# EDGAR Filing Document

**Accession Number:** 0001524872
**File Stem:** 0001683168-23-000378
**Filing Date:** 2023-1
**Character Count:** 584377
**Document Hash:** 02e5c90f024f5dcb2e2496739ecaceb4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-000378.hdr.sgml**: 20230127

**ACCESSION NUMBER**: 0001683168-23-000378

**CONFORMED SUBMISSION TYPE**: 1-A

**PUBLIC DOCUMENT COUNT**: 15

**FILED AS OF DATE**: 20230127

**DATE AS OF CHANGE**: 20230127

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Thunder Energies Corp
- **CENTRAL INDEX KEY:** 0001524872
- **STANDARD INDUSTRIAL CLASSIFICATION:** SPECIAL INDUSTRY MACHINERY, NEC [3559]
- **IRS NUMBER:** 451967797
- **STATE OF INCORPORATION:** FL
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 024-12140
- **FILM NUMBER:** 23562221

**BUSINESS ADDRESS:**
- **STREET 1:** 8570 STIRLING RD., PMB 388, SUITE 102
- **CITY:** HOLLYWOOD
- **STATE:** FL
- **ZIP:** 33024
- **BUSINESS PHONE:** (786) 686-0231

**MAIL ADDRESS:**
- **STREET 1:** 8570 STIRLING RD., PMB 388, SUITE 102
- **CITY:** HOLLYWOOD
- **STATE:** FL
- **ZIP:** 33024

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Thunder Fusion Corp
- **DATE OF NAME CHANGE:** 20130731

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CCJ Acquisition Corp.
- **DATE OF NAME CHANGE:** 20110705

## Part

[**Table of Contents**](#toc)

**AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ("SEC"). INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. WE MAY ELECT TO SATISFY OUR OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF OUR SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.**

**PRELIMINARY OFFERING CIRCULAR January 27, 2023**

**THUNDER ENERGIES, INC.**

**4002 Hwy 78, Suite 530 #296**

**Snellville, GA 30039**

**(866) 834-BEAR**

**OFFERING SUMMARY**

**Up to 75,000,000 shares of** 

**Class A Common Stock**

**SEE "[SECURITIES BEING OFFERED](#a_014)" AT PAGE 34**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Price to Public** | **Underwriting<br> discount and<br> commissions** | **Proceeds to <br> issuer** | **Proceeds to<br> other persons** |
| **Per share** | $0.125 | $0.0088 | $0.1163 | 0 |
| **Total Maximum** | $75000000 | $3700000 | $71300000 | 0 |

---

The Company has engaged Dalmore Group, LLC, member FINRA/SIPC ("Dalmore"), to act as the broker-dealer of record in connection with this Offering, but not for underwriting or placement agent services. This includes the 1% commission, but it does not include the one-time set-up fee and consulting fee payable by the Company to Dalmore. See "[Plan of Distribution and Selling Securityholders](#a_004)" for details. 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.

The company expects that, not including state filing fees, the amount of expenses of the offering that we will pay will be approximately $3,700,000 based on the maximum number of shares sold in this offering.

**This offering (the "Offering") will terminate at the earlier of (1) the date at which the Maximum Offering amount has been sold, (2) the date which is one year from this offering being qualified by the United States Securities and Exchange Commission, or (3) the date at which the offering is earlier terminated by the company at its sole discretion. The Offering is being conducted on a best-efforts basis and there is no minimum number of shares that needs to be sold in order for funds to be released to the company and for this Offering to close, which may mean that the company does not receive sufficient funds to cover the cost of this Offering. The company may undertake one or more closings on a rolling basis. After each closing, funds tendered by investors will be made available to the company. After the initial closing of this offering, we expect to hold closings on at least a monthly basis.**

**The holders of Thunder Energies preferred stock (the "Preferred Stock") are entitled to an aggregate vote of the following:**

**Series A – 15 votes per share convertible into 10 shares of Common Stock**

**Series B – 1,000 votes per share convertible into 1,000 shares of Common Stock**

**Series C – 1,000 votes per share, non-convertible**

**Holders of the Preferred Stock will continue to hold a majority of the voting power of all of the company's equity stock at the conclusion of this Offering and therefore control the board.**

**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](#a_002)" on page 4. THERE IS NO ASSURANCE THAT THE NECESSARY FUNDS WILL BE RAISED OR THAT THE ISSUER WILL BE ABLE TO BE SUCCESSFUL IN THEIR BUSINESS OPERATIONS AS DESCRIBED HEREIN.**

**Sales of these securities will commence approximately 10 days after the approval of this Offering.** 

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

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| [Summary](#a_001) | 1 |
| [Risk Factors](#a_002) | 4 |
| [Dilution](#a_003) | 13 |
| [Plan of Distribution and Selling Securityholders](#a_004) | 15 |
| [Use of Proceeds to Issuer](#a_005) | 17 |
| [The Company's Business](#a_006) | 18 |
| [Investment Restrictions](#a_007) | 25 |
| [Conflicts of Interest](#a_008) | 26 |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_009) | 27 |
| [Shareholders, Directors, Executive Officers and Significant Employees](#a_010) | 28 |
| [Compensation of Directors and Officers](#a_011) | 30 |
| [Security Ownership of Management and Certain Securityholders](#a_012) | 31 |
| [Interest of Management and Others in Certain Transactions](#a_012) | 33 |
| [Securities Being Offered](#a_014) | 34 |
| [Financial Statements](#a_015) | F-1 |

---

i

*In this Offering Circular, the term "Thunder Energies," "we," "us, "our" or "the company" refers to THUNDER ENERGIES, INC., a Florida corporation.*

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.

ii

**SUMMARY**

Thunder Energies, Inc. was incorporated April 2011 and underwent new management as of April 2022. This new team has created a vision that is still in the early stages of redevelopment and growth. The Company looks to drive outstanding results for our shareholders by deploying capital in well diversified business ventures, partnerships and investments (i.e., commercial/residential real estate, mining, asset-backed cryptocurrency, water treatment, solar, etc.) and seeks current sustainable income as a primary objective and capital appreciation as a secondary objective. Our financial strategy aims to provide a foundational backstop to reduce inherent business risks which includes other assets invested in investment and non-investment grade credit in well-diversified industry sectors.

The company has already secured impressive partnerships - including real estate development, mining, water treatment, solar, finance/banking, legal, marketing and advertising, and is continually expanding investment opportunities in multiple capital markets to create diverse revenue streams. Its mission is to protect the shareholders through a diversified asset base with various asset classes that allow it to stay liquid and self-sufficient to aid in heading off any unforeseeable market shifts and political changes around the globe, which are critically important in current times.

The company will operate under the brand name "Thunder Energies" with the consideration given to future name changes due to a diversification of operations outside of the former business.

**Revenue Plan** 

The company will be identifying and investing into revenue or cash flowing assets and companies that will provide a return on investment to our shareholders.

**The Offering**

---

| | |
|:---|:---|
| Securities offered | Common Stock |
| Common Stock outstanding before the Offering | 20,140,735 shares of Common Stock. |
| Share Price | $5.00 per share |
| <br> Maximum Common Shares Offered | <br> 15000000 |
| Minimum Investment | $10000 |

---

**Use of Proceeds** 

Proceeds from this Offering will be used to acquire assets directly or indirectly through the investment in other companies. Thunder Energies has current letters of intent for minority interests in a mining venture, development of family resorts in Tennessee and Georgia and investment in a water and solar green technology company.

**Summary Risk Factors** 

Thunder Energies is a startup. The company was incorporated on March 2020 and is still in an early stage of development. The company is not close to profitability as projects take approximately 18 months to develop and construct and may not provide a return on investment for approximately 24 months thereafter. Investing in the company involves a high degree of risk (see "[Risk Factors](#a_002)"). As an investor, you should be able to bear a complete loss of your investment. Some of the more significant risks include those set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· This is a very young company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company has minimal operating capital and no revenue from operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The success of Thunder Energies business is dependent on acquisition of investment assets that produce revenue at favorable prices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company may need to raise more capital and future fundraising rounds could result in dilution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Success in the real estate and other investments is highly unpredictable, and there is no guarantee the company will be successful in the market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Market risks could have material negative effects on Thunder Energies' planned operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Thunder Energies operates in a highly competitive market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Litigation against our investment operations, our business, results of operations or financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company's insurance coverage may not be adequate to cover all possible losses that it could suffer and its insurance costs may increase.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**·** Some of the company's investments will be in real estate, which are subject to numerous risks, including the risk that the values of their investments may decline if there is a prolonged downturn in real estate values.

· The illiquidity of real estate may make it difficult for the company to dispose of one or more of our investments or negatively affect our ability to profitably sell such investments and access liquidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company's growth strategy depends on its ability to identify and fund acquisition of income producing assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**·** The company's real estate investments may depend on their ability to obtain favorable mortgage financing.

**·** Thunder Energies depends on a small management team and may need to hire more people to be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Control over the Investment Manager

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company will require an investment bank and investment or collateral manager who has not yet been hired  *.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Inadequate Returns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Legal and Regulatory Risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Tax Considerations; Distributions and Payment of Tax Liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· General Economic and Market Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Highly Volatile Markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risks of Securities Activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investment Style Risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Bonds and Other Fixed Income Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Short Sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Leverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Derivatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Swap Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Exchange-Traded Funds ("ETFs").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Cyber Security Risk.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Offering price has been arbitrarily set by the company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The officers of Thunder Energies control the company and the company does not currently have any independent directors.

· Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement and claims where the forum selection provision is applicable, which could result in less favorable outcomes to the plaintiff(s) in any such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· There is little to no current market for Thunder Energies' shares.

· The interests of Thunder Energies and the company's other affiliates may conflict with your interests.

**RISK FACTORS**

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

**Risks relating to our business**

***This is a very young company.***

The company was incorporated in Florida on April 21, 2011 and underwent new management as of April 2022. This new team has created a vision that is still in the early stages of redevelopment and growth. Despite the time since incorporation the company is still a startup company that has recently been acquired and changed its operations to a new business model. The company is initiating the execution of its business plan discussed herein but has not yet started operations, and has not acquired any assets. There is no history upon which an evaluation of its past performance and future prospects can be made. Statistically, most startup companies fail.

***The company has minimal operating capital, no significant assets and no revenue from operations.***

The company currently has minimal operating capital and for the foreseeable future will be dependent upon its ability to finance its planned operations from the sale of securities or other financing alternatives. There can be no assurance that it will be able to successfully raise operating capital in this or other offerings of securities, or to raise enough funds to become operational. The failure to successfully raise operating capital could result in its inability to execute its business plan and potentially lead to bankruptcy, which would have a material adverse effect on the company and its investors.

***The success of Thunder Energies business is dependent on acquisition of investment assets that produce revenue at favorable prices.***

As of the date of this Offering Circular the company has letters of intent to purchase and invest in a mining operation, a family resort operation and a water/solar technology company. The company does not know whether it will be able to obtain additional investments in other companies at acceptable purchase terms that are favorable. Finally, if this Offering does not raise enough capital to finalize the investments, the company may need to turn to other sources of funds.

***The company may raise more capital and future fundraising rounds could result in dilution.***

Thunder Energies may need to raise additional funds to finance its operations or fund its business plan. Even if the company manages to raise subsequent financing or borrowing rounds, the terms of those borrowing rounds might be more favorable to new investors or creditors than to existing investors such as you. New equity investors or lenders could have greater rights to our financial resources (such as liens over our assets) compared to existing shareholders. Additional financings could also dilute your ownership stake, potentially drastically. See "[Dilution](#a_003)" and the "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_009)– Plan of Operation" for more information.

***Success in real estate and other investments is highly unpredictable, and there is no guarantee the company will be successful in the market.***

The company's success will depend on the success of the companies it invests in. Thunder Energies will perform due diligence and evaluation of operations but investment trends are difficult to predict. For example, if the company fails to anticipate future preferences in the real estate markets, its business and financial performance will likely suffer. The company may also invest in operations that end up losing money. Even if one of its facilities is successful, the company may lose money in others.

***Market risks could have material negative effects on Thunder Energies' planned operations.***

Market risk includes the risk that geopolitical and other events will disrupt the economy on a national or global level. For instance, war, terrorism, market manipulation, government defaults, government shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics, such as COVID-19, and epidemics) and natural/environmental disasters can all negatively impact markets, which could cause the Company to lose value. These events could reduce consumer demand or economic output, result in market closures, travel restrictions or quarantines, and significantly adversely impact the economy. The current contentious domestic political environment, as well as political and diplomatic events within the United States and abroad, such as presidential elections in the United States or abroad or the U.S. government's inability at times to agree on a long-term budget and deficit reduction plan, has in the past resulted, and may in the future result, in a government shutdown or otherwise adversely affect the U.S. regulatory landscape, the general market environment and/or investor sentiment, which could have an adverse impact on the Company's investments and operations. Additional and/ or prolonged U.S. federal government shutdowns may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree.

***Thunder Energies operates in a highly competitive market.***

Thunder Energies plans to operate in a highly competitive market and faces intense competition. Many of the company's current and potential competitors have greater resources, longer histories, more customers, and greater brand recognition. Competitors may secure better financial terms, adopt more aggressive pricing and devote more resources to technology, infrastructure, fulfillment, and marketing.

***Litigation against our investment operations, our business, results of operations or financial condition.***

The company's business may be adversely affected by legal or governmental proceedings brought by or on behalf of their investment companies. Regardless of whether any claims against the company are valid or whether they are liable, claims may be expensive to defend and may divert time and money away from operations and hurt the company's financial performance. A judgment significantly in excess of their insurance coverage or not covered by insurance could have a material adverse effect on the company's business, results of operations or financial condition which will reduce or eliminate Thunder Energies' ability to recover its investment.

***The company's insurance coverage may not be adequate to cover all possible losses that it could suffer and its insurance costs may increase.***

The company has not yet acquired insurance. It may not be able to acquire insurance policies that cover all types of losses and liabilities. Additionally, once the company acquires insurance, there can be no assurance that its insurance will be sufficient to cover the full extent of all of its losses or liabilities for which it is insured. Further, insurance policies expire annually and the company cannot guarantee that it will be able to renew insurance policies on favorable terms, or at all. In addition, if it, or other assets sustain significant losses or make significant insurance claims, then its ability to obtain future insurance coverage at commercially reasonable rates could be materially adversely affected. If the company's insurance coverage is not adequate, or it becomes subject to damages that cannot by law be insured against, such as punitive damages or certain intentional misconduct by their employees, this could adversely affect the company's financial condition or results of operations.

***Some of the company's investments will be in real estate, which are subject to numerous risks, including the risk that the values of their investments may decline if there is a prolonged downturn in real estate values.***

Some of the company's operations will consist of real estate operations. Accordingly, the company is subject to the risks associated with holding real estate investments. A prolonged decline in the popularity of certain real estate could adversely affect the value of its holdings and could make it difficult to sell its interest or divest from the company or businesses.

The company's real estate holdings will be subject to risks typically associated with investments in real estate. The investment returns available from equity investments in real estate depend in large part on the amount of income earned, expenses incurred and capital appreciation generated by the related properties. In addition, a variety of other factors affect income from properties and real estate values, including governmental regulations, real estate, insurance, zoning, tax and eminent domain laws, interest rate levels and the availability of financing. For example, new or existing real estate zoning or tax laws can make it more expensive and time-consuming to expand, modify or renovate older properties. Under eminent domain laws, governments can take real property. Sometimes this taking is for less compensation than the owner believes the property is worth. Any of these factors could have an adverse impact on our business, financial condition or results of operations.

***The illiquidity of real estate may make it difficult for the company to dispose of one or more of our investments or negatively affect our ability to profitably sell such investments and access liquidity.***

The company may from time to time decide to dispose of one or more of its investment holdings. Because real estate holdings generally, are relatively illiquid, the company may not be able to dispose of one or more investment assets on a timely basis. In some circumstances, sales may result in investment losses which could adversely affect the company's financial condition. The illiquidity of its holdings assets could mean that it continues to operate a facility that management has identified for disposition. Failure to dispose of a real estate asset in a timely fashion, or at all, could adversely affect the company's business, financial condition and results of operations.

***The company's growth strategy depends on its ability to identify and fund acquisition of income producing assets.***

A key element of the company's growth strategy is to identify and fund income producing assets. The company has identified a number of strategic markets and is still the process of identifying additional opportunities. The company's ability to fund, develop and operate these venues on a timely and cost-effective basis, or at all, is dependent on a number of factors, many of which are beyond its control, including but not limited to our ability to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Find quality investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Reach acceptable agreements regarding the purchase of investments and comply with our commitments under our investment agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Raise or have available an adequate amount of cash or currently available financing.

***The company's real estate investments may depend on the company's ability to obtain favorable mortgage financing.***

The company intends to invest in real estate operations and those companies may need to secure both construction and mortgage financing beyond Thunder Energies investment. There is no guarantee that the companies will be able to obtain financing on favorable terms. In the event that the companies are unable to obtain such financing it may limit their ability to effectuate its plans and may, thereby negatively impacting Thunder Energies financial prospects.

***Thunder Energies depends on a small management team and may need to hire more people to be successful.***

The success of Thunder Energies will greatly depend on the skills, connections and experiences of the executives, Rick Haynes and Lance Lehr. Thunder Energies has entered into employment agreements with the aforementioned executives. Further, there is no assurance that the company will be able to identify, hire and retain the right people for various key positions.

**Risks relating to appointing an Investment Manager**

***Control over the Investment Manager*.**

The Investment Manager and/or Sub-Advisor will invest in securities that the Investment Manager and/or Sub-Advisor believe will generally, and in the aggregate, be managed consistent with the Investment Policy Statement (IPS) and strategy. The IPS does not control the Investment Manager, however, and there can be no assurances that an Investment Manager will manage the investments in a manner consistent with the investment objective and strategy as detailed in the IPS.

***The company will require an investment bank and investment or collateral manager who has not yet been hired.***

The company is currently performing a search for an investment bank and Investment or Collateral Manager to manage an institutional investment account by adhering to the IPS of the company. There is no way to be certain that the investment bank and Investment Manager of the company, once appointed, will be able to execute the IPS as directed. If an appropriate entity and person is not identified and hired, the company will not succeed with this financial strategy since its performance will depend on the strict adherence to the IPS and subsequent Account Control Agreement (ACA).

***Inadequate Returns*.**

No assurance can be given that the returns on the company's investments will be commensurate with the risk of investment within the IPS. Investors should not commit money to the company unless they have the resources to sustain the loss of their entire investment.

***Legal and Regulatory Risks*.**

Legal and regulatory changes could occur during the term of the Investment Manager, which may materially adversely affect the Investment Manager. The regulation of the U.S. and non-U.S. securities markets and investment funds has undergone substantial change in recent years and such change may continue.

***Tax Considerations and Payment of Tax Liability*.**

The company will be required each year to pay applicable U.S. federal and state income taxes on its share of the Investment Manager's taxable income, and will have to pay applicable taxes from other sources.

***General Economic and Market Conditions*.**

The success of the Investment Manager activities may be affected by general economic and market conditions, such as interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and national and international political circumstances. These factors may affect the level and volatility of security prices and liquidity of the company's investments. Unexpected volatility or liquidity could impair the company's profitability or result in its suffering losses.

***Highly Volatile Markets*.**

The prices of securities and all financial instruments can be highly volatile. Price movements in which a company's assets may be invested are influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of governments, and national and international political and economic events and policies. In addition, governments from time to time intervene, directly and by regulation, in certain markets, particularly those in currencies and financial instruments. Intervention often is intended directly to influence prices and may, together with other factors, cause all such markets to move rapidly in the same direction because of, among other things, interest rate fluctuations. The Investment Manager is also subject to the risk of the failure of any exchanges on which its positions trade or of their clearinghouses.

***Risks of Securities Activities*.**

All securities investing and trading activities risk the loss of capital. Although the Investment Manager and/or Sub-Advisor will attempt to moderate these risks, no assurance can be given that the company's investment activities will be successful or that it will not suffer losses.

***Investment Style Risk*.**

The Investment Manager and/or Sub-Advisor will allocate the company's holdings among various securities which follow various investment strategies as outlined in the IPS. Different types of investment styles tend to shift into and out of favor depending on market and economic conditions. The returns from the Investment Manager which follow one investment strategy may at times be better or worse than the returns from an Investment Manager which follow other types of investment strategies. If the Investment Manager does not allocate or reallocate an appropriate proportion of its assets to follow strategies that favor higher returns, the Investment Manager's returns may underperform accordingly. Various types of investment strategies go through cycles of performing better or worse than the stock or bond market in general. There is no assurance that the Investment Manager will be able to reallocate its investments to match the investment styles which are in favor at any given moment. At any time, the performance of the Investment Manager may thus be better or worse than the performance of other managers that have a different investment style or a specific investment style which they follow consistently rather than attempting to allocate between different styles.

***Bonds and Other Fixed Income Securities*.**

The Investment Manager, on behalf of the company, may invest in both U.S. and non-U.S. bonds and other fixed-income securities and may take short positions in these securities. The Investment Manager will invest in these securities when they offer opportunities for capital appreciation (or capital depreciation in the case of short positions) and may also invest in these securities for temporary defensive purposes and to maintain liquidity. Fixed-income securities include, among other securities: bonds, notes and debentures issued by U.S. and non-U.S. corporations; debt securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities ("U.S. Government securities") securities or debt securities issued or guaranteed by a non-U.S. government; municipal securities; and mortgage-backed and asset-backed securities. These securities may pay fixed, variable or floating rates of interest, and may include zero coupon obligations. Fixed-income securities are subject to the risk of the issuer's inability to meet principal and interest payments on its obligations (i.e., credit risk) and are subject to price volatility resulting from, among other things, interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity (i.e., market risk). Given that the Federal Reserve has begun to raise interest rates, the company may face a heightened level of interest rate risk.

The Investment Manager may invest in both Investment Grade debt securities and Non-Investment Grade debt securities (commonly referred to as junk bonds). Non-Investment Grade debt securities in the lowest rating categories may involve a substantial risk of default or may be in default. Adverse changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of the issuers of Non-Investment Grade debt securities to make principal and interest payments than issuers of higher-grade debt securities. An economic downturn affecting an issuer of Non-Investment Grade debt securities may result in an increased incidence of default. In addition, the market for lower grade debt securities may be thinner and less active than for higher-grade debt securities.

***Short Sales*.**

A short sale involves the sale of a security that the seller does not own in the hope of purchasing the same security (or security exchangeable for that security) at a later date at a lower price. To make delivery to the buyer, the seller must borrow the security and is obligated to return the security to the lender, which is accomplished by a later purchase of the security. In the United States, when a short sale is made, the seller must leave the proceeds of the sale with the broker and deposit with the broker an amount of cash or U.S. Government securities sufficient under current margin regulations to collateralize its obligation to replace the borrowed securities that have been sold.

A company may attempt to limit its exposure to a possible market decline in the value of its portfolio securities through short sales of securities that its Investment Manager believes possess volatility characteristics similar to those being hedged.

***Leverage*.**

The Investment Manager, on behalf of the company, may borrow money for investment purposes. This practice, which is known as "leverage," is speculative and involves certain risks. The Investment Manager may enter into derivative and similar transactions for hedging or investment purposes that may be deemed to create leverage. In general, the use of leverage by investment programs may increase the volatility of the investments.

Trading equity securities on margin involves an initial cash requirement representing at least a percentage of the underlying security's value. Borrowings to purchase equity securities typically will be secured by the pledge of those securities. The financing of securities purchases may also be affected through reverse repurchase agreements with banks, brokers and other financial institutions. Although leverage will increase investment return if a company earns a greater return on the investments purchased with borrowed funds than it pays for the use of those funds, the use of leverage will decrease the return to the company if the company fails to earn as much on investments purchased with borrowed funds as it pays for the use of those funds. The use of leverage will in this way magnify the volatility of changes in the value of an investment. In the event that an investments equity or debt instruments decline in value, the investments could be subject to a "margin call" or "collateral call," under which the Investment Manager, on behalf of the company, must either deposit additional collateral with the lender or suffer mandatory liquidation of the pledged securities to compensate for the decline in value. In the event of a sudden, precipitous drop in value of an investment asset, the Investment Manager might not be able to liquidate assets quickly enough to pay off its borrowing. Money borrowed for leveraging will be subject to interest costs that may or may not be recovered by return on the securities purchased. The Investment Manager, on behalf of the company, may be required to maintain minimum average balances in connection with its borrowings or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate.

***Derivatives*.**

The Investment Manager, may invest in, or enter into, derivatives or derivatives transactions ("derivatives") on behalf of the company. Derivatives are financial instruments that derive their performance, at least in part, from the performance of an underlying asset, index or interest rate. Derivatives entered into by an Investment Manager can be volatile and involve various types and degrees of risk, depending upon the characteristics of a particular derivative and the portfolio of the investment asset as a whole. Derivatives permit the Investment Manager and/or Sub-Advisor to increase or decrease the level of risk of an investment portfolio, or change the character of the risk, to which an investment portfolio is exposed in much the same way as the manager can increase or decrease the level of risk, or change the character of the risk, of an investment portfolio by making investments in specific securities. Derivatives may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in derivatives could have a large potential effect on performance of a company's investment strategy. The Investment Manager's and/or Sub-Advisor's use of derivatives may include total return swaps designed to replicate the performance of a particular market segment or to adjust market or risk exposure.

If the Investment Manager invests in derivatives at inopportune times or incorrectly judges market conditions, the investments may lower the return of the company or result in a loss. The Investment Manager could also experience losses if derivatives are poorly correlated with its other investments, or if the Investment Manager is unable to liquidate the position because of an illiquid secondary market. The market for many derivatives is, or suddenly can become, illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives.

The possible lack of a liquid secondary market for derivatives and the resulting inability of the Investment Manager to sell or otherwise close a derivatives position could expose the company to losses and could make derivatives more difficult for the Investment Manager to value accurately.

***Swap Agreements*.**

The Investment Manager may enter into equity, interest rate and index rate swap agreements on behalf of the company. These transactions will be undertaken in attempting to obtain a particular return when it is considered desirable to do so, possibly at a lower cost than if the Investment Manager had invested directly in the asset that yielded the desired return. Swap agreements are two-party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than a year. In a standard swap transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or "swapped" between the parties are generally calculated with respect to a "notional amount," that is, the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular non-U.S. currency, or in a "basket" of securities representing a particular index.

***Exchange-Traded Funds ("ETFs").***

The Investment Manager may invest in shares of various ETFs, including exchange-traded index and bond funds on behalf of the company. Exchange-traded index funds seek to track the performance of various securities indices. Shares of ETFs have many of the same risks as direct investments in common stocks or bonds. The investments are subject to the risks associated with the ETF's investments. In addition, their market value is expected to rise and fall as the value of the underlying index or bond rises and falls. The market value of an ETF's shares may differ from its net asset value. In addition, ETFs may trade at a price above (premium) or below (discount) their net asset value, especially during periods of significant market volatility or stress, causing investors to pay significantly more or less than the value of the ETF's underlying portfolio. As a shareholder in an ETF (as with other investment companies), the Investment Manager, on behalf of the company, would bear its ratable share of that entity's expenses. At the same time, the Investment Managers portfolio would continue to pay investment management fees and other expenses. As a result, the Investment Managers portfolio, in effect, will be absorbing duplicate levels of fees with respect to investments in ETFs.

***Cyber Security Risk*.**

As the use of technology has become more prevalent in the course of business, the Investment Manager has become more susceptible to operational and financial risks associated with cyber security, including: theft, loss, misuse, improper release, corruption and destruction of, or unauthorized access to, confidential or highly restricted data relating to the Investment Manager; and compromises or failures to systems, networks, devices and applications relating to the operations of the Investment Manager and its service providers. Cyber security risks may result in financial losses to the Investment Manager; the inability of the Investment Manager to transact business; delays or mistakes in the calculation of the investments under management by the Investment Manager; the inability to process transactions with other parties; violations of privacy and other laws; regulatory fines, penalties and reputational damage; and compliance and remediation costs, legal fees and other expenses. The Investment Manager's service providers (including, but not limited to, its investment adviser, any sub-advisers, administrator, transfer agent, and custodian or their agents), financial intermediaries, companies in which the Investment Manager invests and parties with which the Investment Manager engages in portfolio or other transactions also may be adversely impacted by cyber security risks in their own businesses, which could result in losses to the Investment Manager. While measures have been developed which are designed to reduce the risks associated with cyber security, there is no guarantee that those measures will be effective, particularly since the Investment Manager does not directly control the cyber security defenses or plans of its service providers, other Investment Managers, financial intermediaries and companies in which it invests or with which it does business.

**Risks relating to this Offering and our shares**

***The Offering price has been arbitrarily set by the company.***

Thunder Energies has set the price of its Common Stock at $5.00 per share. Valuations for companies at Thunder Energies stage are purely speculative. The company's valuation has not been validated by any independent third party and may fall precipitously. It is a question of whether you, the investor, are willing to pay this price for a percentage ownership of a start-up company. You should not invest if you disagree with this valuation.

***The officers of Thunder Energies control the company and the company does not currently have any independent directors.***

The Founders are currently the company's controlling shareholders. Moreover, they are the company's executive officers and directors, through their ownership in Thunder Energies. This could lead to unintentional subjectivity in matters of corporate governance, especially in matters of compensation and related party transactions. The company does not benefit from the advantages of having independent directors, including bringing an outside perspective on strategy and control, adding new skills and knowledge that may not be available within Thunder Energies, and having extra checks and balances to prevent fraud and produce reliable financial reports.

The company does plan on the addition of independent directors.

***Investors in this offering may not be entitled to a jury trial with respect to claims arising under the subscription agreement and claims where the forum selection provision is applicable, which could result in less favorable outcomes to the plaintiff(s) in any such action.***

If the company 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 the company's knowledge, the enforceability of a contractual pre-dispute, jury trial waiver in connection with claims arising under the state or federal securities laws has not been finally adjudicated by the courts. However, the company believes that a contractual pre-dispute jury trial waiver provision is generally enforceable. 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. The company believes that this is the case with respect to the subscription agreement. Investors should consult legal counsel regarding the jury waiver provision before entering into the subscription agreement.

If an investor brings a claim against the company in connection with matters arising under the subscription agreement, including claims under federal securities laws, an investor 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 subscription 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 this jury trial waiver provision is not permitted by applicable law, an action could proceed under the terms of the subscription agreement with a jury trial. No condition, stipulation or provision of the subscription agreement serves as a waiver by any holder of common shares or by Thunder Energies 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.

***There is little to no current market for Thunder Energies' shares.***

Thunder Energies is listed on the OTC Markets Pink with a pending application to OTCQB. At the current time the Company's trading is limited. There is no guarantee there will be demand for the shares. Investors should assume that they may not be able to liquidate their investment or pledge their shares as collateral for some time.

**Risks Related to Certain Conflicts of Interest**

***The interests of Thunder Energies and the company's other affiliates may conflict with your interests.***

The company's Amended and Restated Certificate of Incorporation, bylaws and Florida law provide company management with broad powers and authority that could result in one or more conflicts of interest between your interests and those of the officers and directors of Thunder Energies, and the Company's future investments. This risk may increase if and investment targets are controlled by Thunder Energies or our officers and directors, through ownership, as an officer or director contractually or any combination thereof. Potential conflicts of interest include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Thunder Energies and the company's other affiliates will not be required to disgorge any profits or fees or other compensation they may receive from any other business they own separate from the company, and you will not be entitled to receive or share in any of the profits, return, fees or compensation from any other business owned and operated by the management and their affiliates for their own benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The investment target may engage Thunder Energies, or other companies affiliated with Thunder Energies to perform services, and determination for the terms of those services will not be conducted at arms' length negotiations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The company's officers and directors are not required to devote all of their time and efforts to the affairs of the company.

**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 all the shares are worth the same amount, and you paid more than earlier investors for your shares. If you invest in our Preferred Stock, your interest will be diluted immediately to the extent of the difference between the Offering price per share of our Preferred Stock and the pro forma net tangible book value per share of our Preferred Stock after this Offering.

As of September 30, 2022, the net tangible book value of the Company was a deficit of $4,480,081. Based on the number of shares of Common Stock issued and outstanding as of the date of the offering (20,140,735) that equates to a net tangible book value of approximately ($0.212) per share of Common Stock on a pro forma basis. Based on the total number of shares of Common Stock that would be outstanding assuming full subscription (35,140,735) at total net proceeds of $73,400,000, that equates to approximately $1.96 of tangible net book value per share.

Thus, if the Offering is fully subscribed, the net tangible book value per share of Common Stock owned by our current stockholders will have immediately increased by approximately $2.17 without any additional investment on their behalf and the net tangible book value per share for new investors will be immediately diluted by $2.83 per share. These calculations do not include the costs of the Offering, and such expenses will cause further dilution.

**Future dilution** 

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

If the company decides to issue more shares, an investor could experience value dilution, with each share being worth less than before, and control dilution, with the total percentage an investor owns being less than before. There may also be earnings dilution, with a reduction in the amount earned per share (though this typically occurs only if the company offers dividends, and most early stage companies are unlikely to offer dividends, preferring to invest any earnings into the company).

The type of dilution that hurts early-stage investors most often 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):

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· 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.

This type of dilution might also happen upon conversion of convertible notes into shares. Typically, the terms of convertible notes issued by early-stage companies provide that in the event of another round of financing, the holders of the convertible notes get to convert their notes into equity at a "discount" to the price paid by the new investors, i.e., they get more shares than the new investors would for the same price. Additionally, convertible notes may have a "price cap" on the conversion price, which effectively acts as a share price ceiling. Either way, the holders of the convertible notes get more shares for their money than new investors. In the event that the financing is a "down round" the holders of the convertible notes will dilute existing equity holders, and even more than the new investors do, because they get more shares for their money. Investors should pay careful attention to number of convertible notes that the company has issued and may issue in the future, and the terms of those notes.

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.

**PLAN OF DISTRIBUTION AND SELLING SECURITYHOLDERS**

**Plan of Distribution**

Thunder Energies, Inc. is offering a maximum of 15,000,000 shares of Common Stock on a "best efforts" basis.

The cash price per share of Common Stock is $5.

While Shares are expected to be offered and sold directly by the Company and its respective Officers and employees, the Company has reserved the right to offer and sell Shares through the services of independent broker-dealers who are member firms of the Financial Industry Regulatory Authority ("FINRA") and who will be entitled to receive customary and standard commissions of up to ten percent (10%) of the Proceeds received for the sale of Shares. Notwithstanding the foregoing, the amount and nature of commissions payable to broker-dealers is expected to vary in specific instances and may be lower than the one listed herein. The Investor who is admitted to the Company through such broker-dealer (and not the Company) may be responsible for all such commissions payable to broker-dealers (and such payments may reduce the Investor's invested capital) or the Company may pay such commissions.

The company is offering its securities in all states.

**Selling Shareholders**

No founders will be selling securities into the offering; all net proceeds in this offering will go to Thunder Energies, Inc.

**Investors' Tender of Funds**

After the Offering Statement has been qualified by the Securities and Exchange Commission (the "SEC"), the company will accept tenders of funds to purchase the shares. Prospective investors who submitted non-binding indications of interest during the "test the waters" period will receive an automated message from us indicating that the Offering is open for investment. (NOTE: AT THIS TIME NO "TEST THE WATER" PRESENTATIONS HAVE BEEN MADE, NO PROSPECTIVE INVESTIONS HAVE SUBMITTED INDICATIONS OF INTEREST AND NO PRESENTATION MATERIALS ARE AVAILABLE). We will conduct multiple closings on investments (so not all investors will receive their shares on the same date). Each time the company accepts funds transferred from the Escrow Agent is defined as a "Closing." The funds tendered by potential investors will be held by our escrow agent, TBD (the "Escrow Agent") and will be transferred to us at each Closing. The escrow agreement can be found in Exhibit 8 to the Offering Statement of which this Offering Circular is a part.

**Process of Subscribing**

You 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 you are not an "accredited investor" as defined under securities law, you are investing an amount that does not exceed the greater of 10% of your annual income or 10% of your net worth (excluding your 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.

If a subscription is rejected, all funds will be returned to subscribers within thirty days of such rejection without deduction or interest. Upon acceptance by us of a subscription, a confirmation of such acceptance will be sent to the subscriber. Escrow Agent has not investigated the desirability or advisability of investment in the shares nor approved, endorsed or passed upon the merits of purchasing the securities.

The company intends to engage a registered transfer agent with the SEC, who will serve as transfer agent to maintain shareholder information on a book-entry basis; there are no set up costs for this service, fees for this service will be limited to secondary market activity. The company estimates the aggregate fee due to the transfer agent for the above services to be $35,000 annually.

The Company has engaged Dalmore Group, LLC ("Dalmore"), a broker-dealer registered with the Commission and a member of FINRA, to act as the broker-dealer of record for this Offering, but not for underwriting or placement agent services. As compensation, the Company has agreed to pay Dalmore a commission equal to 1% of the amount raised in the Offering to support the Offering on all newly invested funds after the issuance of a No Objection Letter by FINRA. In addition, the Company has paid Dalmore a one-time advance set up fee of $5,000 to cover reasonable out-of-pocket accountable expenses actually anticipated to be incurred by Dalmore, such as, among other things, preparing the FINRA filing. Dalmore will refund any fee related to the advance to the extent it is not used, incurred or provided to the Company. In addition, the Company will pay a $20,000 consulting fee that will be due after FINRA issues a No Objection Letter and the Commission qualifies the Offering. An assumption of $535,000 in total fees paid to Dalmore were used in estimating the expenses of this Offering.

**USE OF PROCEEDS TO ISSUER** 

The following discussion addresses the use of proceeds from this Offering. The company currently estimates that, at a per share price of $5, the net proceeds from the sale of the 10,000,000 shares of Preferred Stock will likely be $45,000,000 after deducting the estimated offering expenses of approximately $5,000,000.

The following table breaks down the use of proceeds into different categories under various funding scenarios:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **25%** | **50%** | **75%** | **100%** |
| Gross Proceeds | $18750000 | $37500000 | $56250000 | $75000000 |
| Estimated Offering Expenses | $800000 | $1600000 | $2400000 | $3200000 |
| Dalmore | $125000 | $250000 | $375000 | $500000 |
| Net Proceeds | $17825000 | $35650000 | $53475000 | $71300000 |
| Overhead - 12 months | $1782500 | $3565000 | $5347500 | $7130000 |
| Minority Position Asset Investments | $8021250 | $20855250 | $24063750 | $32085000 |
| Minority Mining Assets Investments | $4812750 | $4812750 | $4812750 | $4812750 |
| Entertainment/Lifestyle Asset Investments | $3208500 | $3208500 | $9625500 | $13636125 |
| Infrastructure Technologies | $0 | $2406375 | $7219125 | $10227094 |
| NASDAQ Uplift | $0 | $802125 | $2406375 | $3409031 |

---

**THE COMPANY'S BUSINESS**

**THUNDER ENERGIES BUSINESS OVERVIEW**

Our principal business objective is to generate revenue through strategic partnerships and joint ventures that focus on income generation coupled with capital preservation through proactive investment management utilizing a fiscally conservative liquidity and investment posture to optimize returns to our shareholders. We achieve this vision through prudent management of borrowed funds together with our capital and shareholders' equity that is invested primarily in a diversified balance sheet of real estate investments and other cash flowing assets that earns the spread between the yield on our assets and the cost of our borrowings and hedging activities by an appointed Investment Manager.

The business is financed by an appropriate mix of shareholders' equity and future sale of corporate debt to achieve its primary business objective of an annual return on equity greater than its cost of equity, while maintaining a sound financial structure. This is achieved by rigorous due diligence to vet investment assets that have significant upside potential while minimizing risks through an investment strategy that pursues an "absolute return" or positive returns to preserve investor capital and returns to our shareholders. This strategy enables the company to maximize profitability by taking advantage of different market cycles, while diversifying risk. By partnering with a top-tier Investment Management Firm, the company's investment objectives are to generate consistent capital appreciation over the long-term, with relatively low volatility with the pursuit of an "absolute return" or seeking to achieve positive returns, by, for example, taking long and short positions and by engaging in various hedging strategies, regardless of the performance of the traditional equity and fixed income markets.

**We believe that our business objectives are supported through our long-term conservative financial vision, the diversity of our investment strategy and comprehensive risk management approach to preserve investor capital for our shareholders.**

**KEYS TO SUCCESS**

Thunder Energies' key to success is the effective negotiation of value in the acquisition of certain income producing assets where the return on investment is based on asset appreciation and cash flow from the asset. The Company's management team are seasoned real estate developers, managers and investment strategy specialists.

**THE COMPANY'S CURRENT INVESTMENTS**

At the current time the Company has investments in several diversified assets:

&nbsp;&nbsp;&nbsp;&nbsp;1. Fourth and One, LLC – Thunder Energies is a minority investor in this company which owns the Kinsley Mountain mine project.
Preliminary soil sampling is complete which indicates significant commercial minerals and ores available including silver, lead copper,
other critical metals, gold and marble. The estimated valuation of the property is $33 million based on a November 10, 2022 review of
site data. The Kinsley Mountain property is located in the Antelope Mountains in northeastern Nevada divided by Elko County to the north
and White Pine County to the south. It is approximately 93.2 miles northeast of Ely, Nevada and 51.6 miles southwest of Wendover, Nevada.

The Kinsley Mountain property is attractive as a precious and base metal (battery metals) prospect for the following reasons:

Favorable jurisdiction for the conduct of exploration and mining activities. Nevada is considered one of the best localities in the world for finding and developing a mineral resource.

Recent drilling by other mining companies has demonstrated the existence of gold mineralization in a geologic setting very similar to that which exists in the NW portion of the claim block and at possibly a shallower depth and other mining companies have expressed interest in leasing this ground.

The geology, mineralogy and milling details are well known in the general area.

Permitting, environmental, and infrastructure concerns are minimal.

Water rights have been secured.

Critical base metals have been identified and historically produced from the property. Copper, tungsten, lead, molybdenum, zinc, antimony and bismuth have been found in ore concentrations and in anomalous amounts.

&nbsp;&nbsp;&nbsp;&nbsp;2. Bear Village Resorts, Inc. – Thunder Energies is a minority investor in this company which is focused on development of family
 resorts. The controlling shareholders of Thunder Energies also control Bear Village. Bear Village has an effective Regulation A
 Offering.

&nbsp;&nbsp;&nbsp;&nbsp;3. Truvata Holdings Limited/RoRa Holdings, Inc. – Thunder Energies announced on May 26, 2022, a $40 million funding pact with Turvata
Holdings Limited for 50,000 RoRa™ Prime coins. This new type of crypto currency is backed by real assets, including copper mines,
gold, rhodium, real estate, oil and gas, precious gems and various other high-value assets which falls right in line with the asset backed
model Thunder Energies looks to employ. As a decentralized cryptocurrency based on Ethereum, the RoRa™ Prime coins are inherently
stable assets and provide a convenient means of value for regular transactions. RoRa™ Prime coins expand the mobility of crypto
assets across the ecosystem as adoption increases within the Global FI standards. The synergistic management philosophies of providing
asset backed business models is an excellent match as both companies grow in their respective fields.

&nbsp;&nbsp;&nbsp;&nbsp;4. Sixty-Six Oilfield Services, Inc. – Sixty-Six is a publicly traded company that has recently concluded a reverse merger and
a Regulation A offering. The new company operations focus on water treatment and solar energy acquisitions. Thunder Energies has executed
a letter of intent to purchase up to $5 million in shares of the company once their offering is registered in Florida.

5. Las Vegas Aces – Thunder Energies announced on December 20, 2022, that it has negotiated a partnership and marketing
 agreement with the Las Vegas Aces WNBA team that is owned by Mark Davis who also owns the Las Vegas Raiders NFL team. The
 agreement provides Thunder Energies the potential to financially partner with the organization and establishes it as a major
 marketing partner with the Aces to bring brand recognition to the company, its Nevada owned Kinsley Mountain asset and to strengthen
 their ties to champion change in multiple industries. The Aces are the 2022 WNBA Champions after only their fifth season and they
 have advanced to the postseason in each of the last four years and these two forward-thinking and like-minded organizations will
 help to align both brands into the future.

**OTHER MANAGED ASSETS**

The Company may seek to achieve its investment objectives through an Investment Management Firm, by investing in, among other things, a combination of corporate debt obligations of varying maturities, other corporate income-producing securities, and income-producing securities of non-corporate issuers, such as U.S. Government securities, municipal securities and mortgage backed and other asset-backed securities issued on a public or private basis.

**Appointment of Investment Manager**

The Investment Manager is expected to manage the Company's assets in a manner consistent with the Investment Management Agreement between Thunder Energies and the Investment Manager (the "Agreement"), and the investment objectives, guidelines, and constraints outlined in this IPS. The Investment Manager shall have a fiduciary responsibility to act in accordance with the Agreement.

The Portfolio assets will be managed by an experienced investment management firm with fiduciary responsibilities that:

&nbsp;&nbsp;&nbsp;&nbsp;a) At all times is registered and in good standing with the Financial Industry Regulatory Authority (FINRA) and the SEC as an investment
advisor under the Investment Advisers Act of 1940 (where applicable);

&nbsp;&nbsp;&nbsp;&nbsp;b) Acknowledges in writing that it is a fiduciary with respect to the Portfolio of assets it manages;

&nbsp;&nbsp;&nbsp;&nbsp;c) Has at least five years of experience in actively managing fixed income bond portfolios and is capable of managing the Investment
Portfolio such that the Portfolio will maintain an overall dollar-weighted average rating of "Baa3" or greater by Moody's
or "BBB-" or greater by S&P (an "Investment Grade Rating");

&nbsp;&nbsp;&nbsp;&nbsp;d) Currently manages in excess of ten billion ($10.0B USD) in total assets;

&nbsp;&nbsp;&nbsp;&nbsp;e) The U.S. domiciled firm carries an investment grade rating of Baa3 (Moody's) and or BBB- (Standard and Poor's) or higher;

&nbsp;&nbsp;&nbsp;&nbsp;f) Provides detailed information on the history of the firm, key personnel, fee schedule, and support personnel and demonstrates financial
and professional staff stability;

&nbsp;&nbsp;&nbsp;&nbsp;g) Clearly articulates the investment strategy that will be followed and documents that the strategy has been successfully adhered to
over time; and

&nbsp;&nbsp;&nbsp;&nbsp;h) Has no outstanding legal judgments or past judgments that materially and adversely affects its ability to provide services to Thunder
Energies.

The role of the Investment Manager is to manage the assets of the Portfolio by providing the following investment management services:

&nbsp;&nbsp;&nbsp;&nbsp;a) Acquisition:

The Investment Manager is delegated responsibility for following and maintaining the asset allocation strategy for the Portfolio and discretion to determine the Portfolio's individual security selections.

&nbsp;&nbsp;&nbsp;&nbsp;b) Sourcing of Investments:

Identifying various Corporate Securities, Government Securities, and other permitted investments that satisfy established parameters for diversification and portfolio mix.

&nbsp;&nbsp;&nbsp;&nbsp;c) Risk Management:

The performance of the Investment Manager is measured versus a fully invested market index, or combination of market indexes, representative of the Investment Manager's investment style, strategy, asset allocation and risk level. Investment Manager shall be permitted to utilize risk reduction vehicles including, but not limited to, interest rate swaps, credit default swaps and/or make whole call provisions.

&nbsp;&nbsp;&nbsp;&nbsp;d) Monitor Investment Performance:

Monitoring and tracking the risks and returns on individual investments regularly, including performing mark-to-market valuations frequently, but not less frequently than on a bi-weekly basis.

&nbsp;&nbsp;&nbsp;&nbsp;e) Reviewing:

Reviewing the Portfolio performance and investment guidelines on a monthly basis to determine whether the investments continue to meet the Portfolio's objectives and financial circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;f) Reporting/Advising:

Reporting/Advising quarterly on the performance of the Portfolio to Thunder Energies and/or Thunder Energies designees, to keep Thunder Energies apprised of the Portfolio's investment progress as it relates to the Portfolio performance and the reasonably anticipated cash requirements for ongoing operations and debt service payments.

&nbsp;&nbsp;&nbsp;&nbsp;g) Liquidation:

Liquidation of the Portfolio assets also rests with the Investment Manager, in accordance with this IPS.

**Monitoring of Investment Manager**

Thunder Energies will have an ongoing review and analysis of the Investment Manager as it is just as vitally important as the due diligence implemented during the Investment Manager selection process. Thunder Energies may regularly monitor the Investment Manager as outlined below:

a) **Step 1 - Ongoing Monitoring:** 

Thunder Energies will perform on-going analysis of the Investment Manager regularly, but not less than on a quarterly basis. In addition to reviewing quarterly investment performance, the following will be evaluated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investment Manager's adherence to the IPS guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Material changes in the Investment Manager's organization, investment philosophy and/or personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The volatility of the investment rates of return of the Investment Manager compared to the volatility of an appropriate market index
and/or peer group, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Comparison of the Investment Manager's results to appropriate indices and/or peer groups.

b) **Step 2 - Formal Watchlist:** 

If Thunder Energies determines that any of the above factors, or any other development regarding the Investment Manager's performance or organization, warrants a more thorough examination, Thunder Energies will place the Investment Manager on a formal "watchlist". Factors evaluated during the watchlist examination include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Extraordinary events (organizational issues)

Extraordinary events may include such things as:

---

| |
|:---|
| Change in ownership (i.e., key people "cash out") |
| Change in professionals |
| Changes to an Investment Manager's philosophy or the process it uses to implement the agreed upon strategy |
| Investment Manager is involved in material litigation or fraud |
| Client-servicing problems |
| Significant account losses or significant account growth |
| Change in cost |
| Change in financial condition or corporate rating |
| Extreme performance volatility |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Intermediate-term performance in relation to appropriate market index

Intermediate-term performance standards measure an Investment Manager's performance in relation to the appropriate market index for a time period not longer than ten years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Short-term performance in relation to appropriate "style (peer) group"

Short-term performance standards incorporate a time period of at least three years. Investment Manager is expected to demonstrate favorable cumulative and rolling three- to five-year risk-adjusted performance compared to its peer group.

c) **Step 3 - Replace or Retain:** 

As a result of the watchlist examination of the Investment Manager, a recommendation from Thunder Energies to either **replace or retain** the Investment Manager will be made. If a recommendation is made to retain the Investment Manager, a watchlist evaluation period may be established to more closely monitor the Investment Manager. This period will generally be four quarters, but can be shorter or longer depending on the circumstances leading to the watchlist examination.

It is at Thunder Energies discretion to take corrective action by replacing an Investment Manager, as it deems appropriate at any time. The watchlist is not the only route for removing an existing Investment Manager. The aforementioned events, or any other events of concern identified by Thunder Energies, may prompt the immediate removal of an Investment Manager without it being watchlisted.

Thunder Energies Investment Manager financial strategy is depicted below:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thunder Energies raises capital from several sources:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Offering a $75M Regulation-A capital raise at $5/share in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Funding pact of $40M in Truvata Holdings Limited/RoRa Holdings, Inc. in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Joint venture agreement with Fourth and One, LLC to develop precious metal mining operations in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Partners with Bear Village Resorts in Q1 2023 to develop real estate projects in Georgia and Tennessee<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Letter of Intent to purchase $5.0M in shares of Sixty-Six Oilfield Services, Inc.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Future Thunder Energies $500M bond offering in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Operational revenues from all assets after expenses are paid | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thunder Energies raises capital from several sources:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Offering a $75M Regulation-A capital raise at $5/share in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Funding pact of $40M in Truvata Holdings Limited/RoRa Holdings, Inc. in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Joint venture agreement with Fourth and One, LLC to develop precious metal mining operations in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Partners with Bear Village Resorts in Q1 2023 to develop real estate projects in Georgia and Tennessee<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Letter of Intent to purchase $5.0M in shares of Sixty-Six Oilfield Services, Inc.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Future Thunder Energies $500M bond offering in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Operational revenues from all assets after expenses are paid | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Thunder Energies raises capital from several sources:<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Offering a $75M Regulation-A capital raise at $5/share in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Funding pact of $40M in Truvata Holdings Limited/RoRa Holdings, Inc. in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Joint venture agreement with Fourth and One, LLC to develop precious metal mining operations in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Partners with Bear Village Resorts in Q1 2023 to develop real estate projects in Georgia and Tennessee<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Letter of Intent to purchase $5.0M in shares of Sixty-Six Oilfield Services, Inc.<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Future Thunder Energies $500M bond offering in 2023<br> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; · Operational revenues from all assets after expenses are paid |
| ![](image_002.jpg) |  |  |
| Funds raised are placed into a Bankruptcy Remote Entity managed by an Institutional Bank and Investment Manager governed by the Investment Policy Statement (IPS) and Account Control Agreements (ACA) |  |  |
| ![](image_002.jpg) |  |  |
| An Institutional Account will be actively managed by an Investment Banking Firm with an "A" rating or higher to build a fixed-income portfolio and procure US Treasuries & other securities with laddered or barbell maturities. | ![](image_003.jpg) | Funds created through the "spread" are utilized for:<br> &nbsp;&nbsp;&nbsp;&nbsp; · Capital preservation and protection<br> &nbsp;&nbsp;&nbsp;&nbsp; · Debt servicing<br> &nbsp;&nbsp;&nbsp;&nbsp; · Purchasing of future project assets |

---

Steps in this investment process are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. A portion (up to 75%) of capital raised from several sources will be placed into an Institutional Account with an investment grade
rated or higher financial rating and managed by an Investment Manager governed by the Investment Policy Statement (IPS) and Account Control
Agreement (ACA).

&nbsp;&nbsp;&nbsp;&nbsp;2. The investments will be actively managed.

&nbsp;&nbsp;&nbsp;&nbsp;3. The capital raised will be invested in both Investment Grade and Non-Investment Grade fixed-income US Treasuries and Securities, Government
Secured Entities (GSE's), Sovereign Debt, Municipals and Corporate Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Institutional Account may be leveraged up to 10:1 by the Investment Manager, on behalf of the company, with a laddered or barbell
maturity strategy from thirty (30) days to thirty (30) years.

&nbsp;&nbsp;&nbsp;&nbsp;5. The investment portfolio will be stress tested on a daily basis as to not exceed the leverage target, confirm that at least 75% of
the portfolio is in Investment Grade fixed-income and meeting the required over-collateralization target to reduce the risk of potential
margin calls. It should be noted that the default rate of investment grade bonds over the last century as reported by Moody's is
less than 1.0% which statistically lowers the probability of a margin call significantly.

&nbsp;&nbsp;&nbsp;&nbsp;6. The investment portfolio will have maintenance collateral in several different forms: the fixed-income portfolio, cash flow from the
fixed-income coupons, liquid cash, maintenance cash, project(s) equity/assets and cash flow from other (real estate) assets and future
$500M corporate debt issuance.

&nbsp;&nbsp;&nbsp;&nbsp;7. The Investment Manager may use U.S. Treasury Inflation-Protection Securities (TIPS) and Step-ups to protect against additional market
risks.

&nbsp;&nbsp;&nbsp;&nbsp;8. A portion (up to 75%) revenue streams after expenses from a diversified pool of revenues, equity and other assets will be placed into
the investment portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;9. The strategy provides principal preservation, protection and liquidity to investors and shareholders governed by the IPS and ACA.

It is not the intent to make the strategy sound too simplistic, but to maintain some brevity we offer the following as fundamentals of the strategy together with managing the risks.

A portion of capital is raised through various instruments as detailed below:

&nbsp;&nbsp;&nbsp;&nbsp;· Regulation-A Offering of $75M at $5/share in 2023

&nbsp;&nbsp;&nbsp;&nbsp;· Funding pact of $40M in Truvata Holdings Limited/RoRa Holdings, Inc. in 2023

&nbsp;&nbsp;&nbsp;&nbsp;· Joint Venture Agreement with Fourth and One, LLC for to develop precious metal mining operations in Q4 2023

&nbsp;&nbsp;&nbsp;&nbsp;· Partners with Bear Village Resorts in Q1 2023 to develop commercial real estate projects in Georgia and Tennessee

&nbsp;&nbsp;&nbsp;&nbsp;· Letter of Intent to purchase $5.0M in shares of Sixty-Six Oilfield Services, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;· Future Thunder Energies corporate debt offering of $500M in 2023

&nbsp;&nbsp;&nbsp;&nbsp;· Operational revenues from other assets after expenses are paid

Cash flow from the above sources are then placed in and managed by a third-party Institutional Investment Banking Firm such as Merrill Lynch, Morgan Stanley, William Blair & Company, etc. and managed by an Institutional Investment Manager governed by the IPS and ACA within a Bankruptcy Remote Entity. The portfolio will be invested in various fixed-income Investment and Non-Investment Grade US Treasuries and Securities, Government Secured Entities (GSE's), Sovereign Debt, Municipals and Corporate Bonds, cash flow from the bond coupons, liquid cash, maintenance cash for the account, and equity and cash flow from other assets. The surplus funds or the spread created from the portfolio will be used for capital preservation and protection of our investors and shareholders, provide a backstop to service debt should an unforeseeable catastrophic event occur and purchasing of future project assets.

The benefits of the investment strategy are the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. Investors and shareholders have the security of having a portion of all raised funds invested in fixed-income US Government backed
Securities from one half years to 30 years with the potential upside for enhanced protection.

&nbsp;&nbsp;&nbsp;&nbsp;2. The Investment Manager will manage the fixed-income portfolio that will include US Government backed securities including US Treasuries
and Securities, Government Secured Entities (GSE's), Sovereign Debt, Municipals, Corporate Bonds, which may include, Strips, TIPS, and
Step-ups.

&nbsp;&nbsp;&nbsp;&nbsp;3. The enhanced protection is provided by primarily procuring Investment Grade securities (no less than 75% of the managed portfolio)
with a rating of Baa3 (Moody's) or BBB- (S&P) or higher to minimize defaults which could lead to a margin call.

Addressing some other financial risks, we offer the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. US Treasuries and Agencies are the base of the portfolio, which are securities backed by the full faith and credit of the United States
Government which has never defaulted on any government debt instruments.

&nbsp;&nbsp;&nbsp;&nbsp;2. The large majority of fixed-income securities being held in the portfolio will be investment grade of Baa3 (Moody's) or BBB- (S&P)
or higher which have less than a 1.0% default rate as averaged over the past century. These guidelines are to help mitigate the event
of a potential default which could potentially lead to a margin call.

&nbsp;&nbsp;&nbsp;&nbsp;3. Using the current equity/assets and future operational revenues from various other assets offers additional coverage or collateral
for any margin concerns due to then current market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;4. The collateral to backstop investors will be in several different forms: the fixed-income portfolio, cash flow from the coupons, liquid
cash, maintenance cash, asset(s) equity, cash flow from the other assets and projects and future corporate debt and equity issuance(s).

Many of the risks can be minimized and reduced significantly with the experience of a seasoned Institutional Investment Banking Firm and Investment Manager as detailed below. As an extra layer of protection, we will have an in-house Sub-Advisor overseeing the Investment Manager on a daily basis.

---

| | | | |
|:---|:---|:---|:---|
| **Risk** | **Definition** | **Cause and Effect** | **How a Professional**<br> **Investment Managers**<br> **help Manage these Risks** |
| **Portfolio Composition** | We will maintain a well-diversified industry sector approach in accordance with our Investment Policy Statement (IPS) | Bonds may lose value if their credit ratings are downgraded | Targeted assets and allocations will be rebalanced to remain in compliance with the IPS |
| **Interest Rate** | The risk of associated with on-going decline and rise of interest rates | Rising yields cause bond prices to fall | By actively managing and buying both short and long-term bonds based on the direction they believe interest rates are heading |
| **Leverage** | We generally expect to maintain an economic leverage ratio no greater than 10:1 | Hedging strategies can either increase or decrease the total leverage with a portfolio | By stress testing the portfolio daily on a market-to-market basis can keep the portfolio on target |
| **Cash flow** | The uncertainty of future cash flows to a bond holder | In a low interest rate environment, a bond may be called prior to maturity, such as in Mortgage-Backed Security (MBS) resulting in fewer interest payments than anticipated | Through proactive use of sophisticated tools to model prepayment trends, assessments can be made of the likelihood of a MBS being prepaid prior to maturity |
| **Credit** | The risk that a bond will default and not make timely payments | Bonds may lose value if their credit ratings are downgraded | Bond assessments will be managed to optimize risk-adjusted returns through assessments of fundamental credit research and market conditions |
| **Liquidity** | The risk that bond cannot be bought or sold quickly | A market crisis can reduce liquidity resulting in difficulty in selling undesired bonds, further depressing the price of those bonds | By actively monitoring of market liquidity to determine the ease with which bonds may be sold |
| **Yield Curve** | The risk associated with the changing slope of the yield curve | A flattening yield curve causes short-term bonds to under-perform long-term bonds | By actively targeting yield curve changes to reposition long- and short-term bonds based on expected changes in yield curve slope |

---

**INVESTMENT RESTRICTIONS**

Prohibited investments include, but are not limited to the following:

1) Currencies (other than U.S. Dollars)

2) Commodities

3) Futures Contracts (unless used for hedging purposes)

4) Hedge Portfolios

5) Leveraged Buyouts

6) Puts, calls, straddles or other option or swap strategies (unless used for hedging purposes)

7) Short Sales (unless used for hedging purposes)

8) Venture Capital

9) Investments by the Investment Manager in their own securities, their affiliates or subsidiaries (excluding money market accounts authorized by Thunder Energy in the IPS)

All investments outside the IPS are subject to the prior written approval of Thunder Energies on a case-by-case basis.

**CONFLICTS OF INTEREST**

We are not aware of any conflicts of interest between the founders of Thunder Energies, Inc. and the founders. Potential sources of conflicts are discussed below.

**General**

At the current time management contracts do not have conflicts in the operation of the Company.

**Allocation of Our Affiliates' Time**

Thunder Energies relies on Thunder Energies executive officers and other professionals who act on behalf of Thunder Energies, for the day-to-day operation of our business.

As a result of the executives competing responsibilities, their obligations to other investors and the fact that they will continue to engage in other business activities on behalf of themselves and others, they will face conflicts of interest in allocating their time to Thunder Energies and other entities and other business activities in which they are involved. However, the company believes that the executive officers and investment professionals have sufficient depth to fully discharge their responsibilities to the company and the other entities for which they work. The long-term plan is for the executives to resign from their other operations and dedicate their time to Thunder Energies.

**Receipt of Fees and Other Compensation by Thunder Energies and its Affiliates**

Thunder Energies and its affiliates will receive substantial fees from the company, which fees will not be negotiated at arm's length. These fees could influence Thunder Energies advice to the company as well as the judgment of the affiliated executives of Thunder Energies. For additional information see "The Company's Business – Support from Thunder Energies" for conflicts relating to the payment structure between Thunder Energies and its' affiliates.

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

The following discussion includes information from the audited financial statements for the period ending September 30, 2022 and should be read in conjunction with our financial statements and the related notes included in this Offering Circular. Audited financials are be completed in accordance with the Regulation A requirements and have been filed with the SEC through the EDGAR System.

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.

**Overview**

Thunder Energies is an OTC Markets listed company (OTC:TNRG) and is fully PCAOB audited. The current ownership group purchased controlling interest in the company on February 23, 2022. Since that time the Company has continued to clean the financials, update the corporate finings and structure. The Company is up to date on filing will continue to file its Annual and Quarterly reports with PCAOB audit review.

**Results of Operations**

Over the past 12 months, the prior ownership allowed its business to decline with $0 revenues. The current ownership has taken over the prior management and reviewed all financials and updated all the filings.

As a result of the foregoing, the company generated a net operating loss of $341,258 with additional losses due to stock and interest expenses totaling $2,965,402 through September 30, 2022.

**Plan of Operation**

Upon completion of this Offering, the company intends to fund investments with the proceeds from this Offering and use strategic acquisition of assets.

**SHAREHOLDERS, DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES**

The table below sets forth the directors of the company.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office (If<br> indefinite give date <br> of appointment)** |
| Eric Collins | Director, Chairman | 57 | July 21, 2022 |
| Ricardo Haynes | Director | 55 | July 21, 2022 |
| Lance Lehr | Director | 56 | July 21, 2022 |
| Tori White | Director | 30 | July 21, 2022 |
| Donald R. Keer | Director | 61 | July 21, 2022 |

---

The table below sets forth the officers of THUNDER ENERGIES.

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Age** | **Term of Office (If<br> indefinite give date <br> of appointment)** |
| Eric Collins | Director, Chairman | 57 | July 21, 2022 |
| Ricardo Haynes | President/CEO | 55 | July 21, 2022 |
| Lance Lehr | VP Operations | 56 | July 21, 2022 |
| Matthew D. White | Interim Controller | 22 | July 21, 2022 |
| Tori White | Development Consultant | 30 | July 21, 2022 |
| Donald R. Keer | Attorney, Secretary, Treasury | 61 | July 21, 2022 |

---

**Biographies**

**Eric Collins** - **Director, Chairman**

Mr. Collins is a well-polished leader with over 39 years in project management experience specializing in logistics planning for the U.S. Air Force, Special Operation Forces Division where he was responsible for oversight, coordination and execution of operational cost efficiencies of funds, time, material and facilities to resolve problems and issues in support and maintenance programs. This included preparing briefings and presentations for senior leadership using methods such as data mining, data modeling, and or cost or benefit analysis to acquire and secure new government contracts. Over the past 5 years Mr. Collins has continued working with the US Air Force at Warner Robins Air Base where he manages the defense budget and contracts. He has also worked for Top Flight Development Group Inc. in Atlanta, GA buying and selling property for residential development.

**Ricardo Haynes**

**President/CEO**

Highly accomplished business development executive with more than 20 years of experience in producing exponential revenue growth, cultivating enduring relationships within the hospitality and financial industry. Worked for Marriot Corporation for over 15 years in property development, licensing and investment. Also operated in the financial industry providing corporate bond placement and project financing. Total experience includes commercial real estate sales and loan origination with regional and nationally based lending institutions, corporate finance consulting. Grass roots development experience in creating and issuing collateralized bond obligation and related instruments. Over the last 5 years Mr. Haynes has worked assisting clients in construction financing in both commercial and hospitality markets with Candela Group, Ltd. In Alberta, Canada.

**Lance L. Lehr**

**Operations Manager**

Mr. Lehr has 25 years of senior management experience in the Hospitality Industry. He has worked at the senior most level of projects ranging from Ski Area's with Hotel, Condo, F&B and Adventure Parks to Indoor Water Park Resorts development and operations. Mr. Lehr serves as a senior advisor to one POS, a hospitality technology leader and has developed numerous independent companies and concepts. His entrepreneurial management style of leadership empowers associates and holds them accountable for high level performance. This has led to the successful development and operation of several companies in the hospitality industry that focus on franchise like systems and aggressive labor and cost management. Mr. Lehr's entrepreneurial focus leads to creative solutions that deliver superior result in today's dynamic marketplace. Through aggressive cost control coupled with out of the box sales building efforts and an intense focus on the guest experience, Mr. Lehr has been able to provide superior long term results for his clients. Over the past 5 years has worked as President of Hybrid Hospitality, LTD in Erie, PA developing amusement parks, water parks and hospitality properties for clients.

**Matthew D. White**

**Interim Controller**

Mr. Matthew D. White received a BS in Finance from Wingate University-NC in August 2020. Since graduation Mr. White has worked with Thunder Energies in establishing financial controls and systems for the financial reporting of the Company.

**Tori White**

**Development Consultant**

Ms. White has been working for Northpointe Realty since 2015 in commercial and residential real estate leasing and contracting. Prior to that, she worked at Jlew Enterprises, LLC in Boca Raton, FL in their residential construction group from 2012-2015. Over the last 5 years Ms. White has marketed and sold commercial and residential real estate.

**Donald R. Keer, P.E., ESQ.**

**Corporate Attorney**

Mr. Keer is an attorney and a professional engineer who spent the first half of his career as a construction project manager working for Fluor Corporation and then local developers in New Jersey and Pennsylvania. Mr. Keer has also been an expert witness for various construction issues including delay damages, building code standards, construction technologies and insurance claims.

For the past 25 years Mr. Keer has represented business clients working on construction projects, real estate development, mergers and acquisitions and publicly traded companies to ensure their businesses and construction projects move forward in a timely manner. He is a sole practitioner and has had his own law practice for 25 years.

**Corporate Partners**

**Fairview Hospitality, LLC** 

Fairview Hospitality, LLC is a full service hospitality management company located in Erie, Pennsylvania. Fairview Hospitality, LLC concentrates on the development, operation and long term management of; indoor water park resorts, select and full service hotels, outdoor water parks, family entertainment centers and franchised & independent restaurant concepts.

Services offered include: feasibility study analysis, representing ownerships interests during construction, and the long term day-to-day management of ownership's asset and business. We also provide interior design and procurement, accounting and cost control, rate and yield management, sales and marketing services, associate customer service training, human resource management and career development for our managed properties.

**COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS**

The company did not pay any of its officers or directors a salary through September 30, 2020.

The company intends to pay salaries within 12 months after of the approval of this Offering. The highest paid officers of the company will be paid as follow:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Position** | **Annual Compensation** | **Annual Compensation** |
| Eric Collins | Director, Chairman | $| N/A |
| Ricardo Haynes | President/CEO | $| N/A |
| Lance Lehr | VP Operations | $| N/A |
| Tori White | Development Consultant | $| N/A |

---

All compensation will be on behalf of the company by Thunder Energies, Inc. and allocated to the subsidiaries.

In the future, the company will have to pay its officers, directors and other employees, which will impact the company's financial condition and results of operations, as discussed in "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#a_009)." The company may choose to establish an equity compensation plan for its management and other employees in the future. Further, as the company grows, the company intends to add additional executives, including but not limited to, a General Manager, a Food and Beverage Manager and Resort Managers.

**SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS**

**GENERALLY**

THUNDER ENERGIES, INC. is authorized to issue 900,000,000 shares of common stock, $0.001 par value per share, in the Company and 750,000,000 shares of preferred stock. As of September 30, 2022, 72,140,735 shares of common stock, 50,000,000 shares of Series A Preferred Stock have been authorized, issued and outstanding,10,000,000 shares of Series B Preferred Stock have been authorized and 10,000,000 shares issued and outstanding, and 10,000,000 shares of Series C Preferred Stock have been authorized and 10,000 shares issued and outstanding. No additional stock issuances have been made since September 30, 2022. See "Description of Capital" and "Principal Shareholders."

We have reserved 15,000,000 shares of common stock for this issuance under the THUNDER ENERGIES, INC.'s private placement. The Company has not issued any options.

**COMMON STOCK**

Holders of outstanding shares of common stock are entitled to one vote per share on all matters submitted to a vote of the shareholders. Except as may be required by applicable law, holders of outstanding shares of common stock vote together as a single class. Holders of a majority of the outstanding shares of common stock constitute a quorum at any meeting of shareholders.

**PREFERRED STOCK**

Holders of the outstanding shares of Series A Preferred Stock, in accordance with the Certificate of Designation, have conversion rights of 10:1 and voting rights of 15:1.

Holders of the outstanding shares of Series B Preferred Stock, in accordance with the Certificate of Designation, have conversion rights of 1,000:1 and voting rights of 1,000:1.

Holders of the outstanding shares of Series C Preferred Stock, in accordance with the Certificate of Designation, have no conversion rights and voting rights of 1,000:1.

**Principal Shareholders**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and Address of beneficial owner (1)** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership**<br> **acquirable (2)**  | **Percent of**<br> **class (3)** |
| Series A Preferred | Ricardo Haynes; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 7500000 | Restricted | 15% |
| Series A Preferred | Eric Collins; 233 Hendrix Ave, SW Atlanta, GA 30315 | 12500000 | Restricted | 25% |
| Series A Preferred | Lance Lehr; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 2500000 | Restricted | 5% |
| Series A Preferred | Tori White; 3335 Prairie Dr., Snellville, GA 30044 | 24000000 | Restricted | 48% |
| Series A Preferred | Donald Keer; 3663 Greenwood Circle, Chalfont, PA 18914 | 3500000 | Restricted | 7% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and Address of beneficial owner (1)** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership**<br> **acquirable (2)**  | **Percent of**<br> **class (3)** |
| Series B Preferred | Ricardo Haynes; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 750 | Restricted | 15% |
| Series B Preferred | Eric Collins; 233 Hendrix Ave, SW Atlanta, GA 30315 | 1250 | Restricted | 25% |
| Series B Preferred | Lance Lehr; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 250 | Restricted | 5% |
| Series B Preferred | Tori White; 3335 Prairie Dr., Snellville, GA 30044 | 2400 | Restricted | 48% |
| Series B Preferred | Donald Keer; 3663 Greenwood Circle, Chalfont, PA 18914 | 350 | Restricted | 7% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Title of Class** | **Name and Address of beneficial owner (1)** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership** | **Amount and**<br> **Nature of**<br> **beneficial**<br> **ownership**<br> **acquirable (2)**  | **Percent of**<br> **class (3)** |
| Series C Preferred | Ricardo Haynes; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 1500 | Restricted | 15% |
| Series C Preferred | Eric Collins; 233 Hendrix Ave, SW Atlanta, GA 30315 | 2500 | Restricted | 25% |
| Series C Preferred | Lance Lehr; 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039 | 500 | Restricted | 5% |
| Series C Preferred | Tori White; 3335 Prairie Dr., Snellville, GA 30044 | 4800 | Restricted | 48% |
| Series C Preferred | Donald Keer; 3663 Greenwood Circle, Chalfont, PA 18914 | 700 | Restricted | 7% |

---

The following table sets out, as of September 30, 2022, Thunder Energies voting securities that are owned by our executive officers, directors and other persons holding more than 10% of the company's voting securities.

---

| | |
|:---|:---|
| **Name** | **Common Shares** |
| Ricardo Haynes (1) | 25000000 |
| Top Flight Development, LLC (2) | 15000000 |
| Matthew White (2) | 10000000 |
| Eric McClendon (2) | 2000000 |

---

(1) Shares issued for Employment Agreement

(2) Shares issued for Consulting Agreement

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

*Management Services Agreement and Employment Agreements*

 

No Management Services Agreement is in place with any of the management team.

**SECURITIES BEING OFFERED** 

Thunder Energies, Inc. is offering Common Stock in this Offering. The company is qualifying up to 15,000,000 shares of Common Stock under this Offering Statement, of which this Offering Circular is part. Thunder Energies authorized capital stock consists of 900,000,000 shares of Common Stock (the "Common Stock"), at $0.001 par value, of which 72,140,735 shares are Common Stock are issued.

The following is a summary of the rights of Thunder Energies' capital common stock as provided in its Amended and Restated Certificate of Incorporation, and Bylaws, which have been filed as exhibits to the Offering Statement of which this Offering Circular is a part.

**Common Stock**

Shares of our common stock have the following rights, preferences and privileges:

*Voting*

Each holder of common stock is entitled to one vote for each share of common stock held on all matters submitted to a vote of stockholders. Any action at a meeting at which a quorum is present will be decided by a majority of the voting power present in person or represented by proxy, except in the case of any election of directors, which will be decided by a plurality of votes cast. There is no cumulative voting.

*Dividends*

Holders of our common stock are entitled to receive dividends when, as and if declared by our board of directors out of funds legally available for payment, subject to the rights of holders, if any, of any class of stock having preference over the common stock. Any decision to pay dividends on our common stock will be at the discretion of our board of directors. Our board of directors may or may not determine to declare dividends in the future. See "Dividend Policy." The board's determination to issue dividends will depend upon our profitability and financial condition any contractual restrictions, restrictions imposed by applicable law and the SEC, and other factors that our board of directors deems relevant.

*Liquidation Rights*

In the event of a voluntary or involuntary liquidation, dissolution or winding up of the company, the holders of our common stock will be entitled to share ratably on the basis of the number of shares held in any of the assets available for distribution after we have paid in full, or provided for payment of, all of our debts and after the holders of all outstanding series of any class of stock have preference over the common stock, if any, have received their liquidation preferences in full.

*Other*

Our issued and outstanding shares of common stock are fully paid and nonassessable. Holders of shares of our common stock are not entitled to preemptive rights. Shares of our common stock are not convertible into shares of any other class of capital stock, nor are they subject to any redemption or sinking fund provisions.

**For a complete description of Thunder Energies's capital stock, you should refer to its Amended and Restated Certificate of Incorporation and Bylaws, and applicable provisions of the Florida General Corporation Law.**

**THUNDER ENERGIES, INC.**

**Index to Financial Statements**

---

| | |
|:---|:---|
| [Balance Sheet as of September 30, 2022 (Unaudited)](#q303) | F-2 |
| [Statement of Operations for the three months ended September 30, 2021 and 2022 (Unaudited)](#q304) | F-3 |
| [Statement of Shareholders' Equity for the three months ended September 30, 2021 and 2022 (Unaudited)](#q305) | F-4 |
| [Statement of Cash Flows for the three months ended September 30, 2021 and 2022 (Unaudited)](#q306) | F-5 |
| [Notes to Financial Statements as of September 30, 2022 (Unaudited)](#q307) | F-6 |

---

---

| | |
|:---|:---|
| [Report of Independent Registered Public Accounting Firm (PCAOB ID 6651)](#a_028) | F-29 |
| [Consolidated Balance Sheets at December 31, 2021 and 2020](#a_029) | F-31 |
| [Consolidated Statements of Operations for the years ended December 31, 2021 and 2020](#a_030) | F-32 |
| [Consolidated Statement of Changes in Shareholders' Deficit for the years ended December 31, 2021 and 2020](#a_031) | F-33 |
| [Consolidated Statements of Cash Flows for the years ended December 31, 2021 and 2020](#a_032) | F-34 |
| [Notes to Consolidated Financial Statements](#a_033) | F-35 |

---

**THUNDER ENERGIES CORPORATION**

**Unaudited Condensed Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $29949 | $– |
| &nbsp;&nbsp;&nbsp;Notes receivable - related party | 26200 |  |
| &nbsp;&nbsp;&nbsp;Deferred offering costs | 9000 |  |
| &nbsp;&nbsp;&nbsp;Prepaid expenses | 30000 | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 95149 |  |
| **Total assets** | $**95149** | $**–** |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $80619 | $70971 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 87482 | 83404 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable, net of discount of $8,985 and $241,876, respectively | 1173281 | 508890 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 3233848 | 1019156 |
| &nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | – | 901000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4575230 | 2583421 |
| **Total liabilities** | **4575230** | **2583421** |
| **Commitments and contingencies (Note 14)** |  |  |
| **Stockholders' deficit** |  |  |
| Preferred stock - Series A: $0.001 par value, 50,000,000 authorized; 50,000,000 and 50,000,000 shares issued and outstanding, respectively | 50000 | 50000 |
| Preferred stock - Series B: $0.001 par value, 10,000,000 authorized; 5,000 and 5,000 shares issued and outstanding, respectively | 5 | 5 |
| Preferred stock - Series C: $0.001 par value, 10,000,000 authorized; 10,000 and 10,000 shares issued and outstanding, respectively | 10 | 10 |
| Common stock: $0.001 par value 900,000,000 authorized; 72,140,735 and 80,140,735 shares issued and outstanding, respectively | 72140 | 80140 |
| Additional paid-in-capital | 724888 | (693112) |
| Accumulated deficit | (5327124) | (2020464) |
| Total stockholders' deficit | (4480081) | (2583421) |
| **Total liabilities and stockholders' deficit** | $**95149** | $**–** |

---

***See notes to unaudited condensed financial statements***

 ****

**THUNDER ENERGIES CORPORATION**

**Unaudited Condensed Consolidated Statements of Operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Net revenues** | $– | $– | $– | $– |
| **Cost of sales** | – | – | – | – |
| Gross Profit |  |  |  |  |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and marketing expenses | 4743 |  | 4743 |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 1410000 |  |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 341258 | 89675 | 188483 | 22620 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 1756001 | 89675 | 193226 | 22620 |
| Loss from operations | (1756001) | (89675) | (193226) | (22620) |
| Other (income) expense: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in derivative liability | 4078 | (41923) | (5455) | (38673) |
| &nbsp;&nbsp;&nbsp;Accretion of debt discount | 232891 | 331388 | 76685 | 103342 |
| &nbsp;&nbsp;&nbsp;Impairment of assets |  | 510182 |  | 510182 |
| &nbsp;&nbsp;&nbsp;Interest expense | 2214690 | 808284 | 1049317 | 374570 |
| &nbsp;&nbsp;&nbsp;Gain on disposal of discontinued operations | (901000) | – | – | – |
| Total other expense | 1550659 | 1607931 | 1120547 | 949421 |
| Loss before income taxes | (3306660) | (1697606) | (1313773) | (972041) |
| &nbsp;&nbsp;&nbsp;Income taxes | – | – | – | – |
| Loss from continuing operations | (3306660) | (1697606) | (1313773) | (972041) |
| &nbsp;&nbsp;&nbsp;Discontinued operations | – | 50973 | – | (350983) |
| **Net loss** | $(3306660) | $(1646633) | $(1313773) | $(1323024) |
| Net loss per share from continuing operations, basic and diluted | $(0.05) | $(0.03) | $(0.02) | $(0.02) |
| Net loss per share from discontinued operations, basic and diluted | $– | $(0.00) | $– | $(0.00) |
| Net loss per share, basic and diluted | $(0.05) | $(0.03) | $(0.02) | $(0.02) |
| Weighted average number of shares outstanding |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 70796413 | 76340735 | 72140735 | 76340735 |

---

***See notes to unaudited condensed financial statements***

 ****

**THUNDER ENERGIES CORPORATION**

**Unaudited Condensed Consolidated Statements of Changes in Stockholders' Deficit**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Preferred Stock A** | **Preferred Stock A** | **Preferred Stock B** | **Preferred Stock B** | **Preferred Stock C** | **Preferred Stock C** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid**<br>**in Capital** | **Accumulated**<br>**Deficit** | **Total Stockholders'**<br>**Deficit** |
| **Balance, December 31, 2020** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 76340735 | $76340 | $(879312) | $(647914) | $(1400871) |
| Net loss | – | – | – | – | – | – | – | – | – | (214531) | (214531) |
| **Balance, March 31, 2021** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 76340735 | $76340 | $(879312) | $(862445) | $(1615402) |
| Net loss | – | – | – | – | – | – | – | – | – | (109078) | (109078) |
| **Balance, June 30, 2021** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 76340735 | $76340 | $(879312) | $(971523) | $(1724480) |
| Net loss | – | – | – | – | – | – | – | – | – | (1323024) | (1323024) |
| **Balance, September 30, 2021** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 76340735 | $76340 | $(879312) | $(2294547) | $(3047504) |
| **Balance, December 31, 2021** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 80140735 | $80140 | $(693112) | $(2020464) | $(2583421) |
| Common shares returned to treasury for cancellation |  |  |  |  |  |  | (55000000) | (55000) | 55000 |  |  |
| Issuance of fully vested common shares issued against employment services |  |  |  |  |  |  | 25000000 | 25000 | 725000 |  | 750000 |
| Net loss | – | – | – | – | – | – | – | – | – | (447774) | (447774) |
| **Balance, March 31, 2022** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 50140735 | $50140 | $86888 | $(2468238) | $(2281195) |
| Issuance of fully vested common shares issued for consulting services |  |  |  |  |  |  | 22000000 | 22000 | 638000 |  | 660000 |
| Net loss | – | – | – | – | – | – | – | – | – | (1545113) | (1545113) |
| **Balance, June 30, 2022** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 72140735 | $72140 | $724888 | $(4013351) | $(3166308) |
| Net loss | – | – | – | – | – | – | – | – | – | (1313773) | (1313773) |
| **Balance, September 30, 2022** | 50000000 | 50000 | 5000 | 5 | 10000 | 10 | 72140735 | $72140 | $724888 | $(5327124) | $(4480081) |

---

***See notes to unaudited condensed financial statements***

 ****

**THUNDER ENERGIES CORPORATION**

**Unaudited Condensed Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the Nine Months Ended September 30,** | **For the Nine Months Ended September 30,** |
|  | **2022** | **2021** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(3306660) | $(1646633) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of debt discount | 232891 | 331388 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 4078 | (41923) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of discontinued operations | (901000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock based compensation | 1410000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Convertible notes payable issued for services | 1500 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | 510182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable - related party | (26200) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering costs | (9000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | (30000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 9648 | 35095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 2214692 | 807332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in continuing operating activities | (400051) | (4559) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities - discontinued activities | – | 87203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by operating activities | **(400051)** | **82644** |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in continuing investing activities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities - discontinued activities | – | (15337) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | **–** | **(15337)** |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short term convertible notes payable | 430000 | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in continuing financing activities | 430000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities - discontinued activities | – | (161145) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities | **430000** | **(161145)** |
| Net (decrease) increase in cash | **29949** | **(93838)** |
| Cash at beginning of period | **–** | **97503** |
| Cash at end of period | $**29949** | $**3665** |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;Common shares returned to treasury for cancellation | $55000 | $– |

---

***See notes to unaudited condensed financial statements***

 ****

**THUNDER ENERGIES CORPORATION**

**Notes to Condensed Financial Statements**

**For the Three and Nine Months Ended September 30, 2022 and 2021**

**(Unaudited)**

**NOTE 1 – NATURE OF BUSINESS**

***Corporate History and Background***

Thunder Energies Corporation ("we", "us", "our", "TEC" or the "Company") was incorporated in the State of Florida on April 21, 2011.

On July 29, 2013, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the "Amendment") which changed the name of the Company from CCJ Acquisition Corp. to Thunder Fusion Corporation. The Amendment also changed the principal office address of the Company to 150 Rainville Road, Tarpon Springs, Florida 34689. On May 1, 2014, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the "Amendment") which changed the name of the Company from Thunder Fusion Corporation to Thunder Energies Corporation. The Company's principal office address is PMB 388, 8570 Stirling Rd., Suite 102, Hollywood, FL, 33024.

**Acquisition of TNRG Preferred Stock**

***Fiscal Year 2022***

On February 28, 2022, Mr. Ricardo Haynes, Mr. Eric Collins, Mr. Lance Lehr, Ms. Tori White and Mr. Donald Keer, each as an individual and principal shareholder ("Shareholders") of Bear Village, Inc., a Wyoming corporation, (the "Purchaser") collectively acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of Thunder Energies Corporation, a Florida corporation, (the "Company" or the "Registrant") from Mr. Yogev Shvo, an individual domiciled in Florida (the "Seller") (the "Purchase"). The consideration for the Purchase was provided to the Seller by the Purchaser on behalf of the Shareholders and was recorded as compensation expense.

The Preferred Stock acquired by the Purchaser consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 50,000,000 shares of Series A Convertible Preferred Stock wherein each share is entitled to fifteen (15) votes and converts into ten (10) shares of the Company's common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. 5,000 shares of Series B Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and converts into one thousand (1,000) shares of the Company's common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. 10,000 shares of Series C Non-Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and is non-convertible into shares of the Company's common stock.

As part of the Purchase, Mr. Shvo submitted 55,000,000 shares of restricted common stock to the Company's treasury for cancellation, in consideration for the transfer to him by TNRG of all of the issued and outstanding membership interests, assets and liabilities of Nature and THEHEMPLUG, LLC a Florida limited liability company ("HP"), both of which are wholly-owned subsidiaries of TNRG.

The purchase price of $50,000 for the Preferred Stock was paid in cash as of September 30, 2022. The consideration for the purchase was provided to the Seller by the Purchaser on behalf of the Shareholders. The Company had been in discussions with the Shareholders for repayment and finalized the Employment Agreements ("Employment Agreements") on October 1, 2022 for positions in the Company. As a result, the Company recorded the purchase price as compensation on March 1, 2022. The Purchase of the Preferred Stock was the result of a privately negotiated transaction which consummation resulted in a change of control of the Registrant.

1) Purchaser accepts TNRG subject to the following existing debt and obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $35,000 Convertible Note held by ELSR plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. $85,766 Convertible Note held by ELSR plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. $220,000 Convertible Note held by 109 Canon plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. $410,000 Convertible Note held by Moshe Zucker plus accrued interest of which $190,000 has recently been converted into 3,800,000 shares of restricted common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Auditor Invoice estimated at $30,000 past due and $37,000 for completion of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Accountant Invoice estimated at $42,500 and approximately $4,500 for completion of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. No other debt or liability is being assumed by Purchaser

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Purchaser specifically assumes no liability regarding any dispute between Orel Ben Simon and the Seller. Seller shall indemnify Company as required in the body of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Company may be subject to potential liability and legal fees and associated costs regarding the FCV Matter if in excess of the Seller indemnification provisions set forth in Section 11 of the Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Purchaser on behalf of the Company is responsible for assuring the Company's timely payment of all Company federal and state and any related tax obligations for fiscal year 2021 with the exception of taxes due relating to income, sales, license, business or any other taxes associated with Nature and HP

2) The transfer to Seller of all of TNRG's security ownership interest in each of Nature and HP shall include the following existing Nature debt and related matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. EIDL Loan ($149,490 plus $9,290 accrued interest)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. $72,743 note due to Orel Ben Simon plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All cases in action and potential legal liabilities concerning current disputes with Nature, HP, Ben Simon, Seller and any other parties.

As a result of the Purchase and change of control of the Registrant, the existing officers and directors of the Company, Mr. Adam Levy, Mr. Bruce W.D. Barren, Ms. Solange Bar and Mr. Yogev Shvo (Chairman) have either resigned or been voted out of their positions.

Under the terms of the stock purchase agreement the new controlling shareholder was permitted to elect representatives to serve on the Board of Directors to fill the seat(s) vacated by prior directors. Mr. Ricardo Haynes became the sole Director, CEO and Chairman of the Board of the Registrant, and the acting sole officer of the Company.

***Fiscal Year 2020***

On July 1, 2020, Yogev Shvo, a third party individual and principal shareholder of Nature Consulting LLC ("Nature" or "Purchaser") personally acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of TNRG from Saveene Corporation, a Florida corporation (the "Seller") (The "Purchase"). The purchase price of $250,000 for the Preferred Stock was paid in cash and was provided from the individual private funds of Purchaser.

The Preferred Stock acquired by the Purchaser consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 50,000,000 shares of Series A Convertible Preferred Stock wherein each share is entitled to fifteen (15) votes and converts into ten (10) shares of the Company's common stock.

2. 5,000 shares of Series B Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and converts into one thousand (1,000) shares of the Company's common stock.

3. 10,000 shares of Series C Non-Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and is non-convertible into shares of the Company's common stock.

**NOTE 2 – Basis of Presentation**

The accompanying interim unaudited condensed financial statements ("Interim Financial Statements") of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and are presented in accordance with the requirements of Rule 10-01 of Regulation S-X. Accordingly, these Interim Financial Statements do not include all of the information and notes required by GAAP for complete financial statements. These Interim Financial Statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2021 included in the Form 10-K filed with the SEC on October 18, 2022. In the opinion of management, the Interim Financial Statements included herein contain all adjustments, including normal recurring adjustments, considered necessary to present fairly the Company's financial position, the results of operations and cash flows for the periods presented. The operating results and cash flows of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include all adjustments necessary for the fair presentation of the Company's financial position for the periods presented.

The Company currently operates in one business segment. The Company is not organized by market and is managed and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who comprehensively manages the entire business. The Company does not currently operate any separate lines of businesses or separate business entities.

 ****

***Going Concern***

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $5,327,124 and $2,020,464 at September 30, 2022 and December 31, 2021, respectively, had a working capital deficit of $4,480,081 and $2,583,421 at September 30, 2022 and December 31, 2021, respectively, had net losses of $1,313,773 and $3,306,660, and $1,323,024 and $1,646,633 for the three and nine months ended September 30, 2022 and 2021, respectively, and net cash used in operating activities of $400,051 and net cash provided by operating activities of $82,644 for the nine months ended September 30, 2022 and 2021, respectively, with limited revenue earned since inception, and a lack of operational history. These matters raise substantial doubt about the Company's ability to continue as a going concern.

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating cost and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan to obtain such resources for the Company include, obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability.

The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

This summary of significant accounting policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the consolidated financial statements.

**Use of Estimates**

The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the reported periods. Actual results may differ from those estimates and such differences may be material to the financial statements. The more significant estimates and assumptions by management include among others: inventory valuation, common stock valuation, the recoverability of intangibles, derivative valuation, and lease asset amortization. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

**Cash** 

The Company's cash is held in bank accounts in the United States and is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company has not experienced any cash losses.

**Accounts Receivable**

Accounts receivable are non-interest-bearing obligations due under normal course of business. Management reviews accounts receivable on a monthly basis to determine if any receivables will be potentially uncollectible. Historical bad debts and current economic trends are used in evaluating the allowance for doubtful accounts. The Company includes any accounts receivable balances that are determined to be uncollectible in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company has an allowance for doubtful accounts of $0 and $147,357 (from discontinued operations) as of September 30, 2022 and December 31, 2021, respectively.

**Cash Flows Reporting**

The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category. The Company uses the indirect or reconciliation method ("Indirect method") as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.

**Related Parties**

The Company follows ASC 850, "Related Party Disclosures," for the identification of related parties and disclosure of related party transactions. Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company.

**Income Taxes**

Income taxes are accounted for under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Consolidated Balance Sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The likelihood that its deferred tax assets will be recovered from future taxable income must be assessed and, to the extent that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance in a period are recorded through the income tax provision in the Condensed Consolidated Statements of Operations.

ASC 740-10-30 was adopted from the date of its inception. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity's consolidated financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, and currently, the Company does not have a liability for unrecognized income tax benefits.

**Advertising and Marketing Costs**

Advertising and marketing expenses are recorded as marketing expenses when they are incurred. The Company had advertising and marketing expense of $4,743 and $4,743, and $39,883 and $391,850 for the three and nine months ended September 30, 2022 and 2021, respectively, as part of discontinued operations.

**Revenue Recognition** 

On January 19, 2019 (date of formation), the Company adopted Accounting Standards Codification ASC 606 ("ASC 606"), *Revenue from Contracts with Customers*. Results for the reporting periods beginning on January 19, 2019 (date of formation) are presented under ASC 606.

The Company generates all of its revenue from contracts with customers. The Company recognizes revenue when we satisfy a performance obligation by transferring control of the promised services to a customer in an amount that reflects the consideration that we expect to receive in exchange for those services. The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identification of the contract, or contracts, with a customer.

2. Identification of the performance obligations in the contract.

3. Determination of the transaction price.

4. Allocation of the transaction price to the performance obligations in the contract

5. Recognition of revenue when, or as, we satisfy a performance obligation.

At contract inception, the Company assesses the services promised in our contracts with customers and identifies a performance obligation for each promise to transfer to the customer a service (or bundle of services) that is distinct. To identify the performance obligations, the Company considers all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company allocates the entire transaction price to a single performance obligation.

**Customer Advanced Payments – Discontinued Operations**

Customer advanced payments consisted of customer orders paid in advance of the delivery of the order. Customer advanced payments are classified as short-term as the typical order ships within approximately three weeks of placing the order. Customer advanced payments are recognized as revenue when the product is shipped to the customer and all other revenue recognition criteria have been met. Customer advanced payments as of September 30, 2022 and December 31, 2021 were $0 and $203,518 (from discontinued operations), respectively. Customer advanced payments are included in current liabilities in the accompanying Consolidated Balance Sheets. The Company's ability to fulfill these orders have been impaired (see Explanatory Note).

**Inventories – Discontinued Operations**

The Company manufactures its own products, made to order, and when completed are shipped to the customer. The Company's inventories are valued by the first-in, first-out ("FIFO") cost method and are stated at the lower of cost or net realizable value. The Company had inventories of $0 and $0 (from discontinued operations) as of September 30, 2022 and December 31, 2021, respectively. See Explanatory Note for impairment discussion as of December 31, 2021.

**Property and Equipment**

Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets, generally five years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Fixed assets are examined for the possibility of decreases in value when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

**Intangible Assets** 

Intangible assets consisted primarily of developed technology – website. Our intangible assets are being amortized on a straight-line basis over a period of five years.

**Impairment of Long-lived Assets** 

We periodically evaluate whether the carrying value of property, equipment and intangible assets has been impaired when circumstances indicate the carrying value of those assets may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is not recoverable, the impairment loss is measured as the excess of the asset's carrying value over its fair value. All long-lived assets are impaired as of September 30, 2022 and December 31, 2021. See Explanatory Note for impairment discussion as of December 31, 2021.

Our impairment analyses require management to apply judgment in estimating future cash flows as well as asset fair values, including forecasting useful lives of the assets, assessing the probability of different outcomes, and selecting the discount rate that reflects the risk inherent in future cash flows. If the carrying value is not recoverable, we assess the fair value of long-lived assets using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third party comparable sales and discounted cash flow models. If actual results are not consistent with our assumptions and estimates, or our assumptions and estimates change due to new information, we may be exposed to an impairment charge in the future.

**Leases**

The Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as: right-of-use asset ("ROU asset") and operating lease obligation. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The ROU asset also includes deferred rent liabilities. The Company's lease arrangements generally do not provide an implicit interest rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has some lease agreements with lease and non-lease components, which are accounted for as a single lease component. See Explanatory Note for impairment discussion as of December 31, 2021.

 

 

 

 

**Fair Value of Financial Instruments** 

The provisions of accounting guidance, FASB Topic ASC 825 requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of September 30, 2022 and December 31, 2021, the fair value of cash, accounts receivable, accounts payable, accrued expenses, and notes payable approximated carrying value due to the short maturity of the instruments, quoted market prices or interest rates which fluctuate with market rates.

**Fair Value Measurements** 

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. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices in active markets for identical assets or liabilities.

· Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. There were no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. There have been no transfers between levels.

The derivatives are evaluated under the hierarchy of ASC 480-10, ASC Paragraph 815-25-1 and ASC Subparagraph 815-10-15-74 addressing embedded derivatives. The fair value of the Level 3 financial instruments was performed internally by the Company using the Black Scholes valuation method.

The following table summarize the Company's fair value measurements by level at September 30, 2022 for the assets measured at fair value on a recurring basis: ****

 ****

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Derivative liability | $– | $– | $87482 |

---

 ****

The following table summarize the Company's fair value measurements by level at December 31, 2021 for the assets measured at fair value on a recurring basis:

 ****

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Derivative liability | $– | $– | $83404 |

---

 **

 ****

 **

 ****

**Debt**

The Company issues debt that may have separate warrants, conversion features, or no equity-linked attributes.

<u>Debt with warrants</u> – When the Company issues debt with warrants, the Company treats the warrants as a debt discount, records them as a contra-liability against the debt, and amortizes the discount over the life of the underlying debt as amortization of debt discount expense in the Condensed Consolidated Statements of Operations. When the warrants require equity treatment under ASC 815, the offset to the contra-liability is recorded as additional paid in capital in our balance sheet. When the Company issues debt with warrants that require liability treatment under ASC 815, such as a clause requiring repricing, the warrants are considered to be a derivative that is recorded as a liability at fair value. If the initial value of the warrant derivative liability is higher than the fair value of the associated debt, the excess is recognized immediately as interest expense. The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as expense or gain to Other (income) expense in the Condensed Consolidated Statements of Operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense. The debt is treated as conventional debt.

<u>Convertible debt – derivative treatment</u> – When the Company issues debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows: a) one or more underlyings, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer's own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders' equity in its statement of financial position.

If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative using the Black Scholes method upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the Consolidated Statement of Operations. The debt discount is amortized through interest expense over the life of the debt.

**Loss per Share**

The computation of loss per share included in the Condensed Consolidated Statements of Operations, represents the net profit (loss) per share that is reported per ASC 260, "Earnings Per Share" for all periods presented.

Diluted earnings (loss) per share are computed on the basis of the weighted average number of common shares (including common stock subject to redemption) plus dilutive potential common shares outstanding for the reporting period. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2022** | **December 31, 2021** |
| Series A convertible preferred stock | 500000000 | 500000000 |
| Series B convertible preferred stock | 5000000 | 5000000 |
| Series C convertible preferred stock | 10000 | 10000 |
| Total potentially dilutive shares | 505010000 | 505010000 |

---

**Commitments and Contingencies**

The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of September 30, 2022 and December 31, 2021. See Explanatory Note for impairment discussion as of December 31, 2021.

**Discontinued Operations**

As a result of the October 14, 2021 Complaint filed against Defendants, the Company determined that Nature would be accounted as a discontinued operation pursuant to ASC 205-20 *Discontinued Operations*. In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyzed whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we considered whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our condensed consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our accompanying consolidated balance sheets.

**Concentrations, Risks, and Uncertainties** 

<u>Business Risk</u>

Substantial business risks and uncertainties are inherent to an entity, including the potential risk of business failure.

The Company is headquartered and operates in the United States. To date, the Company has generated limited revenues from operations. There can be no assurance that the Company will be able to successfully continue to produce its products and failure to do so would have a material adverse effect on the Company's financial position, results of operations and cash flows. Also, the success of the Company's operations is subject to numerous contingencies, some of which are beyond management's control. These contingencies include general economic conditions, price of raw material, competition, and governmental and political conditions.

<u>Interest rate risk</u>

Financial assets and liabilities do not have material interest rate risk.

<u>Credit risk</u>

The Company is exposed to credit risk from its cash in banks and accounts receivable. The credit risk on cash in banks is limited because the counterparties are recognized financial institutions.

<u>Seasonality</u>

The business is not subject to seasonal fluctuations. However, as a result of the COVID 19 pandemic, in 2020, the Company entered into the sale of KN95 masks but had to dispose of them at a loss.

**Recent Accounting Pronouncements**

In December 2019, the FASB issued ASU No. 2019-12, *Simplifying the Accounting for Income Taxes.* This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, *Income Taxes*, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2021, coinciding with the standard's effective date, and had an immaterial impact from this standard.

In August 2020, the FASB issued ASU No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. This ASU is effective for annual reporting periods beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU No. 2020-06 in the first quarter of fiscal 2021, coinciding with the standard's effective date, and had an immaterial impact from this standard.

Other recently issued accounting updates are not expected to have a material impact on the Company's consolidated financial statements.

**NOTE 4 – PROPERTY AND EQUIPMENT – DISCONTINUED OPERATIONS**

The Company had no property and equipment as of September 30, 2022 and December 31, 2021:

Depreciation expense was $0 and $0, and $0 and $44,959 (from discontinued operations) for the three and nine months ended September 30, 2022 and 2021, respectively, and is classified in general and administrative expenses in the Condensed Consolidated Statements of Operations. See Explanatory Note for impairment discussion as of December 31, 2021.

**NOTE 5 – INTANGIBLE ASSETS – discontinued operations**

The Company had no intangible assets as of September 30, 2022 and December 31, 2021:

Amortization expense was $0 and $0, and $0 and $7,755 (from discontinued operations) for the three and nine months ended September 30, 2022 and 2021, respectively, and is classified in general and administrative expenses in the Condensed Consolidated Statements of Operations. See Explanatory Note for impairment discussion as of December 31, 2021.

**NOTE 6 – DEBT TO FORMER SHAREHOLDER – discontinued operations**

On March 1, 2020, the members of Nature entered into the Ownership Interest Purchase Agreement ("Ownership Agreement") whereby Yogev Shvo, a member of the Company, acquired the remaining 50% member ownership ("Seller") giving Mr. Shvo 100% member ownership of the Company. As consideration for the Ownership Agreement, the Seller received a Promissory Note of $750,000. The Promissory Note bears interest at 15% per annum and matures March 1, 2022, as amended on June 30, 2021. The Company included $72,743 in due to related party in discontinued operations as of December 31, 2021. This contingency will remain with Nature and not be a contingency for the Company per the Bear Village acquisition (see Note 1).

The Company borrows funds from related parties for working capital purposes from time to time. The Company has recorded the principal balance due of $0 under Due to Related Parties in the accompanying Consolidated Balance Sheet at December 31, 2021. The Company received no advances and made no repayments during the three and nine months ended September 30, 2022. The Company received no advances and made repayments of $50,000 and $50,000 during the three and nine months ended September 30, 2021 and has a balance of $169,744 under Due to Related Parties in the Balance Sheet at September 30, 2021. Advances are non-interest bearing and due on demand.

**NOTE 7 – LOANS PAYABLE**

**Economic Injury Disaster Loan – Discontinued operations**

On May 14, 2020, the Company executed the standard loan documents required for securing a loan (the "EIDL Loan") from the SBA under its Economic Injury Disaster Loan ("EIDL") assistance program in light of the impact of the COVID-19 pandemic on the Company's business.

Pursuant to that certain Loan Authorization and Agreement (the "SBA Loan Agreement"), the Company borrowed an aggregate principal amount of the EIDL Loan of $150,000, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum and will accrue only on funds actually advanced from the date of each advance. Installment payments, including principal and interest, are due monthly beginning May 14, 2021 (twelve months from the date of the SBA Note) in the amount of $731. The balance of principal and interest is payable thirty years from the date of the SBA Note. In connection therewith, the Company also received a $7,000 grant, which does not have to be repaid.

In connection therewith, the Company executed (i) a note for the benefit of the SBA (the "SBA Note"), which contains customary events of default and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of the Company, which also contains customary events of default (the "SBA Security Agreement"). As a result of the failure to repay amounts based on the repayment schedule, on December 21, 2021, the Company was notified that it was in default of the EIDL Loan and that the entire balance of principal and unpaid interest of $155,598 is due. This contingency will remain with Nature and not be a contingency for the Company per the Bear Village acquisition (see Note 1).

**Paycheck Protection Program Loan – Discontinued operations**

On May 6, 2020, the Company executed a note (the "PPP Note") for the benefit of TD Bank, N.A. (the "Lender") in the aggregate amount of $51,065 under the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The PPP is administered by the U.S. Small Business Administration (the "SBA"). The interest rate of the loan is 1.00% per annum and accrues on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days. Commencing seven months after the effective date of the PPP Note, the Company is required to pay the Lender equal monthly payments of principal and interest as required to fully amortize any unforgiven principal balance of the loan by the two-year anniversary of the effective date of the PPP Note. The PPP Note of $51,035 was repaid in February 2021.

**Paycheck Protection Program Loan Round 2 – Discontinued operations**

On April 2, 2021, the Company executed a note (the "PPP Note") for the benefit of First Federal Bank (the "Lender") in the aggregate amount of $200,000 under the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") through a second draw. The PPP is administered by the U.S. Small Business Administration (the "SBA"). The terms of the second draw have the same general loan terms as the first draw PPP loan. On December 31, 2021, the PPP Round 2 loan was forgiven and $200,000 was recorded as Other Income in the Condensed Consolidated Statements of Operations for the year ended December 31, 2021.

**NOTE 8 – LOAN PAYABLE TO SHAREHOLDER – discontinued operations**

The Company borrows funds from its shareholders from time to time for working capital purposes. During the three and nine months ended September 30, 2022 and 2021, the Company had no additional borrowings and made no repayments. Advances are non-interest bearing and due on demand.

**NOTE 9 – CONVERTIBLE NOTES PAYABLE**

**Convertible Note Payable**

*Short Term*

***<u>$85,766 Note</u>***

On April 22, 2019; The Company executed a convertible promissory note with GHS Investments, LLC ("GHS Note"). The GHS Note carries a principal balance of $57,000 together with an interest rate of eight (8%) per annum and a maturity date of February 21, 2020. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share) in accordance with the terms of the note agreement shall be made in lawful money of the United States of America. Any amount of principal or interest on this GHS Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid. As of December 31, 2019, the principal balance outstanding was $57,000.

The holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this note, to convert all or any part of the outstanding and unpaid principal amount into Common Stock. The conversion shall equal sixty-five percent (65%) of the lowest trading prices for the Common Stock during the twenty (20) day trading period ending on the latest complete trading day prior to the conversion date, representing a discount rate of thirty-five percent (35%).

On March 24, 2020, the note obligation of $120,766 held by Emry was partially sold $35,000 of the face amount to the preferred shareholder Saveene. On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares into series B and 10,000 shares of series C shares. The face amount of the Company note obligation post the aforementioned conversions and purchases is $85,766 as of December 31, 2021.

The Company accounts for an embedded conversion feature as a derivative under ASC 815-10-15-83 and valued separately from the note at fair value. The embedded conversion feature of the note is revalued at each subsequent reporting date at fair value and any changes in fair value will result in a gain or loss in those periods. The Company recorded a derivative liability of $87,482 as of September 30, 2022, and recorded a change in derivative liability of $5,455 and $4,078, and $38,673 and $41,923 during the three and nine months ended September 30, 2022 and 2021, respectively.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the years ended December 31, 2021 and 2020, and the three-month periods ended March 31, 2022 and 2021, the Convertible Notes Payable were in default. The Company is currently in discussions to restructure the terms of the note and recorded default interest of $7,602 and $22,486, and $7,568 and $22,450 during the three and nine months ended September 30, 2022 and 2021, respectively.

***<u>$220,000 Note</u>***

On September 21, 2020, the Company issued a convertible promissory note in the principal amount of $220,000. The convertible promissory note bears interest at 8% per annum and is due and payable in twenty-four (24) months. The holder of this note has the right, at the holder's option, upon the consummation of a sale of all or substantially all of the equity interest in the Company or private placement transaction of the Company's equity securities or securities convertible into equity securities, exclusive of the conversion of this note or any similar notes, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.05 per share. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does have a BCF. A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the Balance Sheet. As such, the proceeds of the notes were allocated, based on fair values, as $220,000 to the debt discount. The debt discount is accreted over the term of the convertible notes to interest expense in the accompanying condensed consolidated Statements of Operations.

The principal balance due at September 30, 2022 is $220,000 and is presented as a short-term liability in the balance sheet. The Company has not repaid this convertible note and the convertible note is now in default. The Company is currently in discussions to restructure the terms of the note.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the years ended December 31, 2021 and 2020, and the three-month periods ended March 31, 2022 and 2021, the Convertible Notes Payable were in default. On July 19, 2021, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the Notes related to the Company's failure to timely file its Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021. In exchange for the Agreement, the Company agreed to pay a one-time interest charge of $11,680 in the year ended December 31, 2021. The Company is currently in discussions to restructure the terms of the note and recorded default interest of $15,402 and $43,419, and $0 and $0 during the three and nine months ended September 30, 2022 and 2021, respectively.

***<u>$410,000 Note (previously $600,000)</u>***

On October 9 and October 16, 2020, the Company issued a convertible promissory note in the principal amount totaling $600,000. The convertible promissory note bears interest at 8% per annum and is due and payable in twenty-four (24) months. The holder of this note has the right, at the holder's option, upon the consummation of a sale of all or substantially all of the equity interest in the Company or private placement transaction of the Company's equity securities or securities convertible into equity securities, exclusive of the conversion of this note or any similar notes, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.05 per share. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does have a BCF. A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the Balance Sheet. As such, the proceeds of the notes were allocated, based on fair values, as $600,000 to the debt discount. The debt discount is accreted over the term of the convertible notes to interest expense in the accompanying condensed consolidated Statements of Operations.

On December 6, 2021, the holder of the note converted $190,000 of the Note into 3,800,000 shares of the Company's common stock. The principal balance of $410,000 is due October 16, 2022 and is presented as a short term liability in the balance sheet. The Company has not repaid this convertible note and the convertible note is now in default. The Company is currently in discussions to restructure the terms of the note.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the years ended December 31, 2021 and 2020, and the three-month periods ended March 31, 2022 and 2021, the Convertible Notes Payable were in default. On July 15, 2021, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the Notes related to the Company's failure to timely file its Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021. The Company is currently in discussions to restructure the terms of the note and recorded default interest of $28,285 and $79,720, and $0 and $0 during the three and nine months ended September 30, 2022 and 2021, respectively.

***April 2022 Notes***

In April 2022, the Company authorized convertible promissory notes ("April 2022 Notes") that varies from 0% to 10% per annum and are due and payable on various dates from December 31, 2022 through March 31, 2023 for aggregate gross proceeds of $431,500 (including $1,500 against which services were received) during the three and nine months ended September 30, 2022. Subsequent to September 30, 2022, the Company offered and sold an additional $64,100 of the April 2022 Notes paying interest that varies from 0% to 8% per annum and are due and payable on various dates from December 31, 2022 through October 31, 2024. The holders of the April 2022 Notes have the right, at the holder's option, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.07 per share into the Company's common stock if before any public offering. The Note includes customary events of default, including, among other things, payment defaults and certain events of bankruptcy. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting.

**$40,000,000 Convertible Note**

On May 13, 2022, as amended, the Company issued a convertible promissory note to Turvata Holdings Limited in the principal amount totaling $40,000,000 in exchange for 50,000 RoRa Prime Coins ("Coins"), valued at $800 per Coin. The convertible promissory note bears no interest and is due and payable in twenty-four (24) months. The Holder of this Note has the right, at the holder's option, to convert the principal amount of this Note, in whole or in part, into fully paid and nonassessable shares at a conversion price of $2.00 per share. Conversion rights shall not vest until such time as the holder's consideration, Coins, are live on a U.S. Exchange and available through a mutually agreed upon cryptocurrency wallet. The Coins are expected to go live in 2023. The Note shall not be enforceable until such time as the Coin is "live" on a US exchange and available through a mutually agreed upon cryptocurrency wallet. The parties agree to establish a time is of the essence date of May 1, 2023 for Holder to meet the "live" requirement. Should Holder not meet the "live" requirement by May 1, 2023, then Borrower shall return all RoRa Prime Coins and Holder shall release all claims on any shares or Convertible Promissory Note. Subsequent to the Coins live date and before the holder coverts the Note, should the Company issue any dilutive security, the conversion price will be reduced to the price of the dilutive issuance. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note as described above.

As a result of the failure to timely file our Form 10-K for the year ended December 31, 2021, and the Form 10-Q for the three-month periods ended March 31, 2022, June 30, 2022, and September 30, 2022, the convertible promissory note was in default. On June 30, 2022, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the convertible promissory note related to the Company's failure to timely file its 10-K for the year ended December 31, 2021, and Form 10-Q for the three-month periods ended March 31, 2022, June 30, 2022, and September 30, 2022.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting.

**Promissory Debenture**

On February 15, 2020 and on May 14, 2020, the Company entered into Promissory Agreement and Convertible Debentures ("Promissory Debentures") with Emry for a principal sum of $70,000 (which was paid in two tranches: $50,000, paid on February 15, 2020, and $20,000, paid in April 2020) and $48,000 (which was paid in three tranches: $23,000, paid on May 14, 2020, $15,000, paid on May 22, 2020, and $10,000, paid on June 8, 2020), respectively. The Promissory Debentures bear interest, both before and after default, at 15% per month, calculated and compounded monthly. At the election of the holder, at any time during the period between the date of issuance and the one year anniversary of the Promissory Debentures, the Promissory Debentures are convertible into shares of the Company's common stock at a conversion price of $0.001 per share. In addition, the Promissory Debentures provide for an interest equal to 15% of TNRG annual sales, payable on the 2<sup>nd</sup> day following the date of issuance of the Company's audited financial statements.

On June 24, 2020, Emry, holder of (i) Promissory Debentures in principal amount of $70,000 dated February 15, 2020, and (ii) that certain convertible promissory note in principal amount of $85,766 dated April 22, 2019, sold 50% of each (Promissory Debentures and convertible promissory note), including accrued and unpaid interest, fees and penalties, in separate transactions to third party companies, SP11 Capital Investments and E.L.S.R. CORP, Florida companies, such that SP11 Capital Investments and E.L.S.R. CORP each hold 50% of each respective debt instrument.

On October 4, 2020, SP11 converted $35,000 of its Promissory Debentures at $0.01 per share into 3,500,000 shares of the Company's common stock.

On November 22, 2021, the loan of $48,000 and accrued and unpaid interest of $573,798 totaling $621,798 was forgiven by EMRY and recorded as a gain on extinguishment of debt in Other Expense in the Condensed Consolidated Statements of Operations.

**NOTE 10 – STOCKHOLDERS' EQUITY**

**Common Stock**

The Company has been authorized to issue 900,000,000 shares of common stock, $0.001 par value. Each share of issued and outstanding common stock shall entitle the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the corporation upon liquidation or dissolution.

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Company's Articles of Incorporation that provided for a 1 for 20 reverse stock-split of the Company's Common Stock. The Company's Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. All share and per share amounts contained in this Annual Report on Form 10-K and the accompanying Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

On August 14, 2020, the Company issued 60,000,000 common shares in conjunction with acquisition (see Note 1).

On October 4, 2020, SP11 converted $35,000 of its Promissory Debentures at $0.01 per share into 3,500,000 shares of the Company's common stock.

On October 13, 2020, the Company issued 195,480 common shares, valued at $33,232 (based on the Company's stock price on the date of issuance), to GHS Investments in settlement of services provided to the Company.

On December 6, 2021, the holder of the note converted $190,000 of the Note into 3,800,000 shares of the Company's common stock for a balance due of $410,000 at December 31, 2021 on the Note.

As part of the Purchase, Mr. Shvo submitted 55,000,000 shares of restricted common stock to the Company's treasury for cancellation, in consideration for the transfer to him by TNRG of all of the issued and outstanding membership interests, assets and liabilities of Nature and HP, both of which are wholly-owned subsidiaries of TNRG.

On March 1, 2022, as amended on October 1, 2022, the Company entered into an Employment Agreement with Mr. Ricardo Haynes whereby Mr. Haynes became the sole Director, CEO and Chairman of the Board, and the acting sole officer of the Company. The Employment Agreement is in effect until September 30, 2027. Under this Engagement Agreement, Mr. Haynes will be entitled to a total of 25,000,000 common shares, vesting immediately, valued at $750,000 (based on the Company's stock price on the date of issuance).

On April 6, 2022, the Company entered into a Consulting Agreement with Top Flight Development LLC ("Top Flight"), an entity controlled by the father of the Company's Director Real Estate Development, to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, Top Flight will be entitled to a total of 15,000,000 common shares, valued at $450,000 (based on the Company's stock price on the date of issuance) and vesting immediately and shall be paid $21,000 per month beginning on the first day of the month following the execution of the agreement. The Company paid Top Flight $67,400 and $105,000 during the three and nine months ended September 30, 2022, respectively, with a balance due of $7,400 as of September 30, 2022.

On April 6, 2022, the Company entered into a Consulting Agreement with a third party to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, the third party will be entitled to a total of 5,000,000 common shares, valued at $150,000 (based on the Company's stock price on the date of issuance) and vesting immediately.

On April 6, 2022, the Company entered into a Consulting Agreement with a third party to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, the third party will be entitled to a total of 2,000,000 common shares, valued at $60,000 (based on the Company's stock price on the date of issuance) and vesting immediately.

**Preferred Stock**

The Company has been authorized to issue 50,000,000 shares of $0.001 par value Preferred Stock. The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, within certain guidelines established in the Articles of Incorporation.

Series A: The certificate of designation for the Preferred A Stock provides that as a class it possesses a number of votes equal to fifteen (15) votes per share and may be converted into ten (10) $0.001 par value common shares.

On October 10, 2013, the Company issued fifty million (50,000,000) shares of our Series "A" Convertible Preferred Stock to Hadronic, a Florida corporation maintaining its principal place of business at 35246 US Highway 19 North, Suite #215, Palm Harbor, Florida 34684. Our previous Directors, Dr. Ruggero M. Santilli and Mrs. Carla Santilli each own fifty percent of the equity in Hadronic. The Series "A" Convertible Preferred Stock has 15 votes per share and is convertible into 10 shares of our common stock at the election of the shareholder. Shares were valued at the par value of the common stock equivalents, $500,000.

On January 9, 2020, Mina Mar (the "Purchaser") acquired 50,000,000 shares of Series A Convertible Preferred Stock of the Company from Hadronic. At completion of the stock purchase the Purchaser owns approximately 98.6% of the fully diluted outstanding equity securities of the Company and approximately 99% of the voting rights for the outstanding equity securities. The purchase price of $94,766 for the Preferred Stock was paid by the assumption of a Company note obligation of $85,766 to Emry, with the balance paid in cash. The consideration for the purchase was provided to the Purchaser from the private funds of the principal of the Purchaser. The purchase of the Preferred Stock was the result of a privately negotiated transaction and consummation of the purchase resulted in a change of control of the Company.

On March 24, 2020, Saveene ("Saveene") acquired 50,000,000 shares of Series A Convertible Preferred Stock of the Company, from Mina Mar. At the completion of the stock purchase, Saveene owns approximately 98.6% of the fully diluted outstanding equity securities of the Company and approximately 99% of the voting rights for the outstanding equity securities. The purchase price of $500,000 for the Preferred Stock was paid in cash. The consideration for the purchase was provided to the Purchaser from the private funds of the principal of Saveene. The purchase of the Preferred Stock was the result of a privately negotiated transaction and consummation of the purchase resulted in a change of control of the Company.

On March 24, 2020, the Company held a meeting and voted to create two separate classes of preferred shares. Class "B" and class "C' preferred shares. One class of shares B would be used to offer securitization for the watercraft while class C preferred shares would be used in conjunction with the securitization of air crafts.

Series B Convertible Preferred Stock was authorized for 10,000,000 shares of the "Company. Each share of Preferred Stock is entitled to one thousand (1,000) votes per share and at the election of the holder converts into one thousand (1,000) shares of Company common stock, so at the completion of the stock purchase, Saveene owns approximately 100% of the fully diluted outstanding equity securities of the Company and approximately 100% of the voting rights for the outstanding equity securities. The consideration for the purchase was provided to Saveene from the private funds of the principal of Saveene.

Series C Non-Convertible Preferred Stock was authorized for 10,000,000 shares of the Company. Each share of Preferred Stock is entitled to one thousand (1,000) votes per share and at the election of the holder. The series C is Non-Convertible Preferred Stock. Saveene owns approximately 100% of the fully diluted outstanding equity securities of the Company and approximately 100% of the voting rights for the outstanding equity securities. The consideration for the purchase was provided to Saveene from the private funds of the principal of Saveene.

On March 24, 2020, the note obligation of $120,766 held by Emry was partially sold $35,000 of the face amount to the preferred shareholder Saveene. On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares of series B and 10,000 shares of series C shares. The face amount of the Company note obligation post the aforementioned conversions and purchases is $85,766.

On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares of series B and 10,000 shares of series C shares. As a result, the Series B and C voting ownership approximates 57% and therefore, the Company has a change in ownership resulting in the recognition of a gain or loss on the sale of the interest sold and on the revaluation of any retained noncontrolling investment in accordance with ASC 810-10-40-5.

The Company's stock price on March 24, 2020 was $0.03, giving the Company a value of $0.03 per share times 11,244,923 shares outstanding or $337,348. The transaction was booked to loss on extinguishment of change in control and with the off-setting entry to additional paid-in capital due to it being a related party transaction.

**Acquisition of TNRG Preferred Stock**

***Fiscal Year 2022***

On February 28, 2022, Mr. Ricardo Haynes, Mr. Eric Collins, Mr. Lance Lehr, Ms. Tori White and Mr. Donald Keer, each as an individual and principal shareholder of Bear Village, Inc., a Wyoming corporation, (the "Purchaser") collectively acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of Thunder Energies Corporation, a Florida corporation, (the "Company" or the "Registrant") from Mr. Yogev Shvo, an individual domiciled in Florida (the "Seller") (the "Purchase"). The consideration for the Purchase was provided to the Seller by the Purchaser on behalf of the Shareholders and was recorded as compensation expense (see Note 1).

**NOTE 11 – OPERATING LEASES –DISCONTINUED OPERATIONS**

The Company adopted ASC 842 as of December 31, 2019. The Company had an operating lease for the Company's warehouse and office and accounts for this lease in accordance with ASC 842. Adoption of the standard resulted in the initial recognition of operating lease ROU asset of $344,203 and operating lease liability of $344,203 as of December 31, 2019.

Operating lease right-of-use ("ROU") assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company's incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. Our variable lease payments primarily consist of maintenance and other operating expenses from our real estate leases. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term.

In December 2021, the Company confirmed with the landlord that as of that time and on a going forward basis, the Company has no rental obligation, or past due rental obligation or any other related liability on its office/ warehouse space located at 3017 Greene Street, Hollywood, Florida.

On October 22, 2021 the Company entered into a lease termination agreement ("Lease Termination") with Canal Park Office to terminate the Company's North Miami Beach, Florida office space. The Termination Agreement allows Canal Park Office to retain the security deposit of $24,799 and to be paid $21,000. The Company was released from any other obligations.

See Note 1 for impairment discussion as of December 31, 2021.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

In accordance with ASC 842, the components of lease expense were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months ended September 30,** | **Nine Months ended September 30,** | **Three Months ended September 30,** | **Three Months ended September 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Operating lease expense | $– | $177720 | $– | $59240 |
| Short term lease cost | – | 225 | – | – |
| Total lease expense |  | 177945 |  | 59240 |
| Less: Rental income through sub-lease | – | (49823) | – | – |
| Net lease expense | $– | $128122 | $– | $59240 |

---

Operating lease cost was $0 and $0, and $59,240 and $177,720 (from discontinued operations) for the three and nine months ended September 30, 2022 and 2021, respectively.

**NOTE 12 – Related Party Transactions** 

Other than as set forth below, and as disclosed in Notes 6, 8, 10, and 16, there have not been any transaction entered into or been a participant in which a related person had or will have a direct or indirect material interest.

On April 2, 2022, the Company entered into a demand note ("Demand Note") with Bear Village, Inc., a related party, for $36,200. The Demand Note bears no interest, is due on demand, and is unsecured. On September 27, 2022, Bear Village repaid $10,000 for a balance due from Bear Village of $26,200 at September 30, 2022.

On April 6, 2022, the Company entered into a Consulting Agreement with Top Flight, an entity controlled by the father of the Company's Director Real Estate Development, to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, Top Flight will be entitled to a total of 15,000,000 common shares, valued at $450,000 (based on the Company's stock price on the date of issuance) and vesting immediately and shall be paid $21,000 per month beginning on the first day of the month following the execution of the agreement. During the three and nine months ended September 30, 2022, the Company paid Top Flight $67,400 and $105,000, respectively, with a balance due of $7,400 as of September 30, 2022.

**NOTE 13 – EARNINGS PER SHARE**

FASB ASC Topic 260, *Earnings Per Share*, requires a reconciliation of the numerator and denominator of the basic and diluted earnings (loss) per share ("EPS") computations.

Basic earnings (loss) per share are computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

Basic and diluted earnings (loss) per share are the same since net losses for all periods presented and including the additional potential common shares would have an anti-dilutive effect.

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

---

| | | |
|:---|:---|:---|
|  | **September 30, 2022** | **December 31, 2021** |
| Options to purchase shares of common stock |  |  |
| Series A convertible preferred stock | 500000000 | 500000000 |
| Series B convertible preferred stock | 5000000 | 5000000 |
| Series C convertible preferred stock | 10000 | 10000 |
| Total potentially dilutive shares | 505010000 | 505010000 |

---

The following table sets forth the computation of basic and diluted net income per share:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Loss from continuing operations | $(3306660) | $(1697606) | $(1313773) | $(972041) |
| Discontinued operations | – | 50973 | – | (350983) |
| Net loss | $(3306660) | $(1646633) | $(1313773) | $(1323024) |
| Basic weighted average outstanding shares of common stock | 70796413 | 76340735 | 72140735 | 76340735 |
| Dilutive effect of options and warrants | – | – | – | – |
| Diluted weighted average common stock and common stock equivalents | 70796413 | 76340735 | 72140735 | 76340735 |
| Loss per share: |  |  |  |  |
| Net loss per share from continuing operations, basic and diluted | $(0.05) | $(0.03) | $(0.02) | $(0.02) |
| Net loss per share from discontinued operations, basic and diluted | – | (0.00) | – | (0.00) |
| Net loss per share, basic and diluted | $(0.05) | $(0.03) | $(0.02) | $(0.02) |

---

**NOTE 14 – COMMITMENTS AND CONTINGENCIES**

**Legal**

From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these, or other matters may arise from time to time that may harm our business. We are currently not aware of any legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results except:

***First Capital Venture***

On November 3, 2020, First Capital Venture Co., a subsidiary of the client, d/b/a Diamond CBD, filed a civil complaint against the Shvo Defendants and Thunder Energies Corporation (the "Defendants"), in the pending 17th Judicial Circuit Court in and for Broward County, Florida, (the "Florida Court"), Case Number CACE-20-019111 (the "Complaint").

On January 26, 2021, Plaintiffs were erroneously granted an Order of Default to which the Defendants immediately pointed out to the Court and on February 23, 2021 an Order Vacating the Default was granted in favor of the Defendants. The Plaintiff knew, or should have known, that the Order of Default was not valid but they proceeded on February 9, 2021 to publish false and misleading press releases.

Thunder Energies Corporation is proceeding through discovery and is of the belief the suit will be decided in their favor. A pending Motion to Dismiss is before the Court. Plaintiff's Complaint is based on a claim for tortious interference and misappropriation of trade secrets. Neither claim is supported by the Complaint.

Thunder Energies Corporation has issued a cease and desist to the Plaintiff and is considering a counter claim concerning the false information and disclosures made by the Plaintiff that may have affected the Company's business and shareholders.

On November 23, 2022 ("Settlement Date"), Mr. Shvo agreed to settle with First Capital Venture on behalf of the Defendants for $11,500 to be paid within ten (10) days from the Settlement Date. As of the date of this filing, the settlement payment of $11,500 has not been paid.

***Rocket Systems – Discontinued Operations***

On October 13, 2021, Rocket Systems, Inc. ("Plaintiff") filed a complaint against Nature Consulting LLC ("Nature") in the pending 17th Judicial Circuit Court in and for Broward County, Florida, (the "Florida Court"), Case Number CACE-21-018840 (the "Complaint").

The complaint alleges that the Plaintiff paid Nature a deposit of $50,000 for the delivery of Nature products. According to the Complaint, Nature delivered $6,188 of the product but failed to deliver the remaining $43,812 of product.

Plaintiff has demanded that the remainder of the product order be canceled and the refund of $43,812 be issued. In addition, the Plaintiff is seeking prejudgment interest and costs of this action.

The Company is unable to predict the financial outcome of this matter at this time, and any views formed as to the viability of these claims or the financial exposure which could result may change from time to time as the matter proceeds through its course. Accordingly, adjustments, if any, that might result from the resolution of this matter have not been reflected in the consolidated financial statements except that Nature has recorded a reserve of $43,812 as of December 31, 2021. However, no assurance can be made that this matter together with the potential for reputational harm, will not result in a material financial exposure, which could have a material adverse effect on the Company's financial condition, results of operations, or cash flows.

This contingency will remain with Nature and not be a contingency for the Company per the Bear Village acquisition (see Note 1).

***Home Remedies CBD – Discontinued Operations***

On November 23, 2021, Home Remedies CBD, LLC ("Plaintiff") filed a complaint against TheHemplug LLC ("THP") in the pending 3rd Judicial Circuit Court in and for Wayne County, Michigan, (the "Michigan Court"), Case Number CACE-21-016306-CB (the "Complaint").

The complaint alleges that the Plaintiff paid Nature a deposit of $60,030 for the delivery of THP products. According to the Complaint, Nature delivered $27,600 of the product but failed to deliver the remaining $32,430 of product. In addition, Plaintiff returned $4,575 of product to correct the labeling and that THP failed to correct the labeling and return the product to Plaintiff.

Plaintiff has demanded that the remainder of the product order be canceled and a refund of $37,005. In addition, the Plaintiff is seeking prejudgment interest and costs of this action.

On July 19, 2022, THP agreed to pay Plaintiff a settlement of $15,000. This contingency will remain with Nature and not be a contingency for the Company per the Bear Village acquisition (see Note 1).

**Guarantees *– Discontinued Operations***

The Company's Promissory Note is collateralized by substantially all of the Company's assets and is personally guaranteed by the Company's CEO.

**Employment Contracts**

On March 1, 2022, as amended on October 1, 2022, Mr. Ricardo Haynes, the Company's Chief Executive Officer and President ("CEO") entered into an Employment Agreement with the Company. The Employment agreement terminates September 30, 2027 and automatically renews on a year-to-year basis unless terminated by either party on six months' notice. In addition, Mr. Haynes is entitled to employee reimbursements totaling $820 per month, entitled to six (6) weeks paid vacation each year, provides for medical and dental insurance, and entitled to stock options upon the implementation of a Company employee option plan. Under this Employment agreement, the CEO will be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· $5,700 for services performed from March 1, 2022 – June 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Lump Sum payment of $21,299 for services from July 1, 2022 – December 31, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· 25,000,000 shares of TNRG common stock in the Company which vest immediately.

&nbsp;&nbsp;&nbsp;&nbsp;· 7,500,000 newly issued Preferred A shares of TNRG stock CUSIP (88604Y209) Cert No. 400002

&nbsp;&nbsp;&nbsp;&nbsp;· 750 newly issued Preferred B shares of TNRG stock CUSIP (88604Y209), Cert. No. 500002

&nbsp;&nbsp;&nbsp;&nbsp;· 1,500 newly issued Preferred C shares of TNRG stock CUSIP (8860Y209), Cert No. 600002

&nbsp;&nbsp;&nbsp;&nbsp;· $7,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· 1,500 RoRa Coins in possession of the Company.

**Investment in Fourth & One**

On September 8, 2022, the Company entered into a Membership Interest Purchase Agreement ("Agreement") with Fourth & One, LLC ("Fourth & One") with respect to the sale and transfer of 51.5% of Fourth & One's interest in WC Mine Holdings, LLC ("WCMH") giving the Company a 30.9% ownership in WCMH for consideration totaling $5,450,000. In exchange, the Company issued Fourth & One a promissory note of $4,000,000 and 2,000 RoRa Prime digital coins ("Coins"), valued at $1,450,000. The promissory note provides for no interest and matures on October 31, 2022 ("Maturity Date"). In addition, the promissory note provides that the Company may convert all amounts at any time prior to the Maturity Date and after gaining approval by the Securities and Exchange Commission of the Company's REG A II Offering and Fourth & One may convert all amounts into common stock prior to the Maturity Date at a conversion price of $2.00 per share. The Agreement also provides that should Fourth & One not be able to convert the Coins on or before October 31, 2022 at a conversion ratio of $800 per Coin, the Company will purchase all of the Coins for a total of $1,600,000 (2,000 Coins at $800 per Coin) on October 31, 2022.

On November 1, 2022, the Company and Fourth & One mutually agreed to terminate the Agreement and the Company was released from any obligations.

**Financing Engagement Agreement**

On August 25, 2022 the Company entered into a Legal Services Agreement with The George Law Group in connection with an issuance of multi-tranched securitization ("Financing") which shall utilize a pledge of the Company's stock and other properties currently owned or under the Company's control. The legal fee shall be one-half of one percent (0.5%) of the par amount of any Financing. The Company paid a retainer of $25,000 at the signing of the Legal Services Agreement which will be applied to any fees incurred in the Financing.

**NOTE 15 – DISCONTINUED OPERATIONS** 

As a result of the October 14, 2021 Complaint filed against Defendants, the Company determined that Nature would be accounted as a discontinued operation pursuant to ASC 205-20 *Discontinued Operations*. In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyzed whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we considered whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results.

The following table reconciles the loss realized from the disposal of discontinued operations:

---

| | |
|:---|:---|
|  | **December 31,**<br>**2021** |
| Accounts payable | $386129 |
| Due to related party | 72743 |
| Customer advance payments | 203518 |
| Short term notes payable | 149490 |
| Accrued interest | 89120 |
| Gain on disposal of discontinued operation | $(901000) |

---

Discontinued operations for the year ended December 31, 2021 consist of the operations from Nature.

The following tables lists the assets and liabilities of discontinued operations as of September 30, 2022 and December 31, 2021 and the discontinued operations for Nature for three and nine months ended September 30, 2022 and 2021:

---

| | | |
|:---|:---|:---|
|  | **September 30,**<br>**2022** | **December 31,**<br>**2021** |
| Liabilities |  |  |
| Current liabilities: |  |  |
| Accounts payable | $– | $386129 |
| Due to related party |  | 72743 |
| Loan payable to shareholder |  |  |
| Customer advance payments |  | 203518 |
| Short term notes payable |  | 149490 |
| Current portion of operating lease liabilities |  |  |
| Accrued interest |  | 89120 |
| Other current liabilities | – | – |
| Total current liabilities of discontinued operation | – | 901000 |
| Total liabilities of discontinued operations | $– | $901000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Nine Months Ended <br> September 30,** | **For the Nine Months Ended <br> September 30,** | **For the Three Months Ended <br> September 30,** | **For the Three Months Ended <br> September 30,** |
|  | **2022** | **2021** | **2022** | **2021** |
| Revenue | $– | $3777276 |  | $335095 |
| Cost of sales | – | 1582799 |  | 207133 |
| Gross profit |  | 2194477 |  | 127962 |
| Operating expenses: |  |  |  |  |
| Advertising and marketing expenses |  | 391850 |  | 39883 |
| General and administrative | – | 1726902 |  | 434843 |
| &nbsp;&nbsp;&nbsp;Total operating expenses | – | 2118712 |  | 474726 |
| Profit (loss) from operations | – | 75724 |  | (346764) |
| Other expense (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Impairment of assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense |  | 24751 |  | 4219 |
| &nbsp;&nbsp;&nbsp;Other expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Other income | – | – |  | – |
| Total other expense | – | 24751 |  | 4219 |
| Profit (loss) before income taxes |  | 50973 |  | (350983) |
| &nbsp;&nbsp;&nbsp;Income taxes | – | – |  | – |
| Net profit (loss) of discontinued operations | $– | $50973 |  | $(350983) |

---

**NOTE 16 – SUBSEQUENT EVENTS**

As of November 16, 2022, the Company has not repaid three convertible notes totaling $630,000 and the three convertible notes are now in default. The Company is currently in discussions to restructure the terms of the note.

**April 2022 Notes**

Subsequent to September 30, 2022, the Company offered and sold an additional $64,100 of the April 2022 Notes paying interest that varies from 0% to 8% per annum and are due and payable on various dates from December 31, 2022 through October 31, 2024 (see Note 9).

**Employment Agreements**

On October 1, 2022, the Company entered into Employment Agreements with individuals for positions in the Company. Each of the Employment agreements shall begin October 1, 2022 and terminate September 30, 2027 and automatically renews on a year-to-year basis unless terminated by either party on six months' notice. In addition, each employee is entitled to employee reimbursements totaling $820 per month, entitled to six (6) weeks paid vacation each year, provides for medical and dental insurance, and entitled to stock options upon the implementation of a Company employee option plan. Under these Employment agreements, each employee will be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Ms. Tori White, Director Real Estate Development.

○ $24,000 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

○ 4,800 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Eric Collins, Chairman and Chief Operations Officer.

○ $12,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

○ 2,500 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Donald Keer, Corporate Counsel

○ $3,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

○ 700 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Lance Lehr, Chief Operating Officer

○ $2,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

○ 500 RoRa Coins in possession of the Company.

The Company had been in discussions with the Shareholders for repayment of the Acquisition of Preferred Shares and finalized the Employment Agreements on October 1, 2022 for positions in the Company. As a result, the Company recorded the purchase price as compensation on March 1, 2022 (see Note 1).

**Report of Independent Registered Public Accounting Firm**

To the Board of Directors and Stockholders of Thunder Energies Corporation

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Thunder Energies Corporation and its subsidiary (the "Company") as of December 31, 2021 and 2020, and the related consolidated statements of operations, changes in stockholders' deficit, and cash flows for each of the years in the two period ended December 31, 2021, 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, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company's significant operating losses and discontinued operations raise substantial doubt about its ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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.

**Critical Audit Matter**

The critical audit matter communicated below is matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinion on the critical audit matter or on the accounts or disclosures to which they relate.

*Impairment of Assets*

 

As described in Note 1 to the consolidated financial statements, during 2021, Ben Simon, and those in active consort with him effectively hijacked Nature's assets under the threat of force and physical violence and systematically divested Nature of its assets, moved into its physical location without reason, and otherwise converted its assets. Hence, Nature Consulting, LLC filed a complaint in the United States District Court of the Southern District of Florida against them. As a result of the actions of the parties mentioned above, the Company recorded an impairment expense of $195,347 in the consolidated statement of operations.

Auditing the Company's accounting for the impairment expense is complex due to the fact that all the assets, except cash were destroyed by the defendants and hence, the recoverable amount of these assets were zero. Further, there are legal proceeding going on for the Company as stated above and against the Company in relation to the customer advances, which impact the amount recoverable for these assets and potential liabilities to be settled. Auditing this areas is also complex due to the judgment in estimating the carrying amount of the assets and liabilities at the date of impairment.

As part of our testing, we ensured appropriate impairment expense has been recorded in the consolidated statement of operations by testing completeness and accuracy of these assets and related liabilities through reconciliation as of the impairment date. For Property and Equipment and Intangibles, we recalculated the depreciation and amortization expense through the impairment date and ensured that the related amount impaired is net book value on that date. For balances related to leases, we verified the respective agreements (including the termination agreement) and recalculated the balances related to operating lease right-of-use asset and operating lease liabilities which have been impaired. Further, we sent out confirmations to Company's attorney and vendors included in accounts payable to ensure completeness of liabilities.

/s/ Paris, Kreit & Chiu CPA LLP

New York, NY

October 18, 2022

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

**THUNDER ENERGIES CORPORATION**

**Consolidated Balance Sheets**

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2021** | **2020** |
| **ASSETS** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Current assets of discontinued operations | $– | $536426 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets |  | 536426 |
| &nbsp;&nbsp;&nbsp;Long-term assets of discontinued operations | – | 723287 |
| **Total assets** | $**–** | $**1259713** |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable | $70971 | $31669 |
| &nbsp;&nbsp;&nbsp;Derivative liability | 83404 | 124180 |
| &nbsp;&nbsp;&nbsp;Convertible notes payable, net of discount of $241,876 and $24,730, respectively | 508890 | 144036 |
| &nbsp;&nbsp;&nbsp;Accrued interest | 1019156 | 374443 |
| &nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | 901000 | 1431386 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 2583421 | 2105714 |
| &nbsp;&nbsp;&nbsp;Long-term liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Convertible notes payable, net of discount of $0 and $727,096, respectively |  | 92904 |
| &nbsp;&nbsp;&nbsp;Long-term liabilities of discontinued operations | – | 461966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total long-term liabilities | **–** | **554870** |
| **Total liabilities** | **2583421** | **2660584** |
| **Commitments and contingencies** |  |  |
| **Stockholders' deficit** |  |  |
| Preferred stock - Series A: $0.001 par value, 50,000,000 authorized; 50,000,000 and 50,000,000 shares issued and outstanding, respectively | 50000 | 50000 |
| Preferred stock - Series B: $0.001 par value, 10,000,000 authorized; 5,000 and 5,000 shares issued and outstanding, respectively | 5 | 5 |
| Preferred stock - Series C: $0.001 par value, 10,000,000 authorized; 10,000 and 10,000 shares issued and outstanding, respectively | 10 | 10 |
| Common stock: $0.001 par value 900,000,000 authorized; 80,140,735 and 76,340,735 shares issued and outstanding, respectively | 80140 | 76340 |
| Additional paid-in-capital | (693112) | (879312) |
| Accumulated deficit | (2020464) | (647914) |
| Total stockholders' deficit | (2583421) | (1400871) |
| **Total liabilities and stockholders' deficit** | $**–** | $**1259713** |

---

***See notes to consolidated financial statements***

**THUNDER ENERGIES CORPORATION**

**Consolidated Statements of Operations**

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2021** | **2020** |
| **Net revenues** | $– | $– |
| **Cost of sales** | – | – |
| Gross Profit |  |  |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and marketing expenses |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | – | – |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | – | – |
| Profit from operations | – | – |
| Other expense (income): |  |  |
| &nbsp;&nbsp;&nbsp;Change in derivative liability | (40776) | 21445 |
| &nbsp;&nbsp;&nbsp;Accretion of debt discount | 509950 | 187293 |
| &nbsp;&nbsp;&nbsp;Interest expense | 1288912 | 299506 |
| &nbsp;&nbsp;&nbsp;Gain on extinguishment of debt | (621798) |  |
| &nbsp;&nbsp;&nbsp;Other expense |  | 56500 |
| &nbsp;&nbsp;&nbsp;Other income | – | (58771) |
| Total other expense | 1136288 | 505973 |
| Loss before income taxes and discontinued operations | (1136288) | (505973) |
| &nbsp;&nbsp;&nbsp;Income taxes | – | – |
| Loss from continuing operations | (1136288) | (505973) |
| &nbsp;&nbsp;&nbsp;Discontinued operations | (236262) | (44629) |
| **Net loss** | $(1372550) | $(550602) |
| Net loss per share from continuing operations, basic and diluted | $(0.02) | $(0.02) |
| Net loss per share from discontinued operations, basic and diluted | (0.00) | (0.00) |
| Net loss per share, basic and diluted | $(0.02) | $(0.02) |
| Weighted average number of shares outstanding |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | 76735271 | 35787669 |

---

***See notes to consolidated financial statements***

**THUNDER ENERGIES CORPORATION**

**Consolidated Statements of Changes in Stockholders' Deficit**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | **Preferred Stock A** | **Preferred Stock A** | **Preferred Stock B** | **Preferred Stock B** | **Preferred Stock C** | **Preferred Stock C** |
|  | **Members'**<br>**equity** | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Amount** |
| **Balance, December 31, 2019** | $– |  |  |  |  |  |  |
| Acquisition of common shares in exchange for due to related party | (750000) |  |  |  |  |  |  |
| Debt discount issued in conjunction with debt |  |  |  |  |  |  |  |
| Common shares issued for acquisition |  |  |  |  |  |  |  |
| Issued common shares for services |  |  |  |  |  |  |  |
| Conversion of debt to common stock |  |  |  |  |  |  |  |
| Liability paid by shareholder |  |  |  |  |  |  |  |
| Members' distribution | (588191) |  |  |  |  |  |  |
| Acquisition of business | 1338191 | 50000000 | 50000 | 5000 | 5 | 10000 | 10 |
| Net loss | – | – | – | – | – | – | – |
| **Balance, December 31, 2020** | $– | 50000000 | 50000 | 5000 | 5 | 10000 | 10 |
| **Balance, December 31, 2020** | $– | 50000000 | 50000 | 5000 | 5 | 10000 | 10 |
| Issuance of common stock in conjunction with conversion of convertible note payable |  |  |  |  |  |  |  |
| Net loss | – | – | – | – | – | – | – |
| **Balance, December 31, 2021** | $– | 50000000 | 50000 | 5000 | 5 | 10000 | 10 |

---

(continued)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Additional<br> paid in**<br>**capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balance, December 31, 2019** |  | $– | $– | $(97312) | $(97312) |
| Acquisition of common shares in exchange for due to related party |  |  |  |  | (750000) |
| Debt discount issued in conjunction with debt |  |  | 820000 |  | 820000 |
| Common shares issued for acquisition | 60000000 | 60000 |  |  | 60000 |
| Issued common shares for services | 195480 | 195 | 33037 |  | 33232 |
| Conversion of debt to common stock | 3500000 | 3500 | 31500 |  | 35000 |
| Liability paid by shareholder |  |  | 47586 |  | 47586 |
| Members' distribution |  |  |  |  | (588191) |
| Acquisition of business | 12645255 | 12645 | (1811435) |  | (410584) |
| Net loss | – | – | – | (550602) | (550602) |
| **Balance, December 31, 2020** | 76340735 | $76340 | $(879312) | $(647914) | $(1400871) |
| **Balance, December 31, 2020** | 76340735 | $76340 | $(879312) | $(647914) | $(1400871) |
| Issuance of common stock in conjunction with conversion of convertible note payable | 3800000 | 3800 | 186200 |  | 190000 |
| Net loss | – | – | – | (1372550) | (1372550) |
| **Balance, December 31, 2021** | 80140735 | $80140 | $(693112) | $(2020464) | $(2583421) |

---

***See notes to consolidated financial statements***

**THUNDER ENERGIES CORPORATION**

**Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(1372550) | $(550602) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 44959 | 11854 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | 7755 | 5695 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accretion of debt discount | 509950 | 187293 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (40776) | 21445 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets | 195347 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on extinguishment of debt | (621798) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forgiveness of PPP loan | (200000) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock issued for services |  | 33232 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on conversion of convertible notes payable |  | (58771) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 68403 | 42608 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories, net | 32161 | (111106) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses | 189550 | (126168) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets |  | (24799) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 304954 | (80936) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer advance payments | (318740) | 448422 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 1307631 | 359562 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | (26062) | 71703 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | **80784** | **229432** |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of intangible assets |  | (77550) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of equipment | (15337) | (162675) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | **(15337)** | **(240225)** |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from loan payable to shareholder |  | 110868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of due from related party | (243000) | (549257) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of loan payable to shareholder | (68405) | (42463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayments of short term notes payable | (51545) | (20000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from long term convertible notes payable |  | 820000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short term notes payable - related party |  | 284744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from short term notes payable |  | 201035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from PPP loan | 200000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash acquisition | – | (732691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities | **(162950)** | **72236** |
| Net (decrease) increase in cash | **(97503)** | **61443** |
| Cash at beginning of period | **97503** | **36060** |
| Cash at end of period | $**–** | $**97503** |
| Supplemental disclosures of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the period for: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest | $– | $– |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes | $– | $– |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance of common stock in conjunction with conversion of convertible note payable | $190000 | $– |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of common shares in exchange for due to related party | $– | $750000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt discount issued in conjunction with debt | $– | $820000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock issued in conjunction with convertible notes payable | $– | $35000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Liability paid by shareholder | $– | $47586 |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares issued for acquisition | $– | $60000 |

---

***See notes to consolidated financial statements***

**THUNDER ENERGIES CORPORATION**

**Notes to Consolidated Financial Statements**

**For the Years Ended December 31, 2021 and 2020**

**NOTE 1 – NATURE OF BUSINESS**

***Corporate History and Background***

Thunder Energies Corporation ("we", "us", "our", "TEC" or the "Company") was incorporated in the State of Florida on April 21, 2011.

On July 29, 2013, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the "Amendment") which changed the name of the Company from CCJ Acquisition Corp. to Thunder Fusion Corporation. The Amendment also changed the principal office address of the Company to 150 Rainville Road, Tarpon Springs, Florida 34689. On May 1, 2014, the Company filed with the Florida Secretary of State, Articles of Amendment to its Articles of Incorporation (the "Amendment") which changed the name of the Company from Thunder Fusion Corporation to Thunder Energies Corporation. The Company subsequently changed its principal office address to 3017 Greene St., Hollywood, Florida 33020.

**Acquisition of TNRG Preferred Stock**

On July 1, 2020, Yogev Shvo, a third party individual and principal shareholder of Nature Consulting LLC ("Nature" or "Purchaser") personally acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of TNRG from Saveene Corporation, a Florida corporation (the "Seller") (The "Purchase"). The purchase price of $250,000 for the Preferred Stock was paid in cash and was provided from the individual private funds of Purchaser.

The Preferred Stock acquired by the Purchaser consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 50,000,000 shares of Series A Convertible Preferred Stock wherein each share is entitled to fifteen (15) votes and converts into ten (10) shares of the Company's common stock.

2. 5,000 shares of Series B Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and converts into one thousand (1,000) shares of the Company's common stock.

3. 10,000 shares of Series C Non-Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and is non-convertible into shares of the Company's common stock.

**Acquisition of Assets of Nature**

On August 14, 2020 (the "Closing Date"), TNRG and the members of Nature entered into an Interest Purchase Agreement (the "Interest Purchase Agreement"), which closed on the same date. Pursuant to the terms of the Interest Purchase Agreement, the members of Nature sold all of their membership interests in Nature to TNRG in exchange for sixty million (60,000,000) shares of TNRG's Common Stock. As a result of this transaction, Nature became a wholly-owned subsidiary of TNRG.

The Interest Purchase Agreement contained customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches of the representations and warranties will be subject to customary indemnification provisions, subject to specified aggregate limits of liability.

The membership Interest Purchase Agreement is treated as an asset acquisition by the Company for financial accounting purposes. Nature is considered the acquirer for accounting purposes, and the historical financial statements of Nature, before the membership exchange will replace the historical financial statements of TNRG before the membership exchange and in all future filings with the SEC.

Immediately following the Interest Purchase Agreement, the business of Nature became TNRG's main operation. The Company was formed in February 2019.

**Filing of Complaint Against Certain Former Officers and Other Parties**

On October 14, 2021 Nature Consulting, LLC, a wholly owned subsidiary, filed a complaint ("Complaint") in the United States District Court of the Southern District of Florida against Or-El Ben Simon, individually, Adam Levy (previously the Chief Executive Officer of the Company), individually, Solange Baruk (previously a bookkeeper of the Company), individually, DVP Distro, LLC, a Florida limited liability company, Custom Graphics 2011, Inc. a Florida corporation, Beso Group, LLC, a Florida limited liability company, and Tops Consulting, LLC a Florida limited liability company (collectively, the "Defendants").

Ben Simon and those in active consort with him have effectively hijacked Nature's assets under the threat of force and physical violence. Moreover, they have systematically divested Nature of its assets, moved into its physical location without reason, and have otherwise converted its assets.

During this time, Defendants also assumed control of all computers belonging to Nature – including its Office365 access and database registered to Nature and using the domains of "@thpcbd.com," "@thehemplug.com," and "@natureconsulting.com."

Additionally, Defendants looted and destroyed the premises leased by Nature, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Defendants commandeered all inventory belonging to Nature and refused to distribute to clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Defendants commandeered a forklift belonging to Nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Defendants have taken possession of all of Nature's furniture, computers, printers, packaging, machineries, office supplies, phone systems, televisions, security cameras and other electronics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Defendants have discarded in a large trash container Nature's merchandise, customer labels, catalogues, business cards, desks, office decorations and other inventory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Defendants destroyed Nature's property by stripping its headquarters of all aesthetic enhancements and signage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Defendants assumed control of all e-mail accounts belonging to Nature and have intercepted Nature's communications sent to the domain "@thpcbd.com," "@thehemplug.com," and "@natureconsulting.com"; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Defendants have terminated Nature's contracts with other vendors – to do this, they have used the commandeered "@thpcbd.com," "@thehemplug.com," and "@natureconsulting.com" email addresses.

Furthermore, Defendants' conduct have impeded the fulfillment of orders already paid for by Nature's clients. This has caused Nature's clients to threaten Nature with suit and to otherwise end their business relationships with Nature due to Nature's failure to satisfy orders. Even if Nature wanted to operate, due to the unlawful interception of its communications with clients and vendors, it would be impossible.

Nature Consulting, LLC has demanded a jury trial to adjudicate this complaint.

As a result of the actions of the Defendants, the Company recorded a net impairment charge of $195,347 during the year ended December 31, 2021 comprised of the following:

---

| | |
|:---|:---|
| <br>Impairment charges: | **December 31,**<br>**2021** |
| Prepaids | $(12500) |
| Inventories | (136309) |
| Net office equipment | (18586) |
| Net computer equipment | (15283) |
| Net machinery and equipment | (21782) |
| Net leasehold improvements | (79665) |
| Net website | (64100) |
| Net operating lease right-of-use assets | (306902) |
| Deposits<sup>(2)</sup> | (24799) |
| Due to related party<sup>(1)</sup> | 169744 |
| Current portion of operating lease liabilities<sup>(2) (3)</sup> | 187754 |
| Operating lease liabilities net of current portion<sup>(2) (3)</sup> | 127081 |
| Total impairment charges | $(195347) |

---

<sup>(1)</sup> The Company has included due to related party of $169,744 within the impairment charge above as these amounts have been used to settle the assets, as impaired, which have been commandeered, discarded, destroyed and taken possession of by the defendant. This amount related to working capital loan taken from the defendants.

<sup>(2)</sup> On October 22, 2021, the Company entered into a lease termination agreement ("Lease Termination") with Canal Park Office to terminate the Company's North Miami Beach, Florida office space. The Termination Agreement allows Canal Park Office to retain the security deposit of $24,799 and to be paid $21,000. The Company was released from any other obligations.

<sup>(3)</sup> In December 2021, the Company confirmed with the landlord that as of that time and on a going forward basis, the Company has no rental obligation, or past due rental obligation or any other related liability on its office/ warehouse space located at 3017 Greene Street, Hollywood, Florida.

**NOTE 2 – Basis of Presentation**

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and include all adjustments necessary for the fair presentation of the Company's financial position for the periods presented.

The Company currently operates in one business segment. The Company is not organized by market and is managed and operated as one business. A single management team reports to the chief operating decision maker, the Chief Executive Officer, who comprehensively manages the entire business. The Company does not currently operate any separate lines of businesses or separate business entities.

 ****

***Going Concern***

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company had an accumulated deficit of $2,020,464 and $647,914 at December 31, 2021 and 2020, respectively, had a working capital deficit of $2,583,421 and $1,569,288 at December 31, 2021 and 2020, respectively, had a net losses of $1,372,550 and $550,602 for the years ended December 31, 2021 and 2020, respectively, with limited revenue earned since inception, no current revenue generating operations, and a lack of operational history. These matters raise substantial doubt about the Company's ability to continue as a going concern.

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating cost and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan to obtain such resources for the Company include, obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability.

The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

**NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

This summary of significant accounting policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The consolidated financial statements and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to GAAP and have been consistently applied in the preparation of the consolidated financial statements.

**Use of Estimates**

The preparation of these financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the reported periods. Actual results may differ from those estimates and such differences may be material to the financial statements. The more significant estimates and assumptions by management include among others: inventory valuation, common stock valuation, the recoverability of intangibles, derivative valuation, impairment of assets, and lease asset amortization. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions.

**Cash** 

The Company's cash is held in bank accounts in the United States and is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. The Company has not experienced any cash losses.

**Accounts Receivable**

Accounts receivable are non-interest-bearing obligations due under normal course of business. Management reviews accounts receivable on a monthly basis to determine if any receivables will be potentially uncollectible. Historical bad debts and current economic trends are used in evaluating the allowance for doubtful accounts. The Company includes any accounts receivable balances that are determined to be uncollectible in its overall allowance for doubtful accounts. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. Based on the information available, the Company has an allowance for doubtful accounts of $147,357 (included in discontinued operations) and $14,350 (included in discontinued operations) as of December 31, 2021 and 2020, respectively.

**Cash Flows Reporting**

The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category. The Company uses the indirect or reconciliation method ("Indirect method") as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.

**Related Parties**

The Company follows ASC 850, "Related Party Disclosures," for the identification of related parties and disclosure of related party transactions. Related parties are any entities or individuals that, through employment, ownership or other means, possess the ability to direct or cause the direction of the management and policies of the Company.

**Income Taxes**

As a result of the Company's Interest Purchase Agreement, the Company converted to a corporation ("Conversion"). Beginning on August 14, 2020, the Company's results of operations are taxed as a C Corporation. Prior to the Conversion, the Company's operations were taxed as a limited liability company, whereby the Company elected to be taxed as a partnership and the income or loss was required to be reported by each respective member on their separate income tax returns. Therefore, no provision for income taxes has been provided in the accompanying consolidated financial statements for periods prior to August 14, 2020.

The computation of income taxes included in the Consolidated Statements of Operations, represents the tax effects that would have been reported had the Company been subject to U.S. federal and state income taxes as a corporation for all periods presented. Taxes are based upon the statutory income tax rates and adjustments to income for estimated permanent differences occurring during each period. Actual rates and expenses could have differed had the Company actually been subject to U.S. federal and state income taxes for all periods presented.

Income taxes are accounted for under an asset and liability approach. This process involves calculating the temporary and permanent differences between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The temporary differences result in deferred tax assets and liabilities, which would be recorded on the Consolidated Balance Sheets in accordance with ASC 740, which established financial accounting and reporting standards for the effect of income taxes. The likelihood that its deferred tax assets will be recovered from future taxable income must be assessed and, to the extent that recovery is not likely, a valuation allowance is established. Changes in the valuation allowance in a period are recorded through the income tax provision in the Consolidated Statements of Operations.

ASC 740-10-30 was adopted from the date of its inception. ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an entity's consolidated financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, ASC 740-10 provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. As a result of the implementation of ASC 740-10, and currently, the Company does not have a liability for unrecognized income tax benefits.

**Advertising and Marketing Costs**

Advertising and marketing expenses are recorded as marketing expenses when they are incurred. Advertising and marketing expense was $392,171 and $866,779 for the years ended December 31, 2021 and 2020, respectively.

**Revenue Recognition** 

On January 19, 2019 (date of formation), the Company adopted Accounting Standards Codification ASC 606 ("ASC 606"), *Revenue from Contracts with Customers*. Results for the reporting periods beginning on January 19, 2019 (date of formation) are presented under ASC 606.

The Company generates all of its revenue from contracts with customers. The Company recognizes revenue when we satisfy a performance obligation by transferring control of the promised services to a customer in an amount that reflects the consideration that we expect to receive in exchange for those services. The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identification of the contract, or contracts, with a customer.

2. Identification of the performance obligations in the contract.

3. Determination of the transaction price.

4. Allocation of the transaction price to the performance obligations in the contract

5. Recognition of revenue when, or as, we satisfy a performance obligation.

At contract inception, the Company assesses the services promised in our contracts with customers and identifies a performance obligation for each promise to transfer to the customer a service (or bundle of services) that is distinct. To identify the performance obligations, the Company considers all of the services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. The Company allocates the entire transaction price to a single performance obligation.

A description of our principal revenue generating activities are as follows:

*Sales* – The Company offers consumer products through its online websites. During the years ended December 31, 2021 and 2020, the Company recorded retail sales of $3,750,519 (included in discontinued operations) and $4,620,105 (included in discontinued operations), respectively.

*Mask sales* – As a result of the COVID 19 pandemic, in 2020, the Company entered into the sale of KN95 masks but had to dispose of them at a loss. During the years ended December 31, 2021 and 2020, the Company recorded mask sales of $0 (included in discontinued operations) and $3,054,201 (included in discontinued operations), respectively.

The Company evaluates whether it is appropriate to record the gross amount of product sales and related costs or the net amount earned as commissions. Generally, when the Company is primarily obligated in a transaction, are subject to inventory risk, have latitude in establishing prices and selecting suppliers, or have several but not all of these indicators, revenue is recorded at the gross sale price. The Company generally records the net amounts as commissions earned if we are not primarily obligated and do not have latitude in establishing prices.

Revenue is recognized when the product is shipped to the customer, provided that collection of the resulting receivable is reasonably assured. The Company primarily provides for no credit terms as it collects a deposit of 50% upon order and requires the remaining 50% be paid before the order is shipped. When credit terms are granted, terms of up to 120 days are provided, based on credit evaluations. Allowances, though not material, has been provided for uncollectible accounts. Management has evaluated the receivables and believes they are collectible based on the nature of the receivables, historical experience of credit losses, and all other currently available evidence. Discounts are recorded as a reduction of the transaction price. Revenue excludes any amounts collected on behalf of third parties, including sales taxes.

**Customer Advanced Payments**

Customer advanced payments consists of customer orders paid in advance of the delivery of the order. Customer advanced payments are classified as short-term as the typical order ships within approximately three weeks of placing the order. Customer advanced payments are recognized as revenue when the product is shipped to the customer and all other revenue recognition criteria have been met. Customer advanced payments as of December 31, 2021 and 2020 were $203,518 (included in discontinued operations) and $522,258 (included in discontinued operations), respectively. Customer advanced payments are included in current liabilities in the accompanying Consolidated Balance Sheets. The Company's ability to fulfill these orders have been impaired (see Note 1).

**Inventories**

The Company manufactures its own products, made to order, and when completed are shipped to the customer. The Company's inventories are valued by the first-in, first-out ("FIFO") cost method and are stated at the lower of cost or net realizable value. The Company had inventories of $0 (included in discontinued operations) and $168,470 (included in discontinued operations), respectively, consisting of mostly finished goods as of December 31, 2021 and 2020, respectively. See Note 1 for impairment discussion as of December 31, 2021.

**Property and Equipment**

Property and equipment are carried at cost and are depreciated on a straight-line basis over the estimated useful lives of the assets, generally five years. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. Fixed assets are examined for the possibility of decreases in value when events or changes in circumstances reflect the fact that their recorded value may not be recoverable.

**Intangible Assets** 

Intangible assets consist primarily of developed technology – website. Our intangible assets are being amortized on a straight-line basis over a period of five years.

**Impairment of Long-lived Assets** 

We periodically evaluate whether the carrying value of property, equipment and intangible assets has been impaired when circumstances indicate the carrying value of those assets may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the discounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying value is not recoverable, the impairment loss is measured as the excess of the asset's carrying value over its fair value. There are no impairments as of December 31, 2020. See Note 1 for impairment discussion as of December 31, 2021.

Our impairment analyses require management to apply judgment in estimating future cash flows as well as asset fair values, including forecasting useful lives of the assets, assessing the probability of different outcomes, and selecting the discount rate that reflects the risk inherent in future cash flows. If the carrying value is not recoverable, we assess the fair value of long-lived assets using commonly accepted techniques, and may use more than one method, including, but not limited to, recent third party comparable sales and discounted cash flow models. If actual results are not consistent with our assumptions and estimates, or our assumptions and estimates change due to new information, we may be exposed to an impairment charge in the future.

**Leases**

The Company determines whether an arrangement contains a lease at inception. A lease is a contract that provides the right to control an identified asset for a period of time in exchange for consideration. For identified leases, the Company determines whether it should be classified as an operating or finance lease. Operating leases are recorded in the balance sheet as: right-of-use asset ("ROU asset") and operating lease obligation. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date of the lease and measured based on the present value of lease payments over the lease term. The ROU asset also includes deferred rent liabilities. The Company's lease arrangements generally do not provide an implicit interest rate. As a result, in such situations the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company includes options to extend or terminate the lease when it is reasonably certain that it will exercise that option in the measurement of its ROU assets and liabilities. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has some lease agreements with lease and non-lease components, which are accounted for as a single lease component. See Note 1 for impairment discussion as of December 31, 2021.

 

**Fair Value of Financial Instruments** 

The provisions of accounting guidance, FASB Topic ASC 825 requires all entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of December 31, 2021, the fair value of cash, accounts receivable, accounts payable, accrued expenses, and notes payable approximated carrying value due to the short maturity of the instruments, quoted market prices or interest rates which fluctuate with market rates.

**Fair Value Measurements** 

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. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level 1 – Quoted prices in active markets for identical assets or liabilities.

· Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. There were no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a financial statement is prepared. There have been no transfers between levels.

The derivatives are evaluated under the hierarchy of ASC 480-10, ASC Paragraph 815-25-1 and ASC Subparagraph 815-10-15-74 addressing embedded derivatives. The fair value of the Level 3 financial instruments was performed internally by the Company using the Black Scholes valuation method.

The following table summarize the Company's fair value measurements by level at December 31, 2021 for the assets measured at fair value on a recurring basis:

 ****

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Derivative liability | $– | $– | $83404 |

---

 ****

The following table summarize the Company's fair value measurements by level at December 31, 2020 for the assets measured at fair value on a recurring basis:

 ****

---

| | | | |
|:---|:---|:---|:---|
|  | **Level 1** | **Level 2** | **Level 3** |
| Derivative liability | $– | $– | $124180 |

---

 ****

**Debt**

The Company issues debt that may have separate warrants, conversion features, or no equity-linked attributes.

<u>Debt with warrants</u> – When the Company issues debt with warrants, the Company treats the warrants as a debt discount, records them as a contra-liability against the debt, and amortizes the discount over the life of the underlying debt as amortization of debt discount expense in the Consolidated Statements of Operations. When the warrants require equity treatment under ASC 815, the offset to the contra-liability is recorded as additional paid in capital in our balance sheet. When the Company issues debt with warrants that require liability treatment under ASC 815, such as a clause requiring repricing, the warrants are considered to be a derivative that is recorded as a liability at fair value. If the initial value of the warrant derivative liability is higher than the fair value of the associated debt, the excess is recognized immediately as interest expense. The warrant derivative liability is adjusted to its fair value at the end of each reporting period, with the change being recorded as expense or gain to Other (income) expense in the Consolidated Statements of Operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense. The debt is treated as conventional debt.

<u>Convertible debt – derivative treatment</u> – When the Company issues debt with a conversion feature, we must first assess whether the conversion feature meets the requirements to be treated as a derivative, as follows: a) one or more underlyings, typically the price of our common stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. An embedded equity-linked component that meets the definition of a derivative does not have to be separated from the host instrument if the component qualifies for the scope exception for certain contracts involving an issuer's own equity. The scope exception applies if the contract is both a) indexed to its own stock; and b) classified in shareholders' equity in its statement of financial position.

If the conversion feature within convertible debt meets the requirements to be treated as a derivative, we estimate the fair value of the convertible debt derivative using the Black Scholes method upon the date of issuance. If the fair value of the convertible debt derivative is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the convertible debt derivative is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The convertible debt derivative is revalued at the end of each reporting period and any change in fair value is recorded as a gain or loss in the Consolidated Statement of Operations. The debt discount is amortized through interest expense over the life of the debt.

<u>Convertible debt – beneficial conversion feature</u> – If the conversion feature is not treated as a derivative, we assess whether it is a beneficial conversion feature ("BCF"). A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible and is recorded as additional paid in capital and as a debt discount in the Consolidated Balance Sheet. The Company amortizes the balance over the life of the underlying debt as amortization of debt discount expense in the statement of operations. If the debt is retired early, the associated debt discount is then recognized immediately as amortization of debt discount expense in the Consolidated Statement of Operations.

If the conversion feature does not qualify for either the derivative treatment or as a BCF, the convertible debt is treated as traditional debt.

**Loss per Share**

The computation of loss per share included in the Consolidated Statements of Operations, represents the net profit (loss) per share that would have been reported had the Company been subject to ASC 260, "Earnings Per Share" as a corporation for all periods presented.

Diluted earnings (loss) per share are computed on the basis of the weighted average number of common shares (including common stock subject to redemption) plus dilutive potential common shares outstanding for the reporting period. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
| Options to purchase shares of common stock |  |  |
| Series A convertible preferred stock | 500000000 | 500000000 |
| Series B convertible preferred stock | 5000000 | 5000000 |
| Series C convertible preferred stock | 10000 | 10000 |
| Total potentially dilutive shares | 505010000 | 505010000 |

---

**Commitments and Contingencies**

The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no known commitments or contingencies as of December 31, 2020. See Explanatory Note 1 for impairment discussion as of December 31, 2021.

**Discontinued Operations**

As a result of the October 14, 2021 Complaint filed against Defendants, the Company determined that Nature would be accounted as a discontinued operation pursuant to ASC 205-20 *Discontinued Operations*. In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyzed whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we considered whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results. The results of discontinued operations, as well as any gain or loss on the disposal, if applicable, are aggregated and separately presented in our consolidated statements of operations, net of income taxes. The historical financial position of discontinued operations are aggregated and separately presented in our accompanying consolidated balance sheets.

**Concentrations, Risks, and Uncertainties** 

<u>Business Risk</u>

Substantial business risks and uncertainties are inherent to an entity, including the potential risk of business failure.

The Company is headquartered and operates in the United States. To date, the Company has generated limited revenues from operations. There can be no assurance that the Company will be able to successfully continue to produce its products and failure to do so would have a material adverse effect on the Company's financial position, results of operations and cash flows. Also, the success of the Company's operations is subject to numerous contingencies, some of which are beyond management's control. These contingencies include general economic conditions, price of raw material, competition, and governmental and political conditions.

<u>Interest rate risk</u>

Financial assets and liabilities do not have material interest rate risk.

<u>Credit risk</u>

The Company is exposed to credit risk from its cash in banks and accounts receivable. The credit risk on cash in banks is limited because the counterparties are recognized financial institutions.

<u>Seasonality</u>

The business is not subject to seasonal fluctuations. However, as a result of the COVID 19 pandemic, in 2020, the Company entered into the sale of KN95 masks but had to dispose of them at a loss.

<u>Major Suppliers</u>

 ****

In producing our supplement products, we source our ingredients from our suppliers on an ongoing as-needed basis. the Company has not entered into any contracts that obligate us to purchase a minimum quantity or exclusively from any food service distributor. Our supplements are manufactured at our facilities in Hollywood, Florida.

The Company relies on a variety of suppliers. Should the relationship with an industry vendor be interrupted or discontinued, it is believed that alternate component suppliers could be identified to support the continued advancement of the Company.

**Recent Accounting Pronouncements**

In August 2018, the FASB issued ASU No. 2018-13, *Fair Value Measurements (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.* This standard removes, modifies, and adds certain disclosure requirements for fair value measurements. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU No. 2018-13 in the first quarter of fiscal 2020, coinciding with the standard's effective date, and the impact from this standard was immaterial.

In December 2019, the FASB issued ASU No. 2019-12, *Simplifying the Accounting for Income Taxes.* This standard simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740, *Income Taxes*, while also clarifying and amending existing guidance, including interim-period accounting for enacted changes in tax law. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company adopted ASU No. 2019-12 in the first quarter of fiscal 2021, coinciding with the standard's effective date, and the impact from this standard was immaterial.

At the beginning of the first quarter of 2021, the Company adopted the Financial Accounting Standards Board's Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"), which modifies the measurement of expected credit losses on certain financial instruments. The Company adopted ASU 2016-13 utilizing the modified retrospective transition method. The adoption of ASU 2016-13 did not have a material impact on the Company's condensed consolidated financial statements.

Other recently issued accounting updates are not expected to have a material impact on the Company's consolidated financial statements.

**NOTE 4 – PROPERTY AND EQUIPMENT** 

Property and equipment consisted of the following as of:

---

| | | | |
|:---|:---|:---|:---|
|  | Estimated Life | December 31, 2021 | December 31, 2020 |
| Office equipment and furniture | 5 years | $– | $21782 |
| Computer equipment | 3 years |  | 24727 |
| Machinery and equipment | 5 years |  | 17415 |
| Leasehold Improvements | Shorter of the estimated useful life or lease term |  | 114491 |
| Accumulated depreciation |  | – | (13477) |
|  |  | $– | $164938 |

---

Depreciation expense was $44,959 and $11,854 for the years ended December 31, 2021 and 2020, respectively, and is classified in general and administrative expenses in the Consolidated Statements of Operations. See Note 1 for impairment discussion as of December 31, 2021.

**NOTE 5 – INTANGIBLE ASSETS**

Intangible assets consisted of the following as of:

---

| | | | |
|:---|:---|:---|:---|
|  | Estimated Life | December 31, 2021 | December 31, 2020 |
| Website | 5 years | $– | $77550 |
| Accumulated amortization |  | – | (5695) |
|  |  | $– | $71855 |

---

---

| | |
|:---|:---|
| <br>***Year ending:*** | **Amortization**<br>**Expense** |
| 2022 | $– |
| Total amortization | $– |

---

Amortization expense was $7,755 and $5,695 for the years ended December 31, 2021 and 2020, respectively, and is classified in general and administrative expenses in the Consolidated Statements of Operations. See Note 1 for impairment discussion as of December 31, 2021.

**NOTE 6 – DEBT TO FORMER SHAREHOLDER – discontinued operations**

On March 1, 2020, the members of Nature entered into the Ownership Interest Purchase Agreement ("Ownership Agreement") whereby Yogev Shvo, a member of the Company, acquired the remaining 50% member ownership ("Seller") giving Mr. Shvo 100% member ownership of the Company. As consideration for the Ownership Agreement, the Seller received a Promissory Note of $750,000. The Promissory Note bears interest at 15% per annum and matures March 1, 2022, as amended on June 30, 2021. During the year ended December 31, 2021, the Company made repayments of $193,000 for a balance of $72,743 under Due to Related Parties in the accompanying Balance Sheet at December 31, 2021. The Note is secured with the assets of the Company pursuant to a security agreement dated March 1, 2020. In addition, the Company's CEO has personally guaranteed the Note.

The Company borrows funds from related parties for working capital purposes from time to time. The Company has recorded the principal balance due of $0 under Due to Related Parties in the accompanying Consolidated Balance Sheet at December 31, 2021. The Company received no advances and made repayments of $50,000 during the year ended December 31, 2021. Advances are non-interest bearing and due on demand. See Note 1 for impairment discussion as of December 31, 2021.

**NOTE 7 – LOANS PAYABLE**

**Economic Injury Disaster Loan – Discontinued operations**

On May 14, 2020, the Company executed the standard loan documents required for securing a loan (the "EIDL Loan") from the SBA under its Economic Injury Disaster Loan ("EIDL") assistance program in light of the impact of the COVID-19 pandemic on the Company's business.

Pursuant to that certain Loan Authorization and Agreement (the "SBA Loan Agreement"), the Company borrowed an aggregate principal amount of the EIDL Loan of $150,000, with proceeds to be used for working capital purposes. Interest accrues at the rate of 3.75% per annum and will accrue only on funds actually advanced from the date of each advance. Installment payments, including principal and interest, are due monthly beginning May 14, 2021 (twelve months from the date of the SBA Note) in the amount of $731. The balance of principal and interest is payable thirty years from the date of the SBA Note. In connection therewith, the Company also received a $7,000 grant, which does not have to be repaid. During the year ended December 31, 2020, $7,000 was recorded in Other Income in the Statements of Operations in April 2020. During the year ended December 31, 2021, the Company made repayments of $1,462 and has a balance of $149,490 under short term notes payable in the accompanying Balance Sheet at December 31, 2021.

In connection therewith, the Company executed (i) a note for the benefit of the SBA (the "SBA Note"), which contains customary events of default and (ii) a Security Agreement, granting the SBA a security interest in all tangible and intangible personal property of the Company, which also contains customary events of default (the "SBA Security Agreement"). As a result of the failure to repay amounts based on the repayment schedule, on December 21, 2021, the Company was notified that it was in default of the EIDL Loan and that the entire balance of principal and unpaid interest of $155,598 is due.

**Paycheck Protection Program Loan – Discontinued operations**

On May 6, 2020, the Company executed a note (the "PPP Note") for the benefit of TD Bank, N.A. (the "Lender") in the aggregate amount of $51,065 under the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The PPP is administered by the U.S. Small Business Administration (the "SBA"). The interest rate of the loan is 1.00% per annum and accrues on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days. Commencing seven months after the effective date of the PPP Note, the Company is required to pay the Lender equal monthly payments of principal and interest as required to fully amortize any unforgiven principal balance of the loan by the two-year anniversary of the effective date of the PPP Note. The PPP Note of $51,065 was repaid in February 2021.

**Paycheck Protection Program Loan Round 2 – Discontinued operations**

On April 2, 2021, the Company executed a note (the "PPP Note") for the benefit of First Federal Bank (the "Lender") in the aggregate amount of $200,000 under the Paycheck Protection Program ("PPP") of the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") through a second draw. The PPP is administered by the U.S. Small Business Administration (the "SBA"). The terms of the second draw have the same general loan terms as the first draw PPP loan. On December 31, 2021, the PPP Round 2 loan was forgiven and $200,000 was recorded as Other Income in the consolidated Statements of Operations.

Principal payments on loans payable are due as follows:

---

| | |
|:---|:---|
| ****<br>***Year ending:*** | <br>**EIDL** |
| &nbsp;&nbsp;&nbsp;2022 | $149490 |
| **Total liability** | $**149490** |

---

**NOTE 8 – LOAN PAYABLE TO SHAREHOLDER – discontinued operations**

The Company borrows funds from its shareholders from time to time for working capital purposes. During the year ended December 31, 2021, the Company had no additional borrowings and made repayments of $68,405 for a balance of $0 at December 31, 2021. Advances are non-interest bearing and due on demand.

**NOTE 9 – CONVERTIBLE NOTES PAYABLE**

**Convertible Note Payable**

*Short Term*

***<u>$85,766 Note</u>***

On April 22, 2019; The Company executed a convertible promissory note with GHS Investments, LLC ("GHS Note"). The GHS Note carries a principal balance of $57,000 together with an interest rate of eight (8%) per annum and a maturity date of February 21, 2020. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share) in accordance with the terms of the note agreement shall be made in lawful money of the United States of America. Any amount of principal or interest on this GHS Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum from the due date thereof until the same is paid. As of December 31, 2019, the principal balance outstanding was $57,000.

The holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this note, to convert all or any part of the outstanding and unpaid principal amount into Common Stock. The conversion shall equal sixty-five percent (65%) of the lowest trading prices for the Common Stock during the twenty (20) day trading period ending on the latest complete trading day prior to the conversion date, representing a discount rate of thirty-five percent (35%).

On March 24, 2020, the note obligation of $120,766 held by Emry was partially sold $35,000 of the face amount to the preferred shareholder Saveene. On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares into series B and 10,000 shares of series C shares. The face amount of the Company note obligation post the aforementioned conversions and purchases is $85,766 as of December 31, 2021.

The Company accounts for an embedded conversion feature as a derivative under ASC 815-10-15-83 and valued separately from the note at fair value. The embedded conversion feature of the note is revalued at each subsequent reporting date at fair value and any changes in fair value will result in a gain or loss in those periods. The Company recorded a derivative liability of $82,257, recorded a change in derivative liability of $40,776 and $21,445 during the years ended December 31, 2021 and 2020, respectively.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021, the Convertible Notes Payable were in default. The Company is currently in discussions to restructure the terms of the note and recorded default interest of $22,450 and $86,566 during the years ended December 31, 2021 and 2020, respectively.

***<u>$220,000 Note</u>***

On September 21, 2020, the Company issued a convertible promissory note in the principal amount of $220,000. The convertible promissory note bears interest at 8% per annum and is due and payable in twenty-four (24) months. The holder of this note has the right, at the holder's option, upon the consummation of a sale of all or substantially all of the equity interest in the Company or private placement transaction of the Company's equity securities or securities convertible into equity securities, exclusive of the conversion of this note or any similar notes, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.05 per share. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does have a BCF. A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the Balance Sheet. As such, the proceeds of the notes were allocated, based on fair values, as $220,000 to the debt discount. The debt discount is accreted over the term of the convertible notes to interest expense in the accompanying condensed consolidated Statements of Operations.

The principal balance due at December 31, 2021 is $220,000 and is presented as a short-term liability in the balance sheet.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021, the Convertible Notes Payable were in default. On July 19, 2021, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the Notes related to the Company's failure to timely file its Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021. In exchange for the Agreement, the Company agreed to pay a one-time interest charge of $11,680 in the year ended December 31, 2021.

***<u>$410,000 Note (previously $600,000)</u>***

On October 9 and October 16, 2020, the Company issued a convertible promissory note in the principal amount totaling $600,000. The convertible promissory note bears interest at 8% per annum and is due and payable in twenty-four (24) months. The holder of this note has the right, at the holder's option, upon the consummation of a sale of all or substantially all of the equity interest in the Company or private placement transaction of the Company's equity securities or securities convertible into equity securities, exclusive of the conversion of this note or any similar notes, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.05 per share. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does have a BCF. A BCF exists if the conversion price of the convertible debt instrument is less than the stock price on the commitment date. This typically occurs when the conversion price is less than the fair value of the stock on the date the instrument was issued. The value of a BCF is equal to the intrinsic value of the feature, the difference between the conversion price and the common stock into which it is convertible, and is recorded as additional paid in capital and as a debt discount in the Balance Sheet. As such, the proceeds of the notes were allocated, based on fair values, as $600,000 to the debt discount. The debt discount is accreted over the term of the convertible notes to interest expense in the accompanying condensed consolidated Statements of Operations.

On December 6, 2021, the holder of the note converted $190,000 of the Note into 3,800,000 shares of the Company's common stock. The principal balance of $410,000 is due October 16, 2022 and is presented as a short term liability in the balance sheet.

As a result of the failure to timely file our Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021, the Convertible Notes Payable were in default. On July 15, 2021, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the Notes related to the Company's failure to timely file its Form 10-Q for the three-month period ended September 30, 2020, the Form 10-K for the year ended December 31, 2020, and the three-month period ended March 31, 2021. Therefore, no default interest has been accrued in these financial statements.

**Promissory Debenture**

On February 15, 2020 and on May 14, 2020, the Company entered into Promissory Agreement and Convertible Debentures ("Promissory Debentures") with Emry for a principal sum of $70,000 (which was paid in two tranches: $50,000, paid on February 15, 2020, and $20,000, paid in April 2020) and $48,000 (which was paid in three tranches: $23,000, paid on May 14, 2020, $15,000, paid on May 22, 2020, and $10,000, paid on June 8, 2020), respectively. The Promissory Debentures bear interest, both before and after default, at 15% per month, calculated and compounded monthly. At the election of the holder, at any time during the period between the date of issuance and the one year anniversary of the Promissory Debentures, the Promissory Debentures are convertible into shares of the Company's common stock at a conversion price of $0.001 per share. In addition, the Promissory Debentures provide for an interest equal to 15% of TNRG annual sales, payable on the 2<sup>nd</sup> day following the date of issuance of the Company's audited financial statements.

On June 24, 2020, Emry, holder of (i) Promissory Debentures in principal amount of $70,000 dated February 15, 2020, and (ii) that certain convertible promissory note in principal amount of $85,766 dated April 22, 2019, sold 50% of each (Promissory Debentures and convertible promissory note), including accrued and unpaid interest, fees and penalties, in separate transactions to third party companies, SP11 Capital Investments and E.L.S.R. CORP, Florida companies, such that SP11 Capital Investments and E.L.S.R. CORP each hold 50% of each respective debt instrument.

On October 4, 2020, SP11 converted $35,000 of its Promissory Debentures at $0.01 per share into 3,500,000 shares of the Company's common stock.

On November 22, 2021, the loan of $48,000 and accrued and unpaid interest of $573,798 totaling $621,798 was forgiven by EMRY and recorded as a gain on extinguishment of debt in Other Expense in the consolidated Statements of Operations.

As a result of the failure to timely file our Form 10-Q for the three month period ended September 30, 2020 and the Form 10-K for the year ended December 31, 2020, the Promissory Debentures were in default. On July 15, 2021, the Company entered into a Waiver Agreement (the "Agreement") waiving the default provisions listed in the $48,000 note related to the Company's failure to timely file its Form 10-Q for the three month period ended September 30, 2020 and the Form 10-K for the year ended December 31, 2020. The $35,000 note provides for no default penalties.

**NOTE 10 – STOCKHOLDERS' EQUITY**

**Common Stock**

The Company has been authorized to issue 900,000,000 shares of common stock, $0.001 par value. Each share of issued and outstanding common stock shall entitle the holder thereof to fully participate in all shareholder meetings, to cast one vote on each matter with respect to which shareholders have the right to vote, and to share ratably in all dividends and other distributions declared and paid with respect to common stock, as well as in the net assets of the corporation upon liquidation or dissolution.

On May 14, 2019, the Board of Directors of the Company approved Articles of Amendment to the Company's Articles of Incorporation that provided for a 1 for 20 reverse stock-split of the Company's Common Stock. The Company's Articles of Amendment were filed with the Secretary of State of the State of Florida on May 17, 2019. All share and per share amounts contained in this Annual Report on Form 10-K and the accompanying Financial Statements have been adjusted to reflect the Reverse Stock Split for all prior periods presented.

On August 14, 2020, the Company issued 60,000,000 common shares in conjunction with acquisition (see Note 1).

On October 4, 2020, SP11 converted $35,000 of its Promissory Debentures at $0.01 per share into 3,500,000 shares of the Company's common stock.

On October 13, 2020, the Company issued 195,480 common shares, valued at $33,232 (based on the Company's stock price on the date of issuance), to GHS Investments in settlement of services provided to the Company.

On December 6, 2021, the holder of the note converted $190,000 of the Note into 3,800,000 shares of the Company's common stock for a balance due of $410,000 at December 31, 2021 on the Note.

**Preferred Stock**

The Company has been authorized to issue 50,000,000 shares of $0.001 par value Preferred Stock. The Board of Directors is expressly vested with the authority to divide any or all of the Preferred Stock into series and to fix and determine the relative rights and preferences of the shares of each series so established, within certain guidelines established in the Articles of Incorporation.

Series A: The certificate of designation for the Preferred A Stock provides that as a class it possesses a number of votes equal to fifteen (15) votes per share and may be converted into ten (10) $0.001 par value common shares.

On October 10, 2013, the Company issued fifty million (50,000,000) shares of our Series "A" Convertible Preferred Stock to Hadronic, a Florida corporation maintaining its principal place of business at 35246 US Highway 19 North, Suite #215, Palm Harbor, Florida 34684. Our previous Directors, Dr. Ruggero M. Santilli and Mrs. Carla Santilli each own fifty percent of the equity in Hadronic. The Series "A" Convertible Preferred Stock has 15 votes per share and is convertible into 10 shares of our common stock at the election of the shareholder. Shares were valued at the par value of the common stock equivalents, $500,000.

On January 9, 2020, Mina Mar (the "Purchaser") acquired 50,000,000 shares of Series A Convertible Preferred Stock of the Company from Hadronic. At completion of the stock purchase the Purchaser owns approximately 98.6% of the fully diluted outstanding equity securities of the Company and approximately 99% of the voting rights for the outstanding equity securities. The purchase price of $94,766 for the Preferred Stock was paid by the assumption of a Company note obligation of $85,766 to Emry, with the balance paid in cash. The consideration for the purchase was provided to the Purchaser from the private funds of the principal of the Purchaser. The purchase of the Preferred Stock was the result of a privately negotiated transaction and consummation of the purchase resulted in a change of control of the Company.

On March 24, 2020, Saveene ("Saveene") acquired 50,000,000 shares of Series A Convertible Preferred Stock of the Company, from Mina Mar. At the completion of the stock purchase, Saveene owns approximately 98.6% of the fully diluted outstanding equity securities of the Company and approximately 99% of the voting rights for the outstanding equity securities. The purchase price of $500,000 for the Preferred Stock was paid in cash. The consideration for the purchase was provided to the Purchaser from the private funds of the principal of Saveene. The purchase of the Preferred Stock was the result of a privately negotiated transaction and consummation of the purchase resulted in a change of control of the Company.

On March 24, 2020, the Company held a meeting and voted to create two separate classes of preferred shares. Class "B" and class "C' preferred shares. One class of shares B would be used to offer securitization for the watercraft while class C preferred shares would be used in conjunction with the securitization of air crafts.

Series B Convertible Preferred Stock was authorized for 10,000,000 shares of the "Company. Each share of Preferred Stock is entitled to one thousand (1,000) votes per share and at the election of the holder converts into one thousand (1,000) shares of Company common stock, so at the completion of the stock purchase, Saveene owns approximately 100% of the fully diluted outstanding equity securities of the Company and approximately 100% of the voting rights for the outstanding equity securities. The consideration for the purchase was provided to Saveene from the private funds of the principal of Saveene.

Series C Non-Convertible Preferred Stock was authorized for 10,000,000 shares of the Company. Each share of Preferred Stock is entitled to one thousand (1,000) votes per share and at the election of the holder. The series C is Non-Convertible Preferred Stock. Saveene owns approximately 100% of the fully diluted outstanding equity securities of the Company and approximately 100% of the voting rights for the outstanding equity securities. The consideration for the purchase was provided to Saveene from the private funds of the principal of Saveene.

On March 24, 2020, the note obligation of $120,766 held by Emry was partially sold $35,000 of the face amount to the preferred shareholder Saveene. On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares of series B and 10,000 shares of series C shares. The face amount of the Company note obligation post the aforementioned conversions and purchases is $85,766.

On March 24, 2020, Saveene converted the $35,000 purchase into 5,000 shares of series B and 10,000 shares of series C shares. As a result, the Series B and C voting ownership approximates 57% and therefore, the Company has a change in ownership resulting in the recognition of a gain or loss on the sale of the interest sold and on the revaluation of any retained noncontrolling investment in accordance with ASC 810-10-40-5.

The Company's stock price on March 24, 2020 was $0.03, giving the Company a value of $0.03 per share times 11,244,923 shares outstanding or $337,348. The transaction was booked to loss on extinguishment of change in control and with the off-setting entry to additional paid-in capital due to it being a related party transaction.

On July 1, 2020, Yogev Shvo, a third party individual and principal shareholder of Nature personally acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of TNRG from Saveene Corporation, a Florida corporation (the "Seller") (The "Purchase"). The purchase price of $250,000 for the Preferred Stock was paid in cash and was provided from the individual private funds of Purchaser.

The Preferred Stock acquired by the Purchaser consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. 50,000,000 shares of Series A Convertible Preferred Stock wherein each share is entitled to fifteen (15) votes and converts into ten (10) shares of the Company's common stock.

2. 5,000 shares of Series B Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and converts into one thousand (1,000) shares of the Company's common stock.

3. 10,000 shares of Series C Non-Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and is non-convertible into shares of the Company's common stock.

**NOTE 11 – OPERATING LEASES – DISCONTINUED OPERATIONS**

The Company adopted ASC 842 as of December 31, 2019. The Company has an operating lease for the Company's warehouse and office and accounts for this lease in accordance with ASC 842. Adoption of the standard resulted in the initial recognition of operating lease ROU asset of $344,203 and operating lease liability of $344,203 as of December 31, 2019.

Operating lease right-of-use ("ROU") assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Generally, the implicit rate of interest in arrangements is not readily determinable and the Company utilizes its incremental borrowing rate in determining the present value of lease payments. The Company's incremental borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives. Our variable lease payments primarily consist of maintenance and other operating expenses from our real estate leases. Variable lease payments are excluded from the ROU assets and lease liabilities and are recognized in the period in which the obligation for those payments is incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components. We have elected to account for these lease and non-lease components as a single lease component. We are also electing not to apply the recognition requirements to short-term leases of twelve months or less and instead will recognize lease payments as expense on a straight-line basis over the lease term.

In December 2021, the Company confirmed with the landlord that as of that time and on a going forward basis, the Company has no rental obligation, or past due rental obligation or any other related liability on its office/ warehouse space located at 3017 Greene Street, Hollywood, Florida.

On October 22, 2021, the Company entered into a lease termination agreement ("Lease Termination") with Canal Park Office to terminate the Company's North Miami Beach, Florida office space. The Termination Agreement allows Canal Park Office to retain the security deposit of $24,799 and to be paid $21,000. The Company was released from any other obligations.

See Note 1 for impairment discussion as of December 31, 2021.

The components of lease expense and supplemental cash flow information related to leases for the period are as follows:

---

| | | |
|:---|:---|:---|
| In accordance with ASC 842, the components of lease expense were as follows: | In accordance with ASC 842, the components of lease expense were as follows: |  |
|  | **Years ended December 31,** | **Years ended December 31,** |
|  | ***2021*** | ***2020*** |
| Operating lease expense | $102280 | $182483 |
| Short term lease cost | $4430 | $2472 |
| Total lease expense | $102280 | $184954 |

---

---

| | | | |
|:---|:---|:---|:---|
| In accordance with ASC 842, other information related to leases was as follows: |  |  |  |
| ***Years ended December 31,*** | ***2021*** | ***2020*** | ***2020*** |
| Operating cash flows from operating leases | $102280 | $| 177995 |
| &nbsp;&nbsp;&nbsp;Cash paid for amounts included in the measurement of lease liabilities | $102280 | $| 177995 |
| Weighted-average remaining lease term—operating leases |  |  | 2.4 years |
| Weighted-average discount rate—operating leases |  |  | 8% |

---

In accordance with ASC 842, maturities of operating lease liabilities as of December 31, 2021 were as follows:

---

| | |
|:---|:---|
| <br>***Year ending:*** | **Operating**<br>**Lease** |
| &nbsp;&nbsp;&nbsp;2022 | $– |
| Total undiscounted cash flows | $– |
| Reconciliation of lease liabilities: |  |
| &nbsp;&nbsp;&nbsp;Weighted-average remaining lease terms |  |
| &nbsp;&nbsp;&nbsp;Weighted-average discount rate | – |
| Present values | $– |
| &nbsp;&nbsp;&nbsp;Lease liabilities—current |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities—long-term | – |
| Lease liabilities—total | – |
| &nbsp;&nbsp;&nbsp;Difference between undiscounted and discounted cash flows | $– |

---

Operating lease cost was $102,280 and $182,502 for the years ended December 31, 2021 and 2020, respectively.

**NOTE 12 – Related Party Transactions** 

Other than as set forth below, and as disclosed in Notes 6, 8, and 10, there have not been any transaction entered into or been a participant in which a related person had or will have a direct or indirect material interest.

On July 16, 2020, Yogev Shvo, an individual and the member of Nature, entered into a joint venture, Flower Top Wellness LLC, with YCA Group LLC to create four (4) lines of brand name CBD products. The joint venture was terminated on November 11, 2020. The joint venture purchased a total of approximately $150,000 of the Company's products.

**NOTE 13 – INCOME TAXES**

As a result of the Company's Interest Purchase Agreement, the Company converted to a corporation ("Conversion"). Beginning on August 14, 2020, the Company's results of operations are taxed as a C Corporation. Prior to the Conversion, the Company's operations were taxed as a limited liability company, whereby the Company elected to be taxed as a partnership and the income or loss was required to be reported by each respective member on their separate income tax returns. Therefore, no provision for income taxes has been provided in the accompanying consolidated financial statements for periods prior to August 14, 2020.

At December 31, 2021, net operating loss carry forwards for Federal and state income tax purposes totaling approximately $495,000 available to reduce future income which, if not utilized, will begin to expire in the year 2040. There is no income tax affect due to the recognition of a full valuation allowance on the expected tax benefits of future loss carry forwards based on uncertainty surrounding realization of such assets.

A reconciliation of the statutory income tax rates and the effective tax rate is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2021** | **2020** |
| Statutory U.S. federal rate | 21.0% | 21.0% |
| State income tax, net of federal benefit | 3.5% | 3.5% |
| Permanent differences | 0.0% | 0.0% |
| Valuation allowance | (24.5)% | (24.5)% |
| Provision for income taxes | 0.0% | 0.0% |

---

The tax effects of the temporary differences and carry forwards that give rise to deferred tax assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2021** | **2020** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carry forwards | $495455 | $323940 |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  |
| Valuation allowance | (495455) | (323940) |
| Deferred tax asset, net | $– | $– |

---

Major tax jurisdictions are the United States and Florida. All of the tax years will remain open three and four years for examination by the Federal and state tax authorities, respectively, from the date of utilization of the net operating loss. There are no tax audits pending.

**NOTE 14 – EARNINGS PER SHARE**

FASB ASC Topic 260, *Earnings Per Share*, requires a reconciliation of the numerator and denominator of the basic and diluted earnings (loss) per share ("EPS") computations.

Basic earnings (loss) per share are computed by dividing net earnings available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. In periods where losses are reported, the weighted-average number of common stock outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

Basic and diluted earnings (loss) per share are the same since net losses for all periods presented and including the additional potential common shares would have an anti-dilutive effect.

The following potentially dilutive securities were excluded from the calculation of diluted net loss per share because the effects were anti-dilutive based on the application of the treasury stock method and because the Company incurred net losses during the period:

---

| | | |
|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2021** | **2020** |
| Series A convertible preferred stock | 500000000 | 500000000 |
| Series B convertible preferred stock | 5000000 | 5000000 |
| Series C convertible preferred stock | 10000 | 10000 |
| Total potentially dilutive shares | 505010000 | 505010000 |

---

The following table sets forth the computation of basic and diluted net income per share:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, | Years Ended December 31, |
|  | 2021 | 2020 |
| Loss from continuing operations | $(1136288) | $(505973) |
| Discontinued operations | (236262) | (44629) |
| Net loss attributable to the common stockholders | $(1372550) | $(550602) |
| Basic weighted average outstanding shares of common stock | 76735271 | 35787669 |
| Dilutive effect of options and warrants | – | – |
| Diluted weighted average common stock and common stock equivalents | 76735271 | 35787669 |
| Loss per share: |  |  |
| Net loss per share from continuing operations, basic and diluted | $(0.02) | $(0.02) |
| Net loss per share from discontinued operations, basic and diluted | (0.00) | (0.00) |
| Net loss per share total, basic and diluted | $(0.02) | $(0.02) |

---

**NOTE 15 – COMMITMENTS AND CONTINGENCIES**

**Legal**

From time to time, various lawsuits and legal proceedings may arise in the ordinary course of business. However, litigation is subject to inherent uncertainties and an adverse result in these, or other matters may arise from time to time that may harm our business. We are currently not aware of any legal proceedings or claims that it believes will have a material adverse effect on its business, financial condition or operating results except:

***First Capital Venture***

On November 3, 2020, First Capital Venture Co., a subsidiary of the client, d/b/a Diamond CBD, filed a civil complaint against Thunder Energies Corporation (the "Defendants"), in the pending 17th Judicial Circuit Court in and for Broward County, Florida, (the "Florida Court"), Case Number CACE-20-019111 (the "Complaint").

On January 26, 2021 Plaintiffs were erroneously granted an Order of Default to which the Defendants immediately pointed out to the Court and on February 23, 2021 an Order Vacating the Default was granted in favor of the Defendants. The Plaintiff knew, or should have known, that the Order of Default was not valid but they proceeded on February 9, 2021 to publish false and misleading press releases.

Thunder Energies Corporation is proceeding through discovery and is of the belief the suit will be decided in their favor. A pending Motion to Dismiss is before the Court. Plaintiff's Complaint is based on a claim for tortious interference and misappropriation of trade secrets. Neither claim is supported by the Complaint.

Thunder Energies Corporation has issued a cease and desist to the Plaintiff and is considering a counter claim concerning the false information and disclosures made by the Plaintiff that may have affected the Company's business and shareholders.

The Company is unable to predict the financial outcome of this matter at this time, and any views formed as to the viability of these claims or the financial exposure which could result may change from time to time as the matter proceeds through its course. Accordingly, adjustments, if any, that might result from the resolution of this matter have not been reflected in the consolidated financial statements. The Company is confident to obtain a summary judgement in their favor on the trade secret allegations and hence has not provided for any financial exposure. However, no assurance can be made that this matter together with the potential for reputational harm, will not result in a material financial exposure, which could have a material adverse effect on the Company's financial condition, results of operations, or cash flows.

***Rocket Systems – Discontinued Operations***

On October 13, 2021, Rocket Systems, Inc. ("Plaintiff") filed a complaint against Nature Consulting LLC ("Nature") in the pending 17th Judicial Circuit Court in and for Broward County, Florida, (the "Florida Court"), Case Number CACE-21-018840 (the "Complaint").

The complaint alleges that the Plaintiff paid Nature a deposit of $50,000 for the delivery of Nature products. According to the Complaint, Nature delivered $6,188 of the product but failed to deliver the remaining $43,812 of product.

Plaintiff has demanded that the remainder of the product order be canceled and the refund of $43,812. In addition, the Plaintiff is seeking prejudgment interest and costs of this action.

The Company is unable to predict the financial outcome of this matter at this time, and any views formed as to the viability of these claims or the financial exposure which could result may change from time to time as the matter proceeds through its course. Accordingly, adjustments, if any, that might result from the resolution of this matter have not been reflected in the consolidated financial statements except that Nature has recorded a reserve of $43,812 as of December 31, 2021. However, no assurance can be made that this matter together with the potential for reputational harm, will not result in a material financial exposure, which could have a material adverse effect on the Company's financial condition, results of operations, or cash flows.

***Home Remedies CBD – Discontinued Operations***

On November 23, 2021, Home Remedies CBD, LLC ("Plaintiff") filed a complaint against TheHemplug LLC ("THP") in the pending 3rd Judicial Circuit Court in and for Wayne County, Michigan, (the "Michigan Court"), Case Number CACE-21-016306-CB (the "Complaint").

The complaint alleges that the Plaintiff paid Nature a deposit of $60,030 for the delivery of THP products. According to the Complaint, Nature delivered $27,600 of the product but failed to deliver the remaining $32,430 of product. In addition, Plaintiff returned $4,575 of product to correct the labeling and that THP failed to correct the labeling and return the product to Plaintiff.

Plaintiff has demanded that the remainder of the product order be canceled and a refund of $37,005. In addition, the Plaintiff is seeking prejudgment interest and costs of this action.

The Company is unable to predict the financial outcome of this matter at this time, and any views formed as to the viability of these claims or the financial exposure which could result may change from time to time as the matter proceeds through its course. Accordingly, adjustments, if any, that might result from the resolution of this matter have not been reflected in the consolidated financial statements except that THP has recorded a reserve of $15,000 as of December 31, 2021. The Company is confident to obtain a summary judgement in their favor on the trade secret allegations and hence has not provided for any financial exposure. However, no assurance can be made that this matter together with the potential for reputational harm, will not result in a material financial exposure, which could have a material adverse effect on the Company's financial condition, results of operations, or cash flows.

On July 19, 2022, THP agreed to pay Plaintiff a settlement of $15,000.

**Guarantees *– Discontinued Operations***

The Company's Promissory Note is collateralized by substantially all of the Company's assets and is personally guaranteed by the Company's former CEO, Mr. Yogev Shvo.

**Employment Contracts**

The Company has no employment contracts with its key employees.

**NOTE 16 – DISCONTINUED OPERATIONS** 

As a result of the October 14, 2021 Complaint filed against Defendants, the Company determined that Nature would be accounted as a discontinued operation pursuant to ASC 205-20 *Discontinued Operations*. In determining whether a group of assets that is disposed (or to be disposed) should be presented as a discontinued operation, we analyzed whether the group of assets being disposed represents a component of the Company; that is, whether it had historic operations and cash flows that were clearly distinguished, both operationally and for financial reporting purposes. In addition, we considered whether the disposal represents a strategic shift that has or will have a major effect on our operations and financial results.

The following table reconciles the loss realized from the disposal of discontinued operations:

---

| | |
|:---|:---|
|  | **December 31,**<br>**2021** |
| Accounts payable | $386129 |
| Due to related party | 72743 |
| Customer advance payments | 203518 |
| Short term notes payable | 149490 |
| Accrued interest | 89120 |
| Gain on disposal of discontinued operation | $901000 |

---

Discontinued operations for the years ended December 31, 2021 and 2020 consist of the operations from Nature.

The following tables lists the assets and liabilities of discontinued operations as of December 31, 2021 and 2020 and the discontinued operations for Nature for years ended December 31, 2021 and 2020:

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2021 | December 31,<br>2020 |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash | $– | $97503 |
| Accounts receivable |  | 68403 |
| Inventories, net |  | 168470 |
| Prepaid expenses | – | 202050 |
| Total current assets of discontinued operation |  | 536426 |
| Property and equipment, net |  | 164938 |
| Intangibles, net |  | 71855 |
| Operating lease right-of-use assets, net |  | 461695 |
| Other assets | – | 24799 |
| Total non-current assets of discontinued operations | – | 723287 |
| TOTAL ASSETS OF DISCONTINUED OPERATION | $– | $1259713 |
| LIABILITIES |  |  |
| Current liabilities: |  |  |
| Accounts payable | $386129 | $120477 |
| Due to related party | 72743 | 485487 |
| Loan payable to shareholder |  | 68405 |
| Customer advance payments | 203518 | 522258 |
| Short term notes payable | 149490 |  |
| Current portion of operating lease liabilities |  | 207762 |
| Accrued interest | 89120 |  |
| Other current liabilities | – | 26997 |
| Total current liabilities of discontinued operation | 901000 | 1431386 |
| Long-term liabilities: |  |  |
| Long term notes payable | $– | $201035 |
| Operating lease liabilities net of current portion | – | 260931 |
| Total long-term liabilities of discontinued operation | – | 461966 |
| TOTAL LIABILITIES OF DISCONTINUED OPERATION | $901000 | $1893352 |

---

---

| | | |
|:---|:---|:---|
|  | For the Years Ended December 31, | For the Years Ended December 31, |
|  | 2021 | 2020 |
| Revenue | $3750519 | $7674306 |
| Cost of sales | 1574770 | 4507865 |
| Gross profit | 2175749 | 3166441 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and marketing expenses | 392171 | 866779 |
| &nbsp;&nbsp;&nbsp;General and administrative | 2005117 | 2297497 |
| Total operating expenses | 2397288 | 3164276 |
| Profit from operations | (221539) | 2165 |
| Other expense (income): |  |  |
| &nbsp;&nbsp;&nbsp;Impairment of assets | 195347 |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 19672 | 60156 |
| &nbsp;&nbsp;&nbsp;Other expense |  | 5350 |
| &nbsp;&nbsp;&nbsp;Other income | (200296) | (18712) |
| Total other expense | 14723 | 46794 |
| Loss before income taxes | (236262) | (44629) |
| Income taxes | – | – |
| Net loss of discontinued operations | $(236262) | $(44629) |

---

**NOTE 17 – SUBSEQUENT EVENTS**

**Acquisition of TNRG Preferred Stock**

On February 28, 2022, Mr. Ricardo Haynes, Mr. Eric Collins, Mr. Lance Lehr, Ms. Tori White, and Mr. Donald Keer, each as an individual and principal shareholders of Bear Village, Inc., a Wyoming corporation, (the "Purchaser") personally acquired 100% of the issued and outstanding shares of preferred stock (the "Preferred Stock") of Thunder Energies Corporation, a Florida corporation, (the "Company" or the "Registrant") from Mr. Yogev Shvo, an individual domiciled in Florida (the "Seller") (the "Purchase"). The consideration for the purchase was provided to the Purchaser from the individual's private funds.

The Preferred Stock acquired by the Purchaser consisted of:

1. 50,000,000 shares of Series A Convertible Preferred Stock wherein each share is entitled to fifteen (15) votes and converts into ten (10) shares of the Company's common stock.

2. 5,000 shares of Series B Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and converts into one thousand (1,000) shares of the Company's common stock.

3. 10,000 shares of Series C Non-Convertible Preferred Stock wherein each share is entitled to one thousand (1,000) votes and is non-convertible into shares of the Company's common stock.

As a result of the Purchase, the Purchaser owns approximately 100% of the fully diluted outstanding equity securities of the Company and approximately 100% of the voting rights for the outstanding equity securities and therefore, the Company has a change in ownership resulting in the recognition of a gain or loss on the sale of the interest sold and a revaluation of any noncontrolling investment in accordance with ASC 810-10-40-5.

As part of the Purchase Mr. Shvo submitted 55,000,000 shares of restricted common stock to the Company's treasury for cancellation.

The purchase price of $50,000 for the Preferred Stock was paid in cash. The consideration for the purchase was provided to the Seller from the Purchaser. The Purchase of the Preferred Stock was the result of a privately negotiated transaction which consummation resulted in a change of control of the Registrant.

1) Purchaser acquired TNRG subject to the following existing debt and obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. $35,000 Convertible Note held by ELSR plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. $85,766 Convertible Note held by ELSR plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. $220,000 Convertible Note held by 109 Canon plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. $410,000 Convertible Note held by Moshe Zucker plus accrued interest of which $190,000 has recently been
converted into 3,800,000 shares of restricted common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Auditor Invoice estimated at $30,000 past due and $37,000 for completion of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Accountant Invoice estimated at $42,500 and approximately $4,500 for completion of 2021

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. No other debt or liability is being assumed by Purchaser

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. Purchaser specifically assumes no liability regarding any dispute between Orel Ben Simon and the Seller.
Seller shall indemnify Company as required in the body of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Company may be subject to potential liability and legal fees and associated costs regarding the FCV Matter
if in excess of the Seller indemnification provisions set forth in Section 11 of the Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j. Purchaser on behalf of the Company is responsible for assuring the Company's timely payment of all
Company federal and state and any related tax obligations for fiscal year 2021 with the exception of taxes due relating to income, sales,
license, business or any other taxes associated with Nature and HP

2) The transfer to Seller of all of TNRG's security ownership interest in each of Nature and HP to Seller shall include the following existing Nature debt and related matters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. EIDL Loan ($149,490 plus $9,290 accrued interest)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. $72,743 note due to Orel Ben Simon plus accrued interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All cases in action and potential legal liabilities concerning current disputes with Nature, HP, Ben
Simon, Seller and any other parties.

As a result of the Purchase and change of control of the Registrant, the existing officers and directors of the Company, Mr. Adam Levy, Mr. Bruce W.D. Barren, Ms. Solange Bar and Mr. Yogev Shvo (Chairman) have either resigned or been voted out of their positions.

Under the terms of the stock purchase agreement the new controlling shareholder was permitted to elect representatives to serve on the Board of Directors to fill the seat(s) vacated by prior directors. Mr. Ricardo Haynes became the sole Director, CEO and Chairman of the Board of the Registrant, and the acting sole officer of the Company.

**Employment Agreements**

On March 1, 2022, as amended on October 1, 2022, Mr. Ricardo Haynes, the Company's Chief Executive Officer and President ("CEO") entered into an Employment Agreement with the Company. The Employment agreement terminates September 30, 2027 and automatically renews on a year-to-year basis unless terminated by either party on six months notice. In addition, Mr. Haynes is entitled to employee reimbursements totaling $820 per month, entitled to six (6) weeks paid vacation each year, provides for medical and dental insurance, and entitled to stock options upon the implementation of a Company employee option plan. Under this Employment agreement, the CEO will be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· $5,700 for services performed from March 1, 2022 – June 30, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· Lump Sum payment of $21,299.00 for services from July 1, 2022 – December 31, 2022

&nbsp;&nbsp;&nbsp;&nbsp;· 25,000,000 shares of TNRG common stock in the Company which vest immediately.

&nbsp;&nbsp;&nbsp;&nbsp;· 7,500,000 newly issued Preferred A shares of TNRG stock CUSIP (88604Y209) Cert No. 400002

&nbsp;&nbsp;&nbsp;&nbsp;· 750 newly issued Preferred B shares of TNRG stock CUSIP (88604Y209), Cert. No. 500002

&nbsp;&nbsp;&nbsp;&nbsp;· 1,500 newly issued Preferred C shares of TNRG stock CUSIP (8860Y209), Cert No. 600002

&nbsp;&nbsp;&nbsp;&nbsp;· $7,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· 1,500 RoRa Coins in possession of the Company.

On October 1, 2022, the Company entered into Employment Agreements with individuals for positions in the Company. Each of the Employment agreements shall begin October 1, 2022 and terminate September 30, 2027 and automatically renews on a year-to-year basis unless terminated by either party on six months notice. In addition, each employee is entitled to employee reimbursements totaling $820 per month, entitled to six (6) weeks paid vacation each year, provides for medical and dental insurance, and entitled to stock options upon the implementation of a Company employee option plan. Under these Employment agreements, each employee will be entitled to the following:

&nbsp;&nbsp;&nbsp;&nbsp;· Ms. Tori White, Director real Estate Development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $24,000 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 4,800 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Eric Collins, Chairman and Chief Operations Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $12,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 2,500 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Donald Keer, Corporate Counsel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $3,500 loan forgiveness cancelling debt used for the acquisition of shares in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 700 RoRa Coins in possession of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;· Mr. Lance Lehr, Chief Operating Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $2,500 loan forgiveness cancelling debt used for the acquisition of
shares in the Company.

o 500 RoRa Coins in possession of the Company.

*Consulting Agreements* 

On April 6, 2022, the Company entered into a Consulting Agreement with a third party to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, the related party will be entitled to a total of 10,000,000 common, vest immediately, valued at $300,000 (based on the Company's stock price on the date of issuance) and will be expensed over the thirty-six (36) term of the Consulting agreement.

On April 6, 2022, the Company entered into a Consulting Agreement with a third party to provide consulting services to the Company. The consulting agreement is in effect until the Company is profitable with a balance sheet of over $200 million or thirty-six (36) months, whichever is longer. Under this consulting agreement, the related party will be entitled to a total of 5,000,000 common, vest immediately, valued at $150,000 (based on the Company's stock price on the date of issuance) and will be expensed over the thirty-six (36) term of the Consulting agreement.

**Convertible Notes Payable**

***April 2022 Notes***

In April 2022, the Company authorized convertible promissory notes ("April 2022 Notes") that pay interest at 10% per annum and are due and payable on December 31, 2022 for aggregate gross proceeds of $347,500 through August 31, 2022. The holders of the April 2022 Notes have the right, at the holder's option, to convert the principal amount of this note, in whole or in part, plus any interest which accrues hereon, into fully paid and nonassessable shares at a conversion price of $0.07 per share into the Company's common stock if before any public offering. The Note includes customary events of default, including, among other things, payment defaults and certain events of bankruptcy. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note and accrual of interest as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does not have a BCF.

**$40,000,000 Convertible Note**

On May 13, 2022, the Company issued a convertible promissory note in the principal amount totaling $40,000,000 in exchange for 50,000 RoRa Prime Coins ("Coins"), valued at $800 per Coin. The convertible promissory note bears no interest and is due and payable in twenty-four (24) months. The holder of this Note has the right, at the holder's option, to convert the principal amount of this Note, in whole or in part, into fully paid and nonassessable shares at a conversion price of $2.00 per share. Conversion rights shall not vest until such time as the holder's consideration, Coins are live on a U.S. Exchange and available through a mutually agreed upon cryptocurrency wallet. The expected date for being live is November 1, 2022. Subsequent to the Coins live date and before the holder coverts the Note, should the Company issue any dilutive security, the conversion price will be reduced to the price of the dilutive issuance. The Note includes customary events of default, including, among other things, payment defaults, covenant breaches, certain representations and warranties, certain events of bankruptcy, liquidation and suspension of the Company's Common Stock from trading. If such an event of default occurs, the holders of the Note may be entitled to take various actions, which may include the acceleration of amounts due under the Note as described above.

The Company analyzed the conversion option in the notes for derivative accounting treatment under ASC Topic 815, "Derivatives and Hedging," and determined that the instrument does not qualify for derivative accounting. The Company therefore performed an analysis to determine if the conversion option was subject to a beneficial conversion feature ("BCF") and determined that the instrument does not have a BCF.

**Investment in Fourth &One**

On September 8, 2022, the Company entered into a Membership Interest Purchase Agreement ("Agreement") with Fourth & One, LLC ("Fourth & One") with respect to the sale and transfer of 51.5% of Fourth & One's interest in WC Mine Holdings, LLC ("WCMH") giving the Company a 30.9% ownership in WCMH for consideration totaling $5,450,000. In exchange, the Company issued Fourth & One a promissory note of $4,000,000 and 2,000 RoRa Prime digital coins ("Coins"), valued at $1,450,000. The promissory note provides for no interest and matures on October 31, 2022 ("Maturity Date"). In addition, the promissory note provides that the Company may convert all amounts at any time prior to the Maturity Date and after gaining approval by the Securities and Exchange Commission of the Company's REG A II Offering and Fourth & One may convert all amounts into common stock prior to the Maturity Date at a conversion price of $2.00 per share. The Agreement also provides that should Fourth & One not be able to convert the Coins on or before October 31, 2022 at a conversion ratio of $800 per Coin, the Company will purchase all of the Coins for a total of $1,600,000 (2,000 Coins at $800 per Coin) on October 31, 2022.

**Financing Engagement Agreement**

On August 25, 2022 the Company entered into a Legal Services Agreement with The George Law Group in connection with an issuance of multi-tranched securitization ("Financing") which shall utilize a pledge of the Company's stock and other properties currently owned or under the Company's control. The legal fee shall be one-half of one percent (0.5%) of the par amount of any Financing. The Company paid a retainer of $25,000 at the signing of the Legal Services Agreement which will be applied to any fees incurred in the Financing.

**PART III**

**INDEX TO EXHIBITS**

2.1 [Articles of Incorporation](https://www.sec.gov/Archives/edgar/data/1524872/000138038911000046/articlesofincorporation04182.htm) \*\*

2.2 [Bylaws](https://www.sec.gov/Archives/edgar/data/1524872/000138038911000046/bylaws.htm) \*\*

3.1 Certificate of Designation - Preferred Series A \*\*

3.2 Certificate of Designation - Preferred Series B \*\*

3.3 Certificate of Designation - Preferred Series C \*\*

3.3 Written Consent of Stockholders and Directors \*\*

6.1 [Amendment No. 1 to the Convertible Promissory Note dated May 13, 2022](tnrg_ex0601.htm) \*

6.2 [Dalmore Broker-Dealer Agreement](tnrg_ex0602.htm) \*

6.3 [Las Vegas Aces Sponsorship Agreement](tnrg_ex0603.htm) \*

6.4 [Turvata Holdings Limited Waiver Agreement](tnrg_ex0604.htm) \*

6.5 [Fourth & One, LLC Membership Purchase Interest Agreement](tnrg_ex0605.htm) \*

5.1 [Investment Policy Statement](thunder_ex0501.htm) \*

11.1 [Consent of Auditor](thunder_ex1101.htm) \*

12.1 Attorney opinion on legality of the offering \*

13.1 "Test the waters" materials \*\*\*

___________________________

\* Filed herewith. <br> \*\* Previously filed. <br> \*\*\* No "Test the Waters" presentations were made and no "Test the Waters" materials were prepared.

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this Offering Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in State of Georgia, on January 27, 2023.

---

| |
|:---|
| THUNDER ENERGIES, INC. |
| By: /s/ Ricardo Haynes |
| By: Ricardo Haynes |
| CEO of THUNDER ENERGIES, INC. |

---

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

/s/ Matthew D. White

Matthew D. White, Chief Financial Officer

Date: January 27, 2023

---

| |
|:---|
| /s/ Eric Collins |
| Eric Collins, Director |
| Date: January 27, 2023 |
| /s/ Lance Lehr |
| Lance Lehr, Director |
| Date: January 27, 2023 |
| /s/ Tori White |
| Tori White, Director |
| Date: January 27, 2023 |
| /s/ Donald R. Keer |
| Donald R. Keer, Director |
| Date: January 27, 2023 |

---

## Ex1A-5

**Exhibit 5.1**

**INVESTMENT POLICY STATEMENT**

**for**

**THUNDER ENERGIES, INC.**

**<u>Prepared by:</u>**

Thunder Energies, Inc.,

November 14, 2022

![](image_004.jpg)

Company Confidential

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | PAGE |
| **1.** | **INTRODUCTION** | 2 |
| **1.1** | **PURPOSE** | 2 |
| **1.2** | **OBJECTIVES** | 2 |
| **1.3** | **RESPONSIBILITIES** | 3 |
| **2.** | **INVESTMENT MANAGER'S FUNCTION** | 3 |
| **2.1** | **MONITORING OF INVESTMENT MANAGER** | 5 |
| **3.** | **INVESTMENT PROFILE FOR THE PORTFOLIO** | 7 |
| **4.** | **ASSET ALLOCATION STRATEGY AND OVER-COLLATERALIZATION TEST** | 7 |
| **4.1** | **BENCHMARK/STYLE INDEX** | 9 |
| **4.2** | **REBALANCING PROCEDURES** | 9 |
| **4.3** | **DOWNGRADED SECURITIES** | 10 |
| **4.4** | **OVERCOLLATERALIZATION REQUIREMENTS** | 11 |
| **4.5** | **PERFORMANCE OBJECTIVES** | 12 |
| **5.** | **PERFORMANCE EVALUATION** | 12 |
| **5.1** | **GUIDELINES FOR CORRECTIVE ACTION** | 12 |
| **6.** | **INVESTMENT GUIDELINES** | 13 |
| **6.1** | **MARKET VALUATION MANUAL** | 14 |
| **6.2** | **ASSET ALLOCATION** | 14 |
| **6.3** | **PORTFOLIO DIVERSIFICATION REQUIREMENTS** | 14 |
| **6.4** | **PERMITTED SECURITIES** | 15 |
| **6.5** | **PROHIBITED ASSETS** | 16 |
| **7.** | **PRUDENCE** | 16 |
| **8.** | **INVESTMENT TRANSACTIONS** | 16 |
| **9.** | **COMMUNICATIONS AND REPORTING** | 17 |
| **10.** | **POLICY REVIEW, FILING AND GOVERNING LAW** | 18 |
| **11.** | **APPROVAL** | 18 |

---

---

| | |
|:---|:---|
| **APPENDIX A GLOSSARY OF TERMS** | A-1 |

---

---

| | |
|:---|:---|
| **APPENDIX B INVESTMENT MANAGEMENT AGREEMENT** | B-1 |

---

**INTRODUCTION**

Thunder Energies, Inc. ("Thunder Energies") shall enter into that certain Agreement dated as of November 12, 2022 (as hereafter amended or supplemented from time to time, the "Agreement"), between Thunder Energies and ______________________, as Investment Manager (together with any successor Investment Manager, the "Investment Manager"). Terms not defined herein shall have the meaning assigned thereto by the Glossary of Terms attached hereto as Appendix A.

**1.1** **PURPOSE** 

This Investment Policy Statement ("IPS") sets forth the general principles that govern Thunder Energies Portfolio of Securities (the "Portfolio") which is comprised of Securities held in the Investment Account. The Investment Account shall be managed consistent with this IPS. This document is intended to provide guidelines for the Investment Manager (selected by Thunder Energies) to take prudent and careful action to achieve the goals of Thunder Energies while providing sufficient flexibility in managing investment risks and returns for the Portfolio. This IPS:

a. Describes an appropriate risk posture for the investment of the Portfolio's assets;

b. Establishes investment guidelines regarding the selection of the Investment Manager, permissible securities and diversification of assets;

c. Specifies the criteria for evaluating the performance of the Investment Manager and of the Portfolio as a whole; and

d. Defines the responsibilities of the Investment Manager.

Thunder Energies intends to review the investment policies described in this IPS periodically, but not less than annually, to ensure they adequately reflect changes related to the Portfolio and the capital markets.

**1.2** **OBJECTIVES** 

The primary investment objective is to seek returns that are expected to exceed the average annual return of the benchmark described below under 4.1 "Benchmark/Style Index," while remaining within the risk parameters set forth in these guidelines.

The Portfolio of Securities shall be invested in accordance with sound investment practices that emphasize the primary objectives in order of priority:

a)  ***Diversification:*** 

The investments will be well-diversified by various types of bonds and or other obligations in order to reduce the overall Portfolio risk as described in Section 6.2 of this IPS.

b.  ***Liquidity:*** **  

The Portfolio will remain sufficiently liquid to enable the Portfolio to meet all requirements which might be reasonably anticipated. Portfolio liquidity is herein defined as fixed income investments through major market makers with market execution. To assist in retaining the desired liquidity, no issue shall be purchased that is likely to have few market makers or poor market bids.

c.  ***Return on Investment:*** 

The Portfolio is expected to exceed the average annual return of the specified benchmark in Section 4.1.

**1.3** **RESPONSIBILITIES** 

It is expected that the objectives and policies described herein will be used as the criteria for selecting and evaluating the appropriate Investment Manager for the management of the Portfolio's assets. Specifically, the responsibilities of Thunder Energies include:

a. Establishing a long-term strategic investment plan for the Portfolio. This includes evaluating their risk tolerance and establishing
a long-term asset allocation policy consistent with the long-term objectives, financial needs and circumstances of the Portfolio;

b. Providing a mechanism to ensure compliance with the Agreement and the Over-Collateralization Test;

c. Recommending an appropriate Investment Manager and the selection or termination of the Investment Manager;

d. Monitoring and evaluating the performance of the Portfolio's assets as a whole and of the Investment Manager;

e. Selecting or terminating administrators, consultants, and custodian for the Portfolio's assets; and

f. Such other duties as may be described in this IPS or as required by applicable laws and regulations.

In addition, Thunder Energies may retain a third-party investment consultant to provide expert advice and assistance to Thunder Energies for the purpose of evaluating the management of the Portfolio, Monthly Reporting requirements as required by the Agreement and IPS and to provide other investment consulting services.

**2.** **INVESTMENT MANAGER'S FUNCTION** 

The Investment Manager is expected to manage the Portfolio's assets in a manner consistent with the Investment Management Agreement between Thunder Energies and the Investment Manager (the "Agreement"), and the investment objectives, guidelines, and constraints outlined in this IPS. The Investment Manager shall have a fiduciary responsibility to act in accordance with the Agreement.

The Portfolio assets will be managed by an experienced investment management firm with fiduciary responsibilities that:

a. At all times is registered and in good standing with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange
Commission as an investment advisor under the Investment Advisers Act of 1940 (where applicable);

b. Acknowledges in writing that it is a fiduciary with respect to the Portfolio assets it manages;

c. Has at least five years of experience in actively managing fixed income bond portfolios and is capable of managing the Portfolio such
that the Portfolio will maintain an overall dollar-weighted average rating of "Baa3" or greater by Moody's or "BBB-"
or greater by S&P (an "Investment Grade Rating");

d. Currently manages in excess of ten billion ($10.0B USD) in total assets;

e. The U.S. domiciled firm carries an investment grade rating of A2 (Moody's) and or A (Standard and Poor's) or higher;

f. Provides detailed information on the history of the firm, key personnel, fee schedule, and support personnel and demonstrates financial
and professional staff stability;

g. Clearly articulates the investment strategy that will be followed and documents that the strategy has been successfully adhered to over
time; and

h. Has no outstanding legal judgments or past judgments that materially and adversely affects its ability to provide services to Thunder
Energies.

The role of the Investment Manager is to manage the assets of the Portfolio by providing the following investment management services:

a.  ***Acquisition:*** 

The Investment Manager is delegated responsibility for following and maintaining the asset allocation strategy for the Portfolio and discretion to determine the Portfolio's individual security selections.

b.  ***Sourcing of Investments:*** 

Identifying various Corporate Securities, Government Securities, and other permitted investments that satisfy established parameters for diversification and portfolio mix.

c.  ***Risk Management:*** 

The performance of the Investment Manager is measured versus a fully invested market index, or combination of market indexes, representative of the Investment Manager's investment style, strategy, asset allocation and risk level. Investment Manager shall be permitted to utilize risk reduction vehicles including, but not limited to, interest rate swaps, credit default swaps and/or make whole call provisions.

d.  ***Monitor Investment Performance:*** 

Monitoring and tracking the risks and returns on individual investments regularly, including performing mark-to-market valuations frequently, but not less frequently than on a bi-weekly basis.

e.  ***Reviewing:*** 

Reviewing the Portfolio performance and investment guidelines on a monthly basis to determine whether the investments continue to meet the Portfolio's objectives and financial circumstances.

f.  ***Reporting/Advising:*** 

Reporting/Advising quarterly on the performance of the Portfolio to Thunder Energies and/or Thunder Energies designees, the Valuation Agent and the Investment Manager, to keep Thunder Energies and the Investment Manager apprised of the Portfolio's investment progress as it relates to the Portfolio performance and the reasonably anticipated cash requirements for ongoing operations and debt service payments. Said reporting shall comply with Section 9 herein.

g.  ***Liquidation:*** 

Liquidation of the Portfolio assets also rests with the Investment Manager, in accordance with this IPS.

**2.1** **MONITORING OF INVESTMENT MANAGER** 

Thunder Energies is aware that the ongoing review and analysis of the Investment Manager is as important as the due diligence implemented during the Investment Manager selection process. Thunder Energies may regularly monitor the Investment Manager as outlined below:

a.  ***Step 1 - Ongoing Monitoring*** :

Thunder Energies will perform on-going analysis of the Investment Manager regularly, but not less than on a quarterly basis. In addition to reviewing quarterly investment performance, the following will be evaluated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investment Manager's adherence to the IPS
guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Material changes in the Investment Manager's
organization, investment philosophy and/or personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The volatility of the investment rates of return
of the Investment Manager compared to the volatility of an appropriate market index and/or peer group (as listed in Section 4.1), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Comparison of the Investment Manager's
results to appropriate indices and/or peer groups (as listed in Section 4.1).

b.  ***Step 2 - Formal Watchlist*** :

If Thunder Energies determines that any of the above factors, or any other development regarding the Investment Manager's performance or organization, warrants a more thorough examination, Thunder Energies will place the Investment Manager on a formal "watchlist". Factors evaluated during the watchlist examination include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Extraordinary events (organizational issues)

Extraordinary events may include such things as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Change in ownership (i.e., key people "cash
out")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Change in professionals

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Changes to an Investment Manager's philosophy
or the process it uses to implement the agreed upon strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Investment Manager is involved in material litigation
or fraud

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Client-servicing problems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Significant account losses or significant account
growth

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Change in cost

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Change in financial condition or corporate rating

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Extreme performance volatility

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Intermediate-term performance in relation to
appropriate market index

Intermediate-term performance standards measure an Investment Manager's performance in relation to the appropriate market index for a time period not longer than ten years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Short-term performance in relation to appropriate
"style (peer) group"

Short-term performance standards incorporate a time period of at least three years. Investment Manager is expected to demonstrate favorable cumulative and rolling three- to five-year risk-adjusted performance compared to its peer group.

c.  ***Step 3 - Replace or Retain:*** 

As a result of the watchlist examination of the Investment Manager, a recommendation from Thunder Energies to either **replace** or **retain** the Investment Manager will be made. If a recommendation is made to retain the Investment Manager, a watchlist evaluation period may be established to more closely monitor the Investment Manager. This period will generally be four quarters, but can be shorter or longer depending on the circumstances leading to the watchlist examination.

It is at Thunder Energies discretion to take corrective action by replacing an Investment Manager, as it deems appropriate at any time. The watchlist is not the only route for removing an existing Investment Manager. The aforementioned events, or any other events of concern identified by Thunder Energies, may prompt the immediate removal of an Investment Manager without it being watchlisted.

**3.** **INVESTMENT PROFILE FOR THE PORTFOLIO** 

Given the nature of the Portfolio assets, as well as the duration of the Thunder Energies liabilities, a conservative to moderate level of investment risk is acceptable. An asset-mix policy favoring a higher investment weighting in Investment Grade Fixed Income Bonds is prudent.

The following profile is recommended for the Portfolio:

a.  ***Investment Horizon*** *:* 

Short- to long-term (one month to 30 years)

b.  ***Projected Use of Portfolio/Capital*** *:* 

Strict conformance to IPS requirements

c.  ***Level of Tolerance for Investment Risk*** *:* 

Conservative/moderate within IPS guidelines

d.  ***Portfolio Blend/Investment Preference*** *:* 

Maximum yield within IPS guidelines

e)  ***Investment Objective*** *:* 

Capital preservation and the ability to exceed the return of the stated benchmark.

Current income and capital growth without taking undue risk within IPS guidelines.

f)  ***Investment Style/Approach*** *:* 

Active management

All investments will be undertaken with a view to preserving capital and providing sufficient liquidity to enable Thunder Energies to meet its reasonably anticipated cash requirements for ongoing operations and debt service payments.

**4.** **ASSET ALLOCATION STRATEGY AND OVER-COLLATERALIZATION TEST** 

In line with the return objectives and risk parameters of the Portfolio, the mix of assets should be generally maintained as follows (percentages are of the market value of the Portfolio).

---

| | | |
|:---|:---|:---|
| **Asset Class** | **Min** | **Max** |
| Investment Grade Fixed Income Bonds | 75% | 100% |
| Non-Investment Grade Fixed Income Bonds | 0% | 15% |
| Cash and Cash Equivalents | 0% | 20% |
| **Total Assets** |  |  |

---

The table above displays the minimum and maximum Portfolio mix by asset class and percentages. Investment Grade Fixed Income Bonds will be comprised of Investment Grade Rated Corporate Securities (i.e., U.S. Corporate Bonds that are rated equal to or greater than "BBB-" by Standard & Poor's (S&P) or "Baa3" by Moody's and Government Securities (i.e., U.S. Treasuries and U.S. Agencies that are rated equal to or greater than "BBB-" by S&P or "Baa3" by Moody's). All new purchases must be rated investment grade by Moody's and S&P. In the event of a "split rated" security, that is a security with non-equivalent rating classifications from different rating agencies, the lower of the quality ratings shall apply. The Investment Manager is allowed to hold up to 5% in aggregate market value of securities downgraded below investment grade; provided further that, said bonds be rated no less than "B-" by S&P or "B3" by Moody's, as described below. The minimum dollar-weighted average credit quality rating of the fixed income Portfolio shall be at least "Baa3" by Moody's or "BBB-" by S&P. All rating categories, include qualifiers "1", "2" and "3" for Moody's and "+" and "-" for S&P. A minimum of 75% of the Portfolio value must be invested in Investment Grade Fixed Income Bonds.

As further defined and stipulated herein, Thunder Energies holdings of Non-Investment Grade Fixed Income Bonds are limited to Securities rated below "Baa3" and equal to or higher than "B3" by Moody's and below "BBB-" and equal to or higher than "B-" by S & P. Investment Grade Fixed Income Bonds are comprised of Corporate Securities and Government Securities rated equal to or higher than "Baa3" by Moody's and equal or higher than "BBB-" by S&P.

Deviations from this asset-mix guideline may be authorized in writing by Thunder Energies after first providing notice to Rating Agencies, which may determine if the aggregate deviation does not constitute a material departure from the spirit of the target allocation.

The maximum percentage designed for the "Cash and Cash Equivalents" category is intended to apply after the initial ramp-up to purchase the Securities of the Portfolio. Thunder Energies recognizes that this initial ramp-up period may be up to three months after the initiation of the Portfolio.

The portfolio mix will be reviewed periodically with market conditions, but will be reviewed within the target asset allocation, to determine the appropriate allocation to each asset class, as necessary.

**4.1** **BENCHMARK/STYLE INDEX** 

The Portfolio will have as its benchmark the corporate securities rated BBB- as represented in (to be determined and agreed upon) the Barclays Capital U.S. Aggregate Index (or other agreed upon benchmark). The benchmark will be subject to an issuer cap of 2% and 7.5% single industry maximum.

The respective weighting for each component of the benchmark is as follows:

*Corporate securities in the Barclays Capital U.S. Aggregate Index, BBB rated: 80%*

*Corporate securities in the Barclays Capital U.S. Aggregate, A rated: 20%*

The Barclays Capital "Class 4" sector classification will be used for the purposes of calculating the single industry maximum.

**4.2** **REBALANCING PROCEDURES** 

The allocation to each asset class and to investment styles within asset classes is expected to remain stable over most market cycles.

Since capital appreciation (depreciation) and trading activity in the managed Portfolio can result in a deviation from the overall asset allocation, the aggregate asset allocation will be monitored and Thunder Energies shall review the asset allocation at least annually.

If any asset allocations fall outside of the acceptable ranges as set forth in Section 6.4 of this IPS, the Investment Manager must adhere to the following:

a. The Investment Manager shall notify Thunder Energies and the Investment Manager in writing (email, overnight carrier and/or fax) within
a reasonable amount of time of the breach of the asset allocation range requirement;

b. The Investment Manager shall cure the asset allocation range requirement breach within ten (10) Business Days or a period acceptable
to the Rating Agencies, as evidenced in writing from the Rating Agencies to Thunder Energies, a copy of which shall be provided to the
Investment Manager by Thunder Energies upon receipt thereof, but in no event longer than sixty (60) Business Days and shall notify Thunder
Energies and Investment Manager within a reasonable amount of time after the cure to confirm that the Portfolio is within acceptable
asset allocations and/or target asset mixes, together with copies of trade tickets evidencing such transactions; and

c. In no event will the time period between mark-to-market and cure exceed twenty (20) Business Days or a period acceptable to the Rating
Agencies, as evidenced in writing from the Rating Agencies to Thunder Energies, a copy of which shall be provided to the Investment Manager
by Thunder Energies upon receipt thereof, but in no event longer than sixty (60) Business Days.

d. If within twenty (20) Business Days (or other period acceptable to the Rating Agencies, as evidenced in writing from the Rating Agencies
to Thunder Energies, a copy of which shall be provided to the Investment Manager by Thunder Energies but in no event longer than sixty
(60) Business Days after notifying Thunder Energies and the Investment Manager of the breach of the asset allocation range requirement
as set forth in clause (a) above (the "Reallocation Period"), the Investment Manager is unable to cure such breach, the Investment
Manager agrees that it will assist Thunder Energies in identifying and liquidating (to the extent such Securities have not already been
liquidated) such Securities as necessary to cure such breach and cause the proceeds thereof to be transferred to the credit of the Portfolio
within four (4) Business Days from the end of the Reallocation Period.

**4.3** **DOWNGRADED SECURITIES** 

If any single security held in the Portfolio is downgraded below IPS restrictions, or if the dollar-weighted rating average of the Portfolio falls below IPS restrictions, the Investment Manager must adhere to the following:

a. The Investment Manager must notify Thunder Energies, the Valuation Agent and the Investment Manager in writing (email, fax or letter)
within a reasonable amount of time of the downgrade that triggers this compliance exception;

b) In the event that the amount of Non-Investment Grade Fixed Income Bonds is greater than 5% of the Portfolio, if the downgraded security
does not cure its own downgrade and return to compliance with the IPS within ten (10) Business Days or a period acceptable to the Rating
Agencies, but in no event longer than sixty (60) Business Days, the Investment Manager shall liquidate the downgraded security or securities,
or otherwise rebalance the Portfolio within ten (10) Business Days to return to compliance with this IPS and shall notify Thunder Energies,
the Valuation Agent and Investment Manager within a reasonable time frame that the downgraded security has either cured its own downgraded
status or the downgraded security has been liquidated and the Portfolio is within compliance with the IPS; and

c) In no event will the time period between mark-to-market, cure and liquidation exceed twenty (20) Business Days or a period acceptable
to the Rating Agencies, but in no event longer than sixty (60) Business Days, as evidenced in writing from the Rating Agencies to Thunder
Energies, a copy of which shall be provided to the Investment Manager by Thunder Energies upon receipt thereof.

**4.4** **OVERCOLLATERALIZATION REQUIREMENTS** 

***Over-Collateralization Test:***

The investment guidelines set forth in this IPS have been established so that the Advance Amount of Securities held in the Portfolio satisfy the Over-Collateralization Test (e.g. the Advance Amount of the Securities are greater than or equal to the outstanding principal amount of the Investors Capital); provided however, the ultimate goal is to achieve an Advance Amount of Securities in the Portfolio that is equal to or greater than 110% of the outstanding principal amount of the Investors Capital.

The Agreement requires that the Valuation Agent (with the assistance of Thunder Energies and, at the direction of Thunder Energies, the Valuation Agent) calculate the Market Value of each Security and the Advance Amount of the Securities held in the Portfolio on each Valuation Date, and report whether the Over-Collateralization Test has been satisfied on such Valuation Date. In the event the Valuation Agent is unable to calculate the Market Value of an Security or determine any of the other elements that are required to calculate the Over-Collateralization Test (i.e., determining an Asset Category), pursuant to the terms of the Agreement, Thunder Energies has agreed to obtain such information that would assist the Valuation Agent in calculating the Market Value and of an Security or making a determination with respect to any of the other elements that are required to calculate the Over-Collateralization Test. At the written direction and request of Thunder Energies, the Investment Manager agrees to use its best efforts to assist Thunder Energies in providing such information to the Valuation Agent, with respect to Securities, to assist the Valuation Agent in calculating the Market Value of Securities and/or determining any of the other elements that are required to calculate the Over-Collateralization Test. The Valuation Agent shall be a third-party beneficiary of this section. Notwithstanding the foregoing, if Thunder Energies or the Investment Manager, at the request of Thunder Energies, are unable, fail or decline to provide such requested information to the Valuation Agent, the Valuation Agent shall proceed with the valuation and calculation process as set forth in the Agreement, which Thunder Energies acknowledges could result in a Market Value of zero ($0) for a Security and/or failure to satisfy the Over-Collateralization Test.

**4.5** **PERFORMANCE OBJECTIVES** 

The Portfolio is expected to exceed the average annual return of the specified benchmark in Section 4.1.

Thunder Energies will monitor the performance of the Portfolio at least on a quarterly basis. Thunder Energies will evaluate the Investment Manager's contribution toward meeting the investment objectives outlined in this IPS over a three- to five-year year rolling time period and a full market cycle, unless otherwise noted.

**5.** **PERFORMANCE EVALUATION** 

As noted above, Thunder Energies will monitor the performance of the Investment Manager and the composition of the Portfolio on a quarterly basis.

Thunder Energies will evaluate the Investment Manager's success in achieving the investment objectives outlined in this document over at least a three- to five-year time horizon. Thunder Energies realizes that most investments go through cycles. Therefore, there may be periods of time in which the investment objectives are not met or when the Investment Manager may fail to meet the expected performance targets.

The Portfolio's and Investment Manager's performance should be reported in terms of rate of return and changes in dollar value. The returns should be compared to appropriate market or benchmark indexes and peer group universes, for the most recent quarter and for annual and cumulative historical time periods.

Risk as measured by volatility, or standard deviation of quarterly returns, shall be evaluated after twelve quarters of performance history have accumulated. An attribution analysis shall also be performed to evaluate how much of the Portfolio's investment results are due to the Investment Manager's investment decisions, as compared to the effect of financial market movements.

**5.1** **GUIDELINES FOR CORRECTIVE ACTION** 

Thunder Energies recognizes the importance of a long-term focus when evaluating the performance of the Investment Manager. Thunder Energies understands the potential for short-term periods when the performance of an Investment Manager may deviate significantly from the performance of representative market indexes. So long as such conditions are explicitly set forth in the Agreement, as attached hereto as Appendix B, Thunder Energies may also terminate an Investment Manager upon any of the following conditions:

a. Any material event that affects the ownership or capital structure of the Investment Manager, or the management of this account (such
as described in Section 9). Failure on the part of the Investment Manager to notify Thunder Energies as required herein may be
grounds for immediate termination;

b. Any material client servicing deficiencies, including a failure to communicate in a timely fashion significant
changes as outlined in Sections 4 and 9 of this IPS;

c. Violation of terms of contract without prior written approval of Thunder Energies constitutes grounds
for immediate termination;

d. Failure to adhere to the diversification strategy provided in the IPS, as part of the Portfolio's
overall asset allocation strategy or the Investment Manager's failure to rebalance the asset allocation timely after a compliance
exception;

e. Thunder Energies may terminate the Investment Manager on the basis of short-term performance. The
Investment Manager's performance, however, will be viewed in light of the Investment Manager's particular investment style
and approach, keeping in mind at all times the Portfolio's diversification strategy as well as the overall quality of the relationship;

f. Investment Manager may be replaced at any time as part of an overall restructuring of the Portfolio. 
Thunder Energies reserves the right to terminate the Investment Manager for any other reason in accordance with any applicable investment
management agreements; and

g. Following a breach of a covenant or requirement herein, which triggers corrective liquidation of Portfolio
assets within a defined cure period as provided herein, the Investment Manager may prefer to liquidate Portfolio assets over a longer
horizon, if the Investment Manager has a good faith view that better sales prices can be achieved by avoiding a "fire sale". 
If the Investment Manager desires to liquidate Portfolio assets as a result of a breach herein over a time period longer than required
herein for a respective breach, then the Investment Manager must provide a written report to Thunder Energies and Investment Manager detailing
the basis upon which it determines that an alternate liquidation period is warranted, along with the time period it suggests under said
alternative liquidation period, not to exceed six months.

**6.** **INVESTMENT GUIDELINES** 

Investment activity must be consistent within the requirements of this IPS, the Agreement with the Investment Manager and applicable laws. Where there are differences between the investment guidelines or other terms included in the Agreement and this IPS, the Agreement shall govern.

The Investment Manager acknowledges the general guidelines presented in this IPS and will manage the Portfolio in accordance with these guidelines. The Investment Manager will monitor the Portfolio and will use its best efforts to correct any deviations from these guidelines as soon as reasonably practicable.

Any other security transaction not specifically authorized in this IPS, unless approved, in writing by Thunder Energies, is not permitted. Requests by the Investment Manager to execute transactions that are not currently authorized in this IPS shall be made in writing prior to executing such transactions.

Transactions or unanticipated market actions that cause a deviation from these policy guidelines shall be brought to the attention of Thunder Energies by the Investment Manager prior to executing transactions, when practical. Such deviations may be authorized in writing by Thunder Energies, which can determine if the deviation constitutes a material departure from the intent of this IPS.

**6.1** **ADVANCE AMOUNT OF SECURITIES IN PORTFOLIO** 

The investment guidelines set forth in this IPS have been established so that the Advance Amount of Securities held in the Portfolio satisfy the Over-Collateralization Test (i.e., the Advance Amount of the Securities held in the Portfolio are greater than or equal to the outstanding principal amount of the Investors Capital); provided however, the ultimate goal is to achieve an Advance Amount of Securities in the Portfolio that is equal to or greater than 110% of the outstanding principal amount of the Investors Capital.

**6.2** **ASSET ALLOCATION** 

The Investment Manager has been delegated responsibility for establishing and maintaining the asset allocation strategy for the Portfolio.

Unless otherwise noted below, under normal market conditions, the Portfolio is expected to be invested primarily in fixed income securities consistent with the investment style as described in Section 4 and the Agreement with Thunder Energies. Except for the initial three months after the start-up of the Portfolio by Thunder Energies, or as noted below, the Investment Manager shall not invest more than 20% of the market value of the Portfolio in Cash and Cash Equivalents. During the initial three months of the account relationship with the Portfolio, the Investment Manager may hold Cash and Cash Equivalents in larger proportions in order to invest the Portfolio in an orderly basis with the intent to purchase the best assets to include in the Portfolio.

**6.3** **PORTFOLIO DIVERSIFICATION REQUIREMENTS** 

To minimize the risk of large losses, the Investment Manager shall maintain a well-diversified Portfolio. Subject to the constraints outlined in this IPS, the Investment Manager shall have the discretion to determine the Portfolio's individual security selections.

The objectives of the diversification strategy are to:

a) Reduce the Portfolio's total return variability;

b) Reduce exposure to any single component of the capital market;

c) Reduce the risk of not tracking inflation; and

d) Increase the longer-term risk adjusted return potential of the Portfolio.

To achieve diversification, the Portfolio assets shall be invested based on the Benchmark Asset/Portfolio Mix listed in Section 4 and 4.1 of this.

**6.4** **PERMITTED SECURITIES** 

The securities purchased for the Portfolio shall be registered with the Securities and Exchange Commission, unless otherwise exempted from registration, traded on a recognized U.S. over-the-counter market and traded in the currency of U.S. Dollars. Trades in currencies other than U.S. Dollars are not permitted.

a)  ***Investment Grade Fixed Income Bonds:*** 

Investment Grade Fixed Income Bonds consisting of Corporate Securities and Government Securities purchased for the Portfolio shall be rated no less than "Baa3" by Moody's and "BBB-" by S&P at the time of purchase. The minimum dollar-weighted average credit quality rating of the fixed income Portfolio shall be "Baa3" by Moody's or "BBB-" by S&P. All rating categories, except "AAA" by S&P and "Aaa" by Moody's, include qualifiers "1", "2" and "3" for Moody's and "+" and "-" for S&P. In the event of a "split rated" security, that is a security with non-equivalent rating classifications from different rating agencies, the lower of the quality ratings shall apply. A minimum of 75% of the Portfolio value must be invested in Investment Grade Fixed Income Bonds.

b)  ***Non-Investment or Speculative Grade Fixed Income Bonds:*** 

The Investment Manager is allowed to hold up to 5% in aggregate market value of securities downgraded below investment grade; provided that, said bonds be rated no less than "B3" by Moody's and "B-" by S&P.

c)  ***Cash and Cash Equivalents:*** 

It is generally expected that the Investment Manager will remain fully-invested in Investment Grade Fixed Income Bonds and Non-Investment or Speculative Grade Fixed Income Bonds, however it is recognized that cash reserves may be utilized from time-to-time to provide liquidity or to implement certain investment strategies. Cash includes any immediately available funds in United States Dollars and Cash Equivalents include investments readily convertible to Cash (other than Cash and Government Securities).

No more than 5% of the Portfolio's market value will be in any single issuer, except U.S. Treasuries and U.S. Agencies. U.S. Agencies may consist of Fannie Mae, Freddie Mac, Ginnie Mae, Federal Home Loan Mortgage Corporation, Federal Farm Credit Bank, Federal Home Loan Banks, Federal Agriculture Mortgage Corporation, Tennessee Valley Authority and U.S. Treasuries Fixed income securities of a single issuer or issue, with the exception of Government Securities, are limited to no more than 5% of the market value of the Portfolio. Fixed income securities of a single industry are limited to no more than 10% of the market value of the Portfolio.

**6.5** **PROHIBITED ASSETS** 

Prohibited investments include, but are not limited to the following:

---

| | |
|:---|:---|
| a. | Currencies (other than U.S. Dollars) |
| b. | Commodities |
| c. | Futures Contracts (unless used for hedging purposes) |
| d. | Hedge Portfolios |
| e. | Leveraged Buyouts |
| f. | Limited Partnerships |
| g. | Puts, calls, straddles or other option or swap strategies (unless used for hedging purposes) |
| h. | Short Sales (unless used for hedging purposes) |
| i. | Stocks other than Blue Chip stocks |
| j. | Venture Capital |
| lk | Investments by the Investment Manager in their own securities, their affiliates or subsidiaries (excluding money market accounts authorized by Thunder Energies in the IPS) |

---

All investments outside the IPS are subject to the prior written approval of Thunder Energies and prior written notice to the Rating Agencies.

**7.** **PRUDENCE** 

Investments for the Portfolio shall be made with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims.

**8.** **INVESTMENT TRANSACTIONS** 

Trading for the Portfolio is directed by and is the responsibility of the Investment Manager to whom Thunder Energies has granted the discretionary authority to determine (subject to the investment objectives and policies outlined herein) the securities to be bought or sold on behalf of the Portfolio, the amount of such securities, and the brokers or dealers to be used in such transactions. The Investment Manager is generally obligated, absent Thunder Energies direction to the contrary, to affect transactions with or through those brokers or dealers that in the Investment Manager's view are capable of providing the best price and execution of client orders under applicable laws.

**9.** **COMMUNICATIONS AND REPORTING** 

The investment performance of the Portfolio shall be monitored and reported on a monthly basis to Thunder Energies, its designees, the Valuation Agent, the Investment Manager and the Rating Agencies (if required). The investment performance report shall reflect the Portfolio's overall realized return each month, the asset position and a general asset allocation statement of the Portfolio investments as of the date of the report as well as the composition and details of the assets in the Portfolio. In addition, the Over-Collateralization Test shall be monitored and reported on by the Valuation Agent.

The investment program will have the following communication and reporting standards to ensure that it continues to achieve the Portfolio's stated investment objectives and risk tolerance as follows:

a. As a matter of course, the Investment Manager shall keep Thunder Energies apprised of any material changes in the Investment Manager's
outlook, investment policy, and tactics;

b. A representative of the Investment Manager shall be available on a reasonable basis for telephone communication when needed;

c. Any material event that affects the ownership or capital structure or any material event that affects the management of this account
(such as changes in senior investment personnel) must be reported promptly to Thunder Energies and the Investment Manager. This
requirement does not include routine employee stock ownership transactions or partnership announcements;

d. A representative of the Investment Manager shall meet with the Thunder Energies on a semi-annual basis (typically in March and September)
to review and explain the Portfolio's investment results; and

e. The Investment Manager shall provide to Thunder Energies quarterly statements of assets and transactions.

In regards to reports delivered to the Rating Agencies, they shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first class postage prepaid, hand delivered, sent by overnight courier service to each Rating Agency addressed to it at Moody's Investors Service, Inc., 7 World Trade Center, New York, New York 10007, Attention: CBO/CLO Monitoring or by email to cdomonitoring@moodys.com and Standard & Poor's, 55 Water Street, 41st Floor, New York, New York 10041-0003 or by facsimile in legible form to facsimile no. (212) 438 2655, Attention: Structured Credit – CDO Surveillance or by electronic copy to CDO_Surveillance@standardandpoors.com.

At the request of the Investment Manager and Valuation Agent, reports shall be delivered by request as specified in Section 11.04 of the Agreement.

**10.** **POLICY REVIEW AND FILING** 

This Investment Policy shall be reviewed at least once a year and either confirmed or amended as necessary. All amendments shall be signed by the Investment Manager and Thunder Energies after written notice of any proposed amendment has been provided by Thunder Energies to the Rating Agencies, if required.

**11.** **APPROVAL** 

It is understood that this IPS is to be reviewed periodically by Thunder Energies to determine if any revisions are warranted by changing circumstances including, but not limited to, changes in financial status, risk tolerance, or changes involving the investment managers. Should Thunder Energies permit a deviation from this IPS or implement a change in policy, the circumstances and rationale for the change shall be documented and attached to this IPS. Written notice of any amendment or change to this IPS shall be provided by Thunder Energies to the Rating Agencies, if required, prior to said amendment or change becoming effective. Thunder Energies agrees that this IPS shall not be amended in any way which materially adversely affects the Investment Manager or the Valuation Agent without such party's written consent.

Thunder Energies Inc,,

By Thunder Energies, Inc., as CEO

____________________________

Signature

____________________________

Print Name

Title: Authorized Representative

**INVESTMENT MANAGER ACCEPTANCE**

**Investment Manager**

Deviations from the investment policies and constraints outlined in this document may be authorized in writing by Thunder Energies, which can determine if the aggregate deviation constitutes a material departure from the intent of this investment policy.

The investment policy as set forth in this document will be reviewed periodically by Thunder Energies, which can approve and implement changes. By initial and continuing acceptance of these objectives and guidelines, the Investment Manager agrees to abide by the provisions of this document effective as of _________________.

"Investment Manager"

____________________________

Signature

____________________________

Print Name:

Title: Authorized Representative

**APPENDIX A**

**GLOSSARY OF TERMS**

**Active Management**

The buying and selling of bonds, as opposed to holding them to maturity.

**Advance Amount**

The lesser of (A) the S&P Advance Amount calculated using the S&P Advance Rates and (B) the Moody's Advance Amount calculated using the Moody's Advance Rates.

**Advance Rate**

For each Asset Category, the percentage set out in the relevant Rating Agency Table opposite such Asset Category and maturity (if applicable) with respect to the Over-Collateralization Test.

**Approved Dealer**

In the case of any Security that is not a Government Security, any bank or broker-dealer set forth in the Valuation Agent Agreement (or any successor to any such listed bank or broker-dealer) or any other bank or broker-dealer designated by Thunder Energies (or the Investment Manager on its behalf) in writing and approved by S&P and/or Moody's (as the case may be) pursuant to a Rating Agency Confirmation.

**Approved Exchange**

Any exchange or quotation system providing regularly published securities prices listed in the Valuation Agent Agreement or any other exchange designated by Thunder Energies (or the Investment Manager on its behalf) in writing and approved by S&P and/or Moody's (as the case may be) pursuant to a Rating Agency Confirmation.

**Approved Network 1**

Any Network 1 listed in the Valuation Agent Agreement (or any successor to any such Network 1) or any other Network 1 designated by Thunder Energies (or the Investment Manager on its behalf) in writing and approved by S&P and/or Moody's (as the case may be) pursuant to a Rating Agency Confirmation.

**Approved Pricing Service**

A pricing or quotation service listed in the Valuation Agent Agreement (or any successor to any such listed pricing service) or any other pricing or quotation service designated by Thunder Energies (or the Investment Manager on its behalf) in writing and approved by S&P and/or Moody's (as the case may be) pursuant to a Rating Agency Confirmation.

**Approved Source**

Any of (i) two Approved Dealers and/or Approved Network 1s (so long as the lower of two bid prices is being used) and three Approved Dealers and/or Approved Network 1s (if the average of three bid prices is being used), (ii) an Approved Exchange or (iii) an Approved Pricing Service.

**Asset**

Any item of economic value owned by an individual or corporation, especially that which could be converted to cash.

**Asset Category**

A category assigned to each Security for the purpose of the Over-Collateralization Test.

**Attribution Analysis**

A tool used to evaluate the impact of a manager's decisions on the performance of an investment fund or portfolio. Attribution analysis compares the performance of a portfolio with that of an appropriate benchmark. It is used mostly by institutional investors to determine whether a manager's decisions are yielding satisfactory returns.

**Barclays Capital U.S. Government Inflation-Linked Bond Index**

An inflation-protection U.S. bond index published by Barclay's Capital. Most U.S. traded investment grade bonds are represented in the index.

**Benchmark**

A gauge in the securities market by which investment performance can be measured, such as the Standard & Poor's 500 Index.

**Blue Chip Stock**

A huge company with an excellent reputation. These are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings, often paying dividends to investors. A blue-chip stock typically has a market capitalization in the billions, is generally the market leader or among the top three companies in its sector, and is more often a household name.

**Bond**

The indebted entity (issuer) issues a bond that states the interest rate (coupon) that will be paid and when the loaned funds (bond principal) are to be returned (maturity date). Interest on bonds is usually paid every six months (semi-annually). The main categories of bonds are corporate bonds, municipal bonds, and U.S. Treasury bonds, notes and bills, which are collectively referred to as simply "Treasuries."

**Calls**

An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.

**Capital**

The money, property, and other valuables which collectively represent the wealth of an individual or business.

**Caps**

Designed to provide insurance against the rate of interest on a floating rate loan rising above a certain level (known as the cap rate).

**Cash**

Means any immediately available funds in United States dollars (including amounts held in the Securities Account) available to the Investment Manager.

**Cash Account**

The account that holds funds available to Thunder Energies to debt service or use for operational expenses which are above and beyond the Investors Capital in the Investment Account.

**Cash Equivalents**

Means investments (other than Cash and Government Securities):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in respect of which the obligor has a short-term S&P issuer credit rating of at least "A-1+" or a long-term S&P issuer credit rating of at least "AA" for the purposes of calculating the S&P Advance Amount and has a short-term Moody's rating of at least "P-1" or a long-term Moody's senior unsecured rating of at least "Aa2" for the purposes of calculating the Moody's Advance Amount or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in funds investing in money market instruments, such funds rated "AAAm" or "AAAg" or "AAA" by S&P for the purposes of calculating the S&P Advance Amount and "Aaa.mf" or "MR1+" by Moody's for the purposes of calculating the Moody's Advance Amount; *provided that*: (i) in no event shall Cash Equivalents include any obligation that provides for the payment of interest alone, (ii) Cash Equivalents referred to in paragraph (a) above shall mature within 183 days of issuance, (iii) if either S&P or Moody's changes its rating system, then any ratings included in this definition shall be deemed to be an equivalent rating in a successor rating category of S&P or Moody's as the case may be, (iv) if either S&P or Moody's ceases to be in the business of rating securities, then any ratings included in this definition shall be deemed to be an equivalent rating from another rating agency, and (v) Cash Equivalents (other than money market funds maintained by the Investment Manager) shall not include any such investment equivalent to more than $50,000,000 in any single issuer.

**Collateralized Debt Obligations** (**CDOs**)

A type of structured asset-backed security (ABS) with multiple "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. Each tranche offers a varying degree of risk and return so as to meet investor demand. CDOs' value and payments are derived from a portfolio of fixed-income underlying assets. CDO securities are split into different risk classes, or tranches, whereby "senior" tranches are considered the safest securities. Interest and principal payments are made in order of seniority, so that junior tranches offer higher coupon payments (and interest rates) or lower prices to compensate for additional default risk.

**Collateralized Loan Obligations** (**CLOs**)

A type of structured asset-backed security (ABS) similar to that of a Collateralized Debt Obligation (CDO), but based on a bank's portfolio of personal loans or commercial loans instead of bonds.

**Commodities**

A physical substance, such as food, grains, and metals, which is interchangeable with another product of the same type, and which investors buy or sell, usually through futures contracts.

**Corporate Securities**

Bonds or debt securities issued by U.S. corporations denominated in U.S. Dollars and sold to investors.

**Country Risk**

Country Risk is the risk of holding the securities of countries different from the Index.

**Credit Rating**

A current opinion of an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. In the case of split ratings, the lower rating of either Moody's or Standard & Poor's shall apply.

**Credit Risk**

Credit Risk is the uncertainty surrounding the borrower's ability to repay its obligations.

**Cure**

A provision in a contract allowing a defaulting party to fix the cause of a default, for example a repayment grace period.

**Currency**

The monetary unit of a sovereign state such as United States dollars.

**Custodian**

A bank or other financial institution that provides custody of stock certificates and other assets of an institutional investor.

**Diversification**

Spreading a portfolio over many investments to avoid excessive exposure to any one source of risk.

**Duration**

A measure of price sensitivity to interest rate changes. Duration is the anticipated percentage move in price given a 100 basis point (1 percent) move in interest rates.

**Equity**

Claims held by the owners of a firm.

**Fiduciary**

A person, company or association holding assets in trust for a beneficiary. One who can exercise discretionary authority or can control important aspects of legal matter.

**Fixed Income Investment or Fixed Income Security**

A security issued by a borrower that obligates the issuer to make specified payments at a fixed interest rate to the holder over a specific period of time. May also be referred to as "debt" or "bonds." For the purposes of this IPS, Fixed Income Securities is comprised of both Corporate Securities and Government Securities issued with a fixed interest rate.

**Futures Contracts**

Exchange-traded contracts to buy or sell a standard quantity of a given instrument, at an agreed price, and date. A future differs from an option in that both parties are obliged to abide by the transaction. Futures are traded on a range of underlying instruments including commodities, bonds, currencies, and stock indices.

**Government Security**

Collectively, U.S. Treasuries and U.S. Agencies.

**Guidelines**

Refers to an Investment Manager's "Investment Guidelines," established between the Investment Manager and Thunder Energies as part in an investment management agreement. Guidelines may be general or specific.

**Hedge Fund**

A private investment partnership or an off-shore investment corporation in which the general partner has made a substantial personal investment, and whose offering memorandum allows for the fund to take both long and short positions, using leverage and derivatives, and invest in many markets. Hedge funds often use strategies involving program trading, selling short, swaps, and arbitrage.

**Hedge (Hedging)**

A strategy used to offset investment risk. A perfect hedge is one eliminating the possibility of future gain or loss.

**Historical Factors**

A review of past relationships and the environment associated with them to assess the relative investment potential of the current market conditions and relationships.

**Inflation**

The overall general upward price movement of goods and services in an economy (often caused by a increase in the supply of money), usually as measured by the Consumer Price Index.

**Interest Rate Risk**

Interest Rate Risk is the price volatility produced by changes in the overall level of interest rates as measured by an option-adjusted duration.

**Investment Account**

The account that holds Securities in a Portfolio managed by the Investment Manager.

**Investment Advisers Act of 1940**

Legislation in the United States defining an investment adviser as a person who provides professional advice on how to manage investments or makes investments on behalf of a client. Under amendments to the Advisers Act, investment advisers with more than $25 million under management are required to register with the SEC. The act defines the liability of investment advisers and provides guidelines on the fees and commissions they may collect. Additionally, the Act provides certain anti-fraud provisions protecting investors from predatory advisers, even those not registered with the SEC.

**Investment Consultant**

An individual or organization that could provide specialized professional assistance to Thunder Energies in determining the Portfolio's asset allocation model or optimal combination of investments in order to maximize risk-adjusted investment returns in a manner consistent with the investment guidelines

**Investment Grade Fixed Income Bonds**

A bond issued with a fixed rate of interest with a credit rating of "Baa3" or higher by Moody's Investor Service or "BBB-" or higher for Standard & Poor's. Investment grade ratings apply to issuers whose financial risk is relatively low and the probability of future payment relatively high. For purposes of this IPS, Investment Grade Fixed Income Bonds are comprised of fixed rate Corporate Securities and fixed rate Government Securities with Investment Grade Ratings.

**Investment Grade Rating(s)**

Various alphabetical and numerical designations or ratings are assigned by Moody's Investors Service, Standard & Poor's Ratings Services, and other nationally recognized statistical rating organizations to give relative indications of bond and note creditworthiness. Standard & Poor's uses the following lettering system for each rating category and "+", flat or "-" to indicate steps within each category, starting with a rating from highest to lowest credit quality of: AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Services uses the following lettering system for each rating category and "1", "2" or "3" to indicate steps within each category, starting with a rating highest to lowest credit quality of: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, and C. The top four rating categories without regard to their sub-classification are considered investment grade ratings (e.g. "BBB-" or higher by Standard & Poor's and "Baa3" or higher by Moody's).

**Investment Horizon**

The length of time a sum of money is expected to be invested. An individual's investment horizon depends on when and how much money will be needed, and the horizon influences the optimal investment strategy. In general, the shorter the investor's horizon, the less risk he/she should be willing to accept.

**Investment Manager**

A manager or potential manager, both public market and private market. Includes, but is not limited to managers of equity, fixed income, private equity, real estate, hedge funds, commodities and cash. An outside money management firm retained under contract by Thunder Energies.

**Investors Capital**

Initial funds raised by Network 1 and or Thunder Energies and placed into the Portfolio for the Investment Manager to invest in the Portfolio.

**Leverage**

A condition where a portfolio's market obligation may exceed the market-value-adjusted capital commitment by the amount of borrowed capital (debt).

**Leveraged Buyouts**

Takeover of a company or controlling interest in a company, using a significant amount of borrowed money. Often the target company's assets serve as collateral for the borrowed money.

**Limited Partnerships**

A business organization with one or more general partners, who manage the business and assume legal debts and obligations, and one or more limited partners, who are liable only to the extent of their investments. Limited partners also enjoy rights to the partnership's cash flow, but are not liable for company obligations.

**Liquidation**

An Investment Manager will liquidate assets to try and get as much of the money to rebalance an investment portfolio or what is owed to the investors as possible.

**Liquidity**

Portfolio liquidity is defined as fixed income investments through major market makers with market execution.

**Long-term**

In the context of Thunder Energies liability and investment horizons, long-term is assumed to be 30 years or more.

**Mark-to-Market**

A measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark-to-market aims to provide a realistic appraisal of an institution's or company's current financial situation.

**Market Index**

An aggregate value produced by combining several bonds or other investment vehicles together and expressing their total values against a base value from a specific date. Market indexes are intended to represent an entire bond and thus track the market's changes over time.

**Market Value**

With respect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Cash, the current balance thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. (i) any Cash Equivalents of the type described in paragraph (a) of the definition thereof, the original purchase price (as reported to
the Valuation Agent Thunder Energies, or the Investment Manger on behalf of Thunder Energies) of such Cash Equivalents and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Cash Equivalents of the type described in paragraph (b) of the definition thereof, the aggregate current net value (as reported to the Valuation Agent by Thunder Energies, or the Investment Manger on behalf of Thunder Energies) of such Cash Equivalents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. any Security or an Unquoted Investment, at any date, where either the lower of two bid prices or the average of three bid prices quoted
by Approved Dealers or Network 1's obtained at least monthly shall apply; *provided that* in no event will the Market Value of any
Unquoted Investment exceed the value most recently determined by Thunder Energies (or the Custodian or Investment Manager on behalf of
Thunder Energies) in any report or statement provided by Thunder Energies (or the Valuation Agent on behalf of Thunder Energies). 
Prior to the first determination of the Market Value of any Unquoted Investment as provided in this clause, the Market Value of such
Unquoted Investment will be the lower of the value thereof as most recently quoted by an Approved Source, if any, and the purchase price
paid for such Security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. any other Security at any date, an amount determined by Thunder Energies (or the Investment Manager or the Valuation Agent on behalf
of Thunder Energies) that is equal to the product of (x) the Market Value Price for each such Security on such date and (y) the
par amount of such Security held by, or on behalf of, Thunder Energies.

In the event no bids, or an insufficient number of bids, are received in connection with determining the Market Value of any Security on a Valuation Date, as applicable, the Market Value of such Security shall be zero ($0).

For the purposes of the definition of Market Value, accrued interest on any interest-bearing Securities as reported to the Valuation Agent by Thunder Energies (or the Investment Manager on behalf of Thunder Energies) shall be excluded in the determination of Market Value by the party making such determination.

**Market Value Price**

With respect to a Security at any date, the bid price for such Security at such date obtained from an Approved Source identified by Thunder Energies (or Investment Manager on behalf of Thunder Energies).

**Maturity**

The date upon which the principal or stated value of an investment becomes due and payable.

**Money Market**

The market in which short-term debt instruments (bills, commercial paper, bankers' acceptances, etc.) are issued and traded.

**Moody's Advance Amount**

As of any date of determination under the Over-Collateralization Test, the sum of (i) the sum for all Securities of the product of (1) the Market Value of such Securities multiplied by (2) the Moody's Advance Rate for the Asset Category applicable to such Securities under the Over-Collateralization Test, (ii) amounts on deposit in the Cash Account, less amounts, if any, that proposed to be disbursed by Thunder Energies, and (iii) the positive or negative value of the Net Accrual Amount as of such date.

**Moody's Investors Service (Moody's)**

A nationally-recognized credit rating agency that grades the investment quality of bonds in a 9-symbol system. The ranges extend from the highest investment quality, which is "Aaa", to the lowest credit rating, which is "C". Securities rated "Baa3" or greater are considered investment grade. Securities rated "Ba1" or below are considered to be speculative.

**Moody's OC Test Rating**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Security that is rated by both Moody's and S&P where the difference between such ratings is one category or less, the higher of such ratings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Security that is rated by both Moody's and S&P where the difference between such ratings is more than one category and the Moody's rating is higher, such Moody's rating;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Security that is rated by both Moody's and S&P where the difference between such ratings is more than one category and the Moody's rating is lower, the rating that is midway (based on the number of rating subcategories between such ratings) between such ratings (or, if the number of such rating subcategories between such ratings is odd, the higher of the two ratings nearest such midpoint);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) as reported to the Valuation Agent by Thunder Energies (or the Investment Manager on behalf of Thunder Energies), in the case of a Security that is not rated by Moody's but another obligation of the same issuer is rated by Moody's, then (a) if the obligation is of the same priority, such rating, (b) if the obligation is a senior unsecured obligation, then (1) one subcategory above such rating, if such Security is a senior secured obligation, with a rating of "Aaa" remaining the same, (2) two subcategories below such rating if such rating is "B1" or higher and such Security is a subordinated obligation, (3) one subcategory below such rating if such rating is between "B2" and "Ca", inclusive, and such Security is a subordinated obligation and (4) otherwise "C", (c) if the obligation is a subordinated obligation and such Security is a senior secured obligation, then (1) one subcategory above such rating if such rating is "Baa3" or higher, (2) two subcategories above such rating if such rating is between "Ba1" and "B2", inclusive, (3) one subcategory above such rating if such rating is "B3" and (4) otherwise such rating, (d) if the obligation is a subordinated obligation and such Security is a senior unsecured obligation, then (1) one subcategory above such rating if such rating is "B3" or higher and (2) otherwise such rating and (e) if the obligation is a senior secured obligation, then (1) one subcategory below such rating if such rating is "Ca" or higher and such Security is a senior unsecured obligation, (2) two subcategories below such rating if such rating is "Ca2" or higher and such Security is a subordinated obligation and (3) otherwise "C";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if Thunder Energies (or the Investment Manager on behalf of Thunder Energies) presents such Security to Moody's for an estimate of such Security's rating factor, the rating determined from such estimate; *provided that* pending receipt from Moody's of such estimate, such rating shall be "B3" if Thunder Energies (or the Investment Manager on behalf of Thunder Energies) certifies to the Investment Manager and the Valuation Agent that Thunder Energies (or the Investment Manager on behalf of Thunder Energies) believes that such estimate will equate to a rating of at least "B3";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) in the case of a Security that is not rated by Moody's and no other obligation of the same issuer is rated by Moody's then (1) if such Security is rated by S&P, (a) one subcategory below the Moody's equivalent of the rating assigned by S&P if such rating is "BBB-" or higher and (b) two subcategories below the Moody's equivalent of the rating assigned by S&P if such rating is "BB+" or lower or (2) if such Security is not rated by S&P but another obligation of Thunder Energies is rated by S&P (a "parallel security"), and the Moody's equivalent of the rating of such parallel security is determined in accordance with the methodology set forth in clause (1) hereof, the rating determined in accordance with the methodology set forth in clause (iv) above (for such purpose treating the parallel security as if it were rated by Moody's at the rating determined pursuant to this subclause (2); and (vii) in the case of a Security that is only rated by Moody's (including any estimated rating), such Moody's rating.

**Municipals**

**Net Accrual Amount**

As of any Valuation Date, an amount, which may be positive or negative, equal to (i) as determined by Thunder Energies (or the Investment Manager on behalf of Thunder Energies), since the last Interest Payment Date, the aggregate amount of accrued interest paid or payable to Thunder Energies on all interest-bearing Securities as of such date minus (ii) the sum of (a) the aggregate amount of accrued interest payable by Thunder Energies on the next succeeding Interest Payment Date in respect of the Investors Capital and (b) the Investment Manager's good faith estimate of the aggregate amount of accrued and unpaid fees and expenses of Thunder Energies, including any fees and expenses payable under the Agreement and Permitted Encumbrances

**Net Cash Flow**

A measure of a portfolio's or company's financial health. Equals cash receipts minus cash payments over a given period of time; or equivalently, net profit plus amounts charged off for depreciation, depletion, and amortization. Also called cash flow.

**Non**-**Investment or Speculative Grade Fixed Income Bonds**

A bond issued with a fixed rate of interest with a credit rating of "Ba1" or lower by Moody's or "BB+" or lower by Standard & Poor's. These securities are also known as high yield, speculative, or "junk" bonds. For purposes of this IPS, Non-Investment Grade Fixed Income Bonds are comprised of fixed rate Corporate Securities and fixed rate Government Securities with Non-Investment or Speculative Grade Ratings.

**Non-Investment or Speculative Grade Rating(s)**

Various alphabetical and numerical designations or ratings are assigned by Moody's Investors Service, Standard & Poor's Ratings Services, and other nationally recognized statistical rating organizations to give relative indications of bond and note creditworthiness. Standard & Poor's uses the following lettering system for each rating category and "+", flat or "-" to indicate steps within each category, starting with a rating from highest to lowest credit quality of: AAA, AA, A, BBB, BB, B, CCC, CC, C, and D for default. Moody's Investors Services uses the following lettering system for each rating category and "1", "2" or "3" to indicate steps within each category, starting with a rating highest to lowest credit quality of: Aaa, Aa, A, Baa, Ba, B, Caa, Ca, and C. Any rating category below the top four rating categories without regard to their sub-classification are considered non-investment or speculative grade ratings (e.g. "BB+" or lower by Standard & Poor's and "Ba1" or lower by Moody's). Nonetheless, this IPS does not allow the purchase or holding of Securities rated below "B-" by Standard & Poor's or "B3" by Moody's.

**Option (on a Fixed Income Security)**

The right or privilege to either buy (call option) or sell (put option) a designated amount of a particular fixed income security or class of securities during a time period ending on the expiration date of the option.

**Over-Collateralization Test/OC Test**

The test that is satisfied as of any Business Day if (a) the sum, as of such Business Day, of (i) the Outstanding principal amount of Investors Capital is less than or equal to (b) the Advance Amount.

For the purposes of the Over-Collateralization Test, Thunder Energies (or the Investment Manager on behalf of Thunder Energies) shall assign each Security to one of the following categories (each, an "Asset Category") commencing upon the initial acquisition thereof:

<u>Asset Category A Investments</u> means Cash.

<u>Asset Category B Investments</u> means Cash Equivalents.

<u>Asset Category C Investments</u> means U.S. Treasuries.

<u>Asset Category D Investments</u> means U.S. Agencies.

<u>Asset Category E-1 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of at least "AAA" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of at least "Aaa" by Moody's for the purposes of calculating the Moody's Advance Amount.

<u>Asset Category E-2 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of "AA+", "AA" or "AA-" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of "Aa1", "Aa2" or "Aa3" by Moody's for the purposes of calculating the Moody's Advance Amount.

<u>Asset Category E-3 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of "A+", "A" or "A-" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of "A1", "A2" or "A3" by Moody's for the purposes of calculating the Moody's Advance Amount.

<u>Asset Category E-4 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of "BBB+", "BBB" or "BBB-" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of Baa1", "Baa2" or "Baa3" by Moody's for the purposes of calculating the Moody's Advance Amount.

<u>Asset Category E-5 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of "BB+", "BB" or "BB-" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of "Ba1", "Ba2" or "Ba3" by Moody's for the purposes of calculating the Moody's Advance Amount.

<u>Asset Category E-6 Investments</u> means Corporate Securities which (i) are Performing, (ii) are priced by an Approved Source, and (iii) have an S&P OC Test Rating of "B+", "B" or "B-" by S&P for the purposes of calculating the S&P Advance Amount or a Moody's OC Test Rating of "B1", "B2" or "B3" by Moody's for the purposes of calculating the Moody's Advance Amount.

**Over-Collateralization Failure**

The existence of a Collateralization Shortfall Date which has not at any time been remedied *provided that* the same does not qualify as an Event of Default under the Agreement due to failure to remedy such under-collateralization.

**Over-Collateralization Test Report**

The report substantially in the form set out in the Agreement and Valuation Agent Agreement.

**Over-the-Counter (OTC)**

The market for securities and traded products that are not listed on the major exchanges. OTC options are options with negotiated premium, strike price, and expiration date.

**Peer Group**

An opinion of a group of analysts that the price of a security will increase or decrease at roughly the same rate as the market as a whole, as measured by a broad-based index.

**Performing**

With respect to any Securities, the issuer of such Securities is not in default of any payment obligations with respect thereof.

**Portfolio**

A collection of investments owned, managed, or overseen by an individual or investment manager, a board or an organization.

**Private Placements**

The sale of securities to a relatively small number of select investors as a way of raising capital. Investors involved in private placements are usually large banks, mutual funds, insurance companies and pension funds. Private placement is the opposite of a public issue, in which securities are made available for sale on the open market.

**Prudent Person Rule**

An investment standard where the Investment Manager (investment manager) may invest in a security if it is one which would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital.

**Puts**

An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.

**Rate of Return**

The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond of the current income return.

**Rating Agency**

Each nationally recognized securities rating agency or agencies designated by the Issuer to provide a rating or ratings for a Series of Notes and, initially, means Moody's and S&P, or, if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, any other nationally recognized securities rating agency designated by the Issuer.

**Rating Agency Confirmation**

With respect to any specified action or determination, receipt by Thunder Energies (or the Valuation Agent on its behalf) and the Investment Manager of written confirmation by each Rating Agency which has assigned ratings to the Investors Capital that such specified action, determination or appointment will not result in reduction or withdrawal of any of the ratings currently assigned to the Investors Capital by such Rating Agency.

**Rating Agency Tables**

The tables applicable to the Rating Agencies set out at the end of these definitions and procedures and specifying the Advance Rates.

**Reallocation Period**

Shall have such meaning as set forth in Section 4.2.

**Rebalancing**

The action of adjusting allocations relative to their targets or ranges to adjust for actual or anticipated market movements

**Registered Investment Adviser (RIA)**

Describe an Investment Adviser who is registered with the Securities and Exchange Commission or a state's securities agency. The term has been popularized due to its use within the Investment Advisers Act of 1940 and its association to the term "Investment Advisor" ("IA") (spelled "Investment Adviser" in U.S. financial law). An IA is defined by the Securities and Exchange Commission as an individual or a firm that is in the business of giving advice about securities.

**Reporting Date**

The last Business Day of each calendar month.

**Reserve Currency Benchmark Country**

Reserve Currency Benchmark Countries are those countries in the Barclays Capital International Fixed Income Index whose currency is held in significant quantities by other national governments as part of their foreign exchange reserves. Reserve currencies typically consist of the U.S. Dollar, the Euro, the British Pound, and the Japanese Yen.

**S&P Advance Amount**

As of any date of determination under the Over-Collateralization Test, the sum of (i) the sum for all Securities of the product of (1) the Market Value of such Securities multiplied by (2) the S&P Advance Rate for the Asset Category applicable to such Securities under the Over-Collateralization Test, (ii) amounts on deposit in the Cash Account, less amounts, if any, proposed to be disbursed by Thunder Energies, and (iii) the positive or negative value of the Net Accrual Amount as of such date.

**S&P OC Test Rating**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to any Security with an S&P issuer credit rating, such rating;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) as reported to the Valuation Agent by the Investment Manager, with respect to any Security without an S&P issuer credit rating, but whose issuer, or the unconditional and irrevocable guarantor of such issue, is rated by S&P, the senior unsecured S&P rating of such issuer or such unconditional and irrevocable guarantor, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) as reported to the Valuation Agent by the Investment Manager, with respect to any Security without an S&P issuer credit rating, and without an issuer or unconditional and irrevocable guarantor of such issue rated by S&P, but with a public Moody's senior unsecured rating of such issuer or unconditional and irrevocable guarantor of such issue, the S&P rating as set forth opposite the applicable public Moody's rating in the S&P OC Test Rating Chart;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) with respect to any Security not covered in (i) through (iii) above, the rating of the issue, issuer, or such unconditional and irrevocable guarantor, as the case may be, as privately assessed by S&P at Thunder Energies's or the Investment Manager's request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) with respect to any Security not covered in (i) through (iv) above, "CCC-".

**S&P OC Test Rating Chart**

The chart set forth below:

---

| | |
|:---|:---|
| <u>Moody's Rating</u> | <u>Mapped S&P Rating</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aaa | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AA- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Aa3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BBB- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baa3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BB- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ba3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC+ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Caa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CCC- |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NR or below Caa1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NR |

---

**Securities**

All Cash, Cash Equivalents, Government Securities, and Corporate Securities. Securities which Thunder Energies has contracted to purchase shall not be deemed to be owned by Thunder Energies until settlement of such purchase and Securities which Thunder Energies has contracted to sell shall not cease to be Securities for the purposes of the Security until settlement of such sale.

**Securities and Exchange Commission (SEC)**

**Security**

Instrument that signifies an ownership position in a corporation (stock), a creditor relationship with a corporation or governmental body (bond), or rights to ownership such as those represented by an option, subscription right, and subscription warrant. For purposes of this IPS, security investments by Thunder Energies are restricted to bonds or debt instruments.

**Short-Term**

Usually one year or less, often used to refer to bonds or loans.

**Short Sales**

Selling securities that are not owned and buying them back later to: 1) take advantage of an anticipated decline in the price; or 2) to protect a profit in a long position.

**Sovereign Debt**

A bond or security issued by a foreign government or government sponsored agency.

**Straddles**

An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.

**Standard** & **Poor's (S&P)**

A nationally-recognized credit rating agency that grades the investment quality of bonds in a 10-symbol system. The ranges extend from the highest investment quality, which is "AAA", to the lowest credit rating, which is "D". Securities rated "BBB-" or greater are considered investment grade. Securities rated "BB+" or below are considered non-investment or speculative grade.

**Standard Deviation**

A statistical measure of the historical volatility of a bond portfolio, usually computed using 36 monthly returns. More generally, a measure of the extent to which numbers are spread around their average.

**Stocks**

Represent a portion of ownership in a company. Sometimes the shares have voting rights, but not generally.

**Swap**

Private agreement between two companies to exchange cash flows in the future according to a prearranged formula.

**Time-weighted**

The regular yearly return over several years that would have the same return value as combining the actual annual returns for each year in the series.

**U.S. Agencies**

Negotiable debt obligations of a United States government sponsored agency that is backed by, but not guaranteed by, the United States government.

**U.S. Agency Mortgage Derivatives**

Negotiable debt obligations of a United States government sponsored agency that is backed by mortgage loans guaranteed by the United States government.

**U.S. Treasuries** 

Negotiable debt obligations issued and guaranteed by the full faith and credit of the United States of America.

**U.S. Treasury Bills**

A non-interest bearing discount security issued by the U.S. Treasury typically issued to mature in three months, six months or one-year.

**U.S. Treasury Bonds**

Long-term U.S. Treasury securities having initial maturities of more than ten years.

**U.S. Treasury Notes**

Intermediate-term U.S. Treasury securities having initial maturities of from one-year to ten years.

**U.S. All Urban Consumers Price Index (CPI)**

An inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. The CPI is published monthly and also called cost-of-living index or measurement on inflation.

**U.S. Corporate Bonds**

Securities issued in the U.S. market by U.S. corporations or foreign corporations (Yankee bonds).

**U.S. Government Sponsored Entities (GSE's)**

Issuer that benefits from sponsorship with or underlying guarantee from the U.S. government entity.

**U.S. Multi-National Corporate Bonds**

A corporation issues bonds that have its facilities and other assets in at least one country other than its home country (United States). Such companies have offices and/or factories in different countries and usually have a centralized head office where they co-ordinate global management. Very large multinationals have budgets that exceed those of many small countries.

**Unquoted Investments**

Securities other than Cash, Cash Equivalents or Government Securities for which the Market Value has not been obtained from an Approved Source on the preceding Valuation Date.

**Valuation Agent**

The entity designated by Thunder Energies under the Agreement to perform services to verify that the Securities meet the Over-Collateralization Test and other reporting requirements of the Agreement.

**Valuation Date**

Means (a) an Interest Payment Date (after giving effect to the distributions to be made on such date), (b) a Reporting Date, (c) the Wednesday of each calendar week which does not include an Interest Payment Date or Reporting Date or, if such Wednesday is not a Business Day, the immediately preceding Business Day or (d) for the purpose of determining the Market Value Price of an Security at any date when the Issuer is not, or the Issuer (or the Investment Manager on its behalf) reasonably believes that it is not, in compliance with any covenant relating to the Over-Collateralization Test, the date on which the most current pricing information with respect to such Security is reasonably available; provided, that in no event shall a Valuation Date occur until the later of (i) the thirtieth (30<sup>th</sup>) Business Day following the Closing Date (or such earlier date upon which all Pending Deliverables are delivered) and (ii) such date when an Investment Management Agreement has been executed and any Security is no longer held solely as Cash or invested in U.S. Treasuries.

**Venture Capital**

Funds made available for startup firms and small businesses with exceptional growth potential. Managerial and technical expertise is often also provided. Also called risk capital.

**Volatility**

The relative rate at which the price of a security moves up and down. Volatility is found by calculating the annualized standard deviation of daily change in price. If the price of a bond moves up and down rapidly over short time periods, it has high volatility. If the price almost never changes, it has low volatility.

**Yield**

For bonds and notes, the coupon rate divided by the market price. This is not an accurate measure of total return, since it does not factor in capital gains. For securities, the annual dividends divided by the purchase price. This is not an accurate measure of total return, since it does not factor in capital gains.

**<u>EXHIBIT B</u>**

COLLibrary 0123869.0596134 359104v8

## Ex1A-6

**Exhibit 6.1**

**AMENDMENT #1 TO THE CONVERTIBLE PROMISSORY NOTE DATED MAY 13, 2022**

This Amendment #1 ("Amendment") to the Convertible Promissory Note dated May 13, 2022, is made effective as of May 13, 2022, by and among Thunder Energies Corporation, a Florida corporation (the "Company") and Turvata Holdings Limited ("Purchaser") (collectively, the "Parties"). Capitalized terms used but not defined herein will have the meanings assigned to them in the Convertible Promissory Note (as defined below).

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company and Purchaser are parties to that certain Convertible Promissory Note (the "Convertible Promissory Note") dated May 13, 2022; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; B. The Parties desire to amend the Convertible Promissory Note as set forth expressly below.

NOW THEREFORE, and no other considerations of the execution and delivery of the Amendment and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Delete Section 1.1 paragraph 2, "Conversion Rights shall not vest until such time as the Holder's
consideration, RoRa Prime Coin is " live" on **a** US exchange and available through a mutually agreed upon cryptocurrency
wallet such as NyX, Exodus, Ledger, TREZOR Model T Wallet, ZenGo, or Atomic. The expected date for being live is June 15, 2022. The parties
agree to establish a time is of the essence date of August 15, 2022 for Holder to meet the " live" requirement. Should Holder
not meet the " live" requirement by August 15, 2022 then Borrower shall return all RoRa Prime Coins and Holder shall release
all claims on any shares or conversion rights".

Replace Section 1.1 paragraph 2 with "The Convertible Promissory Note shall not be enforceable until such time as the Holder's consideration, RoRa Prime Coin is " live" on **a** US exchange and available through a mutually agreed upon cryptocurrency wallet such as NyX, Exodus, Ledger, TREZOR Model T Wallet, ZenGo, or Atomic. The expected date for being live is November 1, 2022. The parties agree to establish a time is of the essence date of May 1, 2023 for Holder to meet the " live" requirement.

Should Holder not meet the " live" requirement by May 1, 2023, then Borrower shall return all RoRa Prime Coins and Holder shall release all claims on any shares or Convertible Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Delete Section 1.2(b), "Conversion Price During Major Announcements", in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Delete Section 1.6(d), "Adjustment Due to Dilutive Issuance. If, at any time when any Notes are
issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold,
any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions
or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance
(or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the
Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance".

Replace Section 1.6(d) with, "Adjustment Due to Dilutive Issuance. Shall not be effective nor vest until such time as the Holder's consideration, RoRa Prime Coin is "live" on a US exchange and available through a mutually agreed upon cryptocurrency wallet such as NyX, Exodus, Ledger, TRZOR Model T Wallet, ZenGo, or Atomic. If, at any time after RoRa Prime Coin is "live" on a US exchange and available through a mutually agreed upon cryptocurrency wallet such as NyX, Exodus, Ledger, TRZOR Model T Wallet, ZenGo, or Atomic any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a "Dilutive Issuance"), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Amendment shall be deemed part of, but shall not take precedence over and supersede any provisions
to the contrary contained in the Convertible Promissory Note except, as specifically modified hereby, all of the provisions of the Convertible
Promissory Note, which are not in conflict with the terms of this Amendment, shall remain in full force and effect.

IN WITNESS WHEREOF, the Company and the undersigned Purchaser have caused this Agreement to be executed as of the date first written above.

COMPANY

<u>/s/ Ricardo Haynes</u> 

THUNDER ENERGIES CORPORATION

Name: Ricardo Haynes

Title: President & CEO

PURCHASER"

Turvata Holdings Limited

By: <u>/s/ Duane Lee</u> 

Name: Duane Lee

Title: CEO

## Ex1A-6

**Exhibit 6.2**

![](dalmore.jpg)

**<u>Broker-Dealer Agreement</u>**

This agreement (together with exhibits and schedules, the "<u>Agreement</u>") is entered into by and between Thunder Energies Corp ("<u>Client</u>"), a Florida Corporation, and Dalmore Group, LLC., a New York Limited Liability Company ("Dalmore"). Client and Dalmore agree to be bound by the terms of this Agreement, effective as of January 10, 2023 (the "<u>Effective Date</u>"):

**WHEREAS,** Dalmore is a registered broker-dealer providing services in the equity and debt securities market, including offerings conducted via exemptions from registration with the Securities and Exchange Commission ("<u>SEC</u>");

**WHEREAS,** Client is offering securities directly to the public in an offering exempt from registration under Regulation A (the "<u>Offering</u>"); and

**WHEREAS**, Client recognizes the benefit of having Dalmore as a broker dealer of record and service provider for investors who participate in the Offering (collectively, the "<u>Investors</u>").

**NOW, THEREFORE**, in consideration of the mutual promises and covenants contained hereinand for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. Appointment, Term, and Termination.

a. **Services**. Client hereby engages Dalmore to perform the services listed on <u>Exhibit A</u> attached hereto and made apart
hereof, in connection with the Offering (the " <u>Services</u> "). Unless otherwise agreed to in writing by the parties, the
services to be performed by Dalmore are limited to those Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. **Term**. The Agreement will commence on the Effective Date and will
remain in effect for a period of twelve (12) months and will renew automatically for successive renewal terms of twelve (12) months each
unless any party provides notice to the other party of non-renewal at least sixty (60) days prior to the expiration of the current term.
If Client defaults in performing the obligations under this Agreement, the Agreement may be terminated (i) upon thirty (30) days written
notice if Client fails to perform or observe any material term, covenant or condition to be performed or observed by it under this Agreement
and such failure continues to be unremedied, (ii) upon written notice, if any material representation or warranty made
by Client proves to be incorrect at any time in any material respect, or (iii) upon thirty (30) days written notice if Client or Dalmore
commences a voluntary proceeding seeking liquidation, reorganization or other relief, or is adjudged bankrupt or insolvent or has entered
against it a final and unappealable order for relief, under any bankruptcy, insolvency or other similar law, or either party executes
and delivers a general assignment for the benefit of its creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Compensation.** As compensation for the Services, Client shall pay to Dalmore the following fees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. a fee equal to one percent (1%) on the aggregate amount raised by the
Client (the " <u>Offering Fee</u> "). The Offering Fee shall only be payable after the Financial Industry Regulatory Authority
(" <u>FINRA</u> ") department of Corporate Finance issues a no objection letter (the " <u>No Objection Letter</u> ")
for the Offering. Client authorizes Dalmore to deduct the Offering Fee directly from the Client's third-party escrow or payment
account.

![](dalmore.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. a one-time expense fee of five thousand ($5,000) for out-of-pocket expenses incurred by Dalmore (the " <u>Expense Fee</u> ").
The Expense Fee is due and payable upon execution of this Agreement. The Expense Fee shall cover expenses anticipated to be incurred by
the firm such as FINRA filings and any other expenses incurred by Dalmore in connection with the Offering. Notwithstanding the foregoing,
Dalmore will refund to the Client any portion of the Expense Fee that remains unused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. A one-time consulting fee of twenty thousand ($20,000) (the " <u>Consulting Fee</u> ") which is due and payable within five (5) days of receipt of the No Objection Letter. In the event the Consulting Fee is
not paid by the first closing, Client authorizes Dalmore to deduct the Consulting Fee directly from the Client's third-party escrow
or payment account upon the first closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Regulatory Compliance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Client and all its third-party providers shall at all times (i) maintain all required registrations
and licenses, including foreign qualification, if necessary; and (iii) pay all related fees and expenses (including all fees associated
with FINRA filings), in each case that are necessary or appropriate to perform their respective obligations under this Agreement.

FINRA Corporate Filing Fee for this $50,000,000.00 best efforts offering will be $8,000.00 and will be a pass-through fee payable to Dalmore, from the Client, who will then forward it to FINRA as payment for the filing. This fee is due and payable prior to any submission by Dalmore to FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Client and Dalmore will each be responsible for supervising the activities and training of their respective
sales employees, as well as all of their other respective employees in the performance of functions specifically allocated to them pursuant
to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Client and Dalmore agree to promptly notify the other concerning any material communications from or with
any Governmental Authority or Self Regulatory Organization with respect to this Agreement or the performance of its obligations unless
such notification is expressly prohibited by the applicable Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Role of Dalmore.** Client acknowledges and agrees that Dalmore's sole responsibilities in connection with an Offering are set forth on Exhibit A, and that Dalmore is strictly acting in an administrative and compliance capacity as the broker dealer of record, and is not being engaged by the Client to act as an underwriter or placement agent in connection with the Offering. Dalmore will use commercially reasonable efforts to perform the Services. Dalmore (i) makes no representations with respect to the quality of any investment opportunity; (ii) does not guarantee the performance of any Investor; (iii) is not soliciting or approaching investors in connection with the Offering, (iv) is not an investment adviser, does not provide investment advice and does not recommend securities transactions, (v) in performing the Services is not making any recommendationas to the appropriateness, suitability, legality, validity or profitability of the Offering, and (vi) does not take any responsibility for any documentation created and used in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Indemnification.** Client shall indemnify and hold Dalmore, its affiliates and their representatives and agents harmless from, any and all actual or direct losses, liabilities, judgments, arbitration awards, settlements, damages and costs (collectively, "<u>Losses</u>"), resulting from or arising out of any third party suits, actions, claims, demands or similar proceedings (collectively, "Proceedings") to the extent they are based upon (i) a breach of this Agreement by Client, (ii) the wrongful acts or omissions of Client, or (iii) the Offering.

![](dalmore.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;6. **Confidentiality.** For purposes of this Agreement, the term "Confidential Information" means all confidential and proprietary information of a party, including but not limited to (i) financial information, (ii) business and marketing plans, (iii) the names of employees and owners, (iv) the names and other personally-identifiable information of users of the third-party provided online fundraising platform, (v) security codes, and (vi) all documentation provided by Client or Investor, but shall not include (i) information already known or independently developed by the recipient without the use of any confidential and proprietary information, or (ii) information known to the public through no wrongful act of the recipient. During the term of this Agreement and at all times thereafter, neither party shall disclose Confidential Information of the other party or use such Confidential Information for any purpose without the prior written consent of such other party. Without limiting the preceding sentence, each party shall use at least the same degree of care in safeguarding the other party's Confidential Information as it uses to safeguard its own Confidential Information. Notwithstanding the foregoing, a party may disclose Confidential Information (i) if required to do by order of a court of competent jurisdiction, provided that such party shall notify the other party in writing promptly upon receipt of knowledge of such order so that such other party may attempt to preventsuch disclosure or seek a protective order; or (ii) to any applicable governmental authority as required by applicable law. Nothing contained herein shall be construed to prohibit the SEC, FINRA, or other government official or entities from obtaining, reviewing, and auditing any information, records, or data. Client acknowledges that regulatory record-keeping requirements, as well as securities industry best practices, require Dalmore to maintain copies of practically all data, including communications and materials, regardless of any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;7. **Notices**. Any notices required by this Agreement shall be in writing and shall be addressed, and delivered or mailed postage prepaid, or faxed or emailed to the other parties hereto at such addresses as such other parties may designate from time to time for the receipt of such notices. Until further notice, the address of each party to this Agreement for this purpose shall be the following:

If to the Client:

**Thunder Energies Corp**

1100 Peachtree St. NE Suite 200

Atlanta, GA. 30309

Attn Ricardo Haynes, President/CEO Tel: (404)793-1956, (909) 297-8844

Email: rhaynes@thunderenergiescorp.com

If to Dalmore:

**Dalmore Group, LLC**

530 7th Avenue, Suite 902

New York, NY 10018

Attn: Etan Butler, Chairman

Tel: 917-319-3000

Email: etan@dalmorefg.com

![](dalmore.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Miscellaneous.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. ANY DISPUTE OR CONTROVERSY BETWEEN THE CLIENT AND PROVIDER RELATING TO OR ARISING OUT OF THIS AGREEMENT WILL BE SETTLED BY ARBITRATION BEFORE AND UNDER THE RULES OF THE ARBITRATION COMMITTEE OF FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. This Agreement is non-exclusive and shall not be construed to prevent either party from engaging in any other business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. This Agreement will be binding upon all successors, assigns or transferees of Client. No assignment of this Agreement by either party will be valid unless the other party consents to such an assignment in writing. Either party may freely assign this Agreement to any person or entity that acquires all or substantially all of its business or assets. Any assignment by the either party to any subsidiary that it may create or to a company affiliated with or controlled directly or indirectly by it will be deemed valid and enforceable in the absence of any consent from the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Neither party will, without prior written approval of the other party, reference such other party in any advertisement, website, newspaper, publication, periodical or any other communication, and shall keep the contents of this Agreement confidential in accordance with the provisions set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. THE CONSTRUCTION AND EFFECT OF EVERY PROVISION OF THIS AGREEMENT, THE RIGHTS OF THE PARTIES UNDER THIS AGREEMENT AND ANY QUESTIONS ARISING OUT OF THE AGREEMENT, WILL BE SUBJECT TO THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES TO THE EXTENT SUCH APPLICATION WOULD CAUSE THE LAWS OF A DIFFERENT STATE TO APPLY. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. If any provision or condition of this Agreement is held to be invalid or unenforceable by any court, or regulatory or self-regulatory agency or body, the validity of the remaining provisions and conditions will not be affected and this Agreement will be carried out as if any such invalid or unenforceable provision or condition were not included in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. This Agreement sets forth the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior agreement relating to the subject matter herein. The Agreement may not be modified or amended except by written agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. This Agreement may be executed in multiple counterparts and by facsimile or electronic means, each of which shall be deemed an original but all of which together shall constitute one and the same agreement.

**[SIGNATURES APPEAR ON FOLLOWING PAGE(S)]**

![](dalmore.jpg)

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **CLIENT: Thunder Energies Corp** | **CLIENT: Thunder Energies Corp** |
| By | /s/ Ricardo Haynes |
| Name: | Ricardo Haynes |
| Its: | President/CEO |
| **Dalmore Group, LLC** | **Dalmore Group, LLC** |
| By | /s/ Etan Butler |
| Name: | Etan Butler |
| Its: | Chairman |

---

![](dalmore.jpg)

**Exhibit A**

**Services:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Review Investor information, including KYC (Know Your Customer) data, AML (Anti-Money Laundering),
 OFAC compliance background checks (it being understood that KYC and AML processes may be provided by a qualified third party);

ii. Review each Investor's subscription agreement to confirm such Investor's participation in
the Offering, and provide confirmation of completion of such subscription documents to Client;

iii. Contact and/or notify the issuer, if needed, to gather additional information or clarification on an
Investor;

iv. Keep Investor information and data confidential and not disclose to any third-party
 except as required by regulatory agencies or in our performance under this Agreement (e.g. as needed for AML and background
 checks);

v. Coordinate with third party providers to ensure adequate review and compliance;

vi. Provide, or coordinate the provision by a third party, of an "invest now"
payment processing mechanism, including connection to a qualified escrow agent.

## Ex1A-6

**Exhibit 6.3**

**LAS VEGAS ACES**

**SPONSORSHIP AGREEMENT**

This Sponsorship Agreement (this <u>"Agreement")</u> is dated <u>December 5th</u> , 2022 (the <u>"Effective Date"),</u> by and between Las Vegas Basketball, LP <u>("Owner"),</u> and the Sponsor entity set forth below <u>("Sponsor"),</u> and consists of (x) the basic provisions and Elements set forth in <u>Attachment 1</u> (attached hereto and incorporated herein by this reference) and (y) the Terms and Conditions set forth in <u>Exhibit A</u> (attached hereto and incorporated herein by this reference).

Capitalized terms used in this Agreement, but not otherwise defined on this cover page, shall have the respective meanings ascribed to them in <u>Attachment 1</u> and <u>Exhibit A.</u> All exhibits attached hereto and referred to herein are hereby incorporated and made a part of this Agreement. This Agreement may be executed in more than one counterpart, including by facsimile or electronic or PDF signature, each of which will be deemed to be an original, but all of which will constitute one and the same agreement.

Owner is the owner and operator of the Las Vegas Aces <u>("Team")</u> of the Women's National Basketball Association <u>("WNBA")</u> that plays its home games at a sports and entertainment arena in Las Vegas, Nevada (the <u>"Venue"),</u> which is currently designated at Michelob Ultra Arena. Sponsor desires to acquire certain marketing and promotional rights with respect to the Team. Accordingly, in exchange for the consideration provided by Sponsor as set forth on <u>Attachment 1,</u> Owner agrees to provide or cause to be provided the Elements described on <u>Attachment 1</u> in accordance with the terms, conditions and other provisions of this Agreement.

---

| | |
|:---|:---|
| **<u>Owner:</u>** | **<u>Sponsor:</u>** |
| **Las Vegas Basketball, LP** | **Thunder Energies Corp.** |
| By: <u>/s/ Matt Delsen</u> | By: <u>/s/ Ricardo Haynes</u> |
| Name: Matt Delsen | Name: Ricardo Haynes |
| Title: COO/CFO | Title: Principal |
| Las Vegas Basketball, LP<br> Matthew Delsen<br> 11500 S. Eastern Ave, Suite 240<br> Henderson, NV 89052<br> mdelsen@lasvegasaces.com | Thunder Energies Corp.<br> Ricardo Haynes<br> 1100 Peachtree St. NE, Suite 200<br> Atlanta, GA 30309 |

---

with a copy to:

Holland & Hart LLP

9555 Hillwood Drive, 2nd Floor

Las Vegas, NV 89134

Attn: Greg Gilbert

Attn: Amber Lunn

**<u>ATTACHMENT 1</u>**

**<u>Term</u>** - This Agreement shall commence on the Effective Date and continue for three (3) Contract Years <u>("Term"),</u> unless sooner terminated in accordance with this Agreement. Each <u>"Contract Year"</u> shall mean each twelve (12) month period commencing on commencing on the Effective Date and continuing through December 31st, 2023 ("Initial Contract Year"). Except for the Initial Contract Year, each <u>"Contract Year"</u> thereafter shall mean each twelve (12) month period commencing on January 1st of a calendar year and conclude on December 31st of the following calendar year.

Sponsor shall notify Owner in writing on or before, July 15, 2025 of its request to extend the Initial Term by an additional two (2) Contract Years, commencing on January 1st, 2026 and expiring on December 3 Pt, 2027 ("Extension Term"). Owner, in its sole discretion, within ten (10) calendar days after receiving Sponsor's written notice of request to extend the Initial Term, shall notify Sponsor in writing of its decision on whether to extend the Initial Term. Should Owner agree to extend the Initial Term, this Agreement shall continue in full force and effect until December 3151, 2027, unless otherwise terminated in accordance with this Agreement. If Owner, elects to not agree to the Extension Term, this Agreement shall automatically terminate at the expiration of the Initial Term. As used in this Agreement, "Term" means the Initial Term and any Extension Term properly exercised and approved pursuant to this section.

All contracts, including this Agreement, are subject to all rules and regulations of the WNBA as they presently exist and as they may be amended or modified from time-to-time.

**<u>Cash Consideration for the Elements</u>** - Sponsor shall pay Owner the Fee as specified in the schedule set forth below (the <u>"Fee")</u> as consideration for the Elements pursuant to the payment schedule set forth below. As used in this Agreement, the <u>"Aggregate Total Fee"</u> shall mean a dollar amount equal to the sum of the Fee (if any). The Fee shall be due and payable as set forth below:

---

| | | |
|:---|:---|:---|
| **Payment Due Date** | **Payment Amount** | **Contract Year** |
| February 15, 2023<br> April 15, 2023<br>| $437,500 cash<br> $437,500 cash | Initial Contract Year<br> Effective Date - December 31, 2023 |
| January 15, 2024<br> April 15, 2024<br>| $450,625 cash<br> $450,625 cash | Contract Year 2<br> January 1, 2024 - December 31, 2024 |
| January 15, 2025<br> April 15, 2025<br>| $464,144 cash<br> $464,144 cash | Contract Year 3<br> January 1, 2025 - December 31, 2025 |
| January 15, 2026<br> April 15, 2026<br>| $478,068 cash<br> $478,068 cash | Contract Year 4<br> January 1, 2026 - December 31, 2026 |
| January 15, 2027<br> April 15, 2027<br>| $492,411 cash<br> $492,411 cash | Contract Year 5<br> January 1, 2027 - December 3 l, 2027 |

---

**<u>Elements</u>** - The Sponsor shall receive the following below-listed Elements during the Term, subject to any additional requirements pertaining to WNBA rules and regulations. All details surrounding the below Elements shall be subject to the Owner's prior approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>STRATEGIC BRANDING</u> 

1) Aces4Change Partner

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Exclusive Aces4Change Partnership Trip: sponsor included on an exclusive trip put
on by owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Dinner With Nikki & Becky:
VIP dinner with the two women that lead the Owner's franchise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Media Backdrop: inclusion in the media backdrop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Community Comer Partner: a program that brings nonprofits and different community
groups to the building on behalf of the four partners of Aces4Change.

2) Apron Signage:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. Michelob Ultra Arena: Sponsor will have a logo on the baseline apron position on the outside edge of the court, except for national broadcasts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Practice Facility: Sponsor will have a logo on the baseline apron position on the outside edge of the court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>DIGITAL ADVERTISING</u> 

3) Sponsor will receive LED rotational ribbon board exposure at each regular season home game, as determined by Owner. All design work provided by Sponsor for the ribbon board is subject to approval of Owner.

4) Subject to WNBA approval, Sponsor will receive DLP courtside rotational signage at each regular season, non-nationally televised home game, as determined by Owner. All design work provided by Sponsor for the courtside signage is subject to the approval of Owner.

5) Sponsor will receive LED scoreboard signage at each regular season home game, as determined by Owner. All design work provided by Sponsor for the scoreboard is subject to the approval of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>IN-GAME</u> 

6) Threes 4 Trees: for each three-pointer made during the season for the Aces, Sponsor and Owner will work together to donate to a sustainable cause here in Las Vegas. There will be a mention on each gameday of the program.

7) Energy Noise Meter: Sponsor will have a branded feature around the noise level within Michelob Ultra Arena.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>DIGITAL (SOCIAL)</u> 

8) What Fuels You: Working together to help showcase what Fuels the players on behalf of Thunder Energies. Will be shown on our website, social, during games and other events.

9) Off Season Asset Management: In the offseason we have players in Australia, Turkey, Italy, France, etc.. Each post about those players will tie in asset management thanks to Thunder Energies.

10) Financial Literacy Summit/Conference: We will work together to host a summit, conference, mini speaking series, or etc. to help educate either local Las Vegas or folks from all over the country.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>VIP HOSPITALITY</u> 

11) Four (4) Courtside Seats

12) Suite Nights: six (6) suite nights during the season.

13) Practice Facility Use: one (1) use of the practice facility.

14) Golf Outing: one (1) foursome in Owner's yearly golf outing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>IP</u> <u>& EXCLUSIV1TIES</u> 

15) Marks & Logos: rights to use Teams marks, logos and player inclusion in branded material. All design work provided by Sponsor for the courtside signage is subject to the approval of Owner.

16) Official Partner Designation: ability to use "Official Partner of the Las Vegas Aces" & "Aces4Change Partner" in all marketing materials

17) Category Exclusivity: Sponsor will have exclusivity within the asset management and mining categories.

**<u>Playoff Fees & Terms-</u>** In addition to the Fee set forth above, in the event the Team qualifies for the WNBA post-season playoffs during any Contract Year of the Agreement subject to relevant WNBA rules, Sponsor shall be required to purchase the Elements, which are subject to availability during playoffs and may change in Owner's sole discretion, for every game of each round of the playoffs in an amount equal to the Playoff Element Fee (as defined below). As used herein, the <u>'Playoff Element Fee"</u> means a flat fee in a dollar amount equal to (x) the Aggregate Total Fee (minus the ticket cost, if any, included in the Elements as measured at the applicable face value price per game) divided by eighteen (18) (or the then-current number of home games in the applicable season), and then multiplied by the actual number of home playoff games played by the Team. Furthermore, if the Team qualifies for the playoffs and if Sponsor has season tickets included in the Elements, Sponsor may be required to purchase the same number of playoff tickets for each home game at a to-be- determined escalated rate (the <u>"Playoff Ticket Fee");</u> provided, however, that if Sponsor's elements include individual game tickets, those tickets will not carry over as an Element into the playoffs. For each Contract Year, Sponsor shall pay to Owner the Playoff Element Fee and Playoff Ticket Fee within thirty (30) days after completion of the final playoff game by the Team.

**<u>WNBA Rules re: Signage and Other Advertising</u>** - The WNBA requires that the terms and conditions set forth below apply to this Agreement if Sponsor purchases any signage or other advertisement Elements from the Team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For nationally televised games, the WNHA will control all signage (including but not limited to courtside signage, pole pads, seat backs, message boards, rotating signage,
equipment and scoreboard underbelly) visible in the area of the court, locker room or any press interview area.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All advertising and promotions that depicts or refers to the Team or the Team's
players or coaches and is scheduled to run during a local telecast must be approved by Owner and WNBA. Commercial affidavits and tapes
for each local telecast must be submitted to the WNBA at the end of each broadcast calendar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All radio advertising that depicts or refers to the Team or the Team's players or
coaches and is scheduled to run during a local broadcast must be approved by Owner and WNBA. Commercial affidavits and tapes for each
local broadcast must be submitted to the WNBA at the end of each broadcast calendar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event the Team qualifies for the playoffs, any signage, promotional or sponsorship
presence within the Venue must be approved by Owner and WNBA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Advertising on the Team's website, any Team social networking page or the Team
mobile application may be subject to approval by Owner and WNBA and must adhere to all guidelines set forth by the WNBA, including any
size specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Sponsor may be included on Team social networking pages (as approved by Owner and
WNBA) for the following purposes: (i) to promote a Team event or program sponsored by Sponsor that will take place within Owner's 75-mile
home radius, and (ii) identify such Sponsor as the sponsor of team-related content on the Team Social Networking Page. Team will remove
all Sponsor content from any Team social networking page upon request by the WNBA.

\*\*\*\*\*

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

**TERMS AND CONDITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>TERM.</u>** The Term of this Agreement shall be as set forth in <u>Attachment 1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>ELEMENTS.</u>** 

(a) During the Term, Owner shall provide Sponsor with the elements set forth in <u>Attachment 1 ("Elements").</u> Costs, including but not limited to all materials for advertising such as artwork, radio and/or television copy and signage (collectively, <u>"Content")</u> associated with the production and execution of Elements, shall be the sole responsibility of Sponsor. Any third party licensing and rights required hereunder, including without limitation any and all necessary consents and clearances for the Content and the exploitation thereof (e.g., to players, leagues, players associations, artists, unions or guilds, or music royalties, synchronization fees, or public performance fees), shall be obtained and paid solely by the Sponsor. Out-of-pocket costs for promotions, client entertainment and all gifts and prizes provided in promotions and contests which are not specifically included in <u>Attachment 1</u> shall be paid for and provided by the Sponsor. Written request for scheduling of all promotions and receptions, if applicable, must be presented to Owner at least thirty (30) days in advance of the desired date and are subject to the exclusive and sole discretion of owner.

(b) Notwithstanding anything to the contrary contained **herein.** if Owner is unable to provide any of the Elements, the parties shall negotiate in good faith to identify substitute signage or promotional rights of comparable value or, if no such substitute signage or promotional rights are available, to mutually agree upon an appropriate adjustment in the fees payable by Sponsor hereunder. In the event the Owner elects to discontinue an Element which would eliminate or reduce Sponsor's Elements (e.g., Owner elects to discontinue an advertisement placement), Sponsor will receive a mutually agreeable replacement Element of equivalent value of a similar type as the unavailable Element. Sponsor acknowledges that, from time to time, certain portions of the Venue may undergo construction or repair, and that Sponsor may, as a result, lose the opportunity to obtain certain Elements. In that event, Owner will use commercially reasonable efforts to provide Sponsor with temporary placement for its signage in mutually agreeable locations or other mutually agreeable replacement benefits. If the parties are unable to agree upon the appropriate substitution or fee reduction, the matter shall be submitted to an arbitrator as more particularly described in Section 8 below.

(c) Notwithstanding anything to the contrary herein, Owner shall retain all rights to season seats, all parking passes, club passes, and VIP passes assigned to Sponsor. Should this Agreement be canceled, not renewed, or otherwise terminated, Sponsor shall return the foregoing and such assets shall remain the exclusive property of Owner.

(d) Except as expressly set forth in this Agreement, Sponsor's rights under this Agreement are non-exclusive and nothing in this Agreement prevents or limits the right or ability of the Owner to enter into contracts with any third party for marketing or other services, including third parties in the same or similar business category as Sponsor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>COST AND PAYMENT TERMS.</u> 

(a) In consideration for the Elements to be provided by Owner during the Term, Sponsor shall pay Owner as set forth on <u>Attachment 1</u>.

(b) In the event Owner does not receive any payment from Sponsor on or before the applicable payment due date, Owner may consider such failure to pay a material breach and may elect to charge Sponsor a late fee of three percent (3%) per month of the payment then due and owing until it is paid in full. In addition to and without limiting the foregoing, if Sponsor fails to cure such default within five (5) days of written notice, Owner may elect to terminate this Agreement pursuant to Section 6 below.

(c) Owner (or any of Owner's affiliates) may utilize in-kind trade consideration (if any), as set forth in <u>Attachment 1,</u> as needed over the course of the Term. If Owner does not fully utilize the full amount of its in-kind trade consideration during any particular Contract Year, as defined in <u>Attachment</u> <u>1</u>, Owner shall be entitled to utilize the unused portion of such consideration during the following Contract Year.

The foregoing amounts are net of any commissions owing to advertising agencies or other third parties and Owner shall have no responsibility for the payment of any such commissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>RULES RE: ADVERTISING.</u> 

(a) Owner shall require that certain rules and regulations be adhered to with respect to sponsorships and other advertising at the Venue' as further detailed on <u>Exhibit B</u> (attached hereto and incorporated herein by this reference). Owner reserves the right to update <u>Exhibit B</u> and any and all updates by Owner to Exhibit B shall be incorporated into this Agreement. Owner shall provide the updated Exhibit B to Sponsor within fifteen (15) days of requiring Sponsor to adhere to any such updates to <u>Exhibit B</u>. Therefore, any and all advertising and sponsorships resulting from this Agreement shall be subject to those rules and regulations as well as the consent of Owner as to content and presentation of any Elements including, but not limited to, quality, good taste, and to prevent any presentation that would reflect poorly on Owner, the Team, or the Venue. Notwithstanding anything to the contrary in this Agreement, and for the avoidance of doubt, Owner reserves the right to change the location of the Venue in its sole discretion, and in such event, to the extent the Elements are materially impacted then the terms of Section 2(b) above shall apply; provided that the parties hereto agree that temporary changes to the Venue location (i.e. less than five (5) games per season) shall not be deemed to have a material impact on Sponsor.

(b) Sponsor shall present the content and form of all advertising or promotional material under this Agreement (the "Advertisement Material"), if any, for review and approval by Owner reasonably in advance of the date(s) scheduled for the promotions to occur, and the Owner shall have the right to reject any such promotions which, in Owner's reasonable opinion: (1) fails to meet the requirements described above, or (2) may adversely affect, or be detrimental to the reputation, good will, or the best interests of the Owner.

(c) Time is of the essence with respect to each and every obligation of Sponsor under this Agreement and Sponsor hereby acknowledges that any delay will be disruptive to Owner and Owner's business. Sponsor shall be responsible for adhering to all deadlines imposed by the Owner with respect to the submission of Advertisement Material. Sponsor shall be responsible for checking the copy of all Advertisement Material for accuracy and providing the Owner with prompt written notice of errors or changes within the applicable deadlines. The Owner shall not be liable (for consequential damages or otherwise, whether or not foreseeable) to Sponsor for any errors or omissions relating to any Advertisement Materials.

(d) No contest or sweepstakes of any nature shall be part of any Advertisement Material unless Sponsor shall first submit full details thereof in writing to Owner, and Owner provides written prior approval of such contest or sweepstakes.

(e) Advertisement Material shall not contain: (i) misleading, unwarranted, exaggerated, or doubtful claims or statements, and Sponsor guarantees the truth of all claims and statements made in all Advertisement Materials; (ii) infringement of another person's or entity's rights, whether by plagiarism, copyright or trademark infringement, or otherwise; (iii) disparagement of any competitor or any competitor's goods or services; (iv) statements or announcements that are slanderous, obscene, profane, vulgar, repulsive, or offensive, either in theme or in treatment; and (v) mention by name of other generally advertised products or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>USE OF MARKS.</u> 

(a) Owner hereby grants Sponsor a non- exclusive, revokable, and limited right to use the Team name and logo (collectively, the <u>"Licensed Team Trademarks,"</u> as applicable) during the Term for solely for the promotional and marketing purposes in conjunction with the sponsorship arrangements provided for under this Agreement, provided that any use of the Licensed Team Trademarks by Sponsor (i) shall be subject to prior written approval in each case by Owner and WNBA Enterprises, LLC <u>("Enterprises")</u>, as more particularly set forth below, and (ii) must use the Team established logo-type, trademark, or service mark. The rights granted pursuant to this Section may not be licensed, transferred, or assigned by Sponsor, except in conjunction with an assignment of this Agreement to an Owner-approved assignee pursuant to the terms of this Agreement. Sponsor agrees that it will not at any time during the Term or thereafter attack the title or any rights of the <u>Licensed Team Trademarks</u> and will reasonably cooperate with Owner to protect any of the Owner's rights that may be questioned or threatened. Sponsor shall not make any alteration or changes to the <u>Licensed Team Trademarks</u> or display any <u>Licensed Team Trademarks</u> in an altered, cut- off, or truncated manner. Nothing in this Agreement grants any right to use any of the names, images, or likenesses of any Owner or Team players or coaches. Sponsor recognizes that it is not authorized to use, or authorize any other person to use, any <u>Licensed Team Trademarks</u> alone or in conjunction with other trademarks, trade names, or corporate names for any purpose whatsoever, including for the purpose of promoting Owner or the Agreement without the prior written approval of the Owner. Any use of any <u>Licensed Team Trademarks</u> in connection with an endorsement, express or implied, of any advertiser, Sponsor, product or service other than Sponsor is strictly prohibited.

(b) Sponsor hereby grants Owner a non- exclusive, limited license to use Sponsor's trademarks, trade names, and senrice marks (collectively, the <u>"Licensed Sponsor Trademarks,"</u> as applicable) during the Term for promotional and marketing purposes in conjunction with the sponsorship arrangements provided for under this Agreement. Any such use of the Licensed Sponsor Trademarks by Owner (i) shall be subject to prior approval by Sponsor (which approval shall not be unreasonably withheld or delayed), and (ii) must use Sponsor's established logo-type, trademark, or service mark.

(c) Except as otherwise explicitly set forth in this Section 5, nothing in this Agreement is intended to convey any ownership or other rights in the trademarks, service marks, copyrights, or other intellectual property rights <u>("Marks")</u> of either party hereto and ownership of all such Marks shall remain the property of the appropriate party, as the case may be. Except as otherwise specifically provided in this Agreement, nothing in this Agreement provides Sponsor any right or license to use the tradenames, trademarks, logos, copyrights, or other proprietary rights of any third party.

(d) Notwithstanding anything to the contrary above, in no event shall Sponsor have the right to use the Licensed Team Marks outside of the Owner's WNBA territory (i.e. 75-mile radius of Las Vegas) without obtaining the prior written approval of Owner.

(e) Nothing in this Agreement shall preclude Owner from using (i) the appearance of Licensed Sponsor Trademarks (in connection with the Elements) in photographs and video footage of Tearn games and events in perpetuity when used for any reason in any and all forms of media, whether now or existing or hereafter developed, or (ii) the sale after the Term of any remaining inventory of products (if any) bearing the Licensed Sponsor Trademarks created in connection with the Elements, all in accordance with WNBA Rules.

(f) Upon the expiration or termination of this Agreement, each party agrees to cease any and all use of the other party's Marks, except that both parties shall be given a reasonable opportunity (but in no event longer than three (3) months from the expiration or termination of this Agreement) to remove or replace signage or other materials featuring the other party's trademarks. Each party will be solely responsible for the removal or replacement of materials incorporating the other party's trademarks.

(g) The parties to this Agreement acknowledge that Enterprises has the exclusive right to use, and license others to use, (i) the trademarks, logos, uniforms, symbols, identifications and names of the WNBA and its teams <u>("WNBA Marks"),</u> (ii) photographs, video, and audio of WNBA games and/or WNBA events, and (iii) other WNBA-related content (e.g., likenesses of groups of players and game statistics) entitled to copyright, trademark, or other legal protection ((i)-(iii) referred to collectively as <u>"WNBA Intellectual Property"),</u> and (d) tickets to WNBA games or events <u>("WNBA Tickets").</u> No proposed use of WNBA Intellectual Property or WNBA Tickets may be made for any promotional or commercial purpose (e.g., contests or sweepstakes) without the express written consent of Enterprises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>TERMINATION.</u> 

(a) In the event that Sponsor fails to make any payments specified under this Agreement or is otherwise in material breach of this Agreement, Owner shall have the right, in addition to any other rights and remedies that may be available at law or otherwise, to elect to terminate this Agreement in its entirety and Owner shall be relieved of all obligations hereunder. In such event Owner shall be entitled to retain all Sponsor monies paid to date, or be reimbursed by Sponsor for Owner's out of pocket expenses, which monies shall be repaid by Sponsor to Owner upon Owner's on demand.

(b) Without prejudice to any other rights or remedies that the terminating party may have, either party may terminate this Agreement immediately by delivery of notice to the other if any of the following events shall occur: (i) if the other party files, or has filed against it, a bankruptcy or reorganization petition, makes an assignment for the benefit of creditors, becomes insolvent or is otherwise unable to pay its debts when due; or (ii) if the other party commits a material breach of this Agreement (other than for payment) and fails to cure such breach within fifteen (15) days after receipt of written notice from the other party, except that Sponsor's time period for curing a payment breach shall be five (5) days after receipt of written notice from Owner.

7. **<u>ASSIGNMENT.</u>** This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any party hereto (including, without limitation, via change of control of the ownership or equity of such party) without the prior written consent of the other party, except for (a) collateral assignments or pledges of, or grants of a security interest in, this Agreement (a <u>"Pledge")</u> by Owner to its lender(s) <u>("Pledgee(s)")</u> from time to time, (b) assignment by Owner to any purchaser or tnu1sforc.c. in any 8nlc or trurn,fer purnuwit to a Pledge under (a) above (including subsequent transfers in such chains of title), (c) assignment in connection with a imle of Owner or the Team (in whole or in part) to a buyer who assumes Owner's obligations hereunder, or (d) assignment by Owner to an affiliate. Neither the Pledgee nor any other financial institution which hereafter becomes a pledgee of this Agreement shall incur any obligations under this Agreement unless and until they are the purchaser in foreclosure.

8. **<u>ARBITRATION, WAIVER OF CONSEQUENTIAL DAMAGES, WAIVER OF JURY TRIAL.</u>**

(a) **<u>ARBITRATION.</u>** Other than any claim for equitable or injunctive relief, all other claims, disputes and other matters in question between the parties arising out of or relating to this Agreement shall be decided by binding arbitration before one mutually agreed upon neutral arbitrator in Las Vegas, Nevada in accordance with the Comprehensive Commercial Arbitration Rules of JAMS then in effect. The determination and award of the arbitrator shall be based upon application of existing substantive statutes and case law, interpretation in accordance with applicable contract law of this Agreement, and the evidence presented by the parties to the arbitrators. Each party shall bear its own costs in connection therewith, except that the prevailing party shall be entitled to recover, and the arbitrator shall be empowered to award, costs and reasonable attorneys' fees to the prevailing party.

(b) **<u>WAIVER OF CONSEQUENTIAL DAMAGES.</u>** IN ANY ACTION FOR DAMAGES ARISING OUT OF OR RELATING TO THIS AGREEMENT (EXCLUDING THOSE THIRD PARTY INDEMNITY OBLIGATIONS ARISING UNDER SECTION 16 HEREOF), NO PARTY SHALL BE LIABLE FOR OR RESPONSIBLE UNDER ANY CIRCUMSTANCES FOR ANY CONSEQUENTIAL, INDIRECT SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES.

(c) **<u>WAIVER OF JURY TRIAL.</u>** EXCEPT WITH RESPECT TO THIRD PARTY LAWSUITS AND INJUNCTIVE OR EQUITABLE RELIEF, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DEALINGS BETWEEN THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT COULD HAVE BEEN FILED IN ANY COURT AND THAT COULD RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT (EXCLUDING CLAIMS FOR INJUNCTIVE OR EQUITABLE RELIEF, AND CLAIMS FILED BY THIRD PARTIES), INCLUDING, BUT NOT LIMITED TO, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE PARTIES HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY FURTHER ACKNOWLEDGES AND AGREES THAT EACH HAS REVIEWED OR HAD THE OPPORTUNITY TO REVIEW THIS WAIVER WITH ITS RESPECTIVE LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH SUCH LEGAL COUNSEL.

__ Sponsor __ Owner

**9**. **<u>GOVERNING LAW & SUBORDINATION.</u>** This Agreement will be governed by and construed in accordance with the laws of the State of Nevada. This Agreement shall be subject to (a) any applicable federal, state or local laws, rules or regulations, (b) the constitution, bylaws, resolutions, and other rules, regulations, policies, directives, rulings and/or orders of any applicable sport governing body, including without limitation the WNBA, and (c) the rules, regulations, and/or policies of the Venue, in each case as in effect on the date hereof and as may be amended from time to time.

**10. <u>SEVERABILITY.</u>** If any provision of this Agreement shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid or unenforceable provision were omitted.

**11. <u>RELATIONSHIP OF PARTIES.</u>** The parties to this Agreement are independent contractors, and no partnership, joint venture, employment or fiduciary relationship between them is intended or created hereby. None of the parties shall have the right, power, or authority to waive any right, grant any release, make any contract or other agreement, or assume or create any obligation or responsibility, express or implied, on behalf of or in the name of the other parties or to bind the other parties in any manner for anything whatsoever or otherwise to act in the name of the other parties except as expressly set forth in this Agreement.

**12. <u>NOTICES.</u>** All notices required or permitted to be given under this Agreement shall be in writing, delivery by personal delivery, mail, registered or certified, postage prepaid, with return receipt requested, or facsimile. Notice by mail shall be sent concurrently with any facsimile notice. Notices shall be addressed to the parties at the address or telecopy number specified below, but each party may change its address or telecopy number by written notice in accordance with this Section. Notices delivered personally or by facsimile shall be deemed communicated as of actual receipt and notices by mail shall be deemed communicated three (3) days after mailing. Notices shall be delivered to the contacts indicated on the cover page to this Agreement.

**13. <u>AMENDMENT; WAIVER</u>** This Agreement may be modified or waived only by a separate writing signed by both parties. The failure of any party at any time to require performance by the other party of any provisions set forth herein shall in no way affect the parties' rights to enforce such provisions, nor shall waiver by either party of any breach of this Agreement be taken or held to be a waiver of any further breach of the same.

**14. <u>CONSTRUCTION.</u>** The parties agree that each party has reviewed this Agreement and has had the opportunity to have counsel review the same, and that the language used in this Agreement will be deemed to be the language chosen by the parties hereto to express their mutual intent and no rule of strict construction shall be applied against any party. Whenever required by the context, any gender shall include any other gender, the singular shall include the plural and the plural shall include the singular.

**15. <u>REMEDIES.</u>** The rights and remedies of the parties hereunder whether herein specified or otherwise, shall be cumulative and the exercise of one or more of them shall not preclude the exercise of any other rights or remedies they may have hereunder, or hy l;:iw.

**16. <u>INDEMNIFICATION.</u>**

(a) Owner hereby agrees to protect, defend, indemnify, and hold harmless Sponsor and its affiliates, as well as their respective officers, directors, shareholders, members, agents, subcontractors and employees (collectively, the <u>"Sponsor Indemnified Parties")</u> from and against any and all claims, debts, liabilities, demands, obligations, costs, fees, expenses, actions, and causes of action of any kind or nature whatsoever (including reasonable attorneys' fees) <u>("Claims"),</u> arising directly or indirectly from or out of any (i) breach by Owner of its covenants or obligations hereunder, or (ii) act or omission by Owner or Owner Indemnified Parties, except to the extent attributable to the negligence or willful misconduct of a Sponsor Indemnified Party.

(b) Sponsor hereby agrees to protect, defend, indemnify, and hold harmless Owner, Mandalay Bay, LLC, MGM Resorts International, WNBA, Enterprises, NBAP, NBA Media Ventures, NBA Digital, and the other WNBA teams and their licensees and designees, and each of their respective parents, affiliates, subsidiaries, partnerships, joint ventures, as well as their respective officers, directors, shareholders, members, agents, employees, tenants, and sponsors as well as the (collectively, the <u>"Owner Indemnified Parties</u>') from and against any and all Claims arising directly or indirectly from or out of any (i) breach by Sponsor of its covenants or obligations hereunder, (ii) Claims related to any use or purchase of any Sponsor product or service (including Sponsor subsidiary and affiliate products and services), (iii) act or omission by Sponsor or Sponsor Indemnified Parties, except to the extent attributable to the negligence or willful misconduct of an Owner Indemnified Party. Additionally, Sponsor hereby further agrees to protect, defend and indemnity Owner Indemnified Parties harmless from and against any and all Claims arising directly or indirectly from or out of the Content or Licensed Sponsor Trademarks.

**17. <u>FORCE MAJEURE.</u>** In the event that the performance of this Agreement is prevented because of an act of nature or force majeure or if the exhibition of any event is cancelled because of strike, lockout, labor dispute, or other cause of similar nature beyond the reasonable control of Owner, the same shall not constitute a breach of this Agreement by Owner, provided, that Owner uses commercially reasonable efforts to overcome or mitigate the effects of such occurrence. If any regular season WNBA games are cancelled during a particular Contract Year due to a player strike, management lockout, or comparable work stoppage (singly or together, a <u>"Work Stoppage"),</u> the following provisions shall apply:

(a) for purposes of this Section 17: (i) a regular season WNBA game shall not be considered cancelled if it is postponed and played at a later date; (ii) regular season WNBA games scheduled for a particular Contract Year shall be referred to as <u>"Scheduled Games;"</u> (iii) Scheduled Games for a particular Contract Year cancelled as the result of the Work Stoppage shall be referred to as <u>"Cancelled Games;"</u> (iv) the Contract Year during which the Work Stoppage occurs shall be referred to as the <u>"Work Stoppage Year;"</u> and (v) the Contract Year immediately following the Work Stoppage Year shall be referred to as the <u>"Post Work Stoppage Year;"</u>

(b) if fewer than twenty-five percent (25%) of a Contract Year's Scheduled Games are cancelled due to the Work Stoppage, there shall be no adjustment to the Aggregate Total Fee, as set forth in <u>Attachment 1</u>;

(c) if twenty-five percent (25%) or more of a Contract Year's Scheduled Games are cancelled due to the Work Stoppage, then Sponsor shall be obligated to pay the full amount of the Aggregate Total Fee due for the Work Stoppage Year, and the Aggregate Total Fee due for the Post Work Stoppage Year shall be reduced by an amount equal to the product of (i) the Aggregate Total Fee due for the Work Stoppage Year and (ii) a fraction, the numerator of which shall be the total number of Cancelled Games for the Work Stoppage Year, and the denominator of which shall be the total number of Scheduled Games for the Work Stoppage Year;

(d) if more than fifty percent (50%) of a Contract Year's Scheduled Games are cancelled due to the Work Stoppage, then, in addition to the Aggregate Total Fee reduction set forth in Paragraph 17(c) above, the Term shall be extended for an additional year on the same terms and conditions (without giving effect to the provisions of this Section 17) as are provided in this Agreement; and

Sponsor acknowledges and agrees that its sole and exclusive remedy in the event of a Work Stoppage shall be as provided in this Section 17, subject to and without limiting the make good provision in Section 2(b). Nothing contained in this Section shall limit or otherwise affect Sponsor's obligation to pay to Owner during the Work Stoppage Year or any other Contract Year the Aggregate Total Fees and all other payments required under this Agreement for such Contract Year.

**18. <u>CONFlDENTIALITY</u>.** The parties all agree that the terms of this Agreement are confidential and shall not be disclosed to any third party (other than each party's respective officers, directors and employees, in their capacities as such, and their respective auditors and lawyers), except as may be required by law, rule or regulation (including at the request of any gaming authority); provided, however, that Owner may disclose this Agreement to its prospective and actual lenders. In the event that a party desires to make a public statement or announcement or other communication to any third party regarding this Agreement, such party must consult with the other party before issuing any press release or otherwise making any such statements and no party nor any of its a ffi1iates shall issue any such press release or other third party communication unless each of the parties agree in advance on the form and substance of such communication, except as may be required by law.

**19. <u>ENTIRE AGREEMENT.</u>** This Agreement embodies the entire agreement and understanding of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements or understandings between the parties, oral or written, with respect thereto.

**20. <u>COMPLIANCE WITH LAW.</u>** The parties hereto shall at all times (including, without limitation, in connection with its receipt or provision of any of the sponsorship rights and benefits set forth in <u>Attachment 1</u>, and its fulfillment of its responsibilities and obligations set forth in this Agreement) comply with all applicable federal, state, county and local laws, rules, orders, statutes, and regulations (including, without limitation, those governing sweepstakes, promotions, advertisements, texting, emailing, and those governing the sale, possession, and consumption of alcoholic beverages) (collectively, <u>"Applicable Law").</u>

**21. <u>INSURANCE.</u>** Without limiting Sponsor's liability to Owner and Owner's affiliates, during the Term, Sponsor, at its sole cost and expense, shall carry and maintain insurance coverage and policies as outlined by"low Sponsor shall require each of its subcontractors to adhere to these same requirements or shall insure the activities of such subcontractors in Sponsor's insurance policies. Sponsor shall be solely responsible for, and required to remedy, all damage or loss to any property caused in whole or in part by Sponsor, Sponsor's subcontractors, or anyone employed, directed, or supervised by Sponsor. The required insurance coverage shall be issued by an insurance company or companies with a current A.M. Best Company rating of at least A-: VII. The coverage required of Sponsor is as follows:

(a) *Commercial General Liability Insurance (occurrence form)-Covering* all operations (including products liability, completed operations, liquor liability (for events hosted by Sponsor), personal and advertising injury). This insurance shall be blanket contractual with limits of at least US$1,000,000 each occurrence and US$2,000,000 aggregate for property damage and bodily injury (including death). The commercial general liability policy shall include no exclusions or limitations in coverage for punitive damages, abuse/molestation and assault & battery.

(b) *Workers' Compensation Insurance-* Limits as required by statute in the state(s) where work and/or services are performed and covering all of Sponsor's employees performing work and/or services in connection with this Agreement. The workers' compensation policy shall include coverage for sole proprietors, partners, executive/corporate officers or LLC members.

(c) *Employers* ' *Liability Insurance-* US$1,000,000 each accident and each employee for disease.

(d) *Business Automobile Liability Insurance-US* $1,000,000 combined single limit coverage each accident. This policy shall include coverage for loss, due to bodily injury or death of any person, or property damage arising out of the operation or use of any automobile whether owned, non-owned, hired or leased.

(e) *Umbrella/Excess Liability Insurance-US* $2,000,000 each occurrence *I* aggregate. The umbrella/excess liability insurance policies must be follow form of the primary commercial general liability, business automobile liability and employers' liability policies. The umbrella/excess liability insurance policies shall include no exclusions or limitations in coverage for punitive damages, abuse/molestation and assault & battery.

<u>Additional Insured.</u> The required commercial general liability, business automobile and umbrella/excess liability policies shall include the Owner Indemnified Parties as additional insureds for both ongoing and completed operations. The additional insured status shall apply to the full limits of liability purchased by Sponsor even if those limits of liability are in excess of those required by this Agreement. Sponsor's insurance shall apply separately to each insured against whom a claim is made or a suit is brought. The policies required herein shall not exclude claims made against the insured by an additional insured.

<u>Certificates of Insurance.</u> Upon execution of this Agreement and prior to the commencement of any work, or performance of any services pursuant to the Agreement and prior to the expiration of each insurance policy, Sponsor shall furnish Owner with certificate(s) of insurance evidencing the required insurance coverage and referencing the Agreement. Each certificate will include a provision requiring the insurance carrier to provide directly to Owner at the address shown in the Notices Section of the Agreement, if any, thirty (30) days advance written notice before any termination or cancellation of coverage to the policies shown on the certificate takes effect, regardless of whether such action was initiated by Sponsor, other insured or the insurance carrier.

<u>Primacy of Coverage.</u> The insurance coverage and limits Sponsor is required to maintain hereunder shall be primary to any insurance coverage maintained by the Owner Indemnified Parties and their respective directors, officers, and employees which shall be excess and non-contributory, except in the event of negligence or willful misconduct of Owner. All policies of insurance maintained by Sponsor shall include waivers of subrogation by the insurers in favor of the Owner Indemnified Parties and their respective directors, officers and employees. Sponsor shall require each subcontractor it retains in connection with the work and/or services to be provided under the Agreement to adhere to the same insurance requirements as stated herein and agree in writing to waive any and all rights of subrogation that it may have against the Owner Indemnified Parties and their respective directors, officers and employees. Sponsor's policies of insurance shall all provide for such waivers by endorsement or otherwise, and shall incorporate such waivers on all certificates of insurance.

<u>Insurance Requirements Are ot Limits.</u> The foregoing requirements and any approval or waiver of said insurance by Owner are not intended to and will not in any manner limit or qualify Sponsor's liabilities, whether imposed by Applicable Law or assumed pursuant to the Agreement, including but not limited to the provisions concerning indemnification. Owner in no way warrants that the minimum limits contained herein are sufficient to protect Sponsor from liabilities that might arise out of the performance of the work and/or services under this Agreement by Sponsor or Sponsor's agents, representatives, employees, or subcontractors, and Sponsor is free to purchase such additional insurance as may be determined necessary.

**22. <u>PRIVILEGED LICENSES</u>.** Sponsor acknowledges that certain of the MGM Resorts Group are engaged in businesses that are or may be subject to and exist because of privileged licenses or other permits issued by governmental authorities or other sovereigns. Accordingly, Owner may terminate this Agreement, without penalty or prejudice and without further liability to Sponsor, except that Owner shall refund to Sponsor any unearned prepaid amounts received from Sponsor (to the extent not prohibited by law) if any of the MGM Resorts Group: (a) is directed to cease doing business with Sponsor by any such authority or sovereign; or (b) determines, in its reasonable judgment, that Sponsor might be or is about to be engaged in or involved in any activity or relationship that would or does, or that continuing to be a party to this Agreement is likely to, jeopardize any of the businesses or licenses of any of the MGM Resorts Group (including, without limitation, any denial, suspension or revocation (or the threat thereof)). Further, Sponsor: (i) acknowledges that it is illegal for an applicant to whom a license has been denied, a licensee whose license has been revoked, or a business organization under such a person's control <u>("Denied Entity"),</u> to enter into, or attempt to enter into, a contract with any of the MGM Resorts Group without the prior approval of certain gaming commissions or licensing authorities; (ii) represents and warrants that it is not a Denied Entity and is not under the control of a Denied Entity; and (iii) agrees that any breach of the foregoing representation and warranty will allow Owner to immediately terminate this Agreement. As used in this Agreement, <u>"MGM Resorl8 Group"</u> means MOM R su1ts International and its subsidiaries, partnerships, joint ventures and other affiliates (including, without limitation, Owner).

**23. <u>CONDUCT.</u>** Sponsor acknowledges and agrees that Owner and the MGM Resorts Group have a reputation for offering high quality entertainment and/or services to the public, and that it is subject to regulation and licensing, and desire to maintain their reputation and receive positive publicity. Sponsor hereby covenants and agrees to ensure that at all times during and in connection with Sponsor's performance of its obligations under this Agreement, it will conduct itself in conformity with public conventions, morals, and standards of decency and shall not do or commit any act (other than legal action or arbitration arising out of this Agreement) that will tend to degrade Owner, MGM Resorts Group or subject any of them to public hatred, contempt, scorn, ridicule, or disrepute, or to shock or offend the community or to prejudice its or their standing in the community, nor make any oral, written, or recorded private or public comment that is disparaging, critical, defamatory, or otherwise not in the best interest of Owner and any other member of the MGM Resorts Group. Owner shall have the right to immediately terminate the Agreement without further penalty, prejudice or liability to Sponsor and upon a breach of this section or upon any failure by Sponsor to maintain the standards of conduct, reputation, and publicity set forth in this Section. Owner shall use its good faith business judgment in determining whether Sponsor's conduct, reputation, or publicity or those of its or their agents, employees or subcontractors, adversely affects Owner or MGM Resorts Group.

**:ltl,** **<u>,¥NBA.</u>** Owner and Sponsor hereby agree that this Agreement (including, without limitation, all rights and Elements) is subject to and subordinate to (a) all rules and regulations of the WNBA as they presently exist and as they may from time to time be amended or modified and (b) the terms of any existing or future agreements (including, without limitation, marketing agreements, broadcast rights agreements, and advertising agreements) entered into by the WNBA or Enterprises (or any of their affiliated entities). Accordingly, when acting pursuant to an express directive from the WNBA or under the rules of the WNBA, Owner reserves the right to sell to any other entity the marketing, advertising, or broadcast rights of the Owner, even if such grant of rights conflicts directly with the rights granted to Sponsor hereunder. Furthermore, the approval of Enterprises (with which a complete and accurate copy of any agreement entered into by Owner must be filed as soon as possible, but in no event later than within ten (10) days of execution), which may disapprove any such agreement, thereby rendering it null and void. Until a complete and accurate execution copy of this Agreement has been approved by Enterprises in accordance with WNBA rules, this Agreement shall not be effective or binding on either party and performance under the Agreement shall not begin.

\*\*\*\*\*

**<u>EXHIBIT B</u>**

**MICHELOB ULTRA ARENA** I **EVENT SPONSORSHIP GUIDELINES**

Mandalay Bay, LLC <u>("Owner")</u> has entered into various sponsorship agreements with naming rights, founding and venue partners (collectively, the <u>"Promotional Partners")</u> at the Michelob ULTRA Arena (the <u>"Arena")</u> located at Mandalay Bay Resort & Casino. The following guidelines will assist you in understanding how you may operate in the Arena. As used in these guidelines, <u>"Competing Sponsor"</u> means a party engaged by you that is primarily operating in the business of the applicable Promotional Partner's exclusive category (as determined by Owner). <u>Schedule 1</u> (which Owner may supplement from time-to-time) attached hereto provides general descriptions of the Promotional Partners and their respective exclusive categories.

**<u>GENERAL GUIDELINES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. All signage (static or electronic), signage content, activations and exact locations
thereof are subject to Owner approval. All signage must be installed using Owner-approved vendors or contractors, at your cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. No existing signage of Owner or any Promotional Partner be removed, obscured,
obstructed or covered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. All signage rights given to you are temporary and for the event duration only (and
a limited time period before or after, as mutually agreed). No permanent signage is permitted by you and your sponsors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Ambush marketing is strictly prohibited and is diligently monitored and enforced by Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. Use of the Owner-approved name and logo of the Arena (and in accordance with Owner's
brand guidelines) to designate the date, time and location of the event is permitted. All other use of intellectual property of Owner,
its affiliates or any Promotional Partner is prohibited without the express consent of Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. Sampling of products may be permitted, subject to Owner's prior approval in each instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. Lotteries, raffles, sweepstakes, games of chance and other similar promotions and
activities and any form of solicitation for donations are <u>strictly prohibited,</u> unless prior approved in writing by Owner under
limited circumstances for certain qualified non-profit organizations.

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **ARENA FIELD OF PLAY**

The <u>"field of play"</u> at the Arena is all signage locations (digital or static) within the bowl of the Arena (e.g. LED ribbons, static and LED signs, basketball floor, the scoreboard, scorer's table, dasherboards, ring mat, fascia board rings, stage, basket stanchions).

Field of play "digital" assets (e.g. scorer's table, LED ribbons and LED or video signs) and certain "static" assets (e.g. basketball floor, ring mat and dasher boards) are primarily reserved for you and your Sponsors *during* the event. HmYover, Owner and the Promotional PartnP.rs will rr:t in control of such assets before and after the event. All other "static" assets in the field of play (e.g. vomitory signage and other fixed signage) are at all times controlled by the Owner and the Promotional Partners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **OUTSIDE THE ARENA FIELD OF PLAY** 

The Arena locations which are <u>"outside the field of play"</u> include player tunnels, back of house, concourses, digital or fixed signage on exterior of building, premium areas, clubs and the main lobby, each of which Owner has deemed to be designated hospitality areas.

*Public* outside the field of play locations are primarily reserved for the Promotional Partners. However, Competing Sponsors and non-Competing Sponsors may display promotional signage in such public locations and conduct temporary commercial and hospitality activations in such public locations, subject to the General Guidelines above; provided that commercial activations by Competing Sponsors may only be conducted in the Arena's main lobby, subject to Owner's approval.

*Private* hospitality activations may be conducted by Competing Sponsors and non-Competing Sponsors in private outside the field of play locations (e.g. backstage, back of house and club rooms and other locations licensed by you or your sponsors for private functions) with Owner's prior approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **SPECIAL RESTRICTIONS - NON-ALCOHOLIC BEVERAGES** 

Notwithstanding the foregoing, with respect to Competing Sponsors in the non-alcoholic beverage category:

&nbsp;&nbsp;&nbsp;&nbsp;a. <u>Promotions & Giveaways</u> - Temporary in-Arena promotions conducted by Competing
Sponsors may be permitted in the Arena main lobby, subject to the sampling prohibition below and Owner's approval. However, <u>under no circumstances</u> may competitive product- trademarked merchandise, coupons or giveaways be permitted to be sold or distributed in the
Arena (e.g. no caps, towels or key chains).

&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Sampling</u> - No products of a Competing Sponsor may be served, sampled, distributed
or poured in the Arena, except (i) consumption by professional and amateur sports teams in accordance with applicable league rules, (ii)
consumption by individual high roller or VIP guests, and (iii) at or in connection with private functions or facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **SPECIAL GUIDELINES - SAMPLING & DISPLAYS** 

&nbsp;&nbsp;&nbsp;&nbsp;a. <u>No Guns. Tobacco or Marijuana</u> - Under no circumstance may guns, tobacco or
marijuana or any related products, services, signage, marketing or promotions be displayed, marketed, sampled, distributed or otherwise
present in the Arena. Owner reserves all rights to remove any such prohibited item and affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;b. <u>No Destructive Items</u> - Distribution of gum, stickers, writing instruments
or products which may be used to damage or deface the Arena is prohibited. Owner reserves all rights to remove any such prohibited item
and affiliated persons.

&nbsp;&nbsp;&nbsp;&nbsp;c. <u>Beverage Displays</u> - Beverage products must be displayed in emptied packaging
(e.g. no full cans or bottles) and distributed in Owner-approved drinkware.

&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Alcoholic Beverage Sampling-</u> No alcohol may be sampled inside the Arena
without Owner's prior approval in all respects. All alcoholic sampling products must be purchased by Owner's designated manager or concessionaire,
and such manager's or concessionaire's employees must be used to serve the samples, at your cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **SPECIAL GUIDELINES - GAMING COMPANIES** 

Sponsors which are affiliated with any casino resort, sports betting platform, online gaming website or are regulaled by a gaming authority (collectively <u>"Gaming Companies")</u> will have similar field of play rights as other sponsors, except that Gaming Companies will not be permitted to display signage or their name or logo on the court, ice rink or court mat; however, Gaming Companies may use the scorer's table, dasher boards or ring posts and ropes. Gaming Companies may also integrate entertainment into the event in conjunction with the event promoter - such as national anthem singers, halftime performances, etc.

For Arena areas outside of the field of play, Gaming Company can: (i) display signage (integrated into the event signage) on a limited basis as determined by Owner, and (ii) conduct "hospitality" activations, but cannot conduct "commercial" activations (e.g. hosting customers in an Owner- designated hospitality area or in a rented area within the Arena is permitted, but commercial activities such as signing up customers for the Gaming Company's loyalty program or taking restaurant reservations are not permitted).

In addition, Gaming Company may cover Owner's (or its affiliates') casino resort property signage in the Arena, subject to Owner's approval and at the sole cost of the applicable Gaming Company. The foregoing restrictions on Gaming Companies are not applicable to Owner or its parents, subsidiaries, affiliates or joint ventures which may own, operate or manage casino resorts, sports betting platforms or online gaming websites.

\*\*\*\*\*

**<u>SCHEDULE 1 TO EXHIBIT B</u>**

**Promotional Partners & Exclusive Categories**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>Non-Alcoholic Beverage Category</u> - Pepsi.** Any and all non-alcoholic fountain beverage products and ready-to-drink packaged non-alcoholic beverage products (including energy
drinks, bottled water and isotonic beverages), *<u>but excluding</u>* Red Bull, premium branded bottled water, and beverage products
not offered by Pepsi so long as such packaged product is not reasonably matched by another product offered by Pepsi.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>Domestic Malt Beverage Category</u> - Anheuser-Busch.** All domestic malt
beverage products (including alcoholic, non-alcoholic, craft and malt beverages, hard ciders, hard seltzers) and all other beverages legally
classified as beer, but excluding other alcoholic beverages (including spirits, wine, and import malt beverages) and other non-alcoholic
beverages.

## Ex1A-6

**Exhibit 6.4**

This Waiver Agreement ("Agreement") is made and entered into as of September 30, 2022, by and among Thunder Energies Corporation, a Florida corporation (the "Company") and Turvata Holdings Limited ("Purchaser"). Capitalized terms used but not defined herein will have the meanings assigned to them in the Convertible Promissory Note (as defined below).

WHEREAS, as of May 13, 2022, the Company and Purchaser entered into a Convertible Promissory Note (the "Convertible Promissory Note"); and

WHEREAS, pursuant to the terms of the Convertible Promissory Note, the Company issued to the Purchaser the Unsecured Convertible Promissory Note; and

WHEREAS, it is assumed that the Company will be in violation of Section 3.9 of the Convertible Promissory Note due to a failure to file the required Form 10-Q for the three, six & nine month periods ended September 30, 2022, and that prior to Turvata entering into the Convertible Promissory Note, Company had not filed Form 10-K for the year ended December 31, 2021 and the Form 10-Q for the three-month period ended March 31, 2022; and

WHEREAS, the Purchaser will waive all rights and default provisions related to the failure of the Company to file its Form 10-K for the year ended December 31, 2021, the Form 10-Q for the three-month period ended March 31, 2022, and the required Form 10-Q for the three , six & nine month periods ended September 30, 2022 as further described in Section 1 below; and

NOW THEREFORE, in consideration of promises and mutual covenants contained herein, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby consent and agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Purchaser agrees to waive all default provisions and rights related to the Company's failure to timely file its Form 10-K for the year ended December 31, 2021 and the Form 10-Q for the three-month period ended March 31, 2022, and the Form 10-Q for the three ,six & nine month periods ended September 30, 2022 with a consideration fee of $0.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Purchaser hereby represents the truth and accuracy of the Purchaser's representations and warranties contained in the Convertible Promissory Note when made and also as if such representations and warranties were made as of the date hereof. The Company hereby represents the truth and accuracy of all of the Company's representations and warranties contained in the Convertible Promissory Note when made and also as if such representations and warranties were made as of the date hereof, except as same have been modified or updated in the SEC Reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Purchaser executing this Agreement represents to the Company that it has the authority to enter into and deliver this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as specifically described herein, there is no other waiver expressed or implied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. In this Agreement words importing the singular number include the plural and vice versa; words importing the masculine gender include the feminine and neutral genders. The word "person" includes an individual, body corporate, partnership, trustee or trust or unincorporated association executor, administrator or legal representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This Agreement will be subject to amendment and/or waiver in the same manner and subject to the same requirements as described in the Convertible Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The invalidity or unenforceability of any provision hereof will in no way affect the validity or enforceability of any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. All notices, demands, requests, consents, approvals, and other communications required or permitted in connection with this Agreement shall be made and given in the same manner set forth in Section 4.2 of the Convertible Promissory Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida without regard to conflicts of laws and principles that would result in the application of the substantive laws of another jurisdiction. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of Florida in the federal courts located in the state of Florida. Both parties and the individuals executing this Agreement and other agreements on behalf of the parties agree to submit to the jurisdiction of such courts and waive trial by jury. The prevailing party (which shall be the party which receives an award most closely resembling the remedy or action sought) shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The division of this Agreement into articles, sections, subsections and paragraphs and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. This Agreement may be executed in counterparts, all of which when taken together shall be considered one and the same Agreement and shall become effective when the counterparts have been signed by each party and delivered to the other party, it is being understood that all parties need not sign the same counterpart. In the event that any signature is delivered by facsimile or PDF transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were an original thereof.

(Signatures to follow)

/s/ Duane Lee

IN WITNESS WHEREOF, the Company and the undersigned Purchaser have caused this Agreement to be executed as of the date first written above.

COMPANY

<u>/s/ Ricardo Haynes</u> 

THUNDER ENERGIES CORPORATION

Name: Ricardo Haynes

Title: President & CEO

PURCHASER"

Turvata Holdings Limited

By: <u>/s/ Duane Lee</u> 

Name: Duane Lee

Title: CEO

## Ex1A-6

**Exhibit 6.5**

![](tnrglogo.jpg)

**MEMBERSHIP INTEREST PURCHASE AGREEMENT**

**THIS MEMBERSHIP INTEREST PURCHASE AGREEMENT** (this **"Agreement")** is made and entered into effective as of January 5, 2023 (the **"Effective Date")** by and among Fourth & One, LLC, a Colorado limited liability company **("Seller")** and Thunder Energies Corporation, a Florida corporation **("Purchaser").**

**RECITALS**

WHEREAS, Seller owns a 60% membership interest **("Seller's Membership Interest")** in WC Mine Holdings, LLC, a Delaware limited liability company **("WCMH")** free and clear of all liens, claims and encumbrances other than those set forth in WCMH's Operating Agreement, a copy of which is attached hereto as <u>Schedule A</u> (the **"Operating Agreement").**

WHEREAS, WCMH holds an 83.3% ownership interest in the patented and unpatented mining claims, as well as certain water rights, as set forth on <u>Schedule B</u> hereto (the **"Assets").** Income Estates, LLC, an entity wholly owned by Giovani D'Amore, owns the remaining 16.7% interest in the Assets.

WHEREAS, Seller intends to sell and transfer 51.5% of Seller's Membership Interest to Purchaser (the **"Purchased Interest").**

WHEREAS, Purchaser desires to purchase the Purchased Interest from Seller on the terms and conditions set forth in this Agreement (the **"Purchase").**

WHEREAS, upon the Closing (defined below), Seller will own a 29.1% membership interest in WCMH and Purchaser will own a 30.9% membership interest in WCMH.

NOW, THEREFORE, in consideration of the mutual premises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:

**<u>ARTICLE I</u>**

**<u>PURCHASE OF PURCHASED INTEREST</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Incorporation of Recitals</u>. The Recitals set forth above are hereby incorporated into this Agreement as though they were set forth in their entirety in this <u>Section 1.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Purchase and Sale of the Purchased Interest</u>. Upon the terms and subject to the conditions, representations, warranties and agreements contained in this Agreement, at the Closing (as defined below) and effective as of the Effective Date, Purchaser shall purchase the Purchased Interest from Seller, and Seller shall sell, assign, convey, transfer and deliver the Purchased Interest to Purchaser, free and clear of all liens, options, claims, charges, restrictions and other encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Purchase Price: Payment</u>. The consideration for the Purchased Interest shall consist of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>USD$4,000,000.00</u>,** payable by Purchaser to Seller pursuant to the terms of a Convertible Promissory Note executed and delivered by Purchaser to Seller at Closing (the **"Promissory Note"),** provides that Seller may, at Seller's option, convert all amounts due thereunder into shares of Purchaser's Free Trading common stock (hereinafter, Purchaser's stock regardless of class designation shall be referred to as **"TE Shares")** on the earlier of (y) three (3) business days after the granting of approval by the Securities and Exchange Commission of Purchaser's REG A II $5 Per Share Offering (the **"REG A II Offering"),** or (z) May 31, 2023, and (ii) shall be secured by a Pledge Agreement executed and delivered by Purchaser to Seller at Closing (the **"Pledge Agreement"** and, together with this Agreement, the Promissory Note and the other documents referenced in <u>Section 1.4</u>, the **"Transaction Documents");** *plus*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Two Thousand (2,000) RoRa Prime digital coins **("RoRa Coins")** at a discounted value as of the Effective Date of $725.00 per coin (and therefore with an aggregate value of **<u>USD$1,450,000.00)</u>,** delivered by Purchaser to Seller by the transfer of a digital wallet at Closing. In the event that the RoRa Coins are *not* made available to convert to cash on or before June 1, 2023 at a conversion ratio of $800.00 per coin (or the conversion ratio is less than $800.00 per coin), then Purchaser will purchase all 2,000 of Seller's RoRa Coins from Seller at a purchase price of $800.00 per coin on June 1, 2023 (the **"RoRa Coin Cash Consideration").**

Purchaser acknowledges and agrees that the aggregate value of the Convertible Note and RoRa Coins is Five Million Four Hundred Fifty Thousand United States Dollars (USD$5,450,000.00) (the **"Purchase Price").**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In addition, Terrell Davis and Frank White shall each be entitled to one director seat on the Board of Purchaser for a minimum period of 24 months from and after Closing. If Terrell Davis or Frank White desires to appoint someone other than themselves, that appointment must be mutually agreed to by all parties. This obligation extends to any successor-in-interest of Purchaser's rights hereunder (by operation of law or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <u>Closing</u>. The closing of the transactions contemplated by this Agreement (the **"Closing")** shall occur upon full execution of the Transaction Documents and shall be effective as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchaser's Closing Deliveries</u>. At the Closing, Purchaser will deliver to Seller the following documents, duly executed by Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Promissory Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the transfer of Two Thousand (2,000) RoRa Coins, by Purchaser to Seller's digital wallet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Pledge Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a joinder to the Operating Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a Board Member Indemnification Agreement for both Terrell Davis and Frank White (or their respective appointees), in a form reasonably acceptable to them and which acknowledges the respective appointments as of the Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) such other documents as may be reasonably requested by Seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Seller's Closing Deliveries.</u> At the Closing, Seller will deliver the following documents to Purchaser, duly executed by Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an Assignment of Membership Interest in the form attached hereto as <u>Exhibit A;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Pledge Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such other documents as may be reasonably requested by Purchaser.

**<u>ARTICLE 2</u>**

**<u>REPRESENTATIONS OF PURCHASER</u>**

As an inducement to Seller to enter into this Agreement and consummate the transactions contemplated by this Agreement, Purchaser represents, covenants and warrants to Seller as of the Closing and as the Effective Date the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Power and Authority.</u> Purchaser has full power, legal right and authority to enter into, execute and deliver this Agreement and the other Transaction Documents and to carry out its obligations hereunder and thereunder. No other acts or proceedings on the part of Purchaser are or will be necessary to authorize this Agreement (or any other Transaction Document) or the transactions contemplated hereunder or thereunder. The Transaction Documents, constitute valid and legally binding obligations of Purchaser and are enforceable against Purchaser in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to creditors' rights or by the application of equitable principles when equitable remedies are sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>No Consents.</u> No consent, authorization, approval, order, license, certificate or permit or act of or from, or declaration or filing with, any foreign, federal, state, local or other governmental authority or regulatory body or any court or other tribunal or any party to any contract, agreement, instrument, lease or license to which Purchaser is a party, is required for the execution, delivery or performance by Purchaser of this Agreement or any of the other Transaction Documents or for the consummation of the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>TE Shares and RoRa Coins</u>. The TE Shares are publicly traded on the Other OTC stock exchange under the ticker TNRG and as of the hereof the previous close value was

$0.05 per share. Purchaser owns the RoRa Coins, beneficially and of record, and has good and marketable right, title and interest in and to all of the RoRa Coins, free and clear of all liens, pledges, security interests, charges, contractual obligations, claims or encumbrances of any kind **("Liens").** Upon transfer of the RoRa Coins to Seller, Seller shall hold the RoRa Coins free and clear of all Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>No Litigation.</u> No litigation, investigation or proceeding of or before any court, arbitrators or governmental authorities is pending against or, to the best knowledge of Purchaser, threatened against or affecting Purchaser or its assets, the TE Shares or the RoRa Coins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2.5 <u>Investor Representations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser is acquiring the Purchased Interest solely for Purchaser's own account and beneficial interest for investment and not with a view to sell, transfer or distribute the Purchased Interest or any part thereof, has no present intention of selling (in connection with a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to anticipate a change in such intention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Purchaser understands that the Purchased Interest has not been, and will not be, registered under the Securities Act of 1933, as amended (the **"Securities Act"),** by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Purchaser's representations as expressed herein. Purchaser understands that the Purchased Interest are "restricted securities" under applicable U.S. federal and state securities laws and that, pursuant to these laws, Purchaser must hold the Purchased Interest indefinitely unless they are registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available. Purchaser acknowledges that WCMH has no obligation to register or qualify the Purchased Interest for resale. Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, but not limited to, the time and manner of sale, the holding period for the Purchased Interest, and on requirements relating to WCMH which are outside of Purchaser's control, and which WCMH is under no obligation and may not be able to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Purchaser understands that no public market now exists for any of the Purchased Interest and that WCHM has made no assurances that a public market will ever exist for the Purchased Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without lessening or obviating the representations and warranties of Seller set forth in <u>Article 3</u> below, Purchaser hereby: (A) acknowledges that Purchaser has received all the information Purchaser has requested from Seller about the Purchased Interest, WCMH, and the Assets, (B) represents that Purchaser has had an opportunity to ask questions and receive answers from Seller regarding Purchased Interest, WCMH, and the Assets and to obtain any additional information necessary to verify the accuracy of the information given Purchaser, (C) has read the Operating Agreement in its entirety,

and (D) has specific knowledge and experience in financial and business matters and investments such that Purchaser is capable of evaluating the merits and risk of its investment in WCMH and the Assets by virtue of its purchase of the Purchased Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Purchaser acknowledges that investment in WCMH and the Assets involves a high degree of risk, and represents that Purchaser is able, without materially impairing Purchaser's financial condition, to hold the Purchased Interest for an indefinite period of time regardless of whether or not dividends are paid by WCMH to Purchaser in respect of the Purchased Interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>Survival</u>. The representations, warranties and covenants of Purchaser set forth in this Agreement shall survive the execution and delivery of this Agreement and the Closing.

**<u>ARTICLE 3</u>**

**<u>REPRESENTATIONS OF SELLER</u>**

As an inducement to Purchaser to enter into this Agreement and consummate the transactions contemplated by this Agreement, Seller represents, covenants and warrants to Purchaser the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Power and Authority.</u> Seller has legal power, legal right and authority to enter into, execute and deliver this Agreement and the other Transaction Documents and to carry out its obligations hereunder and thereunder. No other acts or proceedings on the part of Seller will be necessary to authorize this Agreement (or any Transaction Documents) or the transactions contemplated hereunder or thereunder. The Transaction Documents, constitute valid and legally binding obligations of Seller and are enforceable against Seller in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to creditors' rights or by the application of equitable principles when equitable remedies are sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>No Consents.</u> No consent, authorization, approval, order, license, certificate or permit or act of or from, or declaration or filing with, any foreign, federal, state, local or other governmental authority or regulatory body or any court or other tribunal or any party to any contract, agreement, instrument, lease or license to which Seller is a party, is required for the execution, delivery or performance by Seller of this Agreement or any of the other Transaction Documents or for the consummation of the transactions contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>No Litigation</u>. No litigation, investigation or proceeding of or before any court, arbitrators or governmental authorities is pending against or, to the best knowledge of Seller, threatened against or affecting Seller, WCMH, the Purchased Interest, or the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Survival</u>. The representations, warranties and covenants of Seller set forth in this Agreement shall survive the execution and delivery of this Agreement and the Closing.

**<u>ARTICLE 4</u>**

**<u>ADDITIONAL COVENANTS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4.1 <u>Geologist Report</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller agrees that upon Seller's receipt of the RoRa Coin Cash Consideration from Purchaser (or other cash consideration in an amount no less than USD$1,600,000 received by Seller from its conversion or sale of the RoRa Coins as otherwise provided for in <u>Section l .3(b))</u>. Seller shall engage the services of geologist Lane Griffm (or in the event he does not agree to perform such services another geologist mutually agreeable to the parties) to prepare a preliminary report on the Assets (the **"Geologist Report")** for an agreed upon fee of $60,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller agrees that upon Seller's receipt of the cash consideration received following the conversion of the Promissory Note to TE Shares as provided for therein, and Seller's liquidation of TE Shares to cash, Seller shall apply up to $440,000.00 toward cost and expenses incurred in connection with further exploration and estimated mineral reserve reporting with respect to the Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, the Geologist Report shall be based on information already known as of the date of this Agreement and shall not include a 43101 of the specific parcels of real property to which the Assets relate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Due Diligence</u>. Prior to the Maturity Date (as defined in the Promissory Note), Purchaser shall cooperate with Seller in the performance by Seller of its due diligence review of Purchaser and the TE Shares. In connection with such due diligence, (a) Purchaser shall grant Seller and its authorized agents the right to inspect the books and records relating to TE Shares (including without limitation copies of Purchaser's Articles or Certificate of Incorporation, Bylaws, Shareholders' Agreement, and any other constituent documents of Purchaser), and (b) provide Seller and its authorized agents with all information reasonably requested relating to the TE Shares, the REG A II Offering and the RoRa Coins.

**<u>ARTICLE 5</u>**

**<u>MISCELLANEOUS PROVISIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Confidentiality</u>. The parties acknowledge that their existing Confidentiality Agreement dated June 17, 2022, shall remain in full force and effect following the execution of this Agreement and the Closing; provided, however that notwithstanding anything to the contrary in the Confidentiality Agreement, Confidential Information (as defined in the Confidentiality Agreement) may be disclosed (a) to those professionals, advisors, and potential financing sources and their attorneys who have a need to know, (b) as required by applicable law or to enforce a party's rights pursuant to the Transaction Documents, (c) with the written consent of the other party, or (d) in the event that a party hereto is at any time requested or required (by oral questions, interrogatories, requests for information or documents, subpoena or similar process) to disclose such Confidential Information, provided that such party first provide the other party with prompt notice of such request so that an appropriate protective order or nondisclosure agreement may be sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Indemnity.</u> Purchaser and its officers, directors, successors, heirs, personal representatives, affiliates and assigns (each, an **"Indemnifying Party")** shall indemnify and hold harmless Seller and its members, managers, successors, heirs, personal representatives, affiliates and assigns (each, an **"Indemnified Party")** harmless from and against and pay on behalf of or reimburse each Indemnified Party as and when incurred for Losses which such Indemnified Party may suffer, sustain or become subject to, as a result of, in connection with any breach of any representation. warranty or covenant of Purchaser under this Agreement or any other Transaction Document. **"Losses"** means liabilities, losses, assessments, judgments, taxes, fines, penalties, costs, expenses (including reasonable attorneys' fees) or other damages paid, incurred, or suffered by an Indemnified Party. The parties agree to the indemnification procedures set forth on <u>Exhibit B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Assignment.</u> Neither party may assign any of their rights or obligations under this Agreement without the prior written consent of the other party, which may be granted or withheld in such party's sole discretion. All of the terms and provisions of this Agreement shall be binding upon, inure to the benefit of, and be enforceable by the parties and **all** of their respective affiliates, directors, officers, employees, shareholders, heirs, legal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Parties in Interest</u>. Nothing in this Agreement, express or implied, is intended or shall be construed to confer upon or give to any person other than the parties hereto, and the successors and permitted assigns of each, any rights or remedies under or by reason of this Agreement, or any term, provision, condition, undertaking, warranty, representation, indemnity, covenant or agreement contained herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Amendments.</u> The provisions of this Agreement may not be amended, supplemented, waived or changed orally, but only by a writing that specifically refers to this Agreement and is signed by both parties to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <u>Severability</u>. If any provision of this Agreement or any other agreement entered into pursuant to this Agreement is contrary to, prohibited by or deemed invalid under applicable law or regulation, such provision shall be inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder of this Agreement shall not be invalidated and shall be given full force and effect so far as possible. If any provision of this Agreement may be construed in two or more ways, one of which would render the provision invalid or otherwise voidable or unenforceable and another of which would render the provision valid and enforceable, such provision shall have the meaning which renders it valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <u>Waivers</u>. The failure or delay of any party at any time to require performance by another party of any provision of this Agreement, even if known, shall not affect the right of such party to require performance of that provision or to exercise any right, power or remedy under this Agreement. Any waiver by any party of any breach of any provision of this Agreement should not be construed as a waiver of any continuing or succeeding breach of such provision, a waiver of the provision itself, or a waiver of any right, power or remedy under this Agreement. No notice to or demand on any party in any circumstance shall, of itself, entitle such party to any other or further notice or demand in similar or other circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <u>Further Assurances.</u> The parties agree from time to time to execute and deliver such further and other transfers, assignments and documents and do all matters and things that may be necessary to more effectively and completely carry out the intentions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <u>Equitable Remedies.</u> The Purchased Interest and the consideration described in <u>Section 1.2</u> is unique and cannot be readily purchased or sold in the open market. If a party to this Agreement breaches or threatens to breach any provision of this Agreement, damages at law would be an inadequate remedy. Therefore, the parties will be irreparably damaged if this Agreement is not specifically enforced. In addition to all other rights or remedies, if any party breaches or threatens to breach any provision of this Agreement or any other Transaction Document, the other party shall be entitled to seek an injunction restraining any breach or threatened breach, a decree for specific performance of the provisions of this Agreement, or both. Any party may seek equitable relief pursuant to this <u>Section 5.10</u> without being required to show actual damage or post an injunction bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <u>Remedies Cumulative.</u> Except as otherwise expressly provided in this Agreement, no remedy in this Agreement conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute or otherwise. No single or partial exercise by any party of any right, power or remedy under this Agreement shall preclude any other or further exercise thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <u>Enforcement Costs</u>. If any civil action, arbitration or other legal proceeding is brought for the enforcement of this Agreement or any other Transaction Document, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Agreement or any other Transaction Document, the successful or prevailing party shall be entitled to recover reasonable attorneys' fees, sales and use taxes, court costs and all expenses even if not taxable as court costs (including, without limitation, all such fees, taxes, costs and expenses incident to arbitration, appellate, bankruptcy and post-judgment proceedings), incurred in that civil action. arbitration or legal proceeding, in addition to any other relief to which such party or parties may be entitled. Attorneys' fees shall include, without limitation, paralegal fees, investigative fees, administrative costs, sales and use taxes and all other charges billed by the attorney to the prevailing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <u>Governing Law</u>. This Agreement and all transactions contemplated by this Agreement shall be governed by, construed and enforced in accordance with the substantive laws of the State of Colorado without regard to principles of conflicts of laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <u>Consent to Jurisdiction.</u> Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any Colorado state court sitting in the City and County of Denver, Colorado, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such Colorado court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it or (s)he may legally and effectively do so, any objection that it or (s)he may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to the Agreement in any Colorado state court in the City and County of Denver. Each of the parties hereto irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. Service of any court paper may be effected on such party by mail, as provided in this Agreement, or in such other manner as may be provided under applicable laws, rules of procedure or local rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <u>Survival</u>. All covenants, agreements, representations and warranties made in this Agreement by any party, unless waived in writing, shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <u>Expenses.</u> Each party shall bear all costs and expenses incurred by such party in connection with the negotiation, execution, and delivery of the transactions contemplated by this Agreement and the Transaction Documents, as well as such party's due diligence and all other actions taken by such party in connection with the transactions contemplated hereunder; except in the event of a party's default hereunder (or under any of the Transaction Documents), in which case the defaulting party shall pay the non-defaulting party's attorneys' fees incurred in connection with the transactions contemplated hereunder (including all attorneys' fees incurred in connection with negotiation and preparation of the Transaction Documents, as well as the party's due diligence).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <u>Delivery by Electronic Transmission.</u> This Agreement and any signed agreement or instrument entered into or notice given in connection with this Agreement, and any amendments hereto or thereto, to the extent signed and delivered by means of Electronic Transmission (as defined herein), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall re execute original forms thereof and deliver them to all other parties. No party hereto or to any such agreement or instrument shall raise the use of Electronic Transmission to deliver a signature or provide notice or the fact that any signature, agreement, notice, or instrument was transmitted or communicated through Electronic Transmission as a defense to the formation of a contract or sufficiency of notice and each such party forever waives any such defenses.

For purposes of this Agreement, **"Electronic Transmission"** means any form of communication not directly involving the physical transmission of paper that creates a record that may be retained, retrieved and reviewed by a recipient thereof and that may be directly reproduced in paper form by such a recipient through an automated process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <u>Notices.</u> All notices, requests, consents, and other communications required or permitted under this Agreement shall be in writing and shall be (as elected by the party giving such notice) hand delivered in person or by messenger or courier service, sent by Electronic Transmission (including email), or mailed by first class mail (postage prepaid) addressed to:

---

| | |
|:---|:---|
| **Hto Seller:** | **If to Purchaser:** |
| Terrell Davis, Managing Member<br> Fourth & One, LLC<br> 19750 E. Geddes Place<br> Centennial, Colorado 80016<br> Email: lamardavisl 8@yahoo.com | Ricardo Haynes, President & CEO<br> Thunder Energies Corporation<br> 1100 Peachtree Street NE, Ste. 200<br> Atlanta, Georgia 30309<br> Email:rhaynes@thunderenergiescorp.com |

---

or such other address as any party may designate by notice complying with the terms of this <u>Section</u>. Each such notice shall be deemed delivered (a) on the date delivered if hand delivered in person or by messenger or courier service; (b) upon confirmation of transmission, if sent by Electronic Transmission; and (c) three (3) days after deposit with the United States Post Office, if mailed via first class mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <u>Preparation of Agreement.</u> This Agreement shall not be construed more strongly against any party regardless of who is responsible for its preparation. The parties acknowledge each contributed and is equally responsible for its preparation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 <u>Counterparts.</u> This Agreement may be executed in one or more counterparts (and by Electronic Transmission), each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <u>Descriptive Headings</u>. The headings contained in this Agreement are for convenience of reference only, are not to be considered a part of this Agreement and shall not limit or otherwise affect in any way the meaning or interpretation of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21 <u>Singular and Plural Usages.</u> Whenever used in this Agreement, the singular number includes the plural, the plural number includes the singular and the use of any gender includes all gender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22 <u>Entire Agreement.</u> This Agreement and the Transaction Documents constitutes the entire understanding and agreement between the parties with respect to the transactions contemplated herein and supersedes all other negotiations, understandings and representations (if any) made by and among the parties to this Agreement.

**[Signatures are on Next Page]**

**IN WITNESS WHEREOF,** the parties hereto have duly executed this Agreement to be effective as of the Effective Date.

---

| | |
|:---|:---|
| **PURCHASER:** | **SELLER:** |
| **THUNDER ENERGIES CORPORATION** | **FOURTH & ONE LLC** |
| <u>/s/ Ricardo Haynes</u>  | <u>/s/ Terrell Davis</u>  |
| Ricardo Haynes, President & CEO | Terrell Davis, Managing Member |

---

EXHIBIT A

ASSIGNMENT OF MEMBERSHIP INTERESTS

[See Attached]

**<u>ASSIGNMENT OF MEMBERSHIP INTEREST</u>**

Effective Date: December 15, 2022

FOR VALUE RECEIVED, Fourth & One, LLC <u>("Assignor")</u> hereby sells, assigns and transfers unto Thunder Energies Corporation <u>("Assignee"),</u> a 30.9% membership interest in WC Mine Holdings, LLC (the <u>"Company")</u>, standing in the name of Assignor on the books of the Company (the <u>"Assigned Interest")</u>.

Assignor hereby authorizes, directs and irrevocably constitutes and appoints any duly authorized officer of the Company as attorney to transfer all of Assignor's right, title and interest in the Assigned Interest to Assignee with full power of substitution in the premises.

**IN WITNESS WHEREOF,** the undersigned execute this document to be effective as of the Effective Date first above written.

**ASSIGNOR:**

**FOURTH & ONE LLC**

<u>/s/ Terrell Davis</u> 

Terrell Davis, Managing Member

**EXHIBIT B**

**INDEMNIFICATION PROCEDURES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Third Party Claims.** If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought by any Person who is not a party to this Agreement or an affiliate of a party to this Agreement or a representative of the foregoing (a **"Third Party Claim")** against such Indemnified Party with respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 calendar days after receipt of such notice of such Third Party Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party Claim at the Indemnifying Party's expense and by the Indemnifying Party's own counsel, and the Indemnified Party shall cooperate in good faith in such defense; *provided, that* if the Indemnifying Party is Purchaser, such Indemnifying Party shall not have the right to defend or direct the defense of any such Third Party Claim that (x) is asserted directly by or on behalf of a Person that is a supplier or customer of the business, or (y) seeks an injunction or other equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject to <u>subsection (b)</u>, it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party shall have the right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying Party's right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the Indemnified Party, *provided, that* if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party; or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction for which the Indemnified Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement, or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to <u>subsection (b)</u>, pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating to such Third Party Claim. Seller and Purchaser shall cooperate with each other in all reasonable respects in connection with the defense of any Third Party Claim, including making available records relating to such Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of- pocket expenses) to the defending party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such Third Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Settlement of Third Party Claims.** Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided in this <u>subsection (b)</u>. If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified Party. If the Indemnified Party fails to consent to such firm offer within ten (10) days after its receipt of such notice, the Indemnified Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense pursuant to <u>subsection (a)</u>. it shall not agree to any settlement without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld or delayed).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Direct Claims.** Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a **"Direct Claim")** shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim and the Indemnified Party shall assist the Indemnifying Party's investigation by giving such information and assistance (including access to the Indemnified Party's premises and personnel and the right to examine and copy any accounts, documents or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does not so respond within such 30-day period, the Indemnifying Party shall be deemed to have rejected such claim, in which case the Indemnified Party shall be free to pursue such remedies as may be available to the Indemnified Party on the terms and subject to the provisions of this Agreement.

## Ex1A-11

**Exhibit 11.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We hereby consent to the use in this Registration Statement on Form 1-A Amendment, of our report dated October 18, 2022, relating to the balance sheet of Thunder Energies Corporation as of December 31, 2021 and 2020, and the related statements of operations, changes in shareholder's equity and cash flows, for the fiscal year end December 31, 2021 and to the reference to our Firm under the caption "Experts" in the Prospectus.

/s/ Paris, Kreit & Chiu CPA LLP

New York, NY

January 19, 2023

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

## FORM 1-A

### REGULATION A OFFERING STATEMENT
### UNDER THE SECURITIES ACT OF 1933

### Item 1. Issuer Information

**Exact name of issuer:** Thunder Energies Corp

**Jurisdiction of Incorporation/Organization:** FL

**Year of Incorporation:** 2011

**CIK:** 0001524872

**I.R.S. Employer Identification Number:** 45-1967797

**Primary Standard Industrial Classification Code:** 6500

**Total number of full-time employees:** 0

**Total number of part-time employees:** 4

**Address of Principal Executive Offices:** 4002 Hwy 78, Suite 530 #296, Snellville, GA 30039

**Company Phone:** 2159629378

**Person to contact:** Donald R. Keer, Esq.

### Financial Statements

**Balance Sheet Information**

| Metric                                   | Amount       |
|:---|:---|
| Cash and Cash Equivalents                | $29949.00    |
| Investment Securities                    | $0.00        |
| Accounts and Notes Receivable            | $65200.00    |
| Property, Plant and Equipment (PP&E)     | $0.00        |
| Total Assets                             | $95149.00    |
| Accounts Payable and Accrued Liabilities | $80619.00    |
| Long-Term Debt                           | $4494611.00  |
| Total Liabilities                        | $4575230.00  |
| Total Stockholders' Equity               | $-4480081.00 |
| Total Liabilities and Equity             | $95149.00    |

**Statement of Comprehensive Income Information**

| Metric                                    | Amount       |
|:---|:---|
| Total Revenues                            | $0.00        |
| Costs and Expenses Applicable to Revenues | $3306660.00  |
| Depreciation and Amortization             | $0.00        |
| Net Income                                | $-3306660.00 |
| Earnings Per Share - Basic                | -0.05        |
| Earnings Per Share - Diluted              | -0.05        |

**Auditor Information**

| Metric          | Amount                      |
|:---|:---|
| Name of Auditor | Paris, Kreit & Chiu CPA LLP |

### Outstanding Securities

| Class                |   Outstanding | CUSIP     | Publicly Traded   |
|:---|---:|:---|:---|
| Class A Common Stock |      20140735 | 00000None | None              |
| Series A             |      50000000 | 00000None | N/A               |

### Item 2. Issuer Eligibility
- [x] The issuer certifies that all of the statements in this part are true.

### Item 3. Application of Rule 262
- [x] The issuer certifies that it is not disqualified and has not been involved in any disqualifying event.

### Item 4. Summary Information Regarding the Offering

**Tier:** Tier2

**Financial Statement Status:** Audited

**Type of Securities Offered:** Equity (common or preferred stock)

**Is this a delayed or continuous offering?** Yes

**Was or is the offering to take place within one year after qualification?** No

**Was or is the offering to commence within two days after qualification?** Yes

**Is this a best efforts offering?** Yes

**Was there any solicitation of interest?** Yes

**Are there any resale securities by affiliates of the issuer?** Yes

**Offering Amounts**

| Description                                                     | Amount       |
|:---|:---|
| Number of securities offered                                    | 15000000     |
| Number of securities outstanding                                | 72140735     |
| Price per security                                              | $5.00        |
| Issuer's aggregate offering price                               | $75000000.00 |
| Aggregate offering price of securities held by security holders | $0.00        |
| Aggregate price of securities offered concurrently              | $0.00        |
| Total aggregate offering price                                  | $75000000.00 |

**Anticipated Fees**

| Service Provider   | Name                        | Fees       |
|:---|:---|:---|
| Auditor            | Paris, Kreit & Chiu CPA LLP | $100000.00 |
| Legal              | Donald R. Keer              | $100000.00 |
| Promoters          | various                     | $500000.00 |

**Estimated Net Proceeds to the Issuer:** $71300000.00

### Item 5. Jurisdictions in Which Securities are to be Offered

AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC, PR, A0, A1, A2, A3, A4, A5, A6, A7, A8, A9, B0, Z4