# EDGAR Filing Document

**Accession Number:** 0001748441
**File Stem:** 0001493152-26-025355
**Filing Date:** 2026-5
**Character Count:** 334421
**Document Hash:** 3b1e647b6bc4254157c7908a42271ee5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-025355.hdr.sgml**: 20260527

**ACCESSION NUMBER**: 0001493152-26-025355

**CONFORMED SUBMISSION TYPE**: 253G2

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20260527

**DATE AS OF CHANGE**: 20260527

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MODE MOBILE, INC.
- **CENTRAL INDEX KEY:** 0001748441
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 473902362
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 253G2
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12709
- **FILM NUMBER:** 261023927

**BUSINESS ADDRESS:**
- **STREET 1:** ONE EAST ERIE STREET
- **STREET 2:** SUITE 525
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60611
- **BUSINESS PHONE:** 847-999-8739

**MAIL ADDRESS:**
- **STREET 1:** ONE EAST ERIE
- **STREET 2:** SUITE 525
- **CITY:** CHICAGO
- **STATE:** IL
- **ZIP:** 60611

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Nativ Mobile, LLC
- **DATE OF NAME CHANGE:** 20180730

**Filed Pursuant to Rule 253(g)(2)**

**File No. 024-12709**

**EXPLANATORY NOTE**

This document supplements, and should be read in conjunction with, the Offering Circular dated March 23, 2026 (the "Offering Circular") of Mode Mobile, Inc. (the "Company"). Unless otherwise defined in this supplement, capitalized terms used in this supplement shall have the same meanings as set forth in the Offering Circular. The Offering Circular is available <u>[HERE](https://www.sec.gov/Archives/edgar/data/1748441/000149315226012098/form253g2.htm).</u>

The purpose of this supplement is to include the consolidated financial statements and the report of independent registered public accounting firm as of and for the years ended December 31, 2025 and 2024, as well as to provide certain other updates regarding the business of the Company.

**OFFERING CIRCULAR**

**DATED MAY 27, 2026**

**Mode Mobile, Inc.**

One East Erie Street, Suite 525

Chicago, IL 60611

<u>www.modemobile.com</u>

**Up to**

**106,633,874 shares of Class AAA Common Stock<sup>(1)</sup>**

**Including up to 17,772,312 Bonus Shares<sup>(7)</sup> and 22,766,332 shares to be sold by selling**

**securityholders<sup>(5)</sup>**

We are offering, on a "best efforts" basis, a maximum of 106,633,874 shares of Class AAA Common Stock, composed of 66,095,230 shares to be offered directly for cash consideration of up to $33,047,615, a maximum of 17,772,312 shares to be issued as "Bonus Shares" for no additional cash consideration to eligible investors in this offering based on certain criteria, and 22,766,332 shares to be sold by selling stockholders for up to $11,383,166, the proceeds from which will be received directly by the selling securityholders, and not by us.<sup>(5)</sup>

Each purchaser of Class AAA Common Stock is limited to up to one Bonus Share for each Class AAA Common Stock purchased for $0.50 per share. See "Plan of Distribution and Selling Securityholders" for further details.

The minimum investment in this offering is $1,000, or 2,000 shares of Class AAA Common Stock, plus an investor fee equal to 2% or $20; however, the Company may accept subscriptions for a lower amount and waive its investor fee in its sole discretion.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Price Per**<br> **Share to**<br>**the Public** | **Underwriting**<br>**Discounts and**<br> **Commissions, per**<br>**share<sup>(2)</sup>** | **Proceeds to**<br> **Company**<br>**Before**<br>**Expenses** | **Proceeds to**<br> **other**<br>**persons <sup>(5)</sup>** |
| Per Share of Class AAA Common Stock<sup>(4)</sup> | $0.5000 | $0.0150 | $0.4850 | $0.5000 |
| Investor Fee Per Share<sup>(3)</sup> | $0.0100 |  |  |  |
| Per Share Plus Investor Fee | $0.5100 | $0.0153 | $0.4947 | $0.5000 |
| Total Maximum Including Investor Fee <sup>(7)</sup> | $45319397<sup>(6)</sup> | $2484582 | $31451649 | $11383166 |
| Total Maximum Including Value of Bonus Shares and Investor Fee | $54205553<sup>(8)</sup> | $2484582 | 31451649 | $11383166 |

---

(1) The
 Company is offering up to 66,095,230 shares of Class AAA Common Stock directly to investors (the "Cash Shares") for up
 to a maximum of $33,047,615, plus up to 17,772,312 of additional shares of Class AAA Common Stock eligible to be issued as Bonus
 Shares to eligible investors at no additional charge based certain criteria. Additionally, 22,766.332 shares of Class AAA Common
 Stock are being offered by selling stockholders of the Company for up to $11,383,166, the proceeds from which will be received directly
 by the selling securityholders, and not by our Company. See "Plan of Distribution and Selling Securityholders" for further
 details.

(2) The
 Company has engaged DealMaker Securities, LLC, member FINRA/SIPC ("Broker" or "DealMaker" or "Dealmaker
 Securities"), as broker-dealer of record, to perform broker-dealer administrative and compliance related functions in connection
 with this Offering. The Broker does not purchase any securities from the issuer with a view to sell those for the issuer as part
 of the distribution of the security. Once the Commission has qualified the Offering Statement and this Offering commences, Broker
 will receive a cash commission equal to three percent (3.0%) of the amount raised in the Offering based on its sales. There is also
 a budgeted fee of $1,125,000 to be paid to a Broker affiliate for media management and supplementary marketing services on a case-by-case
 basis, but not to exceed the total. Neither the Broker nor its affiliates are charging compensation on Bonus Shares that are issued.
 See "Plan of Distribution and Selling Security Holders" for more details. In the case of a fully subscribed offering
 in which all investments are made through Broker, the maximum amount the Company would pay Broker and its affiliate $2,484,582 in
 underwriting compensation. To the extent that the Company's officers and directors make any communications in connection with
 the Offering they intend to conduct such efforts in accordance with an exemption from registration contained in Rule 3a4-1 under
 the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and, therefore, none of them is required to register
 as a broker-dealer.

(3) Investors
 will be responsible for a transaction fee equal to two percent (2.0%) of the purchase price for shares of Class AAA Common Stock
 paid at the time of investment (the "Investor Fee"). Broker will receive commissions on the Investor Fee. If fully subscribed,
 this would represent a maximum commission of $26,658. See Plan of Distribution and for additional discussion of this Investor Fee.
 We note that the Investor Fee will only be based on the purchase price for shares in this Offering, and therefore will not be affected
 by any Bonus Shares investors receive in this Offering. All investments will have a maximum Investor Fee of $200.00, which represents
 the fee for a $10,000 investment.

(4) Does
 not include effective discount that would result from the issuance of Bonus Shares. For details of the effective discount, see "Plan
 of Distribution and Selling Securityholders"

(5) Shares
 of Class AAA Common Stock will be sold by selling securityholders of the Company only after the Company has received aggregate gross
 proceeds $5 million as a part of this Offering, which has already been met. This amount represents proceeds that will be received
 directly by the selling securityholders listed in this Offering Circular. See "Plan of Distribution and Selling Securityholders"
 for more information. Shares will be sold in proportion with the Cash Shares so that at no point will the selling securityholder
 shares be greater than 30% of the value of the Class AAA Common Stock issued in this Offering.

(6) The
 total maximum gross offering proceeds that the Company may receive in this Offering is $33,936,230 (which includes the Investor Fees
 of $888,615 and potential proceeds from the sale of shares by the Company of $33,047,615). The remainder of this total represents
 the maximum offering proceeds that selling securityholders in this Offering may receive ($11,383,166).

(7) Each
 purchaser of Class AAA Common Stock is limited to up to one-half of one Bonus Share for each Class AAA Common Stock purchased for
 $0.50 per share. Investors will be eligible for Bonus Shares regardless of whether shares are purchased from the Company or from
 Selling Stockholders. See "Plan of Distribution and Selling Securityholders" for further details, including the eligibility
 criteria to receive Bonus Shares in this Offering. We note that purchasing shares of Class AAA Common Stock on this offering is a
 requirement to receive Bonus Shares. Even if investors, existing stockholders of our Company or Mode Mobile users and/or members
 meet the criteria set forth in "Plan of Distribution and Selling Securityholders", such as signing up for membership,
 attending webinars, entering sweepstakes, redeeming rewards points, or making referrals, they will not receive any Bonus Shares unless
 they purchase shares of Class AAA Common Stock for cash in this Offering Circular.

(8) While
 the Company will not receive any additional consideration for the Bonus Shares nor the shares offered by selling shareholders issued
 as part of this Offering, pursuant to Rule 251(a), the total value of this Offering is $54,205,553, comprised of maximum gross offering
 proceeds to the Company of $33,936,230 (which includes Investor Fees of $888,615 and potential proceeds from the sale of shares by
 the Company of $33,047,615), the value of the potential proceeds selling securityholders in this Offering may receive of $11,383,166
 and the value of the Bonus Shares of $8,886,156.

Bonus Shares are available to investors based on the criteria discussed below under "Plan of Distribution." Investors will pay full price for their securities, and if eligible may receive Bonus Shares equal to an amount that is 5% to 20% of the number of shares purchased. Those investors not eligible for the maximum value of Bonus Shares will experience additional dilution compared to investors receiving the maximum number of Bonus Shares.

**By investing in this Offering, investors will become subject to the lock-up provision included in the subscription agreement. The terms of the lock-up provision is described in further detail in the "Securities Being Offered" section of this Offering Circular.**

The Company is selling shares of Class AAA Common Stock.

The Offering will terminate at the earlier of the date at which the maximum offering amount has been sold or the date at which the offering is earlier terminated by the Company at its sole discretion. At least every 12 months after this Offering has been qualified by the United States Securities and Exchange Commission, the Company will file a post-qualification amendment to include the Company's recent financial statements. The Offering covers an amount of securities that we reasonably expect to offer and sell within two years, although the Offering Statement of which this Offering Circular forms a part may be used for up to three years and 180 days under certain conditions.

This Offering does not have a minimum offering amount. The Company will not utilize a third-party escrow account for this offering, and all funds tendered by investors will be held in a segregated account until investor subscriptions are accepted by the Company and reviewed by DealMaker Securities. Once investor subscriptions are accepted by the Company and reviewed by DealMaker Securities, funds will be deposited into an account controlled by the Company.

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OR GIVE ITS APPROVAL OF ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)I(c) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO <u>www.investor.gov</u>.

This Offering is inherently risky. See "Risk Factors" on page 6.

Sales of these securities commenced on approximately March 20, 2026.

The Company is following the "Offering Circular" format of disclosure under Regulation A.

**In the event that the Company becomes a reporting Company under the Securities Exchange Act of 1934, the Company intends to take advantage of the provisions that relate to "Emerging Growth Companies" under the JOBS Act of 2012. See "Summary — Implications of Being an Emerging Growth Company."**

---

| | |
|:---|:---|
| [SUMMARY](#sp_001) | 4 |
| [RISK FACTORS](#sp_002) | 6 |
| [DILUTION](#sp_003) | 12 |
| [USE OF PROCEEDS TO ISSUER](#sp_004) | 17 |
| [OUR BUSINESS](#sp_005) | 17 |
| [THE COMPANY'S PROPERTY](#sp_006) | 23 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#sp_007) | 23 |
| [DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES](#sp_008) | 27 |
| [COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS](#sp_009) | 29 |
| [SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS](#sp_010) | 30 |
| [INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS](#sp_011) | 30 |
| [SECURITIES BEING OFFERED](#sp_012) | 31 |
| [PLAN OF DISTRIBUTION AND SELLING SECURITY HOLDERS](#sp_013) | 41 |
| [FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024](#ta_001) | F-1 |

---

**Implications of Being an Emerging Growth Company**

The Company is not subject to the ongoing reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act") because it is not registering its securities under the Exchange Act. Rather, it will be subject to the more limited reporting requirements under Regulation A, including the obligation to electronically file:

● annual reports (including disclosure relating to the company's business operations for the preceding three fiscal years, or, if in existence for less than three years, since inception, related party transactions, beneficial ownership of the issuer's securities, executive officers and directors and certain executive compensation information, management's discussion and analysis ("MD&A") of the issuer's liquidity, capital resources, and results of operations, and two years of audited financial statements),

● semi-annual reports (including disclosure primarily relating to the issuer's interim financial statements and MD&A) and

● current reports for certain material events.

In addition, at any time after completing reporting for the fiscal year in which this offering statement was qualified, if the securities of each class to which this offering statement relates are held of record by fewer than 300 persons and offers or sales are not ongoing, the company may immediately suspend the Company's ongoing reporting obligations under Regulation A.

If and when the Company becomes subject to the ongoing reporting requirements of the Exchange Act, as an issuer with less than $1.07 billion in total annual gross revenues during its last fiscal year, it will qualify as an "emerging growth company" under the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and this status will be significant. An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company it:

● will not be required to obtain an auditor attestation on its internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● will not be required to provide a detailed narrative disclosure discussing its compensation principles, objectives and elements and analyzing how those elements fit with its principles and objectives (commonly referred to as "compensation discussion and analysis");

● will not be required to obtain a non-binding advisory vote from its shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on-frequency" and "say-on-golden-parachute" votes);

● will be exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;

● may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations, or MD&A; and

● will be eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards.

The Company intends to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under Section 107 of the JOBS Act. The company's election to use the phase-in periods may make it difficult to compare its financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under Section 107 of the JOBS Act.

Under the JOBS Act, the Company may take advantage of the above-described reduced reporting requirements and exemptions for up to five years after the company's initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, as amended, or such earlier time should it no longer meet the definition of an emerging growth company. Note that this offering, while a public offering, is not a sale of common equity pursuant to a registration statement, since the offering is conducted pursuant to an exemption from the registration requirements. In this regard, the JOBS Act provides that the Company would cease to be an "emerging growth company" if the Company has more than $1.07 billion in annual revenues, has more than $700 million in market value of its common stock held by non-affiliates, or issues more than $1 billion in principal amount of non-convertible debt over a three-year period.

Certain of these reduced reporting requirements and exemptions are also available to the Company due to the fact that it may also qualify, once listed, as a "smaller reporting company" under the Commission's rules. For instance, smaller reporting companies are not required to obtain an auditor attestation on their assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to provide a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

**SUMMARY**

The following summary of certain information contained in this Offering Circular is not intended to be complete in itself. The summary does not provide all the information necessary for you to make an investment decision. You are encouraged to review the more detailed information in the remainder of the Offering Circular.

As used in this Offering Circular, unless the context otherwise requires, the terms "Company", "Mode", "we", "our" and "us" refer to Mode Mobile, Inc. Current (Gibraltar) Limited and NGL Labs, LLC, on a consolidated basis, unless the context indicates otherwise.

THIS OFFERING CIRCULAR MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO, AMONG OTHER THINGS, THE COMPANY, ITS BUSINESS PLAN AND STRATEGY, AND ITS INDUSTRY. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON THE BELIEFS OF, ASSUMPTIONS MADE BY, AND INFORMATION CURRENTLY AVAILABLE TO THE COMPANY'S MANAGEMENT. WHEN USED IN THE OFFERING MATERIALS, THE WORDS "ESTIMATE," "PROJECT," "BELIEVE," "ANTICIPATE," "INTEND," "EXPECT" AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS, WHICH CONSTITUTE FORWARD LOOKING STATEMENTS. THESE STATEMENTS REFLECT MANAGEMENT'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE THE COMPANY'S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTAINED IN THE FORWARD-LOOKING STATEMENTS. INVESTORS ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE ON WHICH THEY ARE MADE. THE COMPANY DOES NOT UNDERTAKE ANY OBLIGATION TO REVISE OR UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER SUCH DATE OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.

**Mode Mobile Company Overview**

Mode Mobile, Inc. was founded in 2015 as a Limited Liability Company with a mission to provide people around the world with income and saving opportunities through their everyday mobile activities. Mode Mobile was previously known as Nativ Mobile, Inc. before it changed its name to Mode Mobile, Inc. in 2022. Prior to that, the Company was originally founded as Nativ Mobile, LLC before a name change and conversion a Delaware corporation in 2021. The Company aims to unlock the full potential of the world's most accessible income-generating asset, the smartphone, currently sitting untapped in the pockets of over 7 billion global consumers. These consumers spend 4 trillion hours per year on their smartphones and we believe this presents a massive opportunity to turn people's phones into income streams, just like Uber and Airbnb did with cars and homes. At Mode, we enable customers to earn and save money directly from the things they already do – like playing games, listening to music, watching videos, and even charging and unlocking their phones.

**Selected Risks Associated With The Business**

Our business is subject to a number of risks and uncertainties, including those highlighted in the section titled "Risk Factors" immediately following this summary. These risks include, but are not limited to, the following:

● We have a limited operating history upon which to evaluate our performance and have not yet generated profits or net income.

● We are constantly updating and advancing our technology and there is no guarantee that we will be able to find a product-market fit that will allow us to see consistent profits.

● We conducted a token offering, through our Gibraltar-based subsidiary, which may open us up to future regulatory action or litigation.

● We will be required to raise additional capital in order to continue to develop our technology and commercial ready versions of our product.

● We rely on a small management team to execute our business plan.

● We may need to raise additional capital, which might not be available or might be available only on terms unfavorable to us or our investors.

● There is no current market for any shares of the Company's stock.

● The auditor included a "going concern" note in its audit report.

**Offering Terms**

---

| | |
|:---|:---|
| **Securities Offered by the Company** | Maximum of 66,095,230 shares of Class AAA Common Stock at $0.50 per share for up to $33,047,615, plus up to 17,772,312 additional shares of Class AAA Common Stock eligible to be issued as Bonus Shares for no additional consideration. See "Plan of Distribution and Selling Securityholders" for more information on the eligibility criteria to receive Bonus Shares, which will only be offered to investors in this Offering. |
| **Securities Offered by Selling Securityholders** | Maximum of 22,766,332 shares of Class AAA Common Stock for up to $11,383,166 to be received by the selling securityholders. |
| **Minimum Investment** | The minimum investment in this offering is $1,000.00 or 2,000 shares of Class AAA Common Stock. |
| **Securities outstanding before the Offering (as of December 31, 2025):** |  |
| Class AAA Common Stock | 544907998 |
| Class A Common Stock | 627870232 |
| Class B Common Stock <sup>(1)</sup> | 266473575 |
| Class C Common Stock | 11155245 |
| Series Seed Preferred Stock | 345659651 |
| **Securities outstanding after the Offering (assuming the maximum number of shares of Class AAA Common Stock are sold and/or issued in this offering).<sup>(2)</sup>** |  |
| Class AAA Common Stock | 651541872 |
| Class A Common Stock | 612980535 |
| Class B Common Stock<sup>(1)</sup> | 265402147 |
| Class C Common Stock | 11155245 |
| Series Seed Preferred Stock | 338854444 |
| **Use of Proceeds** | The proceeds of this Offering will be used for acquisitions, product development, payroll, marketing, and general overhead. See the "Use of Proceeds" section of this Offering Circular for further details. |

---

(1) Includes up to 244,274,506 shares issuable upon the exercise of options for Class B Common Stock.

(2) Assumes all 66,095,230 of Class AAA Common Stock offered for cash by the Company are sold, plus to the maximum of 17,772,312 Bonus Shares are issued in this Offering. Additionally, assumes all 22,766,332 shares of Class AAA Common Stock are sold by selling stockholders in this Offering. These shares of Class AAA Common Stock would be newly issued as a result of conversion by the following holders: 14,889,697 shares of Class A Common Stock, 6,805,207 shares of Series Seed Preferred Stock, and options exercisable for 1,071,428 shares of Class B Common Stock. This would therefore have the effect of reducing the number of issued and outstanding Class A Common Stock, Series Seed Preferred Stock, and Class B Common Stock by those amounts.

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

**RISK FACTORS**

**<u>Risks Related to Our Company</u>**

**We have a limited operating history upon which to evaluate our performance and have generated minimal profits and net income.**

While we were first organized in 2015, we still have a limited operating history and have yet to consistently generate operating profits or net income. We have been generating revenue since pre-2020, but we also continue to iterate on our products and technology and as such, cannot guarantee that our prior operating history will be indicative of our future operating results, or future products will be able to consistently generate revenue and operating profits.

**Our audited consolidated financial statements for the fiscal years ended December 31, 2025 and 2024, have been prepared on a going concern basis.**

The Company has suffered recurring losses from operations and, as of December 31, 2025, had a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. The Company's ability to continue as a going concern in the next twelve months following the date of the consolidated financial statements is dependent upon its ability to produce revenues and/or obtain financing sufficient to meet current and future obligations and deploy such to produce profitable operating results.

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

The Company may receive up to a maximum of approximately $33 million from the sale of Class AAA Common Stock in this Offering, with additional proceeds going to selling securityholders. Even if the maximum amount is raised, the Company is likely to need additional funds in the future in order to grow, and if it cannot raise those funds for whatever reason, including reasons relating to the Company itself or to the broader economy, it may not survive. If the Company manages to raise only the minimum amount of funds sought, it will have to find other sources of funding for some of the plans outlined in "Use of Proceeds."

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

The implied valuation for the Offering was established by the Company. Unlike listed companies, where there is an existing trading market through which companies may be valued by market-driven stock prices, there is no existing trading market for our securities. As such, the valuation of private companies, especially early-stage companies, is difficult to assess and you may risk overpaying for your investment.

**Our subsidiary conducted a token offering which may open us up to future regulatory action or litigation.**

In 2018, our Gibraltar-based subsidiary, Current (Gibraltar) Limited, conducted and completed a security token offering where we offered $CRNC tokens to investors in consideration for their investments, the proceeds of which are to be used to build out a rewards earning system. The token offering was conducted pursuant to the registration exemption under Rule 506(b) of Regulation D. If the SEC or other regulatory bodies determine that the token offering constituted the sale of securities without compliance with applicable exemptions, the Company may face regulatory enforcement actions, fines, and legal proceedings. Such actions could result in significant financial and reputational harm, as well as diversion of management resources to address regulatory compliance matters. Investors should be aware that regulatory scrutiny and legal challenges in the cryptocurrency space are ongoing, and adverse regulatory outcomes could materially and adversely affect the Company's operations and financial condition. The Company may also be required to undertake remedial measures, cease certain activities, or restructure its operations to comply with securities laws, which could further impact its business and financial performance.

**The Company depends on key personnel and faces challenges recruiting needed personnel.**

The Company's future success depends on the efforts of a small number of key personnel. These key personnel include our Chief Executive Officer, Dan Novaes, and our Chief Technology Officer, Kiran Panesar. In addition, due to its limited financial resources and the specialized expertise required across marketing, business development, and product development, it may not be able to recruit the individuals needed for its business needs. There can be no assurance that the Company will be successful in attracting and retaining the personnel the Company requires to operate and be innovative.

**Competitors may be able to call on more resources than the Company.**

While the Company believes that its platform and product are unique, it is not the only way that its customers and user base can earn supplemental income. Additionally, competitors may replicate our business ideas and produce directly competing products. These competitors may be better capitalized than us, which would give them a significant advantage.

**Our new products and services could fail to achieve market acceptance.**

Our future success is partially based on an assumption that our new products will be able to gain traction in the marketplace. It is possible that these new products will fail to gain market acceptance for any number of reasons. If our products fail to achieve significant traction and acceptance in the marketplace, this could materially and adversely impact the value of your investment.

**Expansion of our platform to a larger number of users will pose challenges.**

As the number of customers using our platform grows, we will face challenges associated with managing our growth. For example, we may need to license rights from content developers. There is no guarantee that we will be able to license such rights at prices that are advantageous to the Company.

**The Company is vulnerable to hackers and cyber-attacks.**

As an internet-based business, we may be vulnerable to hackers who may access the data of the users of our platform. Further, any significant disruption in service on Mode Mobile or in its computer systems could reduce the attractiveness of the platform and result in a loss of investors and users interested in using our platform. Further, we rely on a third-party technology provider to provide some of our back-up technology. Any disruptions of services or cyber-attacks either on our technology provider or on Mode Mobile could harm our reputation and materially negatively impact our financial condition and business.

**Any breach of our users' data could impose liability upon the Company.**

If we or third parties with which we do business were to fall victim to successful cyber-attacks or experience other cybersecurity incidents, including the loss of individually identifiable customer or other sensitive data, we may incur substantial costs and suffer other negative consequences, which may include liability for harms caused to our users from such a breach, or increased cybersecurity and other insurance premiums.

**A significant data breach or a perceived failure to protect the privacy of our customers' data could cause irreparable damage to our reputation, resulting in a loss of confidence in our security protocols and substantial customer churn.**

Our business is heavily dependent on the trust our customers place in our ability to securely manage their sensitive information and maintain the integrity of our digital environment. Any actual or perceived security breach, regardless of its origin or the materiality of the data compromised, could severely tarnish our brand and diminish our standing in the marketplace. Such an event would likely result in an immediate increase in customer churn and could significantly impair our ability to attract new clients, particularly those in highly regulated industries that require rigorous security certifications. If our reputation is damaged, we may be forced to offer substantial discounts or costly incentives to retain existing business, and the long-term impact on our brand equity may not be remediable through marketing or defensive PR efforts. Furthermore, any negative publicity resulting from a security incident—whether or not such publicity is accurate—could divert management's attention and lead to a sustained decline in our competitive position, which would have a material adverse effect on our business, financial condition, and results of operations.

**Risks Associated with the Company's Acquisition Strategy**

**We may fail to realize potential benefits from future acquisitions, which could adversely affect our business, financial condition, and results of operations.**

Our growth strategy includes acquiring complementary technologies, services, products, and other assets. We may not be able to successfully integrate acquired assets or realize the anticipated benefits of such acquisitions. The successful integration of acquired assets requires significant time and resources, and we may incur significant costs with such integration. Additionally, the process of integrating acquired assets may disrupt our existing operations and relationships with employees, customers, and vendors, potentially resulting in the loss of key personnel, customers, or vendors.

**We may not be able to identify or complete suitable acquisitions.**

Our ability to continue to grow through asset acquisitions depends upon, among other things, our ability to identify suitable acquisition candidates, negotiate acceptable acquisition terms, and obtain any required financing. We compete with other potential acquirers for the same targets, which may increase acquisition costs or prevent us from acquiring assets we target. While we have already made two acquisitions, if we are unable to identify or complete additional suitable acquisitions, we may not be able to achieve our desired rate of growth.

**Our acquisitions may result in significant costs, including unexpected or additional costs.**

Any acquisition may result in significant costs, including costs relating to professional services fees, financing costs, and costs of integrating acquired assets. In addition, we may face challenges in integrating technological operations and platforms. If we are unable to manage these costs effectively or if we face greater-than-anticipated costs, our acquisitions may not yield the financial benefits we expect. This also applies to the two acquisitions we have made to date, which are continuing to integrate into our platform and business operations.

**We may incur additional indebtedness to finance our acquisitions.**

Acquisition costs may be in excess of the funds we are seeking to raise in this Offering. As a result, we may be required to incur additional indebtedness when making acquisitions, which could adversely impact our credit ratings, limit our ability to obtain additional financing, increase our borrowing costs, and limit our flexibility to plan for, or react to, changes in our business or market conditions.

**We may fail to conduct sufficient due diligence or to accurately assess the value of acquisition targets.**

We may face challenges in conducting adequate due diligence on future acquisition targets, particularly in competitive bidding situations where time constraints limit our investigation. As a result, we may not accurately assess the value of acquisition targets or identify issues that could result in financial loss, increased costs, or other adverse consequences that could harm our business, financial condition, or operating results.

**Acquisitions may result in dilutive issuances of our equity securities.**

We have already issued equity securities to finance one acquisition, which has resulted in dilution to our stockholders. We may issue additional equity when making future acquisitions, will result in continued dilution for our stockholders. In addition, if the acquired assets do not generate the financial results we expect, impairment charges could adversely affect our financial performance.

**Our acquisition strategy depends in part on our ability to cross-market our products to newly acquired customer bases; any failure to successfully execute this strategy could prevent us from realizing the anticipated benefits of our acquisitions.**

A key component of our business strategy is the acquisition of complementary businesses and the subsequent cross-marketing of our existing product suite to the newly acquired customer base. Our ability to achieve the anticipated synergies and revenue growth from these acquisitions depends on our success in integrating disparate customer groups and marketing techniques.

We may face significant challenges in these efforts, including customer resistance to new product offerings, perceived conflicts in brand positioning, or the inability of our marketing and sales teams to effectively communicate the value proposition of a broader portfolio. If these customers do not perceive the benefits of our integrated solutions, or if we fail to maintain the high level of product quality they expect, we may experience higher-than-anticipated customer churn and a failure to recoup our investment in the acquisition. Furthermore, if our cross-marketing efforts are overly aggressive or poorly executed, we risk alienating acquired customers, which could damage the goodwill of the acquired brand and result in a material adverse effect on our projected revenue and long-term financial performance.

**<u>Risks Related to the Securities in this Offering</u>**

**There is no current market for any shares of the Company's stock.**

There is no existing trading market for the resale of the Company's Class AAA Common Stock being sold in this Offering. Investors should assume that they may not be able to liquidate their investment for some time or be able to pledge their shares as collateral. If an investor seeks to find a secondary buyer for resale of their securities, without an existing trading market establishing a market price for the securities, the investor may not be able to find a purchaser that values the securities at the same price. The Company currently has no plans to list any of its shares on any OTC or similar exchange. It is also unlikely that the Company will ever go public or get acquired by a bigger company. That means the money you paid for these securities could be tied up for a long time.

**Investors will be required to agree to hold their shares for at least 12 months if the Company begins trading on a securities exchange following an IPO or other event.**

Under the terms of the subscription agreement that investors must sign to purchase shares in this Offering, investors are required to agree to not transfer their shares received in this Offering for a period of 12 months after the Company consummates a firm-commitment underwritten public offering or other specified event (which are set forth in the Company's Amended and Restated Certificate of Incorporation, as amended) that results in the Company's securities being traded on a national securities exchange. This type of prohibition on transfer is often referred to as a "lock-up" provision. The result is that investors in this Offering will not be able to sell their shares even if there is a public market until the lock-up has expired. This, in addition to the current absence of a public market, means investors should only purchase the Class AAA Common Stock in this Offering if they are willing to have the money paid for these securities tied up for a long time.

**We have not set a minimum offering amount for this Offering.**

We have not set a minimum offering amount for this Offering and funds received will not be deposited into a third-party escrow account prior to their release to the Company. This means that we will accept and have access to funds as they are received, but we may never raise enough to execute the business plan or even cover the costs of the Offering.

**Our Company is controlled by few shareholders.**

A substantial majority of the Company's outstanding voting securities are held by one shareholder, who can therefore exert significant control over the Company. There are no guarantees that the position of this shareholder will always coincide with the opinion and interests of the other shareholders of the Company.

**Investors in this Offering are purchasing Securities with No Voting Rights.**

The Class AAA Common Stock that we are offering to investors in this offering has no voting rights. This means that you will have no rights in dictating on how the Company will be run. You are trusting in management discretion in making good business decisions that will grow your investment.

**The Company has issued and outstanding shares of preferred stock with rights superior to those of the Class AAA Common Stock being offered in this Offering, including a liquidation preference.**

The Company has Series Seed Preferred Stock issued and outstanding that entitles its holders to a liquidation preference in the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or certain other events (such as, but not limited to, a merger, reorganization or consolidation). In such an event, the holders of shares of Series Seed Preferred Stock then outstanding will be entitled to be paid out of the assets of the Company available for distribution to its stockholders before any payment will be made to the holders of any classes of the Company's Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the Series Seed Original Issue Price (which is currently is $0.01345679), plus any dividends declared but unpaid thereon, or (ii) such amount per share as would have been payable had all shares of Series Seed Preferred Stock been converted into Common Stock immediately prior to such event. As such, it is possible that, in such a liquidation event, investors in this Offering would not receive any distributions of cash or other assets from the Company. See "Securities Being Offered" for more information on the liquidation preference.

**Our potential issuance of Bonus Shares may result in a discounted offering price being paid by certain investors in this Offering.**

Certain investors may be entitled to Bonus Shares in this Offering, which results in an effective discount on any shares purchased. These shares will immediately dilute the value of your shares. Therefore, the value of shares of investors who pay the full price in this Offering will be diluted by investments made by investors entitled to these shares, who will effectively pay less per share. Investors may also suffer immediate dilution if they qualify for a lesser amount of Bonus Shares than other investors, who will effectively pay less per share.

**There is a fixed number of Bonus Shares, and therefore certain investors may not receive Bonus Shares even if they meet the criteria to receive Bonus Shares.**

We have authorized up to 17,772,312 shares of Class AAA Common Stock to be issued as Bonus Shares to investors in this Offering. The Company will not issue more Bonus Shares than this amount. It is possible that, prior to the Company raising the maximum offering amount in this offering of $44,430,781, before the investor fee, it will have issued all 17,772,312 Bonus Shares. If that occurs, investors in this offering that meet the eligibility requirements to receive Bonus Shares will not receive them.

**There is no guarantee of return on investment.**

There is no assurance that a purchaser will realize a return on its investment or that it will not lose its entire investment. For this reason, you should not invest in this Offering if you are unable to withstand losing your entire investment. Each purchaser should read this Offering Circular and all exhibits carefully and should consult with its own attorney and business advisor prior to making any investment decision.

**The Company's management has discretion as to use of proceeds.**

The proceeds from this Offering will be used for the purposes described under "Use of Proceeds." The Company reserves the right to use the funds obtained from this Offering for other similar purposes not presently contemplated which it deems to be in the best interests of the Company and its investors in order to address changed circumstances or opportunities. As a result of the foregoing, the success of the Company will be substantially dependent upon the discretion and judgment of management with respect to application and allocation of the net proceeds of this Offering. Investors for the Class AAA Common Stock hereby will be entrusting their funds to the Company's management, upon whose judgment and discretion the investors must depend.

**The Company's future fundraising may affect the rights of investors.**

In order to expand, the Company is likely to raise funds again in the future, either by offerings of securities or through borrowing from banks or other sources. The terms of future capital raising, such as loan agreements, may include covenants that give creditors greater rights over the financial resources of the Company.

**Our valuation and the offering price of our Class AAA Common Stock have been established internally and are difficult to assess.**

The Company has set the price of its Class AAA Common Stock at $0.50 per share, plus a 2% Investor Transaction Fee, see "Securities Being Offered" for further details on this fee. Valuations for companies at this stage are generally purely speculative. Our valuation has not been validated by any independent third party or established trading market and may decrease precipitously in the future. It is a question of whether you, the investor, are willing to pay this price for a percentage ownership of an early-stage company. The issuance of additional shares of Common Stock, or additional option grants may dilute the value of your holdings. You should not invest if you disagree with this valuation. See "Dilution" for more information.

**The Investor Transaction Fee may not count toward your cost basis for tax purposes.**

The IRS and/or another relevant tax authority may consider the price of the share before including the Investor Transaction Fee as the cost basis for determining any gain or loss at a realization event. You should discuss with your tax advisor the appropriate way to determine the relevant tax obligation.

**The Company may fundraise at a price per share lower than offered to investors in this Offering.**

The Company may seek to raise additional capital in other offerings of its equity securities (including, but not limited to, offerings under Rule 506(c) of Regulation D). In any such offerings, the Company may offer shares of its Class AAA Common Stock at a price per share lower than what is available to investors in this Offering, and could also result in additional dilution to investors in this Offering.

**The subscription agreement that investors must sign to invest in this Offering has a forum selection provision that requires disputes be resolved in state or federal courts in the State of Delaware, regardless of convenience or cost to you, the investor.**

**Our Amended and Restated Certificate of Incorporation**, as amended, **includes a forum selection clause, which could limit our stockholders' ability to obtain a favorable judicial forum for disputes with us or our directors, officers, employees or agents.**

Our Amended and Restated Certificate of Incorporation, as amended, requires that, unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for (i) any derivative action or proceeding brought on our behalf, (ii) any action asserting a claim for breach of a fiduciary duty owed by any of our directors, officers, employees or agents to us or our stockholders, (iii) any action asserting a claim arising pursuant to any provision of the Delaware General Company Law, our Amended and Restated Certificate of Incorporation, as amended or (iv) any action asserting a claim governed by the internal affairs doctrine, in each case subject to said Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.

**Investors in this Offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement, which could result in less favorable outcomes to the plaintiff(s) in any action under the agreement.**

Investors in this Offering will be bound by the subscription agreement, which includes a provision under which investors waive the right to a jury trial of any claim they may have against the Company arising out of or relating to the agreement, including any claims made under the federal securities laws. By signing the agreement, the investor warrants that the investor has reviewed this waiver with his or her legal counsel, and knowingly and voluntarily waives the investor's jury trial rights following consultation with the investor's legal counsel.

If we opposed a jury trial demand based on the waiver, a court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by a federal court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of Delaware, which governs the agreement, by a federal or state court in the State of New York. In determining whether to enforce a contractual pre-dispute jury trial waiver provision, courts will generally consider whether the visibility of the jury trial waiver provision within the agreement is sufficiently prominent such that a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this is the case with respect to the subscription agreement. You should consult legal counsel regarding the jury waiver provision before entering into the subscription agreement.

If you bring a claim against the Company in connection with matters arising under the agreement, including claims under the federal securities laws, you may not be entitled to a jury trial with respect to those claims, which may have the effect of limiting and discouraging lawsuits against the Company. If a lawsuit is brought against the Company under the agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have had, including results that could be less favorable to the plaintiff(s) in such an action.

Nevertheless, if the jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms the agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of the Company's securities or by the Company of compliance with any substantive provision of the federal securities laws and the rules and regulations promulgated under those laws.

In addition, when the shares are transferred, the transferee is required to agree to all the same conditions, obligations and restrictions applicable to the shares or to the transferor with regard to ownership of the shares, that were in effect immediately prior to the transfer of the shares, including but not limited to the subscription agreement.

**Using a credit card to purchase shares may impact the return on your investment as well as subject you to other risks inherent in this form of payment.**

Investors in this Offering have the option of paying for their investment with a credit card, which is not usual in the traditional investment markets. Transaction fees charged by your credit card company (which can reach 5% of transaction value if considered a cash advance) and interest charged on unpaid card balances (which can reach almost 25% in some states) add to the effective purchase price of the shares you buy. See "Plan of Distribution and Selling Securityholders." The cost of using a credit card may also increase if you do not make the minimum monthly card payments and incur late fees. Using a credit card is a relatively new form of payment for securities and will subject you to other risks inherent in this form of payment, including that, if you fail to make credit card payments (e.g. minimum monthly payments), you risk damaging your credit score and payment by credit card may be more susceptible to abuse than other forms of payment. Moreover, where a third-party payment processor is used, as in this Offering, your recovery options in the case of disputes may be limited. The increased costs due to transaction fees and interest may reduce the return on your investment.

The SEC's Office of Investor Education and Advocacy issued an Investor Alert dated February 14, 2018 entitled: Credit Cards and Investments – A Risky Combination, which explains these and other risks you may want to consider before using a credit card to pay for your investment.

**DILUTION**

Dilution means a reduction in value, control or earnings of the shares the investor owns.

**Immediate dilution**

An early-stage company typically sells its shares (or grants options over its shares) to its founders and early employees at a very low cash cost, because they are, in effect, putting their "sweat equity" into the Company. When the Company seeks cash investments from outside investors, like you, the new investors typically pay a much larger sum for their shares than the founders or earlier investors, which means that the cash value of your stake is diluted because each share of the same type is worth the same amount, and you paid more for your shares than earlier investors did for theirs.

The following table compares the price that new investors are paying for their shares with the effective cash price paid by existing shareholders, giving effect to full conversion of all outstanding stock options, and assuming that the shares are sold at $0.50 per share. The schedule presents shares and pricing as issued and reflects all transactions since inception, which gives investors a better picture of what they will pay for their investment compared to the Company's insiders than just including such transactions for the last 12 months, which is what the SEC requires.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Date Issued** | **Issued Shares** | **Potential Shares** | **Total Issued<br> and Potential Shares** | **Effective<br> Cash Price<br> per Share at Issuance or<br> Potential Conversion** |
| Class A Common Stock | 2021 | 627870232 | 0 | 627870232 | $-.000 |
| Class B Common Stock | 2021 | 22199069 | 0 | 22199069 | $0.00917 |
| Class C Common Stock | 2023 | 11155245 | 0 | 11155245 | $-.000 |
| Series Seed Preferred Stock | 2021 | 345659651<sup>(1)</sup> | 0 | 345659651 | $0.01080 |
| Class AAA Common Stock | 2023-2025 | 544907998 | 0 | 544907998 | $0.11696 |
| Warrants for Class AAA Common Stock | 2023-2025 | 0 | 13855208 | 13855208 | $0.00553 |
| <u>Options for Class B Common Stock</u> |  |  |  |  |  |
| $0.0069 Strike Price | 2023-2025 | 0 | 201675253 | 201675253 | $0.00690 |
| $0.01 Strike Price | 2023-2024 | 0 | 7681077 | 7681077 | $0.01000 |
| $0.056 Strike Price | 2025 | 0 | 23893480 | 23893480 | $0.05600 |
| Total Common Share Equivalents |  | 1551792195 | 247105018 | 1798897213 | $0.03922 |
| Investors in Class AAA Common Stock, assuming full amount raised |  | 83867542,<sup>(2)(3)</sup> | 0 | 83867542 | $0.39405 |
| Total After Inclusion of this Offering |  | 1635659737 | 247105018 | 1882764755 | $0.05502 |

---

(1) Assumes
 conversion of all Series Seed Preferred Stock to Class A Common Stock

(2) Does
 not include shares that may be sold by selling securityholders.

(3) Assumes
 the issuance of 100% of the available bonus shares (i.e. 17,772,312 shares).

The following table demonstrates the dilution that new investors will experience upon investment in the Company. The price per share in this table reflects the price of Class AAA Common Stock in the Offering of $0.50. This table uses the Company's audited net tangible book value as of December 31, 2025 of $15,988,144 which is derived from the net equity of the Company in the December 31, 2025 audited financial statements. This tangible net book value is then adjusted to contemplate conversion of all other convertible instruments outstanding at current that would provide proceeds to the Company, which assumes exercise of all warrants and stock options outstanding. While not every outstanding warrant or option may be exercised, we believe that it is important to identify the potential dilution that could occur upon the exercise of all existing securities issued by the Company. To further illustrate the dilution that investors may experience, the second and third tables illustrate dilution including authorized, but unissued stock options, and solely on the basis of outstanding equity securities, respectively.

The offering costs assumed in the following table includes up to $2,484,582 in commissions and other fees to Broker and affiliates incurred for this Offering. The table presents three approximate scenarios for the convenience of the reader: a $5 million raise from this Offering, a $10 million raise from this Offering, and $44 million raised from this Offering, which is not including the investor fees collected, if the offering is fully subscribed.

---

| | | | |
|:---|:---|:---|:---|
| <br>**On Basis of Full Conversion of Issued Instruments** | **$3 million**<br>**Raise <sup>(1)</sup>** | **$10 million**<br>**Raise <sup>(1)</sup>** | **$44 million**<br>**Raise <sup>(1)</sup>** |
| Price Per Share | $0.50 | $0.50 | $0.50 |
| New Shares Issued | 7200000<sup>(2)</sup> | 18620355<sup>(2)</sup> | 83867542<sup>(2)</sup> |
| Capital Raised <sup>(6)</sup> | $3000000 | $7310178 | $33047615 |
| Less: Offering Costs | $(1216800) <sup>(3)</sup> | $(1431000) <sup>(3)</sup> | $(2484582) <sup>(3)</sup> |
| Net Offering Proceeds | $1783200 | $5879178 | $30563033 |
| Net Tangible Book Value Pre-Financing | $22203786<sup>(4)</sup> | $22203786<sup>(4)</sup> | $22203786<sup>(4)</sup> |
| Net Tangible Book Value Post-Financing | $23986986 | $28082964 | $52766820 |
| Shares Issued and Outstanding Pre-Financing | 1798897213<sup>(5)</sup> | 1798897213<sup>(5)</sup> | 1798897213<sup>(5)</sup> |
| Post-Financing Shares Issued and Outstanding | 1806097213 | 1817517568 | 1882764755 |
| Net Tangible Book Value Per Share Prior To Offering | $0.01 | $0.01 | $0.01 |
| Increase/(Decrease) Per Share Attributable to New Investors | $0.00 | $0.00 | $0.02 |
| Net Tangible Book Value Per Share After Offering | $0.01 | $0.02 | $0.03 |
| Dilution Per Share To New Investors ($) | $0.49 | $0.48 | $0.47 |
| Dilution Per Share to New Investors (%) | 97.34% | 96.91% | 94.39% |

---

(1) Excludes
 proceeds from selling securityholders.

(2) Assumes
 the issuance of all the available bonus shares (i.e. 17,772,312 shares), including bonus shares that would be issued from the purchase
 of shares sold by selling securityholders.

(3) Assumes
 DealMaker costs, which include commission of 3% as well as a maximum of $1,125,000 paid to DealMaker for other services. Includes
 commissions paid on selling securityholders. This does not include an anticipated 2% for payment processing expenses and $58,000
 for legal and accounting fees.

(4) Net
 Tangible Book Value is adjusted for conversion proceeds for the outstanding stock options and warrants discussed in (5). The Net
 Tangible Book Value without the adjustment is equal to $15,988,144.

(5) Assumes
 conversion of all issued preferred shares to common stock and conversion of 233,249,810 outstanding stock options (providing proceeds
 of $6,142,079 to net tangible book value) and conversion of 13,855,208 outstanding warrants (providing $76,563 to net
 tangible book value).

(6) Above
 table does not include the investor fee collected with each investor total processed.

The next table is the same as the previous, but adds in consideration of authorized but unissued stock options, presenting the fully diluted basis. This adds 11,024,696 pre-financing shares outstanding and is not adjusted for potential conversion proceeds on the hypothetical exercise of these options.

---

| | | | |
|:---|:---|:---|:---|
| <br>**On Basis of Full Conversion of Issued Instruments** | **$3 million**<br>**Raise**<sup>(1)</sup> | **$10 million**<br>**Raise**<sup>(1)</sup> | **$44 million**<br>**Raise**<sup>(1)</sup> |
| Price Per Share | $0.50 | $0.50 | $0.50 |
| New Shares Issued | 7200000<sup>(2)</sup> | 18620355<sup>(2)</sup> | 83867542<sup>(2)</sup> |
| Capital Raised <sup>(6)</sup> | $3000000 | $7310178 | $33047615 |
| Less: Offering Costs | $(1216800) <sup>(3)</sup> | $(1431000) <sup>(3)</sup> | $(2484582) <sup>(3)</sup> |
| Net Offering Proceeds | $1783200 | $5879178 | $30563033 |
| Net Tangible Book Value Pre-Financing | $22203786<sup>(4)</sup> | $22203786<sup>(4)</sup> | $22203786<sup>(4)</sup> |
| Net Tangible Book Value Post-Financing | $23986986 | $28082964 | $52766820 |
| Shares Issued and Outstanding Pre-Financing | 1809921909<sup>(5)</sup> | 1809921909<sup>(5)</sup> | 1809921909<sup>(5)</sup> |
| Post-Financing Shares Issued and Outstanding | 1817121909 | 1828542264 | 1893789451 |
| Net Tangible Book Value Per Share Prior To Offering | $0.01 | $0.01 | $0.01 |
| Increase/(Decrease) Per Share Attributable to New Investors | $0.00 | $0.00 | $0.02 |
| Net Tangible Book Value Per Share After Offering | $0.01 | $0.02 | $0.03 |
| Dilution Per Share To New Investors ($) | $0.49 | $0.48 | $0.47 |
| Dilution Per Share to New Investors (%) | 97.36% | 96.93% | 94.43% |

---

(1) Excludes
 proceeds from selling securityholders

(2) Assumes
 the issuance of all the available bonus shares (i.e. 17,772,312 shares), including bonus shares that would be issued from the purchase
 of shares sold by selling securityholders

(3) Assumes
 DealMaker costs, which include commission of 3% as well as a maximum of $1,125,000 paid to DealMaker for other services. Includes
 commissions paid on selling securityholders. This does not include an anticipated 2% for payment processing expenses and $58,000
 for legal and accounting fees.

(4) Net
 Tangible Book Value is adjusted for conversion proceeds for the outstanding stock options and warrants discussed in (5). The Net
 Tangible Book Value without the adjustment is equal to $10,540,831.

(5) Assumes
 conversion of all issued preferred shares to common stock and conversion of 233,249,810 outstanding stock options (providing proceeds
 of $6,142,079 to net tangible book value), conversion of 13,855,208 outstanding warrants (providing $76,563 to net
 tangible book value), and conversion of authorized, but unissued stock options of 11,024,696 (no adjustment for proceeds contemplated
 in the calculation).

(6) Above
 table does not include the investor fee collected with each investor total processed.

The final table is the same as the previous two, but removes the assumptions of conversion of options, and warrants and consideration of authorized but unissued stock options, instead only presenting issued shares (common shares, plus the assumption of conversion of all issued and outstanding preferred shares).

---

| | | | |
|:---|:---|:---|:---|
| <br>**On Basis of Full Conversion of Issued Instruments** | **$3 million**<br>**Raise** **<sup>(</sup>**<sup>1)</sup> | **$10 million**<br>**Raise** **<sup>(</sup>**<sup>1)</sup> | **$44 million**<br>**Raise** **<sup>(</sup>**<sup>1)</sup> |
| Price Per Share | $0.50 | $0.50 | $0.50 |
| New Shares Issued | 7200000<sup>(2)</sup> | 18620355<sup>(2)</sup> | 83867542<sup>(2)</sup> |
| Capital Raised <sup>(5)</sup> | $3000000 | $7310178 | $33047615 |
| Less: Offering Costs | $(1216000) <sup>(3)</sup> | $(1431000) <sup>(3)</sup> | $(2484582) <sup>(3)</sup> |
| Net Offering Proceeds | $1783200 | $5879178 | $30563033 |
| Net Tangible Book Value Pre-Financing | $15988144 | $15988144 | $15988144 |
| Net Tangible Book Value Post-Financing | $17771344 | $21867322 | $46551177 |
| Shares Issued and Outstanding Pre-Financing | 1551792195<sup>(4)</sup> | 1551792195<sup>(4)</sup> | 1551792195<sup>(4)</sup> |
| Post-Financing Shares Issued and Outstanding | 1558992195 | 1570412550 | 1635659737 |
| Net Tangible Book Value Per Share Prior To Offering | $0.01 | $0.01 | $0.01 |
| Increase/(Decrease) Per Share Attributable to New Investors | $0.00 | $0.01 | $0.03 |
| Net Tangible Book Value Per Share After Offering | $0.01 | $0.01 | $0.03 |
| Dilution Per Share To New Investors($) | $0.49 | $0.49 | $0.47 |
| Dilution Per Share to New Investors(%) | 97.72% | 97.22% | 94.31% |

---

(1) Excludes
 proceeds from selling securityholders

(2) Assumes
 the issuance of all the available bonus shares (i.e. 17,772,312 shares), including bonus shares that would be issued from the purchase
 of shares sold by selling securityholders

(3) Assumes
 DealMaker costs, which include commission of 3% as well as a maximum of $1,125,000 paid to DealMaker for other services. Includes
 commissions paid on selling securityholders. This does not include an anticipated 2% for payment processing expenses and $58,000
 for legal and accounting fees.

(4) Assumes
 conversion of all issued preferred shares to common stock.

(5) Above
 table does not include the investor fee collected with each investor total processed.

**Future Dilution**

Another important way of looking at dilution is the dilution that happens due to future actions by a company. The investor's stake in a company could be diluted due to the company issuing additional shares, whether as part of a capital-raising event, or issued as compensation to the company's employees or marketing partners. In other words, when the company issues more shares, the percentage of the company that you own will go down, even though the value of the company may go up. You will own a smaller piece of a larger company. This increase in number of shares outstanding could result from a stock offering (such as an initial public offering, another crowdfunding round, a venture capital round, or an angel investment), employees exercising stock options, or by conversion of certain instruments (e.g. convertible bonds, preferred shares or warrants) into stock.

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most development stage companies do not pay dividends for some time).

The type of dilution that hurts early-stage investors most occurs when the company sells more shares in a "down round," meaning at a lower valuation than in earlier offerings. An example of how this might occur is as follows (numbers are for illustrative purposes only):

● In June 2014, Jane invests $20,000 for shares that represent 2% of a company valued at $1 million.

● In December, the company is doing very well and sells $5 million in shares to venture capitalists on a valuation (before the new investment) of $10 million. Jane now owns only 1.3% of the company, but her stake is worth $200,000.

● In June 2015, the company has run into serious problems, and in order to stay afloat, it raises $1 million at a valuation of only $2 million (the "down round"). Jane now owns only 0.89% of the company, and her stake is worth only $26,660.

If you are making an investment expecting to own a certain percentage of the company or expecting each share to hold a certain amount of value, it's important to realize how the value of those shares can decrease by actions taken by the company. Dilution can make drastic changes to the value of each share, ownership percentage, voting control, and earnings per share. In some cases, dilution can also completely wipe out the value of investments made by early investors, without any person being at fault.

Investors should understand how dilution works and the availability of anti-dilution protection.

**USE OF PROCEEDS TO THE ISSUER**

Please see the table below for a summary our intended use of proceeds from this Offering under various raise scenarios:

---

| | | | |
|:---|:---|:---|:---|
|  | **\*\*No Minimum Offering** | | **Maximum Offering** |
| **Total Gross Cash Proceeds** | $3000000 | $10000000 | $45319397 |
| *To Selling Securityholders* | $*0* | $*2689822* | $*11383166* |
| *Commissions & Variable Expenses* | $*1216800* | $*1431000* | $*2484582* |
| *Transaction Fees Charged To Investors* | $*-60000* | $*-200000* | $*-888615* |
| *Fixed Costs* | $*58000* | $*58000* | $*58000* |
| **Total Net Proceeds** | $**1785200** | $**6021178** | $**32282264** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Use of Net Proceeds** | **Amount** | **%** | **Amount** | **%** | **Amount** | **%** |
| *Payroll* | $0 | 0% | $0 | 0% | $3228226 | 10% |
| *Product Development* | $0 | 0% | $0 | 0% | $3228226 | 10% |
| *Marketing & Advertising* | $446300 | 25% | $1505294 | 25% | $8070566 | 25% |
| *General & Administrative* | $446300 | 25% | $1505294 | 25% | $6456453 | 20% |
| *Asset Acquisitions* | $892600 | 50% | $1505294 | 50% | $11298792 | 35% |
| **Total Use of Proceeds** | $**1785200** |  | $**6021178** |  | $**32282264** |  |

---

Because the Offering is a "best efforts," we may close the Offering without sufficient funds for all the intended purposes set out above, or even to cover the costs of this Offering.

The above table assumes commissions and expenses payable to Broker, which, include commissions of 3%, the 2% investor fee, as well as a maximum of $1,125,000 paid for other services, plus legal and accounting expenses totaling $58,000. The table above also includes commissions paid on shares sold by selling securityholders. It also includes the collected investor fees by the company and the expected use of those to pay the estimated payment processing fees of 2% on all shares sold.

The Company reserves the right to change the above use of proceeds if management believes it is in the best interests of the Company.

**OUR BUSINESS**

**Company Operations & Product Overview**

Mode Mobile, Inc. was founded in 2015 as a Limited Liability Company by Dan Novaes, CEO, and Kiran Panesar, CTO, with a mission to provide people around the world with income and saving opportunities through their everyday mobile activities. Mode Mobile was previously known as Nativ Mobile, Inc. before a name change in 2022, and prior to that, was originally founded as Nativ Mobile, LLC before a name change in 2021. The Company aims to unlock the full potential of the world's most accessible income-generating asset, the smartphone, currently sitting untapped in the pockets of over 7 billion global consumers. These consumers spend 4 trillion hours per year on their smartphones and we believe this presents a massive opportunity to turn people's phones into income streams, just like Uber and Airbnb did with cars and homes. At Mode, we enable customers to earn and save money directly from the things they already do – like playing games, listening to music, watching videos, and even charging and unlocking their phones.

**Products**

The Company's Mode Earn App enables users the ability to earn rewards on a single platform for interacting with digital content on their smartphones. Mode Mobile drives user engagement and monetizes user activity primarily through digital marketing revenue from advertising partners. The Company shares a portion of generated revenue with users and also facilitates earnings and savings for users directly from advertising brands. Since 2019, Mode has generated over $100 million in revenue from advertisers or its subscription products and continues to grow annually.

Mode Mobile also offers the Mode EarnPhone which is a smartphone embedded with the Company's EarnOS software for a more integrated and enhanced earnings experience. The ModePhone's software is similar to the Mode Earn App, but includes more functionality and lives in the form of an Operating System. The Mode EarnPhone has all the specs one would want from a phone – like a triple lens camera, fingerprint and face ID, and a 6.52 inch HD screen, but unlike other smartphones, it was developed to make money for its user. The Mode EarnPhone is sold out, but now is available to license to other OEM and carriers. Previously EarnPhone was available at www.modephone.com and a variety of online retailers in the United States such as Amazon, Walmart, and Best Buy. We are currently growing our subscription channels, as well as partnerships with major telecom carriers, while also turning towards international expansion.

In 2023, the Company launched a new subscription software product, called the Mode Earn Club, whereby our users pay a monthly fee for access to our rewards ecosystem. In this new product, the Company keeps 100% of the subscription revenue and the user receives up to 100% faster earnings within EarnOS. This product is already generating revenue for the Company, but is still in beta phase and may change over time based on its performance with our existing user base and in the market.

In January 2025, the Company acquired Applock PRO, a mobile security app for Android that protects private apps, photos, and data by locking them with passwords, patterns, fingerprints, or knock codes, preventing unauthorized access to social media, messages, banking apps, and even system settings like Wi-Fi and Bluetooth. It offers features like intruder selfies, fake error screens, customizable themes, and the ability to hide its own icon to safeguard your privacy from snoopers. Applock PRO earns the majority of its revenue through in-app advertising and is already integrated with Mode's EarnOS software.

In December 2025, the Company acquired Not Gonna Lie ("NGL"), the viral anonymous messaging and social media application that offers exciting and intriguing Q&A games between users that aim to strengthen the connections and friendships between users on the app. NGL is a social app that has over 125 million monthly active users across web and mobile. As a part of this acquisition, two existing employees of NGL stayed on to support the app. The integration of NGL into the Mode Mobile portfolio will focus on three key areas:

&nbsp;&nbsp;&nbsp;&nbsp;1. *Audience Expansion:* Immediately gaining access to NGL's vast and active Generation Z user base, a demographic that the Company believes
 is highly sought after by advertisers.

2. *Monetization Synergy*: Integrating EarnOS features into the NGL app, allowing NGL users to earn rewards for engagement, subscriptions, and
 ad interaction, which aligns with Mode Mobile's core value proposition of compensating users for their time.

3. *Product Deepening*: Leveraging NGL's viral growth mechanisms and social DNA to enhance the Mode Mobile platform's overall
 engagement and stickiness.

In December 2025, the Company completed acquisition of TrimBox LLC ("TrimBox"). TrimBox operates an email inbox management app that helps users unsubscribe from unwanted emails. Users of the TrimBox app have cleaned over 1.7 billion emails across its Chrome extension, web app, and mobile platforms. Rated 4.5 stars with over 7,300 ratings, TrimBox has a privacy-first approach that has resonated with its subscriber base, with the app having an average 4.5 star rating across 7,300 ratings. The app's features include one-click unsubscribing, bulk email deletion, spam blocking, and an AI-powered email assistant.

In March 2026, the Company acquired the assets of QR Code Reader, a mobile application that delivers fast, reliable QR code and barcode scanning. QR Code Reader has an average rating of 4.7 stars with over 668,000 ratings on the App Store. It supports more than 15 code formats including QR codes, barcodes, DataMatrix, and Code128. The Company understands that QR Code Reader has 1.5 million monthly active users and will be a source of recurring revenue for the Company.

**Trademarks**

The Company has protected its trademarks, which is a key part of its business operations and overall corporate strategy. A summary of its trademarks can be found below:

---

| | | | |
|:---|:---|:---|:---|
| Name | Status | Number | Filing Date |
| Earn As You Go | Live | 90072702 | July 24, 2020 |
| Earn As You Go: Activate Earn Mode | Live | 90072727 | July 24, 2020 |
| Earn OS | Live | 97021733 | September 10, 2021 |
| Earn UI | Live | 97023073 | September 21, 2021 |
| Mode Logo | Live | 90815642 | July 7, 2022 |
| The Phone that Pays | Live | 90823313 | July 12, 2021 |
| Earn Mode | Live | 97023080 | September 21, 2021 |
| Mode Earn App | Live | 97177172 | December 17, 2021 |
| Earn App | Live | 97177401 | December 17, 2021 |
| Mode Earn Phone | Live | 97178560 | December 17, 2021 |
| Mode Earn OS | Live | 97181074 | December 20, 2021 |

---

**Key Suppliers**

The Company sources its EarnPhone from Skyworth, a manufacturer based in China. The Company does not have an exclusive relationship with this supplier and can easily source new partners to manufacture the EarnPhone.

**Competition**

The market for rewards-based mobile apps continues to grow and evolve with numerous companies offering consumers the ability to earn cash-back and rewards for various online activities. Competitors include Fetch Rewards, Ibotta, Rakuten, and Swagbucks. Mode Mobile offers an integrated hardware and software solution, the Mode EarnPhone, that rewards users for everyday mobile activities on their smartphones.

While the majority of smartphone manufacturers do not offer an integrated rewards-based operating system like the EarnOS, we do also view smartphone manufacturers like Apple, Samsung, Nokia, and others as indirect competitors to the Mode EarnPhone.

**Customers**

Our customer base, since founding, consists of over 50,000,000 users spread across over 170 countries, who have downloaded the Mode Earn App or purchased the Mode EarnPhone. To date, users have seen earning and estimated savings in the aggregate of over $1,000,000,000 by interacting with our services. The Company typically acquires customers by advertising on social media and search channels such as Google and Meta (Facebook and Instagram).

The Company also counts members of its Mode Earn Club as customers, each of which pay anywhere from $1 to $20 per month to be a member of the Club and earn additional savings and benefits.

The Company also sells its EarnPhone through certain third party retailers, which then sell the EarnPhone to their customers. These third-party retailers include BestBuy, Amazon, Walmart, Newegg, Adorama, Groupon, Mason, Dailysteals, eBay, Reebelo, and UnbeatableSale. The Company uses an in-house business development team, led by its CEO, to acquire new retailers and distribution channels.

The Company also views its advertising partners as customers. The Company has agreements with these advertising partners whereby the partners pay the Company based on how the Company's customers and users interact with various websites and mobile applications.

**Current (Gibraltar) Limited & $CRNC Token Issuance**

The Company also has an affiliate, Current (Gibraltar) Limited ("CGL"), a Gibraltar company organized in 2018. The Company owns 100% of the voting shares of CGL however it has no economic interest it. CGL was organized to develop a rewards network and protocol, the purpose of which was intended to be used as a rewards distribution mechanism for Mode Mobile and its user base (the "EARN'M Network" (f/k/a the $CRNC Network)). In order to build out this network, the Company, via CGL, conducted and completed a security token offering utilizing exemptions from registration under the Securities Act provided by Rule 506(b) of Regulation D and Regulation S to non-US investors. In that offering, CGL offered $CRNC tokens to investors in consideration for their investments. The proceeds from the token offering were approximately $26 million, which was to be used to build out the EARN'M Network. Due to a disclosed delay in delivering tokens to investors resulting from regulatory uncertainties associated with blockchain and cryptocurrency projects, the investments were executed pursuant to "Simple Agreement(s) for Future Tokens" ("SAFTs"), which, among other things, contemplated the Company delivering the $EARNM (f/k/a $CRNC) tokens to investors in advance of the EARN'M Network launch.

The further buildout of the EARN'M Network will be carried out by a foundation established by CGL. In Q4 2024, the Company, through its affiliate, Current (Gibraltar) Limited, launched the $EARNM token on various international cryptocurrency exchanges. The timing of the exchange launches corresponded with the completion of all aspects of the EARN'M ecosystem. Thus, all remaining obligations of the Company with respect to the $EARNM token have been satisfied. Further, and in support of the EARN'M ecosystem and the $EARNM token, the EARNM Foundation was established on or around March 18, 2025. Since that date, the EARNM Foundation, not the Company, has had full control over the governance and all other aspects of the future direction of the EARN'M ecosystem and the $EARNM token.

For purposes of clarification, while the EARNM foundation was established by CGL, it is not deemed a related party. This is because now that the EARN'M Network has launched, its operations have become vested in the foundation itself. The foundation's purpose is to allow stakeholders of the EARN'M Network to govern and direct the ecosystem without a centralized overseer like CGL. CGL had some level of oversight at the EARN'M Foundation's launch, however this oversight ceased once EARN'M stakeholders assumed control of foundation governance.

The Company may engage with the foundation opportunistically as an advertising partner – i.e. to advertise Mode Mobile on the EARN'M Network, and vice versa. However, any relationship between the Company and the foundation (and/or CGL, the entity that established the foundation) in this capacity would be substantially the same as other third-party advertising-based partnerships of the Company. As of the date of this Offering Circular, no written agreement is in place between the Company and CGL or the foundation to serve as an advertising partner. Finally, the EARN'M Network is a stand-alone separate rewards distribution system, and is completely distinct from the Mode Mobile point-based rewards system.

**Employees**

The Company currently has 93 team members (26 full-time employees and 67 full-time contractors), and 7 part-time contractors. These team members are spread out across 18 countries. Approximately 34% of the Company's team members are based in the United States and all of the Company's executive officers and directors are based in the United States.

**Regulation**

By virtue of handling our user's data, we are subject to numerous statutes related to data privacy, and additional legislation and regulation should be anticipated in every jurisdiction in which we operate. Example federal (US) and European statutes we could be subject to are:

*GDPR*

The EU-wide General Data Protection Regulation imposes onerous accountability obligations requiring data controllers and processors to maintain a record of their data processing and policies. It requires data controllers to implement more stringent operational requirements for processors and controllers of personal data, including, for example, transparent and expanded disclosure to data subjects (in a concise, intelligible and easily accessible form) about how their personal information is to be used, imposes limitations on retention of information, increases requirements pertaining to health data and pseudonymized (i.e., key-coded) data, introduces mandatory data breach notification requirements, and sets higher standards for data controllers to demonstrate that they have obtained valid consent for certain data processing activities. Fines for non-compliance with the GDPR will be significant—the greater of €20 million or 4% of global turnover.

*ePrivacy Directive*

The ePrivacy directive sets out the rules relating to the processing of personal data across public communications networks. This directive requires business to ensure consent requests are made and that consent is received from the user before the use of cookies is made. Businesses must communicate the privacy rules with accurate and specific information regarding the data contained in the cookie. Information must be communicated before the consent requests are made, in plain language. Organizations must ensure that users are able to withdraw consent in the same simple manner as the initial consent request.

*CRPA and CCPA*

The CRPA and CCPA define and establish various rights that consumers residing in California have over the privacy of their data along with the responsibilities of businesses when collecting personal information. It requires businesses that control the collection of consumers' personal information to inform them of the category, purpose and duration the business intends to retain such information. It lists the consumers' right to correct their data and have their data deleted. Customers may also exercise their right to limit the sale or sharing of their personal or sensitive personal information. Fines for non-compliance can range from $100 to $750 per consumer per incident. Additionally, in certain cases the California Privacy Protection Agency may impose administrative fines ranging from $2,500 to $7,500 for each violation.

**Acquisition Strategy**

Acquiring complementary businesses and assets is a key part of the Company's strategy and plan of operations. In the last 12 months, the Company has made the following acquisitions:

<u>Applock PRO</u>

In January 2025, the Company closed on $5,000,000 of debt financing to acquire the assets associated with Applock PRO from Eywin Bilgi Teknolojileri A.S for a total cash consideration of $6,583,781 at closing date. The debt has an interest rate equal to the greater of (i) 13.25% interest per annum or 8.50% + SOFR (Secured Overnight Financing Rate). The debt will be paid based on the following schedule: interest-only payments for the first 6 months, then thirty monthly payments of $166,666 plus interest thereafter. The debt is secured by the assets of the Company (and the security interest will continue to be senior to all other security interests in the Company's assets while the debt is outstanding) which the Company must comply with certain financial covenants while the debt is outstanding, including maintaining at least $4.5 million in cash, and maintaining minimum revenue and EBITDA thresholds. The Company believes these requirements do not constrain or burden the Company's operations.

In addition, as a condition of the debt financing, the Company has issued a warrant to the lender to acquire up to 6,000,000 shares of the Company's Class AAA Common Stock. The warrant may be exercised at a price of $0.125 per share and expires on January 24, 2032.

<u>NGL Labs</u>

In December 2025, the Company acquired NGL Labs, LLC, which owns and operates Not Gonna Lie ("NGL"), the viral anonymous messaging and social media application. Mode Mobile purchased 100% of the outstanding units of NGL Labs, LLC as well as all of the business operations, assets, and liabilities, minus any debt, of NGL Labs, LLC.

The Company paid a total of $55,000,000 to purchase NGL from its founders. The purchase price was comprised of 29,333,344 shares of Class AAA Common Stock of Mode Mobile representing a total fair value of $14,666,667, contingent consideration in the form of additional tranches of shares to be issued upon the first and second anniversaries representing a total fair value of $7,333,333, promissory notes payable due to sellers representing a total fair value of $11,000,000 and $22,000,000 in cash. The seller promissory notes payable have total principal of $11,000,000 and interest rates of 3.71%, with 50% of the notes to be repaid 12 months after funding and the remaining 50% to be repaid 24 months after funding.

<u>TrimBox</u>

On December 23, 2025, the Company entered into an Agreement and Plan of Merger (the "TrimBox Merger Agreement") with TrimBox LLC, a Texas limited liability company ("TrimBox"), TB Merger Sub I, Inc., a Delaware corporation and wholly-owned subsidiary of the Company ("First Merger Sub"), TB Merger Sub II, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Company ("Second Merger Sub"), and the founders of TrimBox. TrimBox owns and operates an email inbox management app that helps users unsubscribe from unwanted emails. Mode Mobile purchased 100% of the outstanding units of TrimBox as well as all of the business operations, assets, and liabilities, minus any debt, of TrimBox.

The acquisition was structured as a two-step merger. At the closing, First Merger Sub merged with and into TrimBox LLC, with TrimBox LLC surviving as a wholly-owned subsidiary of the Company (the "First Merger"). Immediately thereafter, TrimBox LLC merged with and into Second Merger Sub, with Second Merger Sub surviving as a wholly-owned subsidiary of the Company (the "Second Merger," and together with the First Merger, the "Mergers"). As a result of the Mergers, Mode Mobile acquired 100% of the equity interests in TrimBox and all of its business operations, assets, and liabilities, other than any indebtedness of TrimBox existing at closing.

The total merger consideration paid to acquire TrimBox was $4,016,667, comprised of: (i) 3,333,333 shares of Class AAA Common Stock of Mode Mobile, representing an agreed fair market value of $1,666,667 (at $0.50 per share), issued at closing; (ii) $1,850,000 in cash paid at closing; and (iii) $500,000 in deferred cash consideration, due on the three-month anniversary of the closing date, of which $400,000 is subject to a 12-month indemnification holdback. If any portion of the deferred cash consideration is not paid when due, the unpaid amount accrues interest at 8% per annum. As of the date of this Offering Circular, $100,000 of the $500,000 deferred cash consideration has already been paid pursuant to the terms of the merger agreement.

The Company believes the TrimBox acquisition provides the opportunity for additional benefits and services to its customers, along with an additional potential revenue stream for the Company, but does not believe the TrimBox acquisition results in any significant change to the nature of its business or plan of operations.

<u>QR Code Reader</u>

On March 2, 2026, the Company entered into an Asset Purchase Agreement with Luni SAS, a company incorporated under the laws of France, and another individual, to acquire the assets of QR Code Reader, a mobile application that delivers fast, reliable QR code and barcode scanning.

The Company paid a total of $20,000,000 to purchase QR Code Reader. A portion of the purchase price was comprised of 8,000,000 shares of Class AAA Common Stock of Mode Mobile representing a total fair value of $4,000,000.

Similarly to the acquisition of TrimBox, the Company believes that incorporating the assets of QR Code Reader into its set of services for customers creates additional opportunities to provide value to customers along with additional revenue streams that is in line with the Company's core mission and products.

<u>Additional Acquisitions</u>

In August 2025, the Company acquired Gallery App, an Android-based mobile gallery and vault application with over 3.92 million total downloads, 210,000 daily active users (DAU), and a 4.53 average user rating. In October 2025, the Company acquired Cleaner App, an Android-based mobile utility application designed to optimize device storage by identifying and removing unnecessary files, including large files and duplicate or unwanted photos. Both of these were asset acquisitions which will be integrated into the Mode ecosystem.

<u>Future Acquisitions</u>

The Company intends to make additional strategic acquisitions of assets over the coming 6-12 months as a part of its growth strategy. These acquisitions will likely include the Company acquiring specific complimentary assets, and/or acquiring key technology, know-how, and personnel. These acquisitions are likely to be undertaken with a mixture of both cash and stock. Potential targets include assets associated with businesses/apps in the rewards & loyalty space, gaming portfolios, launcher and lock screen products and other earnings-related verticals.

When reviewing potential acquisition targets, the Company plans to look for the following:

● Product compatibility

● Year over year revenue growth

● Current profitability

● Strong user growth and retention

● Attractive user acquisition metrics (ROAS, LTV/CAC ratio etc.)

The purpose of these acquisitions would be to further the Company's business, both in the form of acquiring new customers, acquiring more employees, and/or acquiring new technology.

**THE COMPANY'S PROPERTY**

Mode Mobile, Inc. is a fully remote, U.S.-based company and as such, does not have a central headquarters from which it conducts its operations. The Company has limited fixed assets consisting mostly of computer hardware used by employees. The Company's current mailing address is One East Erie Street, Suite 525, Chicago, IL 60611.

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

The following discussion of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes included with this Offering Circular. The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. These consolidated financial statements include the accounts of Mode Mobile and its subsidiaries Mode Mobile, LLC, Mode Phone, LLC, and App Lock LLC, Cleaner App, Gallery, TrimBox LLC and NGL Labs LLC. All intercompany transactions and balances have been eliminated in consolidation.

**Operating Results**

***For the Fiscal Years Ended December 31, 2025 and 2024***

Mode Mobile generated net revenues of $22,151,635 during the fiscal year ended December 31, 2025 compared to $12,136,295 during the fiscal year ended December 31, 2024, representing a 82.52% increase, which was the Company believes was primarily the result of increased sales and marketing activities, as well as additional revenues from new products, including the Mode Earn Club (which launched in 2023) and newsletter advertising revenue, as well additional revenue from the acquisition of certain assets and entities, including Applock, Cleaner App, Gallery App and TrimBox LLC and NGL Labs, LLC, all of which took place in 2025. The majority of the revenues the Company earned in both years was earned through the Company's Mode Earn App, where Mode Mobile gets paid by advertising partners, brands, and other technology providers when Mode users interact with digital content on their smartphones. The Mode Earn Club is another growing driver of revenue in the business. Due to the rules around acquisition accounting, the majority of the revenues generated from the Company's acquisitions were not fully recognized in the consolidated financial statements. A full description of the pro forma consolidated financials for the Company and its acquisitions can be found below.

The Company had costs of net revenues of $1,706,869 and $1,116,359, respectively, during the fiscal years ended December 31, 2025 and 2024. Cost of net revenues consists primarily of Apple & Google store fees and revenue share paid to advertising partners on deals syndicated through those partners. Cost of net revenues also includes hosting costs, as well as the product and related fulfillment costs of hardware products sold. Costs of net revenues increased in 2025 in line with the increase in revenues generated by the Company in 2025 compared to 2024.

The Company's gross margin (defined as net revenues less cost of net revenues divided by net revenues) for the fiscal year ended December 31, 2025 was 92.29% compared to 90.80% for the year ended December 31, 2024**.** The improvement in gross margin was primarily related to increased income in 2025 realized from the launch of new revenue streams in 2024 (such as Applock) as well as the Company's efforts to cut less profitable market and customer segments. Additional improvements in gross margin were related to higher gross margins resulting from the Company's acquisitions.

Total costs and expenses of the Company for both the years ended December 31, 2025 and 2024 primarily consisted of costs of net revenue, customer acquisition costs (i.e. sales and marketing), amounts paid to users who redeem points (earned by them) for cash payment and employee and contractor compensation related to software development and general and administrative expenses. Operating expenses during the fiscal year ended December 31, 2025 amounted to $24,762,315, a 56.72% increase from $15,799,986 during the fiscal year ended December 31, 2024. Sales and marketing expenses consisted primarily of digital advertising costs on social media and search platforms such as Meta and Google, which totaled $9,851,758 during the fiscal year ended December 31, 2025 and $5,822,794 during the fiscal year ended December 31, 2024, or a 69.19% increase period over period. This increase in sales and marketing costs was related to the Company's decision to increase advertising spend to grow more profitable segments of its product line, including the Mode Earn App and Mode Earn Club, among others. Sales and marketing expenses also include rewards that are paid out to Mode Mobile users. Additionally, the Company recognized research and development expenses of $4,564,665 for the year ended December 31, 2025 versus $4,241,684 for the year ended December 31, 2024, which was a 7.61% increase year over year. The increase in research and development expenses was primarily driven by the Company investing more into resources to assist with product development. General and administrative expenses consisted primarily of executive and operational payroll costs, professional services, and overhead expenses, which totaled $8,639,023 for the year ended December 31, 2025 versus $4,619,149 for the year ended December 31, 2024, representing a 87.03% increase. The increase across general and administrative expenses was primarily related to increased hiring across full-time hires and contractors, as well as additional operational expenses to support the Company's acquisitions and previously launched product offerings and planned future product development.

In addition to the above, the Company recognized total other expenses of $1,102,135 during the fiscal year ended 2025, versus total other income of $426,982 during the fiscal year ended 2024. The biggest driver for the loss for 2025 was related to interest expense from notes payable related to acquisitions the Company made in 2025. Provision for income tax for the fiscal year ended December 31, 2025 was $2,172,432, versus $277,743 for the fiscal year ended December 31, 2024.

As a result of the foregoing, the Company realized a net loss of $5,885,247 for the fiscal year ended December 31, 2025 – a 67.46% increase in net loss compared to a net loss of $3,514,452 during the fiscal year ended December 31, 2024.

**Liquidity and Capital Resources**

As of December 31, 2025, Mode's cash-on-hand was $8,881,411 compared to $6,886,521 as of December 31, 2024. The Company also had accounts receivable of $7,378,741 and $2,401,867 as of December 31, 2025 and December 31, 2024. As of December 31, 2025, the Company had outstanding debt of $23,067,378 and zero outstanding debt as of December 31, 2024. The Company's outstanding debt as of December 31, 2025 was entirely to fund certain acquisitions. The details of this debt can be found below:

● On December 1, 2025, the Company issued a Promissory Note for a total obligation of $11,000,000, which is payable in two equal installments of $5,500,000, due on December 1, 2026 and December 1, 2027, respectively.

● During 2025, the Company issued $12,000,000 in senior secured notes with attached warrants to a third-party lender. The January 2025 issuance included 6,000,000 warrants with a $0.125 exercise price, while the December 2025 issuance included 2,800,000 warrants at a $0.250 exercise price. Both notes carry a 13.25% stated interest rate and a 36-month term.

● During October and November 2025, the Company issued short-term promissory notes, pursuant to Rule 506(b) of Regulation D to individual investors totaling $4,414,231 in aggregate principal. The notes bear interest at rates ranging from 12% to 18% per annum, with interest payable monthly and principal due in full one year from the date of issuance. All notes are classified as current liabilities as of December 31, 2025.

Additionally, as of December 31, 2025 and December 31, 2024, the Company had accounts payable and accrued expenses balances $4,584,543 and $3,123,650, respectively.

In 2025, the Company completed financing rounds pursuant to Regulation D, Regulation CF and Regulation A, closing on a total $47,902,612 in gross proceeds, issuing 285,937,828 shares of Class AAA Common Stock. Specifically for the offering under Regulation A, which was originally qualified in July 2024 and closed in August 2025, the Company raised a total of $48,576,962 in gross proceeds, before accounting for selling securityholders, issuing 288,728,874 shares of Class AAA. Common Stock.

The Company currently has a live Regulation A offering that commenced March 23, 2026, in which it is seeking to raise $33,047,615, net of $11,383,166 available to selling securityholders. As of April 30, 2026, the Company has received $1,096,516 in funds from this raise.

In February and March 2026, the Company issued short-term promissory notes, pursuant to Rule 506(b) of Regulation D, to individual investors totaling $4,574,375 in aggregate principal. The notes bear interest at rates ranging from 12% to 18% per annum, with interest payable monthly and principal due in full one year from the date of issuance, with the ability to extend repayment by one year by the Company.

While the Company is generating revenues, the Company has recognized a net loss during the year ended December 31, 2025, and will continue to rely on investor financing, including its latest Regulation A offering, to support its acquisition plans and support minimal operational burn. Additionally, the Company is seeking to bring on additional debt to help finance operations and growth.

**Trend Information**

Historically, the majority of the revenue the Company has earned has been through the Company's Mode Earn App, where Mode Mobile gets paid by advertising partners, brands, and other technology providers when Mode users interact with digital content on their smartphones. Mode Mobile has also generated minimal revenue from sales of the Mode EarnPhone. However, with the introduction of new products like the Mode Earn Club, the Company now has a more diverse mix of revenue streams with stronger gross margins. Throughout 2024 and 2025, the Company continued to focus on scale and engagement, including investing in revenue initiatives we believe have greater potential profitability, including Mode Earn Club and advertising sales revenue, as well as expanding into international markets. In 2025, the Company continued to focus on achieving profitability and as of December 2025 it reached this goal (based on the Company's adjusted EBITDA financial data), partially through its acquisition strategy and partially through improved gross margin and more diverse revenue streams. Over the next few years, the Company will continue to invest in improving product quality and launching expanded product offerings, as well as continuing to expand its product offerings and customer base through strategic acquisitions.

The Company completed a number of asset and business acquisitions during the year ended December 31, 2025, as described in the "Our Business" section of this Offering Circular. The Company anticipates that these acquisitions will contribute to increased revenues, including certain recurring revenue streams. At the same time, the Company expects to increase headcount and incur additional operating expenses in connection with the integration and expansion of these acquired businesses. The Company's objective is for the revenue generated from these acquisitions to exceed the additional expenses incurred, although there can be no assurance that such revenue growth will be achieved or that the acquisitions will be profitable.

While the Company does not plan to incur increased debt in 2026, there is a chance that it does in order to finance additional acquisitions. The Company will fully expect that the increased operating income that results from any additional acquisitions will offset any new debt service costs.

***Selected Unaudited Pro Forma Combined Financial Information***

In December 2025, the Company acquired NGL Labs, LLC, which owns and operates Not Gonna Lie ("NGL"), the viral anonymous messaging and social media application. Mode Mobile purchased 100% of the outstanding units of NGL Labs, LLC as well as all of the business operations, assets, and liabilities, minus any debt, of NGL Labs, LLC. The Company made this acquisition as it believes that the NGL would be a complementary fit to its business operations, product fit, and its customer base.

In December 2025, the Company completed acquisition of TrimBox LLC ("TrimBox"). TrimBox operates an email inbox management app that helps users unsubscribe from unwanted emails. Users of the TrimBox app have cleaned over 1.7 billion emails across its Chrome extension, web app, and mobile platforms. Rated 4.5 stars with over 7,300 ratings, TrimBox has a privacy-first approach that has resonated with its subscriber base, with the app having an average 4.5 star rating across 7,300 ratings. The app's features include one-click unsubscribing, bulk email deletion, spam blocking, and an AI-powered email assistant.

The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company, NGL and TrimBox as if the acquisitions had occurred on January 1, 2024. The pro forma information has been prepared for illustrative purposes only and does not purport to represent what the Company's results of operations would have been had the acquisitions occurred on such date, nor is it necessarily indicative of the Company's future results of operations.

From a consolidated basis, the acquisitions have added significant revenue, gross profit, and net income to the historical results of Mode Mobile. For the year ended December 31, 2025, the combined entities generated unaudited pro forma net revenues of $43,231,328 and net income from operations of $7,729,870. For the year ended December 31, 2024, the combined entities generated unaudited pro forma net revenues of $33,053,478 and net loss from operations of $(3,618,626).

The Company expects minimal impact to its historical balance sheet because of the acquisition. For the year ended December 31, 2025, the combined entities had pro forma unaudited current assets of $22,246,726, including $10,042,770 of cash and cash equivalents. There was a significant increase in the pro forma unaudited non-current assets of the combined entities, which was $55,116,503. This increase was primarily related to the purchase price of NGL and partially offset by amortization on the intangible assets recorded as a result of the acquisition.

**DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term in Office** | **Approximate hours per<br> week for part-time<br> employees** |
| **Executive Officers** |  |  |  |  |
| Dan Novaes | CEO | 36 | June 2015 to Present | Full-time |
| Kiran Panesar | CTO | 31 | June 2015 to Present | Full-time |
| Prakash Ramachandran | CFO | 60 | January 2024 to Present | Full-time |
| Justin Hines | General Counsel | 55 | December 2018 to Present | Full-time |
| Kathy DeKam | Chief People Officer | 64 | May 2021 to Present | Full-time |
| **Directors** |  |  |  |  |
| Dan Novaes | Director | 36 | June 2015 to Present |  |
| Ross Holdren | Director | 41 | February 2021 to Present | 1 |
| Mark Lawrence | Director | 39 | February 2021 to Present | 1 |
| Daniel Hoffer | Director | 48 | January 2026 to Present | 1 |

---

**Dan Novaes, CEO and Director**

Dan co-founded Mode Mobile with Kiran Panesar and has been CEO of the Company since June 2015. During that time, Dan has been responsible for setting the vision and direction for the Company, leading and inspiring a team of executives and managers, developing and executing strategic plans, and representing the organization to stakeholders and the public. Additionally, Dan has played a vital role in building relationships with key partners and vendors, ensuring the Mode Mobile brand is well represented, and the organization is compliant with all applicable laws and regulations. Dan has also been a driving force behind the culture of excellence that can be found throughout the organization and inspiring its team members to reach their highest potential. Dan has followed his entrepreneurial passion throughout his career. From an early age, he used his skills to establish a variety of businesses across international e-commerce, consumer products, and media. Dan is one of the youngest members of YPO and the Chicago Economic Club. He is a graduate of the Indiana Kelley School of Business. Prior to co-founding Mode Mobile, Dan was the co-founder and CEO of MobileX Labs, an application design and development company, from 2012 to 2015. Before then, he spent 10 years as the founder of Elekteks, a consumer electronics ecommerce retailer, and was the inventor of iFlask, the world's first "smart" flask.

**Kiran Panesar, CTO**

Kiran co-founded the Company with Dan Novaes and began as CTO in June 2015. Kiran is responsible for leading the development and implementation of technology strategies to ensure the success of the organization. He oversees the development of new technologies and systems that will enhance the users' experience, support our engineering and product teams, while also focusing on costs and efficiency. Kiran has over 10 years software development experience and is a product and engineering leader with a passion for building cross-functional teams to solve problems. Kiran has a strong track record of successful product launches, including Instaliker, a project that helped millions of people boost their social media following. Before Mode Mobile, Kiran was the co-founder and CTO of MobileX Labs, an application design and development company, with tens of millions of monthly online users, where Kiran oversaw the building and maintenance of infrastructure. Prior to that, Kiran was a co–founder and Programmer for daptppt Designs, a software development company for iPhone and gaming applications.

**Prakash Ramachandran, CFO**

Prakash Ramachandran currently serves as the CFO at Mode Mobile and is responsible for overseeing the Company's financial & business operations functions, including developing & implementing financial plans, policies, and procedures, budgeting & forecasting, and overseeing accounting and financial reporting. Prior to working at Mode Mobile, Prakash served as CFO of Crownpeak Technology from June 2021 to 2023, a PE funded SaaS business. He helped to grow the company's revenue during his tenure, primarily through acquisition initiatives. Before that, Prakash worked as an EVP and CFO for Digital Reasoning, an AI and cognitive computing company from December 2015 to June 2021. During that time, he successfully secured two rounds of financing, oversaw an acquisition of a medium-sized healthcare technology company, and contributed to Digital Reasoning's acquisition by Smarsh, Inc. Prakash previously worked as the CFO for Polyera Corporation from 2011 to 2015, and held various VP and CFO positions in different organizations prior to that, showcasing diverse financial expertise. Prakash has a Bachelor of Commerce from Madras University and a Master of Science in Management from Stanford University Graduate School of Business. He is a Chartered Accountant from India as well as a Chartered Management Accountant of the U.K.

**Kathy DeKam, Chief People Officer**

Kathy joined Mode Mobile as Chief People Officer on May 4, 2021. During her time in that role, she has been responsible for overall strategic direction and management of all human resources activities to support the organization's goals and objectives. This has included performance management, talent acquisition, training and development, and team engagement. Additionally, she is responsible for fostering an open and inclusive culture, and supporting diversity and inclusion. Kathy leads the Company-wide OKR process and is responsible for leading the IT function, which includes technical support and maintenance for computer hardware, software, networks, systems integration, and development and adherence to IT policies and procedures

Before joining the Mode Mobile team, Kathy served from 2020 to 2021 as Chief People and Culture Officer at Qualifacts, a SaaS and web-based electronic health record company with 430+ employees in the U.S. and Peru and $70M+ annual revenue. Her role prior to that ran from 2015 to 2020, when she served as an EVP and Chief People and Culture Officer (5 ½ years) and Co-COO (1 ½ years) at Digital Reasoning, an artificial intelligence cognitive computing company with 180+ employees in the U.S., U.K. and Singapore and $38M+ annual revenue. While with Digital Reasoning, she participated in multiple capital fundraising events totaling $100M, and Smarsh's acquisition of the company. From 2011 to 2015, Kathy was the Director of Human Resources (3 ½ years) and Chief of Staff (6 months) at Video Gaming Technologies, a casino video game developer and manufacturing company with 650+ employees in the U.S. and Mexico and $65M annual revenue. She participated in Aristocrat's acquisition of Video Gaming Technologies, resulting in a company with a total of 6,000+ employees in 103 countries and $3B annual revenue. Kathy is also a U.S. Navy veteran with six years of service.

**Justin Hines, General Counsel & Secretary**

Judd joined Mode Mobile as General Counsel on December 3, 2018. In this role, Judd is responsible for corporate governance, corporate compliance, and legal risk management and ensuring the organization upholds the highest standards of professional excellence. Additionally, Judd monitors and reviews legal and regulatory developments to ensure compliance with all applicable laws and regulations, prepares, reviews, and negotiates contracts, agreements, and other legal documents, and advises on the Company's investment initiatives. Judd is an experienced attorney, with over 24 years of experience in legal, compliance, and investment advisory roles, including Senior Associate at Katten Muchin Rosenman , an AmLaw 100, global law firm. He holds a BA in American Studies from Fairfield University and a Juris Doctorate from Emory University School of Law. Prior to working at Mode Mobile, Judd served from 2014 to 2018 as General Counsel and Chief Compliance Officer at Hayden Royal, an investment banking and finance company with $3B under management. From 2010 to 2014 Judd was the Managing Director at Majestic Capital Advisors, an investment advisory services firm. Prior to that, Judd was a director from 2005 to 2010 with the Macquarie Group, a global financial services company with $600B under management.

**Ross Holdren, Director**

Ross has been on the Board of Directors for Mode Mobile since February, 2021. In addition to his role at Mode Mobile, Ross currently serves as the CEO of Dose, a position he has held since February 2019. Ross has also been on the Board of Directors of Dose since August 2018. Ross is also a Principal at Garland Capital Group, where he has been since July 2013. Ross holds a Bachelor of Science in Business Administration from College of Charleston and a Master in Business Administration from INSEAD.

**Mark Lawrence, Director**

Mark has been on the Board of Directors for Mode Mobile since February, 2021. In addition to his role at Mode Mobile, Mark is the Founder and CEO of SpotHero, a position he has held since October 2010. Mark holds a Bachelor of Science in Finance and a Bachelor of Arts in Spanish from Bradley University.

**Daniel Hoffer, Director**

Daniel has been on the Board of Directors for Mode Mobile since X. Daniel Hoffer is an American entrepreneur and venture capitalist best known as the co-founder and former CEO of the global hospitality exchange service CouchSurfing. Daniel is currently serving as a Managing Partner at Deep Venture Partners, a position he has held since February 2025. He also serves as a director of Citian, an AI-drive "smart city" SaaS software company, where he started as an advisor in August 2023 before being elected to the board of directors of the company in May 2024. Daniel has built an extensive career in Silicon Valley, previously serving as a Managing Director at Autotech Ventures from July 2018 to July 2023, and a Partner at Tandem Capital from April 2015 to September 2017. His operational background includes executive product roles at TripIt (acquired by Concur/SAP) and Symantec, as well as a recent tenure as Senior Vice President of Corporate Development at the AI startup Hayden AI. An alumnus of Harvard College (AB 2000) and Columbia Business School (MBA 2007) Hoffer is also the founder of The Marketplace Conference and is an active angel investor in numerous high-profile startups.

**COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS**

For the year ended December 31, 2025, the Company compensated its executive officers and directors as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Capacities in which<br> compensation was<br> received** | **Cash**<br>**Compensation** | **Other**<br>**Compensation** | **Total**<br>**Compensation** |
| Dan Novaes | CEO, Director | $383050.97 | $0 | $383050.97 |
| Kiran Panesar | CTO | $274082.88 | $0 | $274082.88 |
| Justin Hines | General Counsel | $263630.52 | $0 | $263630.52 |
| Kathy DeKam | Chief People Officer | $292434.01 | $0 | $292434.01 |
| Prakash Ramachandran | CFO | $430833.71 | $0 | $430833.71 |
| Ross Holdren | Director | $0 | $0 | $0 |
| Mark Lawrence | Director | $0 | $0 | $0 |
| Daniel Hoffer | Director | $0 | $0 | $0 |

---

For the year ended December 31, 2025, none of our Directors (3) received cash compensation for their services as Directors of the Company.

***2021 Equity Incentive Plan***

The Company has adopted the 2021 Equity Incentive Plan ("2021 Plan"), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2021 Plan was 243,000,000 shares as of December 31, 2025. The options have a term of ten years. The amount granted each calendar year to an employee or non-employee is limited depending on the type of award. Stock options comprise all of the awards granted since the 2021 Plan's inception. Stock options granted under the 2021 Plan typically vest between immediate and four-year periods. As of December 31, 2025, there were 11,024,696 shares available for future issuance.

**Employment Agreements with Executive Officers**

*Kiran Panesar Employment Agreement*

The Company and Kiran Panesar are each party to an employment agreement dated April 1, 2019. Pursuant to the employment agreement, in exchange for Mr. Panesar's services as CTO, Mr. Panesar is entitled to a starting base salary of $150,000 per year, which may be increased each year based on his performance, as well as an annual bonus not to exceed 20% of the base salary then in effect under the agreement. The agreement renews each year on March 31, unless earlier terminated. The Company may terminate Mr. Panesar's employment for cause with 10 days' notice, or without cause with 6 months' notice. If terminated without cause, Mr. Panesar will be entitled to all compensation otherwise due during that 6 month period. The agreement also contains customary indemnification provisions, whereby the Company agrees to indemnify Mr. Panesar against certain liabilities and expenses that he may become subject to in performance of his duties, subject to certain limitations.

A copy of the employment agreement between Kiran Panesar and the Company is filed as an exhibit to the offering statement of which this Offering Circular forms a part.

*Kathy DeKam Employment Agreement*

The Company and Kathy DeKam are each party to an employment agreement dated May 4, 2021. Pursuant to the employment agreement, in exchange for Ms. DeKam's services as Chief People Officer, Ms. DeKam is entitled to a starting base salary of $220,000 per year, which may be adjusted each year based on performance, as well as an annual bonus not to exceed 15% of the base salary then in effect under the agreement. Ms. DeKam is also eligible to receive revenue-linked bonuses depending on the revenues generated by the Company. Ms. DeKam also received a grant of 1,550,000 $CRNC (EARN'M) Tokens, which will vest in equal installments over four years, as well as 52,891 options under the Company's 2021 Plan. Ms. DeKam's employment is "at-will", and either the Company or Ms. DeKam may terminate the agreement at any time for any reason – but if Ms. DeKam is terminated without cause, or resigns without "good reason", she shall be entitled to severance pay of 3 months' salary. The agreement contains certain customary non-disclosure provisions, whereby Ms. DeKam cannot disclose certain proprietary information of the Company, and also contains non-disparagement clauses. The agreement also contains customary indemnification provisions, whereby the Company agrees to indemnify Mr. DeKam against certain liabilities and expenses that he may become subject to in performance of her duties, subject to certain limitations.

A copy of the employment agreement between Kathy DeKam and the Company is filed as an exhibit to the offering statement of which this Offering Circular forms a part.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITY HOLDERS**

The following information on the security ownership of management and others is as of December 31, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and address of<br> beneficial owner** | **Amount and nature<br> of beneficial<br> ownership** | **Amount and<br> nature of<br> beneficial<br> ownership<br> acquirable** | **Percent of class** |
| **Officers and Directors** |  |  |  |  |
| Class A Common Stock | Daniel Novaes <sup>(1)</sup> | 504010290 | 0 | 80.3% |
| Class A Common Stock | Kiran Panesar <sup>(1)</sup> | 102733358 | 0 | 16.4% |
| Class B Common Stock | Kiran Panesar <sup>(1)</sup> | 0 | 5132646 | 1.9% |
| Class B Common Stock | All Other Officers & Directors <sup>(1)</sup> | 1449275 | 55182474 | 21.1% |
| Class C Common Stock | All Other Officers & Directors <sup>(1)</sup> | 225184 | 0 | 2.0% |
| **Other Significant Holders** |  |  |  |  |
| Series Seed Preferred Stock | Garland Fund I LLC <sup>(1)(2)</sup> | 161000673 | 0 | 46.6% |

---

(1) The
 following address may be used for each holder: One East Erie Street, Suite 525, Chicago, IL 60611

(2) Garland
 Fund I LLC is controlled by Ross Holdren who also serves as a Director of the Company

(3) Based
 on 627,870,232 shares of Class A Common Stock, 22,199,069 shares of Class B Common Stock, 11,155,245 shares of Class C Common
 Stock, and 345,659,651 shares of Series Seed Preferred Stock outstanding as of December 31, 2025.

**INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS**

The Company has employment agreements in place with certain of its executive officers, which are described in the "Compensation of Directors and Executive Officers" section of this Offering Circular.

During the year ended December 31, 2024, the Company recognized $1,851,240 in revenue from services provided to Current (Gibraltar) Limited, which was a related party of the Company during this period. The services encompassed development, engineering, sales, and marketing support, with compensation determined at a rate of $1.75 per unique Mystery Box reveal by users within the Mode Earn App.

Effective December 31, 2024, the related party relationship with CGL was wound down and CGL is no longer revenue-generating. Accordingly, the Company does not expect to recognize revenue from CGL in future periods.

As of the date of this Offering Circular, other than the agreements described above, the Company is not aware of any transactions with related parties that are required to be disclosed.

**SECURITIES BEING OFFERED**

**General**

The Company is offering 66,095,230 shares of Class AAA Common Stock directly, plus up to 17,772,312 additional shares of Class AAA Common Stock eligible to be issued as Bonus Shares. 22,766,332 shares of Class AAA Common Stock are being offered by selling securityholders of the Company. In addition to the terms of the Class AAA Common Stock described below, investors will also agree to the terms of the subscription agreement, which includes important transfer restriction provisions like a "lock-up" described in this section.

The following description summarizes important terms of our capital stock. This summary does not purport to be complete and is qualified in its entirety by the provisions of our Amended and Restated Certificate of Incorporation filed with the State of Delaware on May 16, 2024, as amended on October 22, 2025 (our "Amended and Restated Certificate of Incorporation, as amended") and our Bylaws, copies of which have been filed as Exhibits to the Offering Statement of which this Offering Circular is a part. For a complete description of our capital stock, you should refer to our Amended and Restated Certificate of Incorporation, and our Bylaws, and applicable provisions of the Delaware General Corporation Law.

Under our Amended and Restated Certificate of Incorporation, as amended, our authorized capital stock consists of:

3,617,150,000 shares of Common Stock, $0.0001 par value per share

● 2,431,000,000 shares designated as Class A Common Stock

● 298,000,000 shares designated as Class B Common Stock

● 12,150,000 shares designated as Class C Common Stock

● 876,000,000 shares designated as Class AAA Common Stock

388,800,000 shares of Preferred Stock, $0.0001 par value per share

● 388,800,000 shares designated as Series Seed Preferred Stock

**Class AAA Common Stock**

***Voting Rights***

The shares of Class AAA Common Stock have no voting rights of any kind, except as may be otherwise required by law.

***Conversion***

Each share of Class AAA Common Stock automatically converts into one (1) share of Class A Common Stock immediately upon the earlier of (x) the closing of a firmly underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company or (y) an election by the Board of Directors of the Company to effect any such conversion. Each share of Class B Common stock is convertible into one (1) share of Class AAA Common Stock at the option of the shareholder.

***Dividend Rights***

The Company will not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in the Certificate of Incorporation) the holders of the Series Seed Preferred Stock then outstanding will first receive, or simultaneously receive, a dividend on each outstanding share of Series Seed Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series Seed Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Series Seed Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series Seed Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Series Seed Original Issue Price.

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or Deemed Liquidation Event, after the payment in full of all Preferred Liquidation Amounts (which equaled $4,651,469 as of December 31, 2025) required to be paid to the holders of shares of Series Seed Preferred Stock, the remaining assets of the Company available for distribution to its stockholders will be distributed among the holders of shares of Class A, Class B, Class C, and Class AAA Common Stock, pro rata based on the number of shares held by each such holder.

"Deemed Liquidation Event" is defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a) a
 merger, reorganization or consolidation

b) the
 sale, lease, transfer, exclusive license or other disposition by the Company or any subsidiary of the Company or all or substantially
 all of the assets or intellectual property of the Company and its subsidiaries

Additional information can be found in the Company's Amended and Restated Certificate of Incorporation, as amended.

**Class B Common Stock**

***Voting Rights***

The shares of Class B Common Stock have no voting rights of any kind, except as may be otherwise required by law.

***Conversion***

Each share of Class B Common Stock automatically converts into one (1) share of Class A Common Stock immediately upon the earlier of (x) the closing of a firmly underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company or (y) an election by the Board of Directors of the Company to effect any such conversion. Each share of Class C Common Stock is convertible into one (1) share of Class AAA Common Stock at the option of the shareholder.

***Dividend Rights***

The Company will not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in the Certificate of Incorporation) the holders of the Series Seed Preferred Stock then outstanding will first receive, or simultaneously receive, a dividend on each outstanding share of Series Seed Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series Seed Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Series Seed Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series Seed Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Series Seed Original Issue Price.

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or Deemed Liquidation Event, after the payment in full of all Preferred Liquidation Amounts (which equaled $4,651,469 as of December 31, 2025) required to be paid to the holders of shares of Series Seed Preferred Stock, the remaining assets of the Company available for distribution to its stockholders will be distributed among the holders of shares of Class A, Class B, Class C, and Class AAA Common Stock, pro rata based on the number of shares held by each such holder.

"Deemed Liquidation Event" is defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a) a
 merger, reorganization or consolidation

b) the
 sale, lease, transfer, exclusive license or other disposition by the Company or any subsidiary of the Company or all or substantially
 all of the assets or intellectual property of the Company and its subsidiaries

Additional information can be found in the Company's Amended and Restated Certificate of Incorporation, as amended.

**Class C Common Stock**

***Voting Rights***

The shares of Class C Common Stock have no voting rights of any kind, except as may be otherwise required by law.

***Conversion***

Each share of Class C Common Stock automatically converts into one (1) share of Class A Common Stock immediately upon the earlier of (x) the closing of a firmly underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale of Common Stock for the account of the Company or (y) an election by the Board of Directors of the Company to effect any such conversion.

***Dividend Rights***

The Company will not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in the Certificate of Incorporation) the holders of the Series Seed Preferred Stock then outstanding will first receive, or simultaneously receive, a dividend on each outstanding share of Series Seed Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series Seed Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Series Seed Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series Seed Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Series Seed Original Issue Price.

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or Deemed Liquidation Event, after the payment in full of all Preferred Liquidation Amounts (which equaled $4,651,469 as of December 31, 2025) required to be paid to the holders of shares of Series Seed Preferred Stock, the remaining assets of the Company available for distribution to its stockholders will be distributed among the holders of shares of Class A, Class B, Class C, and Class AAA Common Stock, pro rata based on the number of shares held by each such holder.

"Deemed Liquidation Event" is defined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;a) a
 merger, reorganization or consolidation

b) the
 sale, lease, transfer, exclusive license or other disposition by the Company or any subsidiary of the Company or all or substantially
 all of the assets or intellectual property of the Company and its subsidiaries

Additional information can be found in the Company's Amended and Restated Certificate of Incorporation, as amended.

**Class A Common Stock**

***Voting Rights***

The holders of the Company's Class A Common Stock are entitled to one vote for each share of such stock held at all meetings of stockholders (and written actions in lieu of meetings); provided, however, that, except as otherwise required by law, holders of Class A Common Stock, as such, will not be entitled to vote on any amendment to the Certificate of Incorporation that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together with the holders of one or more other such series, to vote thereon pursuant to the Certificate of Incorporation.

Additionally, holders of Class A Common Stock, exclusively and as a separate class, will be entitled to elect all directors of the Company.

***Conversion Rights***

Each share of Class A Common stock is convertible into one (1) share of Class AAA Common Stock at the option of the shareholder.

***Protective Provisions***

The Company will not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the written consent or affirmative vote of the holders of at least a majority of the then outstanding shares of Preferred Stock and Class A Common Stock, voting together as a single class on an as-converted to Common Stock basis, given in writing or by vote at a meeting, consenting or voting together as a class:

● purchase or redeem or pay or declare any dividend or make any distribution on, on any capital stock, other than (i) dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock, (ii) redemptions of or dividends or distributions on the Series Seed Preferred Stock as expressly provided herein and (iii) stock repurchased from former employees, officers, directors, consultants or other persons who performed services for the Company or any subsidiary in connection with the cessation of their employment/services at the lower of the original purchase price or the then current fair market value thereof, unless otherwise approved by the Board of Directors;

● create or hold capital stock in any subsidiary that is not a wholly-owned subsidiary (either directly or through one or more other subsidiaries); or

● permit any subsidiary of the Company to do any of the foregoing.

***Dividend Rights***

The dividend rights of holders of the Company's Class A Common Stock are identical to those of the Class AAA, Class B, and Class C Common Stock described above.

***Liquidation Rights***

The liquidation rights of holders of the Company's Class A Common Stock are identical to those of the Class AAA, Class B, and Class C Common Stock described above.

**Series Seed Preferred Stock**

***Voting Rights***

On any matter presented to the stockholders of the Company for their action or consideration at any meeting of stockholders of the Company (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock will be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of the Certificate of Incorporation , holders of Preferred Stock will vote together with the holders of Common Stock as a single class.

***Protective Provisions***

The Company will not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the written consent or affirmative vote of the holders of at least a majority of the then outstanding shares of Preferred Stock and Class A Common Stock, voting together as a single class on an as-converted to Common Stock basis, given in writing or by vote at a meeting, consenting or voting together as a class:

● purchase or redeem or pay or declare any dividend or make any distribution on, on any capital stock, other than (i) dividends or other distributions payable on the Common Stock solely in the form of additional shares of Common Stock, (ii) redemptions of or dividends or distributions on the Series Seed Preferred Stock as expressly provided herein and (iii) stock repurchased from former employees, officers, directors, consultants or other persons who performed services for the Company or any subsidiary in connection with the cessation of their employment/services at the lower of the original purchase price or the then current fair market value thereof, unless otherwise approved by the Board of Directors;

● create or hold capital stock in any subsidiary that is not a wholly-owned subsidiary (either directly or through one or more other subsidiaries); or

● permit any subsidiary of the Company to do any of the foregoing.

Additionally, at any time when at least 70,596,360 shares of Preferred Stock are outstanding (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Preferred Stock), the Company will not, either directly or indirectly by amendment, merger, consolidation or otherwise, without (in addition to any other vote required by law or the Certificate of Incorporation) the written consent or affirmative vote of the holders of at least a majority of the then outstanding shares of Preferred Stock, voting together as a single class on an as-converted to Common Stock basis, given in writing or by vote at a meeting, consenting or voting (as the case may be) separately as a class, amend, alter or repeal any provision of the Certificate of Incorporation in a manner that substantially and disproportionately adversely affects the powers, preferences or special rights of the Preferred Stock (in addition to any other vote required by law or the Certificate of Incorporation) (it being understood that any increase in the authorized number of shares of Series Seed Preferred Stock, any authorization of any additional class or series of capital stock or any Deemed Liquidation Event will not constitute such an adverse effect).

Further, holders of Preferred Stock are entitled to certain anti-dilution rights, whereby the holders of Preferred Stock will be entitled to convert their shares of Preferred Stock into a greater number of shares of Common Stock if the Company makes certain dilutive issuances of additional shares of Common Stock of the Company. However, on May 7, 2024, holders of Preferred Stock agreed to waive these anti-dilution rights with respect to the sale or issuance of shares of the Company's capital stock in this Offering. See the "Conversion Rights" discussion further below for additional details.

***Dividend Rights***

The Company will not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company (other than dividends on shares of Common Stock payable in shares of Common Stock) unless (in addition to the obtaining of any consents required elsewhere in the Certificate of Incorporation) the holders of the Series Seed Preferred Stock then outstanding will first receive, or simultaneously receive, a dividend on each outstanding share of Series Seed Preferred Stock in an amount at least equal to (i) in the case of a dividend on Common Stock or any class or series that is convertible into Common Stock, that dividend per share of Series Seed Preferred Stock as would equal the product of (A) the dividend payable on each share of such class or series determined, if applicable, as if all shares of such class or series had been converted into Common Stock and (B) the number of shares of Common Stock issuable upon conversion of a share of Series Seed Preferred Stock, in each case calculated on the record date for determination of holders entitled to receive such dividend or (ii) in the case of a dividend on any class or series that is not convertible into Common Stock, at a rate per share of Series Seed Preferred Stock determined by (A) dividing the amount of the dividend payable on each share of such class or series of capital stock by the original issuance price of such class or series of capital stock (subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to such class or series) and (B) multiplying such fraction by an amount equal to the Series Seed Original Issue Price.

***Liquidation Rights***

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or Deemed Liquidation Event (as defined above), the holders of shares of Series Seed Preferred Stock then outstanding will be entitled to be paid out of the assets of the Company available for distribution to its stockholders before any payment will be made to the holders of Common Stock by reason of their ownership thereof, an amount per share equal to the greater of (i) the Series Seed Original Issue Price (which is currently is $0.01345679), plus any dividends declared but unpaid thereon, or (ii) such amount per share as would have been payable had all shares of Series Seed Preferred Stock been converted into Common Stock immediately prior to such liquidation, dissolution, winding up or Deemed Liquidation Event. If upon any such liquidation, dissolution or winding up of the Company or Deemed Liquidation Event, the assets of the Company available for distribution to its stockholders will be insufficient to pay the holders of shares of Series Seed Preferred Stock, the holders of shares of Series Seed Preferred Stock will share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

***Conversion Rights***

Each share of Preferred Stock is convertible at the option of the holder, into shares of Class A Common Stock or shares of Class AAA Common Stock by dividing the "Original Issue Price" by the "Conversion Price", each of which were initially set at $0.01345679 per share. The Conversion Price is subject to adjustment in certain circumstances, including, but not limited to (i) the Company making certain issuances of shares of Common Stock for less per share than the Conversion Price then in effect; (ii) the Company effecting a stock split; and/or (iii) distributions or dividends paid in Common Stock to holders of the Company's Common Stock. However, on May 7, 2024, holders of a majority of the outstanding shares of Preferred Stock agreed to waive any rights with respect to adjustment to the Conversion Price as a result of the sale or issuance of shares of the Company's capital stock in this Offering.

Additionally, upon the sale by the Company of shares of its Common Stock in a firm-commitment underwritten public offering at a price per share equal to or greater than three times the Original Issue Price, or upon the vote of the majority of the holders of Preferred Stock of the Company and certain other key holders of the Company's equity securities, all shares of Preferred Stock must convert into shares of Common Stock.

The above descriptions of the terms of our authorized capital stock are only summaries, and are qualified by reference to the Company's Amended and Restated Certificate of Incorporation, as amended, is filed as an exhibit to the Offering statement of which this Offering circular forms a part.

**Warrants**

The Company has eleven outstanding warrants with substantially the same terms exercisable for a total of 5,055,208 shares of Class AAA Common Stock at a weighted exercise price of $0.017 per share. In each case, the exercise price of the warrants is subject to adjustment in the occurrence of certain events, including upon the Company making payments of dividends, stock splits of the Class AAA Common Stock, and certain business combination transactions. Each warrant has an exercise period of 10 years from the date of issuance, and will automatically terminate upon the expiration of this period. These outstanding warrants will expire in 2032 to 2025.

A form of warrant, which has substantially the same terms of each of the outstanding warrants described above, has been filed as exhibit 3.5 to the offering statement of which this Offering Circular forms a part.

Additionally, the Company has three outstanding warrants held by the lender that provided financing in the Company's acquisitions. The initial warrant was provided in conjunction with the financing of the Applock PRO asset acquisition. This warrant is exercisable for 6,000,000 shares of the Company's Class AAA Common Stock. The warrant may be exercised at a price of $0.125 per share and expires on January 24, 2032. A copy of this warrant is filed as exhibit 3.6 to the offering statement of which this Offering Circular forms a part.

A second warrant was provided in conjunction with the financing of the NGL acquisition. The warrant is exercisable for 2,800,000 shares of the Company's Class AAA Common Stock. The warrant may be exercised at a price of $0.25 per share and expires on December 23, 2032. A copy of this warrant is filed as exhibit XX to the offering statement of which this Offering Circular forms a part.

A third warrant was provided in conjunction with the financing of the QR Code asset acquisition. The warrant is exercisable for 1,200,000 shares of the Company's Class AAA Common Stock. The warrant may be exercised at a price of $0.25 per share and expires on April 30, 2033. A copy of this warrant is filed as exhibit XX to the offering statement of which this Offering Circular forms a part.

**Simple Agreement for Future Tokens (SAFTs)**

As described in the "Our Business" of this Offering Circular, due to a delay in delivering $CRNC Tokens (now, EARN'M Tokens) to investors that purchased these tokens in the Company's 2018 side-by-side Regulation D and Regulation S offering of $CRNC (EARN'M) tokens (conducted through CGL), the Company issued Simple Agreements for Future Tokens (SAFTs) to those investors, totaling approximately $26 million in value (equal to the proceeds from the $CRNC (EARN'M) token offering). The form of SAFT entered into with these investors dictates that upon launch of the $CRNC Network, the Company will issue a number of $CRNC (EARN'M) tokens based on when the SAFT Purchaser ("Purchaser") is willing to take receipt of the $CRNC (EARN'M) tokens. This formula, also called a "Bonus Arrangement" in the SAFT, is an arrangement whereby the Company agrees to issue a larger allocation of $CRNC tokens to the Purchaser if the Purchaser agrees to accept a deferred delivery or distribution of the $CRNC (EARN'M) tokens following the effective date of the SAFT. The longer the Purchaser is willing to delay receipt or distribution of $CRNC tokens after the Effective Date of the SAFT, the larger the Bonus (in the form of $CRNC (EARN'M) tokens) the Purchaser will receive from the Company. For example, if a Purchaser agrees to a delayed delivery or distribution of: (a) six (6) months following the Effective Date, the Purchaser will receive a Bonus of 55%, (b) three (3) months following the Effective Date, the Purchaser will receive a Bonus of 40% and (c) if there is no delayed delivery or distribution following the Effective Date, the Purchaser will receive a Bonus of 25%.

Between August 2021 and October 2021, all $CRNC (EARN'M) tokens due to be issued under the SAFTs (including any additional "Bonus" tokens) were issued to the Purchasers. As such, there are no longer any $CRNC (EARN'M) tokens issuable pursuant to the SAFTs.

On account of the launch of the EARN'M Network (f/k/a $CRNC Network) being delayed longer than expected, the Company elected to pay the SAFT holders a royalty of $1,900,000 based on the Company's financial performance in 2021. The Company proactively provided this royalty to offset any liability that may result from delay or an unforeseen failure to successfully launch the EARN'M Network. Additionally, around the same time as paying this royalty, the Company and the SAFE holders agreed to assign the SAFTs to CGL and as such, the Company has no further obligations to the SAFT holders, and would not face any direct liability if the EARN'M Network failed to launch. There is no also specific liability stated in the SAFT for CGL in the event the EARN'M Network is not launched (in fact, the SAFT requires each SAFT holder to expressly assume the risk that the EARN'M Network may never launch). Nonetheless, it is possible that SAFT holders could pursue litigation against CGL and/or the Company if the EARN'M Network is never launched - although it is not possible for the Company to predict what causes of action may be brought, or what the Company's or CGL's liability may be in such an event.

As described in the "Our Business" of this Offering Circular, the EARNM Foundation was established on or around March 18, 2025. Since that date, the EARNM Foundation, not the Company, has had full control over the governance and all other aspects of the future direction of the EARN'M ecosystem and the $EARNM - and consequently, all obligations due from the Company to the Purchasers under the SAFTs ceased.

A copy of the form of SAFT entered into with the Purchasers described above if filed as exhibit 3.4 to the offering statement of which this Offering Circular forms a part.

**Provisions of Note in Our Amended and Restated Certificate of Incorporation**

Pursuant to our Amended and Restated Certificate of Incorporation, as amended, to the fullest extent permitted by law, the sole and exclusive judicial forum for the following actions will be the Court of Chancery of the State of Delaware:

(1) Any derivative action or proceeding brought on behalf of the Company;

(2) Any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company's stockholders;

(3) Any action asserting a claim against the Company arising pursuant to any provision of the Delaware General Company Law or the Company's Amended and Restated Certificate of Incorporation, as amended, or Bylaws;

(4) Any action to interpret, apply, enforce or determine the validity of the Company's Amended and Restated Certificate of Incorporation, as amended or the Bylaws; or

(5) Any action asserting a claim against the Company governed by the internal affairs doctrine.

Although we believe the provision benefits us by providing increased consistency in the application of Delaware law in the types of lawsuits to which it applies and in limiting our litigation costs, the forum selection provision may limit investors' ability to bring claims in judicial forums that they find favorable to such disputes and may discourage lawsuits with respect to such claims. The Company has adopted the provision to limit the time and expense incurred by its management to challenge any such claims. As a company with a small management team, this provision allows its officers to not lose a significant amount of time travelling to any particular forum so they may continue to focus on operations of the Company.

**Investors' Rights Agreement**

On February 25, 2021, the Company entered into an Investors' Rights Agreement with certain investors in the Company's Series Seed Preferred Stock and Class A Common Stock (each, an "Investor"), which was subsequently amended on May 7 2024, the material terms of which are summarized below.

*Registration Rights*

The Company agreed to not grant any registration rights to the holders of any class or series of stock of the Company, other than to the Investors, unless the Investors are simultaneously granted registration rights that are comparable to those granted to the holders of such other class or series of stock of the Company (with appropriate adjustments for economic terms). Upon the granting of registration rights to the Investors in connection with a bona fide material transaction by the Company with the principal purpose of raising capital from investors buying stock of the Company, these registration rights will terminate.

*Market Stand-Off*

The Investors agreed not to engage in certain transactions (like selling or transferring shares) without the managing underwriter's consent for a period of time after the commencement of the Company's first underwritten public offering of its Common Stock under the Securities Act (an "IPO") or an offering pursuant to an alternative registration of the Company's equities securities under the Securities Act. This period can last up to 180 days for an IPO and up to 90 days for other registrations of the Company's equity securities. These restrictions will apply to the Investors only if similar restrictions apply to all officers and directors of the Company. The underwriters have enforcement rights for these provisions

*Rights to Future Stock Issuances (Right of First Offer)*

If the Company proposes to offer or sell any equity securities of the Company (including rights, options, or warrants to purchase such equity securities, or securities convertible or exchangeable into such equity securities), it must first offer them to each "Major Investor". "Major Investor" means any Investor that, individually or together with such Investor's affiliates, holds at least 137,615 shares of Series Seed Preferred Stock and/or Common Stock (as adjusted for any stock split, stock dividend, combination, or other recapitalization or reclassification) or any other Investor that the Company has agreed in writing is a "Major Investor." Major Investors can elect to purchase such securities proportional to their existing ownership. This right does apply to shares issued in an IPO. These rights terminate immediately before an IPO of the Company, or when the Company becomes subject to Exchange Act reporting requirements.

However, on May 7, 2024, the Investors agreed to waive these pre-emptive rights with respect to the sale or issuance of shares of the Company's capital stock in this Offering.

The foregoing description of the Investors' Rights Agreement is intended to be a summary, and is qualified by reference to the full text of the Investors' Rights Agreement, as amended, filed as exhibit 3.2 the offering statement of which this Offering Circular forms a part.

**Series Seed Preferred Voting Agreement**

Also on February 25, 2021, the Company entered into a Voting Agreement with the same Investors described above, as well all other Series Seed Preferred Stockholders of the Company (collectively, the "Stockholders"), which was subsequently amended on May 7 2024, the material terms of which are summarized below.

*Board of Directors Votes*

Each Stockholder agreed to vote their shares to ensure that the size of the board of directors of the Company remains at three (3) directors. Additionally, subject to certain conditions, each Stockholder agreed to vote to elect (and re-elect) certain individuals designated by certain parties to the Company's board of directors, as follows:

*Founder Member Designee*. For so long as Dan Novaes owns at least 131,280,386 shares of Class A Common Stock of the Company (subject to appropriate adjustment for any stock splits, stock dividends, combinations, recapitalizations and the like), the Stockholders must vote to elect one (1) individual designated by Mr. Novaes be elected to the Board.

*Garland Designee*. For so long as Garland Fund I, LLC ("Garland") owns at least 83,057,886 shares of Series Seed Preferred Stock of the Company (subject to appropriate adjustment for any stock splits, stock dividends, combinations, recapitalizations and the like), the Stockholders must vote to elect one (1) individual designated by Garland to the Board.

*Independent Designee*. For so long as the Dan Novaes owns at least 262,560,771 shares of Class A Common Stock of the Company (subject to appropriate adjustment for any stock splits, stock dividends, combinations, recapitalizations and the like), the Stockholders must vote to elect one individual to the Board who is an Independent Director and (i) is mutually designated by Mr. Novaes and Garland or (ii) if Mr. Novaes and Garland cannot mutually consent to such designation within 10 days of a vacancy in such seat, such individual may be designated by the holders of a majority of the voting stock of the Company (other than shares of Common Stock issued upon the exercise of options), voting together as a single class on an as-converted basis.

*Vote to Increase Authorized Common Stock.*

Each Stockholder agreed to vote to increase the number of authorized shares of Common Stock from time to time to ensure that there will be sufficient shares of Common Stock available for conversion of all of the shares of Series Seed Preferred Stock outstanding at any given time.

*Drag Along*

The Stockholders also agreed that, in the event that (i) the holders of at least a majority of the shares of Common Stock that is then outstanding (other than shares of Common Stock issued upon the exercise of options) and the shares of Common Stock then issuable upon conversion of the outstanding shares of Series A Preferred Stock, Series A-1 Preferred Stock, Series A-2 Preferred Stock and Series B Preferred Stock, voting together as a single class on an as-converted basis (the "Selling Investors"); and (ii) the Board of Directors approve a sale of securities representing more than 50% of the voting power of the Company, and such a sale requires stockholder approval, the Stockholders vote to approve such transaction, and will sell shares of the Company's stock as required to complete the transaction.

The foregoing description of the Voting Agreement is intended to be a summary, and is qualified by reference to the full text of the Voting Agreement, as amended, filed as exhibit 5 the offering statement of which this Offering Circular forms a part.

**Right of First Refusal and Co-Sale Agreement**

Also on February 25, 2021, the Company entered into a Right of First Refusal and Co-Sale Agreement with the same Investors described above, as well all other Series Seed Preferred Stockholders of the Company (collectively, the "Stockholders"), which was subsequently amended on May 7 2024, pursuant to which the Stockholders granted the Company a right of first refusal to purchase all or any portion of shares of the Company's capital stock that a Stockholder proposes to sell or transfer, at the same price and on the same terms and conditions as those offered to the proposed transferee. Additionally, certain "Major Investors" (as defined in the agreement) have a secondary right of first refusal, whereby if the Company declines to purchase the shares, the Major Investors will have the right to purchase those shares before the proposed transferee.

Additionally, if neither the Company nor the Major Investors exercise their right of first refusal, and the Stockholder decides to proceed with the sale or transfer of his or her capital stock to the proposed transferee, each respective Major Investor may elect to exercise a right of co-sale, and participate on a pro rata basis in the proposed Stockholder transfer on the same terms and conditions. The amount of shares that the Major Investor may include will be equal to the product obtained by multiplying (i) the aggregate number of shares of Common Stock proposed to be transferred by (ii) a fraction, the numerator of which is the number of shares of capital stock owned by such Major Investor immediately before consummation of the proposed transfer and the denominator of which is the total number of shares of capital stock owned, in the aggregate, by all participating investors immediately prior to the consummation of the transfer, plus the number of shares of capital stock held by the selling Stockholder.

Finally, each Stockholder agreed to a lock-up whereby, without the prior written consent of the managing underwriter, during the period commencing on the date of the final prospectus relating to the Company's initial public offering (the "IPO") and ending on the date specified by the Company and the managing underwriter (such period not to exceed 180 days), or such other period as may be requested by the Company or an underwriter to accommodate regulatory restrictions, the Stockholder will not sell, otherwise transfer or dispose of, directly or indirectly, any shares of capital stock held immediately prior to the effectiveness of the registration statement for the IPO.

However, on May 7, 2024, the Stockholders agreed to waive foregoing rights of first refusal and co-sale and related with respect to the sale and issuance of capital stock of the Company sold or issued by the Company in this Offering.

The foregoing description of the Right of First Refusal and Co-Sale Agreement is intended to be a summary, and is qualified by reference to the full text of the Right of First Refusal and Co-Sale Agreement, as amended, filed as exhibit 3.3 the offering statement of which this Offering Circular forms a part.

**Lock-Up Provision for Investors in this Offering**

Investors in this Offering will be subject to the terms of a lock-up provision included in the subscription agreement. Under the terms of the lock-up provision, if the Company consummates a firm-commitment underwritten public offering or "Deemed Liquidation Event" (as defined above) that results in the Company's securities being listed on a national securities exchange, investors agree that they will not transfer their shares for a period of at least 12 months, unless the lock-up period is waived by the Company. The result of this provision is that investors would be contractually restricted from selling or trading their shares for at least 12 months should the Company undertake an event that results in the Company being traded on a national securities exchange.

The lock-up provision does allow for limited transfers in certain situations, such as a gift to immediate family or trust for the benefit of the investor or immediate family, transfer upon death, gift to charity, or as part of a divorce.

**PLAN OF DISTRIBUTION AND SELLING SECURITY HOLDERS**

**Plan of Distribution**

The Company is directly offering up to 66,095,230 shares of Class AAA Common Stock, plus up to 17,772,312 additional shares of Class AAA Common Stock for Bonus Shares. 22,766,332 shares of Class AAA Common Stock are being offered by selling securityholders of the Company. The issuance of Bonus Shares for no cash consideration will occur on either invest.modemobile.com or via the Company's EarnOS app and will not be distributed by DealMaker Securities.

The Company has engaged DealMaker Securities, LLC as the broker-dealer of record to assist in the offering of its securities. DealMaker Securities is under no obligation to purchase any securities or arrange for the sale of any specific number or dollar amount of securities. The issuance of Bonus Shares for no cash consideration will occur on either invest.modemobile.com or via the Company's EarnOS app and will not be distributed by DealMaker Securities. Although this role differs from that of a traditional underwriter in that the Broker does not purchase any securities from the Company with a view to sell such for the Company as part of the distribution of the security, the Broker is a statutory underwriter under Section 2(a)(11) of the Securities Act of 1933.

**Commissions and Discounts**

***DealMaker Securities***

The following table shows the total discounts and commissions payable to DealMaker Securities in connection with this Offering**:**

---

| | | |
|:---|:---|:---|
|  | Per Share | Maximum |
| Public Offering Price | $0.5000 | $44430781 |
| Investor Fee <sup>(1)</sup> | $0.0100 | $888616 |
| Commissions <sup>(2)</sup> | $0.0153 | $1359582 |
| Proceeds, before expenses, to us (or to selling stockholders, as applicable) | $0.4947 | $43959815 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Investors
 will be responsible for a transaction fee equal to two percent (2.0%) of the purchase price for shares of Class AAA Common Stock
 paid at the time of investment (the "Investor Fee"). DealMaker will receive commissions on the Investor Fee. If fully
 subscribed, this would represent a maximum commission of $26,658.

(2) Represents
 the 3.0% commissions payable to DealMaker on proceeds raised in this offering.

**Bonus Shares for Certain Investors (Up to 20%)**

Certain investors in this Offering are eligible to receive bonus shares of Class AAA Common Stock, which effectively gives them a discount on their investment. Those investors will receive, as part of their investment, additional shares for their shares purchased ("Bonus Shares"). The amount of Bonus Shares investors in this offering are eligible to receive and the criteria for receiving such Bonus Shares is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) *"Reserved" Shares.* Prior to the qualification by the SEC of the Company's offering, the Company will offer investors the opportunity
 to "reserve" shares through a reservation process on the DealMaker subscription processing platform. On our campaign
 page, the investor may select the "Reserve My Shares" button, which will bring the investor to a new page where the investor
 will indicate the amount of shares (and amount of money) he or she would like to reserve in the Company. The reservation is finalized
 by clicking the "Reserve My Shares" button. Investors who reserve shares in this manner will receive an additional 5%
 Bonus Shares on their actual investment once this offering is qualified by the SEC (rounded down to the nearest whole share). For
 example, if an investor reserves 4,000 shares, and subsequently confirms this reservation and purchases the 4,000 shares, such investor
 will receive an additional 200 shares of the Company's Class AAA Common Stock, for a total of 4,200 shares. The 5% is stackable
 with the volume bonus tiers outlined in section (v) "Reserving" shares is simply an indication of interest. There is
 no binding commitment for investors that reserve shares in this manner to ultimately invest and purchase the shares reserved of the
 Company, or to purchase any shares of the Company whatsoever.

(ii) *Existing Mode Mobile Investors – Volume Bonus.* Individuals or entities that are existing investors of the Company prior to the qualification
 of this Offering Statement will be eligible to receive Bonus Shares based on the amount of their investment in this Offering. The
 below table indicates the % of Bonus Shares investors will be eligible to receive based on their investment amount:

---

| | |
|:---|:---|
| Investment Range | Bonus Shares |
| $1,000.00+ | 5% |
| $9,950.00+ | 10% |
| $24,950.00+ | 15% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(iii) *New Investors – Volume Bonus*. Investors that have not previously invested in the Company will be eligible to receive the following
 Bonus Shares based on the amount of their investment in this offering. The below table indicates the % of Bonus Shares such investors
 will be eligible to receive based on their investment amount:

---

| | |
|:---|:---|
| Investment Range | Bonus Shares |
| $1,950.00+ | 5% |
| $4,950.00+ | 10% |
| $9,950.00+ | 15% |
| $24,950.00+ | 20% |

---

&nbsp;&nbsp;&nbsp;&nbsp;(iv) *Webinar Attendees.* Individuals or entities that attend one of the Company's pre-announced investment webinars will be eligible
 to receive 5% Bonus Shares if they invest in the Offering. The investor is eligible if they sign up for the webinar and invest with
 the same email address and if attend the webinar for more than thirty minutes. The webinars will take place every two weeks (14 days)
 while this Offering is open and taking investments.

(v) Mode
 Mobile and NGL Customers. Individuals who are customers of the NGL (Not Gonna Lie) social media app or certain Mode Mobile products
 (Trimbox, Cleaner, Gallery, Mode Media, Applock) prior to the qualification of this offering will be eligible to receive an additional
 20% Bonus Shares on the amount of shares they purchase for cash in this Offering.

Certain investors in this offering are eligible to receive Bonus Shares of Class AAA Common Stock without any cash consideration. The amount of Bonus Shares investors in this offering are eligible to receive and the criteria for receiving such Bonus Shares is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) *Mode Users – Point Redemption.* The Company will allow Mode Mobile users based in the United States to redeem their Mode Mobile
 points for shares of Class AAA Common Stock. The point redemption ratio will be as follows:

---

| | | |
|:---|:---|:---|
| **Mode Mobile Points Converted** | **Bonus Shares ($ Value)** | **Bonus Shares (Quantity)** |
| 1,500 points | 6 | $12.00 |
| 4,500 points | 20 | $40.00 |
| 8,950 points | 50 | $100.00 |
| 16,950 points | 100 | $200.00 |
| 29,950 points | 200 | $400.00 |
| 99,950 points | 1000 | $2000.00 |
| 169,950 points | 2000 | $4000.00 |

---

---

| | |
|:---|:---|
|  | In addition to the above Bonus Shares, every time a Mode User redeems points for Bonus Shares, they will earn an additional $5.00 or 10 shares of Class AAA Common Stock (subject to the total Bonus Share limits described below). As of December 31, 2025, there were a total of 29,939,812,854 Mode Mobile points outstanding and available to Mode Mobile users for redemption. Based on this number and the highest point-to-bonus share redemption rate of 169,950 points for 2,000 Bonus Shares, Mode Mobile users, in aggregate, would have the ability to convert their outstanding points for up to 352,336,720 Bonus Shares. As a part of this Offering, the Company will be able to issue a maximum of 17,772,312 Bonus Shares. Because of this restriction, the Company will be placing internal limits in place so that it does not issue more than the maximum allowable number of Bonus Shares. |
| (ii) | *New Mode Mobile Users.* Every individual will receive $15.00 or 30 shares of Class AAA Common Stock when they sign up for Mode Mobile as a user. |
| (iii) | *Mode Earn Club Members.* Individuals who sign up for the Company's Mode Earn Club and complete the onboarding process will earn $40.00 or 80 Bonus Shares of Class AAA Common Stock. |
| (iv) | *Mode Investor Club Members.* Individuals who sign up for the Company's Mode Investor Club and complete the onboarding process will earn $25.00 or 50 Bonus Shares of Class AAA Common Stock. |
| (v) | *Mode Coupon Code*. Individuals or entities that utilize any of the below promotion codes when investing will be eligible to earn 10% Bonus Shares of Class AAA Common Stock on their investment. The promotion code will be marketed to prospective investors via certain advertising channels all investors will be eligible to use this promotion code. The eligible codes are as follows: MODE, EARN, BON5, MOBL, ADD5, GAIN, LIVE, MAIL, VIP5, PLUS, SMS5. |

---

**Bonus Share Limits**

Investors in this Offering are eligible to receive any of the above Bonus Shares in any combination. However, for the categories of Bonus Shares that may only be received if an investor purchases shares with cash, the maximum amount of Bonus Shares that any one investor may receive is 20% of their cash investment amount. This means that investors can only ever receive, cumulatively among cash investment Bonus Shares (i.e. categories excluding non-payment categories), Bonus Shares equal to the number of shares they have purchased (i.e. double the amount of shares purchased for cash).

Additional limits are being placed on the categories of Bonus Shares that do not require any cash consideration. If an individual has not purchased any shares in the Offering, the individual may only receive only up to 12,000 shares of Class AAA Common Stock for no cash consideration. For clarity, these shares will not count towards the 20% cash investment Bonus Shares limit described above.

Finally, the maximum number of Bonus Shares that will be issued in this Offering is 17,772,312, and under no circumstances will the Company issue more than 17,772,312 Bonus Shares. As such, it is possible that, prior to the Company raising the maximum offering amount in this offering of $44,430,781 (not including the investor fee), it will have issued all 17,772,312 Bonus Shares. At such time as all 17,772,312 Bonus Shares have been issued, any new investors in this offering that meet the eligibility requirements to receive Bonus Shares will not receive them. Similarly, individuals will not be permitted to redeem Mode Mobile points for Bonus Shares after such time.

The issuance of Bonus Shares for no cash consideration will occur on either invest.modemobile.com or via the Company's EarnOS app. All investors who receive Bonus Shares for no cash consideration will be required to sign a Subscription Agreement, a form of which is included as Exhibit 4.1 to the Offering Statement of which this Offering Circular forms a part.

DealMaker Securities has not been engaged to assist in the distribution of the Bonus Shares, and will not receive any compensation related to the Bonus Shares.

**Non-Equity Perks**

The Company will grant investors the following non-equity perks based on how much they invest:

---

| | | | |
|:---|:---|:---|:---|
| **Investment<br> Amount** | **Tier** | **Cost to Company** | **Approximate**<br>**Market Value** |
| $1,000+ | Bronze Savings Seminar | $50 | Up to $500 |
| $2,500+ | Silver Savings Seminar | $50 | Up to $1000 |
| $4,950+ | Gold Savings Seminar | $50 | Up To $2,500 |
| $9,950+ | Sapphire Savings Seminar | $50 | Up to $5,000 |
| $15,000+ | Platinum Savings Seminar | $50 | Up To $10,000 |

---

The seminars will cover a number of topics we believe our investors and customers would find beneficial. Topics would include how attendees can get access to discounted products and services, cashback offers, and financial education content. For the cashback offers, the Company enters into marketing arrangements by which the Company is paid by the other companies when a customer accepts a cashback offer. These relationships are disclosed to the customers during the seminar.

The following includes additional details of each seminar level:

---

| | | | |
|:---|:---|:---|:---|
| **Tier** | **Session Length** | **Educational Content** | **Offers** |
| Bronze Savings Seminar | 15 minutes | Household Savings | Discounted Products |
| Silver Savings Seminar | 30 minutes | Household Savings | Discounted Products |
| Gold Savings Seminar | 45 minutes | Retirement Planning | Cashback Offers |
| Sapphire Savings Seminar | 60 minutes | Retirement Planning | Cashback Offers |
| Platinum Savings Seminar | 75 minutes | Retirement Planning | Cashback Offers |

---

Each seminar will be pre-recorded and will be led by the Company's CEO, Dan Novaes and may include special guests from time to time. Investors will be emailed access links to the seminars within 1 month of their investment being confirmed by the Company. The above perks are non-transferable. The Company reserves the right to change the content of each seminar if management believes it is in the best interests of the Company.

The Market Value does not represent the cost to the Company and instead represents what someone may expect to pay for similar information and content if obtained in the open market.

Non-equity perks are cumulative, meaning that if someone invests $15,000 or more in the Offering, they will earn all of the above perks.

Additionally, each investment in this offering over $1,500 will be eligible to receive a lifetime subscription to the Mode Earn Club for 6 individuals of their choosing. The value of this perk is approximately $250.

DealMaker Securities, LLC is a broker-dealer registered with the Commission and a member of FINRA that has been engaged to provide administrative and compliance related functions in connection with this offering, and as broker-dealer of record, but not for underwriting or placement agent services. Affiliates of DealMaker have also been engaged to provide technology services and marketing advisory services, specifically Novation Solutions Inc. O/A DealMaker and DealMaker Reach, LLC.

The aggregate compensation payable to DealMaker and its affiliates are described below.

---

| | |
|:---|:---|
| **a.)** | **Administrative and Compliance Related Functions** |

---

DealMaker will provide administrative and compliance related functions in connection with this offering, including

● Reviewing investor information, including identity verification, performing Anti-Money Laundering ("AML") and other compliance background checks, and providing the Company with information on an investor in order for the Company to determine whether to accept such investor into the offering;

● If necessary, discussions with us regarding additional information or clarification on a Company-invited investor;

● Coordinating with third party agents and vendors in connection with performance of services;

● Reviewing each investor's subscription agreement to confirm such investor's participation in the offering and provide a recommendation to us whether or not to accept the subscription agreement for the investor's participation;

● Contacting and/or notifying us, if needed, to gather additional information or clarification on an investor;

● Providing a dedicated account manager;

● Providing ongoing advice to us on compliance of marketing material and other communications with the public, including with respect to applicable legal standards and requirements;

● Reviewing and performing due diligence on the Company and the Company's management and principals and consulting with the Company regarding same;

● Consulting with the Company on best business practices regarding this raise in light of current market conditions and prior self-directed capital raises;

● Providing white labelled platform customization to capture investor acquisition through DealMaker's platform's analytic and communication tools

● Consulting with the Company on question customization for investor questionnaire;

● Consulting with the Company on selection of webhosting services;

● Consulting with the Company on completing template for the offering campaign page;

● Advising us on compliance of marketing materials and other communications with the public with applicable legal standards and requirements;

● Providing advice to the Company on preparation and completion of this Offering Circular;

● Advising the Company on how to configure our website for the offering working with prospective investors;

● Assisting the Company in the preparation of state, Commission and FINRA filings related to the Offering; and

● Working with Company personnel and counsel in providing information to the extent necessary.

Such services will not include providing any investment advice or any investment recommendations to any investor.

For these services, we have agreed to pay DealMaker a cash commission equal to five percent (3.0%) of the amount raised in the Offering not to exceed $1,359,582, if fully subscribed (which includes commissions on the Investor Fee charged to investors that invest via DealMaker).

---

| | |
|:---|:---|
| **b.)** | **Technology Services** |

---

The Company has also engaged Novation Solutions Inc. O/A DealMaker, an affiliate of DealMaker Securities to create and maintain the online subscription processing platform for the Offering.

After the qualification by the Commission of the Offering Statement of which this Offering Circular is a part, this Offering will be conducted using the online subscription processing platform of DealMaker through our website at invest.modemobile.com, whereby investors will receive, review, execute and deliver subscription agreements electronically as well as make payment of the purchase price through a third party processor by ACH debit transfer or wire transfer or credit card or USDC stablecoin to an account we designate. DealMaker is providing the back-end technology to process investments on our invest.modemobile.com website through its integrated payment solutions. There is no escrow established for this offering. We will hold closings upon the receipt of investors' subscriptions and our acceptance of such subscriptions.

Investors who are eligible to receive Bonus Shares through conversion of Mode Mobile points will be able to initiate this transaction via the Company's EarnOS app. Once the conversion is approved by the Company via the app, the investor will then be directed to DealMaker to sign their subscription agreement and claim their shares. A form of the Subscription Agreement is included as Exhibit 4.1 to the Offering Statement of which this Offering Circular forms a part.

There are no fees charged by DealMaker for these services.

---

| | |
|:---|:---|
| **c.)** | **Marketing and Advisory Services** |

---

The Company has also engaged DealMaker Reach, LLC ("Reach"), an affiliate of Broker, for certain supplemental services on a case-by-case basis. DealMaker will consult and advise on the design and messaging on creative assets, website design and implementation, paid media and email campaigns, advise on optimizing the Company's campaign page to track investor progress, and advise on strategic planning, implementation, and execution of Company's capital raise marketing budget.

For supplemental marketing services, Reach will receive as compensation a maximum of $1,125,000 which will be requested on a case-by-case basis as the Company requests for the placement of marketing advertisements.

The maximum compensation to be paid to Broker and affiliates is $2,484,582 (5.48%) of the Offering proceeds.

**Subscription Procedures – DealMaker Securities**

After the Offering Statement has been qualified by the Commission, the Company will accept tenders of funds to purchase the Common Stock. The Company may close on investments on a "rolling" basis (so not all investors will receive their shares on the same date). Investors may subscribe by tendering funds via wire, credit or debit card, or ACH only or USDC stablecoin only, and checks will not be accepted. Investors will subscribe via the Company's website and investor funds will be processed via DealMaker's integrated payment solutions. Funds will be held in the Company's payment processor account until DealMaker has reviewed the proposed subscription, and the Company has accepted the subscription. Funds released to the Company's bank account will be net funds (investment less payment for processing fees and a holdback equivalent to 5% for 90 days).

In order for an Investor to pay with USDC, they will select the "Stablecoin" option at the payment screen and then press submit. They will then be redirected to the payment processor to connect their crypto wallet in order to process the payment. Once the payment is processed, the investor will then be taken back to the DealMaker checkout page and will receive a payment confirmation.

The Company will be responsible for payment processing fees. Upon each closing, funds tendered by investors will be made available to the Company and the selling stockholders for their use, as applicable.

In order to invest you will be required to subscribe to the offering via the Company's website, invest.modemobile.com, integrating DealMaker's technology and agree to the terms of the offering, Subscription Agreement, and any other relevant exhibit attached thereto.

Any investor that will be receiving Bonus Shares will also be required to subscribe to the offering via the Company's website integrating DealMaker's technology or via a separate electronic document signature technology employed by the Company. All investors that receive Bonus Shares will be required to agree to the terms of the offering, Subscription Agreement, and any other relevant exhibit attached thereto.

Investors will be required to complete a subscription agreement in order to invest. The subscription agreement includes a representation by the investor to the effect that, if the investor is not an "accredited investor" as defined under securities law, the investor is investing an amount that does not exceed the greater of 10% of his or her annual income or 10% of their net worth (excluding the investor's principal residence).

Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. Broker will review all subscription agreements completed by the investor. After Broker has completed its review of a subscription agreement for an investment in the Company, and the Company has elected to accept the investor into the offering, the funds may be released to the Company.

Broker has not investigated the desirability or advisability of investment in the Common Stock, nor approved, endorsed or passed upon the merits of purchasing the Common Stock. Under no circumstances will the Broker recommend the Company's securities or provide investment advice to any prospective investor, or make any securities recommendations to investors. The Broker does not purchase any securities from the Company with a view to sell those for the Company as part of the distribution of the security. Broker is not distributing any Offering Circulars or making any oral representations concerning this Offering Circular or this offering. Based upon Broker's anticipated limited role in this offering, it has not and will not conduct extensive due diligence of this offering and no investor should rely on the involvement of Broker in this offering as any basis for a belief that it has done extensive due diligence. Broker does not expressly or impliedly affirm the completeness or accuracy of the Offering Statement and/or Offering Circular presented to investors by the Company. All inquiries regarding this offering should be made directly to the Company.

***Investor Fee***

Investors that invest via DealMaker will be responsible for a 2.0% transaction fee applicable to the purchase amount paid by investors at the time of investment, which amounts to $20.00 for the minimum investment amount (the "Investor Fee"). Commissions are charged on the Investor Fee. This fee is not considered part of the cost basis of the subscribed Securities and will be remitted directly to the Company. All investments will have a maximum Investor Fee of $200.00, which represents the fee for a $10,000 investment.

**Selling Securityholders**

The selling shareholders set forth below will sell up to a maximum of 22,766,332 shares of Class AAA Common Stock. The selling shareholders have already sold the maximum number of shares they may sell in the offering, and no additional sales by selling securityholders will be made.

The following table sets forth the names of the selling shareholders, the number of shares of capital stock (on an as-converted basis to Common Stock basis) beneficially owned prior to this offering, the number of shares being offered in this offering and the number of shares of Capital Stock to be beneficially owned after this offering, assuming that all of the selling shareholder shares are sold in the offering.

Subscriptions for the Class AAA Common Stock will be applied between the selling shareholders on a pro rata basis, which means that at each closing in which selling shareholders are participating, a shareholder will be able to sell its "Pro Rata Portion" of the shares that the shareholder is offering (as set forth in the table below) of the number of securities being issued to investors. For example, if after raising $3,000,000 million, the Company holds a closing for $1 million in gross proceeds, the Company will issue shares and receive gross proceeds of $655,376 while each of the selling shareholders will receive their Pro Rata Portion of the remaining $344,624 in gross proceeds and will transfer their shares to investors in this Offering. Selling shareholders will not offer fractional shares and the shares represented by a shareholder's Pro Rata Portion will be determined by rounding down to the nearest whole share. At no point will the selling securityholder shares be greater than 30% of the value of the Class AAA Common Stock issued in this Offering.

The Company's Amended and Restated Certificate Incorporation, as amended, allows for the optional conversion of any outstanding class of capital stock into Class AAA Common Stock at the sole discretion of the shareholder. As a part of this Offering, all shareholders listed in the below table have granted a power of attorney to the Company to convert their stock to Class AAA Common Stock if and when they sell some or all of their stock as a part of this Offering.

Broker received a 3% commission on sales of Class AAA Common Stock of the selling shareholders through DealMaker's platform prior to disbursement to the selling shareholder. The Company will not receive any of the proceeds from the sale of selling shareholder's shares in the Offering.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Selling<br> Securityholder**  | **Class of Stock<br> Owned**  | **Amount of Class<br> AAA Common<br> Stock Owned<br> Prior to<br> Offering (On An As-** | **Amount<br> Offered** | **Amount Owned<br> After Offering<br> (Assuming<br> Sale of All Amount Offered** | **Selling<br> Security<br> Holders Pro<br> Rata Portion (1)** |
| Garland Fund I | Series Seed Preferred | 161000673 | 3882170 | 157118503 | 17.05% |
| ARG Capital (Palchak) | Series Seed Preferred | 4361361 | 105164 | 4256197 | 0.46% |
| Charlie Mires | Series Seed Preferred | 18149281 | 437629 | 17711652 | 1.92% |
| Alan Matthew | Series Seed Preferred | 2309013 | 55677 | 2253336 | 0.24% |
| Dave Hoover | Series Seed Preferred | 2309013 | 55677 | 2253336 | 0.24% |
| Seth Boston | Series Seed Preferred | 4764744 | 114891 | 4649853 | 0.50% |
| Lon Chow | Series Seed Preferred | 897042 | 21630 | 875412 | 0.10% |
| M25 Ventures (Victor Gutwein) | Series Seed Preferred | 3694327 | 89080 | 3605247 | 0.39% |
| Pallasite Ventures (Bissonette) | Series Seed Preferred | 17958834 | 433037 | 17525797 | 1.90% |
| Scott Wald | Series Seed Preferred | 6927039 | 167030 | 6760009 | 0.73% |
| Robert Wald Trust | Series Seed Preferred | 1154507 | 27838 | 1126669 | 0.12% |
| Marin Wald Trust | Series Seed Preferred | 1154507 | 27838 | 1126669 | 0.12% |
| Weiland Street Capital | Series Seed Preferred | 5963840 | 143805 | 5820035 | 0.63% |
| George Colis | Series Seed Preferred | 9236052 | 222707 | 9013345 | 0.98% |
| Irma Wang | Series Seed Preferred | 952884 | 22977 | 929907 | 0.10% |
| Sarah Somers | Series Seed Preferred | 1429326 | 34465 | 1394861 | 0.15% |
| Chris D'Cruz | Series Seed Preferred | 2770784 | 66811 | 2703973 | 0.29% |
| Shu Duan | Series Seed Preferred | 18264690 | 440412 | 17824278 | 1.93% |
| Christopher Deutsch | Series Seed Preferred | 1429488 | 34469 | 1395019 | 0.15% |
| JEL Holdings (Lou) | Series Seed Preferred | 2250018 | 54254 | 2195764 | 0.24% |
| Mohammed Khadir | Series Seed Preferred | 952884 | 22977 | 929907 | 0.10% |
| Merrick Ventures | Series Seed Preferred | 14294070 | 344669 | 13949401 | 1.51 |
| Kiran Panesar | Class A Shares | 103413358 | 2493581 | 100919777 | 10.95% |
| Dan Novaes | Class A Shares | 506010290 | 12201304 | 493808986 | 53.59% |
| Justin Hines | Class B Options | 9496251 | 228981 | 9267270 | 1.01% |
| Kathy DeKam | Class B Options | 12427383 | 299658 | 12127725 | 1.32% |
| Prakash Ramachandran | Class B Options | 9275089 | 223648 | 9051441 | 0.98% |
| Nick McEvily | Class B Options | 49722216 | 119894 | 49602322 | 0.53% |
| Mark Lawrence | Class B Options | 4745206 | 114420 | 4630786 | 0.50% |
| Tim Wickey | Class A Shares | 8079191 | 194812 | 7884379 | 0.86% |
| Dan Hoffer | Class B Options | 7035857 | 84827 | 6951030 | 0.37% |
|  |  | **Total** | **22766332** | **969662886** | **100.00%** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) "Pro
 Rata Portion" represents that portion that a shareholder may sell in the Offering expressed as a percentage where the numerator
 is the amount offered by the shareholder divided by the total number of shares offered by all selling shareholders.

All of the aforementioned selling securityholders will be entering into an irrevocable power of attorney ("POA") with an individual, as attorney-in-fact, in which they will be directing the Company and the attorney-in-fact to take the actions necessary in connection with the Offering and the sale of shares. This includes the conversion of any of the above securities into Class AAA Common Stock and the signature of any required subscription agreements with each purchaser.

**Transfer Agent and Registrar**

Transfer Online, Inc. will serve as transfer agent to maintain shareholder information on a book-entry basis. We will not issue shares in physical or paper form. Instead, our shares will be recorded and maintained on our shareholder register.

**Provisions of Note in Our Subscription Agreement**

***Forum Selection Provision***

***Lock-Up***

As described under the "Securities Being Offered" and "Risk Factors" section of this Offering Circular, the subscription agreement subjects investors in this Offering to a 12 month lock-up in the event of a firm-commitment underwritten public offering or other Deemed Liquidation Event resulting in the Company's shares being traded on a national securities exchange.

**ONGOING REPORTING AND SUPPLEMENTS TO THIS OFFERING CIRCULAR**

We will be required to make annual and semi-annual filings with the SEC. We will make annual filings on Form 1-K, which will be due by the end of April each year and will include audited financial statements for the previous fiscal year. We will make semi-annual filings on Form 1-SA, which will be due by September 28 each year, which will include unaudited financial statements for the six months to June 30. We will also file a Form 1-U to announce important events such as the loss of a senior officer, a change in auditors or certain types of capital-raising. We will be required to keep making these reports unless we file a Form 1-Z to exit the reporting system, which we will only be able to do if we have less than 300 shareholders of record and have filed at least one Form 1-K.

At least every 12 months while this offering is open, we will file a post-qualification amendment to the Offering Statement of which this Offering Circular forms a part, to include the company's recent financial statements.

We may supplement the information in this Offering Circular by filing a Supplement with the SEC.

All these filings will be available on the SEC's EDGAR filing system. You should read all the available information before investing.

**MODE MOBILE, INC.**

**AND SUBSIDIARIES**

**CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

**MODE MOBILE, INC. AND SUBSIDIARIES**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| Consolidated Financial Statements as of and for the years ended December 31, 2025 and 2024: |  |
| [Report of Independent Registered Public Accounting Firm](#mm_001) (PCAOB ID number 587) | F-2 |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#af_001) | F-3 |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#af_002) | F-4 |
| [Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2025 and 2024](#af_003) | F-5 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#af_004) | F-6 |
| [Notes to Consolidated Financial Statements](#af_005) | F-7 |

---

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| | |
|:---|:---|
| ![](audit_001.jpg) | ***New York Office:***<br>805 Third Avenue<br> New York, NY 10022<br> 212.838-5100<br>***www.rbsmllp.com*** |

---

 ****

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and Stockholders of

Mode Mobile, Inc. and Subsidiaries

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Mode Mobile, Inc. (the "Company") as of December 31, 2025, and 2024, and the related consolidated statements of operations, changes in stockholders' equity and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (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 December 31, 2025, and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**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 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 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 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

![](audit_002.jpg)

We have served as the Company's auditor since 2025.

New York, NY

April 30, 2026

New York, NY Washington DC Mumbai & Pune, India Boca Raton, FL

Houston, TX San Francisco, CA Las Vegas, NV Beijing, China Athens, Greece

Member: ANTEA International with affiliated offices worldwide

**MODE MOBILE, INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

------

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| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $8881411 | $6886521 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 7378741 | 2401867 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 272810 | 180262 |
| &nbsp;&nbsp;&nbsp;Subscription receivable | 279726 |  |
| &nbsp;&nbsp;&nbsp;Other receivables | 40000 | 79371 |
| &nbsp;&nbsp;&nbsp;Inventory | 15727 | 214521 |
| &nbsp;&nbsp;&nbsp;Deferred offering costs |  | 4390362 |
| &nbsp;&nbsp;&nbsp;Deferred tax asset |  | 519617 |
| &nbsp;&nbsp;&nbsp;Prepaid advertising | 433021 |  |
| &nbsp;&nbsp;&nbsp;EARNM Foundation receivable | 800038 | 230000 |
| &nbsp;&nbsp;&nbsp;Other current assets | 186109 | 121797 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 18287583 | 15024318 |
| Property, equipment and other asssets: |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 19577 | 13277 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 23346647 |  |
| &nbsp;&nbsp;&nbsp;Goodwill | 31740198 |  |
| &nbsp;&nbsp;&nbsp;Cryptocurrency assets | 10081 | 12531 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total non-current assets | 55116503 | 25808 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $73404086 | $15050126 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | $4584543 | $3123650 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 488021 | 277743 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 261012 | 37775 |
| &nbsp;&nbsp;&nbsp;Indemnification holdback | 1975490 |  |
| &nbsp;&nbsp;&nbsp;Stock to be issued | 170000 |  |
| &nbsp;&nbsp;&nbsp;Deferred tax liability | 1442537 |  |
| &nbsp;&nbsp;&nbsp;Payable to shareholders |  | 1265000 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of discount and current portion | 12932703 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 21854305 | 4704168 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of debt discount | 10134675 |  |
| &nbsp;&nbsp;&nbsp;Warrant liability | 2080315 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 34069295 | 4704168 |
| Commitments and contingencies |  |  |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Preferred stock, $0.0001 par value, 388,800,000 shares authorized, 345,659,651 and 353,712,906 shares issued and outstanding as of December 31, 2025 and 2024, liquidation preference of $4,651,469 and $4,759,840 as of December 31, 2025 and 2024, respectively | 34566 | 35371 |
| &nbsp;&nbsp;&nbsp;Class A common stock, $0.0001 par value, 2,431,000,000 shares authorized, 627,870,232 and 646,825,014 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 62788 | 64683 |
| &nbsp;&nbsp;&nbsp;Class B common stock, $0.0001 par value, 298,000,000 shares authorized, 22,199,069 and 20,737,172 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 2219 | 2073 |
| &nbsp;&nbsp;&nbsp;Class C common stock, $0.0001 par value, 12,150,000 shares authorized, 11,155,245 and 10,993,629 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 1115 | 1099 |
| &nbsp;&nbsp;&nbsp;Class AAA common stock, $0.0001 par value, 876,000,000 shares authorized, 544,907,998 and 149,320,399 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 54490 | 14932 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 52828524 | 17991462 |
| &nbsp;&nbsp;&nbsp;Treasury stock | (150000) | (150000) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (13498910) | (7613663) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 39334792 | 10345958 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $73404086 | $15050126 |

---

See accompanying notes, which are an integral part of these consolidated financial statements

**MODE MOBILE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

------

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Net revenues | $22151635 | $12136295 |
| Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Cost of net revenues | 1706869 | 1116359 |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 9851758 | 5822794 |
| &nbsp;&nbsp;&nbsp;Research and development | 4564665 | 4241684 |
| &nbsp;&nbsp;&nbsp;General and administrative (Note 11) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee compensation | 4219588 | 3478207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Professional fees | 1288777 | 365415 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other selling, general & administrative | 1741089 | 770157 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization expense (Note 5) | 1389569 | 5370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses | 24762315 | 15799986 |
| Loss from operations | (2610680) | (3663691) |
| Other (expense) income: |  |  |
| &nbsp;&nbsp;&nbsp;Realized gains on cryptocurrency sales |  | 376905 |
| &nbsp;&nbsp;&nbsp;Other income | 664728 | 101137 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant liability | (533723) |  |
| &nbsp;&nbsp;&nbsp;NFT Impairment (Note 4) |  | (51060) |
| &nbsp;&nbsp;&nbsp;Interest expense (Note 7) | (1233140) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (expense) income: | (1102135) | 426982 |
| Loss before provision for income taxes | (3712815) | (3236709) |
| Provision for income taxes | 2172432 | 277743 |
| Net loss | $(5885247) | $(3514452) |
| Weighted average number common shares outstanding - basic and diluted | 999244652 | 741579207 |
| Basic and diluted loss per share | $(0.006) | $(0.005) |

---

See accompanying notes, which are an integral part of these consolidated financial statements

**MODE MOBILE, INC. AND SUBSIDIARIES**

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

**For the years ended December 31, 2025 and 2024**

------

---

| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series Seed** | **Series Seed** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | **Common Stock** | | | | | |
|  | **Preferred Stock** | **Preferred Stock** | **Class A** | **Class A** | **Class B** | **Class B** | **Class C** | **Class C** | **Class AAA** | **Class AAA** | | **Treasury Stock** | **Treasury Stock** | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional**<br>**Paid-in**<br>**Capital** | **Shares** | **Amount** |<br>**Accumulated**<br>**Deficit** | **Total**<br>**Stockholders'**<br>**Equity** |
| **Balances at December 31, 2023** | 353712906 | $35371 | 646825014 | $64683 | 9962438 | $996 | 10993629 | $1099 | 60980343 | $6098 | $8426006 | 18360594 | $(150000) | $(4099213) | $4285040 |
| Issuance of Class AAA common stock pursuant to Regulation CF offering |  |  |  |  |  |  |  |  | 88340056 | 8834 | 10487542 |  |  |  | 10496376 |
| Exercise of options |  |  |  |  | 10774734 | 1077 |  |  |  |  | 8405 |  |  |  | 9482 |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 757185 |  |  |  | 757185 |
| Offering costs |  |  |  |  |  |  |  |  |  |  | (1687675) |  |  |  | (1687675) |
| Net loss | - | - | - | - | - | - | - | - | - | - | - | - | - | (3514452) | (3514452) |
| **Balances at December 31, 2024** | 353712906 | 35371 | 646825014 | 64683 | 20737172 | 2073 | 10993629 | 1099 | 149320399 | 14932 | 17991462 | 18360594 | (150000) | (7613663) | 10345958 |
| Issuance of Class AAA common stock pursuant to Regulation CF and A offering |  |  |  |  |  |  | 100000 | 10 | 285937828 | 28594 | 48106322 |  |  |  | 48134926 |
| Conversion of preferred and common shares into Class AAA common shares | (8053255) | (805) | (18954782) | (1895) | (1526425) | (153) | (146718) | (15) | 28681180 | 2868 |  |  |  |  |  |
| Exercise of options |  |  |  |  | 2988322 | 299 |  |  |  |  | 12216 |  |  |  | 12515 |
| Equity issuance for ownership |  |  |  |  |  |  | 208334 | 21 | 72666668 | 7267 | 14771045 |  |  |  | 14778333 |
| Equity issuance for advertising & advisory |  |  |  |  |  |  |  |  | 8301923 | 830 | 999170 |  |  |  | 1000000 |
| Stock-based compensation |  |  |  |  |  |  |  |  |  |  | 825437 |  |  |  | 825437 |
| Offering costs |  |  |  |  |  |  |  |  |  |  | (29877129) |  |  |  | (29877129) |
| Net loss | - | - | - | - | - | - | - | - | - | - | 0 | - | - | (5885247) | (5885247) |
| **Balances at December 31, 2025** | 345659651 | $34566 | 627870232 | $62788 | 22199069 | $2219 | 11155245 | $1115 | 544907998 | $54490 | $52828524 | 18360594 | $(150000) | $(13498910) | $39344792 |

---

See accompanying notes, which are an integral part of these consolidated financial statements.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

------

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(5885247) | $(3514452) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of intangibles | 1380688 |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 8881 | 5370 |
| &nbsp;&nbsp;&nbsp;Stock-based compensation | 825437 | 757185 |
| &nbsp;&nbsp;&nbsp;Change in fair value of warrant | 1874611 |  |
| &nbsp;&nbsp;&nbsp;Deferred income taxes | 1442537 |  |
| &nbsp;&nbsp;&nbsp;Prepaid advertising credits | 1000000 |  |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | 279084 |  |
| &nbsp;&nbsp;&nbsp;Bad debt |  | 89025 |
| &nbsp;&nbsp;&nbsp;Realized gains on cryptocurrency sales |  | (376905) |
| &nbsp;&nbsp;&nbsp;Impairment expense |  | 51060 |
| &nbsp;&nbsp;&nbsp;Non-cash inventory write-down | 15910 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (1876589) | (483415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (92548) | (77113) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | 182884 | 354312 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other receivables | 39371 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid advertising | (433021) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EARNM Foundation | (570038) | (230000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | (64312) | 128483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (483452) | 1300022 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | 210278 | 277743 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 223237 | 37775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (1402673) | (1680909) |
| **Cash flows from investing activities:** |  |  |
| Proceeds from cryptocurrency sales | 2750 | 660576 |
| Purchase of property and equipment | (15181) | (9663) |
| Acquisition of assets, net of cash acquired | (8327669) |  |
| Acquisition of business, net of cash acquired | (23478422) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by investing activities | (31818521) | 650913 |
| **Cash flows from financing activities:** |  |  |
| Proceeds from notes payable | 14933470 |  |
| Repayments of notes payable | (833333) |  |
| Deferred offering costs | 4390363 | (4390362) |
| Issuance of common stock, net of offering costs | 18257796 | 8508353 |
| Subscription receivable | (279726) |  |
| Payments to selling shareholders | (1265000) | 1265000 |
| Exercise of options | 12515 | 9482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 35216084 | 5392472 |
| **Net change in cash and cash equivalents** | 1994890 | 4362476 |
| Cash and cash equivalents at beginning of year | 6886521 | 2524045 |
| Cash and cash equivalents at end of year | $8881411 | $6886521 |
| **Supplemental disclosure of cash flow information:** |  |  |
| Cash paid for income taxes | $- | $- |
| Cash paid for interest | $- | $- |
| **Supplemental disclosure of cash flow information:** |  |  |
| Issuance of common stock for assets acquisitions | $14948333 | $- |
| Issuance of note payable for business combination | $8909605 | $- |
| Purchase of cryptocurrency | $300 | $269818 |
| Indemnification holdback pursuant to assets acquisitions | $1975490 | $- |
| Goodwill assumed in business combinations | $31740198 | $- |
| Assets assumed on acquisitions | $3100285 | $- |
| Liabilities assumed on acquisitions | $1944046 | $- |

---

See accompanying notes, which are an integral part of these consolidated financial statements

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**1.** **NATURE OF OPERATIONS** 

Mode Mobile, Inc. (collectively, the "Company" or "Mode Mobile") is a technology company that operates the Mode EarnOS enabling users the ability to earn rewards on a single platform for interacting with digital content on their smartphones. The Company also offers the Mode EarnPhone, a smartphone embedded with the Company's EarnOS software for a more integrated and enhanced earnings experience. The consolidated financial statements consist of the following entities (each an "Entity", collectively the "Entities"):

● Mode Mobile, Inc., a Delaware Corporation organized on April 23, 2015. Mode Mobile, Inc. is a holding company which owns 100% of Mode Mobile, LLC's membership interests. Mode Mobile, Inc. was previously known as Nativ Mobile Inc. before a name change on October 25, 2022 and prior to that, was known as Nativ Mobile, LLC before a name change on February 25, 2021.

● Mode Mobile, LLC, a Delaware Limited Liability Company organized on April 25, 2017 and is a 100% wholly owned subsidiary of Mode Mobile, Inc. Mode Mobile, LLC was organized to develop an earnings ecosystem where users would be rewarded for their time, attention and data. Mode Mobile, LLC was previously known as Current Mobile, LLC before a name change on February 4, 2022 and prior to that, was known as Current Media, LLC before a name change on March 10, 2021.

● Mode Phone, LLC, an Illinois Limited Liability Company organized on November 10, 2020 and is a 100% wholly owned subsidiary of Mode Mobile, Inc. Mode Phone, LLC was organized to build out and support the Company's smartphone business, which focuses on the marketing and distribution of the Mode Earn Phone.

● Current (Gibraltar) Limited ("CGL"), a Gibraltar Company organized on June 19, 2018. The Entity was organized to develop a rewards protocol, the purpose of which is intended to be used as a rewards distribution mechanism through a deep partnership with Mode Mobile and its user base. Mode Mobile, Inc has 100% voting rights and 0% economic rights to CGL, and, under ASC 810-10, was not consolidated into the Company's financial statements and was accounted for as an unconsolidated variable interest entity ended December 31, 2024 and December 31, 2025 (see Note 10).

The above entity structure has been in effect since February 25, 2021, on which date the Company consummated a corporate reorganization transaction (the "Reorganization") where, among other things, Mode Mobile, Inc. converted its corporate status from a limited liability company to a C-corporation and became a holding company for the Company's operating entities. Prior to the consummation of the corporate reorganization transaction, MobileX Labs, LLC, a now-defunct Indiana limited liability company formed in 2012, served as the entity through which all profits and losses ultimately flowed for tax purposes. On the effective date of the corporate reorganization, MobileX Labs, LLC was dissolved in accordance with applicable state law. The primary purpose of the corporate reorganization was to align the investments of the now-existing preferred stockholders into one single entity.

During fiscal year 2025, the Company completed five strategic acquisitions to expand its portfolio of mobile applications and accelerate revenue diversification. These acquisitions are described below:

● App Lock LLC (acquired January 24, 2025; total purchase consideration $10,485,219 via asset purchase agreement): App Lock allows users to lock apps like messaging apps, social apps, and email apps. The acquisition enables Mode Mobile to expand its mobile application portfolio and customer base in the identity verification and security technology markets.

● Gallery (acquired August 22, 2025; enterprise value $1,226,666 via asset purchase agreement): Gallery App is an Android-based mobile gallery and vault application with over 3.92 million total downloads, 210,000 daily active users (DAU), and a 4.53 average user rating.

● Cleaner App (acquired October 31, 2025; enterprise value $528,000 via asset purchase agreement): Cleaner App is an Android-based mobile utility application designed to optimize device storage by identifying and removing unnecessary files, including large files and duplicate or unwanted photos.

● NGL Labs, LLC (acquired December 1, 2025; enterprise value $43,509,360 via merger agreement): NGL Labs LLC is a developer of anonymous social-messaging platforms, best known for operating the "NGL: ask me anything" application, which enables users to send and receive anonymous messages through social media.

● Trimbox, LLC (acquired December 23, 2025; enterprise value of $2,955,690 via merger agreement): Trimbox is a provider of an email inbox-cleaning application, best known for its tool that enables users to unsubscribe from mailing lists and bulk-delete unwanted emails with one click.

Each acquisition has been accounted for as a business combination under ASC 805, or as an asset acquisition where applicable, and a purchase price allocation has been completed for each transaction. Subsequent to December 31, 2025, the Company acquired the QR Code App via asset acquisition on March 2, 2026. See Note 15 — Subsequent Events for further details.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES** 

 ****

***Basis of Presentation***

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America ("GAAP"). The Company's fiscal year is December 31.

The consolidated financial statements have been presented to reflect the capital structure per the Reorganization on a retroactive basis.

***Principles of Consolidation***

 ****

These consolidated financial statements include the accounts of Mode Mobile and its subsidiaries Mode Mobile, LLC, Mode Phone, LLC, and App Lock LLC, Cleaner App, Gallery App, Trimbox, LLC and NGL Labs LLC. All intercompany transactions and balances have been eliminated in consolidation.

The Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIE") as defined by Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, Consolidation ("ASC 810"), and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is consolidated.

 ****

***Stock Split***

On February 28, 2023, the Board of Directors approved a 162-for-1 forward stock split of its issued and outstanding shares of common and preferred stock. Accordingly, all share and per share amounts for all periods presented in the accompanying consolidated financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect this forward stock split.

 ****

***Use of Estimates***

The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, the valuations of common stock, useful lives and expected future cash flows of long-lived assets including intangible assets, valuation of assets acquired and liabilities assumed in business combinations and asset acquisitions, fair value of warrant liabilities, net realizable value of accounts receivable and other receivables, stock-based compensation, amortization of performance obligation liabilities and valuation of cryptocurrency assets, estimate of the valuation allowance on deferred tax assets and corporate income taxes.. The Company bases its estimates on historical experience, known trends and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates when there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results could differ from those estimates.

 ****

***Business Acquisitions***

The Company accounts for business combinations and asset acquisitions in accordance with the guidance set forth in FASB ASC 805. For transactions meeting the definition of a business under ASC 805-10, the Company utilizes the acquisition method, which requires that the purchase consideration be measured at fair value as of the acquisition date. This consideration typically includes cash transferred, the fair value of equity interests issued, and the acquisition-date fair value of any promissory notes or contingent consideration. Identifiable assets acquired and liabilities assumed are recognized at their estimated fair values as of the acquisition date, with any excess of the purchase price over the fair value of net identifiable assets recorded as goodwill pursuant to ASC 805-30. Conversely, if the fair value of the net assets acquired exceeds the consideration transferred, a bargain purchase gain is recognized in earnings on the acquisition date. Acquisition-related costs, such as legal and advisory fees, are expensed as incurred in accordance with ASC 805-10-25-23.

In instances where a transaction does not meet the definition of a business because substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the transaction is accounted for as an asset acquisition under ASC 805-50. In an asset acquisition, the cost of the acquisition is allocated to the individual identified assets acquired and liabilities assumed based on their relative fair values, and no goodwill is recognized. Unlike business combinations, transaction costs in an asset acquisition are capitalized as a component of the cost of the assets acquired. Furthermore, if the cost of the acquisition exceeds the fair value of the net assets, the excess is allocated to the non-financial assets on a relative fair value basis rather than being recorded as goodwill.

 ****

 ****

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Concentrations of Credit Risk***

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in financial institutions, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of December 31, 2025 and 2024, the Company had not experienced losses on these accounts and held uninsured deposit amounts of $8,631,410 and $6,636,520 respectively.

 ****

***Cash and Cash Equivalents***

Cash and cash equivalents represent cash and highly liquid investments with an original contractual maturity at the date of purchase of three months or less. As of December 31, 2025 and 2024 cash and cash equivalents of $8,881,411 and $6,886,521, respectively, consisted primarily of checking and money market.

 ****

***Fair Value Measurements***

Certain assets and liabilities of the Company are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Financial assets and liabilities carried at fair value are to be classified and disclosed in one of the following three levels of the fair value hierarchy, of which the first two are considered observable and the last is considered unobservable:

● Level 1—Quoted prices in active markets for identical assets or liabilities.

● Level 2—Observable inputs (other than Level 1 quoted prices), such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data.

● Level 3—Unobservable inputs that are supported by little or no market activity that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques.

The following table presents information about the Company's assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2025 and 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value. The carrying values of the Company's financial instruments, including cash and cash equivalents, accounts receivable, and accounts payable, approximate their fair values due to their short-term maturities. See Note 4 for the fair value hierarchy table summarizing the Company's financial assets and liabilities measured at fair value on a recurring basis.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements as of December 31, 2025 Using:** | **Fair Value Measurements as of December 31, 2025 Using:** | **Fair Value Measurements as of December 31, 2025 Using:** | **Fair Value Measurements as of December 31, 2025 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets : |  |  |  |  |
| Treasury accounts | $52976 | $- | $- | $52976 |
| Cryptocurrency assets | $- | $- | $10081 | $10081 |
|  | $52976 | $- | $10081 | $63057 |
| Liabilities: |  |  |  |  |
| Warrant liability | $- | $2080315 | $- | $2080315 |
|  | $- | $2080315 | $- | $2080315 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value Measurements as of December 31, 2024 Using:** | **Fair Value Measurements as of December 31, 2024 Using:** | **Fair Value Measurements as of December 31, 2024 Using:** | **Fair Value Measurements as of December 31, 2024 Using:** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
| Assets : |  |  |  |  |
| Treasury accounts | $2667503 | $- | $- | $2667503 |
| Cryptocurrency assets | $- | $- | $12531 | $12531 |
|  | $2667503 | $- | $12531 | $2680034 |
| Liabilities: |  |  |  |  |
| Warrant liability | $- | $- | $- | $- |
|  | $- | $- | $- | $- |

---

***Accounts Receivable and Allowance for Credit Losses***

The Company's accounts receivable are due from customers primarily from the Company's marketing revenue. The Company maintains an allowance for credit losses in accordance with ASC 326, Financial Instruments – Credit Losses, which requires the use of a current expected credit loss ("CECL") model. Under this model, the Company estimates expected credit losses over the contractual term of its receivables at inception and updates the estimate at each reporting date. The allowance is based on historical collection experience, the age of outstanding receivables, current economic conditions, and reasonable and supportable forecasts of future economic conditions that may affect collectability. When receivables are determined to be uncollectible, principal amounts of such receivables outstanding are written off against the allowance. As of December 31, 2025 and 2024, the allowance for credit losses was $653,670 and $674,623, respectively.

***Inventory***

 ****

Inventory consists primarily of finished goods related to the Company's hardware phones and is stated at the lower of cost, using the weighted-average cost method, or net realizable value. Inventory was $15,727 and $214,521 as of December 31, 2025 and 2024, respectively. The Company evaluates inventory for excess quantities, obsolescence, and other indicators of impairment based on estimated demand, inventory on hand, sales activity, and other relevant factors, and records write-downs to net realizable value when required. Once inventory is written down, a new cost basis is established. No write-downs to net realizable value were recorded during the years ended December 31, 2025 and 2024.

 ****

***Property and Equipment, Net***

Property and equipment are stated at cost less accumulated depreciation. Property and equipment consists of computer equipment, and depreciation expense is recognized using the straight-line method over the estimated useful life of five years for computer equipment.

When assets are retired or otherwise disposed of, the cost, accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of operations in the period realized. Maintenance and repairs that do not enhance or extend the asset's useful life are charged to operating expenses as incurred.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

The following is a summary of property and equipment:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Computer equipment | $35166 | $19985 |
| Less: Accumulated depreciation | (15589) | (6708) |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | $19577 | $13277 |

---

Depreciation expense was $8,881 and $5,370 for the years ended December 31, 2025 and 2024 respectively.

 ****

***Impairment of Long-Lived Assets***

The Company evaluates the recoverability of the carrying value of long-lived assets held and used in its operations for impairment on at least an annual basis or whenever events or changes in circumstances indicate that their carrying value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future net cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. These projected future cash flows may vary significantly over time as a result of increased competition, changes in technology, fluctuations in demand, consolidation of its customers and reductions in average sales prices. If the carrying value is determined not to be recoverable from future operating cash flows, the asset is deemed impaired, and an impairment loss is recognized to the extent the carrying value exceeds the estimated fair value of the asset. The fair value of the asset or asset group is based on market value when available, or when unavailable, on discounted expected cash flows.

***Intangible Assets***

Intangible assets consist primarily of developed technology, trade names and trademarks, customer relationships, non-compete agreements, and other identifiable intangible assets acquired in business combinations and asset acquisitions. Finite-lived intangible assets are recorded at cost or acquisition-date fair value, net of accumulated amortization and impairment, and are amortized on a straight-line basis over their estimated useful lives. The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the carrying amount is not recoverable, an impairment loss is recognized for the amount by which the carrying amount exceeds fair value.

Indefinite-lived intangible assets are not amortized and are tested for impairment annually, or more frequently if events or changes in circumstances indicate that impairment may exist.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in a business combination. Goodwill is not amortized and is tested for impairment at the reporting unit level annually, or more frequently if events or changes in circumstances indicate that impairment may exist. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the Company elects to bypass the qualitative assessment, or if the qualitative assessment indicates potential impairment, the Company performs a quantitative impairment test and recognizes an impairment charge for the amount by which the carrying amount of the reporting unit exceeds its fair value, not to exceed the amount of goodwill allocated to that reporting unit.

*Digital Assets – Cryptocurrencies and Nonfungible Tokens*

The Company accounts for its cryptocurrency holdings in accordance with ASU 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets, which the Company adopted effective January 1, 2025 (the first fiscal year beginning after December 15, 2024). Under ASC 350-60, the Company measures its cryptocurrency assets at fair value at each reporting date, with changes in fair value recognized in net income or loss in the period in which the change occurs. Fair value is determined based on Level 1 quoted prices on active exchanges in accordance with ASC 820, Fair Value Measurement. The adoption of ASU 2023-08 required a cumulative-effect adjustment recorded to the opening balance of retained earnings (accumulated deficit) as of January 1, 2025; such adjustment was not material given the immaterial carrying amounts involved. The prior-period impairment-only model is no longer applied to cryptocurrency holdings.

Nonfungible token ("NFT") assets are not within the scope of ASC 350-60. The Company continues to account for NFT assets as indefinite-lived intangible assets and applies an impairment-only model, recognizing impairment charges for decreases in fair value below carrying amount. Full impairment related to NFTs was recorded during the year ended December 31, 2024.

The Company realizes gains and losses upon sale or transfer of cryptocurrencies and NFTs, and are recorded under other (expense) income in the consolidated statements of operations. The gains and losses recognized from non-cash transactions are reflected as adjustments to reconcile to operating cash flows in the consolidated statements of cash flows.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Warrants***

The Company evaluates all warrants in accordance with ASC 480, *Distinguishing Liabilities from Equity*, and ASC 815-40, *Derivatives and Hedging – Contracts in Entity's Own Equity*, to determine whether the instruments should be classified as equity or liability. Warrants that meet the equity classification criteria under ASC 815-40 are recorded in additional paid-in capital and are not subsequently remeasured. Warrants that do not meet these criteria are classified as liabilities and initially measured at fair value, with subsequent remeasurement at each reporting date and changes in fair value recognized in earnings.

The fair value of warrants is determined using the Black-Scholes option pricing model in accordance with ASC 820, *Fair Value Measurement*, which incorporates assumptions such as expected volatility, expected term, risk-free interest rate, and dividend yield.

The fair value of warrant liabilities is included in the fair value measurement hierarchy table disclosed in Note 4.

 ****

***Revenue Recognition***

The Company adopted ASU 2014-09, Revenue from Contracts with Customers, and its related amendments (collectively known as "ASC 606"), effective January 1, 2019, using the modified retrospective transition approach applied to all contracts. Therefore, the reported results for the years ended December 31, 2025 and 2024 reflect the application of ASC 606. Management determined that there were no retroactive adjustments necessary to revenue recognition upon the adoption of the ASU 2014-09. The Company determines revenue recognition through the following steps:

● Identification of a contract with a customer;

● Identification of the performance obligations in the contract;

● Determination of the transaction price;

● Allocation of the transaction price to the performance obligations in the contract; and

● Recognition of revenue when or as the performance obligations are satisfied.

Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. In determining the transaction price, the Company uses significant judgment to estimate variable consideration, specifically for digital marketing transactions subject to adjustments or "clawbacks" by advertising partners based on final engagement metrics. Revenue is recognized only to the extent that it is probable that a significant reversal will not occur. As a practical expedient, the Company does not adjust the transaction price for the effects of a significant financing component if, at contract inception, the period between customer payment and the transfer of goods or services is expected to be one year or less.

The Company evaluates whether it is the principal (reports revenue on a gross basis) or agent (reports revenue on a net basis) in its shared revenue arrangements. The Company generally acts as the principal when it controls the promised service before it is transferred to the customer.

The Company's Mode Earn App enables users the ability to earn rewards on a single platform for interacting with digital content on their smartphones. Mode Mobile drives user engagement and monetizes user activity primarily through digital marketing revenue from advertising partners (including ad networks, ad exchanges, and brand partners). The Company satisfies performance obligations and recognizes revenue over time as the advertising services are delivered.

The Company also generates revenue from proof-of-concept phone hardware sales. Control transfers at a point in time, and as such, revenue is recognized upon shipment. This includes the transfer of legal title, physical possession, the risks and rewards of ownership, and customer acceptance. For proof-of-concept subscriptions, control transfers over time, and as such, revenue is recognized on a straight-line basis.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

Revenue by source consisted of the following for the years ended December 31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Advertising and software subscriptions | $21781017 | $10121030 |
| Service revenue | 1500 | 1852240 |
| Other (including hardware) | 369119 | 163025 |
| &nbsp;&nbsp;&nbsp;Net revenues | $22151635 | $12136295 |

---

***Former Related Party Revenue***

During the year ended December 31, 2024, the Company recognized $1,851,240 in revenue from services provided to Current (Gibraltar) Limited , which was a related party of the Company during this period (see Note 10 — Former Related Party Receivable). The services encompassed development, engineering, sales, and marketing support, with compensation determined at a rate of $1.75 per unique Mystery Box reveal by users within the Mode Earn App.

Effective December 31, 2024, the related party relationship with CGL was wound down and CGL is no longer revenue-generating. Accordingly, the Company does not expect to recognize revenue from CGL in future periods. Revenue recognized from CGL during the year ended December 31, 2024 was conducted at terms established under a negotiated services agreement. Management believes the terms of the arrangement were consistent with arm's-length conditions prevailing during the period.

 ****

***Contract Balances***

The Company invoices customers based upon contractual billing schedules, and accounts receivable are recorded when the right to consideration becomes unconditional. Contract liabilities represent prepayments received in advance of performance obligations met.

As of December 31, 2025 and 2024, the Company has deferred revenue of $261,012 and $37,775, respectively.

***Cost of Net Revenues***

Cost of net revenues consists primarily of user redemptions on the Mode Earn App. The Company shares a portion of generated revenue with users and also facilitates earnings and savings for users directly from advertising brands. Monthly user redemption costs represent the dollar value of rewards redeemed by users that are paid out by the Company. Cost of net revenues also includes hosting costs, as well as the product and related fulfillment costs of hardware products sold.

Cost of net revenue by source consisted of the following for the years ended December 31, 2025, and 2024:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Advertising | $938228 | $722879 |
| Other (including hardware) | 768642 | 393480 |
| &nbsp;&nbsp;&nbsp;Cost of net revenues | $1706869 | $1116359 |

---

***Advertising and Promotion***

Advertising and promotional costs are expensed as incurred. Advertising costs were $4,189,978 and $1,999,517 for the years ended December 31, 2025, and 2024, respectively, and are included in sales and marketing expenses in the consolidated statements of operations.

***Research and Development Costs***

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

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***General and Administrative Expenses***

General and administrative expenses consist primarily of payroll and payroll-related benefits and taxes, professional services, administrative expenditures, and information technology. General and administrative expenses also include acquisition-related transaction costs for business combinations, which are expensed as incurred (see Note 6).

***Other Income***

 ****

Other income consists primarily of interest and dividend income earned on treasury holdings and money market balances, as well as credit card rewards. For the years ended December 31, 2025 and 2024, the Company recognized $664,728 and $101,137, respectively.

***Accounting for Preferred Stock***

ASC 480, *Distinguishing Liabilities from Equity*, includes standards for how an issuer of equity (including equity shares issued by consolidated entities) classifies and measures on its consolidated balance sheet certain financial instruments with characteristics of both liabilities and equity.

Management is required to determine the presentation for the preferred stock as a result of the redemption and conversion provisions, among other provisions in the agreement. Specifically, management is required to determine whether the embedded conversion feature in the preferred stock is clearly and closely related to the host instrument, and whether the bifurcation of the conversion feature is required and whether the conversion feature should be accounted for as a derivative instrument. If the host instrument and conversion feature are determined to be clearly and closely related (both more akin to equity), derivative liability accounting under ASC 815, *Derivatives and Hedging*, is not required. Management determined that the host contract of the preferred stock is more akin to equity, and accordingly, liability accounting is not required by the Company. The Company has presented preferred stock within stockholders' equity.

Costs incurred directly for the issuance of the preferred stock are recorded as a reduction of gross proceeds received by the Company, resulting in a discount to the preferred stock. The discount is not amortized.

 ****

***Accounting for Equity Units***

Financial instruments issued by the Company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset. The Company's common shares are classified as equity instruments. Common shares issued for consideration other than cash are valued at the fair value of the assets received or the services rendered. If the fair value of the assets received or services rendered cannot be reliably measured, common shares issued for consideration will be valued at their fair value on the date of issuance.

***Stock-Based Compensation***

The Company measures all stock-based awards granted to employees and directors based on the fair value on the date of the grant and recognizes compensation expense for those awards over the requisite service period, which is generally the vesting period of the respective award. The Company issues stock-based awards with only service-based vesting conditions and records the expense for these awards using the straight-line method. For awards with performance-based vesting conditions, the Company records the expense if and when the Company concludes that it is probable that the performance condition will be achieved.

The Company classifies stock-based compensation expense in its statement of operations in the same manner in which the award recipient's payroll costs are classified or in which the award recipient's service payments are classified.

The fair value of each stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The Company historically has been a private company and lacks company-specific historical and implied volatility information for its stock. Therefore, it estimates its expected stock price volatility based on the historical volatility of publicly traded peer companies and expects to continue to do so until such time as it has adequate historical data regarding the volatility of its own traded stock price. The expected term of the Company's stock options has been determined utilizing the "simplified" method for awards that qualify as "plain-vanilla" options. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is based on the fact that the Company has never paid cash dividends on common stock and does not expect to pay any cash dividends in the foreseeable future. The Company recognizes forfeitures as they occur as there is insufficient historical data to accurately determine future forfeitures rates. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The assumptions used in calculating the fair value of stock-based awards represent management's best estimates and involve inherent uncertainties and the application of management's judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards.

The Company records an expense for stock issued for services as an expense based on the number of shares issued and fair value of the underlying stock issued to the recipient.

 ****

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Deferred Offering Costs***

The Company complies with the requirements of FASB ASC 340-10-S99-1 with regards to offering costs. Prior to the completion of an offering, offering costs are capitalized. The deferred offering costs are charged to additional paid-in capital or as a discount to debt, as applicable, upon the completion of an offering or to expense if the offering is not completed.

As of December 31, 2025 and 2024, the Company had capitalized $0 and $4,390,362 in deferred offering costs, respectively.

 ****

***Income Taxes***

The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the Consolidated Statements of Operations in the period that includes the enactment date.

The Company establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations.

The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits within the provision for income taxes.

In accordance with ASU 2023-09, the Company provides enhanced disclosures regarding income taxes paid, disaggregated by federal, state, and foreign jurisdictions, as well as a detailed reconciliation of the effective tax rate using specific categories and thresholds. The Company evaluates its tax positions across all jurisdictions subject to examination based on the facts, circumstances, and information available at the reporting date.

 **

***Commitment and Contingencies***

 **

The Company records a liability for pending litigation and other loss contingencies when it is probable that a loss has been incurred and the amount can be reasonably estimated in accordance with ASC 450. If a loss is only reasonably possible, or if the amount cannot be reasonably estimated, the Company discloses the nature of the matter and an estimate of the potential loss or range of loss, unless such an estimate cannot be determined.

The Company also discloses significant non-cancelable contractual obligations and capital commitments that represent future cash requirements. Legal fees related to these matters are expensed as the services are provided. Gain contingencies are not recognized in the financial statements until the gain is realized or definitely realizable. These assessments are reviewed periodically and adjusted as additional information becomes available.

 ****

***Segment Reporting***

ASC Topic 280, "Segment Reporting," establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company's chief operating decision maker, or group, in deciding how to allocate resources and assess performance.

 ****

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Debt Issuance Costs***

 ****

Debt discount and debt issuance costs are presented as a direct deduction from the carrying amount of the related debt liability on the balance sheets, pursuant to Financial Accounting Standards Board ("FASB") ASC 835-30 and ASC 470. These costs and discounts are amortized to interest expense over the term of the debt using the effective interest method.

***Prepaid Advertising***

 ****

On April 10, 2025, the Company entered into a media-for-equity arrangement with Mercurius Media Capital, LP ("MMC"), pursuant to which the Company issued 7,692,307 shares of Class AAA common stock in exchange for $1,000,000 in advertising media credits (the "First Tranche Credit"). The equity issuance was measured at the fair value of shares issued of $0.13 per share, supported by contemporaneous arm's-length financing transactions, resulting in the recognition of common stock and additional paid-in capital of $7,692 and $992,308, respectively. The advertising credits are non-transferable, non-refundable, and expire on December 31, 2025. The credits are classified as prepaid advertising within current assets, consistent with ASC 340-20 and ASC 720-35. Advertising expense is recognized as credits are utilized and advertising placements are delivered. Management evaluates the prepaid advertising balance for impairment each reporting period. As of December 31, 2025, the prepaid advertising balance is $433,021. The agreement also contemplates an additional issuance of $2,000,000 of Class AAA common stock in exchange for additional advertising credits beginning January 1, 2026, subject to mutual agreement of the parties and satisfaction of first tranche utilization conditions. No amounts related to this second tranche have been recognized as of the balance sheet date, as the arrangement does not constitute a binding commitment. The second tranche is disclosed as a contingent contractual commitment.

 ****

***Payable to Shareholders***

In August 2024, the Company launched an offering of Class AAA Common Stock pursuant to Regulation A+ (Tier 2) of the Securities Act of 1933, as amended (the "Offering"). The Offering permitted the Company to raise up to $30,000,000 in gross proceeds from the issuance of newly issued shares, and permitted certain existing security holders (the "Selling Shareholders") to receive up to $7,500,000 in aggregate gross proceeds from the resale of their existing shares to new investors.<br>

Per the filing, after the Company raises $5,000,000 in gross proceeds from primary issuances, subsequent closings will structure issuances so that 77% of shares are newly issued by the Company and 23% are existing shares sold by the Selling Shareholders on a pro-rata basis. The Selling Shareholders may sell up to 30,000,000 shares in aggregate, representing no more than 10% of the total shares offered in the Offering. The shares sold by the Selling Shareholders will not exceed 30% of the aggregate Class AAA Common Stock value issued in the Offering. The Company will not receive any proceeds from the sale of shares by the Selling Shareholders. Proceeds from such sales will be distributed directly to the respective Selling Shareholders, net of a 5% placement agent commission payable to Dealmaker Securities LLC. Subscriptions attributable to Selling Shareholder shares are allocated among participating Selling Shareholders on a pro-rata basis at each closing. As of December 31, 2024, the outstanding balance owed to Selling Shareholders was $1,265,000. Proceeds from primary share issuances received by the Company are classified as financing activities in the statement of cash flows. Proceeds payable to Selling Shareholders are recorded as a liability upon receipt and are excluded from the Company's equity accounts, as they do not represent proceeds from newly issued shares.

 **

***EARNM Foundation***

 **

Effective December 31, 2024, CGL began wind-down efforts and a new, arms-length entity, EARNM Foundation, was established. As such, the Company wound down the related party relationship with CGL. Subsequent to the wind-down, the Company entered into a services agreement with EARNM Foundation to provide supporting operational services. EARNM Foundation is not a related party of the Company. As of December 31, 2025, the Company has recorded a receivable of $800,038, and $230,000 as of December 31, 2024 due from EARNM Foundation arising from supporting services provided under the arms-length services agreement. The receivable is classified as a current asset based on management's expectation of collection within twelve months of the balance sheet date. No allowance for credit loss has been recorded as of December 31, 2025, as management believes the balance is fully collectible.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Basic and Diluted Loss per Share***

 ****

Basic and diluted loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period, excluding shares subject to redemption or forfeiture. The Company presents basic and diluted loss per share. Diluted loss per share reflects the actual weighted average of common shares issued and outstanding during the period, adjusted for potentially dilutive securities outstanding. Potentially dilutive securities are excluded from the computation of the diluted loss per share if their inclusion would be anti-dilutive. As all potentially dilutive securities are anti-dilutive as of December 31, 2025 and 2024, diluted loss per share is the same as basic loss per share. Potentially dilutive items included the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Series Seed convertible preferred stock | 345659651 | 353712906 |
| Stock options | 233249810 | 209713228 |
| Warrants | 13355208 | 3721875 |
| &nbsp;&nbsp;&nbsp;Total potentially dilutive shares | 592264669 | 567148009 |

---

***Recently Adopted Accounting Pronouncements***

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires enhanced disclosures regarding income taxes paid, disaggregated by federal, state, and foreign jurisdictions, as well as a detailed rate reconciliation using specific categories and thresholds. The Company adopted ASU 2023-09 for the year ended December 31, 2025, and the adoption did not have a material impact on the Company's financial statements beyond enhanced disclosures.

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures about significant segment expenses regularly provided to the chief operating decision maker ("CODM") and included within each reported measure of segment profit or loss. The Company adopted ASU 2023-07 for the year ended December 31, 2025, and the adoption did not have a material impact on the Company's financial statements beyond enhanced disclosures.

***Recently Issued Accounting Pronouncements***

In December 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40), which requires public entities to provide disaggregated disclosures of certain expense categories within income statement line items. The standard is effective for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company has adopted this standard in its consolidated financial statement disclosures effective December 31, 2025.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740)—Improvements to Income Tax Disclosure" ("ASU 2023-09"), which establishes new income tax disclosure requirements in addition to modifying and eliminating certain existing requirements primarily relating to the rate reconciliation and income taxes paid. This includes a tabular reconciliation using both percentages and reporting currency amounts, covering various tax and reconciling items, and disaggregated summaries of income taxes paid during the period. ASU 2023-09 is required to be adopted for annual periods beginning after December 15, 2024, with early adoption permitted. The Company has adopted this standard in its consolidated financial statement disclosures effective December 31, 2025.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, which amends and clarifies several provisions of Topic 326. In May 2019, the FASB issued ASU 2019-05, Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief, which amends Topic 326 to allow the fair value option to be elected for certain financial instruments upon adoption. ASU 2019-10 extended the effective date of ASU 2016-13 until December 15, 2022. The Company adopted this new guidance, including the subsequent updates to Topic 326, on April 1, 2022 and the adoption did not have a material impact on the Company's financial statements and related disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards could have a material effect on the accompanying consolidated financial statements. As new accounting pronouncements are issued, the Company will adopt those that are applicable under the circumstances.

**3.** **GOING CONCERN** 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has evaluated its ability to continue as a going concern for the twelve-month period following the expected financial statement issuance date of April 30, 2026, in accordance with ASC 205-40, Presentation of Financial Statements — Going Concern.

The Company has incurred recurring operating losses in each fiscal year from 2022 through 2025, including operating losses of approximately $10,057,042 in 2022, $6,078,061 in 2023, $3,663,691 in 2024, and $2,610,680 in 2025. These conditions, considered in the aggregate, raised substantial doubt about the Company's ability to continue as a going concern within the look-forward period.<br>

Management has developed and is actively executing plans intended to mitigate these conditions. In the first quarter of 2026, the Company launched a capital raise under Regulation A+ (Tier 2) of the Securities Act of 1933, as amended. The offering has been qualified by the SEC, providing the Company with broad access to retail and institutional investors, and management believes the offering is probable of generating sufficient proceeds to support operations through the look-forward period, based on early investor engagement and the Company's established brand and user base.

On March 19, 2026, the Company entered into a term sheet with Partners For Growth to upsize the current facility by $3,000,000. This loan has the same terms as the existing facility, including a 36 month term with 13.25% annual interest. Management is negotiating final documentation and expects drawdown to be completed the first week of May.

Finally, the Company completed the acquisitions of NGL Labs, LLC (December 1, 2025), Trimbox, LLC (December 23, 2025), and the QR Code App (March 2, 2026) and expects these businesses to contribute meaningful operating income during the look-forward period. NGL Labs is projected to contribute approximately $13.0 million in operating income for fiscal year 2026, Trimbox is projected to contribute approximately $0.7 million, and the QR Code App is projected to contribute approximately $4.0 million, for projected aggregate contributions of approximately $17.7 million in combined operating income during the look-forward period. These projections are subject to ongoing revision.

After consideration of plans described above, management concluded that it is probable that the plans will be effectively implemented and will mitigate the conditions that raised substantial doubt. Accordingly, management has concluded that substantial doubt about the Company's ability to continue as a going concern has been alleviated. These financial statements have been prepared on a going concern basis and do not include any adjustments that might result from the Company's inability to continue as a going concern.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**4.** **CRYPTOCURRENCIES AND NFTs** 

Effective January 1, 2025, the Company adopted ASU 2023-08, *Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. Under ASC 350-60, cryptocurrency assets are measured at fair value at each reporting date, with changes in fair value recognized in net income or loss in the period in which the change occurs. Fair value is determined using Level 1 quoted prices on active cryptocurrency exchanges in accordance with ASC 820, *Fair Value Measurement*. The adoption of ASU 2023-08 required a cumulative-effect adjustment recorded to the opening balance of accumulated deficit as of January 1, 2025; such adjustment was not material given the immaterial carrying amounts involved.

Indefinite-lived intangible assets are not subject to amortization, but rather are tested for impairment on an annual basis and more frequently if events or circumstances change that indicate that it is more likely than not that the asset is impaired. As a result, the Company recognizes decreases in the value of its holdings in cryptocurrency. Both Bitcoin and Ether are traded on exchanges in which there are observable prices in an active market. The Company considers quoted prices below its carrying cost to be an impairment indicator. The quoted price and observable prices are determined by the Company using a principal market analysis in accordance with ASC 820, *Fair Value Measurement*.

The Company designates each cryptocurrency type as a separate unit of account. Realized gains and losses upon sale or disposal of cryptocurrency are recognized in other income (expense) in the consolidated statements of operations. Changes in fair value are also recognized in other income (expense) in the consolidated statements of operations. For the year ended December 31, 2025, no material unrealized gain or loss on cryptocurrency was recognized. Under the prior impairment-only model, no impairment charges were recorded in 2024.

*Cryptocurrencies*

 

Realized gains on cryptocurrency holdings were $0 and $376,905 for the years ended December 31, 2025, and 2024, respectively. No unrealized gain or loss on cryptocurrency was recorded for the year ended December 31, 2025. Under the prior impairment-only model, no impairment charges against cryptocurrency holdings were recorded in 2024.

The following table presents the activity in cryptocurrency assets for the years ended December 31, 2025 and 2024, are as follows:

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| | |
|:---|:---|
|  | **Cryptocurrency**<br>**assets** |
| Balance at December 31, 2023 | $26384 |
| Purchase of cryptocurrency | 269818 |
| Sales of cryptocurrency | (660576) |
| Realized gains on cryptocurrency sales | 376905 |
| Balance at December 31, 2024 | 12531 |
| Purchase of cryptocurrency | 300 |
| Sales of cryptocurrency | (2750) |
| Realized gains on cryptocurrency sales | - |
| Balance at December 31, 2025 | $10081 |

---

*Nonfungible Token Assets*

 

The Company owns a portfolio of NFT assets that were first acquired in early 2022. NFT assets are not within the scope of ASC 350-60. The Company continues to account for NFT assets as indefinite-lived intangible assets under an impairment-only model, recognizing impairment charges for decreases in fair value below carrying amount. As of December 31, 2025, the portfolio was fully impaired and the balance was $0. The following is a summary of NFT activity for 2025 and 2024:

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| | |
|:---|:---|
|  | **Nonfungible**<br>**token assets** |
| Balance at December 31, 2023 | $51060 |
| Purchases of NFTs |  |
| Impairment | (51060) |
| Balance at December 31, 2024 | (0) |
| Purchases of NFTs |  |
| Impairment | - |
| Balance at December 31, 2025 | $(0) |

---

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**5.** **INTANGIBLE ASSETS** 

As of December 31, 2025, intangible assets, net consisted of:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Asset acquisition intangibles | $11942336 | $- |
| Business combination intangibles | 12785000 | - |
| &nbsp;&nbsp;&nbsp;Total | 24727336 |  |
| Less: Accumulated amortization | (1380688) | - |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | $23346647 | $- |

---

Amortization expense for the year ended December 31, 2025, was $1,380,688, which is included in general and administrative in the consolidated statements of operations.

Future amortization expense for the intangible assets is as follows:

---

| | |
|:---|:---|
| **Year ending December 31,** | |
| 2026 | 5001882 |
| 2027 | 4977757 |
| 2028 | 4669571 |
| 2029 | 1708955 |
| 2030 | 1693469 |
| Thereafter | 5,295,013 |
| Remaining unamortized | 23,346,647 |

---

**6.** **ACQUISITIONS** 

**Assets Acquisitions**

Summary of assets acquisitions:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **App Lock, LLC**<br>**January 24, 2025** | **Cleaner App**<br>**October 31, 2025** | **Gallery**<br>**August 22, 2025** |<br>**Total** |
| Fair value of considerations transferred |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $6584000 | $466200 | $906250 | $7956450 |
| &nbsp;&nbsp;&nbsp;Equity consideration (shares at fair value) | 2240000 |  | 28333 | 2268333 |
| &nbsp;&nbsp;&nbsp;Indemnification holdback | 1300000 | 51800 | 93750 | 1445550 |
| &nbsp;&nbsp;&nbsp;Shares Holdback – Indemnity |  |  | 28334 | 28334 |
| &nbsp;&nbsp;&nbsp;Revenue / indemnity share holdback |  |  | 170000 | 170000 |
| &nbsp;&nbsp;&nbsp;Transaction costs | 361219 | 10000 | - | 371219 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total purchase consideration | $10485219 | $528000 | $1226667 | $12239886 |
| Purchase price allocation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Intangible assets | $10220219 | $528000 | $1194116 | $11942335 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 407000 | $- | 40744 | 447744 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (142000) | $- | (8193) | (150193) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets acquired | $10485219 | $528000 | $1226667 | $12239886 |

---

 

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

*Applock App*

On January 24, 2025, the Company completed an asset acquisition of certain assets of Eywin Bilgi Teknolojileri A.S, a Turkish entity. Eywin develops mobile applications focused on security, privacy, device optimization, and health. Its product suite includes Applock Pro, VPN, Calculator Photo Vault Pro, and AI Trainer, solutions designed to address user needs through innovative methods and cross-platform functionality.

This transaction was accounted for as an asset acquisition under ASC 805 as it did not meet the definition of a business combination. In accordance with ASC 805-50, the total purchase consideration of approximately $10.5 million was allocated to the individual assets acquired based on their relative fair values. The identifiable intangible assets acquired primarily included Developed Technology (estimated fair value of $3.79 million, remaining economic life of 10 years), Trade Names/Trademarks ($0.30 million, 10 years) and Customer Relationships ($6.13 million, 9 years). No goodwill was recognized; instead, the value associated with the assembled workforce was pro-rated across the primary intangible assets. These assets are being amortized on a straight-line basis over their respective economic lives.

As of December 31, 2025, intangible assets were $10,220,219, net of $999,251 amortization expense for the year ended December 31, 2025.

 

*Cleaner App*

On October 31, 2025, the Company completed the acquisition of certain assets related to the "Cleaner: mobile phone cleaning" application. Management concluded the transaction was an asset acquisition under ASC 805-50 because substantially all of the fair value was concentrated in a group of similar identifiable assets (Technology and Customer Relationships), and no substantive processes or employees were acquired.

Allocation of Purchase Price The total acquisition cost was allocated to the acquired assets based on their relative fair values at the acquisition date. Because the total cost exceeded the aggregate appraised fair value of the individual assets, the excess was allocated pro rata to the non-financial intangible assets. No goodwill was recognized.

The Company allocated the purchase price to the following identifiable intangible assets: $409,441 to developed technology (5-year useful life), $55,144 to trademarks and trade names (5-year useful life), $34,465 to non-compete agreements (3-year useful life), and $28,950 to customer relationships (1-year useful life). Per ASC 805-50-30-3, no goodwill was recognized; instead, the value associated with the assembled workforce was pro-rated across the primary intangible assets. These assets are being amortized on a straight-line basis over their respective economic lives.

As of December 31, 2025, intangible assets were $528,000, net of $22,226 amortization expense for the year ended December 31, 2025.

 

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

 

*Gallery App*

On August 20, 2025, the Company acquired certain assets of the Gallery App from Gameadzone Private Limited for $1,250,000. The consideration consisted of $906,250 in cash, $28,333 in common stock, $93,750 cash holdback, $28,333 shares holdback and $170,000 revenue / indemnity share holdback. Management concluded the transaction was an asset acquisition under ASC 805-50 because substantially all of the fair value was concentrated in a group of similar identifiable assets (Technology and Customer Relationships), and no substantive processes or employees were acquired.

Allocation of Purchase Price The total acquisition cost was allocated to the acquired assets based on their relative fair values at the acquisition date. Because the total cost exceeded the aggregate appraised fair value of the individual assets, the excess was allocated pro rata to the non-financial intangible assets. No goodwill was recognized.

This transaction was accounted for as an asset acquisition under ASC 805 as it did not meet the definition of a business combination. In accordance with ASC 805-50, the total purchase consideration of $1,250,000 was allocated to the individual assets acquired based on their relative fair values. The identifiable intangible assets acquired primarily included Developed Technology (estimated fair value of $716,470, remaining economic life of 7.5 years), Trade Names/Trademarks ($59,705, 10 years), Customer Relationships ($417,941, 3 years), and working capital surplus of $32,551. No goodwill or bargain purchase gain was recognized in connection with this transaction.

As of December 31, 2025, intangible assets were $1,194,116, net of $80,271 amortization expense for the year ended December 31, 2025.

**Business Combinations**

Summary of business combinations:

---

| | | | |
|:---|:---|:---|:---|
|  | **Trimbox**<br>**December 23, 2025** | **NGL Labs LLC**<br>**December 1, 2025** |<br>**Total** |
| Fair value of considerations transferred |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $1850000 | $20531492 | $22381492 |
| &nbsp;&nbsp;&nbsp;Equity consideration (shares at fair value) | 607000 | 12073000 | 12680000 |
| &nbsp;&nbsp;&nbsp;Deferred Cash Consideration | 498690 |  | 498690 |
| &nbsp;&nbsp;&nbsp;Note payable (fair value) |  | 8909605 | 8909605 |
| &nbsp;&nbsp;&nbsp;Transaction expenses paid on behalf of sellers |  | 2139985 | 2139985 |
| &nbsp;&nbsp;&nbsp;Buyer expense reimbursement |  | (93343) | (93343) |
| &nbsp;&nbsp;&nbsp;Due from seller | - | (51379) | (51379) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total purchase consideration | $2955690 | $43509360 | $46465050 |
| Purchase price allocation: |  |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | $1049362 | $30690836 | $31740198 |
| &nbsp;&nbsp;&nbsp;Intangible assets | 1817000 | 10968000 | 12785000 |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | 50000 | 1031164 | 1081164 |
| &nbsp;&nbsp;&nbsp;Accounts receivable | 47889 | 2604652 | 2652541 |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | (8561) | (1785292) | (1793853) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net assets acquired | $2955690 | $43509360 | $46465050 |

---

*Trimbox*

In accordance with ASC 805, Business Combinations, the Company completed the acquisition of 100% of the equity interests of Trimbox, LLC on December 23, 2025. The transaction was accounted for as a business combination using the acquisition method of accounting. The total purchase consideration of $2,955,690 includes a deferred cash component of $498,690, equity consideration of $607,000 and cash of $1,850,000. Under ASC 805-30-25-5, these amounts are recognized at fair value as of the acquisition date as they represent contractual obligations to the sellers. The equity portion of the consideration consists of 3,333,333 shares of Class AAA common stock, which were valued based on an independent third-party valuation in accordance with ASC 820, *Fair Value Measurement*.

The Company has preliminarily allocated the total purchase price of $2,955,690, $1,817,000 to the intangible assets financial statement line item, which represents the fair value of the acquired technology, a working capital surplus of $89,328 and residual value of $1,049,362 in goodwill. The purchase price allocation is preliminary and provisional and subject to adjustment during the measurement period (up to one year from the acquisition date) as the Company finalizes its assessment of the fair values of assets acquired and liabilities assumed. Pursuant to ASC 350, *Intangibles—Goodwill and Other*, the portion of this balance attributable to goodwill is not subject to amortization but is evaluated for impairment at least annually.

In accordance with ASC 805-10-50, the Company recognized $97,053 in acquisition-related transaction costs, which were expensed as incurred and are included in general and administrative expenses for the period ended December 31, 2025. The results of operations for Trimbox, LLC have been included in the Company's consolidated financial statements from the date of acquisition.

 

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

*NGL Labs*

On December 1, 2025, the Company completed the acquisition of 100% of the equity interests of NGL Labs LLC. The transaction was accounted for as a business combination under the acquisition method of accounting in accordance with ASC 805. Under this method, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The results of NGL Labs LLC's operations have been included in the Company's consolidated financial statements since the date of acquisition.

The total GAAP purchase price of $43,509,360 included $20,531,493 in cash paid to sellers at closing and $2,139,986 paid on behalf of sellers for transaction expenses, offset by a $93,343 reimbursement for the buyer's portion of specific fees. Equity consideration consisted of rollover and deferred shares with a fair value of $12,073,000. Additional components included a promissory note with a fair value of $8,909,605, and a net working capital adjustment of $51,379.

The Company has preliminarily allocated the total purchase price of $43,509,360, $10,968,000 to the intangible assets financial statement line item, which represents the fair value of the acquired technology, a working capital surplus of $1,850,524 and residual value of $30,690,837 in goodwill. The purchase price allocation is preliminary and provisional and subject to adjustment during the measurement period (up to one year from the acquisition date) as the Company finalizes its assessment of the fair values of assets acquired and liabilities assumed. Pursuant to ASC 350, *Intangibles—Goodwill and Other*, the portion of this balance attributable to goodwill is not subject to amortization but is evaluated for impairment at least annually.

*Selected Unaudited Pro Forma Combined Financial Information*

The following unaudited supplemental pro forma financial information presents the combined results of operations of the Company, NGL and Trimbox as if the acquisitions had occurred on January 1, 2024. The pro forma information has been prepared for illustrative purposes only and does not purport to represent what the Company's results of operations would have been had the acquisitions occurred on such date, nor is it necessarily indicative of the Company's future results of operations. [ASC 805-10-50-2(h)]

---

| | | |
|:---|:---|:---|
|  | **Unaudited Pro Forma** | **Unaudited Pro Forma** |
|  | **Year ended December 31, 2025** | **Year ended December 31, 2024** |
| Net revenues | $43231328 | $33053478 |
| Income (loss) from operations | 7745870 | (3618626) |
| Net loss per common share – basic and diluted | $(0.006) | $(0.004) |

---

From a consolidated basis, the acquisitions have added significant revenue, gross profit, and net income to the historical results of Mode Mobile. For the year ended December 31, 2025, the combined entities generated unaudited pro forma net revenues of $43,231,328 and net income from operations of $7,745,870. For the year ended December 31, 2024, the combined entities generated unaudited pro forma net revenues of $33,053,478 and net loss from operations of $(3,618,626).

The Company expects minimal impact to its historical balance sheet because of the acquisition. For the year ended December 31, 2025, the combined entities had pro forma unaudited current assets of $22,246,726, including $10,042,770 of cash and cash equivalents. There was a significant increase in the pro forma unaudited non-current assets of the combined entities, which was $55,116,503. This increase was primarily related to the purchase price of NGL and partially offset by amortization on the intangible assets recorded as a result of the acquisition.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**7.** **NOTE PAYABLE** 

 

*NGL Note*

In connection with the acquisition of NGL Labs LLC on December 1, 2025, the Company issued a Promissory Note (the 'Note') to the former members of NGL Labs LLC. The Note has a principal amount of $10,424,279 with pre-computed interest of $575,721 at the short-term Applicable Federal Rate (AFR) of 3.66%, for a total obligation of $11,000,000. The Note is payable in two equal annual installments of $5,500,000, due on December 1, 2026 and December 1, 2027, respectively.

In accordance with ASC 805-30-30-7, the Note was measured at fair value on the acquisition date. Management engaged an independent valuation firm (Scalar) to determine the fair value of the Note, which was determined to be $8,909,605. The fair value was estimated using a discounted cash flow model with a cost of debt of 14.2%, reflecting the credit risk of the borrower. The Note is subsequently measured at amortized cost using the effective interest method per ASC 835-30. Interest expense is recognized using the effective interest rate over the term of the Note.

 

*Senior Secured Note*

During 2025, the Company issued $12,000,000 in senior secured notes with attached warrants to a third-party lender. The January 2025 issuance included 6,000,000 warrants with a $0.125 exercise price, while the December 2025 issuance included 2,800,000 warrants at a $0.250 exercise price. Both notes carry a 13.25% stated interest rate and a 36-month term.

The warrants are classified as derivative liabilities in accordance with ASC 815-10-15. Equity classification is precluded under ASC 815-40 and ASC 480 due to weighted-average anti-dilution provisions and holder put options that may require cash settlement. As of December 31, 2025, the warrant liability is recorded at $1,546,592, based on independent fair value measurements performed by Scalar. The January 2025 warrants were valued at $639,616 and the December 2025 warrants were valued at $906,976. These instruments are re-measured to fair value at each reporting date using Level 2 inputs, with changes in fair value recognized in current period earnings.

The fair value assigned to the warrants of $1,546,592 created a corresponding debt discount, which is presented as a reduction of the face amount of the notes. This discount is amortized to interest expense over the 36-month term of the notes using the effective interest method in accordance with ASC 470-20-35-3. As of December 31, 2025, the unamortized debt discount is $1,340,785. For the year ended December 31, 2025, the Company recorded $178,842 in interest expense related to the amortization of this discount.

 

*High-Yield Retail Promissory Notes*

During October and November 2025, the Company issued short-term promissory notes to individual investors totaling $4,414,231 in aggregate principal. The notes bear interest at rates ranging from 12% to 18% per annum, with interest payable monthly and principal due in full one year from the date of issuance, with the Company having the option to extend the repayment by one year.. All notes are classified as current liabilities as of December 31, 2025.

Summary of note payable as of December 31, 2025 is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Description | Rate | Maturity | Face Amount | Current Portion | Long-Term Portion |
| PFG Senior Secured Note - AppLock Tranche | 13.25% | Jan-28 | 4166667 | 2000000 | 2166667 |
| PFG Senior Secured Note - NGL Tranche | 13.25% | Dec-28 | 7000000 | 1400000 | 5600000 |
| NGL Labs LLC Promissory Note | 3.66% | Dec-27 | 10424279 | 5118471 | 5305807 |
| High-Yield Retail Promissory Notes | 12%–18% | 2026 | 4414231 | 4414231 | - |
| Total face value of notes payable |  |  | 26005177 | 12932703 | 13072474 |
| Less: unamortized debt discount |  |  | (2937799) |  | (2937799) |
| Notes payable, net |  |  | 23067378 | 12932703 | 10134675 |

---

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

The following table presents scheduled future principal maturities of all notes payable as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Year** | **PFG - AppLock** | **PFG - NGL** | **NGL Note - Principal** | **High-Yield Notes** | **Total** |
| 2026 | $2000000 | $1400000 | $5118471 | $4414231 | $12932703 |
| 2027 | 2000000 | 2800000 | 5305807 |  | 10105807 |
| 2028 | 166667 | 2800000 | - | - | 2966667 |
| Total | 4166667 | 7000000 | 10424279 | 4414231 | 26005177 |
| Less: unamortized debt discount |  |  |  |  | (2937799) |
| Notes payable, net |  |  |  |  | $23067378 |

---

**8.** **STOCKHOLDERS' EQUITY** 

 ****

***Convertible Preferred Stock***

The Company has issued Series Seed convertible preferred stock. The Company's certificate of incorporation, as amended and restated, authorized the Company to issue a total of 388,800,000 shares of Preferred Stock, of which all are designated as Series Seed Preferred Stock. The Preferred Stock have a par value of $0.0001 per share.

The holders of the Preferred Stock have the following rights and preferences:

*Voting* 

On any matter presented to the stockholders of the Company for their action or consideration at any meeting of stockholders of the Company (or by written consent of stockholders in lieu of a meeting), each holder of outstanding shares of Preferred Stock shall be entitled to cast the number of votes equal to the number of whole shares of Common Stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of the Company's Amended and Restated Certificate of Incorporation, holders of Preferred Stock shall vote together with the holders of Common Stock as a single class and on an as converted to Common Stock basis.

The Company shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the written consent or affirmative vote of at least a majority of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted to Common Stock basis:

---

| |
|:---|
| purchase or pay or declare any dividend on any capital stock other than (i) dividends payable on the Common Stock solely in the form of additional shares of Common Stock, (ii) redemptions of dividends or distributions on the Series Seed Preferred stock and (iii) stock repurchased from former employees, officers, directors or others who performed services for the Company |
| create or hold capital stock in any subsidiary that is not a wholly-owned subsidiary |

---

At any time when at least 70,596,360 shares of Series Seed Preferred Stock remain outstanding, the Company shall not, either directly or indirectly by amendment, merger, consolidation or otherwise, without the written consent or affirmative vote of at least a majority of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted to Common Stock basis, amend, alter or repeal any provision of the Company's Amended and Restated Certificate of Incorporation or Bylaws of the Company in a manner that substantially and disproportionally adversely affects the powers, preferences or rights of the Series Seed Preferred Stock.

*Dividends*

The Company shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company unless (in addition to the obtaining of any consents required elsewhere in the Company's Amended and Restated Certificate of incorporation) the holders of the Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Preferred Stock as defined in the Company's Amended and Restated Certificate of Incorporation. The Preferred Stock dividend rates contain certain dilution protections.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

*Liquidation*

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company, the holders of shares of each series of Preferred Stock then outstanding shall be entitled to be paid out of the assets of the Company available for distribution to its stockholders and, in the event of a deemed liquidation event, the holders of shares of each series of Preferred Stock then outstanding shall be entitled to be paid out of the consideration payable to stockholders in such deemed liquidation event or out of the available proceeds, as applicable, on a pari passu basis among each other, the greater of (i) an amount per share equal to one times the applicable Original Issue Price (as defined below), plus any dividends declared but unpaid thereon, payable before any payment shall be made to the holders of Common Stock by reason of their ownership thereof (the amounts payable pursuant to this clause (i) are hereinafter referred to as the "Preferred Liquidation Amounts"), or (ii) such amount per share as would have been payable had all shares of such series of Preferred Stock (and all shares of all other series of Preferred Stock that would receive a larger distribution per share if such series of Preferred Stock and all such other series of Preferred Stock were converted into Common Stock) been converted into Common Stock immediately prior to such liquidation, dissolution, winding up or deemed liquidation event. If, upon any such liquidation, dissolution or winding up of the Company or deemed liquidation event, the assets of the Company available for distribution to its stockholders shall be insufficient to pay the holders of shares of Preferred Stock the full amount to which they shall be entitled, the holders of shares of Preferred Stock shall share ratably in any distribution of the assets available for distribution in proportion to the respective amounts which would otherwise be payable in respect of the shares held by them upon such distribution if all amounts payable on or with respect to such shares were paid in full.

The Series Seed Original Issue Price is $0.01345679 per share, subject to appropriate adjustment in the event of any stock dividend, stock split, combination or other similar recapitalization with respect to the Series Seed Preferred Stock. After payment of the Preferred Liquidation Amounts, remaining assets are distributed ratably to holders of Common Stock.

The liquidation preference as of December 31, 2025 and 2024 was $4,651,469 and $4,759,840, respectively.

*Anti-Dilution Rights*

 

Holders of Series Seed Preferred Stock have the benefit of anti-dilution protective provisions that will be applied to adjust the number of shares of Common Stock issuable upon conversion of the shares of the Preferred Stock. If equity securities are subsequently issued by the Company at a price per share less than the conversion price of a series of Preferred Stock then in effect, the conversion price of the affected series of Preferred Stock will be adjusted using a broad-based, weighted-average adjustment formula as set out in the Company's Amended and Restated Certificate of Incorporation. Preferred Stock has certain protections against additional issuances of Common Stock.

*Conversion*

 

Each share of Series Seed Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into such number of fully paid and non-assessable shares of Class A Common Stock as is determined by dividing the applicable original issue price by the applicable conversion price in effect at the time of conversion. The Series Seed conversion price is $0.01345679 per share.

Additionally, each share of Series Seed Preferred Stock will automatically convert into shares of Class A Common Stock (i) immediately prior to the closing at a price of at least 3 times the Series Seed Original Issue Price of a firm commitment underwritten public offering, registered under the Securities Act of 1933, as amended (the "Securities Act") or (ii) a vote or written consent of a majority of the outstanding shares of Preferred Stock, voting together as a single class on an as-converted to Common Stock basis, and a vote of the key holders of common stock, as defined in the Company's Amended Articles of Incorporation.

 ****

***Common Stock***

The Company authorized 2,431,000,000 shares of Class A Common Stock, 298,000,000 shares of Class B Common Stock, 12,150,000 shares of Class C Common Stock and 876,000,000 shares of Class AAA Common Stock at $0.0001 par value as of December 31, 2025.

The holders of the Class A common stock are entitled to one vote for each share of such stock held at all meetings of stockholders. There shall be no cumulative voting, and the holders of shares of Class B, Class C and Class AAA common stock shall not be entitled to vote. The holders of record of Class A Common Stock exclusively shall be entitled to elect all directors of the Company.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

The Company shall not declare, pay or set aside any dividends on shares of any other class or series of capital stock of the Company unless (in addition to the obtaining of any consents required elsewhere in the Company's Amended and Restated Certificate of Incorporation) the holders of the Preferred Stock then outstanding shall first receive, or simultaneously receive, a dividend on each outstanding share of Preferred Stock as defined in the Company's Amended and Restated Certificate of Incorporation.

Additionally, each share of Class B Common Stock, Class C Common Stock or Class AAA Common Stock will automatically convert into shares of Class A Common Stock (i) immediately prior to the closing of a firm commitment underwritten public offering, registered under the Securities Act of 1933, as amended (the "Securities Act") or (ii) upon election from the Company's board of directors..

During the year ended December 31, 2024, option holders exercised 10,774,734 options for shares of Class B common stock for proceeds of $9,482.

During the year ended December 31, 2024, the Company issued 88,340,056 shares of Class AAA common stock for gross proceeds of $10,496,376 pursuant to a Regulation CF offering. In connection with the offering, the Company incurred $1,484,912 in offering costs.

During the year ended December 31, 2025, 8,053,255 Series Seed Preferred shares, 18,954,782 Class A shares, 1,526,425 Class B shares, and 146,718 Class C shares were converted into 28,681,180 shares of Class AAA common stock.

During the year ended December 31, 2025, option holders exercised 2,988,322 options for shares of Class B common stock for $12,515 in proceeds.

During the year ended December 31, 2025, the Company issued 285,937,828 shares of Class AAA common stock and 100,000 shares of Class C common stock for gross proceeds of $47,902,612 pursuant to a Regulation CF offering. In connection with the offering, the Company incurred $29,765,946 in offering costs.

During the year ended December 31, 2025, the Company issued an aggregate of 72,666,668 shares of Class AAA common stock and 208,334 shares of Class C common stock pursuant to business and assets acquisitions for the fair value of an aggregate equity consideration of $14,951,250. See Note 6.

During the year ended December 31, 2025, the Company issued 8,301,923 shares of Class AAA common stock for gross proceeds of $1,000,000.

As of December 31, 2025 and 2024, there were 627,870,232 and 646,825,014 shares of Class A Common Stock issued and outstanding. As of December 31, 2025 and 2024, there were 22,199,069 and 20,737,172 shares of Class B Common Stock issued and outstanding, respectively. As of December 31, 2025 and 2024, there were 11,155,245 and 10,993,629 shares of Class C Common Stock issued and outstanding, respectively. As of December 31, 2025 and 2024, there were 544,907,998 and 149,320,399 shares of Class AAA Common Stock issued and outstanding, respectively.

**9.** **STOCK- BASED COMPENSATION** 

***2021 Stock Plan***

The Company has adopted the 2021 Equity Incentive Plan ("2021 Plan"), which provides for the grant of shares of stock options and restricted stock awards to employees, non-employee directors, and non-employee consultants. The number of shares authorized by the 2021 Plan was 243,000,000 shares as of December 31, 2025. The options have a term of ten years. The amount granted each calendar year to an employee or non-employee is limited depending on the type of award. Stock options comprise all of the awards granted since the 2021 Plan's inception. Stock options granted under the 2021 Plan typically vest between immediate and four-year periods. As of December 31, 2025, there were 11,024,696 shares available for future issuance.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

A summary of information related to stock options is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options** | **Weighted Average Exercise Price** | **Intrinsic Value** | **Weighted Average Remaining Life** |
| Outstanding as of December 31, 2023 | 212630695 | $0.03 | $5530000 |  |
| Granted | 32713753 | 0.01 |  |  |
| Exercised | (10609345) | 0.03 |  |  |
| Forfeited | (25021875) | 0.03 |  |  |
| Outstanding as of December 31, 2024 | 209713228 | $0.02 | $4910428 | 3.20 |
| Granted | 26679536 | 0.05 |  |  |
| Exercised | (2988322) | 0.02 |  |  |
| Forfeited | (154632) | 0.01 |  |  |
| Outstanding as of December 31, 2025 | 233249810 | $0.03 | $6142079 | 2.34 |
| Exercisable as of December 31, 2025 | 188480017 | $0.03 | $4963173 |  |
| Exercisable as of December 31, 2024 | 152122755 | $0.02 | $3042455 |  |

---

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Weighted average grant-date fair value of options granted during year | $0.04 | $1.00 |
| Weighted average duration (years) to expiration of outstanding options at year-end | 7.56 | 8.33 |

---

During the year ended December 31, 2024, option holders exercised 10,774,734 options for shares of Class B common stock for proceeds of $9,482.

During the year ended December 31, 2025, option holders exercised 2,988,322 options for shares of Class B common stock for $12,515 in proceeds.

The following table presents, on a weighted average basis, the assumptions used in the Black-Scholes option-pricing model to determine the grant-date fair value of stock options granted to employees and directors:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Risk-free interest rate | 3.77%-4.57 | 3.60%-4.80 |
| Expected term (in years) | 5.49 | 5.06 |
| Expected volatility | 80.00% | 80.00% |
| Expected dividend yield | 0% | 0% |

---

The total grant-date fair value of the options granted during the years ended December 31, 2025 and 2024 was $962,902 and $327,138 respectively. Stock-based compensation expense for stock options of $856,980 and $755,686 respectively, was recognized under FASB ASC 718 for the years ended December 31, 2025, and 2024, respectively. Total unrecognized compensation cost related to non-vested stock option awards amounted to $2,636,786 as of December 31, 2025 and will be recognized over a weighted average period of 2.34 years as of December 31, 2025.

 ****

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

***Classification***

 ****

Stock-based compensation expense was classified in the consolidated statements of operations as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** |
|  | **2025** | **2024** |
| Sales and marketing | $645471 | $610899 |
| Research and development | 94268 | 85195 |
| General and administrative | 85698 | 79592 |
|  | $825437 | $775686 |

---

***Warrants***

During 2025, the Company issued $12,000,000 in senior secured notes with attached warrants to a third-party lender. The January 2025 issuance included 6,000,000 warrants with an exercise price of $0.125 per share, and the December 2025 issuance included 2,800,000 warrants with an exercise price of $0.250 per share. Both notes bear interest at 13.25% and have a 36-month term. The warrants are classified as liabilities and are measured at fair value at issuance and re-measured at fair value at each reporting date, with changes in fair value recognized in earnings. The initial fair value assigned to the warrants was recorded as a debt discount and is amortized to interest expense over the term of the related notes using the effective interest method.

A summary of information related to warrants is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Options** | **Weighted Average Exercise Price** | **Intrinsic Value** | **Weighted Average Remaining Life** |
| Outstanding as of December 31, 2024 |  | $- | $- |  |
| Granted | 8800000 | 0.16 |  | 6.37 |
| Exercised |  |  |  |  |
| Forfeited | - |  |  |  |
| Outstanding as of December 31, 2025 | 8800000 | $0.16 | $2950000 | 6.37 |

---

The warrants are classified as derivative liabilities in accordance with ASC 815-10-15. Equity classification is precluded under ASC 815-40 and ASC 480 due to weighted-average anti-dilution provisions and holder put options that may require cash settlement. The warrant liability at issuance was $1,546,592, based on independent fair value measurements performed by Scalar. The January 2025 warrants were valued at $639,616 and the December 2025 warrants were valued at $906,976. These instruments are re-measured to fair value at each reporting date using Level 2 inputs, with changes in fair value recognized in current period earnings. As of December 31, 2025, the full face amount of this initial fair value, together with the fair value of warrants remeasured at fair value under ASC 350-60 was $2,080,315. For the year ended December 31, 2025, the Company recognized a loss on change in fair value of warrant liabilities of $533,723, recorded in other expense in the consolidated statements of operations.

---

| | |
|:---|:---|
|  | **Warrant**<br>**liability** |
| Issuance of warrant - January 24, 2025 | 639616 |
| Issuance of warrant - December 23, 2025 | 906976 |
| Change in fair value | 533723 |
| Balance, December 31, 2025 | $2080315 |

---

The fair value assigned to the warrants of $1,546,592 at issuance created a corresponding debt discount, which is presented as a reduction of the face amount of the notes. This discount is amortized to interest expense over the 36-month term of the notes using the effective interest method in accordance with ASC 470-20-35-3. For the year ended December 31, 2025, the Company recorded $178,842 in interest expense related to the amortization of this discount. As of December 31, 2025, the unamortized debt discount is $1,340,785.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

The following table presents the assumptions used in the Black-Scholes option-pricing model to determine the fair value of the warrants as of January 24, 2025 and December 23, 2025, respectively, and the remeasurement as of December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **January 24, 2025<br> (Issuance)** | **December 23, 2025<br> (Issuance)** | **December 31, 2025<br> (Remeasurement)** |
| **January 2025 Warrants:** |  |  |  |
| Stock price | $0.06 |  | $0.18 |
| Exercise price | $0.13 |  | $0.13 |
| Put strike price | $0.24 |  | $0.24 |
| Expected volatility | 65.0% |  | 65.0% |
| Risk-free interest rate | 4.43% |  | 3.86% |
| Expected term (years) | 7.00 |  | 6.07 |
| Dividend yield | 0% | - | 0% |
| **Fair value per warrant** | $**0.107** | - | $**0.196** |
| **December 2025 Warrants:** |  |  |  |
| Stock price |  | $0.18 |  |
| Exercise price |  | $0.25 |  |
| Put strike price |  | $0.57 |  |
| Expected volatility |  | 65.0% |  |
| Risk-free interest rate |  | 3.86% |  |
| Expected term (years) |  | 7.01 |  |
| Dividend yield | - | 0% | - |
| **Fair value per warrant** | - | $**0.324** | - |

---

**10.** **RELATED PARTY TRANSACTIONS** 

 

*Payable to Shareholders*

In connection with the Company's Regulation A+ offering, certain existing security holders (the "Selling Shareholders") were permitted to sell their existing shares to new investors through the offering. Proceeds attributable to Selling Shareholder shares were collected by the Company and recorded as a liability upon receipt. As of December 31, 2024, the outstanding balance owed to Selling Shareholders was $1,265,000. During the year ended December 31, 2025, the Company remitted all amounts due, and the balance was fully paid as of December 31, 2025. Accordingly, there is no outstanding payable to shareholders as of December 31, 2025.

 

*High-Yield Note Holders*

In connection with the high-yield note offering during October and November 2025, employees and members of management that were designated as accredited investors were permitted to invest.

 

*EARNM Foundation*

During the year ended December 31, 2024, the Company provided services to Current (Gibraltar) Limited pursuant to a services agreement. During this period, CGL was treated as a related party, as Mode Mobile, LLC held 100% of the voting rights in CGL with 0% economic interest retained. CGL was not consolidated and was accounted for as an unconsolidated variable interest entity. Revenue recognized from CGL during the year ended December 31, 2024 was $1,851,240.

Effective December 31, 2024, CGL began wind-down efforts and a new arms-length entity, EARNM Foundation, was established. The Company entered into a services agreement with EARNM Foundation to provide supporting operational services. EARNM Foundation is not a related party of the Company. As of December 31, 2025, the Company has recorded a receivable of $800,038, and $230,000 as of December 31, 2024 due from EARNM Foundation arising from services provided under the agreement. The receivable is classified as a current asset based on management's expectation of collection within twelve months of the balance sheet date. No allowance for credit loss has been recorded as of December 31, 2025, as management believes the balance is fully collectible. Formal repayment terms have not yet been finalized as of the date of issuance of these consolidated financial statements. The Company will update this disclosure upon execution of definitive repayment terms.

 

*Indemnification Holdback*

The Company owed an indemnification holdback of $1,975,490 pursuant to acquisitions completed during the year ended December 31, 2025. These holdback amounts are maintained to cover potential claims under the terms of the acquisition agreements and are distinct from direct shareholder payables.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**11.** **DISAGGREGATION OF INCOME STATEMENT EXPENSES** 

 

The Company adopted ASU 2024-03, Disaggregation of Income Statement Expenses, effective December 31, 2025. The Company applies the expense-incurred basis of disclosure.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cost of Net Revenues** | **Sales & Marketing** | **Research & Development** | **General & Administrative** | **Total 2025** |
| Employee compensation (a) | $- | $1412903 | $3979361 | $4219588 | $9611853 |
| Depreciation expense |  |  |  | 8881 | 8881 |
| Intangible asset amortization expense |  | 721790 | $656984 | 1915 | 1380688 |
| Ohter costs of net revenues (b) | 1706869 |  |  |  | 1706869 |
| Other selling, general & administrative (c) | - | 8438855 | 585304 | 3029866 | 12054024 |
| Total | $1706869 | $10573548 | $5221648 | $7260249 | $24762315 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(a) Employee
 compensation includes wages, bonuses, payroll taxes, employee benefits, and stock-based compensation.

(b) Other
 costs of net revenues include third-party hosting costs, payment processing fees, and other
 direct costs of delivering the Company's services.

(c) Other
 selling, general and administrative costs include marketing program costs, professional fees,
 insurance, software and tooling, and overhead not separately disaggregated above.

**12.** **SEGMENT REPORTING** 

The Company operates in a single reportable segment. The Company manages a portfolio of mobile applications that generate revenue primarily through subscription and advertising services. Four operating components were identified during fiscal year 2025 — Mode Mobile, LLC; Applock (including Gallery); NGL Labs, LLC; and Emerging Apps — and have been aggregated into a single reportable segment under ASC 280-10-50-11 based on similar economic characteristics and shared qualitative attributes, including nature of products and services, production processes, customer type, methods of distribution, and regulatory environment.

 

*Chief Operating Decision Maker*

The Company's CODM is Dan Novaes, Chief Executive Officer and Co-Founder. Mr. Novaes has ultimate authority over resource allocation and performance assessment across all operating components and reviews a monthly financial packet containing the measures described below.

 

*Measure of Segment Profit or Loss*

The CODM uses Contribution Margin as the primary measure of segment profit or loss. Contribution Margin represents revenue less direct cost of revenues, user redemptions and fees, and customer acquisition costs, and is used primarily to guide marketing spend decisions. The CODM also monitors EBITDA (after shared services allocations) to assess overall segment health. Consolidated net loss is the measure most consistent with U.S. GAAP and is reconciled in the table below.

 

*Segment Assets*

The Company manages total assets at the consolidated level. Discrete asset information is not regularly provided to or reviewed by the CODM at the individual operating component level; accordingly, no segment asset allocation is presented.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

Summary of segment reporting is as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2025** | **2025** | **2025** | **2025** | **2025** | **2024** |
|  | **Mode Mobile, LLC** | **Applock (incl. Gallery)** | **NGL Labs, LLC** | **Emerging Apps** | **Consolidated Total** | **Mode Mobile, LLC** |
| Net revenues | $12781018 | $7652347 | $1657813 | $60457 | $22151635 | $12136295 |
| Cost of sales | 1191764 | - | 515105 | - | 1706869 | 1116359 |
| Gross profit | 11589254 | 7652347 | 1142708 | 60457 | 20444766 | 11019936 |
| Total costs and expenses | 17271960 | 3588309 | 3891309 | 10737 | 24762315 | 15799986 |
| Income (loss) from operations | (4490942) | 4064038 | (2233496) | 49720 | (2610680) | (3663691) |
| Other (expense) income | (1102489) |  | 354 |  | (1102135) | 426982 |
| Provision for income tax |  |  |  |  | (2172432) | (277743) |
| Net income (loss) | $(5593431) | $4064038 | $(2233142) | $49720 | $(5885247) | $(3514452) |
| TOTAL ASSETS |  |  |  |  |  |  |
| Total assets | $- | $- | $- | $- | $73404086 | $14530509 |

---

**13.** **INCOME TAXES** 

Prior to February 25, 2021 (see Note 1), the Company was a limited liability company. Accordingly, taxable income and losses flowed to the members and the Company had no tax effects.

The provision for income taxes consists of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December** | **December** |
|  | **2025** | **2024** |
| Current - Federal | $130590 | $227449 |
| Current - State | 79688 | 50294 |
| Deferred - Federal | 1731697 |  |
| Deferred - State | 230548 | - |
| Total provision | $**2172432** | $**277743** |

---

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes.The significant components of the Company's deferred tax assets and liabilities are as follows:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December** | **December** |
|  | **2025** | **2024** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss | $118488 | $118488 |
| &nbsp;&nbsp;&nbsp;Credits | 85042 | 2488 |
| &nbsp;&nbsp;&nbsp;Capitalized research costs | 738457 | 183583 |
| &nbsp;&nbsp;&nbsp;NQO & RSA stock options | 49701 | 23734 |
| &nbsp;&nbsp;&nbsp;Accruals and reservs | 152048 | 152051 |
| &nbsp;&nbsp;&nbsp;Other | 130321 | 10562 |
| &nbsp;&nbsp;&nbsp;Gross deferred tax assets | 1274055 | 490905 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | - | - |
|  | 1274055 | 490905 |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Intangibles | (2718578) | 29620 |
| &nbsp;&nbsp;&nbsp;Fixed assets | (936) | (908) |
| &nbsp;&nbsp;&nbsp;Capitalized acquisition costs - asset deals | 2923 | - |
|  | (2716592) | 28712 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax asset | $(1442537) | $519617 |

---

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

As of December 31, 2025, the Company's net deferred tax assets of ($1,442,537). As of December 31, 2024, net deferred tax assets of $519,617Deferred tax assets were calculated using the Company's combined effective statutory tax rate of 22.3% (federal rate of 21% and combined state rate of 1.3%, net of federal benefit).

 

*Valuation Allowance:*

Management regularly assesses the ability to realize deferred tax assets recorded based upon the weight of available evidence, including such factors as recent earnings history and expected future taxable income on a jurisdiction by jurisdiction basis. In the event that the Company changes its determination as to the amount of realizable deferred tax assets, the Company will adjust its valuation allowance with a corresponding impact to the provision for income taxes in the period in which such determination is made. The Company's management believes that, based on a number of factors, it is more likely than not, that all or some portion of the deferred tax assets will not be realized; and accordingly, for the year ended December 31, 2025 the Company has provided a valuation allowance against the Company's U.S. net deferred tax assets. The net change in the valuation allowance for the year ended December 31, 2025 was $0.

 

*Rate Reconciliation:*

The following table presents a reconciliation of the Company's income tax provision to the amount computed by applying the U.S. federal statutory rate of 21% to pre-tax loss:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December** | **December** |
|  | **2025** | **2024** |
| Statutory federal rate | 21.00% | 21.00% |
| State taxes, net of federal | 1.30% | 1.19% |
| Permanent differences | -9.30% | 16.95% |
| Other | 11.10% | 5.43% |
| Change in valuation allowance | -95.65% | -17.63% |
| Effective tax rate | -71.55% | 26.94% |

---

*Net Operating Loss Carryforwards:*

As of December 31, 2025, the Company had net operating loss carryforwards for federal and state income tax purposes of approximately $0 and $1,599,123, respectively.

As of December 31, 2025, the Company had federal and state research credit carryforwards of approximately $110,072 and $4,199, respectively. The federal research credit carryforwards will begin to expire in 2036 while the California research credits carry forward have an indefinite life.

The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of net operating losses in the event of an "ownership change" of a corporation. Accordingly, a company's ability to use net operating losses may be limited as prescribed under Internal Revenue Code Section 382 ("IRC Section 382"). Events which may cause limitations in the amount of the net operating losses that the Company may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the federal and state net operating losses may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions.

*Uncertain Tax Positions:*

As of December 31, 2025, and 2024, the total amount of gross unrecognized tax benefits was $1,050 and $28,568, respectively, including $0 and $0 of interest and penalties. As of December 31, 2025, $0 of the total unrecognized tax benefits, if recognized, would have an impact on the Company's effective tax rate. The Company estimates that there will be $0 no material changes in its uncertain tax positions in the next 12 months. The Company's policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense.

The Company files income tax returns in the US federal, various state, and foreign jurisdictions with varying statutes of limitations. The Company is generally no longer subject to tax examinations for years prior to for federal purposes and for state purposes, except in certain limited circumstances.

**MODE MOBILE, INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**As of and for the years ended December 31, 2025 and 2024**

**14.** **COMMITMENTS AND CONTINGENCIES** 

 

*Contingencies*

The Company may be subject to pending legal proceedings and regulatory actions in the ordinary course of business. The results of such proceedings cannot be predicted with certainty, but the Company does not anticipate that the final outcome, if any, arising out of any such matters will have a material adverse effect on its business, financial condition or results of operations.

**15.** **SUBSEQUENT EVENTS** 

*High-Yield Retail Promissory Notes Series II*

During February and March 2026, the Company issued short-term promissory notes to individual investors totaling $4,938,623 in aggregate principal. The notes bear interest at rates ranging from 12% to 18% per annum, with interest payable monthly and principal due in full one year from the date of issuance, with the ability to extend repayment by one year by the Company. All notes are classified as current liabilities.

 

*Partners For Growth Senior Secured Note*

On March 19, 2026, the Company entered into a term sheet with Partners For Growth to upsize the current facility by $3,000,000. This loan has the same terms as the existing facility, including a 36 month term with 13.25% annual interest. Management is negotiating final documentation and expects drawdown to be completed the first week of May.

*Regulation A+ Fundraise*

On March 23, 2026, the Company launched a Regulation A+ crowdfund issuing up to 66,095,230 Class AAA shares for cash consideration of up to $33,047,615, net of $11,383,166 available to selling security holders. As of April 27, 2026, the Company has received $927,784 in funds from the raise.

*QR Code App Acquisition*

On March 2, 2026, the Company acquired certain assets of the QR Code App via asset acquisition. The purchase price allocation for this transaction is currently being finalized and will be disclosed in the Company's subsequent interim financial statements. Management does not believe this acquisition will have a material retrospective effect on the December 31, 2025 consolidated financial statements.

Management has evaluated subsequent events through April 29, 2026, the date the financial statements were available to be issued. Based on this evaluation, no additional material events were identified which require adjustment or disclosure in these consolidated financial statements.