at the commencement of the drilling in January 2021, which it was. BlackBrush agreed to assign to the other parties to the Participation Agreement, subject to certain exceptions and limitations specified therein, specified portions of its leasehold working interest in certain Austin Chalk formation units. The Participation Agreement provides for an initial allocation of the working interests and net revenue interests among the assignor, BlackBrush and White River SPV 3 LLC and then a re-allocation upon payout or payment of drilling and completion costs for each well drilled. Prior to payout, Holdings will own 90% of the working interest and 67.5% of the net revenue interest in each well. Following payout, Holdings will own 70% of working interest and 52.5% net revenue interest in each well.

The Parties to the Participation Agreement, had previously entered into a Joint Operating Agreement, dated September 4, 2020 (the "Operating Agreement") establishing an area of mutual interest, including the Austin Chalk formation, and governing the parties' rights and obligations with respect to drilling, completion and operation of wells therein. The Participation Agreement and the Operating Agreement require, among other things, that White River SPV 3 LLC drill and complete at least one horizontal Austin Chalk well with a certain minimum lateral each calendar year and/or maintain leasehold by paying its proportionate share of any rental payments.

On July 27, 2022, the Company entered into a Participation Agreement with Ault Energy, LLC to sell a 40% working interest and 28.8% net revenue interest in the Harry O'Neal 20-9 No. 1 well for $971,609.

On November 22, 2022, the Company entered into two Participation Agreements with White River E&P I, LP (the "Fund"), a related party, whereby the parties agreed to the following: (i) under the first Agreement , the Fund agreed to pay the Company an initial amount of $1,408,000 for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi for (A) a 50% working interest and (B) a 32.5% net revenue interest in all such wells (the "Mississippi Agreement"); and (ii) under the second Agreement, the Fund agreed to pay the Company and initial amount of $1,597,632 for drilling one or more wells on the Company's mineral lease located in Concordia Parish, Louisiana in exchange for (A) a 37.5% working interest and (B) a 27% net revenue interest in all such wells (the "Louisiana Agreement"). In addition, under the Louisiana Agreement, in the event the test well on the lease is determined to be economically viable, the Fund agreed to pay the Company an additional $595,972.45 in costs to complete and produce the test well, while the Mississippi Agreement requires an additional $992,963.27 in costs to complete and produce the test well.

On December 6, 2022, the Company entered into a Participation Agreement with Ault Energy, LLC for $1,597,632 for drilling one or more wells on the Company's mineral lease located in Concordia Parish, Louisiana in exchange for (A) a 37.5% working interest and (B) a 27% net revenue interest in all such wells. In addition, in the event the test well on the lease is determined to be economically viable, Ault Energy, LLC agreed to pay the Company an additional $595,972.45 in costs to complete and produce the test well. This amount is reflected as a receivable as it has not yet been paid by Ault Energy, LLC.

On December 30, 2022, the Company entered into a Participation Agreements with the Fund, a related party, whereby the parties agreed to the following: (i) under the first Agreement, the Fund agreed to pay the Company an initial amount of $267,520 for drilling a well located in Rankin County, Mississippi for a 9.5% working interest and (B) a 6.18% net revenue interest in all such wells (the "Mississippi Agreement #2"). In the event the test well on the lease is determined to be economically viable, the Fund agreed to pay the Company an additional $188,663 in costs to complete and produce the test well.

***White River Fund***

The Fund is a five-year closed-end private fund where general partners and limited partners invest into the fund and the fund then purchases direct working interests in various Company oil and gas drilling projects. The Company has made the commitment to purchase all outstanding working interests from the Fund at the end of the five-year term on June 30, 2028, to close out the Fund and offer a mechanism to return capital to investors in the Fund. The Company has formally committed to purchasing these working interests at a PV20 valuation by an independent firm. The PV20 valuation would be the present value of the remaining net cash flows from the Fund's pro rata share of each oil well it has invested in during the five-year term, discounted by 20%. The Fund invested in two drilling projects in the Company during the three months ended December 31, 2022. The first drilling project, the Peabody AMI 12 No 18, hit oil and was determined by the Company's geologist to be an economically viable oil production well in January 2023. This oil well is expected to be completed and begin producing oil in February 2023. The second oil project, the Denmiss No 1 well is expected to be spudded in February 2023. Since the Fund did not own working interests in any oil production wells as of December 31, 2022, there would not be a value which could be easily estimated for the PV20 valuation of the first oil well.

***Employment Agreements and RSUs***

The Company's Board of Directors approved five-year executive employment agreements pursuant to which our officers are entitled to the following compensation and other rights:

Randy May, our Executive Chairman, is receiving an annual base salary of $400,000, and was granted 5,000,000 shares of restricted common stock (since cancelled on December 1, 2022 and replaced with 5,000,000 restricted stock units) with half of the Restricted Stock Units ("RSU") vesting annually over a five-year period and the remainder vesting based on performance metrics set forth in the agreement. Under his agreement, Mr. May was also granted the following rights related to the Company's oil and gas operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an overriding royalty interest or carried working interest to be held in perpetuity from either the Company or its subsidiaries equal to 5% in any and all successfully drilled and completed oil and/or gas wells (an "ORRI") during the term of his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a 15% participation right in the funding and ownership interest in any drilling or participation by the Company or any subsidiary in the drilling by the Company or a third party of an oil and gas well other than the Fund (a "Participation Right").

Jay Puchir, our Chief Executive Officer, is receiving an annual base salary of $350,000 and was granted 5,000,000 shares of restricted common stock (since cancelled on December 1, 2022 and was granted 5,000,000 RSU) with half of the RSUs vesting annually over a five-year period and the remainder vesting based on performance metrics set forth in the agreement. Under his agreement, Mr. Puchir was also granted the following rights related to the Company's oil and gas operations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) a 5% overriding royalty interest or carried working interest during the term of his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) a 10% Participation Right otherwise identical to Mr. May's.

Alisa Horgan, our Chief Administrative Officer and a member of our Board of Directors and Mr. May's daughter, is receiving an annual base salary of $180,000, and was granted 2,000,000 shares of restricted common stock (since cancelled on December 1, 2022 and was granted 5,000,000 RSUs) with the RSUs vesting annually over a 10-year period.

Mrs. Horgan's husband, Richard Horgan, Senior Vice President of M&A and our former Chief Executive Officer, is receiving an annual base salary of $200,000, and was granted 2,000,000 shares of restricted common stock (since cancelled on December 1, 2022 and was granted 5,000,000 RSUs) with the RSUs vesting annually over a 10-year period.

Each of the above employment agreements are also subject to the following severance provisions:

In the event of termination by the Company without "cause" or resignation by the officer for "good reason," each officer is entitled to receive 2.99 years' base salary, immediate vesting of unvested equity awards and continued benefits for six months.

In case of termination or adverse change in title upon a change of control, each officer is entitled to receive 2.99 years' base salary, immediate vesting of unvested equity awards, continued benefits for 18 months and 100% of the existing target bonus, if any, for that fiscal year when the change of control occurs.

Further, upon the officer's death or disability, as defined, during the officer's term of employment, the officer's estate or the officer, as applicable, becomes entitled to, among other things, a $500,000 lump-sum payment and full vesting of all outstanding equity grants made to the officer.

In the event an officer's employment is terminated at the end of the term upon the notice of non-renewal and the officer remains employed until the end of the term, the officer will be entitled to receive six months' base salary and continued benefits for six months.

In addition, the Company agreed to the following compensation for each non-employee director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an annual grant of $100,000 in restricted stock which will vest on the final business day of each quarter equal to one-fourth of the total stipend, or $25,000 per quarter, with the number of shares to be determined based on the volume weighted average price of the Company's common stock as of each quarterly vesting (the "Restricted Stock Grant").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) an annual cash fee of $50,000 which will vest on the final business day of each quarter equal to one-fourth of the total fee, or $12,500 per quarter (the "Cash Fees").

The director compensation set forth above is subject to upward adjustment upon the successful uplisting of the Company to a national securities exchange, whereupon the Restricted Stock Grant will be increased to $200,000 per year and the Cash Fees will be increased to $100,000 per year.

In addition, the Company agreed to enter into indemnification agreements with each of its officers and directors.

**NOTE 17: CONCENTRATIONS**

<u>Customer Concentration</u>. Three customers accounted for more than 10% of the accounts receivable balance at December 31, 2022 and March 31, 2022 for a total of 91% and 87% of accounts receivable, respectively. In addition, two and three customers represent approximately 43% and 96% of total revenues for the Company for the nine months ended December 31, 2022 and 2021, respectively.

<u>Supplier Concentration</u>. Certain of the raw materials, components and equipment used by the Company in the manufacture of its products are available from single-sourced vendors. Shortages could occur in these essential materials and components due to an interruption of supply or increased demand in the industry. If the Company were unable to procure certain materials, components or equipment at acceptable prices, it would be required to reduce its manufacturing operations, which could have a material adverse effect on its results of operations. In addition, the Company may make prepayments to certain suppliers or enter into minimum volume commitment agreements. Should these suppliers be unable to deliver on their obligations or experience financial difficulty, the Company may not be able to recover these prepayments.

The Company occasionally maintains cash balances in excess of the FDIC insured limit. The Company does not consider this risk to be material.

***<u>Commodity price risk</u>***

We are exposed to fluctuations in commodity prices for oil and natural gas. Commodity prices are affected by many factors, including but not limited to, supply and demand.

**NOTE 18: SECURED PROMISSORY NOTE**

On September 2, 2022, the Company issued a $200,000 Secured Promissory Note ("Promissory Note") to an unrelated third party. The term of the Promissory Note is one-year (September 2, 2023) and the Promissory Note bears interest at the rate of 12% per annum. Interest payments in the amount of $6,000 are to be paid quarterly on November 30, 2022, February 28, 2023, May 31, 2023 and August 31, 2023. The Promissory Note is secured by the full title and ownership of the current and future intellectual property and results associated with the Millbrook 3D Seismic project in Wilkinson County, MS which is currently being performed by ClearRock Geophysics LLC. The Company has recorded interest income of $8,000 on the Promissory Note as of December 31, 2022. On December 30, 2022, the Company was repaid the $200,000 Promissory Note and the remaining accrued interest income receivable.

**NOTE 19: DISCONTINUED OPERATIONS**

In September 2022, the Company sold both Norr and Elysian . See Note 1 under "Description of Business" for more details on the sale of Norr and Elysian.

The Company accounted for these sales as a disposal of the business under ASC 205-20-50-1(a) on September 20, 2022 and September 21, 2022 respectively at which time a loss was recognized. As a result of the Merger with Holdings, the current assets of $68,360 at March 31, 2022 for the pre-combination reporting entity is not reflected on the condensed consolidated balance sheet.

The Company reclassified the following operations to discontinued operations for the nine months ended December 31, 2022 and 2021, respectively.

SCHEDULE OF DISCONTINUED OPERATIONS

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Revenue | $212 | $&nbsp;&nbsp;&nbsp;&nbsp; - |
| Operating expenses | 86060 |  |
| Other (income) loss | - | - |
| Net loss from discontinued operations | $(85848) | $- |

---

The Company had no discontinued operations in the three months ended December 31, 2022 and 2021, respectively.

The following represents the calculation of the loss on disposal of Norr at September 20, 2022:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Proceeds from sale | $3 | $&nbsp;&nbsp;&nbsp;&nbsp;- |
| Cash | (3205) |  |
| Inventory | (40901) | - |
| Loss on disposal of discontinued operations | $(44103) | $- |

---

The following represents the calculation of the loss on disposal of Elysian at September 21, 2022:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Proceeds from sale | $1 | $&nbsp;&nbsp;&nbsp;&nbsp;- |
| Cash | (552) |  |
| Prepaid expenses | (100000) | - |
| Loss on disposal of discontinued operations | $(100551) | $- |

---

**NOTE 20: SUBSEQUENT EVENTS**

The following events occurred from January 1, 2023 up through the date of filing:

On January 10, 2023, the Company entered into three separate Participation Agreements with three investors via the White River Drilling Club, pursuant to which the parties agreed to the following: (i) each of the investors agreed to pay $50,000 for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi in exchange for (A) a 1.0412490% working interest and (B) a 0.7809370% net revenue interest in such wells.

On January 17, 2023 and January 18, 2023, the Company entered into two separate Participation Agreements with two investors via the White River Drilling Club, pursuant to which the parties agreed to the following: (i) the investors agreed to pay the Company a total of $150,000, with the proceeds to be used for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi in exchange for a total of three units, with each unit comprised of the following: (A) a 1.0412490% working interest and (B) a 0.7809370% net revenue interest in such wells.

Under each of the above-described Participation Agreements, the investors also agreed to participate in the drilling of the initial test well, and each party may also drill a substitute well if the test well is abandoned prior to reaching the agreed upon depth. Further, for any well drilled after the initial test well and substitute well referenced herein, the Investors agreed to the same cost sharing arrangements as provided for in the initial test well.

On January 23, 2023 the Company entered into a Membership Interest Purchase Agreement (the "MIPA") with an entity (the "Seller"), which Seller is the sole member of another entity (the "Broker"), pursuant to which the Company agreed to purchase from the Seller all membership interests in the Broker in exchange for (i) payment of $70,000 in cash, (ii) prepaid expenses incurred or to be incurred by the Broker not to exceed $30,000, and (iii) up to $20,000 in transaction expenses incurred by the Seller in connection with the MIPA. In connection with the execution of the MIPA, the Company paid a $10,000 non-refundable deposit, which will be applied against the cash portion of the purchase consideration at closing. On February 5, 2023, the Company filed a Continuing Membership Application ("Form CMA") with FINRA. The transaction shall close upon the successful clearance of the Form CMA by FINRA.

The Broker is a broker-dealer licensed with the SEC, FINRA and certain states. Subject to satisfaction of the closing conditions set forth in the Agreement, which include among other things obtaining FINRA approval for the change of control of the Broker within six months of execution of the MIPA, or by July 23, 2023, as well as approval from applicable states, the Broker will become a wholly-owned subsidiary of the Company. Under the MIPA, the Seller will continue and operate the Broker until the closing, and will be entitled to any accounts receivable generated by the Broker during that time. The MIPA also imposes certain restrictive covenants on the Seller related to the Broker's operations and activities during the period between signing and closing under the MIPA.

The Company entered into the MIPA to acquire the Broker for the purpose of enabling the Company to create and sell interests in oil and gas funds to assist the Company in continuing its oil and gas exploration and drilling activities.

Between March 12, 2023 and March 27, 2023, the Company entered into additional SPAs with accredited investors on the same terms as the PIPE Offering, whereby the purchasers agreed to purchase a total of 24.28 Units from the Company, at a purchase price of $25,000 per Unit for a total purchase price of $607,000.

In connection with the Company's acquisition of White River Holdings from Ecoark in July 2022, the Company granted Ault certain participation rights in its oil and gas exploration and drilling ventures ("Participation Rights") identical to rights Ecoark had given Ault. Ault exercised these Participation Rights and owed us approximately $3.25 million (as of March 22, 2023) from the exercise.

On March 22, 2023, our Board of Directors agreed to Ecoark's advancing payments to us of up to $3.25 million (the "Amounts") with the objective of satisfying Ault's obligations payable to the Company from its exercise of the Participation Rights. As of March 28, 2023, Ecoark has advanced us $500,000 under this transaction. Ecoark and Ault have agreed that in lieu of repayment by Ault, Ault will permit Ecoark to redeem shares of Ecoark's Series A Convertible Redeemable Preferred Stock (the "Ecoark Series A") held by Ault by dividing the Amounts by the stated value of such shares, or one share of Ecoark Series A for each $10,833.33 advanced to us. The redemption cannot occur until the Spin-Off and a related distribution of Wolf Energy Services Inc. occur which permits Ault to receive its full dividends. The effect of this transaction for the Company is that we begin collecting Amounts from Ecoark in satisfaction of Ault's account payable to us related to the Participation Rights due. The transaction was approved by the independent directors of the Company and Ecoark with Mr. May and his daughter abstaining as White River directors, and Mr. May also abstained as an Ecoark director.

**PART II — INFORMATION NOT REQUIRED IN PROSPECTUS**

**OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION**

We estimate that expenses in connection with the distribution described in this registration statement (other than brokerage commissions, discounts or other expenses relating to the sale of the shares by the selling security holders) will be as set forth below. We will pay all of the expenses with respect to the distribution, and such amounts, with the exception of the SEC registration fee, are estimates.

---

| | |
|:---|:---|
| SEC registration fee | $10000 |
| Accounting fees and expenses | $25000 |
| Legal fees and expenses | $50000 |
| Transfer agent fees and expenses | $10000 |
| Miscellaneous | $1000 |
| Total | $96000 |

---

**INDEMNIFICATION OF DIRECTORS AND OFFICERS**

Our Articles of Incorporation provides that the liability of our officers and directors will be eliminated to fullest extent permitted by the NRS.

Under the NRS, these persons are not liable for the breach of fiduciary duty if they acted in good faith and with a view to the interests of the Company. Directors and officers, in deciding upon matters of business, are generally presumed to act in good faith, on an informed basis and with a view to the interests of the Company, and will not be individually liable for damages as a result of an act or failure to act in his or her capacity as a director or officer except unless it is proven that the presumption that an officer or director acted in good faith does not apply, and that the breach involved intentional misconduct, fraud or a knowing violation of law.

These provisions eliminate our rights and those of our stockholders to recover monetary damages from an officer or director for breach of his or her fiduciary duty of care as a director or officer except in the situations described above.

Section 78.7502(1) of the NRS provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (except an action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred in connection with such action, suit or proceeding if such person: (i) is not liable for a breach of fiduciary duties that involved intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his or her conduct was unlawful.

NRS Section 78.7502(2) further provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred in connection with the defense or settlement of the action or suit if such person: (i) is not liable for a breach of fiduciary duties that involved intentional misconduct, fraud or a knowing violation of law; or (ii) acted in good faith and in a manner that he or she reasonably believed to be in or not opposed to the best interests of the corporation. Indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

To the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections (1) and (2) of NRS Section 78.7502, as described above, or in defense of any claim, issue or matter therein, the corporation shall indemnify him or her against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection with the defense.

Section 11 of the Company's Articles of Incorporation provides that we shall, to the fullest extent permitted by the NRS, as now or hereafter in effect, indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the Company, by reason of the fact that such person is or was a director, officer, employee or agent of the Company or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he: (i) is not liable pursuant to NRS Section 78.138; or (ii) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

We expect to enter into Indemnification Agreements with each of our officers and directors. Notwithstanding the indemnification provided for by Section 11, our Articles of Incorporation or Bylaws, or any written agreement, such indemnity shall not include any advancement of expenses incurred by such indemnitees relating to or arising from any proceeding in which the Company asserts a direct claim against an indemnitee, or an indemnitee asserts a direct claim against the Company, whether such claim is termed a complaint, counterclaim, crossclaim, third party complaint or otherwise. Following the termination of any proceeding, the Company may provide indemnification in accordance with this Section 11, the Company's Articles of Incorporation or Bylaws, any written agreement or the NRS.

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

**RECENT SALES OF UNREGISTERED SECURITIES**

Other than as set forth below, we did not sell any equity securities within the past three years that were not registered under the Securities Act.

On July 25, 2022, the Company entered into a Share Exchange Agreement with Ecoark and White River Holdings pursuant to which the Company acquired White River Holdings from Ecoark and in exchange issued Ecoark 1,200 shares of a new series of Series A of White River. The transaction was treated as a reverse merger for accounting purposes. Ecoark funded White River Holdings with $3 million prior to the reverse merger. The issuance of the Series A was exempt from registration under Section 4(a)(2) of the Securities Act.

In July and August 2022, the Company agreed to issue a total of 17,425,000 shares of restricted common stock to its directors, employees and consultants, subject to vesting conditions. Effective December 1, 2022, the grants were cancelled and replaced with an equivalent number of RSUs on December 2, 2022 with the same economic terms. These transactions were exempt from registration under the Securities Act and Rule 504 promulgated thereunder.

From October 19, 2022 through November 8, 2022, the Company entered into a Securities Purchase Agreement ("SPA") pursuant to which the Company sold 190.2726308 Units to 123 accredited investors, with each Unit consisting of one share of Series C and five-year Warrants to purchase up to 200% of the shares of common stock issuable upon conversion of the Series C, at a purchase price of $25,000 per Unit for a total purchase price of $4,756,816 in the PIPE Offering. The net proceeds from the PIPE Offering, after offering expenses and related costs, have been and/or will be used for working capital and general corporate purposes including oil and gas drilling on the Company's working interests in Louisiana and Mississippi. The offer and sale of the Units and the Series C and Warrants contained therein was not registered under the Securities Act and was exempt from registration pursuant to Section 4(a)(2) thereof and Rule 506(b) promulgated thereunder.

On December 20, 2022, the Company entered into a SPA with an accredited investor whereby the investor lent the Company an aggregate of $1,500,000 in gross proceeds and the Company issued the investor a 10% Original Issue Discount Senior Secured Convertible Promissory Note, referred to herein as the "Note". The Note is due September 16, 2023, and bears interest at a rate of 12% per annum, payable monthly, subject to an increase to 18% per annum in case of an event of default as provided for therein. The Note is convertible into shares of the Company's common stock at any time following the issuance date at the investor's option at a conversion price equal to the lesser of (i) $1.00 per share and (ii) the average of the five-closing prices of the common stock immediately prior to the date of conversion, subject to certain adjustments (including based on the issuance of lower priced securities) and beneficial ownership limitations. Upon an event of default, the investor may convert the Note at a reduced conversion price equal to 70% of the lowest closing price of the common stock for the 10 prior trading days. For more information on the Note transaction, see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Liquidity and Capital Resources-Convertible Note Financing" on page 61.

On December 20, 2022, the Company entered into a Consulting Agreement with an affiliate of the investor in the Note transaction described above (the "Consultant"), pursuant to which the Company agreed to issue shares 1,666,667 shares of common stock, subject to upward adjustment to the extent the closing price per share of the Company's common stock is below $1.00 as of (i) the date a registration statement registering the resale by the Consultant of its shares of common stock is declared effective by the Securities and Exchange Commission (the "Effective Date"), and/or (ii) 90 days after the Effective Date. In such event, the number of shares will be increased to the quotient obtained by dividing $1,666,666.67 by the closing price of the common stock. The Company also agreed to indemnify the Consultant pursuant to indemnification provisions attached to the Consulting Agreement.

On January 10, 2023, WR Ops and the Company entered into three separate Participation Agreements with three investors, pursuant to which, the parties agreed to the following: (i) each investor agreed to pay the Company an initial amount of $50,000 for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi in exchange for (A) a 1.0412490% working interest and (B) a 0.7809370% net revenue interest in such wells. In addition, on January 17, 2023 and January 18, 2023, WR Ops and the Company entered into two separate Participation Agreements with two investors, pursuant to which, the parties agreed to the following: (i) the investors agreed to pay the Company a total of $150,000, with the proceeds to be used for drilling one or more wells on the Company's mineral lease located in Rankin County, Mississippi in exchange for a total of three units, with each unit comprised of the following: (A) a 1.0412490% working interest and (B) a 0.7809370% net revenue interest in such wells. Under each of the Participation Agreements, each investor also agreed to participate in the drilling of the initial test well, and each party may also drill a substitute well if the test well is abandoned prior to reaching the agreed upon depth. Further, for any well drilled after the initial test well and substitute well referenced in the preceding sentence, the Investors agreed to the same cost sharing arrangements as provided for the initial test well.

Between March 12, 2023 and March 27, 2023, the Company entered into additional SPAs with accredited investors whereby the purchasers agreed to purchase a total of 24.28 Units from the Company, at a purchase price of $25,000 per Unit for a total purchase price of $607,000. These amounts are in addition to the total of 190.2726308 Units to which this Prospectus relates. The net proceeds from this offering, after offering expenses and related costs, will be used to enable the Company to proceed with the acquisition of a broker-dealer by increasing its available cash on hand as required for regulatory purposes in connection to the acquisition, and for working capital and general corporate purposes.

Each of the foregoing transactions was exempt from registration pursuant to Section 4(a)(2) of the Securities Act and Rule 506 promulgated thereunder, as transactions in securities not involving a public offering.

**EXHIBITS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Filed or Furnished** |
| **Exhibit #** | Exhibit Description | **Form** | **Date** | **Number** | **Herewith** |
| 3.1 | [Amended and Restated Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/1589361/000149315222022340/ex3-1.htm) | 10-Q | 8/12/2022 | 3.1 |  |
| 3.1(a) | [Certificate of Amendment to the Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/1589361/000149315222027284/ex3-1.htm) | 8-K | 9/30/2022 | 3.1 |  |
| 3.1(b) | [Certificate of Amendment to the Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/1589361/000149315222026396/ex3-1.htm) | 8-K | 9/20/2022 | 3.1 |  |
| 3.2 | [Amended and Restated Bylaws of Fortium Holdings Corp.](https://www.sec.gov/Archives/edgar/data/1589361/000149315222023586/ex3-1.htm) | 8-K | 8/19/2022 | 3.1 |  |
| 3.3 | [Certificate of Designation of Series A Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1589361/000149315222020708/ex3-1.htm) | 8-K | 7/29/2022 | 3.1 |  |
| 3.3(a) | [Certificate of Amendment to the Certificate of Designation of Series A Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1589361/000149315222026902/ex3-1.htm) | 8-K | 9/27/2022 | 3.1 |  |
| 3.3(b) | [Certificate of Correction to the Certificate of Designation of Series A Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1589361/000149315222024015/ex3-1.htm) | 8-K | 8/25/2022 | 3.1 |  |
| 3.4 | [Certificate of Designation of Series B Preferred Stock](https://www.sec.gov/Archives/edgar/data/1589361/000149315222020708/ex3-2.htm) | 8-K | 7/29/2022 | 3.2 |  |
| 3.5 | [Certificate of Designation of Series C Convertible Preferred Stock](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex3-1.htm) | 8-K | 10/25/2022 | 3.1 |  |
| 5.1 | [Opinion of Nason, Yeager, Gerson, Harris & Fumero, P.A.](ex5-1.htm) |  |  |  | Filed |
| 10.1 | [Amended Employment Agreement with Jay Puchir#+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-1.htm) | 8-K | 12/2/2022 | 10.1 |  |
| 10.2 | [Amended Employment Agreement with Randy May#+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-2.htm) | 8-K | 12/2/2022 | 10.2 |  |
| 10.3 | [Amended Employment Agreement with Alisa Horgan#+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-3.htm) | 8-K | 12/2/2022 | 10.3 |  |
| 10.4 | [Amended Employment Agreement with Richard Horgan#+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-4.htm) | 8-K | 12/2/2022 | 10.4 |  |
| 10.5 | [White River Energy Corp 2022 Equity Incentive Plan#](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-5.htm) | 8-K | 12/2/2022 | 10.5 |  |
| 10.6 | [Form of Restricted Stock Unit Agreement](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034287/ex10-6.htm) | 8-K | 12/2/2022 | 10.6 |  |
| 10.7 | [Form of Indemnification Agreement](https://www.sec.gov/Archives/edgar/data/1589361/000149315222031984/ex10-6.htm) | 10-Q | 11/14/2022 | 10.6 |  |
| 10.8 | [Form of Securities Purchase Agreement+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-1.htm) | 8-K | 10/25/2022 | 10.1 |  |
| 10.9 | [Form of Warrant](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-2.htm) | 8-K | 10/25/2022 | 10.2 |  |
| 10.10 | [Form of Registration Rights Agreement+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-3.htm) | 8-K | 10/25/2022 | 10.3 |  |
| 10.11 | [Form of Share Exchange Agreement+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222020708/ex10-1.htm) | 8-K | 7/29/2022 | 10.1 |  |
| 10.12 | [Stock Purchase Agreement dated March 8, 2022](https://www.sec.gov/Archives/edgar/data/1589361/000149315222006863/ex10-4.htm) | 10-K | 3/15/2022 | 10.4 |  |
| 10.13 | [Joint Venture Agreement dated December 2, 2021+](https://www.sec.gov/Archives/edgar/data/1589361/000149315221030363/ex10-1.htm) | 8-K | 12/3/2021 | 10.1 |  |
| 10.14 | [Stock Purchase Agreement dated September 14, 2021+](https://www.sec.gov/Archives/edgar/data/1589361/000149315221023164/ex10-1.htm) | 8-K | 9/20/2021 | 10.1 |  |
| 10.15 | [Amendment to Junior Secured Promissory Note dated December 8, 2020](https://www.sec.gov/Archives/edgar/data/1589361/000149315221002601/ex10-5.htm) | 10-K | 2/4/2021 | 10.5 |  |
| 10.16 | [Revolving Promissory Note dated August 1, 2020+](https://www.sec.gov/Archives/edgar/data/1589361/000149315220022936/ex10-2.htm) | 10-Q | 12/4/2020 | 10.2 |  |
| 10.17 | [Form of Securities Purchase Agreement+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-1.htm) | 8-K | 10/25/2022 | 10.1 |  |
| 10.18 | [Form of Warrant+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-2.htm) | 8-K | 10/25/2022 | 10.2 |  |
| 10.19 | [Form of Registration Rights Agreement+](https://www.sec.gov/Archives/edgar/data/1589361/000149315222029534/ex10-3.htm) | 8-K | 10/25/2022 | 10.3 |  |
| 10.20 | [Securities Purchase Agreement+](ex10-20.htm) |  |  |  | Filed |
| 10.21 | [10% Original Issue Discount Senior Secured Convertible Note+](ex10-21.htm) |  |  |  | Filed |
| 10.22 | [Security Agreement+](ex10-22.htm) |  |  |  | Filed |
| 10.23 | [Guarantee](ex10-23.htm) |  |  |  | Filed |
| 10.24 | [Registration Rights Agreement (Note) +](ex10-24.htm) |  |  |  | Filed |
| 10.25 | [Consulting Agreement](ex10-25.htm) |  |  |  | Filed |
| 10.26 | [Registration Rights Agreement (Consulting Agreement)](ex10-26.htm) |  |  |  | Filed |
| 10.27 | [Membership Interest Purchase Agreement](ex10-27.htm) |  |  |  | Filed |
| 21.1 | [List of Subsidiaries](https://www.sec.gov/Archives/edgar/data/1589361/000149315222034786/ex21-1.htm) |  |  |  | \* |
| 23.1 | [Consent of RBSM LLP](ex23-1.htm) |  |  |  | Filed |
| 23.2 | [Consent of Nason, Yeager, Gerson, Harris & Fumero, P.A.](ex5-1.htm) |  |  |  | (1) |
| 23.3 | [Consent of Ryder Scott Company, LP](ex23-3.htm) |  |  |  | Filed |
| 99.1 | [Report of Ryder Scott Company, LP](ex99-1.htm) |  |  |  | Filed |
| 101.INS | Inline XBRL Instance Document. |  |  |  | Filed |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. |  |  |  | Filed |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |  |  |  | Filed |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |  |  |  | Filed |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |  |  |  | Filed |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |  |  |  | Filed |
| 107 | [Exhibit filing fees](ex107.htm) |  |  |  | Filed |

---

(1) Contained in Exhibit 5.1.

# Management contract or compensatory plan or arrangement.

\* Previously filed.

+ Exhibits and/or Schedules have been omitted. The Company hereby agrees to furnish to the Staff of the Securities and Exchange Commission upon request any omitted information.

**UNDERTAKINGS**

The undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section 10(a)(3) of the
Securities Act;

(ii) to reflect in the prospectus any acts or events arising after
the effective date of this registration statement (or the most recent post-effective amendment thereof) which, individually or in the
aggregate, represent a fundamental change in the information set forth in this registration statement (notwithstanding the foregoing,
any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which
was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of a
prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act if, in the aggregate, the changes in volume and
price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration
Fee" table in the effective registration statement); and

(iii) to include any material information with respect to the plan
of distribution not previously disclosed in this registration statement or any material change to such information in this registration
statement.

&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the
Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered
therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration, by means of a post-effective amendment,
any of the securities being registered which remain unsold at the termination of the offering.

(4) That, for the purpose of determining liability under the Securities
Act of 1933 to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3)
shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration
statement; and

(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2),
(b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i),
(vii), or (x) for the purpose of providing the information statement as of the earlier of the date such form of prospectus is first used
after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided
in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be
a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus
relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. <u>Provided</u>, <u>however</u>, that no statement made in a registration statement or prospectus that is part of the registration statement or made in
a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration
statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that
was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately
prior to such effective date.

&nbsp;&nbsp;&nbsp;&nbsp;(5) That, for the purpose of determining liability of the registrant
under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section
15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a
new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed
to be the initial *bona fide* offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(6) If the registrant is subject to Rule 430C, each prospectus
filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying
on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration
statement as of the date it is first used after effectiveness. <u>Provided</u>, <u>however</u>, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference
into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract
of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was
part of the registration statement or made in any such document immediately prior to such date of first use.

(7) Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions,
or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other
than the payment by a Registrant of expenses incurred or paid by a director, officer or controlling person of a Registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities
being registered, that Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit
to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities
Act and will be governed by the final adjudication of such issue.

(8) For purposes of determining any liability under the Securities
Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A
and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall
be deemed to be part of this registration statement as of the time it was declared effective.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement on Form S-1 to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Fayetteville, State of AR, on March 29, 2023.

---

| | |
|:---|:---|
| <br> **WHITE RIVER ENERGY CORP** | <br> **WHITE RIVER ENERGY CORP** |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement on Form S-1 has been signed by the following persons in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| */s/ Jay Puchir* | March 29, 2023 |
| Jay Puchir, Chief Executive Officer (Principal Executive Officer and Principal Financial Officer) |  |
| */s/ Randy May* | March 29, 2023 |
| Randy May, Executive Chairman |  |
| */s/ Alisa Horgan* | March 29, 2023 |
| Alisa Horgan, Director |  |
| */s/ Danny Hames* | March 29, 2023 |
| Danny Hames, Director |  |
| */s/ James Cahill* | March 29, 2023 |
| James Cahill, Director |  |
| */s/ Greg Landis* | March 29, 2023 |
| Greg Landis, Director |  |

---

## Exhibit 5.1

**Exhibit 5.1**

![https:\|\|www.sec.gov\|Archives\|edgar\|data\|0001437491\|000121390020044610\|ex5-1_001.jpg](ex5-1_001.jpg)

March 29, 2023

White River Energy Corp

609 W/ Dickson St., Suite 102 G

Fayetteville, AR, 72701

Attention: Jay Puchir

Chief Executive Officer

Re: Registration Statement on Form S-1

Dear Mr. Puchir:

We have acted as counsel to White River Energy Corp, a Nevada corporation (the "Company"), in connection with the Registration Statement on Form S-1 (File No. 333-268707) (the "Registration Statement") filed by the Company with the Securities and Exchange Commission under the Securities Act of 1933 (the "Securities Act") on the date hereof. The Registration Statement relates to (i) the distribution by Ecoark Holdings, Inc. , now known as BitNile Metaverse, Inc. ("BitNile") of 42,253,521 shares of the Company's common stock, par value $0.0001 per share, issuable to BitNile upon conversion of the 1,200 shares of the Company's Series A Convertible Preferred Stock (the "Series A") held by BitNile , on a pro rata basis to BitNile's stockholders, comprised of holders of BitNile's outstanding common stock and convertible preferred stock on an as-converted basis (subject to beneficial ownership limitations) , plus up to 1,000 shares of common stock which may be issued for purposes of rounding up an fractional shares to the nearest whole share (collectively, the "Spin-Off Shares"); and (ii) the offer and sale, from time-to-time by the Selling Stockholders identified in the Registration Statement, of (A) up to 14,270,523 shares of common stock (the "PIPE Shares"), which consists of up to 4,756,841 shares of common issuable upon conversion of outstanding shares of the Company's Series C Convertible Preferred Stock held by the Selling Stockholders (the "Series C"), and up to 9,513,682 shares of common stock issuable upon the exercise of Warrants to purchase common stock held by the Selling Stockholders (the "Warrants," and together with the PIPE Shares, collectively, the "PIPE Securities"), and/or (B) the up to 9,513,682 Warrants themselves. The Spin-Off Shares and the PIPE Securities are collectively referred to herein as the "Securities." The shares of Series A were issued to BitNile , and the Series C and Warrants were issued to the Selling Stockholders, as applicable, as described in the Registration Statement in private placement transactions exempt from registration under Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder.

In connection with this opinion, we have examined such documents and such matters of fact and law as we have deemed necessary as a basis for this opinion, including, but not limited to, (i) the Registration Statement, as amended, (ii) the Company's Articles of Incorporation and Bylaws, as amended, (iii) the Certificate of Designation of Preferences, Rights and Limitations of the Series A, as amended, (iv) the Certificate of Designation of Preferences, Rights and Limitations of the Series C, (v) the form of Share Exchange Agreement pursuant to which the Series A was issued to BitNile , (vi) the form of Securities Purchase Agreement and exhibits thereto pursuant to which the Series C and Warrants were issued to the Selling Stockholders, (vii) certain resolutions of the Board of Directors of the Company, and (vii) the forms of Warrant, together with such other corporate documents and records as we deemed appropriate for purposes of the opinions set forth herein.

White River Energy Corp<br>March 29, 2023<br>Page 2<br>

We have assumed the genuineness of all signatures, the legal capacity of natural persons, the truth, accuracy and completeness of the information, representations and warranties contained in the instruments, documents, certificates and records we have reviewed, the authenticity of the documents submitted to us as originals, the conformity to the original documents of all documents submitted to us as copies, and the authenticity of the originals of all documents submitted to us as copies.

We have also assumed that (i) the Registration Statement and any amendments thereto will have become effective and comply with all applicable laws and no stop order suspending the effectiveness of the Registration Statement will have been issued and remain in effect, in each case, at the time the Shares are offered and sold as contemplated by the Registration Statement, (ii) all shares of common stock to be issued upon conversion of the Series A and the Series C (without the payment of any consideration) and exercise of the Warrants and that if any of the Warrants are exercised, (a) they are exercised for cash, or (b) if they are exercised cashlessly, no consideration has been paid other than surrender of the Warrants, and (iii) any conversion of the Series A or the Series C or exercise of a Warrant is otherwise made in accordance with the terms thereof.

Based on the foregoing, we are of the opinion that the Securities, as and when issued in accordance with the terms of the Series A, Series C and Warrants, as applicable, and for the consideration set forth therein, as applicable, will be validly issued, fully paid and non-assessable, and that the Warrants are valid and binding obligations of the Company under the laws of the State of Nevada, subject to the holder's payment of the exercise price.

The opinions expressed herein are limited to Chapter 78 of the Nevada Revised Statutes as currently in effect, and we express no opinion as to the effect of any other law of the State of Nevada or the laws of any other jurisdiction.

This opinion is effective as of the date hereof and will remain in effect as of the effectiveness date of the Registration Statement and through the issuances and sales of the Securities thereunder.

We hereby consent to the use of this opinion as Exhibit 5.1 to the Registration Statement and to the reference to us under the caption "Legal Matters" in the Prospectus included in the Registration Statement. In giving such consent, we do not hereby admit that we are acting within the category of persons whose consent is required under Section 7 of the Securities Act or the rules or regulations of the Securities and Exchange Commission thereunder.

---

| |
|:---|
| Very truly yours, |
| <br> /s/ Nason, Yeager, Gerson, Harris & Fumero, P.A. |
| Nason, Yeager, Gerson, Harris & Fumero, P.A. |

---

## Exhibit 10.20

**Exhibit 10.20**

**SECURITIES PURCHASE AGREEMENT**

This Securities Purchase Agreement (this "<u>Agreement</u>") is dated as December 16, 2022, among White River Energy Corp., a Nevada corporation whose principal place of business is located at 609 West Dickson St. Suite 102G, Fayetteville, AR 72701 (the "Company") and the Purchaser identified on the signature pages hereto (including its successors and assigns, the "<u>Purchaser</u>").

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), and Rule 506 promulgated thereunder, the Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser, severally and not jointly, agrees as set forth below.

**ARTICLE I**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1.1 The following terms have the meanings indicated in this Section 1.1:

"<u>Action</u>" shall have the meaning ascribed to such term in Section 3.1(j).

"<u>Affidavits of Confession of Judgment</u>" means the Affidavits of Confession of Judgment dated the date hereof, executed by the Company and the Guarantors.

"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

"<u>Business Day</u>" means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.

"<u>Change of Control</u>" means the occurrence of any of (i) an acquisition after the date hereof by an individual or legal entity or "group" (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act) other than a group including Jay Puchir or Randy May of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise) of in excess of 50% of the voting securities of the Company, or (ii) the Company merges into or consolidates with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction, the stockholders of the Company immediately prior to such transaction own less than 50% of the aggregate voting power of the Company or the successor entity of such transaction, or (iii) the Company sells or transfers all or substantially all of its assets to another Person and the stockholders of the Company immediately prior to such transaction own less than 50% of the aggregate voting power of the acquiring entity immediately after the transaction, (iv) a replacement at one time or within a three year period of more than one-half of the members of the Company's board of directors which is not approved by a majority of those individuals who are members of the board of directors on the date hereof (or by those individuals who are serving as members of the board of directors on any date whose nomination to the board of directors was approved by a majority of the members of the board of directors who are members on the date hereof), or (v) both Jay Puchir and Randy May shall no longer be employed by the Company, or (vi) the execution by the Company of an agreement to which the Company is a party or by which it is bound, providing for any of the events set forth above in (i) through (vi) above.

Page 1 of 33

"<u>Closing</u>" means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

"<u>Closing Date</u>" means the Business Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser' obligations to pay the Subscription Amount and (ii) the Company's obligations to deliver the Securities have been satisfied or waived.

"<u>Collateral</u>" shall have the meaning ascribed to such term in the Security Agreement"

"<u>Commission</u>" means the United States Securities and Exchange Commission.

"<u>Common Stock</u>" means the common stock of the Company, par value $0.0001 per share.

"<u>Common Stock Equivalents</u>" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

"<u>Company Counsel</u>" means Nason, Yeager, Gerson, Harris & Fumero, P.A.

"<u>Corporate Guarantee</u>" means the Guarantee, dated the date hereof, of the Corporate Guarantors.

"<u>Corporate Guarantors</u>" means each of White River Holdings Corp, a Delaware corporation, White River E&P Management 1 LLC, a Texas limited liability company, White River Energy LLC, a Texas limited liability company, White River E&P LLC, a Texas limited liability company, White River SPV 2 LLC, a Texas limited liability company, White River SPV 3 LLC, a Texas limited liability company, and White River Operating LLC, a Texas limited liability company.

"<u>Disclosure Schedules</u>" shall have the meaning ascribed to such term in Section 3.1 hereof.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>GAAP</u>" shall have the meaning ascribed to such term in Section 3.1(h) hereof.

"<u>Guarantees</u>" means the Corporate Guarantee and the Individual Guarantee.

"<u>Guarantors</u>" means the Corporate Guarantors and the Individual Guarantors.

"<u>Individual Guarantee</u>" means the Guarantee, dated the date hereof of the Individual Guarantors.

Page 2 of 33

"<u>Individual Guarantors</u>" means each of Randy May and Jay Puchir.

"<u>Liens</u>" means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

"<u>Lock-up Agreements</u>" means the lock-up agreements executed by management and certain significant shareholders of the Company.

"<u>Majority Purchaser</u>" shall mean holders of 50% of the then outstanding principal amount of the Notes, so long as such 50% includes Smithline Family Trust I as lead investor.

"<u>Material Adverse Effect</u>" shall have the meaning assigned to such term in Section 3.1(b) hereof.

"<u>Material Permits</u>" shall have the meaning ascribed to such term in Section 3.1(m).

"<u>Mortgage</u>" means the mortgage, dated the date hereof, by the Company of certain property in favor of the Purchaser and the documents executed by the parties on such date in connection therewith, including the Collateral Pledge and Security Agreement, the Collateral Mortgage Note, the title opinion and the certificate of authority.

"<u>Notes</u>" means the 12% Senior Secured Convertible Notes due September 16, 2023 in aggregate principal amount of $1,666,666.67, convertible into shares of Common Stock of the Company, and issued by the Company to the Purchaser hereunder.

"<u>OFAC</u>" shall mean the United States Department of the Treasury's Office of Foreign Assets Control.

"<u>OFAC Regulations</u>" shall mean the regulations promulgated by OFAC, as amended from time to time.

"<u>Permitted Indebtedness</u>" shall mean the Indebtedness set forth on Schedule 1.1(a).

"<u>Permitted Liens</u>" shall mean the Liens set forth on Schedule 1.1(b).

"<u>Person</u>" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

"<u>Pledge Agreement</u>" means the Pledge Agreement, dated the date hereof, between Randy May, Jay Puchir, Atikin Investments LLC, and the Purchaser.

"<u>Proceeding</u>" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"<u>Qualified Offering</u>" means an offering of equity or debt securities for gross proceeds to the Company of not less than $5.0 million.

"<u>Registration Rights Agreement</u>" means the Registration Rights Agreement, dated the date hereof, between the Company and the Purchaser.

Page 3 of 33

"<u>Rule 144</u>" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule.

"<u>SEC</u>" or "Commission" means the Securities and Exchange Commission.

"<u>Securities</u>" means the Notes, and the shares of common stock underlying the Notes received by the Purchaser hereunder.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended.

"<u>Security Agreement</u>" means the Security Agreement, dated the date hereof, between the Company, the Guarantors and the Purchaser.

"<u>Security Documents</u>" means the Security Agreement and any other documents and filings required thereunder (all UCC-1 and IP filing receipts) in order to grant the Purchaser a perfected security interest on all of the current and future assets of the Company and its Subsidiaries.

"<u>Subscription Amount</u>" means, as to the Purchaser, the aggregate amount to be paid for Note purchased hereunder as specified below such Purchaser' name on the signature page of this Agreement and next to the heading "Subscription Amount", in United States Dollars and in immediately available funds.

"<u>Subsidiary</u>" means any direct or indirect subsidiary or limited liability corporation of the Company as set forth on <u>Schedule 3.1(a)</u>.

"<u>Trading Day</u>" means a day on which the Principal Market is open for trading.

"<u>Trading Market</u>" mans and of the OTCQB, New York Stock Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Select Market, or the Nasdaq Global Market, or any successors of any of these exchanges on which the Securities is listed.

"<u>Transaction Documents</u>" means this Agreement, the Notes, the Security Agreement, the Mortgage, the Pledge Agreement, the Guarantees, the Affidavits of Confession of Judgment, the Lock-up Agreements the Registration Rights Agreement, the Transfer Agent Instructions, and any other documents or agreements executed in connection with the transactions contemplated hereunder.

"<u>Transfer Agent Instructions</u>" means the irrevocable instructions, dated the date hereof, from the Company to its Transfer Agent.

**PURCHASE AND SALE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Closing</u>. Subject to the terms and conditions set forth herein, the Purchaser agrees to purchase from the Company and the Company agrees to sell to the Purchaser the aggregate principal amount of Notes, set forth opposite the name of the Purchaser on the signature page hereto, for the purchase price set forth on such page, which shall be payable to the Company at the Closing by wire transfer of immediately available funds. The Note shall be issued with an original issue discount of 10%, or a face amount of $1,666,666.67.

Page 4 of 33

At the Closing, the Purchaser shall deliver to the Company via wire transfer immediately available funds equal to its Subscription Amount and the Company shall deliver to the Purchaser its Note and the other items set forth in Section 2.2 issuable at the Closing. Upon satisfaction of the conditions set forth in Section 2.2, the Closing shall occur at the offices of the Company, or such other location as the parties shall mutually agree.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Deliveries</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) On
 the Closing Date, the Company shall deliver to the Purchaser the following and shall have
 satisfied the following conditions, as the case may be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this
 Agreement, duly executed by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 duly executed Note with a principal amount equal to the amount such set forth on the signature
 page hereto, registered in the name of such Purchaser, substantially in the form of Exhibit
 A hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Security Agreement, duly executed by the Company and the Guarantors, substantially in the
 form of Exhibit B hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Corporate Guarantee, duly executed by the Corporate Guarantors, substantially in the form
 of Exhibit C hereto and the Individual Guarantee, duly executed by the Individual Guarantors,
 substantially in the form of Exhibit D hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Affidavits of Confession of Judgment, substantially in the forms of Exhibits E, F and G hereto,
 duly executed by the Company, the Corporate Guarantors and the Individual Guarantors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) a
 legal opinion of Company Counsel satisfactory in form and substance to the Purchaser, substantially
 in the form of Exhibit H hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the
 Registration Rights Agreement, substantially in the form of Exhibit I hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the
 Lock-up Agreements, executed by management and certain significant shareholders of the Company
 substantially in the form of Exhibit J hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Certificates
 of the Chief Executive Officer and Secretary of the Company, in the form of Exhibit K, certifying
 as to (a) copies of the Certificate of Incorporation and bylaws of the Company and the Corporate
 Guarantors, as amended and restated as of the date hereof, (b) all actions taken and consents
 made by such party and its officers and shareholders as applicable to authorize the transactions
 provided by the Transaction Documents, (c) the names of the officers of such party authorized
 to sign the Transaction Documents , together with a sample of the true signature of such
 Person, (d) all conditions set forth in this Section 2.2 have been met by such party, and
 (e) no event has occurred or such party anticipates occurring that has resulted in an Event
 of Default under the Notes or with the passage of time would result in an Event of Default
 under the Notes;

Page 5 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Certificates
 of good standing for the Company and White River Holdings Corp. and White River Operating
 LLC, Subsidiaries of the Company, in their respective jurisdictions of incorporation or formation,
 as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) Transfer
 Agent Instructions, executed by the Company and the Transfer Agent, substantially in the
 form of Exhibit L hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) Stock
 pledges of the Company and the Corporate Guarantors, substantially in the forms of Exhibit
 M and N hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) The
 Mortgage, substantially in the form of Exhibit O hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) On
 the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the
 following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this
 Agreement duly executed by the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Purchaser' Subscription Amount by wire transfer to the account of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Security Agreement, duly executed by the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Pledge Agreement, duly executed by the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Registration Rights Agreement, duly executed by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Closing Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 obligations of the Company hereunder in connection with the Closing are subject to the following
 conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 accuracy in all material respects when made and on the Closing Date of the representations
 and warranties of the Purchaser contained herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
 obligations, covenants and agreements of Purchaser required to be performed at or prior to
 the Closing Date shall have been performed in all material respects; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The
 obligations of the Purchaser hereunder in connection with the Closing are subject to the
 following conditions being met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 accuracy in all material respects when made and on the Closing Date of the representations
 and warranties of the Company contained herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
 obligations, covenants and agreements of the Company and its Subsidiaries required to be
 performed at or prior to the Closing Date shall have been performed;

Page 6 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such
 Purchaser shall be reasonably satisfied with the results of its due diligence investigation
 of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no
 statute, rule, regulation, executive order, decree, ruling or injunction shall have been
 enacted, entered, promulgated or endorsed by any court or governmental authority of competent
 jurisdiction that prohibits the consummation of any of the transactions contemplated by the
 Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Since
 the date of execution of this Agreement, no event or series of events shall have occurred
 that reasonably could be expected to have or result in a Material Adverse Effect with respect
 to the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) no
 banking moratorium have been declared either by the United States or New York State authorities,
 no suspension of trading shall have been declared on the New York Stock Exchange or the Nasdaq
 Stock Market, nor shall there have occurred any material outbreak or escalation of hostilities
 or other national or international calamity of such magnitude in its effect on, or any material
 adverse change in, any financial markets which, in each case, in the reasonable judgment
 of such Purchaser, makes it impracticable or inadvisable to purchase the Note at the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the
 Company shall have no outstanding indebtedness, other than (A) that in favor of the Purchaser
 pursuant to the Note, (B) indebtedness incurred in the ordinary course of business in connection
 with the purchase of equipment, trade debt incurred in the ordinary course of business, and
 (C) indebtedness set forth on the Schedules hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) No other securities of the Company outstanding after the use
of proceeds hereof (i) shall be in default or (ii) shall reset (or shall have exercised any rights to convert into the Securities) as
a result of the issuance of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The
 Company shall have raised at least $4,566,050 from the sale of Series C Convertible Preferred
 Stock and accompanying warrants of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) The
 Company shall have purchased key man insurance on Randy May and Jay Puchir in an amount at least equal to the Note; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) No
 other parties, including without limitation, investors in the Series C Convertible Stock and accompanying warrants shall have exercised
 participation rights in this offering. It being understood that it is a condition to the Purchaser's provision of financing hereby
 that no other investor participate herein, without its consent.

Page 7 of 33

**REPRESENTATIONS AND WARRANTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Representations and Warranties of the Company</u>. Except as set forth in the <u>Disclosure Schedule</u> which shall be deemed a part hereof, the Company hereby makes the representations and warranties set forth below to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Subsidiaries</u>.
 All of the direct and indirect subsidiaries and limited liability corporations of the Company
 are set forth in Schedule 3.1(a) hereto. The Company owns, directly or indirectly, all of
 the capital stock or other equity of each Subsidiary free and clear of any Liens, other than
 Permitted Liens and the Lien granted to the Purchaser, and all the issued and outstanding
 shares of capital stock of or interests in each Subsidiary are validly issued and are fully
 paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase
 securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Organization and Qualification</u>. Each of the Company and the Subsidiaries is an entity duly incorporated
 or otherwise organized, validly existing and in good standing under the laws of the jurisdiction
 of its incorporation or organization (as applicable), with the requisite power and authority
 to own and use its properties and assets and to carry on its business as currently conducted.
 Neither the Company nor any Subsidiary is in violation or default in any material respect
 of any of the provisions of its respective certificate or articles of incorporation, bylaws
 or other organizational or charter documents. Each of the Company and the Subsidiaries is
 duly qualified to conduct business and is in good standing as a foreign corporation or other
 entity in each jurisdiction in which the nature of the business conducted or property owned
 by it makes such qualification necessary, except where the failure to be so qualified or
 in good standing, as the case may be, could not have or reasonably be expected to result
 in (i) a material adverse effect on the legality, validity or enforceability of any Transaction
 Documents, (ii) a material adverse effect on the results of operations, assets, business,
 prospects or financial condition of the Company and the Subsidiaries, taken as a whole, or
 (iii) a material adverse effect on the Company's or its Subsidiaries' ability
 to perform in any material respect on a timely basis its obligations under any Transaction
 Document (any of (i), (ii) or (iii), a " <u>Material Adverse Effect</u> ") and
 no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing
 or seeking to revoke, limit or curtail such power and authority or qualification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Authorization; Enforcement</u>. The Company and each of its Subsidiaries has the requisite corporate power
 and authority to enter into and to consummate the transactions contemplated by each of the
 Transaction Documents and otherwise to carry out its respective obligations thereunder. The
 execution and delivery of each of the Transaction Documents by the Company and each of its
 Subsidiaries and the consummation by it of the transactions contemplated thereby have been
 duly authorized by all action on the part of the Company and each of its Subsidiaries and
 no further action is required by the Company and each of its Subsidiaries in connection therewith.
 Each Transaction Document has been (or upon delivery will have been) duly executed by the
 Company and each of its Subsidiaries and, when delivered in accordance with the terms hereof,
 will constitute the valid and binding obligation of the Company and such Subsidiaries enforceable
 against the Company and such Subsidiaries in accordance with its terms except (i) as limited
 by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
 application affecting enforcement of creditors' rights generally and (ii) as limited
 by laws relating to the availability of specific performance, injunctive relief or other
 equitable remedies.

Page 8 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>No Conflicts</u>. Except as set forth in Schedule 3.1(d), the execution, delivery and performance
 of the Transaction Documents by the Company and each of its Subsidiaries and the consummation
 by the Company and each of its Subsidiaries of the other transactions contemplated thereby
 do not and will not: (i) conflict with or violate any provision of the Company's or
 any Subsidiary's certificate or articles of incorporation, bylaws or other organizational
 or charter documents, or (ii) conflict with, or constitute a default (or an event that with
 notice or lapse of time or both would become a default) under, result in the creation of
 any Lien (other than Permitted Liens) upon any of the properties or assets of the Company
 or any Subsidiary , or give to others any rights of termination, amendment, acceleration
 or cancellation (with or without notice, lapse of time or both) of, any agreement, credit
 facility, debt or other instrument (evidencing indebtedness of the Company or any of its
 Subsidiaries or otherwise) or other understanding to which the Company or any Subsidiary
 is a party or by which any property or asset of the Company or any Subsidiary is bound or
 affected, or (iii) conflict with or result in a violation of any law, rule, regulation, order,
 judgment, injunction, decree or other restriction of any court or governmental authority
 to which the Company or a Subsidiary is subject (including federal and state securities laws
 and regulations), or by which any property or asset of the Company or a Subsidiary is bound
 or affected; except in the case of each of clauses (ii) and (iii) subject to the Required
 Approvals, to the Company's knowledge, such as could not, individually or in the aggregate,
 have or reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Filings, Consents and Approvals</u>. Except as set forth in Schedule 3.1(e) hereto, neither the Company,
 its Subsidiaries is not required to obtain any consent, waiver, authorization or order of,
 give any notice to, or make any filing or registration with, any court or other federal,
 state, local or other governmental authority or other Person in connection with the execution,
 delivery and performance by the Company or such Subsidiaries of the Transaction Documents,
 other than the filing of Form D with the Commission and such filings as are required to be
 made under applicable state securities laws (collectively, the "Required Approvals").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Issuance of the Securities</u>. The Securities are duly authorized and, when issued and paid for in
 accordance with the applicable Transaction Documents, will be duly and validly issued, fully
 paid and nonassessable, free and clear of all Liens other than restrictions on transfer provided
 for in the Transaction Documents. The Common Stock issuable upon exercise of the Notes, when
 issued in accordance with the terms of the Transaction Documents, will be validly issued,
 fully paid and non-assessable, free and clear of all Liens imposed by the Company, and its
 Subsidiaries. The Company has reserved from its duly authorized capital stock a number of
 shares of Common Stock for issuance of at least equal to the amount required to satisfy the
 conversion of the Note.

Page 9 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Capitalization</u>.
 The capitalization of the Company and its Subsidiaries is as set forth on Schedule 3.1(g).
 Other than as set forth on Schedule 3.1(g), the Company and the Subsidiaries have no indebtedness
 for money borrowed other than Permitted Indebtedness. Except as set forth on Schedule 3.1(g),
 the Company has not issued any capital stock since September 30, 2022. Except as set forth
 on Schedule 3.1(g), no Person has any right of first refusal, preemptive right, right of
 participation, or any similar right to participate in the transactions contemplated by the
 Transaction Documents. Except as set forth on Schedule 3.1(g), as a result of the purchase
 and sale of the Securities, there are no outstanding options, warrants, script rights to
 subscribe to, calls or commitments of any character whatsoever relating to, or securities,
 rights or obligations convertible into or exchangeable for, or giving any Person any right
 to subscribe for or acquire, any shares of Common Stock of the Company, or contracts, commitments,
 understandings or arrangements by which the Company or any Subsidiary is or may become bound
 to issue additional shares of common stock, of the Company or securities or rights convertible
 or exchangeable into shares of Common Stock of the Company or its Subsidiaries. The issuance
 and sale of the Securities will not obligate the Company or any Subsidiary to issue shares
 of Common Stock of the Company or any Subsidiary or other securities to any Person (other
 than the Purchaser) and will not result in a right of the Company's or any of its Subsidiaries'
 securities to adjust the exercise, conversion, exchange or reset price under such securities.
 All of the outstanding shares of capital stock in the Company and its Subsidiaries are validly
 issued, fully paid and nonassessable, have been issued in material compliance with all federal
 and state securities laws, and none of such outstanding shares was issued in violation of
 any preemptive rights or similar rights to subscribe for or purchase securities. No further
 approval or authorization of any stockholder, the Board of Directors of the Company or any
 of its Subsidiaries or others is required for the issuance and sale of the Securities. There
 are no stockholders' agreements, voting agreements or other similar agreements with
 respect to Company's or any of its Subsidiaries' capital stock to which the Company
 or any of its Subsidiaries is a party or, to the knowledge of the Company or such Subsidiary,
 between or among any of the Company's stockholders or any stockholder of its Subsidiaries.
 Neither the Company nor any Subsidiary has any outstanding indebtedness for borrowed money
 except for Permitted Indebtedness and the indebtedness described in Schedule 3.1 (g) hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Financial Statements</u>. The Company has voluntarily filed all reports, schedules, forms, registration statements and other documents as a voluntary
 filer required to be filed by the Company under the Securities Act and the Securities Exchange Act of 1934, as amended (the " <u>Exchange Act</u> ") including pursuant to Section 13(a) for the two years preceding the date hereof (or such shorter period as the Company
 was required by law to file such documents) (the foregoing materials, including the exhibits thereto and documents incorporated by
 reference therein, being collectively referred to herein as the " <u>SEC Reports</u> "). As of their respective dates, the
 SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and
 none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required
 to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
 made, not misleading. Except as disclosed on <u>Schedule 3.1(h)</u>, the financial statements of Company (the "Financial Statements")
 included in the SEC Reports comply in all material respects with the applicable accounting requirements and the rules and regulations
 of the SEC with respect thereto as in effect at the time of filing. The Financial Statements have been prepared in accordance with
 United States generally accepted accounting principles applied on a consistent basis during the periods involved (" <u>GAAP</u> "),
 except as may be otherwise specified in the Financial Statements or the notes thereto and except that unaudited financial statements
 may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and
 its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended,
 subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments

Page 10 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Material Changes</u>. Since September 30, 2022, except as disclosed in SEC Reports, (i) there has been no event, occurrence or development that
 has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) except as set forth on Schedule 3.1(i), each
 of the Company and its Subsidiaries has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued
 expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected
 in the Company's, its Subsidiaries' financial statements pursuant to GAAP or required to be disclosed in filings made with
 the Commission, (iii) each of the Company and its Subsidiaries has not altered its method of accounting, (iv) each of the Company and
 its Subsidiaries has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased,
 redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) each of the Company and its Subsidiaries
 has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing stock option plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Litigation</u>.
 Other than as set forth in Schedule 3.1 (j) hereto, there is no action, suit, inquiry, notice
 of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened
 against or affecting the Company , any Subsidiary, or any of their respective properties
 before or by any court, arbitrator, governmental or administrative agency or regulatory authority
 (federal, state, county, local or foreign) (collectively, an " <u>Action</u> ")
 which (i) adversely affects or challenges the legality, validity or enforceability of any
 of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable
 decision, have or reasonably be expected to result in a Material Adverse Effect. Neither
 the Company nor any Subsidiary, nor any director or officer thereof, is or has been the subject
 of any Action involving a claim of violation of or liability under federal or state securities
 laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of
 the Company or any Subsidiary, there is not pending or contemplated, any investigation by
 the Commission involving the Company or any Subsidiary or any current or former director
 or officer of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Labor Relations</u>. No material labor dispute exists or, to the knowledge of the Company or Subsidiary,
 is imminent with respect to any of the employees of the Company or any Subsidiary which could
 reasonably be expected to result in a Material Adverse Effect.

Page 11 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Compliance, Material Contracts</u>. Except as disclosed in the SEC Reports or as set forth on Schedule
 3.1(l) hereto, neither the Company nor any Subsidiary (i) is in default under or in violation
 of (and no event has occurred that has not been waived that, with notice or lapse of time
 or both, would result in a default by the Company or any Subsidiary under), nor has the Company
 or any Subsidiary received notice of a claim that it is in default under or that it is in
 violation of, any indenture, loan or credit agreement, services, marketing or processing
 agreement or any other agreement or instrument to which it is a party or by which it or any
 of its properties is bound (whether or not such default or violation has been waived), (ii)
 is in violation of any order of any court, arbitrator or governmental body, or (iii) is or
 has been in violation of any statute, rule or regulation of any governmental authority, including
 without limitation all foreign, federal, state and local laws applicable to its business
 except in each case as could not have a Material Adverse Effect. Except as set forth on Schedule
 3.1(l), each material contract is in full force and effect and is enforceable in accordance
 with its terms, and no material defaults enforceable against the Company or any Subsidiary
 exist thereunder. Neither the Company nor any Subsidiary has received notice from any party
 to any Material Contract stating that it intends to terminate or amend such contract. " <u>Material Contract</u> " means any contract where any consideration to be paid or received by
 the Company is in excess of $100,000 or is filed or furnished as an exhibit to any report
 or registration statement filed with the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Regulatory Permits and Licenses</u>. The Company and the Subsidiaries possess all certificates, authorizations,
 memberships, sponsorships and permits issued by the appropriate federal, state, local or
 foreign regulatory authorities or other Person necessary to conduct their respective businesses
 and are in good standing under all such certificates, authorizations, memberships, sponsorship
 and permits, except where the failure to possess such permits could not have or reasonably
 be expected to result in a Material Adverse Effect (" <u>Material Permits</u> "),
 and neither the Company nor any Subsidiary has received any notice of proceedings relating
 to the revocation or modification of any Material Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Title to Assets</u>. The Company and the Subsidiaries have good and marketable title in fee simple
 to all real property owned by them that is material to the business of the Company and the
 Subsidiaries and good and marketable title in all personal property owned by them that is
 material to the business of the Company and the Subsidiaries, in each case free and clear
 of all Liens, except Permitted Liens and Liens as do not materially affect the value of such
 property and do not materially interfere with the use made and proposed to be made of such
 property by the Company and the Subsidiaries and Liens for the payment of federal, state
 or other taxes, the payment of which is neither delinquent nor subject to penalties. Any
 real property and facilities held under lease by the Company and the Subsidiaries are held
 by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries
 are in compliance.

Page 12 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o) <u>Intellectual Property</u>. The term "Proprietary Assets"
means all patents, patent applications, trademarks, service marks, trademark and service mark applications, trade names, copyright registrations,
and licenses currently owned and/or used by the Company (which for purposes of this subsection shall include its Subsidiaries) or necessary
for the conduct of the Company's business as currently conducted or proposed to be conducted, as well as any agreement under which
the Company has access to any intellectual property or confidential information used by the Company in its business. Schedule 3.1(o)
sets forth all Proprietary Assets necessary, to the Company's knowledge, to conduct the Company's business as currently conducted
or as presently proposed to be conducted except where the failure to possess such Proprietary Assets could not have or reasonably be
expected to result in a Material Adverse Effect. The Company owns, or has the right to use under the agreements or upon the terms described
on Schedule 3.1(o), to all of the Proprietary Assets and has taken all actions reasonable in light of its financial position to protect
the Proprietary Assets. Except as set forth on Schedule 3.1(o), the Company does not require any license or other agreement to use any
of the Proprietary Assets, except for licenses or agreements that can be obtained in the ordinary course of business without unreasonable
effort, delay, cost, or expense. The Company is not bound by or a party to any options, licenses, or agreements of any kind with respect
to the Intellectual Property Rights (as defined below) of any other Person and, to the Company's knowledge, there are no outstanding
options, licenses, or agreements of any kind relating to the Proprietary Assets. With respect to each item of the Company's Proprietary
Assets that any third party owns and that the Company uses pursuant to license, sublicense, agreement or permission: (i) the license,
as it relates to the Company is legal, valid, binding, enforceable, and in full force and effect in all material respects; (ii) the Company
is not, and to the Company's knowledge, no other party to the license, sublicense, agreement or permission is in material breach
or default, and no event has occurred which with notice or lapse of time or both would constitute a material breach or default or permit
termination, modification or acceleration thereunder; (iii) the Company has not, and to the Company's knowledge, no other party
to the license, sublicense, agreement or permission has repudiated any material provision thereof; and (iv) the Company has not granted
any sublicense or similar right with respect to the license, sublicense, agreement or permission other than as expressly permitted by
such license, sublicense, agreement or permission. Except as set forth on Schedule 3.1(o), to the Company's knowledge, no director,
officer, or stockholder of the Company owns any rights in any Intellectual Property Rights directly or indirectly competitive with those
owned or to be used by the Company or derived from or in connection with the conduct of the Company's business. Except as set forth
on Schedule 3.1(o), to the Company's knowledge it is not now necessary to use any inventions or works of authorship of its employees
made outside of their employment by the Company. Except as set forth on Schedule 3.1(o), the Company has obtained from all of the Company's
current and former officers, employees and consultants assignments to all inventions developed or conceived during their association
with the Company and relating to its business. The Company has not granted rights to manufacture, produce, assemble, license, market,
or sell its products to any other person. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications,
trademarks, trademark applications, service marks, trade names, copyrights, licenses and other similar rights necessary or material for
use in connection with their respective businesses and which the failure to so have could have a Material Adverse Effect (collectively,
the " <u>Intellectual Property Rights</u> "). The Company's Intellectual Property Rights are as set forth on Schedule
3.1 (o) hereto. Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property Rights used by the
Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all such Intellectual
Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights of
others

Page 13 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;p) <u>Insurance</u>.
 The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in
 such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged. To the best of the
 Company's knowledge, such insurance contracts and policies are accurate and complete in all material respects. Neither the Company
 nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage
 expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase
 in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;q) <u>Transactions With Affiliates and Employees</u>. Except as disclosed in the SEC Reports or as set forth
 on Schedule 3.1(q), none of the officers or directors of the Company or any Subsidiary and,
 to the knowledge of the Company or any Subsidiary , none of the employees of the Company
 or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary
 (other than for services as employees, officers and directors), including any contract, agreement
 or other arrangement providing for the furnishing of services to or by, providing for rental
 of real or personal property to or from, or otherwise requiring payments to or from any officer,
 director or such employee or, to the knowledge of the Company or any Subsidiary, any entity
 in which any officer, director, or any such employee has a substantial interest or is an
 officer, director, trustee or partner, in each case in excess of $10,000 other than (i) for
 payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses
 incurred on behalf of the Company or any Subsidiary and (iii) for other employee benefits,
 including stock option agreements under any stock option plan of the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;r) <u>Certain Fees</u>. Except as set forth on Schedule 3.1(r), no brokerage or finder's fees or
 commissions are or will be payable by the Company to any broker, financial advisor or consultant,
 finder, placement agent, investment banker, bank or other Person with respect to the transactions
 contemplated by this Agreement. The Purchaser shall have no obligation with respect to any
 fees or with respect to any claims made by or on behalf of other Persons for fees of a type
 contemplated in this Section that may be due in connection with the transactions contemplated
 by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;s) <u>Private Placement</u>. Assuming the accuracy of the Purchaser representations and warranties set
 forth in Section 3.2, no registration under the Securities Act is required for the offer
 and sale of the Securities by the Company and its Subsidiaries

to the Purchaser as contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;t) <u>Investment Company</u>. The Company, its Subsidiaries is not, and is not an Affiliate of, and immediately
 after receipt of payment for the Securities, will not be or be an Affiliate of, an "investment
 company" within the meaning of the Investment Company Act of 1940, as amended (the
 " <u>Investment Company Act</u> "). The Company, its Subsidiaries shall conduct
 its business in a manner so that it will not become subject to the Investment Company Act.

Page 14 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;u) <u>Registration Rights</u>. Except as contemplated by the transactions hereunder or as set forth on Schedule
 3.1(u), no Person has any right to cause the Company to effect the registration under the
 Securities Act of any securities of the Company.

v) Reserved.

w) <u>Disclosure</u>.
 All disclosure provided to the Purchaser regarding each of the Company, its Subsidiaries,
 its business and the transactions contemplated hereby, including the Disclosure Schedules
 to this Agreement, furnished by or on behalf of the Company, its Subsidiaries with respect
 to the representations and warranties made herein are true and correct with respect to such
 representations and warranties and do not contain any untrue statement of a material fact
 or omit to state any material fact necessary in order to make the statements made therein,
 in light of the circumstances under which they were made, not misleading. The Company and
 its Subsidiaries acknowledge and agree that the Purchaser makes no nor has made any representations
 or warranties with respect to the transactions contemplated hereby other than those specifically
 set forth in Section 3.2 hereof.

x) <u>No Integrated Offering</u>. Assuming the accuracy of the Purchaser' representations and
 warranties set forth in Section 3.2, neither the Company, nor any of its Subsidiaries or
 Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made
 any offers or sales of any security or solicited any offers to buy any security, under circumstances
 that would cause this offering of the Securities to be integrated with prior offerings by
 the Company or its Subsidiaries for purposes of the Securities Act or any applicable shareholder
 approval provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;y) <u>Solvency</u>.
 For purposes of this representation, the term the "Company" shall include all
 of its Subsidiaries. Based on the financial condition of the Company as of the Closing Date
 after giving effect to the receipt by the Company and its Subsidiaries of the proceeds from
 the sale of the Securities hereunder and the application of the proceeds thereof, (i) the
 Company's fair saleable value of its assets exceeds the amount that will be required
 to be paid on or in respect of the Company's existing debts and other liabilities (including
 known contingent liabilities) as they mature; (ii) the Company's assets do not constitute
 unreasonably small capital to carry on its business for the current fiscal year as now conducted
 and as proposed to be conducted including its capital needs taking into account the particular
 capital requirements of the business conducted by the Company's, and projected capital
 requirements and capital availability thereof; and (iii) the current cash flow of the Company,
 together with the proceeds the Company would receive, were it to liquidate all of its assets,
 after taking into account all anticipated uses of the cash, would be sufficient to pay all
 amounts on or in respect of its debt when such amounts are required to be paid. The Company
 does not intend to incur debts beyond its ability to pay such debts as they mature (taking
 into account the timing and amounts of cash to be payable on or in respect of its debt).
 The Company has no knowledge of any facts or circumstances which lead it to believe that
 it will file for reorganization or liquidation under the bankruptcy or reorganization laws
 of any jurisdiction within one year from the Closing Date. Schedule 3.1(g) sets forth all
 outstanding secured and unsecured Indebtedness of the Company, its Subsidiaries or for which
 any such party has commitments. For the purposes of this Agreement, " <u>Indebtedness</u> "
 shall mean (a) any liabilities for borrowed money or amounts owed in excess of $10,000 (other
 than trade accounts payable incurred in the ordinary course of business), (b) all guaranties,
 endorsements and other contingent obligations in respect of Indebtedness of others, whether
 or not the same are or should be reflected in such party's balance sheet (or the notes
 thereto), except guaranties by endorsement of negotiable instruments for deposit or collection
 or similar transactions in the ordinary course of business; and (c) the present value of
 any lease payments in excess of $10,000 due under leases required to be capitalized in accordance
 with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

Page 15 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;z) <u>Environmental Matters</u>. Except as set forth in Schedule 3.1(z), the Company and each its Subsidiaries
 (a) is in compliance with any and all Environmental Laws (as herein defined), (b) has received
 all permits, licenses or other approvals required of it under applicable Environmental Laws
 to conduct its respective businesses and (c) is in compliance with all terms and conditions
 of any such permit, license or approval, in each case except to the extent such noncompliance
 or non-receipt would not reasonably be expected to result in a Material Adverse Effect. The
 term " <u>Environmental Laws</u> " means all applicable federal, state, local or
 foreign laws relating to pollution or protection of human health or the environment (including,
 without limitation, ambient air, surface water, groundwater, land surface or subsurface strata),
 including, without limitation, laws relating to emissions, discharges, releases or threatened
 releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes
 (collectively, " <u>Hazardous Materials</u> ") into the environment, or otherwise
 relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
 transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees,
 demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders,
 permits, plans or regulations issued, entered, promulgated or approved thereunder.

---

| | |
|:---|:---|
| aa) | <u>Tax Status</u>. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon (except for those contested in good faith), and the Company have no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary. |

---

---

| | |
|:---|:---|
| bb) | <u>No General Solicitation</u>. Neither the Company, nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchaser and certain other "accredited investors" within the meaning of Rule 501 under the Securities Act. |

---

cc) <u>Foreign Corrupt Practices; Patriot Act, etc</u>. For purposes of this representation, the term the "Company" shall include all of its Subsidiaries. Neither The Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any corrupt funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

Page 16 of 33

The Company and its Subsidiaries are in compliance, in all material respects, with (a) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) the USA Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the "Act"). No part of the proceeds of the Note will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. None of the Company or any of its Subsidiaries is a Person named on a list published by OFAC or a Person with whom dealings are prohibited under any OFAC Regulations.

dd) <u>Seniority</u>. As of the Closing Date, except as set forth on Schedule 3.1(dd) hereto no Indebtedness (other than Permitted Indebtedness), equity or other security of the Company or the Subsidiaries is senior to, or *pari passu* with, the Notes in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise.

---

| | |
|:---|:---|
| ee) | <u>No Disagreements with Accountants and Lawyers</u>. There are no disagreements of any kind presently existing, or reasonably anticipated by the Company or any Subsidiary to arise, between the accountants and lawyers formerly or presently employed by the Company or any Subsidiary and, except as set forth on Schedule 3.1(ee), the Company and each Subsidiary is current with respect to any fees owed to its accountants and lawyers. By making this representation, each of the Company and its Subsidiaries does not, in any manner, waive the attorney/client privilege or the confidentiality of the communications between the Company and its Subsidiaries and its lawyers. The Company's accountants are set forth on Schedule 3.1(ee) of the Disclosure Schedule. To the knowledge of the Company, such accountants, who have expressed their opinion with respect to the financial statements for the year ended December 31, 2020, are a registered public accounting firm as required by the Securities Act. |

---

ff) <u>Rule 506(d) Bad Actor Disqualification Representations and Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Disqualification Events.</u> Neither the Company, nor any of its predecessors affiliates,
 any manager, executive officer, other officer of the Company or such Subsidiary participating
 in the offering, any beneficial owner (as that term is defined in Rule 13d-3 under the Exchange
 Act) of 20% or more of the Company's or such Subsidiaries' outstanding voting
 equity securities, calculated on the basis of voting power, nor any promoter (as that term
 is defined in Rule 405 under the Securities Act) connected with the Company or such Subsidiary
 in any capacity as of the date of this Agreement and on the Closing Date (each, a " <u>Company Covered Person</u> " and, together, " <u>Company Covered Persons</u> ") is
 subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i)
 to (viii) under the Securities Act (a " <u>Disqualification Event</u> "), except
 for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company and its Subsidiaries
 has exercised reasonable care to determine (i) the identity of each person that is a Company
 Covered Person; and (ii) whether any Company Covered Person is subject to a Disqualification
 Event. The Company and its Subsidiaries will comply with its disclosure obligations under
 Rule 506(e).

Page 17 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Other Covered Persons</u>. None of the Company and its Subsidiaries is aware of any person (other
 than any Company Covered Person) that has been or will be paid (directly or indirectly) remuneration
 in connection with the Note that is subject to a Disqualification Event (each an "Other
 Covered Person").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Reasonable Notification Procedures</u>. With respect to each Company Covered Person, the Company and
 its Subsidiaries has established procedures reasonably designed to ensure that they receive
 notice from each such Company Covered Person of (i) any Disqualification Event relating to
 that Company Covered Person, and (ii) any event that would, with the passage of time, become
 a Disqualification Event relating to that Company Covered Person; in each case occurring
 up to and including the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Notice of Disqualification Events</u>. The Company will notify the Purchaser immediately in writing
 upon becoming aware of (i) any Disqualification Event relating to any Company Covered Person
 and (ii) any event that would, with the passage of time, become a Disqualification Event
 relating to any Company Covered Person and/or Other Covered Person.

---

| | |
|:---|:---|
| hh) | <u>Reserved</u>. |
| ii) | <u>Sarbanes-Oxley; Internal Accounting Controls</u>. Except as disclosed in the SEC Reports, each of the Company and its Subsidiaries is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. The Company and the Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization, and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Each of the Company and its Subsidiaries has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and its Subsidiaries and designed such disclosure controls and procedures to ensure that material information relating to the Company, including its Subsidiaries, is made known to the certifying officers by others within those entities, particularly during the period in which the Company's most recently filed periodic report under the Exchange Act, as the case may be, is being prepared. The Company's certifying officers have evaluated the effectiveness of the Company's controls and procedures as of the date prior to the filing date of the most recently filed periodic report under the Exchange Act (such date, the "<u>Evaluation Date</u>"). The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no significant changes in the Company's (or any Subsidiary's) internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the Company's (or any Subsidiary's) knowledge, in other factors that could significantly affect the Company's (or any Subsidiary's) internal controls. The Company and its Subsidiaries have knowledge (upon receipt of the proceeds of this transaction) that the Company's independent public accountants have issued an audit letter containing a "going concern" opinion in connection with the Company's annual report on Form 10-K pursuant to Section 13 or 15(d) under the Exchange Act for the fiscal year ended December 31, 2021. |

---

Page 18 of 33

---

| | |
|:---|:---|
| jj) | <u>Variable Rate Securities</u>. Except as provided in the Note or as set forth in Schedule 3.1(jj), the Company has not directly and/or indirectly entered into, nor has any agreement, intention and/or obligation to enter into any Variable Rate Transaction. |
| kk) | <u>Disclosure Schedules</u>. References in this Section 3.1 to Disclosure Schedules shall qualify all applicable representations or warranties to which the subject matter of that Disclosure Schedule relates or may relate, regardless of whether such Disclosure Schedule is referenced directly in a corresponding representation or warranty or contained in different section of this Section 3.1. |
| ll) | <u>Subsidiary Carve-out</u>. The foregoing representations and warranties of the Company are qualified by the fact that neither the Company nor the Lender has conducted UCC lien searches or obtained certificates of good standing for any Subsidiary other than White River Holdings Corp. and White River Operating LLC in their respective jurisdiction of incorporation or formation, as applicable. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Representations and Warranties of the Purchaser</u>. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Organization; Authority</u>. The Purchaser is an entity duly organized under the laws of the jurisdiction of its organization with full right, corporate, limited liability company or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action on the part of the Purchaser. Each Transaction Document to which it is a party has been duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Purchaser Representation</u>. The Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable securities laws and has no arrangement or understanding with any other persons regarding the distribution of such Securities (this representation and warranty not limiting the Purchaser's right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws). Nothing contained herein shall be deemed a representation or warranty by such Purchaser to hold Securities for any period of time.

Page 19 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Purchaser Status</u>. At the time such Purchaser was offered the Securities, it was, and at the date hereof it is, and on each date on which it converts any of the Notes into shares of Common Stock it will be either: (i) an "accredited investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Experience of the Purchaser</u>. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>General Solicitation</u>. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) The execution and delivery of this Agreement by the Purchaser and the observance and performance of the terms and provisions of this Agreement on the part of the Purchaser to be observed and performed will not constitute a violation of applicable law or any provision of any contract or other instrument to which the Purchaser is a party or by which it is bound, or any order, writ, injunction, decree statute, rule or regulation applicable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) No insolvency proceedings of any character, including without limitation, bankruptcy, receivership, reorganization, composition or arrangement with creditors, voluntary or involuntary, designating the Purchaser as the bankrupt or the insolvent, are pending or, to the knowledge of the Purchaser, threatened and the Purchaser has not made an assignment for the benefit of creditors, nor has Purchaser taken any action with a view to, or which would constitute the basis for, the institution of any such insolvency proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) The Purchaser has no liability or obligation to pay fees or commissions to any broker, finder, or agent with respect to the transactions contemplated by this Agreement.

The Company and its Subsidiaries acknowledge and agree that the Purchaser does not make or have not made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in this Section 3.2.

Page 20 of 33

**OTHER AGREEMENTS OF THE PARTIES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1 <u>Transfer Restrictions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) The
 Purchaser acknowledges that the Securities may only be disposed of in compliance with state
 and federal securities laws. In connection with any transfer of Securities other than pursuant
 to an effective registration statement or Rule 144, to the Company or any Subsidiary or to
 an affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b),
 the Company may, at its expense, require the transferor thereof to provide to the Company
 an opinion of counsel selected by the transferor and reasonably acceptable to the Company,
 the form and substance of which opinion shall be reasonably satisfactory to the Company,
 to the effect that such transfer does not require registration of such transferred Securities
 under the Securities Act. As a condition of transfer, any such transferee shall agree in
 writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser
 under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) The
 Purchaser agrees to the imprinting, so long as is required by this Section 4.1(b), of a legend
 on any of the Securities in the following form:

NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [EXERCISABLE] [CONVERTIBLE] HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS THESE SECURITIES AND THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Certificates
 evidencing the shares of Common Stock underlying the Note shall not contain any legend (including
 the legend set forth in Section 4.1(b) hereof): (i) while a registration statement (including
 the Registration Statement) covering the resale of such security is effective under the Securities
 Act, or (ii) following any sale of such shares pursuant to Rule 144 , or (iii) if such shares
 are eligible for sale under Rule 144, or (iv) if such legend is not required under applicable
 requirements of the Securities Act (including judicial interpretations and pronouncements
 issued by the staff of the Commission). The Company shall, at its expense, cause its counsel
 to issue a legal opinion to the Company's transfer agent promptly after the Effective
 Date if required by the Company's transfer agent to effect the removal of the legend
 hereunder. If all or any portion of a Note is converted or Warrant is exercised at a time
 when there is an effective registration statement to cover the resale of the common shares,
 or if such common shares may be sold under Rule 144 or if such legend is not otherwise required
 under applicable requirements of the Securities Act (including judicial interpretations thereof
 and pronouncements issued by the staff of the Commission) then such common shares shall be
 issued free of all legends. The Company agrees that following the Effective Date or at such
 time as such legend is no longer required under this Section 4.1(c), it will, no later than
 two Business Days following the delivery by a Purchaser to the Company or the Company's
 transfer agent of a certificate representing common shares issued with a restrictive legend
 (such third Business Day, the " <u>Legend Removal Date</u> "), deliver or cause
 to be delivered to such Purchaser a certificate representing such shares that is free from
 all restrictive and other legends. Neither the Company may make any notation on its records
 or give instructions to any transfer agent of the Company that enlarge the restrictions on
 transfer set forth in this Section. Certificates for common shares subject to the legend
 removal hereunder shall be transmitted by the transfer agent of the Company to the Purchaser
 by crediting the account of the Purchaser' prime broker with the DTC.

Page 21 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) In
 addition to the Purchaser's other available remedies, the Company shall pay to each
 Purchaser, in cash, as partial liquidated damages and not as a penalty, $10 per Trading Day
 (increasing to $20 per Trading Day after the fifth Trading Day) for each Trading Day after
 the Legend Removal Date until such certificate is delivered without a legend. Nothing herein
 shall limit each Purchaser' right to pursue actual damages for the Company's
 failure to deliver certificates representing any Securities as required by the Transaction
 Documents, and each Purchaser shall have the right to pursue all remedies available to it
 at law or in equity including, without limitation, a decree of specific performance and/or
 injunctive relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) The
 Purchaser agrees that the removal of the restrictive legend from certificates representing
 Securities as set forth in this Section 4.1 is predicated upon the Company's reliance
 that such Purchaser will sell any Securities pursuant to either the registration requirements
 of the Securities Act, including any applicable prospectus delivery requirements, or an exemption
 therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Acknowledgment of Dilution</u>. The Company and its Subsidiaries acknowledge that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market conditions. The Company and its Subsidiaries further acknowledge that its obligations under the Transaction Documents, including without limitation its obligation to issue the shares underlying the Notes pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company or its Subsidiaries may have against any Purchaser and regardless of the dilutive effect that such issuance may have on the ownership of the other stockholders of the Company and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Furnishing of Information Rule 144 Availability.</u> As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to such Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for such Purchaser to sell the Securities under Rule 144. The Company further covenants that it will take such further action as any holder of Securities may reasonably request, all to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144.

Page 22 of 33

At all times from the date hereof through and including the date none of the Conversion Shares are outstanding (the "Required Period") the Company shall ensure each Purchaser can sell the pursuant to and in accordance with Rule 144 under the Securities Act. If, (i) at any time during the Required Period, the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) under the Securities Act (a "Public Information Failure"), or (ii) the Company shall fail to take such action as is reasonably requested by the Purchaser to enable the Purchaser to sell any of the shares received in connection with the Notes pursuant to Rule 144 under the Securities Act (including, without limitation, delivering all such legal opinions, consents, certificates, resolutions and instructions to the Company's transfer agent as may be reasonably requested from time to time by the Purchaser and otherwise fully cooperate with Purchaser and each Purchaser's broker to effect such sale of the shares of Common Stock received in connection with the conversion of the Notes pursuant to Rule 144 under the Securities Act) (a "Process Failure") then, in either case, in addition to the Purchaser's other available remedies, the Company shall pay to Purchaser, as liquidated damages and not as a penalty, by reason of any such delay in or reduction of its ability to sell the Conversion Shares, an amount in cash equal to two (2%) percent of up to the original aggregate principal amount of the Notes on the day of a Public Information Failure or Process Failure, as applicable, and on every thirtieth (30th) day (pro-rated for periods totaling less than thirty (30) days), thereafter, until (a) in the case of a Process Failure, the date such Process Failure is cured, or (b) in the case of a Public Information Failure, the date such Public Information Failure is cured. Notwithstanding anything to the contrary provided herein, liquidated damages for each Process Failure or Public Information Failure shall not commence to accrue for a period of 5 days from the date of any such Process Failure and/or Public Information Failure. The payments to which the Purchaser shall be entitled pursuant to this Section 4.3 are referred to herein as "Rule 144 Failure Payments". Rule 144 Failure Payments shall be paid on the earlier of (i) the last day of the calendar month during which such Rule 144 Failure Payments are incurred and (ii) the third (3rd) Trading Day after the event or failure giving rise to the Rule 144 Failure Payments is cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Integration</u>. The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchaser or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Securities Laws Disclosure; Publicity</u>. The Company shall (a) by 9:00 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a press release disclosing the material terms of the transactions contemplated hereby, and (b) file a Current Report on Form 8-K, including the Transaction Documents as exhibits thereto, with the Commission within the time required by the Exchange Act. From and after the issuance of such press release, the Company represents to the Purchaser that it shall have publicly disclosed all material, non-public information delivered to any of the Purchaser by the Company or any of its Subsidiaries, or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction Documents. In addition, effective upon the issuance of such press release, the Company acknowledges and agrees that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchaser or any of their Affiliates on the other hand, shall terminate. The Company and the Purchaser shall consult with each other in issuing any press releases with respect to the transactions contemplated hereby. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser, or include the name of the Purchaser in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of the Purchaser, except (i) as required by federal or state securities law and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide such Purchaser with notice of such disclosure permitted under subclause (i) or (ii).

Page 23 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Shareholder Rights Plan</u>. No claim will be made or enforced by the Company or its Subsidiaries or, to the knowledge of any such party, any other Person that any Purchaser is an "Acquiring Person" under any shareholder rights plan or similar plan or arrangement in effect or hereafter adopted by the Company or its Subsidiaries, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company any of its Subsidiaries and any Purchaser. The Company and its Subsidiaries shall conduct its business in a manner so that it will not become subject to the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Use of Proceeds</u>. The Company shall use the net proceeds from the sale of the Securities hereunder to advance oil and gas drilling projects and to pay fees and expenses (in each case satisfactory to the Investor) incurred in connection herewith. The Company may not use funds at any time to repay indebtedness, lend money, give credit or make advances to any officers, directors, employees, affiliates or debtholders of the Company or its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 <u>Filings for Subsidiaries</u>. No later than 30 days after Closing Date, the Company shall have made all filings necessary in Louisiana, Mississippi and any other state that is reasonably necessary so that all of the Subsidiaries are in good standing under the laws of their respective jurisdictions of incorporation or organization (as applicable) and in each jurisdiction in which it owns properties and/or assets or conducts business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 <u>Indemnification of Purchaser</u>. Subject to the provisions of this Section 4.9, the Company and its Subsidiaries will indemnify and hold the Purchaser and its directors, officers, shareholders, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees of such Person (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) (each, a "<u>Purchaser Party</u>") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation that any Purchaser Party may suffer or incur as a result of, arising from, or relating to (a) any breach of any of the representations, warranties, covenants (which remain uncured after any applicable cure period) or agreements made by the Company and its Subsidiaries in this Agreement or in the other Transaction Documents, (b) any failure by the Company to comply with the participation rights in this transaction of the holders of the Series C Convertible Preferred Stock and associated warrants, or (c) any action instituted against a Purchaser, or any of them or their respective Affiliates, by any stockholder of the Company or its Subsidiaries or who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (in each case unless such action is based upon a breach of such Purchaser' representation, warranties or covenants (which remain uncured after any applicable cure period) under the Transaction Documents or any agreements or understandings any Purchaser may have with any such stockholder or any violations by such Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence or willful misconduct). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, the Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of the Purchaser Party. The Company will not be liable to any Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by the Purchaser in this Agreement or in the other Transaction Documents.

Page 24 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 <u>Reservation and Listing of Securities</u>. At all times and as long as any of the Purchaser owns any Securities, the Company shall take all action necessary (and/or reasonably requested by the Purchaser) to at all times have authorized, and reserved out of its authorized but unissued shares of Common Stock for the purpose of issuance to the Purchaser upon conversions or in respect of interest on the Notes, no less than the three times (3x) the sum of the maximum number of Conversion Shares and shares issuable (including interest and original issue discount, and without taking into account any limitations on the issuance thereof) pursuant to the conversion of the Notes (the "Required Reserved Amount"). If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company's obligations under this Agreement and the Transaction Documents, in the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the Required Reserved Amount. The Company shall initially reserve 10 million shares of Common Stock on its own books and records (the "Reserve") for the issuance of Conversion Shares, and any other shares of Common Stock required to be issued by the Company to the Purchaser pursuant to the Transaction Documents, which initial reservation shall be authorized by the unanimous written consent of the Company's Board of Directors delivered at Closing. From and after the date of this Agreement through and including the date all of the Company's and each of its Subsidiaries' Indebtedness and all other obligations owed to the Purchaser pursuant to this Agreement and the other Transaction Documents, including, but not limited to, the Note is paid and performed in full, confirmation of which must be obtained by in writing from the Purchaser, the Company shall (a) issue or cause its Transfer Agent to issue the shares received on conversion or exercise or in respect of interest and all other shares of Common Stock required to be issued to such Purchaser or its broker only (subject to the immediately following clause (b)), (b) issue or cause its Transfer Agent to issue shares of Common Stock to such Purchaser or its broker under the Notes from sources other than the Reserve, unless such Purchaser delivers to the Company written pre-approval of such issuance from the Reserve, and (c) not reduce the Reserve under any circumstances, unless such Purchaser delivers to the Company written pre-approval of such reduction. The Company shall immediately add shares of Common Stock to the Reserve to ensure that the Required Reserve Amount (the greater of (i) and (ii) being the "Reserve Minimum") are in the Reserve at all times. The Company shall increase the amount of shares of Common Stock in the Reserve upon receipt of written notice, which may be in email form, by such Purchaser (and/or its assigns) in order to ensure that the Reserve contains the Reserve Minimum and/or at any time the number of shares in the Reserve is less than the Reserve Minimum. Notwithstanding to the contrary provided herein or elsewhere, if at any time the number of shares of Common Stock in the Reserve, is less than the Required Reserved Amount, such Purchaser may send written notice to the Company's then Transfer Agent to increase out of the Borrower's authorized but unissued shares of Common Stock in such number of additional shares of Common Stock so the Reserve consists of at least the Required Reserve Amount, provided, that the number of shares of Common Stock in the Reserve shall never be decreased or used for any other purposes other than for issue to the Holder upon each conversion by such Purchaser of the Notes. As a condition to Closing, all actions required by the Company in this Section shall be approved by the unanimous written consent of the Company's Board of Directors which shall be delivered to the Purchaser at Closing.

Page 25 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.11 <u>Subsequent Equity Sales</u>. In addition to the limitations set forth herein, from the date hereof until such time as no Purchaser holds any of the Securities, the Company shall be prohibited from effecting or entering into an agreement to effect any Subsequent Financing involving a "<u>Variable Rate Transaction</u>" or an "<u>MFN Transaction</u>" (each as defined below). The term "<u>Variable Rate Transaction</u>" shall mean a transaction in which the Company issues or sells (i) any debt or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock (other than standard anti-dilution provisions) or (ii) enters into any agreements, including but not limited to an equity line of credit, whereby the Company may sell securities at a future determined price tied to the market price of the Common Stock. The term "<u>MFN Transaction</u>" shall mean a transaction in which the Company issues or sells any securities in a capital raising transaction or series of related transactions which grants to an investor the right to receive additional shares based upon future transactions of the Company on terms more favorable than those granted to such investor in such offering. Any Purchaser shall be entitled to obtain injunctive relief against the Company to preclude any such issuance, which remedy shall be in addition to any right to collect damages. Notwithstanding the foregoing, this Section 4.11 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction or MFN Transaction shall be an Exempt Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.12 <u>Equal Treatment of Purchaser</u>. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of principal or interest on the Notes in amounts which are disproportionate to the respective principal amounts outstanding on the Notes at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the Company to treat the Purchaser as a class and shall not in any way be construed as the Purchaser acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.13 <u>Form D; Blue Sky Filings.</u> The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchaser at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.14 <u>Most Favored Nations</u>. Until such time as the Company has consummated a Qualified Offering, if the Company engages in any future financing transactions with a third-party investor, the Company will provide the Holder with written notice (the "<u>MFN Notice</u>") thereof promptly but in no event less than 10 days prior to closing any financing transactions. Included with the MFN Notice shall be a copy of all documentation relating to such financing transaction and shall include, upon written request of the Holder, any additional information related to such subsequent investment as may be reasonably requested by the Holder. In the event the Holder determines that the terms of the subsequent investment are preferable in any respect to the terms of the Securities of the Company issued to the Holder pursuant to the terms of the Purchase Agreement, the Holder will notify the Company in writing. Promptly after receipt of such written notice from the Holder, the Company agrees to amend and restate the Securities, and, as necessary, adjust the number of bonus shares, to include the preferable term contained in the instruments evidencing the subsequent investment and any bonus shares issued in connection therewith.

Page 26 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.15. <u>Right of Participation.</u>

At any time within the 12 months subsequent to the Closing, upon any issuance by the Company or any of its Subsidiaries of debt or Common Stock or Common Stock Equivalents for cash consideration, indebtedness or a combination of units thereof (a "Subsequent Financing"), the Purchaser shall have the right to participate in up to its investment amount but not more than 25% of the Subsequent Financing (the "Participation Maximum") on the same terms, conditions and price provided for in the Subsequent Financing. At least five (5) Business Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written notice of its intention to effect a Subsequent Financing ("Pre-Notice"), which Pre-Notice shall ask the Purchaser if it wants to review the details of such financing (such additional notice, a "Subsequent Financing Notice"). Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall promptly, but no later than one (1) Business Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons through or with whom such Subsequent Financing is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment. A Subsequent Financing shall exclude any equipment financing secured by a purchase money security interest

If the Purchaser desires to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Purchaser has received the Pre-Notice that such Purchaser is willing to participate in the Subsequent Financing, the amount of such Purchaser's participation, and representing and warranting that such Purchaser has such funds ready, willing, and available for investment on the from the Purchaser as of such fifth (5<sup>th</sup>) Business Day, the Purchaser shall be deemed to have notified the Company that it does not elect to participate.

If by 5:30 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Purchaser have received the Pre-Notice, notifications by the Purchaser of their willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may effect the remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.

If by 5:30 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Purchaser has received the Pre-Notice, the Company receives responses to a Subsequent Financing Notice from Purchaser seeking to purchase more than the aggregate amount of the Participation Maximum, the Purchaser shall have the right to purchase its pro rata portion of the Participation Maximum.

The Company must provide the Purchaser with a second Subsequent Financing Notice, and the Purchaser will again have the right of participation set forth above in this Section 4.15, if the Subsequent Financing subject to the initial Subsequent Financing Notice is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within thirty (30) Business Days after the date of the initial Subsequent Financing Notice.

The Company and the Purchaser agree that if the Purchaser elects to participate in the Subsequent Financing, the Company shall use its commercially reasonable efforts to ensure that the transaction documents related to the Subsequent Financing shall not include any term or provision whereby such Purchaser shall be required to agree to any restrictions on trading as to any of the Securities purchased hereunder or be required to consent to any amendment to or termination of, or grant any waiver, release or the like under or in terms set forth in the Subsequent Financing Notice.

Notwithstanding anything to the contrary in this Section 4.15and unless otherwise agreed to by the Purchaser, the Company shall either confirm in writing to the Purchaser that the transaction with respect to the Subsequent Financing has been abandoned or shall publicly disclose its intention to issue the securities in the Subsequent Financing, in either case in such a manner such that the Purchaser will not be in possession of any material, non-public information, by the tenth (10<sup>th</sup>) Business Day following delivery of the Subsequent Financing Notice. If by such tenth (10<sup>th</sup>) Business Day, no public disclosure regarding a transaction with respect to the Subsequent Financing has been made, and no notice regarding the abandonment of such transaction has been received by the Purchaser, such transaction shall be deemed to have been abandoned and the Purchaser shall not be deemed to be in possession of any material, non-public information with respect to the Company or any Subsequent Financing.

Page 27 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.16 <u>Directors' and Officers' and Key Man Insurance</u>. For so long as any of the Notes are outstanding, the Company shall retain (i) directors' and officers' insurance in amounts and on terms customary for companies in the same industry as the Company and (ii) key man insurance on Randy May and Jay Puchir in an amount at least equal to the Notes.

**MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Termination</u>. This Agreement may be terminated by the Purchaser or the Company by written notice to the to the Company or the Purchaser, if the Closing has not been consummated on or before December 31, 2022; provided that no such termination will affect the right of any party to sue for any breach by the other party (or parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Fees</u>. At the Closing, the Company has agreed to reimburse Purchaser (i) $25,000 (less any amounts previously received; such balance may be treated as proceeds advanced and added to the face of the Note) plus the cost of any third-party counsel required to secure any of the assets to be secured for legal expenses incurred in connection with the transaction, and (ii) all other costs and expenses incurred in connection with the due diligence and documentation of the transaction by the Purchaser (e.g., background checks (to the extent not provided to Purchaser), lien searches and UCC filings and mortgage filings, etc. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the issuance of any Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Entire Agreement</u>. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been incorporated into such documents, exhibits and schedules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via email or facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via email or facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (c) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Amendments; Waivers</u>. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of amendments, by the Company, and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise of any such right.

Page 28 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Construction</u>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder. Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions hereof that apply to such "Purchaser."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.09.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. The parties hereby waive all rights to a trial by jury. If the Purchaser shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then it shall be reimbursed by the Company for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Survival</u>. The representations and warranties contained herein shall survive for a period of 12 months following the Closing, the delivery of the Securities and the conversion or payment of the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Execution</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile signature page or data file were an original thereof.

Page 29 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Severability</u>. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company and its Subsidiaries does not timely perform their related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company , any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Replacement of Securities</u>. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company and its Subsidiaries shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with the issuance of such replacement Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <u>Payment Set Aside</u>. To the extent that the Company or its Subsidiaries makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, such Subsidiary, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <u>Usury</u>. To the extent it may lawfully do so, the Company and its Subsidiaries hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company and its Subsidiaries under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "<u>Maximum Rate</u>"), and, without limiting the foregoing, in no event shall any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company or any Purchaser to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by the Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the Company, the manner of handling such excess to be at the Purchaser's election.

Page 30 of 33

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <u>Liquidated Damages</u>. The Company's and its Subsidiaries obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and its Subsidiaries and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <u>Independent Nature of Purchaser's Obligations and Rights</u>. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchaser as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchaser are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. The Company has elected to provide all Purchaser with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <u>Customer Identification - USA Patriot Act Notice; OFAC and Bank Secrecy Act.</u> Each Purchaser hereby notifies the Company that pursuant to the requirements of the Act and such Purchaser's policies and practices, each Purchaser is required to obtain, verify and record certain information and documentation that identifies the Company, which information includes the name and addresses of Borrower and such other information that will allow the Purchaser to identify the Company in accordance with the Act. In addition, the Company shall (a) ensure that no person who owns a controlling interest in or otherwise controls the Company is or shall be listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by OFAC, the Department of the Treasury or included in any Executive Orders, (b) not use or permit the use of the proceeds of the Notes to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c) comply, and cause any of its Subsidiaries to comply, with all applicable Bank Secrecy Act ("BSA") laws and regulations, as amended.

*(Signature Pages Follow)*

Page 31 of 33

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

---

| | | |
|:---|:---|:---|
| **WHITE RIVER ENERGY CORP.** | **WHITE RIVER ENERGY CORP.** |  |
| By: | */s/ Jay Puchir* | <u>Address for Notice:</u> |
| Name: | Jay Puchir |  |
| Title: | Chief Executive Officer | 609 West Dickson St. Suite 102G, |
|  |  | Fayetteville, AR 72701 |
|  |  | Telephone: 843-364-8399 |
|  |  | Email: jpuchir@white-river.com |

---

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

Telephone:

Email:

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

Page 32 of 33

[PURCHASER SIGNATURE PAGES TO COMPANY, SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Investing Entity: <u>Smithline Family Trust I</u>____________________________________

*Signature of Authorized Signatory of Investing Entity*: *<u>/s/ Richard Smithline</u>*<u> </u>________________

Name of Authorized Signatory: <u>Richard L. Smithline</u>__________________________________

Title of Authorized Signatory: <u>Authorized</u> <u>Signatory</u>____________________________________

Email Address of Authorized Entity:_______________________________________________

Address for Notice of Investing Entity:

Address for Delivery of Securities for Investing Entity (if not same as above):

Subscription Amount: $1,500,000

Principal Amount of Notes: $1,666,666.67

Page 33 of 33

## Exhibit 10.21

**Exhibit 10.21**

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

Original Issue Date: December 16, 2022

$1,666,666.67

**10% ORIGINAL ISSUE DISCOUNT SENIOR SECURED CONVERTIBLE NOTE**

**DUE SEPTEMBER 16, 2023**

THIS 10% ORIGINAL ISSUE DISCOUNT SENIOR SECURED NOTE is one of a series of duly authorized and validly issued 10% Original Issue Discount Senior Secured Convertible Notes of White River Energy Corp, a Nevada corporation (the "Company"), having its principal place of business at 609 West Dickson St. Suite 102G, Fayetteville, AR 72701, designated as its 10% Original Issue Discount Senior Secured Convertible Note due on the Maturity Date (defined below) (this Note, the " <u>Note</u> " and, collectively with the any other Notes of such series, the " <u>Notes</u>"). The Notes shall be convertible into shares of common stock of the Company.

FOR VALUE RECEIVED, the Company promises to pay to SMITHLINE FAMILY TRUST I, a New York family trust, or its registered assigns (the "<u>Holder</u>"), or shall have paid pursuant to the terms hereunder, the principal sum of $1,666,666.67 on the date that is nine months from the Original Issuance Date (the " <u>Maturity Date</u> ") or such earlier date as this Note is required or permitted to be repaid as provided hereunder, and to pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note in accordance with the provisions hereof. This Note is subject to the following additional provisions:

<u>Section 1</u>. <u>Definitions</u>. For the purposes hereof, in addition to the terms defined elsewhere in this Note, (a) capitalized terms not otherwise defined herein shall have the meanings set forth in the Purchase Agreement, and (b) the following terms shall have the following meanings below.

"<u>Alternate Consideration</u>" shall have the meaning set forth in Section 5(e).

"<u>Bankruptcy Event</u>" means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the Company or any Significant Subsidiary thereof , (b) there is commenced against the Company or any Significant Subsidiary thereof any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered, (d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant Subsidiary thereof or makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts or (g) the Company or any Significant Subsidiary thereof , by any act or failure to act, expressly indicates its consent to, approval of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

"<u>Base Conversion Price</u>" shall have the meaning set forth in Section 5(b).

"<u>Beneficial Ownership Limitation</u>" shall have the meaning set forth in Section 4(c).

"<u>Business Day</u>" means any day except any Saturday, any Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

"<u>Buy-In</u>" shall have the meaning set forth in Section 4(d)(v).

"<u>Change of Control Transaction</u>" shall have the meaning set forth in the Purchase Agreement.

"<u>Closing Bid Price</u>" means on any particular date (a) the last reported closing bid price per share of Common Stock on such date on the Trading Market (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (b) if there is no such price on such date, then the closing bid price on the Trading Market on the date nearest preceding such date (as reported by Bloomberg L.P. at 4:15 p.m. (New York City time)), or (c) if the Common Stock is not then listed or quoted on a Trading Market and if prices for the Common Stock are then reported in the "pink sheets" published by the OTC Pink Markets (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) if the shares of Common Stock are not then publicly traded the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

"<u>Conversion</u>" shall have the meaning ascribed to such term in Section 4.

"<u>Conversion Date</u>" shall have the meaning set forth in Section 4(a).

"<u>Conversion Price</u>" shall have the meaning set forth in Section 4(b).

"<u>Conversion Schedule</u>" means the Conversion Schedule in the form of <u>Schedule 1</u> attached hereto.

"<u>Conversion Shares</u>" means, collectively, the shares of common stock, of the Company issuable upon conversion of this Note in accordance with the terms hereof.

"<u>Note Register</u>" shall have the meaning set forth in Section 2(c).

"<u>Dilutive Issuance</u>" shall have the meaning set forth in Section 5(b).

"<u>Dilutive Issuance Notice</u>" shall have the meaning set forth in Section 5(b).

"<u>Effectiveness Period</u>" shall have the meaning set forth in the Registration Rights Agreement.

"<u>Event of Default</u>" shall have the meaning set forth in Section 8(a).

"<u>Exempt Issuance</u>" means the issuance of (a) shares of Common Stock, restricted stock units, or options to purchase shares of Common Stock to employees, officers or directors or consultants of the Company pursuant to any stock or option plan duly adopted by the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established for such purpose, (b) shares of Common Stock issuable upon exercise, conversion or pursuant to the terms of the Securities, or convertible securities, options or warrants issued and outstanding on the date of this Agreement, provided that such securities have not been amended since the date of this Agreement to increase the number of such securities or to decrease the exercise, exchange or conversion price of any such securities, (c) shares of Common Stock issued or issuable upon any anti-dilution adjustment (to the extent such provision has not been amended since the date hereof) to Common Stock and Common Stock Equivalents held by current security holders as of the date of this Note, (d) securities issued to any underwriter, placement agent or other registered broker-dealer as reasonable commissions or fees in connection with any financing transactions, (e) securities issued pursuant to any purchase money equipment loan, capital leasing arrangement or debt financing from a commercial bank or similar financial institution, and (f) securities issued pursuant to acquisitions or strategic transaction, provided that any such issuance shall only be to a person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company and in which the Company receive benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities.

"<u>Fundamental Transaction</u>" shall have the meaning set forth in Section 5(e).

"<u>Interest Notice Period</u>" shall have the meaning set forth in Section 2(a).

"<u>Interest Payment Date</u>" shall have the meaning set forth in Section 2(a).

"<u>Late Fees</u>" shall have the meaning set forth in Section 2(d).

"<u>Majority Purchasers</u>" shall mean holders of 50% of the then outstanding principal amount of the Notes, so long as such 50% includes Smithline Family Trust I as lead investor.

"<u>Mandatory Default Amount</u>" means the sum of (a) 125% of the then outstanding principal amount of the Note, (b) accrued but unpaid interest through maturity and (c) all liquidated damages and other amounts due in respect of the Note.

"<u>Monthly Conversion Period</u>" shall have the meaning set forth in Section 6(b) hereof.

"<u>Monthly Conversion Price</u>" shall have the meaning set forth in Section 6(b) hereof.

"<u>Monthly Redemption</u>" means the redemption of this Note pursuant to Section 6(b) hereof.

"<u>Monthly Redemption Amount</u>" means, as to a Monthly Redemption, one-fourth of the original principal amount at 120% of such principal amount, plus accrued but unpaid interest, liquidated damages and any other amounts then owing to the Holder in respect of this Note.

"<u>Monthly Redemption Date</u>" means the 16th of each month, commencing immediately upon April 16, 2023 and terminating upon the full redemption of this Note.

"<u>Monthly Redemption Notice</u>" shall have the meaning set forth in Section 6(b) hereof.

"<u>New York Courts</u>" shall have the meaning set forth in Section 9(d).

"<u>Notice of Conversion</u>" shall have the meaning set forth in Section 4(a).

"<u>Optional Redemption</u>" shall have the meaning set forth in Section 6(a).

"<u>Optional Redemption Amount</u>" means at 120% of the principal amount thereof plus any unpaid accrued interest to the date of repayment, plus all other liquidated and other amounts due in respect of the Note.

"<u>Optional Redemption Date</u>" shall have the meaning set forth in Section 6(a).

"<u>Optional Redemption Notice</u>" shall have the meaning set forth in Section 6(a).

"<u>Optional Redemption Notice Date</u>" shall have the meaning set forth in Section 6(a).

"<u>Optional Redemption Period</u>" shall have the meaning set forth in Section 6(a).

"<u>Original Issue Date</u>" means the date of the first issuance of the Notes, regardless of any transfers of any Note and regardless of the number of instruments which may be issued to evidence such Notes.

"<u>Permitted Indebtedness</u>" means (a) the Indebtedness evidenced by the Notes (excluding any Notes issued pursuant to most favored nations or similar provisions), (b) indebtedness existing as of the date hereof, (c) lease obligations and purchase money indebtedness of up to $100,000, in the aggregate, incurred in connection with the acquisition of capital assets and lease obligations with respect to newly acquired or leased assets, (d) Indebtedness owed to any Person providing property, casualty, liability, or other insurance to the Debtor, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance for the period in which such Indebtedness is incurred and such Indebtedness is outstanding only during such period, (e) intercompany loan so long as the party receiving the loan is a majority-owned or wholly-owned subsidiary of the Company or a Subsidiary and a guarantor of the Notes, (f) Indebtedness incurred in respect of credit cards, credit card processing services, debit cards, stored value cards, purchase cards (including so-called "procurement cards" or "P-cards") or other similar cash management services, in each case, incurred in the ordinary course of business, (g) investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business, (h) advances made in connection with purchases of goods or services in the ordinary course of business; and (i) unsecured indebtedness that is expressly subordinate to the Notes pursuant to a written subordination agreement with the Purchasers that is acceptable to each Purchaser in its sole and absolute discretion.

"<u>Permitted Lien</u>" means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established in accordance with GAAP; (b) Liens imposed by law which were incurred in the ordinary course of the Company's business, such as carriers', warehousemen's and mechanics' Liens, statutory landlords' Liens, and other similar Liens arising in the ordinary course of the Company's business, and which (x) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Company or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien; (c) deposits and pledges of cash securing (i) obligations incurred in respect of workers' compensation, unemployment insurance or other forms of governmental insurance or benefits, (ii) the performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory obligations or (iii) obligations on surety or appeal bonds, but only to the extent such deposits or pledges are made or otherwise arise in the ordinary course of business and secure obligations not past due; (d) easements, zoning restrictions and similar encumbrances on real property and minor irregularities in the title thereto that do not (i) secure obligations for the payment of money or (ii) materially impair the value of such property or its use by the Company or any of its Subsidiaries in the normal conduct of such Person's business; (e) Liens securing the title and interest of a lessor or sublessor in and to personal property leased or subleased (other than through a capitalized lease), in each case extending only to such personal property; (f) non-exclusive licenses of intellectual property rights in the ordinary course of business; (g) judgment liens (other than for the payment of taxes, assessments or other governmental charges) securing judgments and other proceedings not constituting an Event of Default under this Note; (h) rights of set-off or bankers' liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit accounts in the ordinary course of business; and (i) Liens incurred in connection with Permitted Indebtedness incurred under clauses (a) and (b) thereunder.

"<u>Purchase Agreement</u>" means the Securities Purchase Agreement, dated as of December 16, 2022 between the Company, and the original Holder, as amended, modified or supplemented from time to time in accordance with its terms.

"<u>Qualified Offering</u>" means an offering of equity or debt securities for gross proceeds to the Company of not less than $5.0 million.

"<u>Registration Rights Agreement</u>" means the Registration Rights Agreement, dated as of the date of the Purchase Agreement, between the Company, and the original Holder, as amended, modified or supplemented from time to time in accordance with its terms.

"<u>Registration Statement</u>" means a registration statement that registers the resale of all Conversion Shares and the Shares, names the Holder as a "selling stockholder" therein, and meets the requirements of the Registration Rights Agreement.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

"<u>Share Delivery Date</u>" shall have the meaning set forth in Section 4(d)(ii).

"<u>Shares</u>" means the shares of common stock, par value 0.00001 per share, of the Company.

"<u>Subsidiary</u>" shall have the meaning set forth in the Purchase Agreement.

"<u>VWAP</u>" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)); (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the "Pink Sheets" published by the OTC Pink Market (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected to in good faith by the Holder and reasonably acceptable the Company.

<u>Section 2</u>. <u>Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Payment of Interest in Cash</u>. The Company shall pay interest to the Holder on the aggregate unconverted and then outstanding principal amount of this Note at the rate of 12% per annum, payable monthly, on the 16th calendar day of each month, beginning on January 16, 2023 and on the Maturity Date (each such date, an "<u>Interest Payment Date</u>") (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the next succeeding Business Day), in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Interest Calculations</u>. Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30 calendar day periods, and shall accrue daily commencing on the Original Issue Date until payment in full of the outstanding principal, together with all accrued and unpaid interest, liquidated damages and other amounts which may become due hereunder, has been made. Interest hereunder will be paid to the Person in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note (the "<u>Note Register</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Late Fee</u>. In addition to all other amounts required to be paid to Holder hereunder, all overdue accrued and unpaid principal and interest to be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted by applicable law (the "<u>Late Fees</u>") which shall accrue daily from the date such principal and interest is due hereunder through and including the date of actual payment in full.

<u>Section 3.</u> <u>Registration of Transfers and Exchanges</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Different Denominations</u>. This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration of transfer or exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Investment Representations</u>. This Note has been issued subject to certain investment representations of the original Holder set forth in the Purchase Agreement and may be transferred or exchanged only in compliance with the Purchase Agreement and applicable federal and state securities laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Reliance on Note Register</u>. Prior to due presentment for transfer to the Company of this Note, the Company and any agent of the Company may treat the Person in whose name this Note is duly registered on the Note Register as the owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Note is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

<u>Section 4.</u> <u>Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Voluntary Conversion</u>. At any time after the Original Issue Date until this Note is no longer outstanding, this Note shall be convertible, in whole or in part, into shares of common stock of the Company (the "Common Stock") at the option of the Holder, at any time and from time to time (subject to the conversion limitations set forth in Section 4(c) hereof). The Holder shall effect conversions by delivering to the Company a Notice of Conversion, the form of which is attached hereto as <u>Annex A</u> (each, a "<u>Notice of Conversion</u>"), specifying therein the principal amount of this Note to be converted and the date on which such conversion shall be effected (such date, the "<u>Conversion Date</u>"). If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is deemed delivered hereunder. To effect conversions hereunder, the Holder shall not be required to physically surrender this Note to the Company unless the entire principal amount of this Note, plus all accrued and unpaid interest thereon, has been so converted. Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Note in an amount equal to the applicable conversion. The Holder and the Company shall maintain records showing the principal amount(s) converted and the date of such conversion(s). The Company may deliver an objection to any Notice of Conversion within two Business Days of delivery of such Notice of Conversion. In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error. **The Holder, and any assignee by acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a portion of this Note, the unpaid and unconverted principal amount of this Note may be less than the amount stated on the face hereof.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Conversion Price</u>. The Notes shall be convertible at the option of the Holder into shares of Common Stock of the Company at the lesser of (i) $1.00 per share and (ii) the average of the five-closing prices of the Common Stock immediately prior to the date of conversion ((as adjusted hereunder, the "<u>Conversion Price</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Conversion Limitations</u>. Notwithstanding anything herein to the contrary, the Company shall not effect any conversion of this Note, and a Holder shall not have the right to convert any portion of this Note, to the extent that after giving effect to the conversion set forth on the applicable Notice of Conversion, the Holder (together with the Holder's Affiliates, and any other person or entity acting as a group together with the Holder or any of the Holder's Affiliates) would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted principal amount of this Note beneficially owned by the Holder or any of its Affiliates and (B) exercise or conversion of the unexercised or unconverted portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained herein (including, without limitation, any other Notes) beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 4(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. To the extent that the limitation contained in this Section 4(c) applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder together with any Affiliates) and of which principal amount of this Note is convertible shall be in the sole discretion of the Holder, and the submission of a Notice of Conversion shall be deemed to be the Holder's determination of whether this Note may be converted (in relation to other securities owned by the Holder together with any Affiliates) and which principal amount of this Note is convertible, in each case subject to the Beneficial Ownership Limitation. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 4(c), in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding shares of Common Stock as stated in the most recent of the following: (A) the Company's most recent periodic or annual report, as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent notice by the Company or the Company's transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Note, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The "<u>Beneficial Ownership Limitation</u>" shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon conversion of this Note held by the Holder. The Holder, upon not less than 61 days' prior notice to the Company , may increase or decrease the Beneficial Ownership Limitation provisions of this Section 4(c), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon conversion of this Note held by the Holder and the Beneficial Ownership Limitation provisions of this Section 4(c) shall continue to apply. Any such increase or decrease will not be effective until the 61<sup>st</sup> day after such notice is delivered to the Company. The Beneficial Ownership Limitation provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 4(c) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation contained herein or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Mechanics of Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Conversion Shares Issuable Upon Conversion of Principal Amount</u>. Subject to Section 4(d)(vii), the number of Conversion Shares issuable upon a conversion hereunder shall be determined by the quotient obtained by dividing (x) the outstanding principal amount of this Note to be converted by (y) the Conversion Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of Certificate Upon Conversion</u>. Not later than two Trading Days after each Conversion Date (the "<u>Share Delivery Date</u>"), the Company shall deliver, or cause to be delivered, to the Holder (A) a certificate or certificates representing the Conversion Shares which, on or after the earlier of (i) the six month anniversary of the Original Issue Date or (ii) the Effective Date, shall be free of restrictive legends and trading restrictions (other than those which may then be required by the Purchase Agreement) representing the number of Conversion Shares being acquired upon the conversion of this Note and (B) a bank check in the amount of accrued and unpaid interest. On or after the earlier of (i) the six-month anniversary of the Original Issue Date or (ii) the Effectiveness Date (as defined in the Registration Rights Agreement), the Company shall use its commercially reasonable efforts to deliver any certificate or certificates required to be delivered by the Company under this Section 4(d) free of restrictive legends and trading restrictions electronically through the Depository Trust Company or another established clearing corporation performing similar functions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Failure to Deliver Certificates</u>. If in the case of any Notice of Conversion such certificate or certificates are not delivered to or as directed by the applicable Holder by the second Trading Day after the Conversion Date, the Holder shall be entitled to elect by written notice to the Company at any time on or before its receipt of such certificate or certificates, to rescind such Conversion, in which event the Company shall promptly return to the Holder any original Note delivered to the Company and the Holder shall promptly return to the Common Stock certificates representing the principal amount of this Note unsuccessfully tendered for conversion to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Obligation Absolute; Partial Liquidated Damages</u>. If the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant to Section 4(f)(ii) by the second Trading Day after the Conversion Date, for each $1,000 of principal amount being converted, the Company shall pay to such Holder, in cash, as liquidated damages and not as a penalty, of $10 for each Trading Day after such second Trading Day (increasing to $20 per Trading Day after the fifth Trading Day) until such certificates are delivered. In addition, if the Company fails to deliver instructions to the Transfer Agent by the day required above, the Company shall be required to pay an additional amount in cash, as liquidated damages and not as a penalty, of $10 for each date until such notice is given to the Transfer Agent as required. The Company's obligations to issue and deliver the Conversion Shares upon conversion of this Note in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any obligation to the Company or any violation or alleged violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise limit such obligation of the Company to the Holder in connection with the issuance of such Conversion Shares; <u>provided</u>, <u>however</u>, that such delivery shall not operate as a waiver by the Company of any such action the Company may have against the Holder. In the event a Holder of this Note shall elect to convert any or all of the outstanding principal amount hereof, the Company may not refuse conversion based on any claim that the Holder or any one associated or affiliated with the Holder of has been engaged in any violation of law, agreement or for any other reason, unless, an injunction from a court, on notice, restraining and or enjoining conversion of all or part of this Note shall have been sought and obtained and the Company posts a surety bond for the benefit of the Holder in the amount of 150% of the principal amount of this Note outstanding, which is subject to the injunction, which bond shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable to such Holder to the extent it obtains judgment. In the absence of an injunction precluding the same, the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section 8 herein for the Company's failure to deliver Conversion Shares within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holders from seeking to enforce damages pursuant to any other Section hereof or under applicable law. In the absence of such injunction, the Company shall issue Conversion Shares or, if applicable, cash, upon a properly noticed conversion. If the Company fails for any reason to deliver to the Holder such certificate or certificates pursuant to Section 4(d)(ii) by the second Trading Day after the Conversion Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of principal amount being converted, $10 per Trading Day (increasing to $20 per Trading Day on the fifth (5<sup>th</sup>) Trading Day after such liquidated damages begin to accrue) for each Trading Day after such third (3<sup>rd</sup>) Trading Day until such certificates are delivered. Nothing herein shall limit a Holder's right to pursue actual damages or declare an Event of Default pursuant to Section 8 hereof for the Company's failure to deliver Conversion Shares within the period specified herein and the Holder shall have the right to pursue all remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages pursuant to any other Section hereof or under applicable law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Conversion</u>. In addition to any other rights available to the Holder, if the Company fails for any reason to deliver to the Holder such certificate or certificates by the Share Delivery Date pursuant to Section 4(d)(ii), and if after such Share Delivery Date the Holder is required by its brokerage firm to purchase (in an open market transaction or otherwise), or the Holder's brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Conversion Shares which the Holder was entitled to receive upon the conversion relating to such Share Delivery Date (a "<u>Buy-In</u>"), then the Company shall (A) pay in cash to the Holder (in addition to any other remedies available to or elected by the Holder) the amount by which (x) the Holder's total purchase price (including any brokerage commissions) for the Common Stock so purchased exceeds (y) the product of (1) the aggregate number of shares of Common Stock that the Holder was entitled to receive from the conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to such purchase obligation was executed (including any brokerage commissions) and (B) at the option of the Holder, either reissue (if surrendered) this Note in a principal amount equal to the principal amount of the attempted conversion or deliver to the Holder the number of shares of Common Stock that would have been issued if the Company had timely complied with its delivery requirements under Section 4(d)(ii). For example, if the Holder purchases Common Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted conversion of this Note with respect to which the actual sale price of the Conversion Shares (including any brokerage commissions) giving rise to such purchase obligation was a total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver certificates representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Reservation of Shares Issuable Upon Conversion</u>. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note, as herein provided, free from preemptive rights or any other actual contingent purchase rights of Persons other than the Holder (and the other holders of the Notes), not less than three times the sum of (i) the aggregate number of shares of the Common Stock as shall (subject to the terms and conditions set forth in the Purchase Agreement) issuable (taking into account the adjustments and restrictions of Section 5) upon the conversion of the outstanding principal amount of this Note and payment of interest hereunder and (ii) the number of Shares issuable to Holder pursuant to the Transaction Documents. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable and, if the Registration Statement is then effective under the Securities Act, shall be registered for public sale in accordance with such Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Fractional Shares</u>. No fractional shares or scrip representing fractional shares shall be issued upon the conversion of this Note. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such conversion, the Company shall at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Conversion Price or round up to the next whole share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. <u>Transfer Taxes</u>. The issuance of certificates for shares of the Common Stock on conversion of this Note shall be made without charge to the Holder hereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificates, provided that, the Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of this Note so converted and the Company shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Company the amount of such tax or shall have established to the satisfaction of the Company that such tax has been paid.

<u>Section 5</u>. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Stock Splits</u>. If the Company, at any time while this Note is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions payable in shares of Common Stock or shares of Common Stock or any Common Stock Equivalents (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon conversion of, or payment of interest on, the Notes), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of a reverse stock split) outstanding shares of Common Stock into a smaller number of shares or (iv) issues, in the event of a reclassification of shares of the Common Stock, any shares of capital stock of the Company, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding any treasury shares of the Company) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of holders of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Subsequent Equity Sales</u>. If, at any time while this Note is outstanding, the Company sells or grants any option to purchase or sells or grants any right to reprice, or otherwise disposes of or issues (or announces any sale, grant or any option to purchase or other disposition), any common stock or common stock equivalents entitling any Person to acquire shares of common stock at an effective price per share that is lower than the then Conversion Price (such lower price, the "<u>Base Conversion Price</u>" and such issuances, collectively, a "<u>Dilutive Issuance</u>") (if the holder of the common stock or common stock equivalents so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights per share which are issued in connection with such issuance, be entitled to receive shares of common stock at an effective price per share that is lower than the Conversion Price, such issuance shall be deemed to have occurred for less than the Conversion Price on such date of the Dilutive Issuance), then the Conversion Price shall be reduced to equal the Base Conversion Price. Such adjustment shall be made whenever such common stock or common stock equivalents are issued. Notwithstanding the foregoing, no adjustment will be made under this Section 5(b) in respect of an Exempt Issuance. If the Company enters into a Variable Rate Transaction, despite the prohibition set forth in the Purchase Agreement, the Company shall be deemed to have issued common stock or common stock equivalents at the lowest possible conversion price at which such securities may be converted or exercised. The Company shall notify the Holder in writing, no later than 1 Business Day following the issuance of any Common Stock or Common Stock Equivalents subject to this Section 5(b), indicating therein the applicable issuance price, or applicable reset price, exchange price, conversion price and other pricing terms (such notice, the "<u>Dilutive Issuance Notice</u>"). For purposes of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to this Section 5(b), upon the occurrence of any Dilutive Issuance, the Holder is entitled to receive a number of Conversion Shares based upon the Base Conversion Price on or after the date of such Dilutive Issuance, regardless of whether the Holder accurately refers to the Base Conversion Price in the Notice of Conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Subsequent Rights Offerings</u>. If the Company, at any time while the Note is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and not to Holders) entitling them to subscribe for or purchase shares of Common Stock at a price per share that is lower than the then Conversion Price , then the Conversion Price shall be multiplied by a fraction of which the denominator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights or warrants plus the number of additional shares of Common Stock offered for subscription or purchase, and of which the numerator shall be the number of shares of the Common Stock outstanding on the date of issuance of such rights or warrants plus the number of shares which the aggregate offering price of the total number of shares so offered (assuming delivery to the Company in full of all consideration payable upon exercise of such rights, options or warrants) would purchase at such price. Such adjustment shall be made whenever such rights or warrants are issued, and shall become effective immediately after the record date for the determination of stockholders entitled to receive such rights, options or warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Pro Rata Distributions</u>. If the Company, at any time while this Note is outstanding, distributes to all holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security (other than the Common Stock, which shall be subject to Section 5(b)), then in each such case the Conversion Price shall be adjusted by multiplying such Conversion Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the lower of (i) the closing price of the Common Stock or (ii) the VWAP determined as of the record date mentioned above, and of which the numerator shall be such then price of the Common Stock or the VWAP on such record date less the then fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors of the Company in good faith. In either case the adjustments shall be described in a statement delivered to the Holder describing the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Fundamental Transaction</u>. If, at any time while this Note is outstanding, (i) the Company effects any merger or consolidation of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one transaction or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (iv) the Company effects any reclassification of Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a "<u>Fundamental Transaction</u>"), then, upon any subsequent conversion of this Note, the Holder shall have the right to receive, for each Conversion Share that would have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same kind and amount of securities, cash or property as it would have been entitled to receive upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such Fundamental Transaction, the holder of one share of Common Stock (the "<u>Alternate Consideration</u>"). For purposes of any such conversion, the determination of the Conversion Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of one share of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any conversion of this Note following such Fundamental Transaction. To the extent necessary to effectuate the foregoing provisions, any successor to the Company or surviving entity in such Fundamental Transaction shall issue to the Holder a new Note consistent with the foregoing provisions and evidencing the Holder's right to convert such Note into Alternate Consideration. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 5(e) and insuring that this Note (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Calculations</u>. All calculations under this Section 5 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 5, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding any treasury shares of the Company) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Notice to the Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Adjustment to Conversion Price</u>. Whenever the Conversion Price is adjusted pursuant to any provision of this Section 5, the Company shall promptly deliver to each Holder a notice setting forth the Conversion Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Conversion by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock of rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any holders of stockholders of the Company or shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company , of any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company , then, in each case, the Company shall cause to be filed at each office or agency maintained for the purpose of conversion of this Note, and shall cause to be delivered to the Holder at its last address as it shall appear upon the Note Register, at least twenty (20) calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange, provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. The Holder is entitled to convert this Note during the 20-day period commencing on the date of such notice through the effective date of the event triggering such notice.

<u>Section 6</u>. <u>Redemption; Automatic Conversion</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Optional Redemption at Election of Company</u>. Subject to the provisions of this Section 6(a), at any time after Original Issue Date and prior to the Maturity Date, the Company may, deliver a written notice to the Holder (an "<u>Optional Redemption Notice</u>" and the date such notice is deemed delivered hereunder, the "<u>Optional Redemption Notice Date</u>") of its irrevocable election, unless waived by the Holder, to redeem all of the then outstanding principal amount of this Note for cash in an amount equal to the Optional Redemption Amount on the 20<sup>th</sup> Trading Day following the Optional Redemption Notice Date (such date, the "<u>Optional Redemption Date</u>", such 20 Trading Day period, the "<u>Optional Redemption Period</u>" and such redemption, the "<u>Optional Redemption</u>"). The Optional Redemption Amount is payable in full on the Optional Redemption Date. The Company covenants and agrees that it will honor all Notices of Conversion tendered from the time of delivery of the Optional Redemption Notice through the date all amounts owing thereon are due and paid in full. The Company's determination to pay an Optional Redemption in cash shall be applied ratably to all of the holders of the then outstanding Notes based on their (or their predecessor's) initial purchases of Notes pursuant to the Purchase Agreement. In the event of any such attempt to repay the Notes, the Holder shall have the right to convert the Notes prior to the date of any such prepayment in accordance with the conversion mechanics set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Monthly Redemption</u>. On each Monthly Redemption Date, the Company shall redeem the Monthly Redemption Amount (the "<u>Monthly Redemption</u>") , and upon the payment of each such Monthly Redemption, the accrued interest, principal and other amounts then outstanding under this Note shall be reduced at 100% (as compared to the 120%) of the principal amount so repaid. The Monthly Redemption Amount payable on each Monthly Redemption Date shall be paid in cash Holder may convert, pursuant to Section 4(a), any principal amount of this Note subject to a Monthly Redemption at any time prior to the date that the Monthly Redemption Amount, plus accrued but unpaid interest, liquidated damages and any other amounts then owing to the Holder are due and paid in full.

Any principal amount of this Note converted during the applicable Monthly Conversion Period in excess of the Monthly Redemption Amount shall be applied against the last principal amount of this Note scheduled to be redeemed hereunder, in reverse time order from the Maturity Date. The Company covenants and agrees that it will honor all Notices of Conversion tendered up until such amounts are paid in full. The Company's determination to pay a Monthly Redemption shall be applied ratably to all of the holders of the then outstanding Notes based on their (or their predecessor's) initial purchases of Notes pursuant to the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Redemption Procedure</u>. The payment of cash pursuant to an Optional Redemption or a Monthly Redemption shall be payable on the Optional Redemption Date and Monthly Redemption Date, as applicable. If any portion of the payment pursuant to an Optional Redemption or Monthly Redemption shall not be paid by the Company by the applicable due date, and Event of Default shall be deemed to have occurred under the Notes. Notwithstanding anything to the contrary in this Section 6, the Company's determination to redeem in cash under Section 6(a) or its obligation to redeem under Section 6(b) shall be applied ratably among the Holders of Notes. The Holder may elect to convert the outstanding principal amount of the Note pursuant to Section 4 prior to actual payment in cash for any redemption under this Section 6 by the delivery of a Notice of Conversion to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Fractional Shares</u>. No fractional shares are to be issued upon the conversion of this Note, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. To the extent that rounding up to the nearest whole number would result in a violation of Section 4(d)(vi), the Company shall pay the applicable converting Holder an amount in cash equal to the fractional share amount multiplied by the Closing Bid Price for the Common Stock on the such date of conversion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Mandatory Prepayment</u>. The Company shall be required to offer to prepay in cash the aggregate principal amount of the Notes at 120% of the principal amount thereof plus any unpaid accrued interest to the date of repayment, on the sale of assets of the Company or its Subsidiaries or upon a Change of Control, or on a Qualified Offering and at Maturity. In such an event, the Investor(s) shall have the right to convert the Notes prior to the date of any such prepayment in accordance with any of the conversion mechanics as set forth in the Notes. Such payment shall be made on the date of each of the events specified above and in each case the Company shall if practical have provided 20 days' notice to Holders. In such an event, the Holders(s) shall have the right to convert the Notes prior to the date of any such prepayment in accordance with any of the conversion mechanics as set forth herein.

<u>Section 7</u>. <u>Negative Covenants</u>. As long as any portion of this Note remains outstanding, unless the Majority Purchasers shall have otherwise given prior written consent not to be unreasonably withheld, delayed or denied, the Company shall not, and shall not permit any of its Subsidiaries (whether or not a Subsidiary on the Original Issue Date) to, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially and adversely affects any rights of the Holder ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) repay, repurchase or offer to repay, repurchase or otherwise acquire more than a <u>de minimis</u> number of shares of its Common Stock or Common Stock Equivalents of the Company or its Subsidiaries other than as to (i) the Conversion Shares as permitted or required under the Transaction Documents and (ii) repurchases of Common Stock or Common Stock Equivalents of Company departing officers and directors of the Company, provided that such repurchases shall not exceed an aggregate of $100,000 for all officers and directors during the term of this Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) repay, repurchase or offer to repay, repurchase or otherwise acquire, or make any principal, interest or amortization payment on any Indebtedness, other than with respect to Permitted Indebtedness or the Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) pay cash dividends or distributions on any equity securities of the Company or its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) enter into any transaction with any Affiliate or family member of an Affiliate of the Company which would be required to be disclosed in any public filing with the Commission(other than pursuant to agreements and transactions that are disclosed or filed in SEC Reports or registration statements as of the Original Issue Date), unless such transaction is expressly approved by a majority of the disinterested directors of the Company (even if less than a quorum otherwise required for board approval) or the aggregate amount involved is less than $50,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) enter into any agreement with respect to any of the foregoing.

<u>Section 8</u>. <u>Events of Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) "<u>Event of Default</u>" means, wherever used herein, any of the following events (whatever the reason for such event and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any default in the payment of (A) the principal amount (including amortization payments) of any Note or (B) interest, liquidated damages and other amounts owing to a Holder on any Note, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise) which default, solely in the case of an interest payment or other default under clause (B) above, is not cured within five Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the Company, any of its Subsidiaries shall fail to observe or perform any other covenant or agreement contained in the Notes (other than a breach by the Company of its obligations to deliver shares of Common Stock to the Holder upon conversion, which breach is addressed in clause (xi) below) which failure is not cured, if possible to cure, within the earlier to occur of (A) 10 Trading Days after notice of such failure sent by the Holder or by any other Holder to the Company and (B) 20 Trading Days after the Company has become or should have become aware of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument) shall occur and continue under (A) any of the Transaction Documents, or (B) any other material agreement, lease, document or instrument to which the Company or any Subsidiary is obligated (and not covered by clause (vi) below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. any representation or warranty made in this Note, any other Transaction Documents, any written statement pursuant hereto or thereto or any other report, financial statement or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect as of the date when made or deemed made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. the Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that involves an obligation greater than $100,000, whether such indebtedness now exists or shall hereafter be created;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. the Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume listing or quotation for trading thereon within five Trading Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. the Company does not meet the current public information requirements under Rule 144 in respect of the Registrable Securities (as defined under the Registration Rights Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. if, during the Effectiveness Period (as defined in the Registration Rights Agreement), either (a) the effectiveness of the Registration Statement lapses for any reason or (b) the Holder shall not be permitted to resell Registrable Securities (as defined in the Registration Rights Agreement) under the Registration Statement for a period of more than 20 consecutive Trading Days or 30 non-consecutive Trading Days during any 12 month period; <u>provided</u>, <u>however</u>, that if the Company is negotiating a merger, consolidation, acquisition or sale of all or substantially all of its assets or a similar transaction and, in the written opinion of counsel to the Company, the Registration Statement would be required to be amended to include information concerning such pending transaction(s) or the parties thereto which information is not available or may not be publicly disclosed at the time, the Company shall be permitted an additional 10 consecutive Trading Days during any 12 month period pursuant to this Section 8(a)(x);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. the Company shall fail for any reason to deliver certificates to a Holder prior to the tenth Trading Day after a Conversion Date pursuant to Section 4(d) the Company shall provide at any time notice to the Holder, including by way of public announcement, of the Company's intention to not honor requests for conversions of any Notes in accordance with the terms hereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary, or any of their respective property or other assets for more than $100,000, and such judgment, writ or similar final process shall remain unvacated, unbonded or unstayed for a period of 45 calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Remedies Upon Event of Default</u>. If any Event of Default occurs, the outstanding principal amount of this Note, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder's election, immediately due and payable in cash at the Mandatory Default Amount. Commencing five days after the occurrence of any Event of Default that results in the eventual acceleration of this Note, the interest rate on this Note shall accrue at an interest rate equal to the lesser of 18% per annum or the maximum rate permitted under applicable law. At Holder's option, it shall be entitled to be paid all such amounts due including late fees, if any, in cash or from time to time in Common Stock with the conversion price of the Common Stock equal to a 30% discount to the lowest closing price of the common stock for the 10 prior Trading Days. Upon the payment in full of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by the Company. In connection with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Note until such time, if any, as the Holder receives full payment pursuant to this Section 8(b). No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

<u>Section 9</u>. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Notices</u>. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Notice of Conversion, shall be in writing and delivered personally, by facsimile, or sent by a nationally recognized overnight courier service, addressed to the Company at the address set forth above, or such other facsimile or electronic mail number or address as the Company may specify for such purpose by notice to the Holder delivered in accordance with this Section 9(a). Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile or electronic mail, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number or address of the Holder appearing on the books of the Company, or if no such facsimile number or address appears, at the principal place of business of the Holder. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile or electronic mail at the facsimile number or email address, as applicable, specified on the signature page prior to 5:30 p.m. (New York City time), (ii) the date immediately following the date of transmission, if such notice or communication is delivered via facsimile or electronic mail at the facsimile number or email address, as applicable, specified on the signature page between 5:30 p.m. (New York City time) and 11:59 p.m. (New York City time) on any date, (iii) the second Business Day following the date of mailing, if sent by nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom such notice is required to be given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Absolute Obligation</u>. Except as expressly provided herein, no provision of this Note shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, liquidated damages and accrued interest, as applicable, on this Note at the time, place, and rate, and in the coin or currency, herein prescribed. This Note is a direct debt obligation of the Company. This Note ranks <u>pari passu</u> with all other Notes now or hereafter issued under the terms set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Lost or Mutilated Note</u>. If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, reasonably satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by any of the Transaction Documents (whether brought against a party hereto or its respective Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the "<u>New York Courts</u>"). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If the Holder shall commence an action or proceeding to enforce any provisions of this Note, then it shall be reimbursed by the Company for its attorney's fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Waiver; Amendment</u>. Any waiver by the Company, or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the Company, or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note. Any waiver by the Company, or the Holder must be in writing. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of amendments, by the Company and the Majority Purchasers or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. Any such amendment provision shall not be construed to mean that the Beneficial Ownership Limitation of this Note may be amended other than as set forth in Section 4(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Severability</u>. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum rate of interest permitted under applicable law. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Next Business Day</u>. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Headings</u>. The headings contained herein are for convenience only, do not constitute a part of this Note and shall not be deemed to limit or affect any of the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Assumption</u>. Any successor to the Company or any surviving entity in a Fundamental Transaction shall (i) assume, prior to such Fundamental Transaction, all of the obligations of the Company under this Note and the other Transaction Documents pursuant to written agreements in form and substance satisfactory to the Holder (such approval not to be unreasonably withheld or delayed) and (ii) issue to the Holder a new Note of such successor entity evidenced by a written instrument substantially similar in form and substance to this Note, including, without limitation, having a principal amount and interest rate equal to the principal amount and the interest rate of this Note and having similar ranking to this Note, which shall be satisfactory to the Holder (any such approval not to be unreasonably withheld or delayed). The provisions of this Section 9(i) shall apply similarly and equally to successive Fundamental Transactions and shall be applied without regard to any limitations of this Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Senior Secured Obligation</u>. The Notes will be senior to all obligations of the Company, other than (i) the $60,192 of indebtedness to Mitsubishi HC Capital America, Inc. and (ii) $85,075 of indebtedness to Amur Equipment Finance, Inc. with respect to which it is pari passu in right of payment with and subject to the lien on the assets securing such indebtedness). The obligations of the Company under this Note are secured by a first lien (other than certain equipment which is currently pledged to secure the indebtedness referenced above, in respect of which it shall have a second lien) on all of the current and future assets of the Company, its Subsidiaries and limited liability companies, in each case pursuant to the Security Agreement, dated as of the date hereof between the Company, its Subsidiaries and the Holder.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

*(Signature Pages Follow)*

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

---

| | |
|:---|:---|
| **WHITE RIVER ENERGY CORP** | **WHITE RIVER ENERGY CORP** |
| **By:** | */s/ Jay Puchir* |
| **Name:** | **Jay Puchir** |
| **Title:** | **Chief Executive Officer** |
| **Facsimile No. for delivery of Notices:** | **Facsimile No. for delivery of Notices:** |

---

## Exhibit 10.22

**Exhibit 10.22**

**SECURITY AGREEMENT** 

SECURITY AGREEMENT, dated as of December 16, 2022 (this "Agreement"), among White River Energy Corp, a Nevada corporation ("White River" or the "Company"), White River Holdings Corp, a Delaware corporation, White River E&P Management 1 LLC, a Delaware limited liability company, White River Energy LLC, a Texas limited liability company, White River E&P LLC, a Texas limited liability company, White River SPV 2 LLC, a Texas limited liability company, White River SPV 3 LLC, a Texas limited liability company, and White River Operating LLC, a Texas limited liability company (collectively with the Company, the "Debtors") and the holders of the Company's 10% Senior Secured Notes due September 16, 2023 in the original aggregate principal amount of $1,666,666.67 (the "<u>Notes</u>"), signatory hereto, its endorsees, transferees and assigns (the "<u>Secured Party</u>").

**W I T N E S S E T H:**

WHEREAS, pursuant to the Notes, the Secured Party agreed to extend the loan to the Company evidenced by the Notes;

WHEREAS, pursuant to the Corporate Guarantees (as defined in the Purchase Agreement pursuant to which the Notes were issued), the other Debtors have agreed to guarantee the Notes and any other obligations under the Transaction Documents (as defined in the Notes) and the documents entered into in connection therewith;

WHEREAS, in order to induce the Secured Party to extend the loan evidenced by the Notes, each Debtor has agreed to execute and deliver to the Secured Party this Agreement and to grant the Secured Party a perfected security interest in all of the property of such Debtor to secure the prompt payment, performance and discharge in full of all of the Debtors' obligations under the Note and the other Transaction Documents and the documents entered into in connection therewith;

NOW, THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Certain Definitions**. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as "account", "chattel paper", "commercial tort claim", "deposit account", "document", "equipment", "fixtures", "general intangibles", "goods", "instruments", "inventory", "investment property", "letter-of-credit rights", "proceeds" and "supporting obligations") shall have the respective meanings given such terms in Article 9 of the UCC. Capitalized terms not otherwise defined herein shall have the meaning ascribed to such Terms in the Purchase Agreement (as such term is defined in the Note).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Collateral</u>" means the collateral in which the Secured Party is granted a security interest by this Agreement and which shall include the following personal property of the Debtors, whether presently owned or existing or hereafter acquired or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities, equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):

Page **1** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All goods, including, without limitations, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and wherever situated, together with all documents of title and documents representing the same, all additions and accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in connection with any Debtor's businesses and all improvements thereto; and (B) all inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests, stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, licenses, distribution and other agreements, computer software (whether "off-the-shelf", licensed from any third party or developed by any Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures, grants and rights, goodwill, trademarks, service marks, trade styles, trade names, patents, patent applications, copyrights, Intellectual Property, and income tax refunds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising, goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties with respect to each account, including any right of stoppage in transit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) All documents, letter-of-credit rights, instruments and chattel paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) All commercial tort claims or other litigation claims of any Debtor of any type, including against parties covered by directors' and officers' insurance of any Debtor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) All deposit accounts and all cash (whether or not deposited in such deposit accounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) All investment property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) All supporting obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) All files, records, books of account, business papers, and computer

programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) All accounts receivable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) the products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(x) above.

Without limiting the generality of the foregoing, the "<u>Collateral</u>" shall include all investment property and general intangibles respecting ownership and/or other equity interests in the Company and each Subsidiary, including, without limitation, the shares of capital stock and the other equity interests (including LLC interests) listed on <u>Schedule H</u> hereto (as the same may be modified from time to time pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests (including LLC interests) of any other direct or indirect subsidiary of any Debtor obtained in the future, and, in each case, all certificates representing such shares and/or equity interests and, in each case, all rights, options, warrants, stock, other securities and/or equity interests (including LLC interests) that may hereafter be received, receivable or distributed in respect of, or exchanged for, any of the foregoing (all of the foregoing being referred to herein as the "<u>Pledged Securities</u>") and all rights arising under or in connection with the Pledged Securities, including, but not limited to, all dividends, interest and cash.

Page **2** of **20**

Notwithstanding the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset. Notwithstanding the foregoing or anything to the contrary set forth herein, Collateral shall not include any working interests in any wellbores not owned by the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Intellectual Property</u>" means the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes of action for infringement of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Necessary Endorsement</u>" shall mean undated stock powers endorsed in blank or other proper instruments of assignment duly executed and such other instruments or documents as the Secured Party may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Obligations</u>" means all of the Debtors' obligations under this Agreement, the other Transaction Documents and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from the Secured Party as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time. Without limiting the generality of the foregoing, the term "Obligations" shall include, without limitation: (i) principal of, and interest on the Notes and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Debtors from time to time under or in connection with this Agreement, the other Transaction Documents and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any Debtor.

Page **3** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Organizational Documents</u>" means with respect to any Debtor, the documents by which such Debtor was organized (such as a certificate of incorporation, certificate of limited partnership or articles of organization, and including, without limitation, any certificates of designation for preferred stock or other forms of preferred equity) and which relate to the internal governance of such Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members' agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>UCC</u>" means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that defined terms in the UCC should be construed in their broadest sense so that the term "Collateral" (other than working interests in any wellbores not owned by the Company or any of its Subsidiaries) will be construed in its broadest sense. Accordingly, if there are, from time to time, changes to defined terms in the UCC that broaden the definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones shall be controlling.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Grant of Perfected Security Interest**. As an inducement for the Secured Party to extend the loan as evidenced by the Note and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Party a continuing and perfected security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (the "<u>Security Interest</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Delivery of Certain Collateral**. Contemporaneously or prior to the execution of this Agreement, each Debtor shall deliver or cause to be delivered to the Secured Party (a) any and all certificates and other instruments representing or evidencing the Pledged Securities, and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together with all Necessary Endorsements. The Debtors are, contemporaneously with the execution hereof, delivering to the Secured Party, or have previously delivered to the Secured Party, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Representations, Warranties, Covenants and Agreements of the Debtors**. Each Debtor represents and warrants to, and covenants and agrees with, the Secured Party as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of such Debtor and no further action is required by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes the legal, valid and binding obligation of each Debtor, enforceable against each Debtor in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies of creditors and by general principles of equity.

Page **4** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Debtors have no place of business or offices where their respective books of account and records are kept (other than temporarily at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on <u>Schedule A</u> attached hereto. Except as specifically set forth on <u>Schedule A</u>, each Debtor is the record owner of the real property where such Collateral is located, and there exist no mortgages or other liens on any such real property. Except as disclosed on <u>Schedule A</u>, none of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as set forth on <u>Schedule B</u> attached hereto, the Debtors are the sole owner of the Collateral, free and clear of any liens, security interests, encumbrances, rights or claims (other than Permitted Liens and liens securing (i) $60,192 of indebtedness to Mitsubishi HC Capital America, Inc. and (ii) $85,075 of indebtedness to Amur Equipment Finance, Inc. (the "Equipment Leases")), and are fully authorized to grant the Security Interest. There is not on file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those securing the Equipment Leases and that will be filed in favor of the Secured Party pursuant to this Agreement) covering or affecting any of the Collateral. So long as this Agreement shall be in effect, the Debtors shall not without the prior written consent of the Secured Party not to be unreasonably, withheld, delayed or denied, execute and shall not knowingly permit to be on file in any such office or agency any such financing statement or other document or instrument (except to the extent filed or recorded in favor of the Secured Party pursuant to the terms of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No written claim has been received that any Collateral or Debtor's use of any Collateral violates the rights of any third party. There has been no adverse decision to any Debtor's claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to any Debtor's right to keep and maintain such Collateral in full force and effect, and there is no proceeding involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator or other governmental authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business and its Collateral at the locations set forth on <u>Schedule A</u> attached hereto and may not relocate such books of account and records or tangible Collateral unless it delivers to the Secured Party at least 30 days prior to such relocation written notice of such relocation and the new location thereof (which must be within the United States) in order to provide the Secured Party with an opportunity to file and record at the Debtor's expense appropriate financing statements under the UCC and other necessary documents to create in favor of the Secured Party a valid, perfected and continuing perfected lien in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement creates in favor of the Secured Party a valid, first priority security interest in the Collateral (subject to Permitted Liens and liens securing the equipment leases with respect to which the Security Party shall have a second lien), securing the payment and performance of the Obligations. Upon making the filings described in the immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing Uniform Commercial Code financing statements shall have been duly perfected. Except for the filing of the Uniform Commercial Code financing statements referred to in the immediately following paragraph, no action is necessary to create, perfect or protect the security interests created hereunder. Without limiting the generality of the foregoing, except for the filing of said financing statements, no consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of the Secured Party hereunder.

Page **5** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each Debtor hereby authorizes the Secured Party, or any of them, to file one or more financing statements under the UCC, with respect to the Security Interest with the proper filing and recording agencies in any jurisdiction deemed proper by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any Organizational Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing any Debtor's debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any Debtor is bound or affected. No consent (including, without limitation, from stockholders or creditors of any Debtor) is required for any Debtor to enter into and perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the "<u>Pledged Interests</u>") by their express terms do not provide that they are securities governed by Article 8 of the UCC and are not held in a securities account or by any financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each Debtor shall at all times maintain the liens and Security Interest provided for hereunder as valid and perfected first priority liens and security interests (subject to Permitted Liens, and liens securing Equipment Leases with respect to which the Secured Party shall have a second priority lien) in the Collateral in favor of the Secured Party until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 11 hereof. Each Debtor hereby agrees to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all Collateral for the account of the Secured Party. At the reasonable request of the Secured Party, each Debtor will sign and deliver to the Secured Party at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory to the Secured Party and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Secured Party to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing, each Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interest hereunder, and each Debtor shall obtain and furnish to the Secured Party from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interest hereunder.

Page **6** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No Debtor will transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral without the prior written consent of the Secured Party not to be unreasonably, withheld, delayed or denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Each Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Each Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral against loss or damage of the kinds and in the amounts customarily insured against by entities of established reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement cost thereof. Each Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy to certify to the Secured Party that (a) the Secured Party will be named as lender loss payee and additional insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly notify the Secured Party and such cancellation or change shall not be effective as to the Secured Party for at least thirty (30) days after receipt by the Secured Party of such notice, unless the effect of such change is to extend or increase coverage under the policy; and (c) the Secured Party will have the right (but no obligation) at its election to remedy any default in the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined in the Note) exists and if the proceeds arising out of any claim or series of related claims do not exceed $50,000, loss payments in each instance will be applied by the applicable Debtor to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the applicable Debtor, provided, however, that payments received by any Debtor after an Event of Default occurs and is continuing or in excess of $50,000 for any occurrence or series of related occurrences shall be paid to the Secured Party and, if received by such Debtor, shall be held in trust for and immediately paid over to the Secured Party unless otherwise directed in writing by the Secured Party. Copies of such policies or the related certificates, in each case, naming the Secured Party as lender loss payee and additional insured shall be delivered to the Secured Party at least annually and at the time any new policy of insurance is issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Each Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Party promptly, in sufficient detail, of any substantial change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of the Collateral or on the Secured Party's security interest therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Each Debtor shall promptly execute and deliver to the Secured Party such further deeds, mortgages, assignments, security agreements, financing statements or other instruments, documents, certificates and assurances and take such further action as the Secured Party may from time to time request and may in its reasonable discretion deem necessary to perfect, protect or enforce its security interest in the Collateral including, without limitation, if applicable, the execution and delivery of a separate security agreement with respect to each Debtor's Intellectual Property ("<u>Intellectual Property Security Agreement</u>") in which the Secured Party have been granted a security interest hereunder, substantially in a form reasonably acceptable to the Secured Party and the Debtor, which Intellectual Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions hereof.

Page **7** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Each Debtor shall permit the Secured Party and their representatives and agents, upon reasonable advance notice and at reasonable times so as not to disrupt the Debtor's business, to inspect the Collateral at any time, and to make copies of records pertaining to the Collateral as may be reasonably requested by a Secured Party from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Each Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims, causes of action and accounts receivable in respect of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Each Debtor shall promptly notify the Secured Party in sufficient detail upon becoming aware of any attachment, garnishment, execution or other legal process levied against any Collateral and of any other information received by such Debtor that may materially affect the value of the Collateral, the Security Interest or the rights and remedies of the Secured Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) All information heretofore, herein or hereafter supplied to the Secured Party by or on behalf of any Debtor with respect to the Collateral is true and correct in all material respects as of the date furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any rights and franchises material to its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written notice to the Secured Party of such change and, at the time of such written notification, so as to provide the Secured Party with an opportunity to file and record any financing statements or fixture filings necessary to perfect and continue perfected the perfected security Interest granted and evidenced by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) No Debtor may consign any of its Inventory or sell any of its Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale without the consent of a Majority in Interest which shall not be unreasonably withheld, delayed or denied, except to the extent such consignment or sale does not exceed 10% of the total value of all of the Company's finished goods in Inventory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) No Debtor may relocate its chief executive office to a new location without providing 30 days' prior written notification thereof to the Secured Party and so long as, at the time of such written notification, so as to provide the Secured Party with an opportunity to file and record at the Debtors' expense any financing statements or fixture filings necessary to perfect and continue perfected the perfected security Interest granted and evidenced by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Each Debtor was organized and remains organized solely under the laws of the state set forth next to such Debtor's name in the first paragraph of this Agreement. <u>Schedule D</u> attached hereto sets forth each Debtor's organizational identification number or, if any Debtor does not have one, states that one does not exist.

Page **8** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) (i) The actual name of each Debtor is the name set forth in the preamble above; (ii) no Debtor has any trade names except as set forth on <u>Schedule E</u> attached hereto; (iii) no Debtor has used any name other than that stated in the preamble hereto or as set forth on <u>Schedule E</u> for the preceding five years; and (iv) no entity has merged into any Debtor or been acquired by any Debtor within the past five years except as set forth on <u>Schedule E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require or permit possession by the secured party to perfect the security interest created hereby, the applicable Debtor shall deliver such Collateral to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Each Debtor, in its capacity as issuer, hereby agrees to comply in all material respects with any and all orders and instructions of the Secured Party regarding the Pledged Interests consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by Section 8-106 (or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or one that would confer "control" within the meaning of Article 8 of the UCC) with any other person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) If there is any investment property or deposit account included as Collateral that can be perfected by "control" through an account control agreement, the applicable Debtor shall cause such an account control agreement, in form and substance in each case satisfactory to the Secured Party, to be entered into and delivered to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) To the extent that any Collateral is in the possession of any third party, the applicable Debtor shall join with the Secured Party in notifying such third party of the Secured Party's security interest in such Collateral and shall use its best efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance satisfactory to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) If any Debtor shall at any time hold or acquire a commercial tort or other claim, such Debtor shall promptly notify the Secured Party in a writing signed by such Debtor of the particulars thereof and grant to the Secured Party in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) Each Debtor shall promptly provide written notice to the Secured Party of any and all accounts which arise out of contracts with any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interest in such accounts and proceeds thereof, shall execute and deliver to the Secured Party an assignment of claims for such accounts and cooperate with the Secured Party in taking any other steps required, in their reasonable judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute or rule to perfect or continue the perfected status of the Security Interest in such accounts and proceeds thereof.

Page **9** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each Debtor shall cause each subsidiary of such Debtor to immediately become a party hereto (an "<u>Additional Debtor</u>"), by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply in all material respects with the provisions hereof applicable to the Debtors. Concurrent therewith, the Additional Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall supersede, or supplements shall modify, the Schedules then in effect. The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements and other information and documentation as the Secured Party may reasonably request. Upon delivery of the foregoing to the Secured Party, the Additional Debtor shall be and become a party to this Agreement with the same rights and obligations as the Debtors, for all purposes hereof as fully and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date of execution and delivery of such Additional Debtor Joinder, and all references herein to the "Debtors" shall be deemed to include each Additional Debtor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) Each Debtor shall vote the Pledged Securities to comply in all material respects with the covenants and agreements set forth herein and in the Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Each Debtor shall register the pledge of the applicable Pledged Securities on the books of such Debtor. Each Debtor shall notify each issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Party on the books of such issuer. Further, except with respect to certificated securities delivered to the Secured Party, the applicable Debtor shall deliver to the Secured Party an acknowledgement of pledge (which, where appropriate, shall comply in all material respects with the requirements of the relevant UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Security, which acknowledgement shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by the Secured Party during the continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Security into the name of any designee of the Secured Party, will take such steps as may be necessary to effect the transfer, and will comply in all material respects with all other reasonable instructions of the Secured Party regarding such Pledged Securities without the further consent of the applicable Debtor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) In the event that, upon an occurrence and continuance of an Event of Default, the Secured Party shall sell all or any of the Pledged Securities to another party or parties (herein called the "<u>Transferee</u>") or shall purchase or retain all or any of the Pledged Securities, each Debtor shall, to the extent applicable: (i) deliver to the Secured Party or the Transferee, as the case may be, the articles of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness, books of account, financial records and all other Organizational Documents and records of the Debtors and their direct and indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the Debtors and their direct and indirect subsidiaries, if so reasonably requested; and (iii) use its best efforts to obtain any approvals that are required by any governmental or regulatory body in order to permit the sale of the Pledged Securities to the Transferee or the purchase or retention of the Pledged Securities by the Secured Party and allow the Transferee or the Secured Party to continue the business of the Debtors and their direct and indirect subsidiaries.

Page **10** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) Without limiting the generality of the other obligations of the Debtors hereunder, each Debtor shall promptly (i) cause to be registered at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby with respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark Office to be duly recorded at the applicable office, and (iii) give the Secured Party notice whenever it acquires (whether absolutely or by license) or creates any additional material Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) Each Debtor will from time to time, at the joint and several expense of the Debtors, promptly execute and deliver all such further instruments and documents, and take all such further action as may be necessary or desirable, or as the Secured Party may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Schedule F</u> attached hereto lists all of the material patents, patent applications, trademarks, trademark applications, registered copyrights, and domain names owned by any of the Debtors as of the date hereof. <u>Schedule F</u> lists all material licenses in favor of any Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks of the Debtors have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtors have been duly recorded at the United States Copyright Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) Except as set forth on <u>Schedule G</u> attached hereto, none of the account debtors or other persons or entities obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local statute or rule in respect of such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Effect of Pledge on Certain Rights**. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement of any of the Secured Party's rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor is party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Defaults**. The following events shall be "<u>Events of Default</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The occurrence and continuance of an Event of Default (as defined in the Notes) under the Notes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The failure by any Debtor to observe or perform any of its obligations hereunder for 20 days after delivery to such Debtor of notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame and such Debtor is using best efforts to cure same in a timely fashion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having jurisdiction over any Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any Debtor has any liability or obligation purported to be created under this Agreement.

Page **11** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Duty To Hold In Trust**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence and continuance of any Event of Default and at any time thereafter, each Debtor shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interest, whether payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Party and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants, rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization, reclassification or increase or reduction of capital, or issued in connection with any reorganization of such Debtor or any of its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in exchange for, such Pledged Securities or otherwise), such Debtor agrees to (i) accept the same as the agent of the Secured Party; (ii) hold the same in trust on behalf of and for the benefit of the Secured Party; and (iii) to deliver any and all certificates or instruments evidencing the same to the Secured Party on or before the close of business on the fifth business day following the receipt thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by the Secured Party subject to the terms of this Agreement as Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Rights and Remedies Upon Default**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence and continuance of any Event of Default and at any time thereafter, the Secured Party, acting through any agent appointed by them for such purpose, shall have the right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Party shall have all the rights and remedies of a secured party under the UCC. Without limitation, the Secured Party shall have the following rights and powers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Secured Party shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor shall assemble the Collateral and make it available to the Secured Party at places which the Secured Party shall reasonably select, whether at such Debtor's premises or elsewhere, and make available to the Secured Party, without rent, all of such Debtor's respective premises and facilities for the purpose of the Secured Party taking possession of, removing or putting the Collateral in saleable or disposable form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Upon notice to the Debtors by the Secured Party, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be authorized to receive and retain, shall cease. Upon such notice, the Secured Party shall have the right to receive any interest, cash dividends or other payments on the Collateral and, at the option oft, to exercise in such the Secured Party's discretion all voting rights pertaining thereto. Without limiting the generality of the foregoing, the Secured Party shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owners thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or any Debtor or any of its direct or indirect subsidiaries.

Page **12** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Secured Party shall have the right to operate the business of each Debtor using the Collateral and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Secured Party may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of Collateral, the Secured Party may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of any Debtor, which are hereby waived and released. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Secured Party will give the Debtors reasonable notice of the time and place of any public sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made. The requirements of commercially reasonable notice shall be met if such notice is sent to the Debtors at least ten (10) days before the time of the intended sale or disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Secured Party shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts to make payments directly to the Secured Party and to enforce the Debtors' rights against such account debtors and obligors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Secured Party may (but are not obligated to) direct any financial intermediary or any other person or entity holding any investment property to transfer the same to the Secured Party or their designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Secured Party may (but are not obligated to) transfer any or all Intellectual Property registered in the name of any Debtor at the United States Patent and Trademark Office and/or Copyright Office into the name of the Secured Party or any designee or any purchaser of any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. The Secured Party may sell the Collateral without giving any warranties and may specifically disclaim such warranties. If the Secured Party sells any of the Collateral on credit, the Debtors will only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of the Secured Party's rights and remedies hereunder, including, without limitation, its right following and during the continuance of an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect thereto.

Page **13** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purpose of enabling the Secured Party to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement or applicable law, each Debtor hereby grants to the Secured Party an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense following an Event of Default, any Intellectual Property now owned or hereafter acquired by such Debtor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Applications of Proceeds**. The proceeds of any such sale, lease or other disposition of the Collateral hereunder shall be applied first, to the expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in connection therewith) of the Collateral, to the reasonable attorneys' fees and expenses incurred by the Secured Party in enforcing their rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations, and to the payment of any other amounts required by applicable law, after which the Secured Party shall pay to the applicable Debtor any surplus proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Party is legally entitled, the Debtors will be liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser amount permitted by applicable law (the "Default Rate"), and the reasonable fees of any attorneys employed by the Secured Party to collect such deficiency. To the extent permitted by applicable law, each Debtor waives all claims, damages and demands against the Secured Party arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Party as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Securities Law Provision**. Each Debtor recognizes that the Secured Party may be limited in its ability to effect a sale to the public of all or part of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state securities laws (collectively, the "<u>Securities Laws</u>"), and may be compelled to resort to one or more sales to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for investment and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be at prices and on terms less favorable than if the Pledged Securities were sold to the public, and that the Secured Party has no obligation to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public under the Securities Laws. Each Debtor shall cooperate with the Secured Party's reasonable requests in its attempt to satisfy any requirements under the Securities Laws (including, without limitation, registration thereunder if reasonably requested by the Secured Party) applicable to the sale of the Pledged Securities by the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Costs and Expenses**. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured Party. The Debtors shall also pay all other claims and charges which in the reasonable opinion of the Secured Party might prejudice, imperil or otherwise affect the Collateral or the Security Interest therein. The Debtors will also, upon demand, pay to the Secured Party the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the Secured Party may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Secured Party under the Notes, the other Transaction Documents and the other documents entered into in connection therewith. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes and shall bear interest at the Default Rate.

Page **14** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Responsibility for Collateral**. The Debtors assume all liabilities and responsibility in connection with all Collateral, and the Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability for any reason. Without limiting the generality of the foregoing, (a) no Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed by such Debtor thereunder. No Secured Party shall have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the receipt by any Secured Party of any payment relating to any of the Collateral, nor shall the any Secured Party be obligated in any manner to perform any of the obligations of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to any Secured Party may be entitled at any time or times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **Security Interest Absolute**. All rights of the Secured Party and all obligations of the Debtors hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release or non-perfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or any other security, for all or any of the Obligations; (d) any action by the Secured Party to obtain, adjust, settle and cancel in its reasonable discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all or any part of the Security Interest granted hereby. Until the Obligations shall have been paid and performed in full, the rights of the Secured Party shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy. Each Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received by the Secured Party hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Party, then, in any such event, each Debtor's obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives all right to require the Secured Party to proceed against any other person or entity or to apply any Collateral which the Secured Party may hold at any time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **Term of Agreement**. This Agreement and the Security Interest shall terminate on the date on which all payments under the Notes have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities of the Debtors contained in this Agreement shall survive and remain operative and in full force and effect regardless of the termination of this Agreement. The Debtors may participate at their expense in the defense of any such claim.

Page **15** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **Power of Attorney; Further Assurances**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Debtor authorizes the Secured Party, and does hereby make, constitute and appoint the Secured Party and its respective officers, agents, successors or assigns with full power of substitution, as such Debtor's true and lawful attorney-in-fact, with power, in the name of the various Secured Party or such Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts, money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect of the Collateral that may come into possession of the Secured Party; (ii) to sign and endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Secured Party, and at the expense of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to do all acts and things which the Secured Party deems necessary to protect, preserve and realize upon the Collateral and the Security Interest granted therein in order to effect the intent of this Agreement and the Notes and the other Transaction Documents all as fully and effectually as the Debtors might or could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding. The designation set forth herein shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents or agreements to which any Debtor is subject or to which any Debtor is a party. Without limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of Default, the Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with the United States Patent and Trademark Office and the United States Copyright Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on <u>Schedule C</u> attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by the Secured Party, to perfect the Security Interest granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to the Secured Party the grant or perfection of a perfected security interest in all the Collateral under the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Debtor hereby irrevocably appoints the Secured Party as such Debtor's attorney-in-fact, with full authority in the place and instead of such Debtor and in the name of such Debtor, from time to time in the Secured Party's discretion, to take any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing, in its reasonable discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral as "all assets" or "all personal property" or words of like import, and ratifies all such actions taken by the Secured Party. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

Page **16** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **Notices**. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement (as such term is defined in the Note).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **Other Security**. To the extent that the Obligations are now or hereafter secured by property other than the Collateral or by the guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Secured Party shall have the right, in its reasonable discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying or affecting any of the Secured Party's rights and remedies hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. RESERVED.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **Miscellaneous**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No course of dealing between the Debtors and the Secured Party, nor any failure to exercise, nor any delay in exercising, on the part of the Secured Party, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the rights and remedies of the Secured Party with respect to the Collateral, whether established hereby or by the Note or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede all prior negotiations, understandings and agreements with respect thereto. Except as specifically set forth in this Agreement, no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this Agreement and signed by the Majority Purchasers (as defined in the Notes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason, unless such provision is narrowed by judicial construction, this Agreement shall, as to such jurisdiction, be construed as if such invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable. If, notwithstanding the foregoing, any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction, such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability without invalidating the remaining portion of such provision or the other provisions of this Agreement and without affecting the validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No waiver of any breach or default or any right under this Agreement shall be considered valid unless in writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of the same or similar nature or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement shall be binding upon and inure to the benefit of each party hereto and its successors and assigns.

Page **17** of **20**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order to carry out the provisions and purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof. Each Debtor agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Notes (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan. Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence a proceeding to enforce any provisions of this Agreement, then the prevailing party in such proceeding shall be reimbursed by the other party for its reasonable attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) All Debtors shall jointly and severally be liable for the obligations of each Debtor to the Secured Party hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Each Debtor shall indemnify, reimburse and hold harmless the Secured Party and their respective partners, members, shareholders, officers, directors, employees and agents (collectively, "<u>Indemnitees</u>") from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result from fraud, the gross negligence, or illegal or willful misconduct of the Indemnitee as determined by a final, non-appealable decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other indemnification provision in the Notes, the Purchase Agreement (as such term is defined in the Notes) or any other agreement, instrument or other document executed or delivered in connection herewith or therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Nothing in this Agreement shall be construed to subject any Secured Party to liability as a partner in any Debtor or any if its direct or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries that is a limited liability company, nor any Secured Party be deemed to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any such Debtor or any if its direct or indirect subsidiaries or otherwise, unless and until any such Secured Party exercises its right to be substituted for such Debtor as a partner or member, as applicable, pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent, approval or action of any partner or member, as applicable, of any Debtor or any direct or indirect subsidiary of any Debtor or compliance with any provisions of any of the Organizational Documents, the Debtors hereby grant such consent and approval and waive any such noncompliance with the terms of said documents.

[SIGNATURE PAGES FOLLOW]

Page **18** of **20**

IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

---

| | |
|:---|:---|
| White River Energy Corp | White River Energy Corp |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | Chief Executive Officer |
| White River Holdings Corp | White River Holdings Corp |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | Chief Executive Officer |
| White River E&P Management 1 LLC | White River E&P Management 1 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River Energy LLC | White River Energy LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River E&P LLC | White River E&P LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River SPV 2 LLC | White River SPV 2 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River SPV 3 LLC | White River SPV 3 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River Operating LLC | White River Operating LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |

---

[SIGNATURE PAGE OF HOLDER]

Page **19** of **20**

Name of Investing Entity: <u>Smithline Family Trust I</u>

*Signature of Authorized Signatory of Investing entity*: *<u>/s/ Richard Smithline</u>*

Name of Authorized Signatory: <u>Richard Smithline</u>

Title of Authorized Signatory: <u>Authorized Signatory</u>

Page **20** of **20**

## Exhibit 10.23

**Exhibit 10.23**

**CORPORATE GUARANTEE**

GUARANTEE, dated as of December 16, 2022, made by White River Holdings Corp, a Delaware corporation, White River E&P Management 1 LLC, a Delaware limited liability company, White River Energy LLC, a Texas limited liability company, White River E&P LLC, a Texas limited liability company, White River SPV 2 LLC, a Texas limited liability company, White River SPV 3 LLC, a Texas limited liability company, and White River Operating LLC, a Texas limited liability company(collectively, the "Guarantors"), in favor of Smithline Family Trust I (the "<u>Purchaser</u>").

**W I T N E S S E T H:**

Whereas, pursuant to that certain Securities Purchase Agreement, dated as of December 16, 2022, by and between White River Energy Corp., a Nevada corporation (the "Company"), and the Purchaser (the "Purchase Agreement"), the Company agreed to sell and issue to the Purchaser, and the Purchaser has agreed to purchase from the Company, among other things, the Company's Senior Secured Notes due September 16, 2023, in aggregate principal amount of $1,666,666.67 (the "Notes");

Whereas, the Guarantors have and will directly benefit from the extension of credit to the Company; and

NOW, THEREFORE, in consideration of the premises and to induce the Purchaser to enter into the transactions in connection therewith, the Guarantors hereby agree with the Purchaser as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. Unless otherwise defined herein, terms defined in the Purchase Agreement and used herein and not otherwise defined herein shall have the meanings given to them in the Purchase Agreement. The words "hereof," "herein," "hereto" and "hereunder" and words of similar import when used in this Guarantee shall refer to this Guarantee as a whole and not to any particular provision of this Guarantee, and Section and Schedule references are to this Guarantee unless otherwise specified. The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. The following terms shall have the following meanings:

"<u>Guarantee</u>" means this Guarantee, as the same may be amended, supplemented or otherwise modified from time to time.

"<u>Obligations</u>" means the collective reference to all obligations and undertakings of the Company of whatever nature, monetary or otherwise under the Notes, the Security Agreement of even date herewith by and between the Company, its Subsidiaries, and the Purchaser (the "Security Agreement"), and the other Transaction Documents or any other future agreement or obligations undertaken by the Company, its Subsidiaries to the Purchaser, together with all reasonable attorneys' fees, disbursements and all other costs and expenses of collection incurred by Purchaser in enforcing any of such Obligations and/or this Guarantee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Guarantee</u>.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Guarantors hereby unconditionally and irrevocably, jointly and severally, guarantee to the
 Purchaser and its successors, indorsees, transferees and assigns, the prompt and complete
 payment and performance by the Company and its Subsidiaries when due (whether at the stated
 maturity, by acceleration or otherwise) of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Anything
 herein or in any other Transaction Document (as defined in Notes) to the contrary notwithstanding,
 the maximum liability of the Guarantors hereunder and under the other Transaction Documents
 shall in no event exceed the amount which can be guaranteed by such Guarantors under applicable
 federal and state laws, including laws relating to the insolvency of debtors, fraudulent
 conveyance or transfer or laws affecting the rights of creditors generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 Guarantors agree that the Obligations may at any time and from time to time exceed the amount
 of the liability of such Guarantors hereunder without impairing the guarantee contained in
 this Section 2 or affecting the rights and remedies of the Purchaser hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 guarantee contained in this Section 2 shall remain in full force and effect until all the
 Obligations and the obligations of the Company under the Note shall have been paid in full
 by the Company or any other Guarantor. .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) No
 payment made by the Company, its Subsidiaries, the Guarantors, any other Guarantors or any
 other Person or received or collected by the Purchaser from the Company, its Subsidiaries,
 the Guarantors, any other Guarantors or any other Person by virtue of any action or proceeding
 or any set-off or appropriation or application at any time or from time to time in reduction
 of or in payment of the Obligations shall be deemed to modify, reduce, release or otherwise
 affect the liability of the Guarantors hereunder which shall, notwithstanding any such payment
 (other than any payment made by such Guarantors in respect of the Obligations or any payment
 received or collected from such Guarantors in respect of the Obligations), remain jointly
 and severally liable for the Obligations until the Obligations are paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Notwithstanding
 anything to the contrary in this Agreement, with respect to any defaulted non-monetary Obligations
 that remains uncured after giving effect to any applicable cure period, if any, the specific
 performance of which by the Guarantors are not reasonably possible (e.g. the issuance of
 the Company's Common Stock), the Guarantors shall only be jointly and severally liable
 for making the Purchaser whole on a monetary basis for the Company's, its Subsidiaries'
 failure to perform such Obligations in accordance with the Transaction Documents.

2 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Subrogation</u>. Notwithstanding any payment made by the Guarantors hereunder or any set-off or application of funds of the Guarantors by the Purchaser, the Guarantors shall not be entitled to be subrogated to any of the rights of the Purchaser against the Company, its Subsidiaries, or any other Guarantors or any collateral security or guarantee or right of offset held by the Purchaser for the payment of the Obligations, nor shall the Guarantors seek or be entitled to seek any contribution or reimbursement from the Company, its Subsidiaries, or any other Guarantors in respect of payments made by such Guarantors hereunder, until all amounts owing to the Purchaser by the Company, its Subsidiaries on account of the Obligations are paid in full. If any amount shall be paid to the Guarantors on account of such subrogation rights at any time when all of the Obligations shall not have been paid in full, such amount shall be held by the Guarantors in trust for the Purchaser, segregated from other funds of such Guarantors, and shall, forthwith upon receipt by such Guarantors, be turned over to the Purchaser in the exact form received by such Guarantors (duly indorsed by such Guarantors to the Purchaser, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Purchaser may determine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Amendments, Etc. With Respect to the Obligations</u>. The Guarantors shall remain jointly and severally obligated hereunder notwithstanding that, without any reservation of rights against any Guarantors and without notice to or further assent by any Guarantors, any demand for payment of any of the Obligations made by the Purchaser may be rescinded by the Purchaser and any of the Obligations continued, and the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Purchaser, and the Purchase Agreement and the other Transaction Documents and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Purchaser may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Purchaser for the payment of the Obligations may be sold, exchanged, waived, surrendered or released in accordance with the terms and conditions set forth in the Security Agreement (as defined in the Purchase Agreement). The Purchaser shall have no obligation to protect, secure, perfect or insure any Lien at any time held by them as security for the Obligations or for the guarantee contained in this Section 2 or any property subject thereto.

3 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Guarantee Absolute and Unconditional</u>. The Guarantors waive any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of reliance by the Purchaser upon the guarantee contained in this Section 2 or acceptance of the guarantee contained in this Section 2; the Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Section 2; and all dealings between the Company, its Subsidiaries, and any of the Guarantors, on the one hand, and the Purchaser, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Section 2. The Guarantors waive to the extent permitted by law diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon the Company, its Subsidiaries, or any of the Guarantors with respect to the Obligations. The Guarantors understand and agrees that the guarantee contained in this Section 2 shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to (a) the validity or enforceability of any Transaction Document or document entered into in connection with the Purchase Agreement, any of the Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Purchaser, (b) any defense, set-off or counterclaim (other than a defense of payment or performance or fraud or misconduct by Purchaser) which may at any time be available to or be asserted by the Company, its Subsidiaries or any other Person against the Purchaser, or (c) any other circumstance whatsoever (with or without notice to or knowledge of the Company, its Subsidiaries, or the Guarantors) which constitutes, or might be construed to constitute, an equitable or legal discharge of the Company, for the Obligations, or of the Guarantors under the guarantee contained in this Section 2, in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Purchaser may, but shall be under no obligation to, make a similar demand on or otherwise pursue such rights and remedies as it may have against the Company, any other Guarantor or any other Person or against any collateral security or guarantee for the Obligations or any right of offset with respect thereto, and any failure by the Purchaser to make any such demand, to pursue such other rights or remedies or to collect any payments from the Company, any other Guarantors or any other Person or to realize upon any such collateral security or guarantee or to exercise any such right of offset, or any release of the Company, any other Guarantors or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor, of any obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Purchaser against any Guarantors. For the purposes hereof, "demand" shall include the commencement and continuance of any legal proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reinstatement</u>. The guarantee contained in this Section 2 shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Purchaser upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, its Subsidiaries or any Guarantors, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, the Company, its Subsidiaries, or any Guarantors or any substantial part of its property, or otherwise, all as though such payments had not been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Payments</u>. The Guarantors hereby jointly and severally guarantee that payments hereunder will be paid to the Purchaser without set-off or counterclaim in U.S. dollars at the address set forth or referred to in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties</u>. Each Guarantor hereby makes the following representations and warranties to Purchaser as of the date hereof

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization and Qualification</u>. The Guarantors is a corporation or limited liability company, duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, with the requisite corporate power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Guarantors are duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not, individually or in the aggregate, (x) adversely affect the legality, validity or enforceability of any of this Guaranty in any material respect, (y) have a material adverse effect on the results of operations, assets, prospects, or financial condition of the Guarantors or (z) adversely impair in any material respect the Guarantor' ability to perform fully on a timely basis its obligations under this Guaranty (a "Material Adverse Effect").

4 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authorization; Enforcement.</u> The Guarantor has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Guaranty, and otherwise to carry out its obligations hereunder. The execution and delivery of this Guarantee by the Guarantors and the consummation by it of the transactions contemplated hereby have been duly authorized by all requisite corporate action on the part of the Guarantor. This Guarantee has been duly executed and delivered by the Guarantors and constitutes the valid and binding obligation of the Guarantors enforceable against the Guarantor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of, creditors' rights and remedies or by other equitable principles of general application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflicts</u>. The execution, delivery and performance of this Guaranty by the Guarantor and the consummation by the Guarantors of the transactions contemplated thereby do not and will not (i) conflict with or violate any provision of its Certificate of Incorporation or By-laws or (ii) conflict with, constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Guarantors is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Guarantors is subject (including Federal and state securities laws and regulations), or by which any material property or asset of the Guarantors is bound or affected, except in the case of each of clauses (i) and (iii), such conflicts, defaults, terminations, amendments, accelerations, cancellations and violations as could not, individually or in the aggregate, adversely impair in any material respect the Guarantors' ability to perform fully on a timely basis its obligations under this Guaranty (a "Material Adverse Effect"). The business of the Guarantors are not being conducted in violation of any law, ordinance or regulation of any governmental authority, except for violations which, individually or in the aggregate, do not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Consents and Approvals</u>. The Guarantor is not required to obtain any consent, waiver, authorization or order of, or make any filing or registration with, any court or other federal, state, local, foreign or other governmental authority or other person in connection with the execution, delivery and performance by the Guarantors of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Purchase Agreement</u>. The representations and warranties of the Company set forth in the Purchase Agreement as they relate to such Guarantor, each of which is hereby incorporated herein by reference, are true and correct in all material respects as of each time such representations are deemed to be made pursuant to such Purchase Agreement, and the Purchaser shall be entitled to rely on each of them as if they were fully set forth herein, provided, that each reference in each such representation and warranty to the Guarantors' knowledge shall, for the purposes of this Section 3, be deemed to be a reference to such Guarantors' knowledge

5 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Covenants</u>. The Guarantor covenants and agrees with the Purchaser that, from and after the date of this Guarantee until the Obligations shall have been paid in full, such Guarantor shall take, and/or shall refrain from taking, as the case may be, each commercially reasonable action that is necessary to be taken or not taken, as the case may be, so that no Event of Default is caused by the failure to take such action or to refrain from taking such action by the Guarantors. Additionally, the Guarantors agree to be bound by the covenants set forth in Notes as if fully set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Amendments in Writing</u>. None of the terms or provisions of this Guarantee may be waived, amended, supplemented or otherwise modified except in writing by the Majority Purchaser (as defined in the Purchase Agreement) and the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Notices</u>. All notices, requests and demands to or upon the Purchaser or any Guarantors hereunder shall be affected in the manner provided for in the Purchase Agreement at their respective addresses (in the case of the Guarantors, at the address listed on the signature page below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Waiver By Course Of Conduct; Cumulative Remedies</u>. The Purchaser shall not by any act (except by a written instrument pursuant to Section 5(a)), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any default under the Transaction Documents or Event of Default. No failure to exercise, nor any delay in exercising, on the part of the Purchaser, any right, power or privilege hereunder upon the occurrence and continuance of an Event of Default that remains uncured after giving effect to any applicable cure period, if any, shall operate as a waiver thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, power or privilege. A waiver by the Purchaser of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Purchaser would otherwise have on any future occasion. The rights and remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Enforcement Expenses</u>; <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each
 Guarantor agrees to pay, or reimburse the Purchaser for, all its reasonable costs and expenses
 incurred in collecting against such Guarantor under the guarantee contained in Section 2
 or otherwise enforcing or preserving any rights under this Guarantee and the other Transaction
 Documents to which such Guarantor is a party, including, without limitation, the reasonable
 fees and disbursements of counsel to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Each
 Guarantor agrees to pay, and to save the Purchaser harmless from, any and all liabilities
 with respect to, or resulting from any delay in paying, any and all stamp, excise, sales
 or other taxes which may be payable or determined to be payable in connection with any of
 the transactions contemplated by this Guarantee.

6 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each
 Guarantor agrees to pay, and to save the Purchaser harmless from, any and all liabilities,
 obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
 of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance
 and administration of this Guarantee to the extent the Company would be required to do so
 pursuant to the Notes, Pledge Agreement or Security Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 agreements in this Section shall survive repayment of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Successor and Assigns</u>. This Guarantee shall be binding upon the successors and assigns of the Guarantors and shall inure to the benefit of the Purchaser and their respective successors and assigns; provided that the Guarantors may not assign, transfer or delegate any of its rights or obligations under this Guarantee without the prior written consent of the Purchaser not to be unreasonably withheld, delayed or denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Set-Off</u>. Each Guarantor hereby irrevocably authorizes the Purchaser at any time and from time to time while an Event of Default under the Notes shall have occurred and be continuing after giving effect to any applicable cure period, if any, without notice to such Guarantor or any other Guarantors, any such notice being expressly waived by each Guarantor, to set-off and appropriate and apply any and all deposits, credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Purchaser to or for the credit or the account of such Guarantor, or any part thereof in such amounts as the Purchaser may elect, against and on account of the obligations and liabilities of such Guarantor to the Purchaser hereunder and claims of every nature and description of the Purchaser against such Guarantor, in any currency, whether arising hereunder, under the Notes or otherwise, as the Purchaser may elect, whether or not the Purchaser have made any demand for payment and although such obligations, liabilities and claims may be contingent or unmatured. The Purchaser shall notify such Guarantor promptly of any such set-off and the application made by the Purchaser of the proceeds thereof, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Purchaser under this Section are in addition to other rights and remedies (including, without limitation, other rights of set-off) which the Purchaser may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. Any provision of this Guarantee which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Section Headings</u>. The Section headings used in this Guarantee are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Integration</u>. This Guarantee and the other Transaction Documents represent the agreement of the Guarantors and the Purchaser with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Purchaser relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Transaction Documents.

7 of 9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Governing Law</u>. THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEVADA WITHOUT REGARD TO ANY PRINCIPLES OF CONFLICTS OF LAWS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Submission to Jurisdictional; Waiver</u>. Each Guarantor hereby irrevocably and unconditionally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) submits
 for itself and its property in any legal action or proceeding relating to this Guarantee
 and the other Transaction Documents to which it is a party, or for recognition and enforcement
 of any judgment in respect thereof, to the non-exclusive general jurisdiction of the Courts
 of the State of New York, located in New York County, New York, the courts of the United
 States of America for the Southern District of New York, and appellate courts from any thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consents
 that any such action or proceeding may be brought in such courts and waives any objection
 that it may now or hereafter have to the venue of any such action or proceeding in any such
 court or that such action or proceeding was brought in an inconvenient court and agrees not
 to plead or claim the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) agrees
 that service of process in any such action or proceeding may be effected by mailing a copy
 thereof by registered or certified mail (or any substantially similar form of mail), postage
 prepaid, to such Guarantor at its address referred to above or at such other address of which
 the Purchaser shall have been notified pursuant thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) agrees
 that nothing herein shall affect the right to effect service of process in any other manner
 permitted by law or shall limit the right to sue in any other jurisdiction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) waives,
 to the maximum extent not prohibited by law, any right it may have to claim or recover in
 any legal action or proceeding referred to in this Section any special, exemplary, punitive
 or consequential damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Acknowledgements</u>. Each Guarantor hereby acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it
 has been advised by counsel in the negotiation, execution and delivery of this Guarantee
 and the other Transaction Documents to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Purchaser has no fiduciary relationship with or duty to any Guarantor arising out of or in
 connection with this Guarantee or any of the other Transaction Documents, and the relationship
 between the Guarantor, on the one hand, and the Purchaser, on the other hand, in connection
 herewith or therewith is solely that of debtor and creditor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no
 joint venture is created hereby or by the other Transaction Documents or otherwise exists
 by virtue of the transactions contemplated hereby among the Guarantors and the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Release of Guarantors</u>. The Guarantors will be released from all liability hereunder concurrently with the repayment in full of all amounts in connection with the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Waiver of Jury Trial</u>. THE GUARANTORS AND, BY ACCEPTANCE OF THE BENEFITS HEREOF, THE PURCHASER, HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS GUARANTEE AND FOR ANY COUNTERCLAIM THEREIN.

**(o<u>) Seniority.</u> The obligations of the Guarantors under this Guarantee shall be senior in right of payment to its other obligations and will be secured be a first lien in all of the Guarantors' tangible and intangible assets.**

[SIGNATURE PAGE TO FOLLOW]

8 of 9

IN WITNESS WHEREOF, each of the undersigned has caused this Guarantee to be duly executed and delivered as of the date first above written.

---

| | |
|:---|:---|
| White River Holdings Corp | White River Holdings Corp |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | CEO |
| White River E&P Management 1 LLC | White River E&P Management 1 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River Energy LLC | White River Energy LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River E&P LLC | White River E&P LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River SPV 2 LLC | White River SPV 2 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River SPV 3 LLC | White River SPV 3 LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |
| White River Operating LLC | White River Operating LLC |
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir, Manager |

---

9 of 9

## Exhibit 10.24

**Exhibit 10.24**

**REGISTRATION RIGHTS AGREEMENT**

This Registration Rights Agreement (this "<u>Agreement</u>") is made and entered into as of December 16, 2022, between White River Energy Corp, a Nevada corporation, 609 West Dickson St. Suite 102G, Fayetteville, AR 72701 (the "<u>Company</u>") and the purchaser party to the Purchase Agreement referred to below (the "<u>Purchaser</u>").

This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof between the Company and the Purchaser (the "<u>Purchase Agreement</u>").

The Company and the Purchaser hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>

**Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase Agreement.** As used in this Agreement, the following terms shall have the following meanings:

"<u>Advice</u>" shall have the meaning set forth in Section 6(d).

"<u>Effectiveness Date</u>" means, with respect to any Registration Statements which may be required pursuant hereto, the 30<sup>th</sup> calendar day following the date on which the Company first knows, or reasonably should have known, that a Registration Statement is required hereunder; <u>provided</u>, <u>however</u>, in the event the Company is notified by the Commission that one of the above Registration Statements will not be reviewed or is no longer subject to further review and comments, the Effectiveness Date as to such Registration Statement shall be the fifth Trading Day following the date on which the Company is so notified if such date precedes the dates required above.

"<u>Effectiveness Period</u>" shall have the meaning set forth in Section 2(a).

"<u>Event</u>" shall have the meaning set forth in Section 2(b).

"<u>Event Date</u>" shall have the meaning set forth in Section 2(b).

"Excluded Registration Statement" means the registration statement on Form S-1 filed by Company with the Commission on December 7, 2022 (File No. 333-268707), as may be amended from time-to-time, which relates to the spin-off by Ecoark Holdings Inc. of the Company's common stock and the resale of shares of common stock by certain selling stockholders underlying the Company's Series C Convertible Preferred Stock and shares of common stock issuable by the Company upon the exercise of certain warrants.

"<u>Filing Date</u>" means, with respect to any Registration Statements which may be required pursuant hereto, the 30th day following the date on which the Company first knows, or reasonably should have known that such additional Registration Statement is required hereunder.

"<u>Holder</u>" or "<u>Holders</u>" means the holder or holders, as the case may be, from time to time of Registrable Securities.

"<u>Indemnified Party</u>" shall have the meaning set forth in Section 5(c).

Page **1** of **13**

"<u>Indemnifying Party</u>" shall have the meaning set forth in Section 5(c).

"<u>Losses</u>" shall have the meaning set forth in Section 5(a).

"<u>Proceeding</u>" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

"<u>Prospectus</u>" means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus.

"<u>Registrable Securities</u>" means (i) shares of common stock underlying the Note, including, without limitation, any shares of common stock issued or issuable in respect of conversions under the Notes or in respect of the anti-dilution provisions in the Note, and (ii) any securities issued or issuable in connection with any stock split, dividend or other distribution recapitalization or similar event with respect to the foregoing.

"<u>Registration Statement</u>" means the registration statements (other than the Excluded Registration Statement) required to be filed hereunder and any additional registration statements contemplated by Section 2 hereof, including (in each case) the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such registration statement.

"<u>Rule 415</u>" means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>Rule 424</u>" means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

"<u>SEC Guidance</u>" means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements or requests of the Commission staff and (ii) the Securities Act and the rules and regulations promulgated thereunder.

Page **2** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Piggy-Back Registrations</u>. If at any time while the any Purchaser holds either a Note or shares of common stock issued in connection with a conversion of the Note, the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on the Excluded Registration Statement or on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity securities issuable in connection with the stock option or other employee benefit plans, then the Company shall send to each Holder a written notice of such determination and, if within thirty days after the date of such notice, any such Holder shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If: (i) a Registration Statement is not filed on or prior to its Filing Date (if the Company files a Registration Statement without affording the Holders the opportunity to reasonably review and comment on the same as required by Section 3(a), the Company shall not be deemed to have satisfied this clause (i)), or (ii) the Company fails to file with the Commission a request for acceleration in accordance with Rule 461 promulgated under the Securities Act, within five Trading Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the Commission that a Registration Statement will not be "reviewed," or not subject to further review; or (iii) prior to its Effectiveness Date, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the Commission in respect of such Registration Statement within 30 calendar days after the receipt of comments by or notice from the Commission that such amendment is required in order for a Registration Statement to be declared effective; or (iv) a Registration Statement filed or required to be filed hereunder is not declared effective by the Commission by its Effectiveness Date; or (v) after the Effectiveness Date, a Registration Statement ceases for any reason to remain continuously effective as to all Registrable Securities for which it is required to be effective, or the Holders are not permitted to utilize the Prospectus therein to resell such Registrable Securities for 10 consecutive calendar days but no more than an aggregate of 15 calendar days during any 12-month period (which need not be consecutive Trading Days) (any such failure or breach being referred to as an "<u>Event</u>", and for purposes of clause (ii) or (iv) the date on which such Event occurs, or for purposes of clause (ii) the date on which such five Trading Day period is exceeded, or for purposes of clause (iii) the date which such 30 calendar day period is exceeded, or for purposes of clause (v) the date on which such 10 or 15 calendar day period, as applicable, is exceeded being referred to as "<u>Event Date</u>"), then in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to 1.5% of the outstanding principal of the Notes for any Registrable Securities then held by such Holder for the first 30 days (or part thereof) after the 30 days, and an additional 1.5 % for any subsequent 30-day period (or part thereof), thereafter. If the Company fails to pay any partial liquidated damages pursuant to this Section in full within seven days after the date payable, the Company will pay interest thereon at a rate of 18% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The partial liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata basis for any portion of a month prior to the cure of an Event. Anything to the contrary notwithstanding, total liquidated damages hereunder shall be capped at 12% of the outstanding principal amount of the Note(s) as of the date of this Agreement which amount shall exclude any accrued interest.

Page **3** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything herein to the contrary, the number of Registrable Securities the Company is required to register under this Agreement and the timing of such registration, and the liquidated damages pursuant to <u>Section 2(b)</u>, shall not apply if and to the extent that the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement (including as a result of the Excluded Registration Statement). In the event the Company amends a Registration Statement in accordance with the foregoing to reduce the number of Registrable Securities registered for resale thereunder, the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by SEC Guidance provided to the Company or available to registrants of securities in general, one or more Registration Statements for the Purchaser's resale of those Registrable Securities that were not registered for resale on such Registration Statement. With respect to any Registrable Securities not included in a Registration Statement pursuant to this Section 2, the term "Filing Date" shall be construed to mean the earliest practical date on which the Company is permitted by SEC Guidance to file an additional Registration Statement related to those Registrable Securities. Notwithstanding anything herein to the contrary, the Company may, but shall not be required to, include some or all of the Registrable Securities in the Excluded Registration Statement, if and to the extent permitted by SEC Guidance and the definitive agreements entered into in connection with the Excluded Registration Statement, forms of which were publicly filed by the Company with the Commission as exhibits to the Excluded Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Registration Procedures</u>

In connection with the Company's registration obligations hereunder, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not less than five Trading Days prior to the filing of each Registration Statement or any related Prospectus or any amendment or supplement thereto (including any document that would be incorporated or deemed to be incorporated therein by reference), the Company shall, (i) furnish to each Holder copies of all such documents proposed to be filed, which documents (other than those incorporated or deemed to be incorporated by reference) will be subject to the review of such Holders, and (ii) cause its officers and directors, counsel and independent certified public accountants to respond to such inquiries as shall be necessary, in the reasonable opinion of respective counsel to conduct a reasonable investigation within the meaning of the Securities Act. The Company shall not file the Registration Statement or any such Prospectus or any amendments or supplements thereto to which the Holders of a majority of the Registrable Securities shall reasonably object in good faith, provided that, the Company is notified of such objection in writing no later than five Trading Days after the Holders have been so furnished copies of such documents. Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex A (a **"**<u>Selling Holder Questionnaire</u>**"**) not less than two Trading Days prior to the Filing Date or by the end of the fourth Trading Day following the date on which such Holder receives draft materials in accordance with this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or supplemented by any required Prospectus supplement (subject to the terms of this Agreement), and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration Statement or any amendment thereto and as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and to the Commission relating to a Registration Statement; and (iv) comply in all material respects with the provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus as so supplemented.

Page **4** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If during the Effectiveness Period, the number of Registrable Securities at any time exceeds the number of shares of Common Stock then registered in a Registration Statement, then the Company shall file as soon as reasonably practicable but in any case prior to the applicable Filing Date, an additional Registration Statement covering the resale by the Holders of not less than such number of such Registrable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notify the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible (and, in the case of (i)(A) below, not less than five Trading Days prior to such filing) and (if requested by any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective amendment to a Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a "review" of such Registration Statement and whenever the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders); and (C) with respect to a Registration Statement or any post-effective amendment, when the same has become effective; (ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement, Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and (vi) the occurrence or existence of any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow continued availability of the Registration Statement or Prospectus; provided that any and all of such information shall remain confidential to each Holder until such information otherwise becomes public, unless disclosure by a Holder is required by law; <u>provided</u>, <u>further</u>, notwithstanding each Holder's agreement to keep such information confidential, the Holders make no acknowledgement that any such information is material, non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) Use its commercially reasonable efforts to avoid the issuance of, or, if issued, obtain the withdrawal of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any order suspending the effectiveness of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Furnish to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference) promptly after the filing of such documents with the Commission.

Page **5** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Promptly deliver to each Holder, without charge, as many copies of the Prospectus or Prospectuses (including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request in connection with resales by the Holder of Registrable Securities. Subject to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto, except after the giving on any notice pursuant to Section 3(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Prior to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions of the Registrable Securities covered by each Registration Statement; provided, that the Company shall not be required to qualify generally to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction where it is not then so subject or file a general consent to service of process in any such jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If requested by the Holders, cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered in such names as any such Holders may request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Upon the occurrence of any event contemplated by this Section 3, as promptly as reasonably possible under the circumstances taking into account the Company's good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement to the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (ii) through (v) of Section 3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall suspend use of such Prospectus. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company shall be entitled to exercise its right under this Section 3(j) to suspend the availability of a Registration Statement and Prospectus for a period not to exceed 60 days (which need not be consecutive days) in any 12-month period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k) Comply with all applicable rules and regulations of the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company may require each selling Holder to furnish to the Company a certified statement as to the number of shares of Common Stock beneficially owned by such Holder and, if required by the Commission, the person thereof that has voting and dispositive control over the Shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable Securities solely because any Holder fails to furnish such information within three Trading Days of the Company's request, any liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

Page **6** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Registration Expenses</u>. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including, without limitation, fees and expenses (A) with respect to filings required to be made with the Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications or exemptions of the Registrable Securities and determination of the eligibility of the Registrable Securities for investment under the laws of such jurisdictions as requested by the Holders), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of the Registrable Securities included in a Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnification</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnification by the Company</u>. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, brokers (including brokers who offer and sell Registrable Securities as principal as a result of a pledge or any failure to perform under a margin call of Common Stock), investment advisors and employees of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable attorneys' fees) and expenses (collectively, "<u>Losses</u>"), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (i) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and approved by such Holder expressly for use in a Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose) or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(ii)-(vi), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection with the transactions contemplated by this Agreement of which the Company is aware.

Page **7** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnification by Holders</u>. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, to the extent arising out of or based solely upon: (x) such Holder's failure to comply with the prospectus delivery requirements of the Securities Act or (y) any untrue or alleged untrue statement of a material fact contained in any Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information so furnished in writing by such Holder to the Company specifically for inclusion in such Registration Statement or such Prospectus or (ii) to the extent that (1) such untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder's proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(d)(ii)-(vi), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of the Advice contemplated in Section 6(d). In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon the sale of the Registrable Securities giving rise to such indemnification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conduct of Indemnification Proceedings</u>. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an "<u>Indemnified Pa</u>rty"), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the "<u>Indemnifying Party</u>") in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have prejudiced the Indemnifying Party.

An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof and the reasonable fees and expenses of one separate counsel shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably withheld, delayed or denied. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, which consent shall not be unreasonably withheld, delayed or denied, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

Page **8** of **13**

Subject to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party; provided, that the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to such actions for which such Indemnified Party is not entitled to indemnification hereunder, determined based upon the relative faults of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Contribution</u>. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys' or other reasonable fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission, except in the case of fraud by such Holder.

The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Miscellaneous</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Remedies</u>. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach, it shall waive the defense that a remedy at law would be adequate.

Page **9** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Compliance</u>. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Discontinued Disposition</u>. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company of the occurrence of any event of the kind described in Section 3(d), such Holder will forthwith discontinue disposition of such Registrable Securities under a Registration Statement until such Holder's receipt of the copies of the supplemented Prospectus and/or amended Registration Statement, or until it is advised in writing (the "<u>Advice</u>") by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company will use its commercially reasonable efforts to ensure that the use of the Prospectus may be resumed as promptly as it practicable. The Company agrees and acknowledges that any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject to the provisions of Section 2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Amendments and Waivers</u>. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by the Company and the Purchaser. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders and that does not directly or indirectly affect the rights of other Holders may be given by Holders of all of the Registrable Securities to which such waiver or consent relates; <u>provided</u>, <u>however</u>, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance with the provisions of the immediately preceding sentence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth in the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Successors and Assigns</u>. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of all of the Holders of the then-outstanding Registrable Securities. Each Holder may assign their respective rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>No Inconsistent Agreements</u>. Neither the Company nor any of its subsidiaries has entered, as of the date hereof, nor shall the Company or any of its subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Except as set forth on <u>Schedule 6(i)</u>, neither the Company nor any of its subsidiaries has previously entered into any agreement granting any registration rights with respect to any of its securities to any Person that have not been satisfied in full.

Page **10** of **13**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Execution and Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined with the provisions of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Cumulative Remedies</u>. The remedies provided herein are cumulative and not exclusive of any remedies provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Headings</u>. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Independent Nature of Holders' Obligations and Rights</u>. The obligations of each Holder hereunder are several and not joint with the obligations of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Holders are in any way acting in concert with respect to such obligations or the transactions contemplated by this Agreement. Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

Page **11** of **13**

IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

---

| | |
|:---|:---|
| **WHITE RIVER ENERGY CORP** | **WHITE RIVER ENERGY CORP** |
| */s/ Jay Puchir* | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | CEO |

---

[SIGNATURE PAGE OF HOLDERS FOLLOWS]

Page **12** of **13**

SIGNATURE PAGE OF HOLDER TO REGISTRATION RIGHTS AGREEMENT

Name of Investing Entity: <u>Smithline</u> <u>Family Trust I</u>________

*Signature of Authorized Signatory of Investing Entity*: *<u>/s/ Richard Smithline</u>*___

Name of Authorized Signatory: <u>Richard Smithline</u>__________

Title of Authorized Signatory: <u>Authorized Signatory</u>________

Page **13** of **13**

## Exhibit 10.25

**Exhibit 10.25**

White River Energy Corp,

609 West Dickson St. Suite 102G,

Fayetteville, AR 72701

Attn.: Mr. Jay Puchir

Chief Executive Officer

December 16, 2022

Dear Mr. Puchir:

This letter agreement (this "Agreement"), when executed by the parties hereto, will memorialize our understanding and constitute an agreement between White River Energy Corp, a Nevada corporation (collectively with its subsidiaries, the "Company") and Centrecourt Asset Management LLC, a New York limited liability company ("Centrecourt Asset Management"), pursuant to which the Company agrees to retain Centrecourt Asset Management and Centrecourt Asset Management agrees to be retained by the Company under the terms and conditions set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Company hereby retains Centrecourt Asset Management to provide it with financial advisory services. As compensation for the financial
 advisory services to be provided by Centrecourt Asset Management to the Company pursuant to this Agreement and for services previously
 rendered by Centrecourt Asset Management, the Company shall pay to Centrecourt Asset Management or its designee 1,666,667 shares
 of Common Stock, par value, $0.0001 per share, of the Company (the "Shares"), subject to adjustment as described below,
 to be delivered to Centrecourt Asset Management or its designee(s).All Shares issuable hereunder shall be made pursuant to an equity
 incentive plan in place for the Company and approved by the Company's Board of Directors. The number of Shares to be received
 by Centrecourt Asset Management shall be increased to the extent that as of the date a registration statement filed by the Company
 pursuant to this Agreement registering Centrecourt Asset Management's or its designee's sale of the Shares is declared
 effective by the Securities and Exchange Commission (the "Effective Date"), the closing price per share of the Company's
 common stock as reported on the OTCQB or other trading market on which the Company's common stock is then listed or quoted
 is below $1.00 per share (such price shall be proportionately adjusted for stock dividends, reverse stock splits and similar events),
 such that at such Effective Date of there shall be registered an additional number of shares such that the total number of registered
 Shares received by Centrecourt Asset Management or its designee under this Agreement shall equal the quotient obtained by dividing
 $1,666,666.67 by such price per share of the common stock at the Effective Date. In addition, Centrecourt Asset Management or its
 designee shall receive on the date ending 90 days after the Effective Date, an additional number of Shares if necessary such that
 Centrecourt Asset Management or its designee shall have received a number of shares equal to $1,666,666.67 divided by the price per
 share of the common stock 90 days after the Effective Date using the formula set forth in the preceding sentence based as of such
 date. The intent of this provision is that Centrecourt Asset Management or its designee shall receive a dollar amount of registered
 Shares at least equal to $1,666,666.67 through a date ending 90 days after the Effective Date. In addition to such Shares, Centrecourt
 Asset Management may receive such other fees as are mutually agreed by the parties in writing. The Company agrees to register the
 Shares to be delivered as designated by Centrecourt Asset Management in a registration statement to be filed by the Company within
 90 days following the execution of this Agreement, or as soon thereafter as commercially reasonable at the request of Centrecourt
 Asset Management and to keep such registration statement effective in order that such Shares may be sold by Centrecourt Asset Management
 or its designees. The parties have executed a registration rights agreement, dated the date hereof, which governs the obligations
 of the parties with respect to the registration of the shares to be delivered as designated by Centrecourt Asset Management (the
 "Registration Rights Agreement").

1 of 4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company shall reimburse Centrecourt Asset Management for any and all reasonable expenses incurred by Centrecourt Asset Management in the performance of its duties hereunder, and Centrecourt Asset Management shall account for such expenses to the Company by submission of vouchers reasonably satisfactory to the Company setting forth in reasonable detai1 the amount and reason for such cost or expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. All obligations of Centrecourt Asset Management contained in this Agreement shall be subject to Centrecourt Asset Management's reasonable availability for such performance, in view of the nature of the requested service and the amount of notice received. Centrecourt Asset Management shall devote such time and effort to the performance of its duties hereunder as Centrecourt Asset Management shall determine is reasonably necessary for such performance. Centrecourt Asset Management may look to such others for such factual information, investment recommendations, economic advice and/or research, upon which to base its advice to the Company hereunder, as it shall deem appropriate. The Company shall furnish to Centrecourt Asset Management all information relevant to the performance by Centrecourt Asset Management of its obligations under this Agreement, or particular projects as to which Centrecourt Asset Management is acting as advisor, which will permit Centrecourt Asset Management to know all facts material to the advice to be rendered, and all materials or information reasonably requested by Centrecourt Asset Management. In the event that the Company fails or refuses to furnish any such material or information reasonably requested by Centrecourt Asset Management, and thus prevents or impedes Centrecourt Asset Management's performance hereunder, any inability of Centrecourt Asset Management to perform shall not be a breach of its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Nothing contained in this Agreement shall limit or restrict the right of Centrecourt Asset Management or of any partner, affiliate, employee, agent or representative of Centrecourt Asset Management, to be a partner, director, officer, employee, agent or representative of, or to engage in, any other business, whether or not of a similar nature to the Company's business, nor to limit or restrict the right of Centrecourt Asset Management to render services of any kind to any other corporation, firm, individual or association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Because Centrecourt Asset Management will be acting on your behalf, it is Centrecourt Asset Management's practice to receive indemnification. A copy of Centrecourt Asset Management's standard indemnification provisions (the "Indemnification Provisions") is attached to this Agreement and is incorporated herein and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This Agreement may not be transferred, assigned or delegated by any of the parties hereto without the prior written consent of the other party hereto; provided that Centrecourt Asset Management may assign its rights to payment to an affiliate without the prior written consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The failure or neglect of the parties hereto to insist, in any one or more instances, upon the strict performance of any of the terms or conditions of this Agreement, or their waiver of strict performance of any of the terms or conditions of this Agreement, shall not be construed as a waiver or relinquishment in the future of such term or condition, but the same shall continue in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Any notices hereunder shall be sent to the Company and to Centrecourt Asset Management at their respective addresses. Any notice shall be given by hand delivery, email transmission or overnight delivery or courier service, against receipt therefor, and shall be deemed to have been given when received. Either party may designate any other address to which notice shall be given by giving written notice to the other of such change of address in the manner herein provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. This Agreement has been made in the State of New York and shall be construed and governed in accordance with the laws thereof without giving effect to principles governing conflicts of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. This Agreement contains the entire agreement between the parties as to the subject matter hereof, may not he altered or modified, except in writing, and signed by the party to be charged thereby, and supersedes any and all previous agreements between the parties relating to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. This Agreement shall be binding upon the parties hereto and their respective heirs, administrators, successors and permitted assigns.

2 of 4

If you are in agreement with the foregoing, please execute two copies of this letter in the space provided below and return them to the undersigned.

---

| | |
|:---|:---|
| Yours truly, | Yours truly, |
| **Centrecourt Asset Management LLC** | **Centrecourt Asset Management LLC** |
| By: | */s/ Richard Smithline* |
| Name: | Richard Smithline |
| Title: | Chief Executive Officer |

---

ACCEPTED AND AGREED TO

AS OF THE DATE FIRST ABOVE

WRITTEN:

**White River Energy Corp,**

---

| | |
|:---|:---|
| By: | */s/ Jay Puchir* |
| Name: | Jay Puchir |
| Title: | Chief Executive Officer |

---

3 of 4

**INDEMNIFICATION PROVISIONS**

White River Energy Corp , a corporation (collectively with its Subsidiaries, and future subsidiaries, the "Company"), agree to indemnify and hold harmless Centrecourt Asset Management LLC, a New York limited liability company ("Centrecourt Asset Management"), and each of its members, officers, directors and affiliates, including without limitation, Smithline Family Trust I , a New York family trust, from and against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements (and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs, expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise are each a "Liability"), including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing or defending any such action, suit, proceeding or investigation (whether or not in connection with litigation in which Centrecourt Asset Management is a party), directly or indirectly, relating to, based upon, arising out of, or in connection with, its acting for the Company under the Agreement, dated as of December , 2022 between the Company and Centrecourt Asset Management to which these indemnification provisions are attached and form a part (the "Agreement"), except to the extent that any such Liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from Centrecourt Asset Management' gross negligence or willful misconduct. The Company also agrees that Centrecourt Asset Management shall not have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of Centrecourt Asset Management, except to the extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from Centrecourt Asset Management's gross negligence or willful misconduct.

The indemnification provisions contained herein shall be in addition to any liability which the Company may otherwise have to Centrecourt Asset Management or the persons identified below in this sentence and shall extend to the following: Centrecourt Asset Management, its affiliated entities, partners, employees, legal counsel, agents and controlling persons (within the meaning of the federal securities laws), and the officers, directors, employees, legal counsel, agents and controlling persons of any of them. All references to Centrecourt Asset Management in these indemnification provisions shall be understood to include any and all of the foregoing.

If any action, suit, proceeding or investigation is commenced, as to which Centrecourt Asset Management proposes to demand indemnification, it shall notify the Company with reasonable promptness (but any failure by Centrecourt Asset Management to notify the Company shall not relieve the Company from its obligations hereunder except to the extent the Company is damaged by such failure); and the Company shall promptly assume the defense of such action, suit, proceeding or investigation, including the employment of counsel (reasonably satisfactory to Centrecourt Asset Management) and payment of fees and expenses. Notwithstanding the foregoing sentence, Centrecourt Asset Management shall have the right to retain counsel of its own choice to represent it and such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by the Company, but the fees and expenses of such counsel employed by Centrecourt Asset Management shall be at the expense of Centrecourt Asset Management unless (i) the employment of such counsel shall have been authorized in writing by the Company in connection with the defense of such action, (ii) the Company shall not have promptly employed counsel reasonably satisfactory to Centrecourt Asset Management, or (iii) counsel appointed to represent Centrecourt Asset Management shall have reasonably concluded that there is a conflict of interest that precludes such counsel from representing the Company or its affiliates and Centrecourt Asset Management and its affiliates, in such event such fees and expenses shall be borne by the Company and the Company shall not have the right to direct the defense of such action on behalf of Centrecourt Asset Management. The Company shall be liable for any settlement of any claim against Centrecourt Asset Management made with the Company's written consent, which consent shall not be unreasonably withheld. The Company shall not, without the prior written consent of Centrecourt Asset Management, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or consent includes, as unconditional term thereof, the giving by the c1aimant to Centrecourt Asset Management of an unconditional release from all liability in respect of such claim.

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these indemnification provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions hereof provide for indemnification in such case, then the Company, on the one hand, and Centrecourt Asset Management, on the other hand, shall contribute to the losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses, and disbursements to which the indemnified persons may be subject in accordance with the relative benefits received by the Company, on the one hand, and Centrecourt Asset Management, on the other hand, and also the relative fault of the Company, on the one hand, and Centrecourt Asset Management, on the other hand, in connection with the statements, acts or omissions which resulted in such losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses or disbursements and all relevant equitable considerations shall also be considered. No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is also found liable for such fraudulent misrepresentation. Notwithstanding the foregoing, Centrecourt Asset Management shall not be obligated to contribute any amount hereunder that exceeds the amount of fees previously received by Centrecourt Asset Management pursuant to the Agreement.

Neither termination nor completion of the engagement of Centrecourt Asset Management referred to above shall affect these indemnification provisions which shall then remain operative and in full force and effect.

4 of 4

## Exhibit 10.26

**Exhibit 10.26**

**<u>REGISTRATION RIGHTS AGREEMENT</u>**

THIS REGISTRATION RIGHTS AGREEMENT ("Agreement") is entered into as of the 16th day of December, 2022 by and among White River Energy Corp, a Nevada corporation (the "Company") and Centrecourt Asset Management LLC, a New York limited liability company (the "Investor").

WHEREAS, the Company has agreed to provide certain registration rights to the Investor in order to induce the Investor to enter into that certain Consulting Agreement dated the date of this Agreement (the "Consulting Agreement").

Now, therefore, in consideration of the mutual promises and the covenants as set forth herein, the parties hereto hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Definitions</u>**. Unless the context otherwise requires, the capitalized words and terms defined in this Section 1 shall have the meanings herein specified for all purposes of this Agreement, applicable to both the singular and plural forms of any of the terms herein defined. Capitalized terms used and not otherwise defined herein shall; have the meanings ascribed to them under the Consulting Agreement.

"<u>Agreed Value</u>" means $1,666,666.67.

"<u>Agreement</u>" means this Registration Rights Agreement, as the same may be amended, modified or supplemented in accordance with the terms hereof.

"<u>Board</u>" means the Board of Directors of the Company.

"<u>Common Stock</u>" means the Company's authorized common stock, as constituted on the date of this Agreement, any stock into which such Common Stock may thereafter be changed and any stock of the Company of any other class, which is not preferred as to dividends or assets over any other class of stock of the Company and which is not subject to redemption, issued to the holders of shares of such Common Stock upon any re-classification thereof.

"<u>Commission</u>" means the Securities and Exchange Commission or any other governmental body at the time administering the Securities Act.

"<u>Company</u>" has the meaning assigned to it in the introductory paragraph of this Agreement.

"<u>Company Securities</u>" has the meaning any securities proposed to be sold by the Company for its own account in a registered public offering.

"<u>Effective Date</u>" has the meaning assigned to it in Section 3(a) of this Agreement.

"<u>Event</u>" has the meaning assigned to it in Section 2(b) of this Agreement.

"<u>Event Date</u>" has the meaning assigned to it in Section 2(b) of this Agreement.

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934 (or successor statute).

"<u>Excluded Forms</u>" means registration statements under the Securities Act on Forms S-4 and S-8, or any successors thereto.

"<u>Fair Market Value</u>" shall mean: (i) if the principal trading market for such securities is a national securities exchange or the OTCQB (or a similar system then in use), the last reported sales price on the principal market on the Event Date or if the Event Date is not a trading day, the trading day immediately prior to such an Event Date; or (ii) if (i) is not applicable, and if bid and ask prices for shares of Common Stock are reported by the principal trading market or the Pink Open Market , the average of the high bid and low ask prices so reported on the Event Date or if the Event Date is not a trading day on the trading day immediately prior to such Event Date. Notwithstanding the foregoing, if there is no last reported sales price or bid and ask prices, as the case may be, for the day in question, then Fair Market Value shall be determined as of the latest day prior to such day for which such last reported sales price or bid and ask prices, as the case may be, are available, unless such securities have not been traded on an exchange or in the over-the-counter market for 30 or more days immediately prior to the day in question, in which case the Fair Market Value shall be determined in good faith by, and reflected in a formal resolution of, the board of directors of the Company.

"<u>Filing Date</u>" has the meaning assigned to it in Section 2(a) of this Agreement.

"<u>Investor</u>" has the meaning assigned to it in the introductory paragraph of this Agreement.

"<u>Non-Registered Shares</u>" has the meaning assigned to it in Section 2(b) of this Agreement.

"<u>Person</u>" includes any natural person, corporation, trust, association, company, partnership, joint venture, limited liability company and other entity and any government, governmental agency, instrumentality or political subdivision.

"<u>PIPE Registration Statement</u>" means the registration statement on Form S-1 filed by Company with the Commission on December 7, 2022 (File No. 333-268707), as may be amended from time-to-time, which relates to the spin-off by Ecoark Holdings Inc. of the Company's common stock and the resale of shares of common stock by certain selling stockholders underlying the Company's Series C Convertible Preferred Stock and shares of common stock issuable by the Company upon the exercise of certain warrants.

The terms "<u>register</u>" "<u>registered</u>" and "<u>registration</u>" refer to a registration effected by preparing and filing a registration statement on other than any of the Excluded Forms in compliance with the Securities Act, and the declaration or ordering of the effectiveness of such registration statement.

"<u>Registrable Securities</u>" means the Shares issuable to the Investor pursuant the Consulting Agreement and (ii) any securities of the Company issued with respect to such Common Stock by way of a stock dividend or stock split or in connection with a combination, recapitalization, share exchange, consolidation or other reorganization of the Company.

"<u>Registration Statement</u>" means any registration statement filed by the Company pursuant to this Agreement.

"<u>Rule 144</u>" is defined in Section 9 of this Agreement.

"<u>Selling Expenses</u>" means all selling commissions, finder's fees and stock transfer taxes applicable to the Registrable Securities registered by the Investor and all fees and disbursements of counsel for the Investor.

"<u>SEC Guidance</u>" has the meaning assigned to it in Section 2(b) of this Agreement.

"<u>Securities Act</u>" means the Securities Act of 1933 (or successor statute).

"<u>Trading Day</u>" means a day on which the principal Trading Market is open for trading.

"<u>Trading Market</u>" means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Required Registration</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or about January 31, 2023 (as may be adjusted pursuant hereto, the "Filing Date"), the Company shall file with the Commission a Registration Statement on Form S-1 or such other form as may be appropriate in order to permit the Investor to publicly sell the Registrable Securities, provided however that notwithstanding anything herein to the contrary, the number of Shares the Company is required to register under this Agreement and the timing of such registration, and the liquidated damages pursuant to <u>Section 2(d)</u>, shall not apply if and to the extent that the Commission or any SEC Guidance sets forth a limitation on the number of Registrable Securities permitted to be registered on a particular Registration Statement (including as a result of the PIPE Registration Statement). In the event the Company amends a Registration Statement in accordance with the foregoing to reduce the number of Registrable Securities registered for resale thereunder, the Company will use its commercially reasonable efforts to file with the Commission, as promptly as allowed by SEC Guidance provided to the Company or available to registrants of securities in general, one or more Registration Statements for the Investor's resale of those Registrable Securities that were not registered for resale on such Registration Statement. With respect to any Registrable Securities not included in a Registration Statement pursuant to this Section 2(a), the term "Filing Date" shall be construed to mean the earliest practical date on which the Company is permitted by SEC Guidance to file an additional Registration Statement related to those Registrable Securities. Notwithstanding anything herein to the contrary, the Company may, but shall not be required to, include some or all of the Registrable Securities in the PIPE Registration Statement, if and to the extent permitted by SEC Guidance and the definitive agreements entered into in connection with the PIPE Registration Statement, forms of which were publicly filed by the Company with the Commission as exhibits to the PIPE Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If: (i) the Registration Statement is not filed on or prior to the Filing Date; or (ii) the Company fails to cause the Registration Statement to be declared effective by the Effective Date (any such failure or breach being referred to as an "Event," and the date on which such Event occurs being referred to as the "Event Date"), then, until the applicable Event is cured, the Company shall pay to the Investor, in cash, or in Common Stock at Fair Market Value at the Company's option, as liquidated damages and not as a penalty, an amount equal to 1.0% of the Agreed Value for each 30 day period (prorated for partial periods), up to a maximum of 6%, during which such Event continues uncured. While such Event continues, such liquidated damages shall be paid not less often than every 30 days. Any unpaid liquidated damages as of the date when an Event has been cured by the Company shall be paid within seven Trading Days following the date on which such Event has been cured by the Company. Notwithstanding anything herein to the contrary, to the extent that the registration of any or all of the Registrable Securities by the Company on a Registration Statement is prohibited (the "Non-Registered Shares") as a result of rules, regulations, or publicly-available written or oral guidance, positions or releases issued or actions taken by the Commission (including its Division of Corporation Finance or any other part of its staff) including pursuant to its authority with respect to Rule 415 (or successor rule) ("SEC Guidance") and the Company has registered at such time the maximum number of Registrable Securities permissible upon consultation with the Commission (including its Division of Corporation Finance or any other part of its staff), then the liquidated damages described in this Section 2(b) shall not be applicable to such Non-Registered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Obligations of the Company</u>**. If and whenever the Company is required by the provisions hereof to effect or cause the registration of any Registrable Securities under the Securities Act as provided herein, the Company shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) use commercially reasonable efforts to prepare and file with the Commission a Registration Statement with respect to such Registrable Securities and use commercially reasonable efforts to cause such Registration Statement to become effective within 10 days of the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) use commercially reasonable efforts to prepare and file with the Commission such amendments to such Registration Statement (including post-effective amendments) and supplements to the prospectus included therein as may be necessary to keep such Registration Statement effective, subject to the qualifications in Section 4(a), and to comply with the provisions of the Securities Act with respect to the sale or other disposition of all Registrable Securities covered by such Registration Statement during such period in accordance with the intended methods of disposition by the Investor set forth in such Registration Statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) furnish to the Investor such number of copies of such Registration Statement and of each such amendment and supplement thereto (in each case including all exhibits), such number of copies of the prospectus included in such Registration Statement (including each preliminary prospectus), in conformity with the requirements of the Securities Act, and such other documents, as each Investor may reasonably request, in order to facilitate the public sale or other disposition of the Registrable Securities owned by the Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) use all commercially reasonable efforts to make such filings under the securities or blue sky laws of New York to enable the Investor to consummate the sale in such jurisdiction of the Registrable Securities owned by the Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) notify the Investor at any time when a prospectus relating to their Registrable Securities is required to be delivered under the Securities Act, of the Company's becoming aware that the prospectus included in the related Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly prepare and furnish to the Investor a reasonable number of copies of a prospectus supplemented or amended so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to use commercially reasonable efforts to cause Registrable Securities to be quoted on each trading market and/or in each quotation service on which the Common Stock of the Company is then quoted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) notify the Investor of any stop order threatened or issued by the Commission and take all actions reasonably necessary to prevent the entry of such stop order or to remove it if entered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Other Procedures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the remaining provisions of this Section 4(a) and the Company's general obligation to use commercially reasonable efforts under Section 3, and subject further to SEC Guidance, the Company shall be required to maintain the effectiveness of a Registration Statement from the Effective Date until the earlier of (i) the sale of all Registrable Securities, or (ii) one year from the date of this Agreement. <u>Provided</u>, <u>however</u>, that the Company shall not be required to file any post-effective amendment to any Registration Statement or file any prospectus supplement under Rule 424(b)(3) of the Securities Act beginning six months from the date of this Agreement unless and until the Company fails to file with the Commission a Form 10-Q or Form 10-K within the time required by the rules of the Commission including Rule 12b-25 (or any successor rule). The Company shall have no liability to the Investor for delays in the Investor being able to sell the Registrable Securities (i) as long as the Company uses commercially reasonable efforts to file a Registration Statement, amendments to a Registration Statement, post-effective amendments to a Registration Statement or supplements to a prospectus contained in a registration statement (including any amendment or post effective amendments), (ii) where the required financial statements or auditor's consents are unavailable or (iii) where the Company would be required to disclose information at a time when it has no duty to disclose such information under the Securities Act, the Exchange Act, or the rules and regulations of the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In consideration of the Company's obligations under this Agreement, the Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(e) herein, the Investor shall forthwith discontinue his sale of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities until the Investor's receipt of the copies of the supplemented or amended prospectus contemplated by said Section 3(e) and, if so directed by the Company, shall deliver to the Company (at the Company's expense) all copies, other than permanent file copies, then in the Investor's possession of the prospectus covering such Registrable Securities current at the time of receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company's obligation to file any Registration Statement or amendment including a post-effective amendment, shall be subject to each Investor, as applicable, furnishing to the Company in writing such information and documents regarding such Investor and the distribution of such Investor's Registrable Securities as may reasonably be required to be disclosed in the Registration Statement in question by the rules and regulations under the Securities Act or under any other applicable securities or blue sky laws of the jurisdiction referred to in Section 3(d) herein. The Company's obligations are also subject to each Investor promptly executing any representation letter concerning compliance with Regulation M under the Exchange Act (or any successor rule or regulation). If any Investor fails to provide all of the information required by this Section 4(c), the Company shall have no obligation to include his Registrable Securities in a Registration Statement or it may withdraw such Investor's Registrable Securities from the Registration Statement without incurring any penalty or otherwise incurring liability to such Investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any such Registration Statement refers to the Investor by name or otherwise as a stockholder of the Company, but such reference to the Investor by name or otherwise is not required by the Securities Act, the rules thereunder or SEC Guidance, then the Investor shall have the right to require the deletion of the reference to the Investor, as may be applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In connection with the sale of Registrable Securities, the Investor shall deliver to each purchaser a copy of any necessary prospectus and, if applicable, prospectus supplement, within the time required by Section 5(b) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Registrable Securities are eligible for sale under Rule 144, the Investor shall sell the Registrable Securities under Rule 144 rather than the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Registration Expenses</u>. In connection with any registration of Registrable Securities pursuant to Section 2, the Company shall, whether or not any such registration shall become effective, from time to time, pay all expenses (other than Selling Expenses) incident to its performance of or compliance, including, without limitation, all registration, and filing fees, fees and expenses of compliance with securities or blue sky laws, word processing, printing and copying expenses, messenger and delivery expenses, fees and disbursements of counsel for the Company and all independent public accountants and other Persons retained by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Certain Limitations on Registration Rights</u>**<u>.</u> If, at any time prior to the effectiveness of any Registration Statement filed pursuant to this Agreement, if the Company determines to file a Registration Statement with the Commission for the public sale of its securities and the managing underwriter of such offering offers to purchase the Registrable Securities for its own account at the same price including underwriting discounts and applicable expenses as paid to the Company, the Investor shall either (i) elect to include its Registrable Securities being registered pursuant to this Agreement in the Registration Statement covering the sale of the Company's securities, or (ii) immediately cease its public sales for a period of 90 days following the effective date of the Registration Statement covering the sale by the Company. Additionally, no Investor may participate in the Registration Statement relating to the sale by the Company of its Common Stock as provided above unless such Investor enters into an underwriting agreement with the managing underwriter and completes and/or executes all questionnaires, indemnities and other reasonable documents requested by the managing underwriter. The Investor shall be deemed to have agreed by acquisition of its Registrable Securities not to effect any public sale or distribution, including any sale pursuant to Rule 144 under the Securities Act, of any Registrable Securities and to use its best efforts not to effect any such public sale or distribution of any other equity security of the Company (including any short sale) or of any security convertible into or exchangeable or exercisable for any equity security of the Company (other than as part of such underwritten public offering) within 10 days before or 90 days after the effective date of such Registration Statement. In such event, the Investor shall, if requested, sign a customary market stand-off letter with the Company's managing underwriter, and to comply with applicable rules and regulations of the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Allocation of Securities Included in Registration Statement</u>**<u>.</u> In the case of a registration pursuant to Section 7 for the Company's account, if the Company's managing underwriter shall advise the Company and the Investor in writing that the inclusion in any registration pursuant hereto of some or all of (a) the Registrable Securities sought to be registered by the Investor and securities offered by other holders, and (b) the Company's securities sought to be registered creates a substantial risk that the proceeds or price per unit that will be derived from such registration will be reduced or that the number of securities to be registered is too large a number to be reasonably sold, (i) first, the number of Company securities sought to be registered shall be included in such registration, and (ii) next, the number of Registrable Securities offered by the Investor and securities offered by other holders shall be included in such registration to the extent permitted by the Company's managing underwriter with the number of Registrable Securities and such other securities being registered determined on a pro-rata basis based on the number of Registrable Securities and securities the participating holders including the Investor desire to have registered; <u>provided</u>, <u>however</u>, that, if the Investor would be required pursuant to the provisions of this Section 7 to reduce the number of Registrable Securities that he may include in such registration, the Investor may withdraw all or any portion of its Registrable Securities from such registration and may resume selling shares under the Registration Statement (assuming it is effective) referred to in Section 2 after the 90-day lock-up period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Rule 144</u>.** For one year from the date of this Agreement, the Company covenants that it will file the reports required to be filed under the Exchange Act and the rules and regulations adopted by the Commission thereunder (or, in the event that the Company is not required to file such reports, it will make publicly available information as set forth in Rule 144(c)(2) promulgated under the Securities Act), and it will take such further action as the Investor may reasonably request, or to the extent required from time to time to enable the Investor to sell their Registrable Securities without registration under the Securities Act within the limitation of the exemption provided by (a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (b) any similar rule or regulation hereafter adopted by the Commission (collectively, "Rule 144"). Upon request of the Investor, the Company will deliver to the Investor a written statement as to whether it has complied with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Severability</u>**. In the event any parts of this Agreement are found to be void, the remaining provisions of this Agreement shall nevertheless be binding with the same effect as though the void parts were deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Counterparts</u>**. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The execution of this Agreement may be by actual or facsimile signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Benefit</u>**. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their legal representatives, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Notices and Addresses</u>**. All notices, offers, acceptance and any other acts under this Agreement (except payment) shall be in writing, and shall be sufficiently given if delivered to the addressees in person, by Federal Express or similar overnight next business day delivery, or by email delivery followed by overnight next business day delivery, as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the Company: | White River Energy Corp, |
|  | 609 West Dickson St. Suite 102G, |
|  | Fayetteville, AR 72701 |
|  | Attention: Jay Puchir |
|  | Email: jpuchir@white-river.com |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With a Copy to: | Michael D. Harris, Esq. |
|  | Nason, Yeager, Gerson, Harris & Fumero, P.A. |
|  | 3001 PGA Boulevard, Suite 305 |
|  | Palm Beach Gardens, FL 33410 |
|  | Telephone: (561) 686-3307 |
|  | Email: mharris@nasonyeager.com |

---

To the Investor: At the address on the signature page

or to such other address as any of them, by notice to the other may designate from time to time. Time shall be counted from the date of transmission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Attorneys' Fees</u>**. In the event that there is any controversy or claim arising out of or relating to this Agreement, or to the interpretation, breach or enforcement thereof, and any action or proceeding relating to this Agreement is filed, the prevailing party shall be entitled to an award by the court of reasonable attorneys' fees, costs and expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Oral Evidence</u>**. This Agreement constitutes the entire Agreement between the parties and supersedes all prior oral and written agreements between the parties hereto with respect to the subject matter hereof. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, except by a statement in writing signed by the party or parties against which enforcement or the change, waiver discharge or termination is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Additional Documents</u>**. The parties hereto shall execute such additional instruments as may be reasonably required by their counsel in order to carry out the purpose and intent of this Agreement and to fulfill the obligations of the parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Governing Law</u>**. This Agreement and any dispute, disagreement, or issue of construction or interpretation arising hereunder whether relating to its execution, its validity, the obligations provided herein or performance shall be governed or interpreted according to the internal laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Reserved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. **<u>Section or Paragraph Headings</u>**. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. **<u>Force Majeure</u>**. The Company shall be excused from any delay in performance or for non-performance of any of the terms and conditions of this Agreement caused by any circumstances beyond its control, including, but not limited to, any Act of God, fire, flood, or government regulation, direction or request, or accident, interruption of telecommunications facilities, pandemic, labor dispute, unavoidable breakdown, civil unrest or disruption to the extent that any such circumstances affect the Company's ability to perform its obligations under this Agreement or the ability of the Commission to perform its responsibilities under the Securities Act.

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be executed personally or by a duly authorized representative thereof as of the day and year first above written.

---

| | |
|:---|:---|
| THE COMPANY: | THE COMPANY: |
| WHITE RIVER ENERGY CORP | WHITE RIVER ENERGY CORP |
| By: | */s/ Jay Puchir* |
|  | Jay Puchir |
|  | Chief Executive Officer |
| INVESTOR: | INVESTOR: |
| CENTRECOURT ASSET MANAGEMENT LLC | CENTRECOURT ASSET MANAGEMENT LLC |
|  | */s/ Richard Smithline* |
|  | Signature |
|  | *Richard L. Smithline* |
|  | Printed Name of Investor |
|  | CEO |
|  | Title of Authorized Signatory if Investor |
|  | is a corporation or other entity |
|  | Signature of spouse or co-owner, if any |
|  | Address of Investor |

---

## Exhibit 10.27

**Exhibit 10.27**

**<u>MEMBERSHIP INTEREST PURCHASE AGREEMENT</u>**

THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT (the "**Agreement**") is made as of January 23, 2023 (the "**Effective Date**") by and among Commenda Inc., a Delaware corporation ("**Seller**"), on the one hand, and White River Holdings Corp., a Delaware corporation ("**Purchaser**"), on the other. Seller and the Company are sometimes collectively referred to herein as "**Sellers**". Seller, the Company, and Purchaser are hereinafter each referred to individually as a "**Party**" and collectively as the "**Parties**."

**RECITALS**

**WHEREAS** Seller is the sole member of Commenda Securities LLC, a Delaware limited liability company (the "**Company"),** a broker-dealer in good standing with the Financial Industry Regulatory Authority ("**FINRA**").

**WHEREAS** Seller desires to sell to Purchaser and Purchaser desires to purchase from Seller all of Seller's Membership Interest in the Company (the "**Membership Interest**") upon the Financial Industry Regulatory Authority's ("**FINRA**") approval of the Continued Membership Application ("**CMA**") pursuant to FINRA Rule 1017 ("**FINRA Approval**"); and

**NOW**, **THEREFORE**, in consideration of the premises and mutual covenants, agreements, terms, and conditions herein contained (collectively, "**Terms**"), the sufficiency and adequacy of which is hereby acknowledged, each of the Parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Purchase and Sale of the Membership Interest**. Subject to the terms and conditions set forth herein, at the Closing Seller shall sell to Purchaser, and Purchaser shall purchase from Seller, all of Seller's right, title, and interest in and to the Membership Interest, free and clear of all encumbrances, other than restrictions on transfer arising under applicable state or federal securities laws (the "**Transaction**"), for $70,000 together with up to $30,000 of liabilities incurred in the ordinary course of business or credits for prepaid expenses (the "**Purchase Price**"). The Parties agree and acknowledge that Purchaser has paid the Seller a non-refundable deposit of $10,000 (the "**Deposit**"), which will be credited against the Purchase Price at the Closing. The Purchase Price plus all cash that shall remain on the books as of the Closing Date (the "Cash Reserve"), less the Deposit shall be referred to as the "**Remaining Purchase Price**." The Company agrees to record the transfer of the Membership Interest and following such transfer, the Purchaser will be the sole member of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Closing**. The Transaction shall take place electronically when all of the condition's precedent have been met including approval of the change of control by FINRA and any applicable states and Seller has provided evidence of performance that is acceptable to Purchaser (the "**Closing**"). At the Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Seller
 will deliver to Purchaser the following documents: (i) an executed resolution of the sole member of the Company resigning as manager
 and naming Purchaser as the sole member, (ii) the FINRA Approval, and approval by any applicable states, (iii) documents evidencing
 pre-paid operating expenses, including annual audit expenses for the year ended December 31, 2023, regulatory fees, etc. and a calculation
 of the pro rata amount owed to Seller (the "**Prepaid Expenses** "), (iv) evidence of the Cash Reserves as of the Closing
 Date, and (v) documents evidencing the reasonable expenses incurred by Sellers in connection with the documentation and closing of
 Transaction, with such expenses not to exceed $20,000 ()"**Transaction Expenses** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Purchaser
 will deliver to Seller payment of (i) the Remaining Purchase Price, (ii) the verified Cash Reserves, (iii) a refund of the pro rata
 share of the Prepaid Expenses paid in advance by Sellers for the period after the Closing, and (iv) the agreed upon Transaction Expenses.
 All payments by Purchaser shall be by wire transfer pursuant to instructions provided by Seller to Purchaser.

2.3. If
 the Closing occurs prior to completion of the audited financial statements for the year ended December 31, 2022, $8,300 shall be
 deposited in escrow with Purchaser's attorneys and released to Seller only after the covenants in Section 9.6 concerning auditor
 co-operation have been complied with to the full satisfaction of Seller's auditors. If the auditors give written notice to
 Seller and Purchaser that such co-operation is not forthcoming, the funds shall be released from escrow after 10 days have elapsed
 unless the audited financial statements have been delivered to Seller within such 10-day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Management and Operation**. The management and operation of the Company shall continue under the current structure in place until the Closing subject to the provisions of Section 4 below. Purchaser shall file a CMA application seeking authorization from the relevant regulatory authorities, including FINRA's approval of the CMA application to assume future management and operation of the Company. Sellers and Purchaser agree and covenant to cooperate fully with each other in assisting with any request and, and in the event such approval is granted by FINRA, to cooperate fully in a transition of management and operation by executing such documents as are needed to affect a such a change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Pre-Closing Regulatory Compliance**. If the current management of Company resigns prior to Closing, Purchaser will arrange at Purchaser's expense for replacement principals to manage the Company prior to the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Seller Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The
 Seller shall be entitled to any accounts receivable of the Company after the Closing provided they are from former clients for services
 delivered on engagements prior to Closing. All bills due and payable after the Closing shall be (i) the sole responsibility of the
 Purchaser to the extent they arise from services performed and property purchased or leased after the Closing and (ii) the sole responsibility
 of the Seller to the extent they arise from services performed and property purchased or leased prior to the Closing except as provided
 in Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Seller
 shall cooperate with Purchaser to complete and file with FINRA the CMA and any change of control requirements by any state in which
 the Company is registered.

5.3. Seller
 agrees to operate the Company in the ordinary course of business and not make any material changes to its operations prior to the
 Closing subject to the provisions of Section 4 above.

5.4. Seller
 agrees to execute and prepare all documents necessary to consummate this Agreement and the Transaction.

5.5. Seller
 agrees to provide Purchaser with copies of all the Company's financial information, contracts, and outstanding obligations
 including any filings made with the Securities and Exchange Commission, ()"**SEC**") FINRA and any states since January
 1, 2021.

5.6. Seller
 agrees that the Company will not enter into any new agreements that create additional liability for the Company without the prior
 written approval of Purchaser, which approval can be withheld for any reason.

5.7. Sellers
 have paid all outstanding taxes due with respect to the Company from the most recent Fiscal Year ending December 31 and any later
 periods through the date of the Closing.

5.8. Upon
 Purchaser's receipt of notice from FINRA of the FINRA Approval, which such approval must be obtained within six (6) months
 of the Effective Date, then following delivery from Seller to Purchaser of all documents required <u>under this Agreement</u>, Purchaser
 shall pay the amounts due under <u>Section 2.2</u> above to Seller within three (3) business days of receipt of such notice. Upon
 Seller's receipt of the Purchase Price. Seller shall immediately transfer the Membership Interests to Purchaser. Neither the
 Company nor the Seller shall sell any new membership interests in the Company. In the event Purchaser does not receive FINRA Approval
 pursuant to this paragraph within six (6) months, then this Agreement shall be terminated and void. Notwithstanding the above provisions,
 if FINRA Approval is not received within six (6) months due solely to FINRA's delay in reviewing the CMA for Approval, the
 parties will agree to a reasonable extension of the Agreement not to exceed two months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Agreements by Purchaser**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. Purchaser
 agrees that it will complete all documents necessary to consummate this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. Notwithstanding
 anything to the contrary contained herein, Purchaser agrees to use commercially reasonable efforts to file the CMA by January 31,
 2023.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. Upon
 Purchaser's receipt of notice from FINRA of the FINRA Approval, then following delivery from Seller to Purchaser of the documents
 required by <u>under this Agreement</u>, Purchaser shall pay the amounts due under <u>Section 2.2</u> above to Seller within three
 (3) business days of receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Conditions Precedent**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Receipt
 of the FINRA Approval.

7.2. Receipt
 of all applicable state approvals in connection with a change in control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. Receipt
 of evidence from FINRA of completion of all exams pending relating to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4. Prior
 to the Closing, the Seller shall have paid in full all of the Company's outstanding taxes due from the most recent Fiscal Year
 ending December 31 and any interim periods to the date of the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5. Agreement
 between Purchaser and Seller of the amounts of the Cash Reserves and the Prepaid Expenses to be paid to Seller at the Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6. Sellers'
 representations and warranties shall be true and correct in all material respects except to the extent that any representation is
 qualified by materiality, in which case they shall be true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Bills and Legal Expenses**. Sellers shall be solely responsible for all liabilities, bills, accounts payable, and invoices due for items occurring prior to the Closing except for Transaction Expenses outlined herein. Further, Sellers shall be solely responsible for any costs, legal fees, regulatory actions, regulatory investigations, judgments, sanctions, fines, or awards stemming from any currently pending arbitration, regulatory actions, litigations, or any other actions giving rise to any of the above by Sellers that occurred prior to Closing. For the purposes of this paragraph, any threatened action, whether civil, regulatory, or criminal, and/or any future action related to conduct which occurred prior to the Closing, shall be considered pending if the alleged underlying conduct took place prior to the Closing. All information relating to this <u>Section 8</u> is included as <u>Item 9</u> of the Disclosure Schedule, a copy of which is attached hereto and incorporated herein by this reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Representations of Seller.**

In order to induce Purchaser to enter into this Agreement and to consummate the Transaction, the Seller(s) makes the representations and warranties set forth below to Purchaser which representations and warranties shall be true and correct as of the Effective Date and the Closing, except as otherwise noted herein or as set forth in the attached Disclosure Schedules. For purposes of this <u>Section 9</u>, "**Seller's Knowledge**," "**Knowledge of Seller**," and any similar phrases shall mean the actual or constructive knowledge of Seller or any principal of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. **Organization.** The Company is duly organized and validly existing under the Laws of the State of Georgia. The Company is duly qualified or licensed
 to do business in each jurisdiction where the character of the properties owned or operated by it or the nature of its business makes
 such qualification or licensing necessary. The Company is licensed as a broker-dealer in each state reflected on <u>Schedule 9.1</u> and has not received any communication from any state which if not resolved could result in a state (or states) imposing sanctions
 on the Company. The Company has all requisite right, power, and authority to (a) own and operate its properties, (b) conduct its
 business as presently conducted in accordance with local business practices and (c) engage in and consummate the Transaction. Neither
 the Company nor the Seller is in default under, or breach of, their respective organizational documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. **Authorization; Enforceability**. The Seller has all requisite right, power, and authority to execute and deliver this Agreement and to consummate
 the Transaction. The execution and delivery of this Agreement and the consummation the Seller of the Transaction have been duly authorized
 by all requisite corporate or other action. This Agreement has been duly executed and delivered by the Seller and constitutes the
 legal, valid, and binding obligation of such Party, enforceable in accordance with its terms. Seller has all rights, title, and interest
 in and to the Membership Interest, there are no other Membership Interests outstanding and no person or entity has any agreement
 to acquire a Membership Interest in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3. **Capitalization.** All of the Company's membership interests issued prior to the Closing have been and will be duly authorized and are and
 will be validly issued, fully paid and non-assessable. There is only one class of membership interests in the Company. Seller is
 the sole member and equity holder of the Company. There are no options, rights, warrants, convertible securities, or other similar
 instruments that would allow another person and/or entity to become a member of the Company. The Seller is the sole owner of the
 Company and the Membership Interests have not been pledged, hypothecated, or collateralized and are freely transferable and assignable
 pursuant to this Agreement. None of the Company's membership interests were or will be issued in violation of any law, preemptive
 right, right of first refusal or similar agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4. **Regulatory Compliance.** The Company is a broker-dealer duly registered, licensed, and in good standing pursuant to the Securities Exchange
 Act of 1934 with the SEC, FINRA, and all states and jurisdictions in which it conducts business. The Company has all permits, licenses
 and authorizations required by any governmental authority or agency to conduct its business and has paid all applicable fees and
 no fees or bills are accrued, due or owing. Seller represents that the Company has fully complied with the rules and regulations
 (of such regulatory bodies, and other industry, or governmental organizations) required by law for its business. To Sellers'
 Knowledge, the Company is not the subject of any regulatory inquiry, investigation, proceedings or customer complaint, arbitration,
 or litigation. To Sellers Knowledge the Company is in full compliance with all applicable Laws, rules and regulations including those
 of FINRA, the SEC, and the states in which the Company operates and is licensed; such rules include, but are not limited to, net
 capital requirements, margin requirements, reserve account and segregation requirements for customer assets, financial reporting
 requirements, recordkeeping requirements, independent audit requirements, and any other requirements imposed by Sections 15(c) and
 17(a) of the Securities Exchange Act of 1934 and the Rules thereunder. Furthermore, to Sellers Knowledge all reports and other forms
 required to be filed by the Company pursuant to such aforementioned rules were true and correct as of the dates reflected thereon.

9.5. **Organizational Documents and Corporate Records**. A true and complete copy of the Limited liability Agreement or Operating Agreement will also
 be delivered to Purchaser prior to the Closing. All matters requiring the authorization or approval of the member of the Company
 have been duly and validly authorized and approved by the Seller.

9.6. **Financial Statements.** Seller has delivered to Purchaser a true and complete copy of the audited financial statements of the Company as
 of December 31, 2021 and 2020 and the unaudited financial statements of the Company for the twelve months ended December 31, 2022
 (the "**Company's Financial Statements**") which are attached hereto as <u>Exhibit A</u>. The Company's
 Financial Statements (including, in each case, any notes and schedules thereto): (i) have been prepared in accordance with the books
 of accounts and records of the Company; (ii) complied as to form in all material respects with the published rules and regulations
 of the SEC with respect thereto as of their respective dates; (iii) were prepared in accordance with GAAP applied on a consistent
 basis throughout the periods involved (except as may be indicated in the notes thereto) except that unaudited financial statements
 may not contain all footnotes required by GAAP, (iv) fairly present in all material respects the consolidated financial position
 and the results of operations, and cash flows of the Company as of the respective dates of and for the periods referred to in such
 financial statements, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments,. If the Closing does
 not occur before delivery of the audited financial statements for the year ending December 31, 2022, one or more principals of Seller
 registered with FINRA shall execute any representation letters required by Seller's auditors and answer any questions posed
 by such auditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7. **Employment Matters.** There are no employment, consulting, severance or indemnification arrangements, arrangements which contain change of
 control provisions, agreements, or understandings between the Company and any officer, director, manager, consultant, or employee.
 Schedule 9.7 contains the names, job descriptions and annual salary rates and other compensation of all officers, directors, employees
 and consultants of the Company, and a list of all employee policies (written or otherwise), employee manuals or other written statements
 of rules or policies concerning employment or providing services, including working conditions, vacation and sick leave (or paid
 time off), a complete copy of each of which (or a description, if unwritten) has been delivered to the Purchaser. The Company has
 complied with all applicable employment Laws, including payroll and related obligations, benefits, and social security, and does
 not have any obligation in respect of any amount due to employees of the Company or governmental authorities, other than normal salary,
 other fringe benefits and contributions accrued but not payable on the Effective Date.

9.8. **Tax Matters.** All tax returns required to be filed on or before the Closing by or with respect to the Company have (or by the Closing
 will have) been duly filed. Such Tax returns are true, correct, and complete in all respects. The Company has paid all outstanding
 taxes due as of the Closing. The Company has no tax liabilities outstanding.

9.9. **Legal Proceedings.** Sellers are not a party to any pending or threatened legal proceeding.

9.10. **Guaranties**.
 The Company is not obligated directly, or as a guarantor, surety or otherwise with respect to any type of indebtedness.

9.11. **Absence of Undisclosed Liabilities.** The Company does not have any material liabilities outside the normal course or debt obligations
 of any kind, absolute, accrued, contingent or otherwise.

9.12. **Indebtedness.** The Company is not a party to or otherwise bound by any written or oral note, mortgage, indenture, leases or other contract or
 commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13. **Absence of Material Adverse Effects.** Since December 31, 2021, the Company has conducted its business only in the ordinary and usual course
 and in a manner consistent with past practices and, since such date there has been no Material Adverse Effect relating to the Company.
 For the purposes of this Agreement, the term "Material Adverse Effect" shall mean any event, occurrence, fact, condition
 or change that is materially adverse to (a) the business, results of operations, condition (financial or otherwise) prospects or
 assets of any Party, or (b) the ability of any Party to consummate the Transaction.

9.14. **No Conflicts or Consents**. The execution, delivery, and performance by Sellers of this Agreement, and the consummation of the Transaction,
 do not and will not: (a) violate or conflict with any provision of the organizational documents, operating agreement, or other governing
 documents of the Company; (b) violate or conflict with any provision of any statute, law, ordinance, regulation, rule, code, treaty,
 or other requirement of any Governmental Authority (collectively, "**Law**" or "**Laws**") or any order,
 writ, judgment, injunction, decree, determination, penalty, or award entered by or with any governmental authority ()"**Governmental Order**") applicable to Seller or the Company; (c) except as set forth in this Agreement, require the consent, notice, or
 filing with or other action by any person or require any permit, license, or Governmental Order; (d) violate or conflict with, result
 in the acceleration of, or create in any party the right to accelerate, terminate, or modify any contract, lease, deed, mortgage,
 license, including Company's FINRA registration, instrument, note, indenture, joint venture, or any other agreement, commitment,
 or legally binding arrangement, whether written or oral (collectively, "**Contracts** "), to which Seller or the Company
 is a party or by which Seller or the Company is bound or to which any of their respective properties and assets are subject; or (e)
 result in the creation or imposition of any encumbrance on any properties or assets of the Company.

9.15. **Contracts**.
 Seller has provided Purchaser with true and correct copies of all Contracts.

9.16. **Brokers**.
 There is no broker, finder, or investment banker entitled to any brokerage, finders, or other fee or commission in connection with
 the Transaction.

9.17. **2022 Audit**. The audited financial statements of the Company for the year ended December 31, 2022, required to be filed with the Securities
 and Exchange Commission and FINRA, shall have been filed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18. **Accuracy of Information Furnished**. To Seller's Knowledge, no representation or warranty by Sellers in this Agreement and no statement
 contained in the Disclosure Schedules to this Agreement or any certificate or other document furnished or to be furnished to Purchaser
 pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the
 statements contained therein, in light of the circumstances in which they are made, not misleading. Copies of all documents listed
 or described in the various exhibits attached hereto and provided by the Sellers are true, accurate and complete. "**Knowledge of Seller**" or "**Seller's Knowledge**" or any other similar knowledge qualification, means the actual
 or constructive knowledge of any director or officer of the Seller or the Company, after due inquiry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Representations of Purchaser.**

In order to induce Seller to enter into this Agreement and to consummate the Transaction, the Purchaser makes the representations and warranties set forth below to Seller which representations and warranties shall be true and correct as of the Effective Date and the Closing, except as otherwise noted herein or as set forth in the attached Disclosure Schedules. For purposes of this <u>Section 10</u>, "**Purchaser's Knowledge**," "**Knowledge of Purchaser**," and any similar phrases shall mean the actual or constructive knowledge of Purchaser or any principal of the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. **Authorization; Enforceability**. The Purchaser has all requisite rights, power, and authority to execute and deliver this Agreement and to consummate
 the Transaction. The execution and delivery of this Agreement and the consummation the Purchaser of the Transaction have been duly
 authorized by all requisite corporate or other action. This Agreement has been duly executed and delivered by the Purchaser and constitutes
 the legal, valid, and binding obligation of such Party, enforceable in accordance with its terms.

10.2. **No Conflicts or Consents**. The execution, delivery, and performance by Purchaser of this Agreement, and the consummation of the Transaction,
 do not and will not: (a) violate or conflict with any provision of the organizational documents, bylaws, or other governing documents
 of the Purchaser; (b) violate or conflict with any "**Law** or any order, writ, judgment, injunction, decree, determination,
 penalty, or award entered by or with any governmental authority ()"**Governmental Order**") applicable to Purchaser;
 or (c) except as set forth in this Agreement, require the consent, notice, or filing with or other action by any person or require
 any permit, license, or Governmental Order.

10.3. **Completion of Due Diligence**. Subject to the completion of all Conditions Precedent in Section 7 above, Purchaser has satisfactorily completed
 its Due Diligence review of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. **Indemnification by Seller.** Seller agrees to indemnify and hold harmless Purchaser from and against, and to reimburse Purchaser with respect to,
 any and all loss, damage, liability, cost and expense, including reasonable attorneys' fees incurred by Purchaser by reason
 of, or arising out of (i) breach by Seller of this Agreement, including any representation or warranty contained herein; (ii) the
 existence as of the date hereof and through and including the Closing of any undisclosed liability of the Company; (iii) any tax
 liability, including penalty or interest thereon, which shall exist or accrue thereafter from the Company with respect to any period
 ending prior to the Closing, including past and continuous business conducted by Seller and/or the Company prior to the Closing,
 and (iv) those matters set forth in <u>Section 9</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. **Indemnification by Purchaser**. Purchaser agrees to indemnify and hold harmless Sellers from and against, and to reimburse Sellers with respect
 to, any and all loss, damage, liability, cost, and expense, including reasonable attorneys' fees incurred by Sellers by reason
 of, or arising out of breach by Purchaser of this Agreement, including any representation or warranty contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Post-Closing Covenants.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1. Purchaser
 acknowledges and agrees that Seller shall be entitled to keep the Deposit if this Transaction is not completed within six (6) months
 of the Effective Date.

12.2. As
 soon as reasonably possible following the Closing, Purchaser shall file with the Georgia Secretary of State all documents necessary
 to change Seller's name to something that does not include "Commenda" in the name.

12.3. Seller
 agrees to execute any documents necessary to complete the name change as set forth in <u>Section 12.2</u> hereof or any other items
 contemplated by this Agreement.

12.4. The
 parties agree that if the Closing does not occur and this Agreement is terminated either due to a breach by Purchaser which has not
 been cured within 10 days after Seller gives Purchaser written notice or FINRA's failure to approve the change of control due
 to Purchaser or any of its affiliates, Seller shall be entitled to the Deposit and Seller's Transaction Expenses as outlined
 herein. If the Closing does not occur due to a breach by Seller which has not been cured within 10 days after Purchaser gives Seller
 written notice or FINRA's failure to approve the change of control due to reasons other than Purchase or any of its affiliates,
 Seller shall be entitled to the Deposit but not Seller's Transaction Expenses as outlined herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **General Provisions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. **Merger**.
 This Agreement (including any schedules and annexes attached hereto) and the documents delivered pursuant hereto constitute the entire
 agreement and understanding between the Seller and Purchaser and supersede any prior agreement and understanding relating to the
 subject matter of this Agreement. This Agreement, upon execution, constitutes a valid and binding agreement on the parties thereto
 enforceable in accordance with its terms and may be modified or amended only by a written instrument executed by each of the Seller
 and Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. **Headings**.
 All headings utilized in this Agreement are done so only for convenience and shall have meaning or effect on the language contained
 herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. **Mediation**.
 If a dispute arises out of or relates to this contract, or the alleged breach thereof, and if the dispute is not settled through
 negotiation, the Parties agree first to try in good faith to settle the dispute by mediation within 30 days administered via private
 efforts or under the FINRA Code of Mediation Procedure before resorting to arbitration, litigation, or some other dispute resolution
 procedure. If the parties are unable to agree on a mediator, a mediator shall be appointed by the named administrator. The process
 shall be confidential based on terms acceptable to the mediator and/or mediation service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4. **Dispute Resolution**. Any proceeding arising out of or relating to this Agreement which cannot be resolved by negotiation or mediation,
 as described above, shall be brought solely in arbitration in Atlanta, Georgia before and subject to the rules for industry disputes
 of FINRA, and each Party waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims
 in respect of the proceeding shall be heard and determined only in such venue, and agrees not to bring any proceeding arising out
 of or relating to this Agreement in any other venue. The Parties agree that any of them may file a copy of this paragraph with any
 court or arbitrator as written evidence of the knowing, voluntary, and bargained agreement between the Parties irrevocably to waive
 any objections to venue or to convenience of forum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5. **Amendments**.
 Any amendment to this Agreement must be made in writing executed by all the Parties or it will have no binding effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6. **Severability**.
 In case any provision of this Agreement shall be invalid, illegal or unenforceable, it shall, to the extent possible, be modified
 in such manner as to be valid, legal and enforceable but so as to most nearly retain the intent of the parties, and if such modification
 is not possible, such provision shall be severed from this Agreement, and in either case the validity, legality and enforceability
 of the remaining provisions of this Agreement shall not in any way be affected or impaired thereby. Furthermore, the remaining terms
 shall survive any declaration of a single term being found to be invalid, unenforceable, or illegal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7. **Confidentiality**.
 The Parties agree that this Agreement and the terms hereof (the "**Terms**") shall remain confidential. However, the
 Parties may share these terms with FINRA, and their respective attorneys, accountants, tax advisors or those others for which it
 is reasonable to conclude their knowledge of the Terms is necessary to carry out any obligation of the Parties, including but not
 limited to responding to any regulatory or governmental inquiry.

13.8. **Termination**.
 This Agreement shall terminate six (6) months from the Effective Date (the "**Termination Date** ").

13.9. **Choice of Law.** This Agreement shall be governed by the internal substantive Laws, but not the choice of law rules, of the State of Delaware.

13.10. **Integration.** This Agreement, including all exhibits hereto, represents the entire agreement between the parties with respect to the purchase
 of the Membership Interests by the Purchaser and supersedes and replaces all prior written or oral agreements regarding the subject
 matter of this Agreement including, but not limited to, any representations made during any discussions or negotiations whether written
 or oral.

13.11. **Successors.** Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise)
 to all or substantially all of the Company's business and/or assets shall assume the obligations under this Agreement and agrees
 expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required
 to perform such obligations in the absence of a succession. For all purposes under this Agreement, the term "**Company** "
 shall include any successor to the Company's business and/or assets which executes and delivers the assumption agreement described
 in this section or which it becomes bound by the terms of this Agreement by operation of law. Subject to the restrictions on transfer
 set forth in this Agreement, this Agreement shall be binding upon Purchaser and its successors and assigns.

13.12. **Waiver.** Either party's failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any
 such provision, nor prevent that party from thereafter enforcing any other provision of this Agreement. The rights granted the Parties
 are cumulative and shall not constitute a waiver of either party's right to assert any other legal remedy available to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.13.  ***Further Documents*.** Purchaser agrees upon request to execute any further documents or instruments necessary or reasonably desirable
 in the view of the Seller to carry out the purposes or intent of this Agreement, including (but not limited to) the applicable exhibits
 and attachments to this Agreement.

13.14. **Rights as a Member.** Subject to the terms and conditions of this Agreement, the Purchaser shall have all the rights of a member of the
 Company with respect to the Membership Interests from and after the date of the Closing.

13.15. **Reliance on Counsel and Advisors.** The Purchaser and the Sellers acknowledge that they each have had the opportunity to review this Agreement,
 including all attachments hereto, and the Transaction with their own legal counsel, tax advisors and other advisors. They are relying
 solely on their own counsel and advisors and not on any statements or representations of any other party hereto or their agents for
 legal or other advice with respect to the Transaction.

13.16. **Legal Fees and Expenses.** The Parties shall bear their own legal fees and expenses associated this Agreement except for Transaction
 Expenses outlined herein and with any resultant disputes arising from or related hereto.

13.17. **Notices**.
 Notices pursuant to this Agreement shall be deemed given on the day posted or sent as the case may be and shall be given personally
 or any recognized overnight mail carrier (i.e., Federal Express, UPS), prepaid by the sender, or email, to the parties, and their
 attorneys, at the following addresses:

**Notices to Seller shall be sent to**:

Commenda, Inc.

_______________

_______________

_______________

Email: _________________

**Notices to Purchaser shall be sent to:**

White River Holdings Corp

609 W. Dickson St

Suite 102 G

Fayetteville, AK 72701

Attn: Jason Puchir

Email: jpuchir@white-river.com

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.18. **Survival**. <u>Sections 8</u>, <u>8</u>, <u>10</u>, <u>11</u>, <u>12</u>, **and** <u>13</u> hereof will survive any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.19. **Counterparts.** This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together
 will constitute one and the same agreement. Facsimile copies of signed signature pages shall be binding originals.

[signature pageS follow]

The parties represent that they have read this Agreement in its entirety, have had an opportunity to obtain the advice of counsel prior to executing this Agreement and fully understand this Agreement.

---

| |
|:---|
| **"PURCHASER"** |
| **WHITE RIVER HOLDINGS CORP.** |
| */s/ Jay Puchir* |
| Signature |
| Jay Puchir |
| Print Name |
| CEO |
| Print Title |
| "**SELLER**" |
| **COMMENDA, INC.** |
| */s/ Timothy J. Sheehan* |
| Signature |
| Timothy J. Sheehan |
| Print Name |
| President |
| Print Title |

---

Membership Interest Purchase Agreement Signature Page

**EXHIBIT A**

FINANCIAL STATEMENTS

Exhibit A

**DISCLOSURE SCHEDULES**

## Exhibit 23.1

**EXHIBIT 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Shareholders of

White River Energy Corp.

We hereby consent to the reference to our firm under the caption "Experts" and the use of our report dated October 28, 2022 except for Note 1, as to which the date is March 8, 2023 on the consolidated financial statements of White River Holdings Corp as of March 31, 2022 and March 31, 2021, which appears in this Registration Statement on Amendment No. 4 to Form S-1.

/s/ RBSM LLP

New York, New York

March 29, 2023

## Exhibit 23.3

**EXHIBIT 23.3**

TBPELS REGISTERED ENGINEERING FIRM F-1580 FAX (713) 651-0849 <br> 1100 LOUISIANA SUITE 4600 HOUSTON, TEXAS 77002-5294 TELEPHONE (713) 651-9191

**Consent of Independent Petroleum Engineers**

White River Energy Corp.:

We have issued our report dated February 13, 2023 on estimates of proved reserves, future production and income attributable to certain leasehold interests of White River Holdings Corp as of March 31, 2022. As independent oil and gas consultants, we hereby consent to the inclusion of our report and the information contained therein referenced in this Registration Statement on Form S-1A (the "Registration Statement) of White River Energy Corp and to all references to our firm in this Registration Statement.

---

| |
|:---|
| /s/ RYDER SCOTT COMPANY, L.P. |
| **RYDER SCOTT COMPANY, L.P.** |
| TBPELS Firm Registration No. F-1580 |

---

Houston, Texas

March 29, 2023

SUITE 2800, 350 7TH AVENUE, S.W. CALGARY, ALBERTA T2P 3N9 TEL (403) 262-2799 <br> 633 17TH STREET, SUITE 1700 DENVER, COLORADO 80202 TEL (303) 339-8110

## Exhibit 99.1

**Exhibit 99.1**

**White River Holdings Corp**

**Estimated**

**Future Reserves and Income**

**Attributable to Certain**

**Leasehold Interests**

**SEC Parameters**

**As of**

**March 31, 2022**

---

| | |
|:---|:---|
| /s/ Daniel R. Olds | /s/ Beau Utley |
| Daniel R. Olds, P.E. | Beau Utley |
| TBPELS License No. 60996 | Senior Petroleum Engineer |
| Managing Senior Vice President |  |

---

**[SEAL]**

**RYDER SCOTT COMPANY, L.P.**

TBPELS Firm Registration No. F-1580

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

---

| | | |
|:---|:---|:---|
| ![](ex99-1_001.jpg) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TBPELS REGISTERED ENGINEERING FIRM F-1580 |  | FAX (713) 651-0849 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1100 LOUISIANA SUITE 4600 | HOUSTON, TEXAS 77002-5294 | TELEPHONE (713) 651-9191 |

---

February 13, 2023

Mr. Jay Puchir

White River Holdings Corp

5899 Preston Rd., #505

Frisco, TX 75034

Dear Mr. Puchir:

At your request, Ryder Scott Company, L.P. (Ryder Scott) has prepared an estimate of the proved reserves, future production, and income attributable to certain leasehold interests of White River Holdings Corp (White River) as of March 31, 2022. This report supersedes the previous report issued to Ecoark Holdings, Inc., dated May 12, 2022 and incorporates only the removal of certain properties sold prior to March 31, 2022. All other assumptions from this earlier report are included in this revised report. This revised report does not incorporate any updated performance changes that may have occurred since the first report was issued. The subject properties are operated by White River Operating, a wholly owned entity of White River and Rabb Contracting Company, LLC., and are located in the states of Louisiana and Mississippi. The reserves and income data were estimated based on the definitions and disclosure guidelines of the United States Securities and Exchange Commission (SEC) contained in Title 17, Code of Federal Regulations, Modernization of Oil and Gas Reporting, Final Rule released January 14, 2009 in the Federal Register (SEC regulations). Our third party study, originally completed on May 12, 2022, revised on February 13, 2023 and presented herein, was prepared for public disclosure by White River in filings made with the SEC in accordance with the disclosure requirements set forth in the SEC regulations.

The properties evaluated by Ryder Scott represent 100 percent of the total net proved liquid hydrocarbon reserves of White River as of March 31, 2022.

The estimated reserves and future net income amounts presented in this report, as of March 31, 2022 are related to hydrocarbon prices. The hydrocarbon prices used in the preparation of this report are based on the average prices during the 12-month period prior to the "as of date" of this report, determined as the unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period, unless prices were defined by contractual arrangements, as required by the SEC regulations. Actual future prices may vary considerably from the prices required by the SEC regulations. The recoverable reserves volumes and the income attributable thereto have a direct relationship to the hydrocarbon prices actually received; therefore, volumes of reserves actually recovered and the amounts of income actually received may differ significantly from the estimated quantities presented in this report. The results of this study are summarized as follows.

SUITE 2800, 350 7TH AVENUE, S.W. CALGARY, ALBERTA T2P 3N9 TEL (403) 262-2799 <br> 633 17TH STREET, SUITE 1700 DENVER, COLORADO 80202 TEL (303) 339-8110

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

**SEC PARAMETERS**

Estimated Net Reserves and Income Data

Certain Leasehold Interests of

**White River Holdings Corp**

As of March 31, 2022

---

| | |
|:---|:---|
|  | Total Proved<br>Developed<br>Producing |
| ***<u>Net Reserves</u>*** |  |
| &nbsp;&nbsp;&nbsp;Oil/Condensate – Barrels | 169688 |
| ***<u>Income Data ($)</u>*** |  |
| &nbsp;&nbsp;&nbsp;Future Gross Revenue | $12198608 |
| &nbsp;&nbsp;&nbsp;Deductions | 4889154 |
| &nbsp;&nbsp;&nbsp;Future Net Income (FNI) | $7309454 |
| &nbsp;&nbsp;&nbsp;Discounted FNI @ 10% | $4849223 |

---

Liquid hydrocarbons are expressed in standard 42 U.S. gallon barrels. The revenues, deductions, and income data are expressed as U.S. dollars ($).

The estimates of the reserves, future production, and income attributable to properties in this report were prepared using the economic software package PHDWin Petroleum Economic Evaluation Software, a copyrighted program of TRC Consultants L.C. Ryder Scott has found this program to be generally acceptable, but notes that certain summaries and calculations may vary due to rounding and may not exactly match the sum of the properties being summarized. Furthermore, one-line economic summaries may vary slightly from the more detailed cash flow projections of the same properties, also due to rounding. The rounding differences are not material.

The future gross revenue is after the deduction of production taxes. The deductions incorporate the normal direct costs of operating the wells, water trucking and hauling costs, ad valorem taxes, and certain abandonment costs net of salvage. The "Other" deductions shown in the cash flow projections include variable operating costs on a dollar per barrel basis. The future net income is before the deduction of state and federal income taxes and general administrative overhead, and has not been adjusted for outstanding loans that may exist nor does it include any adjustment for cash on hand or undistributed income.

Liquid hydrocarbon reserves account for 100 percent of total future gross revenue from proved reserves.

The discounted future net income shown above was calculated using a discount rate of 10 percent per annum compounded annually. At White River's request, future net income was discounted at four other discount rates which were also compounded annually. These results are shown in summary form as follows.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

---

| | |
|:---|:---|
|  | Discounted Future Net Income ($)<br>As of March 31,<br> 2022 |
| Discount Rate | Total |
| Percent | Proved |
| 2 | $6633506 |
| 5 | $5820914 |
| 8 | $5191994 |
| 9 | $5014004 |

---

The results shown above are presented for your information and should not be construed as our estimate of fair market value.

***Reserves Included in This Report***

The proved reserves included herein conform to the definition as set forth in the Securities and Exchange Commission's Regulations Part 210.4-10(a). An abridged version of the SEC reserves definitions from 210.4-10(a) entitled "PETROLEUM RESERVES DEFINITIONS" is included as an attachment to this report.

The various reserves status categories are defined in the attachment entitled "PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES" in this report. All of the reserves included herein consist of the proved developed producing category.

No attempt was made to quantify or otherwise account for any accumulated gas production imbalances that may exist. The proved gas volumes presented herein do not include volumes of gas consumed in operations as reserves.

Reserves are "estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations." All reserves estimates involve an assessment of the uncertainty relating the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities determined as of the date the estimate is made. The uncertainty depends chiefly on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal classifications, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-categorized as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. At White River's request, this report addresses only the proved reserves attributable to the properties evaluated herein.

Proved oil and gas reserves are "those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward." The proved reserves included herein were estimated using deterministic methods. The SEC has defined reasonable certainty for proved reserves, when based on deterministic methods, as a "high degree of confidence that the quantities will be recovered."

Proved reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change. For proved reserves, the SEC states that "as changes due to increased availability of geoscience (geological, geophysical, and geochemical), engineering, and economic data are made to the estimated ultimate recovery (EUR) with time, reasonably certain EUR is much more likely to increase or remain constant than to decrease." Moreover, estimates of proved reserves may be revised as a result of future operations, effects of regulation by governmental agencies or geopolitical or economic risks. Therefore, the proved reserves included in this report are estimates only and should not be construed as being exact quantities, and if recovered, the revenues therefrom, and the actual costs related thereto, could be more or less than the estimated amounts.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

White River's operations may be subject to various levels of governmental controls and regulations. These controls and regulations may include, but may not be limited to, matters relating to land tenure and leasing, the legal rights to produce hydrocarbons drilling and production practices, environmental protection, marketing and pricing policies, royalties, various taxes and levies including income tax, and are subject to change from time to time. Such changes in governmental regulations and policies may cause volumes of proved reserves actually recovered and amounts of proved income actually received to differ significantly from the estimated quantities.

The estimates of proved reserves presented herein were based upon a detailed study of the properties in which White River owns an interest; however, we have not made any field examination of the properties. No consideration was given in this report to potential environmental liabilities that may exist nor were any costs included for potential liabilities to restore and clean up damages, if any, caused by past operating practices.

 ****

***Estimates of Reserves***

The estimation of reserves involves two distinct determinations. The first determination results in the estimation of the quantities of recoverable oil and gas and the second determination results in the estimation of the uncertainty associated with those estimated quantities in accordance with the definitions set forth by the Securities and Exchange Commission's Regulations Part 210.4-10(a). The process of estimating the quantities of recoverable oil and gas reserves relies on the use of certain generally accepted analytical procedures. These analytical procedures fall into three broad categories or methods: (1) performance-based methods, (2) volumetric-based methods and (3) analogy. These methods may be used individually or in combination by the reserves evaluator in the process of estimating the quantities of reserves. Reserves evaluators must select the method or combination of methods which in their professional judgment is most appropriate given the nature and amount of reliable geoscience and engineering data available at the time of the estimate, the established or anticipated performance characteristics of the reservoir being evaluated, and the stage of development or producing maturity of the property.

In many cases, the analysis of the available geoscience and engineering data and the subsequent interpretation of this data may indicate a range of possible outcomes in an estimate, irrespective of the method selected by the evaluator. When a range in the quantity of reserves is identified, the evaluator must determine the uncertainty associated with the incremental quantities of the reserves. If the reserves quantities are estimated using the deterministic incremental approach, the uncertainty for each discrete incremental quantity of the reserves is addressed by the reserves category assigned by the evaluator. Therefore, it is the categorization of reserves quantities as proved, probable and/or possible that addresses the inherent uncertainty in the estimated quantities reported. For proved reserves, uncertainty is defined by the SEC as reasonable certainty wherein the "quantities actually recovered are much more likely to be achieved than not." The SEC states that "probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered." The SEC states that "possible reserves are those additional reserves that are less certain to be recovered than probable reserves and the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves." All quantities of reserves within the same reserves category must meet the SEC definitions as noted above.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

Estimates of reserves quantities and their associated reserves categories may be revised in the future as additional geoscience or engineering data become available. Furthermore, estimates of reserves quantities and their associated reserves categories may also be revised due to other factors such as changes in economic conditions, results of future operations, effects of regulation by governmental agencies or geopolitical or economic risks as previously noted herein.

The proved reserves for the properties included herein were estimated by performance methods. These performance methods include decline curve analysis which utilized extrapolations of historical production and pressure data available through February 2022 in those cases where such data were considered to be definitive. The data utilized in this analysis were furnished to Ryder Scott by White River or obtained from public data sources and were considered sufficient for the purpose thereof.

To estimate economically recoverable proved oil and gas reserves and related future net cash flows, we consider many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on current costs and SEC pricing requirements, and forecasts of future production rates. Under the SEC regulations 210.4-10(a)(22)(v) and (26), proved reserves must be anticipated to be economically producible from a given date forward based on existing economic conditions including the prices and costs at which economic producibility from a reservoir is to be determined. While it may reasonably be anticipated that the future prices received for the sale of production and the operating costs and other costs relating to such production may increase or decrease from those under existing economic conditions, such changes were, in accordance with rules adopted by the SEC, omitted from consideration in making this evaluation.

White River has informed us that they have furnished us all of the material accounts, records, geological and engineering data, and reports and other data required for this investigation. In preparing our forecast of future proved production and income, we have relied upon data furnished by White River with respect to property interests owned, production and well tests from examined wells, normal direct costs of operating the wells or leases, ad valorem and production taxes, and adjustments or differentials to product prices. Ryder Scott reviewed such factual data for its reasonableness; however, we have not conducted an independent verification of the data furnished by White River. We consider the factual data used in this report appropriate and sufficient for the purpose of preparing the estimates of reserves and future net revenues herein.

In summary, we consider the assumptions, data, methods and analytical procedures used in this report appropriate for the purpose hereof, and we have used all such methods and procedures that we consider necessary and appropriate to prepare the estimates of reserves herein. The proved reserves included herein were determined in conformance with the United States Securities and Exchange Commission (SEC) Modernization of Oil and Gas Reporting; Final Rule, including all references to Regulation S-X and Regulation S-K, referred to herein collectively as the "SEC Regulations." In our opinion, the proved reserves presented in this report comply with the definitions, guidelines and disclosure requirements as required by the SEC regulations.

***Future Production Rates***

For wells currently on production, our forecasts of future production rates are based on historical performance data.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

The future production rates from wells currently on production may be more or less than estimated because of changes including, but not limited to, reservoir performance, operating conditions related to surface facilities, compression and artificial lift, pipeline capacity and/or operating conditions, producing market demand and/or allowables or other constraints set by regulatory bodies.

***Hydrocarbon Prices***

The hydrocarbon prices used herein are based on SEC price parameters using the average prices during the 12-month period prior to the "as of date" of this report, determined as the unweighted arithmetic averages of the prices in effect on the first-day-of-the-month for each month within such period, unless prices were defined by contractual arrangements. For hydrocarbon products sold under contract, the contract prices, including fixed and determinable escalations, exclusive of inflation adjustments, were used until expiration of the contract. Upon contract expiration, the prices were adjusted to the 12-month unweighted arithmetic average as previously described.

Ryder Scott utilized published benchmark prices to estimate the SEC hydrocarbon prices in effect on March 31, 2022. These initial SEC hydrocarbon prices were determined using the 12-month average first-day-of-the-month benchmark prices appropriate to the geographic area where the hydrocarbons are sold. These benchmark prices are prior to the adjustments for differentials as described herein. The table below summarizes the "benchmark prices" and "price reference" used for the geographic area included in the report. In certain geographic areas, the price reference and benchmark prices may be defined by contractual arrangements.

The product prices which were actually used to determine the future gross revenue for each property reflect adjustments to the benchmark prices for gravity, quality, local conditions, and/or distance from market, referred to herein as "differentials." The differentials used in the preparation of this report were calculated by us using data furnished to by White River. We have not conducted an independent verification of the data provided by White River to determine these differentials.

In addition, the table below summarizes the net volume weighted benchmark prices adjusted for differentials and referred to herein as the "average realized prices." The average realized prices shown in the table below were determined from the total future gross revenue before production taxes and the total net reserves for the geographic area and presented in accordance with SEC disclosure requirements for the geographic area included in the report.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Geographic Area | Product | Price<br> Reference | Average<br> Benchmark<br> Price | Average Realized<br> Price |
| North America |  |  |  |  |
| United States | Oil/Condensate | WTI Cushing | $75.24/bbl | $75.44/bbl |

---

The effects of derivative instruments designated as price hedges of oil quantities are not reflected in our individual property evaluations.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

 ****

 ****

White River Holdings Corp

February 13, 2023

 ****

***Costs***

The fixed and variable operating costs for the leases and wells in this report were furnished by White River and are based on the operating expense reports of White River and include only those costs directly applicable to the leases or wells. The "Other" deductions shown in the cash flow projections include variable operating costs on a dollar per barrel basis. The operating costs include a portion of general and administrative costs allocated directly to the leases and wells. The operating costs furnished by White River were reviewed by us for their reasonableness using information furnished by White River for this purpose. No deduction was made for loan repayments, interest expenses, or exploration and development prepayments that were not charged directly to the leases or wells.

The estimated net cost of abandonment after salvage was included for properties where abandonment costs net of salvage were material, and is shown in the cash flows as Development Costs. The estimates of the net abandonment costs were estimated by Ryder Scott and considered reasonable based on publicly available abandonment cost data where the properties are located. Ryder Scott has not performed a detailed field examination of White River's assets; however, we consider these estimates sufficient for the purpose of estimating abandonment costs for White River's properties in this report. White River confirmed that these costs estimated by Ryder Scott are reasonable for purposes of this report. At White River's request, the abandonment cost after salvage is estimated to occur approximately five years after the wells reach their economic producing limit.

Current costs used by White River were held constant throughout the life of the properties.

 ****

***Standards of Independence and Professional Qualification***

Ryder Scott is an independent petroleum engineering consulting firm that has been providing petroleum consulting services throughout the world since 1937. Ryder Scott is employee-owned and maintains offices in Houston, Texas; Denver, Colorado; and Calgary, Alberta, Canada. We have approximately eighty engineers and geoscientists on our permanent staff. By virtue of the size of our firm and the large number of clients for which we provide services, no single client or job represents a material portion of our annual revenue. We do not serve as officers or directors of any privately-owned or publicly-traded oil and gas company and are separate and independent from the operating and investment decision-making process of our clients. This allows us to bring the highest level of independence and objectivity to each engagement for our services.

Ryder Scott actively participates in industry-related professional societies and organizes an annual public forum focused on the subject of reserves evaluations and SEC regulations. Many of our staff have authored or co-authored technical papers on the subject of reserves related topics. We encourage our staff to maintain and enhance their professional skills by actively participating in ongoing continuing education.

Prior to becoming an officer of the Company, Ryder Scott requires that staff engineers and geoscientists have received professional accreditation in the form of a registered or certified professional engineer's license or a registered or certified professional geoscientist's license, or the equivalent thereof, from an appropriate governmental authority or a recognized self-regulating professional organization. Regulating agencies require that, in order to maintain active status, a certain amount of continuing education hours be completed annually, including an hour of ethics training. Ryder Scott fully supports this technical and ethics training with our internal requirement mentioned above.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

White River Holdings Corp

February 13, 2023

We are independent petroleum engineers with respect to White River. Neither we nor any of our employees have any financial interest in the subject properties and neither the employment to do this work nor the compensation is contingent on our estimates of reserves for the properties which were reviewed.

The results of this study, presented herein, are based on technical analysis conducted by teams of geoscientists and engineers from Ryder Scott. The professional qualifications of the undersigned, the technical person primarily responsible for overseeing, reviewing and approving the evaluation of the reserves information discussed in this report, are included as an attachment to this letter.

***Terms of Usage***

The results of our third party study, presented in report form herein, were prepared in accordance with the disclosure requirements set forth in the SEC regulations and intended for public disclosure as an exhibit in filings made with the SEC by White River.

For filings made with the SEC under the 1933 Securities Act, we have provided our written consent for the references to our name, as well as to the references to our third party report, in the registration statement on Form S-1 by White River. Our consent for such use is included as a separate exhibit to the filings made with the SEC by White River.

We have provided White River with a digital version of the original signed copy of this report letter. In the event there are any differences between the digital version included in filings made by White River and the original signed report letter, the original signed report letter shall control and supersede the digital version.

The data and work papers used in the preparation of this report are available for examination by authorized parties in our offices. Please contact us if we can be of further service.

---

| |
|:---|
| Very truly yours, |
| **RYDER SCOTT COMPANY, L.P.** |
| TBPELS Firm Registration No. F-1580 |
| /s/ Daniel R. Olds |
| Daniel R. Olds, P.E. |
| TBPELS License No. 60996 |
| Managing Senior Vice President |
| /s/ Beau Utley |
| Beau Utley |
| Senior Petroleum Engineer |

---

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

**Professional Qualifications of Primary Technical Person**

The conclusions presented in this report are the result of technical analysis conducted by teams of geoscientists and engineers from Ryder Scott Company, L.P. Daniel R. Olds was the primary technical person responsible for overseeing the estimate of the reserves, future production, and income prepared by Ryder Scott presented herein.

Mr. Olds, an employee of Ryder Scott Company, L.P. (Ryder Scott) since 2001, is a Managing Senior Vice President and also serves as an Engineering Group Coordinator responsible for coordinating and supervising staff and consulting engineers of the company in ongoing reservoir evaluation studies worldwide. He is a member of Ryder Scott's Board of Directors. Before joining Ryder Scott, Mr. Olds served in a number of engineering and evaluation positions with PricewaterhouseCoopers, Wintershall Oil and Gas Company and Cities Service Oil Company. For more information regarding Mr. Olds' geographic and job specific experience, please refer to the Ryder Scott Company website at <u>www.ryderscott.com/Employees</u>.

Mr. Olds earned a Bachelor of Science degree in Petroleum Engineering from West Virginia University in 1981, an MBA from the University of Houston in 1991 and is a licensed Professional Engineer in the State of Texas. He is also a member of the Society of Petroleum Evaluation Engineers (past president) and the Society of Petroleum Engineers. He currently serves on the SPE Oil and Gas Reserves Committee.

In addition to gaining experience and competency through prior work experience, the Texas Board of Professional Engineers requires a minimum of fifteen hours of continuing education annually, including at least one hour in the area of professional ethics, which Mr. Olds fulfills. For 2021, Mr. Olds has over 28 hours of continuing education hours related to reserves, reserve evaluation, and ethics.

Based on his educational background, professional training and almost 40 years of practical experience in the estimation and evaluation of petroleum reserves, Mr. Olds has attained the professional qualifications as a Reserves Estimator and Reserves Auditor set forth in Article III of the "Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information" promulgated by the Society of Petroleum Engineers as of June 2019.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

**PETROLEUM RESERVES DEFINITIONS**

**As Adapted From:**

**RULE 4-10(a) of REGULATION S-X PART 210**

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)**

***PREAMBLE***

On January 14, 2009, the United States Securities and Exchange Commission (SEC) published the "Modernization of Oil and Gas Reporting; Final Rule" in the Federal Register of National Archives and Records Administration (NARA). The "Modernization of Oil and Gas Reporting; Final Rule" includes revisions and additions to the definition section in Rule 4-10 of Regulation S-X, revisions and additions to the oil and gas reporting requirements in Regulation S-K, and amends and codifies Industry Guide 2 in Regulation S-K. The "Modernization of Oil and Gas Reporting; Final Rule", including all references to Regulation S-X and Regulation S-K, shall be referred to herein collectively as the "SEC regulations". The SEC regulations take effect for all filings made with the United States Securities and Exchange Commission as of December 31, 2009, or after January 1, 2010. Reference should be made to the full text under Title 17, Code of Federal Regulations, Regulation S-X Part 210, Rule 4-10(a) for the complete definitions (direct passages excerpted in part or wholly from the aforementioned SEC document are denoted in italics herein).

*Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations.* All reserve estimates involve an assessment of the uncertainty relating the likelihood that the actual remaining quantities recovered will be greater or less than the estimated quantities determined as of the date the estimate is made. The uncertainty depends chiefly on the amount of reliable geologic and engineering data available at the time of the estimate and the interpretation of these data. The relative degree of uncertainty may be conveyed by placing reserves into one of two principal classifications, either proved or unproved. Unproved reserves are less certain to be recovered than proved reserves and may be further sub-classified as probable and possible reserves to denote progressively increasing uncertainty in their recoverability. Under the SEC regulations as of December 31, 2009, or after January 1, 2010, a company may optionally disclose estimated quantities of probable or possible oil and gas reserves in documents publicly filed with the SEC. The SEC regulations continue to prohibit disclosure of estimates of oil and gas resources other than reserves and any estimated values of such resources in any document publicly filed with the SEC unless such information is required to be disclosed in the document by foreign or state law as noted in §229.1202 Instruction to Item 1202.

Reserves estimates will generally be revised only as additional geologic or engineering data become available or as economic conditions change.

Reserves may be attributed to either natural energy or improved recovery methods. Improved recovery methods include all methods for supplementing natural energy or altering natural forces in the reservoir to increase ultimate recovery. Examples of such methods are pressure maintenance, natural gas cycling, waterflooding, thermal methods, chemical flooding, and the use of miscible and immiscible displacement fluids. Other improved recovery methods may be developed in the future as petroleum technology continues to evolve.

Reserves may be attributed to either conventional or unconventional petroleum accumulations. Petroleum accumulations are considered as either conventional or unconventional based on the nature of their in-place characteristics, extraction method applied, or degree of processing prior to sale. Examples of unconventional petroleum accumulations include coalbed or coalseam methane (CBM/CSM), basin-centered gas, shale gas, gas hydrates, natural bitumen and oil shale deposits. These unconventional accumulations may require specialized extraction technology and/or significant processing prior to sale.

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

PETROLEUM RESERVES DEFINITIONS

Reserves do not include quantities of petroleum being held in inventory.

Because of the differences in uncertainty, caution should be exercised when aggregating quantities of petroleum from different reserves categories.

**<u>RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(26) defines reserves as follows:

***Reserves.*** *Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market, and all permits and financing required to implement the project.* 

 

*<u>Note to paragraph (a)(26):</u> Reserves should not be assigned to adjacent reservoirs isolated by major, potentially sealing, faults until those reservoirs are penetrated and evaluated as economically producible. Reserves should not be assigned to areas that are clearly separated from a known accumulation by a non-productive reservoir (<u>i.e.</u>, absence of reservoir, structurally low reservoir, or negative test results). Such areas may contain prospective resources (<u>i.e.</u>, potentially recoverable resources from undiscovered accumulations).* 

**<u>PROVED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(22) defines proved oil and gas reserves as follows:

 

***Proved oil and gas reserves.*** *Proved oil and gas reserves are those quantities of oil and gas, which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible—from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations—prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. The project to extract the hydrocarbons must have commenced or the operator must be reasonably certain that it will commence the project within a reasonable time.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) The area of the reservoir considered as proved includes:* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(A) The area identified by drilling and limited by fluid contacts, if any, and* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(B) Adjacent undrilled portions of the reservoir that can, with reasonable certainty, be judged to be continuous with it and to contain economically producible oil or gas on the basis of available geoscience and engineering data.* 

 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

 

 

PETROLEUM RESERVES DEFINITIONS

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and reliable technology establishes a lower contact with reasonable certainty.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii) Where direct observation from well penetrations has defined a highest known oil (HKO) elevation and the potential exists for an associated gas cap, proved oil reserves may be assigned in the structurally higher portions of the reservoir only if geoscience, engineering, or performance data and reliable technology establish the higher contact with reasonable certainty.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iv) Reserves which can be produced economically through application of improved recovery techniques (including, but not limited to, fluid injection) are included in the proved classification when:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(A) Successful testing by a pilot project in an area of the reservoir with properties no more favorable than in the reservoir as a whole, the operation of an installed program in the reservoir or an analogous reservoir, or other evidence using reliable technology establishes the reasonable certainty of the engineering analysis on which the project or program was based; and* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(B) The project has been approved for development by all necessary parties and entities, including governmental entities.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(v) Existing economic conditions include prices and costs at which economic producibility from a reservoir is to be determined. The price shall be the average price during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period, unless prices are defined by contractual arrangements, excluding escalations based upon future conditions.* 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

**PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES**

**As Adapted From:**

**RULE 4-10(a) of REGULATION S-X PART 210**

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION (SEC)**

**and**

**2018 PETROLEUM RESOURCES MANAGEMENT SYSTEM (SPE-PRMS)**

**Sponsored and Approved by:**

**SOCIETY OF PETROLEUM ENGINEERS (SPE)**

**WORLD PETROLEUM COUNCIL (WPC)**

**AMERICAN ASSOCIATION OF PETROLEUM GEOLOGISTS (AAPG)**

**SOCIETY OF PETROLEUM EVALUATION ENGINEERS (SPEE)**

**SOCIETY OF EXPLORATION GEOPHYSICISTS (SEG)**

**SOCIETY OF PETROPHYSICISTS AND WELL LOG ANALYSTS (SPWLA)**

**EUROPEAN ASSOCIATION OF GEOSCIENTISTS & ENGINEERS (EAGE)**

Reserves status categories define the development and producing status of wells and reservoirs. Reference should be made to Title 17, Code of Federal Regulations, Regulation S-X Part 210, Rule 4-10(a) and the SPE-PRMS as the following reserves status definitions are based on excerpts from the original documents (direct passages excerpted from the aforementioned SEC and SPE-PRMS documents are denoted in italics herein).

**<u>DEVELOPED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(6) defines developed oil and gas reserves as follows:

 ****

*Developed oil and gas reserves are reserves of any category that can be expected to be recovered:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) Through existing wells with existing equipment and operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well; and* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well.

 ****

**<u>Developed Producing (SPE-PRMS Definitions)</u>**

While not a requirement for disclosure under the SEC regulations, developed oil and gas reserves may be further sub-classified according to the guidance contained in the SPE-PRMS as Producing or Non-Producing.

 ****

***<u>Developed Producing Reserves</u>***

*Developed Producing Reserves are expected quantities to be recovered from completion intervals that are open and producing at the effective date of the estimate.* 

 

*Improved recovery reserves are considered producing only after the improved recovery project is in operation.* 

 

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

 

 

PETROLEUM RESERVES STATUS DEFINITIONS AND GUIDELINES

 

***<u>Developed Non-Producing</u>***

*Developed Non-Producing Reserves include shut-in and behind-pipe Reserves.* 

 ****

***<u>Shut-In</u>***

*Shut-in Reserves are expected to be recovered from:*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *completion intervals that are open at the time of the estimate but which have not yet started producing;* 

*(2)* *wells which were shut-in for market conditions or pipeline connections; or* 

*(3)* *wells not capable of production for mechanical reasons.* 

***<u>Behind-Pipe</u>***

*Behind-pipe Reserves are expected to be recovered from zones in existing wells that will require additional completion work or future re-completion before start of production with minor cost to access these reserves.* 

 

*In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well.* 

 ****

**<u>UNDEVELOPED RESERVES (SEC DEFINITIONS)</u>**

Securities and Exchange Commission Regulation S-X §210.4-10(a)(31) defines undeveloped oil and gas reserves as follows:

 ****

*Undeveloped oil and gas reserves are reserves of any category that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(i) Reserves on undrilled acreage shall be limited to those directly offsetting development spacing areas that are reasonably certain of production when drilled, unless evidence using reliable technology exists that establishes reasonable certainty of economic producibility at greater distances.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(ii) Undrilled locations can be classified as having undeveloped reserves only if a development plan has been adopted indicating that they are scheduled to be drilled within five years, unless the specific circumstances, justify a longer time.* 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(iii) Under no circumstances shall estimates for undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual projects in the same reservoir or an analogous reservoir, as defined in paragraph (a)(2) of this section, or by other evidence using reliable technology establishing reasonable certainty.*

RYDER SCOTT COMPANY PETROLEUM CONSULTANTS

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

<u>Form S-1</u>

(Form Type)

<u>White River Energy Corp</u>

(Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered and Carry Forward Securities</u>

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security** <br> **Type** | **Security** <br> **Class** <br> **Title** | **Fee** <br> **Calculation** <br> **or Carry** <br> **Forward Rule** | **Amount** <br> **Registered (1)** | **Proposed** <br> **Maximum** <br> **Offering** <br> **Price Per** <br> **Unit** | **Maximum** <br> **Aggregate** <br> **Offering** <br> **Price** | **Fee** <br> **Rate** | **Amount of** <br> **Registration** <br> **Fee** | **Carry** <br> **Forward** <br> **Form** <br> **Type** | **Carry** <br> **Forward** <br> **File** <br> **Number** | **Carry** <br> **Forward** <br> **Initial** <br> **effective** <br> **date** | **Filing Fee** <br> **Previously** <br> **Paid In** <br> **Connection** <br> **with** <br> **Unsold** <br> **Securities** <br> **to be**<br> **Carried** <br> **Forward** |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to Be <br>Paid | Equity | Common Stock, par value $0.0001 per share (2) | Other <br>(2) | 42254521 | $0.90 <br>(2) | $38029168.90 | $110.20 per $1,000,000 | $4190.80 |  |  |  |  |
| Fees to Be <br>Paid | Equity | Common Stock, par value $0.0001 per share (2) | Other <br>(3) | 4756841 | $0.90 <br>(3) | $4281134.40 | $110.20 per $1,000,000 | $471.78 |  |  |  |  |
| Fees to Be <br>Paid | Equity | Common Stock, par value $0.0001 per share (4) | Other <br>(4) | 9513682 | $0.90 <br>(4) | $8562268.80 | $110.20 per $1,000,000 | $943.578 |  |  |  |  |
| Fees to Be Paid | Equity | Warrants to Purchase Common Stock | Other <br>(5) | 9513682 | $1.00 <br>(5) | $9513682.00 | $110.20 per $1,000,000 | $1048.41 |  |  |  |  |
| Fees <br>Previously <br>Paid |  |  |  |  |  |  |  |  |  |  |  |  |
| Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities |
| Carry <br>Forward <br>Securities |  |  |  |  |  |  |  |  |  |  |  |  |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  | $**60386221.60** | $**6654.57** |  |  |  |  |  |
|  | **Total Fees Previously Paid (6)** | **Total Fees Previously Paid (6)** | **Total Fees Previously Paid (6)** | **Total Fees Previously Paid (6)** |  |  | $**6654.57** |  |  |  |  |  |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** |  |  |  |  |  |  |  |  |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  |  |  |  |  |  |

---

(1) Consists of (i) Spin-Off Shares issuable to and distributable by Ecoark Holdings, Inc , now known as BitNile Metaverse, Inc . ("Ecoark") in connection with the conversion of the Series A Convertible Preferred Stock held by Ecoark and the subsequent spin-off of the Spin-Off Shares underlying the Series A (including up to 1,000 Spin-Off Shares distributable to account for rounding up of fractional shares); (ii) shares of common stock underlying PIPE Securities, namely Series C Convertible Preferred Stock and Warrants representing 200% warrant coverage; and/or (iii) the Warrants themselves. Capitalized terms used herein have the meanings set forth in Prospectus which forms of the Registration Statement with which this Filing Fees Table is filed as Exhibit 107. The Company's common stock will be issued to the Selling Stockholders upon conversion of Series C at a conversion price which may be lower (and thereby the number of shares of common stock issuable upon the conversion of the Series C may be higher) depending on the PIPE Securities Formula. The number of shares of common stock issuable upon exercise price may also be increased based on the PIPE Securities Formula. Represents the maximum number of shares of common stock offered by the Selling Stockholders named in the Registration Statement. Also includes such indeterminate number of additional shares of common stock issuable by reason of any stock dividend, stock split, recapitalization or other similar transaction, including, but not limited to, as a result of the anti-dilution provisions contained in the securities.

(2) Pursuant to Rule 457(f)(1) under the Securities Act of 1933, and solely for the propose of calculating the registration fee, the fee for the Spin-Off is based on the estimated market value of the Spin-Off Shares as specified under Rule 457(c), which reflects the average of the high and low sale prices of the shares of common stock as of December 5, 2022, as reported on the OTCQB.

(3) Pursuant to Rule 457(c) under the Securities Act of 1933, and solely for the purpose of calculating the registration fee, the proposed maximum offering price per share of the common stock issuable upon conversion of Series C is estimated to be $0.90, which is the average of the high and low sale prices of the shares of common stock as of December 5, 2022, as reported on the OTCQB.

(4) Pursuant to Rule 457(g) under the Securities Act of 1933, and solely for the purpose of calculating the registration fee, the proposed maximum offering price per share of the common stock issuable upon exercise of the warrants exercisable at $1.00 per share, estimated based upon the higher of (a) the exercise price of such warrants, and (b) $0.90, which is the average of the high and low sale prices of the shares of common stock as of December 5, 2022, as reported on the OTCQB.

(5) Pursuant to Rule 457(i), the registration fee paid by the Company in connection with the Warrants includes the sale by the Selling Stockholders of the Warrants, and the subsequent exercise thereof.

(6) Fees totaling $8,078.43 were previously paid in connection with the Company's initial filing of the Registration Statement on December 7, 2022.