# EDGAR Filing Document

**Accession Number:** 0001851491
**File Stem:** 0001575872-26-000349
**Filing Date:** 2026-5
**Character Count:** 63283
**Document Hash:** 5c5f52b5a16d2b429130f218bcdd0419
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001575872-26-000349.hdr.sgml**: 20260520

**ACCESSION NUMBER**: 0001575872-26-000349

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20260519

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260520

**DATE AS OF CHANGE**: 20260520

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** AMASS BRANDS
- **CENTRAL INDEX KEY:** 0001851491
- **STANDARD INDUSTRIAL CLASSIFICATION:** BEVERAGES [2080]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 815227282
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43286
- **FILM NUMBER:** 261001551

**BUSINESS ADDRESS:**
- **STREET 1:** 927 SOUTH SANTA FE AVENUE
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90021
- **BUSINESS PHONE:** 7209379286

**MAIL ADDRESS:**
- **STREET 1:** 927 SOUTH SANTA FE AVENUE
- **CITY:** LOS ANGELES
- **STATE:** CA
- **ZIP:** 90021

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

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): May 19, 2026

**AMASS BRANDS INC**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware**<br>| **001-43286**<br>| **81-5227282**<br>|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission File Number) | (I.R.S. Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| 860 E Stowell Road<br>**Santa Maria, CA**<br>| **93454**<br>|
| (Address of principal executive offices)  | (Zip Code) |

---

(909) 293-8571

Registrant's telephone number, including area code:

**Not Applicable**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (*see* General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

<u>Title of Class</u> <u>Trading Symbol</u> <u>Name of Exchange On Which Registered</u> <br> Common Stock AMSS Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company ⌧

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

**Item 5.03. Amendments to Articles of Incorporation of Bylaws; Change in Fiscal Year.**

On May 19, 2026, AMASS Brands Inc (the "**Company**") filed with the Secretary of State of the State of Delaware a Certificate of Designation of Preferences and Rights of Series C Convertible Preferred Stock (the "**Certificate of Designation**"). The Certificate of Designation provides for the creation of 35,000 authorized shares of the Company's Series C Convertible Preferred Stock, par value $0.00001 per share (the "**Series C Preferred Stock**").

The Series C Preferred Stock ranks senior to all other shares of capital stock of the Company with respect to dividends, distributions and payments upon liquidation, dissolution and winding up. Without the prior express written consent of holders of at least a majority of the outstanding shares of Series C Preferred Stock (the "**Required Holders**"), the Company may not authorize or issue any shares of capital stock that are senior to or on parity with the Series C Preferred Stock with respect to such preferences.

Each share of Series C Preferred Stock accrues a preferred return on its stated value at a rate of 2% per quarter (the "**Preferred Return**"), compounding daily and payable on a quarterly basis within five trading days following the end of each calendar quarter, in cash or through the issuance of additional shares of Series C Preferred Stock, at the Company's election. Following an Event of Default (as defined in the Certificate of Designation), the Preferred Return increases to 18% per annum simple interest. The Series C Preferred Stock does not participate in any dividends, distributions or payments to holders of the common stock of the Company, par value $0.0001 per share ("**Common Stock**").

In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Company or a Deemed Liquidation Event (as defined in the Certificate of Designation), each share of Series C Preferred Stock is entitled to receive, prior to any payment to holders of Common Stock, an amount equal to the stated value plus any accrued and unpaid Preferred Return. A Deemed Liquidation Event includes (i) a merger or consolidation in which the stockholders of the Company do not continue to hold a majority of the voting power of the Company or any successor entity, or (ii) the sale, lease, transfer, exclusive license or other disposition of all or substantially all the assets of the Company and its subsidiaries.

Holders of Series C Preferred Stock may convert their shares into fully paid and non-assessable shares of Common Stock at any time following the applicable issuance date, at a conversion price equal to the Fixed Price (as defined in the Certificate of Designation) prior to the occurrence of a Trigger Event or Event of Default, and thereafter at the lesser of the Fixed Price and the Market Price (as defined in the Certificate of Designation). The number of shares of Common Stock issuable upon conversion is determined by dividing the applicable conversion amount (the number of shares being converted multiplied by the then-current stated value) by the applicable conversion price. Notwithstanding the foregoing, the Company may not effect any conversion that would cause a holder, together with its affiliates, to beneficially own in excess of 9.99% of the outstanding shares of Common Stock (the "**Maximum Percentage**"). The Maximum Percentage is enforceable, unconditional and non-waivable and applies to all affiliates and assigns of each holder.

If the Company fails to deliver conversion shares by the applicable delivery date, a late fee equal to 1% of the applicable conversion share value (rounded to the nearest multiple of $100.00, with a floor of $500.00) per day will accrue until delivery is made, subject to a cap of 200% of the applicable conversion share value per conversion. On up to three occasions, the Company will have five trading days to deliver conversion shares without incurring any late fees.

Other than as set forth in the Certificate of Designation with respect to amendments, the Series C Preferred Stock has no voting rights and does not vote on any matter submitted to the holders of Common Stock. The Company may not amend or repeal the Certificate of Designation without the prior written consent of holders of a majority of the then outstanding shares of Series C Preferred Stock, voting separately as a single class.

The Certificate of Designation contains certain covenants that remain in effect until no shares of Series C Preferred Stock remain outstanding, including, among others, that the Company will (i) timely file all reports required to be filed with the SEC, (ii) maintain listing of the Common Stock on NYSE, NYSE American or Nasdaq, (iii) not issue any new shares of Series C Preferred Stock (other than in connection with payment of the Preferred Return) or increase or decrease the authorized shares of Common Stock or Series C Preferred Stock without the prior written consent of the Required Holders, (iv) not make any Restricted Issuance (as defined in the Certificate of Designation) without the Required Holders' prior written consent, (v) not pledge or grant a security interest in any of its assets without the Required Holders' prior written consent, (vi) not dispose of any assets or operations with a value of more than $500,000 without the Required Holders' prior written consent, (vii) not undertake or complete any reverse split (except in connection with satisfaction of a Nasdaq deficiency notice) without the Required Holders' prior written consent, (viii) not create, authorize or issue any class of Preferred Stock without the Required Holders' prior written consent, and (ix) not consummate a Fundamental Transaction (as defined in the Certificate of Designation) without the Required Holders' prior written consent.

At any time after six months from the applicable issuance date, the Company may elect to redeem all or any portion of the outstanding shares of Series C Preferred Stock at a redemption price equal to 115% of the Series C Preferred Liquidation Amount (as defined in the Certificate of Designation) then applicable. For the avoidance of doubt, any redemptions made in connection with a Fundamental Transaction or Deemed Liquidation Event will be paid at such redemption price.

Upon the occurrence of an Event of Default (as defined in the Certificate of Designation), the stated value of the Series C Preferred Stock automatically increases by 15%, which increase may be applied up to three times for three separate Events of Default. In addition, upon an Event of Default, the Required Holders may force the Company to redeem all outstanding shares of Series C Preferred Stock for the stated value plus accrued and unpaid Preferred Return plus all other amounts due and payable under the Certificate of Designation.

The foregoing description of the Series C Preferred Stock does not purport to be complete and is qualified in its entirety by reference to the Certificate of Designation, a copy of which is filed as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated herein by reference.

**Item 8.01. Other Events.**

On May 20, 2026, the Company issued a press release (the "**Press Release**") announcing the closing of the direct listing of the Company's Common Stock on the Nasdaq Global Market. A copy of the Press Release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

**Item 9.01 Financial Statements, Pro Forma Financial Information, and Exhibits.**

(c) Exhibits

---

| | |
|:---|:---|
| [3.1](amass018_ex3-1.htm) | [Certificate of Designation](amass018_ex3-1.htm) |
| [99.1](amass018_ex99-1.htm) | [Press Release dated May 20, 2026.](amass018_ex99-1.htm) |
| 104 | Cover Page Interactive Data File (the cover page XBRL tags are embedded in the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: May 20, 2026

---

| | |
|:---|:---|
| AMASS Brands Inc | AMASS Brands Inc |
| By: | /s/ Mark T. Lynn |
|  | Mark T. Lynn |
|  | Chief Executive Officer  |
|  | (Principal Executive Officer) |

---

## Exhibit 3.1

**Exhibit 3.1**

CERTIFICATE OF DESIGNATION OF PREFERENCES AND RIGHTS OF

SERIES C CONVERTIBLE PREFERRED STOCK

of

AMASS Brands Inc,

a Delaware corporation

Pursuant to Section 151 of the Delaware General Corporation Law

The undersigned, Mark Lynn, hereby certifies that:

1. He is the duly elected Chief Executive Officer of AMASS Brands Inc, a Delaware corporation ("Corporation").

2. A resolution was adopted and approved by the Board of Directors of the Corporation by unanimous written consent on March 17, 2026, authorizing and approving the Certificate of Designation of Preferences and Rights of Series C Convertible Preferred Stock (this "Certificate") of the Corporation set forth below.

3. No shares of Series C Convertible Preferred Stock have been issued as of the date hereof.

IN WITNESS WHEREOF, the undersigned does hereby execute this Certificate and does hereby acknowledge that this instrument constitutes his act and deed and that the facts stated herein are true.

AMASS Brands Inc

---

| | |
|:---|:---|
| By:  | /s/ Mark Lynn |
| Name:  | Mark Lynn |
| Title:  | Chief Executive Officer |
| Dated: | May 19, 2026 |

---

CERTIFICATE OF DESIGNATION OF PREFERENCES AND RIGHTS OF

SERIES C CONVERTIBLE PREFERRED STOCK

of

AMASS Brands Inc,

a Delaware corporation

The undersigned Chief Executive Officer of AMASS Brands Inc ("Corporation"), a corporation organized and existing under the laws of the State of Delaware, does hereby certify that, pursuant to the authority contained in the Corporation's Certificate of Incorporation ("Certificate") and pursuant to Section 151 of the Delaware General Corporation Law, and in accordance with the provisions of the resolution creating a series of the class of the Corporation's authorized preferred stock designated as the Series C Convertible Preferred Stock as follows:

FIRST: The Certificate authorizes the issuance by the Corporation of 250,000,000 shares of common stock, par value of $0.00001 per share the "Common Stock"), and 41,192,462 shares of preferred stock, par value of $0.00001 per share ("Preferred Stock"), and further, authorize the Board of Directors ("Board") of the Corporation, by resolution or resolutions, at any time and from time to time, to divide and establish any or all of the unissued shares of Preferred Stock not then allocated to any series into one or more series and to designate the rights, preferences and limitations of each series.

SECOND: By unanimous written consent of the Board dated March 17, 2026, the Board designated thirty-five thousand (35,000) shares of the Preferred Stock as Series C Convertible Preferred Stock pursuant to a resolution providing that a series of preferred stock of the Corporation be and hereby is created and that the designation and number of shares thereof and the voting and other powers, preferences and relative, participating, optional or other rights of the shares of such Series C Convertible Preferred Stock, and the qualifications, limitations and restrictions thereof, are as follows:

SERIES C CONVERIBLE PREFERRED STOCK

Section 1. <u>Definitions</u>. Capitalized terms used but not otherwise defined herein shall have meanings set forth in Section 14 below.

Section 2. <u>Powers and Rights of Series C Convertible Preferred Stock</u>. There is hereby designated a class of Preferred Stock of the Corporation as Series C Convertible Preferred Stock, par value $0.00001 per share (the "Series C Stock"). The number of shares, powers, terms, conditions, designations, preferences and privileges, relative, participating, optional and other special rights, and qualifications, limitations and restrictions of the Series C Stock shall be as set forth in this Certificate of Designation of Preferences and Rights of Series C Convertible Preferred Stock (this "Certificate of Designation"). For purposes hereof, a holder of a share or shares of Series C Stock, with respect to their rights as related to the Series C Stock, shall be referred to as a "Series C Holder."

Section 3. <u>Number and Stated Value</u>. The number of authorized shares of the Series C Stock is thirty-five thousand (35,000) shares. Each share of Series C Stock shall have a stated value of $1,086.96 (the "Stated Value").

Section 4. <u>Ranking</u>. Except to the extent that the holders of at least a majority of the outstanding Series C Stock (the "Required Holders") expressly consent to the creation of Parity Stock (as defined below), all shares of capital stock of the Corporation shall be junior in rank to all Series C Stock with respect to the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (such junior stock is referred to herein collectively as "Junior Stock"). The rights of all such shares of capital stock of the Corporation shall be qualified by the rights, powers, preferences and privileges of the Series C Stock. Without limiting any other provision of this Certificate of Designation, without the prior express written consent of the Required Holders, voting separately as a single class, the Corporation shall not hereafter authorize or issue any additional or other shares of capital stock that is (i) of senior rank to the Series C Stock in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (collectively, the "Senior Preferred Stock"), or (ii) of pari passu rank to the Series C Stock in respect of the preferences as to dividends, distributions and payments upon the liquidation, dissolution and winding up of the Corporation (collectively, the "Parity Stock"). In the event of the merger or consolidation of the Corporation with or into another corporation wherein the Corporation is the surviving entity, the shares of Series C Stock shall maintain their relative rights, powers, designations, privileges and preferences provided for herein and no such merger or consolidation shall provide for a result inconsistent therewith, subject to the other terms and conditions herein.

Section 5. <u>Preferred Return</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Each share of Series C Stock shall accrue a rate of return on the Stated Value at the rate of 2% per quarter, to be determined pro rata for any fractional year periods (the "Preferred Return"). The Preferred Return shall accrue on each share of Series C Stock from the date of its Issuance Date and shall be payable or otherwise settled as set forth herein. Following the occurrence of an Event of Default (as defined below), the Preferred Return will increase to 18% per annum simple interest.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Preferred Return shall compound daily and be payable on a quarterly basis, within five (5) Trading Days following the end of each calendar quarter, either in cash or via the issuance to the applicable Series C Holder of an additional number of shares of Series C Stock equal to (i) the Preferred Return then accrued and unpaid, divided by (ii) the $1,000.00 per share purchase price of the Series C Stock, with the election as to payment in cash or via the issuance of additional shares of Series C Stock to be determined in the discretion of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that the Corporation elects to pay any Preferred Return via the issuance of shares of Series C Stock, no fractional shares of Series C Stock shall be issued, and the Corporation shall pay in cash the Preferred Return that would otherwise be payable via the issuance of a fractional share of Series C Stock.

Section 6. <u>Liquidation, Dissolution or Winding Up; Certain Mergers, Consolidations and Asset Sales</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Preferential Payments to Holders of Series C Stock</u>. In the event of any voluntary or involuntary liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event (as defined below), each share of Series C Stock shall be entitled to be paid out of the assets of the Corporation available for distribution to its stockholders before any payment shall be made to the holders of Common Stock equal to by reason of their ownership thereof, an amount per share of Series C Stock equal to the Stated Value at such time plus any accrued and unpaid Preferred Return (as applicable, the "Series C Preferred Liquidation Amount"). If upon any such liquidation, dissolution or winding up of the Corporation or Deemed Liquidation Event, the assets of the Corporation available for distribution to its stockholders shall be insufficient to pay the Series C Preferred Liquidation Amount, the Series C Holders with respect to their shares of Series C 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. Following the payment of the Series C Preferred Liquidation Amount, if there are any remaining assets of the Corporation available for distribution to its stockholders, the Series C Stock shall not participate in such distributions.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Deemed Liquidation Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Definition</u>. Each of the following events shall be considered a "Deemed Liquidation Event":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a merger or consolidation in which the Corporation is a constituent party and in which the stockholders of the Corporation immediately prior to such merger or consolidation do not continue to hold a majority of the voting power of the Corporation or any successor entity following such merger or consolidation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Corporation or any subsidiary of the Corporation of all or substantially all the assets of the Corporation and its subsidiaries taken as a whole, or the sale or disposition (whether by merger, consolidation or otherwise) of one or more subsidiaries of the Corporation if substantially all of the assets of the Corporation and its subsidiaries taken as a whole are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly owned subsidiary of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Effecting a Deemed Liquidation Event</u>. The Corporation shall not have the power to effect a Deemed Liquidation Event referred to in Section 6(b)(i)(1) unless the agreement or plan of merger or consolidation for such transaction (the "Merger Agreement") provides that the consideration payable to the Series C Stock shall be allocated in accordance with Section 6(a).

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Amount Deemed Paid or Distributed</u>. The amount deemed paid or distributed to the Series C Holders upon any such merger, consolidation, sale, transfer, exclusive license, other disposition or redemption shall be the cash or the value of the property, rights or securities paid or distributed to such Series C Holders by the Corporation or the acquiring person, firm or other entity. The value of such property, right or securities shall be determined in good faith by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Allocation of Escrow and Contingent Consideration</u>. In the event of a Deemed Liquidation Event pursuant to Section 6(b)(i)(1), if any portion of the consideration payable to the Series C Holders of the Corporation is payable only upon satisfaction of contingencies (the "Additional Consideration"), the merger agreement or other agreement related to such event shall provide that (a) the portion of such consideration that is not Additional Consideration (such portion, the ''Initial Consideration") shall be allocated among the Series C Holders in accordance with Section 6(a) as if the Initial Consideration were the only consideration payable in connection with such Deemed Liquidation Event; and (b) any Additional Consideration which becomes payable to the Series C Holders upon satisfaction of such contingencies shall be allocated among the Series C Holders in accordance with Section 6(a) after taking into account the previous payment of the Initial Consideration as part of the same transaction.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Section 7. <u>Conversions</u>. The Series C Stock shall be convertible into Common Stock at any time or times following the applicable Issuance Date of such Series C Stock on the terms and conditions set forth in this Section 7.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Conversion Right</u>. Any Series C Holder shall be entitled to convert its Series C Stock into fully paid and non-assessable shares of Common Stock in accordance with this Section 7. The Corporation shall not issue any fraction of a share of Common Stock upon any conversion. If the issuance would result in the issuance of a fraction of a share of Common Stock, the Corporation shall round such fractional share up to the nearest whole share. The Corporation shall pay any and all fees, transfer, stamp and similar taxes that may be payable with respect to the issuance and delivery of Common Stock upon conversion of any Conversion Amount. Conversion notices in the form attached hereto as <u>Exhibit A</u> (a "Conversion Notice") may be effectively delivered to the Corporation at the email or other address provided to such Series C Holder by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Limited Conversion Right</u>. Following the occurrence of a Limited Conversion Event, Investor will have the right to submit a Conversion Notice during the Limited Conversion Window applicable to such Limited Conversion Event (each, a "Limited Conversion"). The applicable Conversion Price for Limited Conversions, regardless of when submitted, will be the lower of (i) the Fixed Price, and (ii) the Market Price.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conversion Shares</u>. The number of shares of Common Stock issuable upon conversion of any Conversion Amount shall be determined by dividing (i) such Conversion Amount by (ii) the Conversion Price (the "Conversion Shares").

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Conversion Share Delivery</u>. On or before the close of business on the second (2<sup>nd</sup>) Trading Day following the date of delivery of a Conversion Notice (the "Delivery Date"), the Corporation shall, deliver or cause its transfer agent to issue and deliver the applicable Conversion Shares electronically to the account designated by holder in the applicable Conversion Notice.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Conversion Delays</u>. If the Corporation fails to deliver Conversion Shares by the applicable Delivery Date, holder may at any time prior to receiving the applicable Conversion Shares rescind in whole or in part such conversion. In addition, for each Conversion, in the event that Conversion Shares are not delivered by the Delivery Date, a late fee equal to 1% of the applicable Conversion Share Value rounded to the nearest multiple of $100.00 but with a floor of $500.00 per day (but in any event the cumulative amount of such late fees for each Conversion shall not exceed 200% of the applicable Conversion Share Value) will be assessed for each day after the Delivery Date until Conversion Share delivery is made ()"**Late Fees** "); and such Late Fees will be paid in cash to the Series C Holder. On up to three (3) occasions, the Corporation will have five (5) Trading Days to deliver Conversion Shares without incurring any Late Fees.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Ownership Limitation</u>. Notwithstanding anything to the contrary contained in this Certificate of Designation or any other agreement between the Corporation and a Series C Holder, the Corporation shall not effect any conversion of Series C Stock to the extent that after giving effect to such conversion would cause the Series C Holder (together with its Affiliates) to beneficially own a number of shares of Common Stock exceeding 9.99% of the number of shares of Common Stock outstanding on such date (including for such purpose the shares of Common Stock issuable upon such issuance) (the "**Maximum Percentage** "). For purposes of this section, beneficial ownership of shares of Common Stock will be determined pursuant to Section 13(d) of the Exchange Act. The Maximum Percentage is enforceable, unconditional and non-waivable and shall apply to all affiliates and assigns of each Series C Holder.

Section 8. <u>Trigger Events</u>. The occurrence of any of the following events will be considered a "Trigger Event" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporation receives a letter of non-compliance from the Nasdaq Listing Qualifications Department or other similar correspondence;

&nbsp;&nbsp;&nbsp;&nbsp;(b) beginning four (4) months following the Initial Listing Date, the average Market Capitalization of the Corporation during any ten (10) Trading Day period is less than $100,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;(c) in any quarter beginning with the second quarter after the Initial Listing Date, the Corporation's stockholder equity is less than $3,000,000; or

&nbsp;&nbsp;&nbsp;&nbsp;(d) beginning four (4) months following the Initial Listing Date, any closing trade price of the Common Stock as reported by Bloomberg is fifty percent (50%) or more below the opening trade price of the Common Stock on the Initial Listing Date.

Section 9. <u>Corporation Optional Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions herein, at any time after the date that is six (6) months from the applicable Issuance Date, the Corporation may elect, in the sole discretion of the Board, to redeem all or any portion of the Series C Stock then issued and outstanding from all of the Series C Holders (a "Corporation Optional Redemption") by paying to the applicable Series C Holders an amount in cash equal to the Series C Preferred Liquidation Amount then applicable to such shares of Series C Stock being redeemed in the Corporation Optional Redemption multiplied by 115% (the "Redemption Price"). For the avoidance of doubt, any redemptions made in connection with a Fundamental Transaction or Deemed Liquidation Event will be paid at the Redemption Price.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation shall provide written notice of any Corporation Optional Redemption to the Series C Holder(s) within ten (10) Trading Days following the determination of the Board to consummate the applicable Corporation Optional Redemption, and thereafter such Corporation Optional Redemption shall be completed on the tenth (10<sup>th</sup>) Trading Day following the delivery of such notice, and at such time the Corporation shall deliver to the Series C Holder(s) the Redemption Price in valid funds. Each Series C Holder agrees to execute and deliver to the Corporation such instruments and documents, and to take such actions, as reasonably required to consummate the Corporation Optional Redemption; *provided, however*, the Series C Holders will still have the right to exercise their right to convert the Series C Stock into Common Stock during the foregoing ten-day notice period.

Section 10. <u>Dividends and Distributions</u>. The Series C Stock shall not participate in any dividends, distributions or payments to the holders of the Common Stock.

Section 11. <u>Vote; Amendment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Other than as set forth in Section 11(b), the Series C Stock shall not have any voting rights and shall not vote on any matter submitted to the holders of the Common Stock, or any class thereof, for a vote.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Corporation may not, and shall not, amend or repeal this Certificate of Designation without the prior written consent of Series C Holders holding a majority of the Series C Stock then issued and outstanding, in which vote each share of Series C Stock then issued and outstanding shall have one vote, voting separately as a single class, in person or by proxy, either in writing without a meeting or at an annual or a special meeting of such Series C Holders, and any such act or transaction entered into without such vote or consent shall be null and void *ab initio*, and of no force or effect.

Section 12. <u>Covenants</u>. Until such time as no shares of Series C Stock remain outstanding, the Corporation and any subsidiary (to the extent applicable) will at all times comply with the following covenants:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Corporation will timely file on the applicable deadline all reports required to be filed with the SEC pursuant to Sections 13 or 15(d) of the Exchange Act, and will take all reasonable action under its control to ensure that adequate current public information with respect to the Corporation, as required in accordance with Rule 144 of the Securities Act, is publicly available, and will not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The Common Stock will be listed or quoted for trading on any of NYSE, NYSE American or Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;(c) After the initial issuance of Series C Stock, the Corporation will not issue any new shares of Series C Stock (other than pursuant to Section 5 above) without the prior written consent of the Required Holders, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The Corporation will not increase or decrease the authorized shares of Common Stock or Series C Stock without the prior written consent of the Required Holders, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The Corporation will ensure that trading in the Common Stock will not be suspended, halted, chilled, frozen, reach zero bid or otherwise cease trading on the Corporation's principal trading market.

&nbsp;&nbsp;&nbsp;&nbsp;(f) The Corporation will not make any Restricted Issuance without the Required Holders' prior written consent, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(g) The Corporation shall not enter into or extend any agreement or otherwise agree to any covenant, condition, or obligation that locks up, restricts in any way or otherwise prohibits the Corporation (i) from entering into a variable rate transaction with any Series C Holder or any Affiliate of any Series C Holder, or (ii) from issuing Common Stock, Preferred Stock, warrants, convertible notes, other debt securities, or any other of the Corporation's securities to any Series C Holder or any Affiliate of any Series C Holder.

&nbsp;&nbsp;&nbsp;&nbsp;(h) The Corporation will not pledge or grant a security interest in any of its assets without the Required Holders' prior written consent, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(i) The Corporation will not, and will not enter into any agreement or commitment to, dispose of any assets or operations with a value of more than $500,000 without the Required Holders' prior written consent, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(j) Except in connection with satisfaction of a Nasdaq deficiency notice, the Corporation will not, and will not enter into any agreement or commitment to, undertake or complete any reverse split of any class of Common Stock or Preferred Stock without the Required Holders' prior written consent, which consent may be granted on withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(k) The Corporation will not, and will not enter into any agreement or commitment to, create, authorize, or issue any class of Preferred Stock without the Required Holders' prior written consent, which consent may be granted or withheld in the Required Holders' sole and absolute discretion.

&nbsp;&nbsp;&nbsp;&nbsp;(l) The Corporation will not consummate a Fundamental Transaction or enter into an agreement to consummate a Fundamental Transaction without the Required Holders' prior written consent, which consent may be granted on withheld in the Required Holders' sole and absolute discretion.

Section 13. <u>Covenant Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Event of Default</u>. The Required Holders may elect to declare an "Event of Default" if any of the following conditions or events shall occur and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Corporation fails to fully comply with any covenant, obligation or agreement of the Corporation in this Certificate of Designation (other than payment or issuance defaults which are addressed in subparagraph (ii) below) or a breach of any covenant owed to any Series C Holder in any other agreement between the Corporation and such Series C Holder, and such failure, if known to the Required Holders and reasonably possible of cure, is not cured within fifteen (15) Trading Days of written notice thereof from the Required Holders;;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Corporation fails to pay any amount due and payable to the Series C Holders pursuant to and as required by this Certificate of Designation, or fails to issue any additional shares of Series C Stock or Common Stock to the Series C Holders pursuant to and as required by this Certificate of Designation, and such failure, if known to the Series C Holders and reasonably possible of cure, is not cured within five (5) Trading Days of the occurrence of such event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Corporation shall (1) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator; (2) make a general assignment for the benefit of the Corporation's creditors; or (3) commence a voluntary case under the U.S. Bankruptcy Code as now and hereafter in effect, or any successor statute; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a proceeding or case shall be commenced, without the application or consent of the Corporation, in any court of competent jurisdiction, seeking (1) liquidation, reorganization or other relief with respect to it or its assets or the composition or readjustment of its debts, or (2) the appointment of a trustee, receiver, custodian, liquidator or the like of any substantial part of its assets, and, in each case, such proceedings or case shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue unstayed and in effect, for a period of sixty (60) days, if in the United States, or ninety (90) days, if outside of the United States; or an order for relief against the Corporation shall be entered in an involuntary case under any bankruptcy, insolvency, composition, readjustment of debt, liquidation of assets or similar Law of any jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Consequences of Events of Default</u>. Upon the occurrence of an Event of Default, the Stated Value will automatically increase by fifteen percent (15%) (the "Default Effect"). The Default Effect may be applied up to three (3) times for three (3) separate Events of Default. If an Event of Default has occurred (i) the Required Holders may, by notice to the Corporation, force the Corporation to redeem all of the issued and outstanding shares of Series C Stock then held by the Series C Holders for a price equal to (A) the Stated Value of all such shares of Series C Stock; plus (B) any accrued and unpaid Preferred Return with respect to all such shares of Series C Stock, provided that such Preferred Return shall be paid in cash in an amount equal to the number of shares of Series C Stock otherwise issuable for the Preferred Return multiplied by the Stated Value; plus (C) any and all other amounts due and payable to the Series C Holders pursuant to this Certificate of Designation; (ii) the Series C Holders shall have the right to pursue any other remedies that the Required Holders may have under applicable law and/or in equity; and (iii) the Series C Holders shall have the right to seek and receive injunctive relief from a court or an arbitrator prohibiting the Corporation from issuing any of its Common Stock or Preferred Stock to any party unless all the shares of Series C Stock owned by the Series C Holders are redeemed in full simultaneously with such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Expenses</u>. In the event that any Series C Holder incurs expenses in the enforcement of its rights hereunder, including but not limited to reasonable attorneys' fees, then the Corporation shall immediately reimburse such Series C Holder the reasonable costs thereof.

Section 14. <u>Definitions</u>. In addition to the terms defined elsewhere in this Certificate of Designation, the following terms, as used herein, have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;(a) "Affiliate" means, with respect to a specified Person, any other Person that directly or indirectly Controls, is Controlled by or is under common Control with, the specified Person.

&nbsp;&nbsp;&nbsp;&nbsp;(b) "Control" means (i) the possession, directly or indirectly, of the power to vote 10% or more of the securities or other equity interests of a Person having ordinary voting power, (ii) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, by contractor otherwise, or (iii) being a director, officer, executor, trustee or fiduciary (or their equivalents) of a Person or a Person that controls such Person.

&nbsp;&nbsp;&nbsp;&nbsp;(c) "Conversion Amount" means the number of shares of Series C Stock being converted multiplied by the then-current Stated Value.

&nbsp;&nbsp;&nbsp;&nbsp;(d) "Conversion Price" means: (i) prior to the occurrence of a Trigger Event or Event of Default, the Fixed Price, and (ii) following the occurrence of a Trigger Event or Event of Default or after the date that is six (6) months from the Initial Listing Date, the lesser of (A) the Fixed Price, and (B) the Market Price.

&nbsp;&nbsp;&nbsp;&nbsp;(e) "Conversion Share Value" means the product of the number of Conversion Shares deliverable pursuant to any Conversion Notice multiplied by the daily VWAP on the Delivery Date for such conversion.

&nbsp;&nbsp;&nbsp;&nbsp;(f) "Equity Securities" means Common Stock of the Corporation, Preferred Stock of the Corporation and any option, warrant, or right to subscribe for, acquire or purchase Common Stock or Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;(g) "Exchange Act" means the Securities Exchange Act of 1934, as amended, and the rules and regulation promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(h) "Exempt Issuance" means (a) debt incurred in connection with a commercial bank loan, a commercial bank line of credit or a lease, but only so long as no Equity Securities are issued in connection with such loan, line of credit or lease; (b) issuances of Equity Securities in connection with an employee equity incentive plan approved by the Corporation's board of directors; (c) any financing which results in the redemption of all issued and outstanding shares of Series C Stock at the Stated Value, along with any accrued and unpaid Preferred Return, and any and all other amounts due and payable to the Series C Holders; or (d) up $15,000,000.00 in Equity Securities issued in connection with mergers and acquisitions (an "**M&A Exempt Issuance Right** "). Notwithstanding the foregoing, in no event will the issuance of any security containing a term or feature that varies with the market price of the Common Stock be considered an Exempt Issuance, and no issuances after the date that is twenty-four (24) months following the Initial Listing Date pursuant to the M&A Exempt Issuance Right will be considered Exempt Issuances if any shares of Series C Stock remain outstanding. For the avoidance of doubt, the M&A Exempt Issuance Right does not include the issuance of any debt or Equity Securities to finance the applicable merger or acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;(i) "Fixed Price" means the Nasdaq Valuation Price.

&nbsp;&nbsp;&nbsp;&nbsp;(j) "Floor Price" means forty percent (40%) of the Nasdaq Valuation Price prior to the Initial Listing Date, and thereafter forty percent (40%) of the "Minimum Price" as defined in Nasdaq Rule 5635 (subject to adjustment for stock splits, stock dividends, stock combinations, recapitalizations or other similar events) calculated as of the most recent Issuance Date following the initial issuance of Series C Stock; provided, however, that in no event shall the Floor Price be less than $4.00 per share.

&nbsp;&nbsp;&nbsp;&nbsp;(k) "Fundamental Transaction" means that (i) (A) the Corporation or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consolidate or merge with or into (whether or not the Corporation or any of its subsidiaries is the surviving corporation) any other person or entity, (B) the Corporation or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, sell, lease, license, assign, transfer, convey or otherwise dispose of all or substantially all of its respective properties or assets to any other person or entity, (C) the Corporation or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, allow any other person or entity to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of voting stock of the Corporation (not including any shares of voting stock of the Corporation held by the person or persons making or party to, or associated or affiliated with the persons or entities making or party to, such purchase, tender or exchange offer), (D) the Corporation or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, consummate a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with any other person or entity whereby such other person or entity acquires more than 50% of the outstanding shares of voting stock of the Corporation (not including any shares of voting stock of the Corporation held by the other persons or entities making or party to, or associated or affiliated with the other persons or entities making or party to, such stock or share purchase agreement or other business combination), (E) the Corporation or any of its subsidiaries shall, directly or indirectly, in one or more related transactions, reorganize, recapitalize or reclassify either class of the Common Stock, other than an increase in the number of authorized shares of either class of the Corporation's Common Stock, (F) the Corporation transfers any material asset to any subsidiary, affiliate, person or entity under common ownership or control with the Corporation, or (G) the Corporation pays or makes any monetary or non-monetary dividend or distribution to its stockholders; or (ii) any "person" or "group" (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act and the rules and regulations promulgated thereunder) is or shall become the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate ordinary voting power represented by issued and outstanding voting stock of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(l) "Initial Listing Date" means the first day that shares of the Common Stock trade on Nasdaq.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Issuance Date" means the date that the applicable shares of Series C Stock are issued to a Series C Holder.

&nbsp;&nbsp;&nbsp;&nbsp;(n) "Liabilities" means liabilities, obligations or responsibilities of any nature whatsoever, whether direct or indirect, matured or un-matured, fixed or unfixed, known or unknown, asserted or unasserted, choate or inchoate, liquidated or unliquidated, secured or unsecured, absolute, contingent or otherwise, including any direct or indirect indebtedness, guaranty, endorsement, claim, loss, damage, deficiency, cost or expense.

&nbsp;&nbsp;&nbsp;&nbsp;(o) "Limited Conversion Event" means a Trading Day where the shares of Common Stock trade at a price ten percent (10%) or more than the Nasdaq Minimum Price.

&nbsp;&nbsp;&nbsp;&nbsp;(p) "Limited Conversion Window" means the Trading Day that a Limited Conversion Event occurs and the immediately following Trading Day.

&nbsp;&nbsp;&nbsp;&nbsp;(q) "Market Capitalization" means a number equal to (a) the average VWAP of the Common Stock for the immediately preceding fifteen (15) Trading Days, multiplied by (b) the aggregate number of outstanding Common Stock as reported on the Corporation's most recently filed Form 10-Q or Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;(r) "Market Price" means 90% multiplied by the lowest daily VWAP during the ten (10) Trading Day period prior to the applicable measurement date, but in no event lower than the Floor Price.

&nbsp;&nbsp;&nbsp;&nbsp;(s) "Nasdaq" means the Nasdaq Stock Market.

&nbsp;&nbsp;&nbsp;&nbsp;(t) "Nasdaq Valuation Price" means either (a) the Valuation based Bid Price or (b) the Compelling Evidence-based Bid Price, as submitted by the Corporation and accepted by Nasdaq in Company's direct listing application with Nasdaq, and calculated in accordance with Nasdaq Listing Rule IM-5405-1 or 5505-1, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(u) "Person" means a natural person, a corporation, a limited liability company, a partnership, an association, a trust or any other entity or organization, including a government or political subdivision or any agency or instrumentality thereof.

&nbsp;&nbsp;&nbsp;&nbsp;(v) "Restricted Issuance" means the (i) the issuance, incurrence or guaranty of any debt or additional Liabilities other than trade payable incurred in the ordinary course of business, (ii) the issuance of (a) any Equity Securities of the Corporation, including, without limitation any Common Stock or any class or series of Preferred Stock; or (b) any securities that are convertible into or exchangeable for shares of Common Stock or any class or series of Preferred Stock, other than in each of the foregoing clauses (i) and (ii), for any such issuances or sales to a Series C Holder as contemplated in this Certificate of Designation or otherwise to a Series C Holder or any of its Affiliates. For the avoidance of doubt, the issuance of Common Stock under, pursuant to, in exchange for or in connection with any contract or instrument, whether convertible or not, is deemed a Restricted Issuance for purposes hereof if the number of shares of Common Stock to be issued is based upon or related in any way to the market price of the Common Stock, including, but not limited to, Common Stock issued in connection with a Section 3(a)(9) exchange, a Section 3(a)(10) settlement, or any other similar settlement or exchange. Exempt Issuances will not be considered Restricted Issuances.

&nbsp;&nbsp;&nbsp;&nbsp;(w) "SEC" means the United States Securities and Exchange Commission.

&nbsp;&nbsp;&nbsp;&nbsp;(x) "Securities Act" means the United States Securities Act of 1933, as amended, and the rules and regulation promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(y) "Trading Day" means any day on which Nasdaq is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;(z) "VWAP" means the volume weighted average price of the Common Stock on the principal market for a particular Trading Day or set of Trading Days, as the case may be, as reported by Bloomberg, LP.

Section 15. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Legend</u>. Any certificates representing the Series C Stock shall bear a restrictive legend in substantially the following form (and a stop transfer order may be placed against transfer of such stock certificates):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR REGISTERED NOR QUALIFIED UNDER ANY STATE SECURITIES LAWS. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, DELIVERED AFTER SALE, TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS QUALIFIED AND REGISTERED UNDER APPLICABLE STATE AND FEDERAL SECURITIES LAWS OR UNLESS, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY, SUCH QUALIFICATION AND REGISTRATION IS NOT REQUIRED. ANY TRANSFER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS FURTHER SUBJECT TO OTHER RESTRICTIONS, TERMS AND CONDITIONS WHICH ARE SET FORTH HEREIN.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Uncertificated Shares Lost or Mutilated Series C Stock Certificate</u>. The Series C Stock shall be issued to each Series C Holder in uncertificated (book entry) form by the stock transfer agent of the Corporation unless a Series C Holder requests such Series C Stock be issued to such Series C Holder in certificated form. If any certificate for the Series C Stock held by the Series C Holder thereof shall be mutilated, lost, stolen or destroyed, the Corporation shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated certificate, or in lieu of or in substitution for a lost, stolen or destroyed certificate, a new certificate for the share of Series C Stock so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of such certificate, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Corporation. <u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Interpretation</u>. If the Corporation or any Series C Holder shall commence an action or proceeding to enforce any provisions of this Certificate of Designation, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorney's fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Waiver</u>. Any waiver by the Corporation or the Series C Holder of a breach of any provision of this Certificate of Designation shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Certificate of Designation. The failure of the Corporation or the Series C Holder to insist upon strict adherence to any term of this Certificate of Designation on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Certificate of Designation. Any waiver must be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Severability</u>. If any provision of this Certificate of Designation is invalid, illegal or unenforceable, the balance of this Certificate of Designation shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances.

**<u>EXHIBIT A</u>**

**AMASS Brands Inc**

CONVERSION NOTICE

Reference is made to the Certificate of Designation of Preferences and Rights of Series C Convertible Preferred Stock of AMASS Brands Inc (the "**Certificate of Designation**"). In accordance with and pursuant to the Certificate of Designation, the undersigned hereby elects to convert the number of shares of Series C Convertible Preferred Stock, par value $0.0001 per share (the "**Series C Preferred Shares**"), of AMASS Brands Inc, a Delaware corporation (the "**Corporation**"), indicated below into shares of Common stock, par value ($0.0001), of the Corporation, as of the date specified below.

A. Date of Conversion: ________________________________

B. No. of Series C Preferred Shares Being Converted: ________________________________

C. Conversion Amount: ________________________________

D. Conversion Price: ________________________________

E. Conversion Shares: ________________________________ (C divided by D)

F. Remaining Series C Preferred Shares Held: ________________________________

***Please transfer the Conversion Shares electronically to the following account***:

---

| | | |
|:---|:---|:---|
| Broker: ________________________________ | Address: | ________________________________ |
| DTC#: ________________________________ |  | ________________________________ |
| Account #: _____________________________ |  | ________________________________ |
| Account Name: _________________________ |  |  |

---

---

| | |
|:---|:---|
| Series C Holder: | Series C Holder: |
| **[________]** | **[________]** |
| By:  |  |
|  | [_____], [______] |

---

## Exhibit 99.1

**Exhibit 99.1**

![](amass018_ex99-1img01.jpg)<br>

**AMASS Brands Group Completes Nasdaq Direct Listing; Common Stock to Begin Trading Under the Symbol 'AMSS'**

**SANTA MARIA, CA., May 20, 2026** – AMASS Brands Group ("AMASS" or "the Company"), a premium, multi-category beverage platform spanning non-alcohol, functional, and alcohol 2.0 products, today announced that AMASS Brands Group's common stock (the "common stock") will begin trading today on the Nasdaq Capital Market under the stock ticker symbol "AMSS". The direct listing did not involve the issuance of new common stock by the Company.

"Today marks a defining milestone for AMASS as we begin trading on Nasdaq," said Mark Thomas Lynn, Founder and Chief Executive Officer of AMASS. "We've built a differentiated, multi-brand platform positioned at the intersection of several of the fastest-growing segments in the beverage industry. As a public company, we are focused on scaling our portfolio, expanding distribution, and executing on our strategy to build a leading next-generation beverage company."

AMASS has established a diversified, multi-category beverage platform with a portfolio of nine core brands spanning non-alcoholic alternatives, functional wellness products, and premium, better-for-you alcoholic beverages. Since inception, the Company has generated more than $80 million in cumulative revenue, sold over 5.7 million bottles, and expanded its distribution footprint to more than 40,000 points of sale. The Company's portfolio includes brands such as Good Twin Non-Alcoholic Wine and Summer Water Rosé.

The Company operates within several of the fastest-growing segments of the global beverage industry, supported by long-term consumer trends around health, moderation, and ingredient transparency. The U.S. non-alcoholic beverage market alone is projected to grow from approximately $169.6 billion in 2024 to $246.9 billion by 2032<sup>1</sup>, while the functional beverage category is expected to reach $71 billion by 2030<sup>2</sup>. With a diversified, cross-category portfolio, the Company believes it is well positioned to capture shifting consumption patterns and drive growth through continued innovation and strategic acquisitions.

**Advisors**

Maxim Group LLC acted as exclusive financial advisor to the Company in connection with this direct listing. Winston & Strawn LLP acted as counsel to the Company.

**About AMASS Brands Group**

AMASS Brands Group (Nasdaq: AMSS) is a next-generation beverage platform built around the brands with the goal of defining how modern consumers drink — and increasingly, how they don't. The Company's portfolio spans non-alcohol, functional, and alcohol 2.0 categories, with standout brands across each: Good Twin Non-Alcoholic Wine, a top-10 non-alcoholic wine in the U.S. and one of the fastest-growing in the category; and Summer Water Rosé, the zero-sugar, #1 selling premium domestic rosé in the US according to Nielsen — among others across the portfolio. As moderation trends accelerate, AMASS believes it is positioned to benefit structurally rather than reactively — with margin discipline, cohesive brand architecture, and the multi-brand scalability that makes AMASS increasingly relevant to strategic acquirers in an evolving beverage landscape.

Follow <u>AMASS on LinkedIn</u> 

Follow <u>AMASS on Instagram</u> 

¹ Fortune Business Insights, *U.S. Non-Alcoholic Beverages Market Size, Share & Industry Analysis*, December 2025. <br>

Available at: <u>https://www.fortunebusinessinsights.com/u-s-non-alcoholic-beverages-market-107932</u>

² Precedence Research, *Functional Beverages Market Size, Share and Trends 2026 to 2035*, December 2025. <br>

Available at: <u>https://www.precedenceresearch.com/functional-beverages-market</u> 

***Safe Harbor Forward-Looking Statements***

*This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate," or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. These forward-looking statements include, without limitation, the Company's statements regarding the expected trading of its shares of common stock on the Nasdaq Global Market. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the other factors discussed in the "Risk Factors" section of the Company's registration statement on Form S-1 filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof, except as required by applicable law.*

**Investor Relations Contact**

KCSA Strategic Communications

Rob Kelly, Vice President

(212) 896-1254

<u>AMASS@KCSA.com</u>