# EDGAR Filing Document

**Accession Number:** 0001411057
**File Stem:** 0001683168-23-000178
**Filing Date:** 2023-1
**Character Count:** 628994
**Document Hash:** 7a8d998d356b746f9c707446137c301d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001683168-23-000178.hdr.sgml**: 20230113

**ACCESSION NUMBER**: 0001683168-23-000178

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

**PUBLIC DOCUMENT COUNT**: 40

**FILED AS OF DATE**: 20230113

**DATE AS OF CHANGE**: 20230113

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cannabis Bioscience International Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001411057
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731]
- **IRS NUMBER:** 844901229
- **FISCAL YEAR END:** 0531

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-267039
- **FILM NUMBER:** 23528293

**BUSINESS ADDRESS:**
- **STREET 1:** 6201 BONHOMME ROAD
- **STREET 2:** SUITE 466S
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77036
- **BUSINESS PHONE:** 832-606-7500

**MAIL ADDRESS:**
- **STREET 1:** 6201 BONHOMME ROAD
- **STREET 2:** SUITE 466S
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77036

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CHINA INFRASTRUCTURE CONSTRUCTION Corp
- **DATE OF NAME CHANGE:** 20090916

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** FIDELITY AVIATION CORP
- **DATE OF NAME CHANGE:** 20070829

Registration No. 333-267039

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**____________________**

 **AMENDMENT NO. 1**

 **to**

**FORM S-1**

**REGISTRATION STATEMENT**

***UNDER***

***THE SECURITIES ACT OF 1933***

 ****

**Cannabis Bioscience International Holdings, Inc.**

(formerly named China Infrastructure Construction Corp.)

(Exact name of Registrant as specified in its charter)

**____________________**

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| | | |
|:---|:---|:---|
| <u>Colorado</u> | <u>8999; 8099</u> | <u>84-4901229</u> |
| (State or other jurisdiction of | Primary Standard | (I.R.S. Employer Identification No.) |
| Incorporation or organization) | Industrial Classification |  |
|  | Code Numbers |  |

---

**____________________**

6201 Bonhomme Road, Suite 466S,

Houston, TX 77036

Telephone: (832) 606-7500

(Address, including zip code and telephone number,<br> including area code, of Registrant's principal executive offices)

**____________________**

Dante Picazo

Chief Executive Officer

Cannabis Bioscience International Holdings, Inc.

6201 Bonhomme Road, Suite 466S

Houston, TX 91789

Telephone: (832) 606-7500

(Name, address, including zip code, and telephone number,

including area code, of agent for service)

**____________________**

With a copy to:

Barry J. Miller, Esq.<br> Barry J. Miller PLLC<br> 7146 Pebble Park Drive<br> West Bloomfield, MI 48322

Telephone: (248) 232-8039

Fax: (248) 246-9524

**____________________**

**Approximate date of commencement of proposed sale to the public:** 

As soon as practicable following the effective date of this registration statement is declared effective by the Registrant and from time to time thereafter, as determined by the Selling Stockholders.

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

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

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

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

**___________________**

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

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

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

**___________________**

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

**PROSPECTUS**

**Cannabis Bioscience International Holdings, Inc.**

 **8,894,797,743 SHARES OF COMMON STOCK**

This Prospectus relates to the offer and sale of up to 8,894,797,743 shares of the common stock, without par value ("Common Stock"), of Cannabis Bioscience International Holdings, Inc., a Colorado corporation (the "Shares"), of which 6,250,000,000 shares are offered by the Company and 2,644,797,743 shares are offered by the Selling Stockholders. The Company will receive the proceeds of sales of the shares that it sells, but none of the proceeds of the sales of the shares that are sold by the Selling Stockholders. The Company is offering the shares to be sold by it at an aggregate offering price of $5,000,000.

**An investment in Common Stock is speculative and involves a high degree of risk. Therefore, before purchasing Common Stock, investors should carefully consider the risk factors and other uncertainties described in this Prospectus. See** "**[Risk Factors.](#s2)**"

**We are an "emerging growth company" as defined under the U.S. federal securities laws and, as such, may elect to comply with reduced public company reporting requirements for this Prospectus and future filings. See "[Prospectus Summary – Implications of Being an Emerging Growth Company](#s22)**."

The Common Stock is quoted on the OTC Pink tier of the alternate trading system operated by OTC Markets Group Inc. ("OTC").

The Company and the Selling Stockholders will offer their shares at $0.0008 per share (the "Fixed Offering Price"). See "Plan of Distribution" for further information. The Selling Stockholders may sell any, all or none of their shares and the Company does not know when, in what amounts or in what manner they may sell their shares.

On December 6, 2022, the Company changed its corporate name from China Infrastructure Construction Corp. to Cannabis Bioscience International Holdings, Inc. and intends to obtain a new trading symbol reflecting the name change from the Financial Industry Regulatory Authority ("FINRA").

The Selling Stockholders and any broker-dealers or agents involved in selling the Shares may be deemed to be underwriters within the meaning of the Securities Act of 1933, as amended (the "Securities Act"), in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the Shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

The Selling Stockholders and any other person participating in the sale of the Shares will be subject to the provisions of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules and regulations promulgated thereunder. These rules include, without limitation, Regulation M, which may limit the timing of purchases and sales of any of the Shares by the Selling Stockholders and any other person. In addition, Regulation M may restrict the ability of any person engaged in the distribution of the Shares to engage in market-making activities with respect to the particular shares being distributed, which may affect the marketability of the Shares and the ability of any person or entity to engage in market-making activities with respect to the Shares.

Once sold under the registration statement of which this Prospectus forms a part, the Shares will be freely tradeable in the hands of persons other than our affiliates.

We have paid and will pay all expenses incurred in registering the shares, whether offered by the Company or the Selling Stockholders, including legal and accounting fees. See "[Plan of Distribution.](#s16)" For information regarding expenses of registration, see "[Use of Proceeds.](#s4)"

The Jumpstart Our Business Startups Act, or the JOBS Act, was enacted in April 2012 to encourage capital formation in the United States and reduce the regulatory burden on new-public companies that qualify as "emerging growth companies." We are an "emerging growth company" within the meaning of the JOBS Act. As an "emerging growth company," we intend to take advantage of certain exemptions from various public reporting requirements, including the requirement that our internal control over financial reporting be audited by our independent registered public accounting firm pursuant to Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, certain requirements related to the disclosure of executive compensation in this Prospectus and our periodic reports and proxy statements, and the requirement that we hold a non-binding advisory vote on executive compensation and any golden parachute payments. We may take advantage of these exemptions until we are no longer an "emerging growth company."

**NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.**

The date of this Prospectus is _________________, 2023.

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;<u>Page</u> |
| [About This Offering](#s1) | 6 |
| [Risk Factors](#s2) | 7 |
| [Cautionary Note Regarding Forward Looking Statements](#s3) | 20 |
| [Use of Proceeds](#s4) | 22 |
| [Dividend Policy](#s5) | 25 |
| [Capitalization](#s6) | 25 |
| [Dilution](#s7) | 26 |
| [Management's Discussion and Analysis of Financial Condition and Results of Operations](#s8) | 27 |
| [Description of Business](#s9) | 33 |
| [Management](#s10) | 44 |
| [Executive Compensation](#s11) | 45 |
| [Certain Relationships and Related Party Transactions](#s13) | 49 |
| [Market Price for Our Common Equity and Related Shareholder Matters](#s14) | 54 |
| [Description of Capital Stock](#s15) | 54 |
| [Shares Eligible For Future Sale](#s23) | 57 |
| [Material U.S. Federal Income Tax Consequences to Non-U.S. Holders of Common Stock](#s17) | 58 |
| [Plan of Distribution](#s16) | 61 |
| [Legal Opinion](#s18) | 65 |
| [Experts](#s19) | 65 |
| [Additional Information](#s20) | 65 |
| [Index to Financial Statements](#s21) | 66 |

---

**Through and including _____________, 2023 (the 25th day after the date of this Prospectus), all dealers effecting transactions in these securities, whether or not participating in this offering, may be required to deliver a prospectus, in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.**

**This Prospectus forms a part of a registration statement on Form S-1 that we filed with the SEC. Under this registration statement, the Selling Stockholders may, from time to time, sell their shares, as described in this Prospectus. We will not receive any proceeds from the sale of the Shares by any such Selling Stockholders. See "[Use of Proceeds.](#s4)"** 

Neither we nor the Selling Stockholders have authorized anyone to provide any information or make any representations other than those contained in this Prospectus or any free writing prospectuses we have prepared. Neither we nor the Selling Stockholders take responsibility for and cannot assure as to the reliability of any information that others may give you, other than the information contained in this Prospectus. This Prospectus is an offer to sell only the shares offered hereby, but only under circumstances and in jurisdictions where it is lawful. The information contained in this Prospectus is current only as of its date, regardless of the time of delivery of this Prospectus or any sale of Common Stock.

**For investors outside the United States:** Neither we nor the Selling Stockholders have taken any action that would permit this offering or possession or distribution of this Prospectus in any jurisdiction where action for that purpose is required, other than in the United States. Persons outside the United States who come into possession of this Prospectus must inform themselves about and observe any restrictions relating to the offering of the shares of Common Stock and the distribution of this Prospectus outside the United States.

**PROSPECTUS SUMMARY**

*This summary highlights information contained elsewhere in this Prospectus. Because this is only a summary, it does not contain all information that may be important to you. You should read the entire Prospectus and should consider, among other things, the matters set forth under "[Risk Factors](#s2)," "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#s8)" and the consolidated financial statements and the notes thereto appearing elsewhere in this Prospectus before making an investment decision. This Prospectus contains forward-looking statements and information relating to the Company. See "[Cautionary Notes.](#s3)"*

 

The Company is based in Houston, Texas, and was established in 2003. For more detailed information respecting its corporate history, see "[Description of Business – History.](#s9)" The address of our principal executive office is 6201 Bonhomme Road, Suite 466S, Houston, TX 77036, and our telephone number is (832) 606-7500. Its website is www.chnc-hdh.com. The information contained thereon is not intended to be incorporated into this Prospectus or the registration statement of which it is a part.

We provide educational and other services to the cannabis industry (the "Pharmacology University Business") (see "[Description of Business – Business – Pharmacology University Business](#s9)"), clinical trial services to Sponsors and CROs (the "Alpha Research Business") (see "[Description of Business – Business – Alpha Research Business](#s9)") and diagnostic services related to sleep disorders through the Alpha Fertility and Sleep Center (the "AFSC") (see "[Description of Business – Business – AFSC Business](#s9)"). "Sponsor" means a person who takes responsibility for and initiates a clinical investigation of a drug or medical device, including an individual or pharmaceutical company, governmental agency, academic institution, private organization, or other organization. "CRO" means a person that assumes, as an independent contractor with a Sponsor, one or more of the obligations of a Sponsor, such as the design of a protocol, selection or monitoring of investigations, evaluation of reports, and preparation of materials to be submitted to the U.S. Food and Drug Administration (the "FDA").

**Implications of Being an Emerging Growth Company**

We are an "emerging growth company" as defined in the Jumpstart Our Business Startups Act (known as the "JOBS Act"). Under the JOBS Act, we may utilize reduced reporting requirements that are otherwise applicable to public companies, including delaying auditor attestation of internal control over financial reporting, providing only two years of audited financial statements and related Management's Discussion and Analysis of Financial Condition and Results of Operations in this Prospectus and the reports that we will file with the U.S. Securities and Exchange Commission (the "SEC"), including reduced executive compensation disclosures.

We are permitted to remain an emerging growth company for up to five years from the date of the first sale in this offering. However, if certain events occur before the end of that period, including our becoming a "large accelerated filer," our annual gross revenue's exceeding $1.07 billion or our issuance of more than $1.0 billion of nonconvertible debt in any three-year period, we will cease to be an emerging growth company.

We have elected to take advantage of certain of the reduced disclosure obligations in this Prospectus and the registration statement of which it is a part and may elect to take advantage of other reduced reporting requirements in future filings. In particular, in this Prospectus, we have provided only two years of audited financial statements and have not included all of the information relating to executive compensation that would be required if we were not an emerging growth company. As a result, the information that we provide to our stockholders may be different from that which might be received from public reporting companies that are not emerging growth companies. We have irrevocably elected to avail ourselves of the extended transition period for complying with new or revised accounting standards and therefore, we will be subject to the same new or revised accounting standards as private companies.

**Recent Developments**

***The COVID-19 pandemic has harmed the Company***

Early in 2020, the COVID-19 pandemic resulted in decreased business activity and restrictions on the conduct of businesses, including mandatory lockdowns. Because of these restrictions, all our classrooms and public venues were closed and other Pharmacology University Business activities that required face-to-face contact, such as its consulting services and franchising and marketing efforts, were sharply reduced or terminated. Among other things, the Pharmacology University Business closed its seminars in Ecuador and the Dominican Republic; ceased holding classes at the University of Tadeo in Bogota, Cartagena and Santa Marta, Colombia; and ceased all travel. The business conducted by the Alpha Research Business has also been adversely affected because several of the clinical studies in which it was participating were deferred, shortened or canceled. These restrictions have been reduced or eliminated in many jurisdictions, but if the pandemic resurges, they could be reimposed. We have not been able to resume classroom teaching and seminars, consulting services, franchising and marketing efforts and the Alpha Research Business has continued to be adversely impacted.

As a result of the pandemic, we experienced substantial reductions in our revenues and our losses increased in our educational and clinical trial businesses. See "[Management's Discussion and Analysis of Financial Condition and Results of Operations – Impact of the Covid-19 Pandemic.](#s8)" To protect our business from disruption caused by the COVID-19 pandemic and to enable our students to continue to be educated, we created online courses. We currently have over 100 online videos in English, Spanish, Portuguese, Italian and Arabic. We also commenced the use of Zoom meetings to hold virtual classes to teach students and be able to respond to their questions in real time. We believe that these measures have helped us to manage our business prudently during the pandemic; nevertheless, much of our business depends on personal contacts, and we have not been able to reduce the adverse effects of the pandemic's reducing or eliminating personal contact.

On December 6, 2022, we changed our corporate name from China Infrastructure Construction Corp. to Cannabis Bioscience International Holdings, Inc.

**Risk Factors Summary**

Our business is subject to many risks and uncertainties of which you should be aware before deciding whether to invest in Common Stock, in addition to general business risks. These risks are more fully described in the section titled "Risk Factors" immediately following this Prospectus Summary. These risks include, among others, the following:

&nbsp;&nbsp;&nbsp;&nbsp;· The
 COVID-19 pandemic and the impact of actions to mitigate the COVID-19 pandemic have materially
 and adversely impacted and will continue materially and adversely to impact our business,
 results of operations and financial condition. In particular, our revenues have decreased
 and our losses have increased, in each case materially, since the onset of the pandemic.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company expects to encounter significant challenges in recovering from the adverse effects
 of the Covid-19 pandemic and can give no assurances respecting its success in meeting them.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company has incurred net losses each year since its inception and may not be able to achieve
 profitability. It has incurred net losses of $885,171, $159,308, and $541,152
 for the fiscal years ended May 31, 2022, May 31, 2021, and May 31, 2020, respectively,
 and $211,123 for the three months ended August 31, 2022. Its accumulated deficit for the
 fiscal years ended May 31, 2022, May 31, 2021, and May 31, 2020,
 were $3,650,156 and $2,764,985, respectively, and was $3,681,280 for the three months ended
 August 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Alpha Research Business is conducted in a highly competitive industry and may not be able
 to compete successfully with its current or future competitors.

&nbsp;&nbsp;&nbsp;&nbsp;· Both
 the Pharmacology University Business and the Alpha Research Business are subject to a wide
 variety of complex, evolving, and, with respect to the Pharmacology University Business,
 sometimes inconsistent and ambiguous laws and regulations that may adversely impact their
 operations and could cause the Company to incur significant liabilities including fines and
 criminal penalties, which could have a material adverse effect on its business, results of
 operations, and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Alpha Research Business is conducted in a highly competitive industry and may not be able
 to compete successfully with its current or future competitors.

&nbsp;&nbsp;&nbsp;&nbsp;· Following
 the Offering, there will be a large number of shares of Common Stock that may be sold in
 the public markets, which may substantially and adversely affect their market price. For
 further information, see " [Risk Factors – Risks Related to the Common Stock and the Offering – There will be a larger number of shares of Common Stock that will be eligible to be sold in the public markets](#s2) " and " [Shares Eligible for Future Sale.](#s23) "

&nbsp;&nbsp;&nbsp;&nbsp;· The
 Company may not be able to sell all of the Shares at the Fixed Offering Price. See " [Risk Factors – Risks Related to the Common Stock and the Offering – We may change the Fixed Offering Price.](#s2)

**THE OFFERING**

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| | |
|:---|:---|
| Amount of Offering by us: | $5000000 |
| Offering Price per Share: | The shares offered by the Company will be sold at a the Fixed Offering Price of $_______ per share for the duration of the offering (the "Fixed Offering Price"). The Selling Stockholders may offer their shares in different ways and at varying prices. See "[Plan of Distribution.](#s16)" |
| Shares of Common Stock offered by the Company: | 6,250,000,000 shares |
| Shares of Common Stock offered by the Selling Stockholders: | 2,644,797,743 shares |
| Shares of Common Stock outstanding prior to the Offering: | ___________ shares |
| Shares of Common Stock outstanding after the Offering: | ___________ shares |
|  | The number of shares of Common Stock to be outstanding after the Offering is based on _____________ shares of Common Stock outstanding as of __________ ___, 2023. |
| Voting rights: | Each share of Common Stock and Series A Preferred is entitled to one vote per share. The Series B Preferred has 60% of the voting power in the Company and all of the outstanding shares are held by the Company's chief executive officer, who is also a director. By virtue of his holdings of Series B Preferred, he has the power to control the outcome of all matters submitted to stockholders for approval, including the election of directors and the approval of any change-of-control transaction. See "[Description of Capital Stock.](#s15)" |
| Use of Proceeds: | The proceeds that we receive from sales of the shares offered by the Company will be used for the purposes set forth under "[Use of Proceeds.](#s4)". We will not receive any proceeds from the sale of the Shares offered by the Selling Stockholders. |
| Trading symbol: | CHNC |
| Risk Factors: | An investment in Common Stock is highly speculative and involves a high degree of risk for the reasons set forth in "[Risk Factors](#s2)" and elsewhere in this Prospectus. |
| Fees and Expenses: | We will pay all expenses incident to the registration of the shares offered by this Prospectus, except for sales commissions and other expenses of the Selling Stockholders. |

---

**RISK FACTORS**

*An investment in Common Stock involves a high degree of risk. Prospective investors should carefully consider the risks described below and all of the other information contained in this Prospectus, including the Company's consolidated financial statements and the related notes and "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#s8)" before deciding whether to invest in Common Stock. If any of the events described below occur, the Company's business, business prospects, cash flow, results of operations or financial condition could be materially and adversely harmed. In these events, the trading price of the Common Stock could decline, and investors might lose all or part of their investments. Investors should read the section entitled "[Forward-Looking Statements](#forward)" for a discussion of what types of statements are forward-looking, as well as the significance of such statements in the context of this Prospectus.*

 

*The following is a discussion of the risk factors that the Company believes are currently material. These risks and uncertainties are not the only ones facing the Company, and in addition to general business risks, there may be other matters of which the Company is not aware or that it currently considers immaterial. All of these could adversely affect the Company's business, business prospects, cash flow, results of operations or financial condition.*

**Business-Related Risks**

***The COVID-19 pandemic and the efforts to mitigate its impact may have an adverse effect on the Company's business, liquidity, results of operations, financial condition and price of its securities.***

The Covid-19 pandemic has materially and adversely impacted the Company and its results of operations, particularly as a result of limitations on the ability of the Pharmacology University Business to conduct classes and other face-to-face activities due to lockdowns. Public health authorities and governments at local, national and international levels have from time to time announced various measures of varying intensity to respond to this pandemic. Some measures that have directly or indirectly impacted the Company's business include voluntary or mandatory quarantines and business closures, restrictions on travel and limiting gatherings of people in public places.

For detailed information respecting the impact of the pandemic on the Company's financial results, see "[Management's Discussion and Analysis of Financial Condition and Results of Operations – Impact of the Covid-19 Pandemic.](#s8)"

Although many of the measures introduced to combat the COVID-19 pandemic have been relaxed and in some cases terminated, the Company does not know when it will be able to resume its normal operations, particularly in the classroom, franchising and consulting activities of the Pharmacology University Business. However, we expect that returning to normal operations will require time, will involve substantial costs and will involve uncertainties, including (i) whether the pandemic will continue to abate, (ii) what measures governments will take if the pandemic intensifies and (iii) the ability of our customers and suppliers to recover from the effects of the pandemic.

To the extent the pandemic has and may continue to affect the Company's business and financial results adversely, it may also have the effect of heightening many of the other risks to which the Company is subject, whether or not described under "[Risk Factors](#s2)." If the pandemic does not continue to abate or it intensifies, the Company's ability to execute its business plan on a timely basis or at all may be materially impeded.

***We have a limited operating history, making it difficult to forecast our revenue and evaluate our business and prospects.***

We have a limited operating history and as a result, our ability to forecast our future results of operations and plan for growth is limited and subject to many uncertainties. We have encountered and expect to continue to encounter risks and uncertainties frequently experienced by growing companies in rapidly evolving industries, such as the risks and uncertainties described herein. Accordingly, we may be unable to prepare accurate internal financial forecasts or replace anticipated revenue that we do not receive as a result of delays arising from these factors, and our results of operations in future reporting periods may be below the expectations of investors. If we do not address these risks successfully, our results of operations could differ materially from our estimates and forecasts or the expectations of investors, causing our business to suffer and the market price of the Common Stock to decline.

 **

 ****

 **

 ****

***We have a history of net losses, we anticipate increasing operating expenses in the future, and we may not be able to achieve and, if achieved, maintain profitability.***

We have incurred significant net losses each year since our inception (see "[Management's Discussion and Analysis of Financial Condition and Results of Operations](#s8)"). We expect to continue to incur net losses for the foreseeable future and we may not achieve or maintain profitability in the future. It is difficult for us to predict our future results of operations or the limits of our market opportunity. We expect our operating expenses to significantly increase over the next several years as we hire additional personnel, particularly in sales and marketing, and expand our operations, both domestically and internationally. We may also selectively pursue acquisitions. In addition, because we will become subject to the reporting and other requirements of the Exchange Act as a result of the effectiveness of the registration statement of which this Prospectus is a part, we will incur additional significant legal, accounting, and other expenses that we did not incur previously. If our revenue does not increase to offset the expected increases in our operating expenses, we will not become profitable. Our growth could be impeded for many reasons, including, but not limited to, those set forth under "[Risk Factors.](#s2)" Our failure to sustain consistent profitability could cause the market price of the Common Stock to decline.

***The Company requires substantial additional capital. If the Company cannot raise capital, it may have to curtail its operations or it could fail.***

The Company requires substantial additional capital through public or private debt or equity financings to continue operating, as well as to fund its operating losses, increase its sales and marketing capacity, take advantage of opportunities for internal expansion or acquisitions, hire, train and retain employees, develop and complete existing services and new services and products and respond to economic and competitive pressures. The Company needs $5,000,000 to execute its business plan and meet its other corporate expenses, some or all of which may be provided from the sale of the Shares. If it cannot raise such capital, it may have to alter its business plan or curtail its operations, or it could fail. The financial condition of the Company presents a material risk to investors and may make it difficult to attract additional capital or adversely affect the terms on which the Company can obtain it. For further information, see "[Management's Discussion and Analysis of Financial Condition and Results of Operations – General Statement of Business – Going Concern](#s8)" and "[– Liquidity and Capital Resources.](#s8)"

The Company has received no commitment for financing from investors or banks and no assurance can be given that any such commitment will be forthcoming or, if so, in what amount and on what terms.

 ***The preceding risk factors raise substantial doubt about our ability to continue as a going concern and our independent registered public accounting firm has included an explanatory paragraph relating to our ability to continue as a going concern in its report on our audited consolidated financial statements contained in this Prospectus.***

The consolidated financial statements contained in the Prospectus were prepared on the assumption that we will continue as a going concern. Accordingly, the accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern. We do not have adequate funds available, and the Offering may not provide sufficient proceeds to fund our anticipated expenses without obtaining significant additional financing. This raises substantial doubt about our ability to continue as a going concern. The perception that we may not be able to continue as a going concern may materially limit our ability to raise additional funds through the issuance of new debt or equity securities or otherwise and no assurance can be given that sufficient funding will be available when needed to allow us to continue as a going concern. This perception may also make it more difficult to operate our business due to concerns about our ability to meet our contractual obligations. Our ability to continue as a going concern is contingent upon, among other factors, our ability to sell shares of Common Stock, including those that we are offering by this Prospectus, and obtaining additional capital. We cannot provide any assurance that we will be able to raise additional capital. If we cannot secure additional capital, we may be required to curtail our operations and take measures to reduce costs to conserve cash in amounts sufficient to sustain operations and meet our obligations. These measures could cause significant delays in the realization of our business plan. It is not presently possible for us to predict the potential success of our business plan. We cannot predict the revenue or the income potential of our proposed businesses and operations. If we cannot operate as a viable entity, you may lose some or all of your investment.

In addition, the report of our independent registered public accounting firm with respect to our consolidated financial statements appearing elsewhere in this Prospectus contains an explanatory paragraph stating that the Company had negative working capital at May 31, 2021, had incurred recurring losses and recurring negative cash flow from operating activities, and had an accumulated deficit, raising substantial doubt about its ability to continue as a going concern. For information about Management's evaluation of and plans regarding these matters, see "[Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources](#s8)" and Note 3 to its audited consolidated financial statements.

***We May be Affected by Inflation.***

Inflation rates have increased and may continue to rise. Companies from which we purchase goods and services may raise their prices and we may be unable to pass these increases on to our customers. This could adversely affect our business, including our competitive position, market share, revenues and operating income.

***We May be Affected by Increasing Interest Rates.***

Rising interest rates may reduce our access ability to borrow, which may adversely affect our business plans and growth, and will increase the cost of our borrowings, which would reduce our earnings.

***Because the Pharmacology University Business deals with persons that operate in the cannabis industry, it faces unique, unpredictable and evolving risks.***

Although the Company does not sell cannabis, risks related to the cannabis industry that may adversely affect its customer and potential customers may, in turn, adversely affect demand for the services and products offered by the Pharmacology University Business. Specific risks faced by companies operating in the cannabis industry include the following:

***<u>Cannabis is illegal under federal law.</u>***

Cannabis is illegal under federal law, as is growing, cultivating, selling or possessing it for any purpose or assisting or conspiring with those who do so. Additionally, it is unlawful to knowingly open, lease, rent, use, or maintain any place, whether permanently or temporarily, for the purpose of manufacturing, distributing, or using cannabis. Even in states in which the use of cannabis has been legalized, its use remains a violation of federal law, because these federal laws preempt state laws. Strict enforcement of these federal laws would likely result in clients' inability to operate, which could adversely affect demand for the Company's services.

***<u>Uncertainties exist respecting enforcement.</u>***

The enforcement of federal laws relating to cannabis has varied and may continue to vary in intensity. Some administrations have indicated that they intend to enforce such laws vigorously, while others have deprioritized enforcement to varying degrees, based, for example, on whether the laws of a state in which an offense occurred have legalized cannabis or whether the offense relates to the recreational of medical use of cannabis. The Company believes that the Department of Justice (the "DOJ") under the Biden administration is not prioritizing enforcement of the CSA, but the extent to which the DOJ will seek to enforce the CSA under a future administration and against whom enforcement will be sought is unclear.

Since 2014, it has been the policy of the Department of the Treasury to deprioritize enforcement of the Bank Secrecy Act against financial institutions and marijuana-related businesses which utilize them. If the Department of the Treasury were to change this policy, it would be more difficult for our clients and potential clients to access the U.S. banking systems and conduct financial transactions, which could in turn adversely affect our operations.

Since 2014, in annual bills, Congress has prohibited federal funds from being used to prevent states from implementing their own medical marijuana laws, but has not codified federal protections for medical marijuana patients and producers. Despite this prohibition, the DOJ maintains that it can prosecute violations of the federal marijuana ban. No assurance can be given that Congress will continue to pass such bills. If it does not do so, the risk of federal enforcement that overrides such state laws would increase.

We cannot foresee developments relating to these matters and cannot predict how and the extent to which we could be affected by them; however, these effects could be sudden and adverse.

***<u>The Company could become subject to racketeering laws</u>.***

While the Company does not grow, handle, process or sell cannabis or products derived from it, its receipt of money from clients that do so exposes it to risks related to the Racketeer Influenced Corrupt Organizations Act ("RICO"). RICO is a federal statute providing civil and criminal penalties for acts performed as part of an ongoing criminal organization. Under RICO, it is unlawful for any person who has received income derived from a pattern of racketeering activity (which includes most felonious violations of the federal laws relating to cannabis) to use or invest any of that income in the acquisition of any interest, or the establishment or operation of, any enterprise which is engaged in interstate commerce. RICO also authorizes private parties whose properties or businesses are harmed by such patterns of racketeering activity to initiate civil actions. A violation of RICO could result in fines, penalties, administrative sanctions, convictions or settlements arising from civil or criminal proceedings, seizure of assets, disgorgement of profits, cessation of business activities or divestiture.

***<u>Banking regulations could limit access to banking services and expose the Company to risk</u>.***

Receipt of payments from clients engaged in the cannabis business could subject the Company to the consequences of federal laws and regulations relating to money laundering, financial record keeping and proceeds of crime, including the Bank Secrecy Act, as amended by the "Patriot Act." Since the Company may receive money from persons whose activities are illegal, many banks and other financial institutions could be concerned that their receipt of these funds from the Company could violate federal statutes such as those relating to money laundering, unlicensed money remittances and the Bank Secrecy Act. As a result, banks may refuse to provide services to the Company. Such refusal could make it difficult for the Company to operate. Additionally, some courts have denied cannabis-related businesses bankruptcy protection, thus, making it difficult for lenders to recoup their investments, which may make it more difficult for the Company to raise capital through loans. While the Company has not encountered difficulty in obtaining banking services, no assurance can be given that it will be able to do so.

Since 2014, the DOJ has de-prioritized enforcement of the Bank Secrecy Act against financial institutions and cannabis-related businesses which utilize them. If such enforcement were to increase, it might become more difficult for the Company and its clients and potential clients to access the U.S. banking systems and conduct financial transactions, which could adversely affect the Company's operations.

***<u>Dividends and distributions could be prevented if receipt of payments from clients is deemed to be proceeds of crime</u>.***

While the Company has no intention to declare or pay dividends in the foreseeable future, if any of its revenues were found to have resulted from violations of money laundering laws or otherwise the proceeds of crime, the Company might determine to or be required to suspend the declaration declaring or payment of dividends.

***<u>Further legislative developments beneficial to the Company's operations are not assured</u>.***

The Pharmacology University Business involves providing services to persons who may be directly or indirectly engaged in the cultivation, distribution, manufacture, storage, transportation or sale of cannabis and cannabis products. Its success depends on the continued development of the cannabis industry. Such development depends upon continued legislative and regulatory legalization of cannabis at the state level and either legalization at the federal level or a continued "hands-off" approach by federal enforcement agencies. However, regulatory developments beneficial to the industry cannot be assured. While there may be ample public support for legislative action, other factors, such as the willingness of legislative bodies to act, election results, scientific findings or intangible events, could slow or halt progressive legislation relating to cannabis and or reduce the current tolerance for the use of cannabis, which could adversely affect the demand for the Company's services.

The House of Representatives, in its most recent term, passed bills that would decriminalize cannabis, remove it from the list of scheduled substances under the Controlled Substances Act, eliminate criminal penalties for individuals who manufacture, distribute, or possess cannabis, and prohibit a federal banking regulator from penalizing a depository institution for providing banking services to legitimate cannabis- or hemp-related businesses or ordering a depository institution to terminate a customer account unless (i) the agency has a valid reason for doing so, and (ii) that reason is not based solely on reputation risk. Neither of these bills became law because the Senate did not pass them. None of these bills was adopted by Congress. No assurance can be given that any similar bill will be adopted by the present or any future Congress.

 ***<u>We may be subject to risks relating to bankruptcy laws</u>.***

Some courts have denied marijuana-related businesses bankruptcy protection, thus, making it very difficult for lenders to recoup their investments, which may limit the willingness of banks to lend to our clients and us. The lack of banking and financial services presents unique and significant challenges to businesses in the cannabis industry. We could experience difficulties obtaining and maintaining regular banking and financial services because of the activities of our clients.

***<u>Changes in legislation or clients' violations of law could adversely affect the Company</u>.***

The voters or legislatures of states in which cannabis has been legalized could repeal or amend these laws, which could adversely affect the demand for the Company's services. In addition, changes to and interpretations of laws and regulations could detrimentally affect its clients and, in turn, result in a material adverse effect on its operations. Violations of these laws, or allegations of such violations, could disrupt our clients' business, thereby adversely affecting the Company.

**Changes in government regulation could affect the Alpha Research Business.**

Governmental agencies worldwide, including in the United States, strictly regulate the drug development process. The Alpha Research Business is subject to regulation and its activities involve providing services helping pharmaceutical and biotechnology companies and CROs that are subject to regulation. Changes in regulations, especially those that affect clinical trials, could adversely affect demand for our services. Also, if government efforts to contain drug costs or changes in the practices of health insurers impact pharmaceutical and biotechnology companies' profits from new drugs, they may spend less, or reduce their growth in spending on research and development, thereby reducing the market for clinical trials.

**Failure to comply with existing regulations or contractual obligations could result in a loss of revenue or earnings or increased costs.**

Failure on the part of the Alpha Research Business to comply with applicable regulations, whether imposed directly or required to be complied with by contract, could have adverse effects. If this were to happen, we could be contractually required to repeat the trial at no further cost to our customer, but at substantial cost to us, or the contract could be terminated; in either case, we could be exposed to a lawsuit seeking substantial monetary damages.

**We may bear financial losses because most of our clinical trial contracts are fixed price and may be delayed or terminated or reduced in scope for reasons beyond our control.**

Many of our clinical trials contracts provide for services on a fixed-price or capped fee-for-service basis and they may be terminated or reduced in scope either immediately or upon notice. Cancellations may occur for a variety of reasons, including the inefficacy of a drug or device; its failure to meet safety requirements; unexpected or undesired results; insufficient patient enrollment; insufficient investigator recruitment; a client's decision to terminate the development of a product or to end a particular study; and our failure to perform our duties under the contract properly.

The loss, reduction in scope or delay of a contract or the loss, delay or conclusion of multiple contracts could materially adversely affect our business, although our contracts often entitle us to receive the costs of winding down terminated projects, as well as all fees earned by us up to the time of termination.

**We may suffer losses if we underprice our contracts or incur overrun costs.**

Since Alpha Research Institute's contracts are often structured based on a fixed price or a fee for service with a cap, we would bear the loss if we were to misestimate costs. Underpricing or cost overruns could have a material adverse effect on our business, results of operations, financial condition, and cash flows.

***The potential loss or delay of a contract or multiple contracts could adversely affect our results.***

Most of our contracts for clinical trials can be terminated by our customers upon 30 to 90 days' notice or immediately in certain circumstances. Our clients may delay, terminate or reduce the scope of our contracts for a variety of reasons beyond our control, including but not limited to decisions to forego or terminate a particular clinical trial; lack of available financing, budgetary limits or changing priorities; actions by regulatory authorities; production problems resulting in shortages of the drug being tested; failure of products being tested to satisfy safety requirements or efficacy criteria; unexpected or undesired clinical results for products; insufficient patient enrollment in a clinical trial; insufficient investigator recruitment; shift of business to a competitor or internal resources; product withdrawal following market launch; shut down of manufacturing facilities; or our failure to comply with the provisions of a contract.

In the event of termination, our contracts often provide for fees for winding down the project, but these fees may not be sufficient for us to realize the full amount of revenues or profits anticipated thereunder.

***If the Alpha Research Business fails to perform services in accordance with contractual requirements, regulatory standards and ethical considerations, we could be subject to significant costs or liability and our reputation could be harmed.***

We contract with Sponsors and CROs in performing clinical trials to assist them in bringing new drugs to market. Clinical trials are complex and subject to contractual requirements, regulatory standards and ethical considerations. If we fail to perform in accordance with these requirements, regulatory agencies may take action against us or customers may terminate contracts. Customers may also bring claims against us for breach of our contractual obligations and patients in the clinical trials and patients taking drugs approved on the basis of those clinical trials may bring personal injury claims against us for negligence. Any such action could have a material adverse effect on our results of operations, financial condition and reputation. The occurrence of any of the foregoing could impact our ability to provide the same level of service to our clients, require us to modify our services or increase our costs, which could materially and adversely affect our operating results and financial condition.

***We are subject to federal and state health privacy laws and regulations. If we cannot comply or have not fully complied with such laws and regulations, we could face government enforcement actions, civil penalties, criminal sanctions, or damages, which could harm our reputation and adversely affect our business.***

The Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act and their respective implementing regulations ("collectively, HIPAA"), establishes federal privacy and security standards for the protection of individually identifiable health information that apply to health plans, healthcare clearinghouses, and healthcare providers that submit certain covered transactions, or "covered entities." A subset of these standards also applies to "business associates," which are persons or entities that perform certain services for, or on behalf of, a covered entity that involve creating, receiving, maintaining, or transmitting protected health information.

Some of our customers may be HIPAA-covered entities and service providers, and in that context, we may function as a business associate under HIPAA. Among other things, this status means that, for certain activities, we must comply with applicable administrative, technical, and physical safeguards as required by HIPAA, including stringent data security obligations. Failure to comply with HIPAA can result in significant civil monetary penalties and, in certain circumstances, criminal penalties with fines or imprisonment.

The HIPAA-covered entities and service providers that we serve as a business associate may require us to enter into HIPAA-compliant business associate agreements with them. If we were unable to comply with our obligations as a HIPAA business associate, we could face contractual liability under the applicable business associate agreement.

In addition, many state laws govern the privacy and security of health information in certain circumstances, many of which differ from HIPAA. There may also be costs associated with responding to government investigations regarding alleged violations of these and other laws and regulations, even if there are ultimately no findings of violations or no penalties imposed. These costs could consume our resources and impact our business. Publicity from alleged violations could harm our reputation.

If we are unable to meet the requirements of HIPAA, our business associate agreements or state health privacy laws, we could face contractual liability or civil and criminal liability under HIPAA, all of which could have an adverse impact on our business and generate negative publicity, which, in turn, could have an adverse effect on our ability to attract new customers and adversely affect our business condition and prospects.

***We may be adversely affected by client concentration.***

We derive the majority of our revenues from a few customers. If any of them decreases or terminates its relationship with us, our business, results of operations or financial condition could be materially adversely affected.

***Our business could incur liability if a drug causes harm to a patient. While we are generally indemnified and insured against such risks, we may still suffer financial losses.***

We could suffer liability for harm allegedly caused by a drug or device for which we conduct a clinical trial, either as a result of a lawsuit against the Sponsor or CRO to which we are joined or an action launched by a regulatory body. While we are generally indemnified for such harm under our agreements with Sponsors and CROs, we could nonetheless incur financial losses, regulatory penalties or both. Further, the indemnification obligations of Sponsors and CROS are enforceable by us only if specific facts, which may be difficult to prove or may be subject to dispute, exist. Any claim could result in potential liability for us if the claim is outside the scope of such indemnification, the Sponsor or CRO does not comply with its indemnification obligations or our liability exceeds applicable indemnification limits or available insurance coverage. Further, we do not carry insurance to cover damages for which we are liable. Such a claim could have an adverse impact on our financial condition and results of operations. Furthermore, the associated negative publicity could have an adverse effect on our business and reputation.

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

The Sarbanes-Oxley Act of 2002 ("SOX") requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. However, our independent registered public accounting has advised management that we have the following material weaknesses in internal control: lack of in-house personnel with insufficient technical knowledge to identify and address certain accounting matters; insufficient accounting personnel to perform duties over financial transaction processing, key account reconciliations and reporting; insufficient written policies and procedures over accounting transaction processing such that routine transactions are recorded on an accrual basis in a timely manner; and insufficient in-house knowledge on monitoring accounting standards for the impact of complex accounting standards.

Accordingly, we need to develop and refine our disclosure controls and other procedures to ensure that information required to be disclosed by us in the reports that we will file under the Exchange Act is accumulated and communicated to our principal executive and financial officers. We are also continuing to improve our internal control over financial reporting. To maintain and improve effective disclosure controls and procedures and internal control over financial reporting, we will need to expend significant resources, including accounting-related costs and significant management oversight.

Our current controls and any new controls that we develop may become inadequate because of changes in conditions in our business. Further, weaknesses in our disclosure controls and internal control over financial reporting may be discovered. Any failure to develop or maintain effective controls or any difficulties encountered in their implementation or improvement could adversely affect our results of operations or cause us to fail to meet our reporting obligations and result in a restatement of our consolidated financial statements. Failure to implement and maintain effective internal control over financial reporting could also adversely affect the results of periodic management evaluations and annual independent registered public accounting firm attestation reports regarding the effectiveness of our internal control over financial reporting that we will eventually be required to include in our periodic reports filed with the SEC. Ineffective disclosure controls and procedures and internal control over financial reporting could also cause investors to lose confidence in our reported financial and other information, which could have a negative effect on the trading price of Common Stock. We are not currently required to comply with the SEC rules that implement Section 404 of SOX and are therefore not required to make a formal assessment of the effectiveness of our internal control over financial reporting for that purpose. After the registration statement of which this Prospectus forms a part is made effective, we will be required to provide an annual management report on the effectiveness of our internal control over financial reporting commencing with our second annual report on Form 10-K.

Our independent registered public accounting firm will not be required to attest formally to the effectiveness of our internal control over financial reporting until after we cease to be an "emerging growth company" as defined in the JOBS Act. At that time, our independent registered public accounting firm may issue an adverse report if it is not satisfied with the level at which our internal control over financial reporting is documented, designed or operating. Any failure to maintain effective disclosure controls and internal control over financial reporting could harm our business, results of operations, and financial condition and could cause a decline in the price of Common Stock.

***The Company is an "emerging growth company," as defined in the Securities Act (an "EGC"), and a "smaller reporting company," as defined in Rule 405 promulgated under the Securities Act (an "SRC") and intends to take advantage of certain exemptions from disclosure requirements available to it. Doing so could make the Common Stock less attractive to investors and make it more difficult to compare the performance of the Company with that of other public companies.***

As long as the Company is an EGC, it intends to utilize certain exemptions from reporting requirements that apply to public companies that are not EGCs. Among the reporting requirements from which the Company is so exempted are the auditor attestation requirements of SOX, certain disclosures relating to executive compensation, holding a nonbinding advisory vote on executive compensation and stockholder approval of "golden parachute" payments. The Company is permitted to be an emerging growth company for up to five years or until the earliest of (i) the last day of the first fiscal year in which its annual gross revenues exceed $1 billion, (ii) the date that it becomes a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of Common Stock that is held by non-affiliates exceeds $700 million as of the last business day of its most recently completed second fiscal quarter, or (iii) the date on which it has issued more than $1 billion in nonconvertible debt during the preceding three-year period.

As an SRC, the Company intends to utilize certain reduced disclosure requirements, including publishing two years of audited financial statements instead of three years, as required for companies that are not SRCs. The Company will remain an SRC until the last day of the fiscal year in which it had (i) a public float that exceeded $250 million or (ii) annual revenues of more than $100 million and a public float that exceeded $700 million. To the extent the Company takes advantage of such reduced disclosure obligations, it may make comparison of its financial statements to those of other public companies difficult or impossible.

After the Company ceases to be an EGC, it is expected to incur additional management time and cost to comply with the more stringent reporting requirements applicable to companies that are accelerated filers or large accelerated filers, including complying with the auditor attestation requirements of Section 404 of SOX.

***Changes in existing financial accounting standards or practices may harm our results of operations.***

Changes in existing accounting rules or practices, including generally accepted accounting principles in the United States ("GAAP"), new accounting pronouncements or varying interpretations of current accounting pronouncements or practices could harm our results of operations or the manner in which we conduct our business. Further, such changes could potentially affect our reporting of transactions completed before such changes are effective. GAAP is subject to interpretation by the Financial Accounting Standards Board, FASB, the SEC and various bodies formed to promulgate and interpret appropriate accounting principles. A change in these principles or interpretations could have a significant effect on our reported financial results and affect the reporting of transactions completed before the announcement of a change. Any difficulties in implementing these pronouncements could cause us to fail to meet our financial reporting obligations, which could result in regulatory discipline and harm investors' confidence in us.

***If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our results of operations could be adversely affected.***

Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in our consolidated financial statements and related notes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, as provided in "Management's Discussion and Analysis of Financial Condition and Results of Operations." The results of these estimates form the basis for making assumptions and judgments affecting our consolidated financial statements, including those related to revenue recognition, stock-based compensation, the fair value of Common Stock, valuation of strategic investments, periods of benefit for deferred costs, and uncertain tax positions. Our results of operations may be adversely affected if our assumptions change or if actual circumstances differ from those in our assumptions, which could cause our results of operations to fall below the expectations of securities analysts and investors, resulting in a decline in the trading price of Common Stock.

***The Company's business depends substantially on the continuing efforts of its executive officers, and its business may be severely disrupted if it were to lose the services rendered by any of them.***

The Company's future success depends substantially on the continued services of its executive officers. The Company does not maintain key-man life insurance on its executive officers. If any of these executive officers were unable or unwilling to continue in their present positions, the Company might not be able to replace them readily, if at all. The loss of any of these officers could cause the Company's business to be disrupted, and it could incur additional expenses to recruit and retain new officers.

This risk is increased because the Company has no employment contracts with its officers and is paying them sporadically and in varying amounts as the Company's financial condition permits. Further, their salaries are not commensurate with their contributions and abilities. While none of these officers has indicated when or whether he would terminate his employment if he continues to be paid on the basis set forth above, the Company believes that they may not work for it indefinitely without appropriate and regularly paid compensation. If the Company were to lose any of its officers, its ability to operate would be materially impaired.

***The Company's business depends substantially on recruiting additional members of management and key personnel and its business could be severely disrupted if it were unable to hire such personnel or lose their services.***

The Company needs to attract, hire and retain additional managers and key employees to implement its business plan. If it were unable to do so or if, after being hired, any of the members of the Company's management were lost, it would have to spend a considerable amount of time and resources searching, recruiting, and integrating their replacements, which would substantially divert management's attention from and severely disrupt its business. The Company may face difficulties in attracting and retaining additional management and, if it were to lose any of them, in attracting and retaining their replacements because it cannot presently pay competitive compensation and its future is uncertain.

***Litigation could adversely affect the Company's business, financial condition and results of operations.***

From time to time, the Company may become subject to litigation that may result in liability materially adverse to its financial condition or may negatively affect its operating results if changes to its business operation are required. The cost of defending such litigation could be significant and require the diversion of its resources. Adverse publicity associated with litigation could negatively affect perceptions of the Company, regardless of whether the allegations are valid or whether the Company is ultimately found not to be liable. As a result, litigation could adversely affect the Company's business, financial condition and results of operations.

***Acquisitions, other strategic alliances and investments could result in operating difficulties, dilution, and other harmful consequences that may adversely impact the Company's business and results of operations.***

The Company may acquire other businesses and these transactions could be material to its financial condition and results of operations. The areas where it may encounter risks in connection with acquisitions include, but are not limited to, the failure to successfully further develop the acquired business, the implementation or remediation of controls, procedures and policies at the acquired business, the transition of operations, users and customers onto our existing platforms, and the challenges associated with integrating the acquired business and its employees into the Company's organization, as well as retaining employees of the acquired businesses. Failure to address these risks or other problems encountered in connection with acquisitions successfully could cause the Company to fail to realize the anticipated benefits of such acquisitions, investments or alliances, incur unanticipated liabilities, and harm its business generally.

Such acquisitions could also result in dilutive issuances of the Company's equity securities, the incurrence of debt, contingent liabilities or amortization expenses, impairment of goodwill and purchased long-lived assets, or restructuring charges, any of which could adversely affect its financial condition, results of operations and cash flows. Also, the anticipated benefits and synergies of acquisitions may not materialize.

***Because our success depends in part on our ability to expand our operations outside the United States, our business will be susceptible to risks associated with international operations.***

We currently maintain operations and have personnel outside the United States in Mexico, Peru, Ecuador, Columbia and the Dominican Republic. We plan to expand our operation into Argentina, Chile, Brazil, Panama and other countries where our activities are lawful, and we intend to expand our international operations. In the fiscal years ended May 31, 2021, and May 31, 2020, our non-U.S. revenue was 5% and 14% of our total revenue, respectively. We expect to continue to expand our international operations, but these efforts may not be successful. In addition, conducting international operations subjects us to new risks, some of which we have not generally faced in the United States or other countries where we currently operate. These risks include, among other things: lack of familiarity and burdens of complying with foreign laws, legal standards, regulatory requirements and other barriers, and the risk of penalties to the Company, its management and employees if its practices are deemed to be out of compliance; unexpected changes in regulatory requirements, taxes, trade laws, tariffs, export quotas, custom duties, or other trade restrictions; longer accounts receivable payment cycles and difficulties in collecting accounts receivable; increased financial accounting and reporting burdens and complexities; difficulties in managing and staffing international operations including the proper classification of independent contractors and other contingent workers, differing employer/employee relationships, and local employment laws; increased costs involved with recruiting and retaining an expanded employee population outside the United States through cash- and equity-based incentive programs and unexpected legal costs and regulatory restrictions in issuing our shares to employees outside the United States; global political and regulatory changes that may lead to restrictions on immigration and travel for our employees outside the United States; potentially adverse tax consequences, including the complexities of foreign value added tax (or other tax) systems, and restrictions on the repatriation of earnings; and permanent establishment risks and complexities in connection with international payroll, tax, and social security requirements for international employees.

Additionally, operating in international markets requires significant management attention and financial resources. There is no certainty that the investments and additional resources required to establish operations in other countries will produce the desired revenue or profitability.

Compliance with laws and regulations applicable to our global operations also substantially increases our cost of doing business in foreign jurisdictions. We have limited experience in operating outside the United States, which increases the risk that any operations that we may undertake will not be successful. If we invest substantial time and resources to expand our international operations and are unable to do so successfully and timely, our business, results of operations, and financial condition will suffer. We may be unable to keep current with changes in government requirements as they change from time to time. Failure to comply with these regulations could harm our business. In many countries, it is common for others to engage in business practices that are prohibited by United States law and regulation or by our policies and procedures.

***A significant portion of our operations is conducted in foreign jurisdictions and is subject to the economic, political, legal and business environments of the countries where we do business. Risks associated with such international operations could negatively affect our business, financial condition, results of operations and cash flows.***

We have significant operations outside the United States and plan to expand them. International operations inherently subject us to a number of risks and uncertainties, including those arising from compliance with governmental controls, trade restrictions, restrictions on direct investments, quotas, embargoes, import and export restrictions, tariffs, duties, and regulatory and licensing requirements by domestic or foreign entities, including restrictions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury; difficulties in building, staffing and managing foreign operations (including a geographically dispersed workforce) and maintaining compliance with foreign labor laws; burdens to comply with, and different levels of protection offered by, multiple and potentially conflicting foreign laws and regulations, including those relating to environmental, health and safety requirements and intellectual property; changes in laws, regulations, government controls or enforcement practices with respect to our business and the businesses of our customers; political and social instability, including crime, civil disturbance, terrorist activities, armed conflicts and natural and other disasters; ongoing instability or changes in a country's or region's regulatory, economic or political conditions; local business and cultural factors that differ from our standards and practices, including business practices prohibited by the Foreign Corrupt Practices Act and other anti-corruption laws and regulations; longer payment cycles and increased exposure to counterparty risk; and differing needs of foreign customers.

The international nature of our business subjects us to potential risks that various taxing authorities may challenge the pricing of our cross-border arrangements and subject us to additional tax, adversely impacting our effective tax rate and tax liability.

In addition, international transactions may involve increased financial and legal risks due to differing legal systems and customs. Compliance with these requirements may prohibit the import or export of certain products and technologies or require us to obtain licenses before importing or exporting certain products or technology. Our failure to comply with any of these laws, regulations or requirements could result in civil or criminal legal proceedings, monetary or non-monetary penalties, or both, disruptions to our business, limitations on our ability to import and export products and services, and damage to our reputation.

While the impact of these factors is difficult to predict, any of them could have a material adverse effect on our business, financial condition, results of operations and cash flows. Changes in any of these laws, regulations or requirements, or the political environment in a particular country, may affect our ability to engage in business transactions in certain markets, including investment, procurement and repatriation of earnings.

 ****

***We are subject to anti-corruption, anti-bribery, and similar laws, and non-compliance with them could subject us to criminal penalties or significant fines and harm our business and reputation.***

We are subject to anti-corruption and anti-bribery and similar laws, such as the Foreign Corrupt Practices Act of 1977 (the "FCPA"), and other anti-corruption, anti-bribery and anti-money laundering laws in the United States and in the countries in which we conduct activities. These laws prohibit companies and their employees and agents from promising, authorizing, making, or offering improper payments or other benefits to government officials and others in the private sector. As we increase our international operations, our risks under these laws may increase. Anti-corruption and anti-bribery laws have been enforced vigorously in recent years and interpreted broadly. Noncompliance with these laws could subject us to investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, adverse media coverage, and other consequences. Any investigations, actions or sanctions could harm our business, results of operations, and financial condition. Under some of these laws, we may be held liable for the corrupt or other illegal activities of intermediaries, and our employees, representatives, contractors, partners, and agents, even if we do not explicitly authorize such activities. We intend to implement an anti-corruption compliance program but cannot assure that all of these persons will not take actions in violation of our policies and applicable law, for which we may be ultimately held responsible. Any violation of the FCPA, other applicable anti-corruption laws or anti-money laundering laws could result in whistleblower complaints, negative media coverage, investigations, loss of privileges and severe criminal or civil sanctions, any of which could have a materially adverse effect on our reputation, business, results of operations, and prospects.

***Our business is exposed to domestic and foreign currency fluctuations that could have a material adverse effect on our business, financial condition, results of operations and cash flows.***

Approximately 4.2% of our revenue in the fiscal year ended May 31, 2022, was from customers outside the United States. When the abatement of the Covid-19 pandemic permits the opening of classrooms in Latin America, and if we expand our foreign operations as planned, this percentage may increase. Changes in non-U.S. currencies relative to the U.S. dollar impact our revenues, profits, assets and liabilities. In addition, the weakening or strengthening of the U.S. dollar may result in significant favorable or unfavorable translation effects when the operating results of our non-U.S. business activity are translated into U.S. dollars and could cause our results of operations to differ from our expectations and the expectations of our investors. For our international sales denominated in U.S. dollars, an increase in the value of the U.S. dollar relative to foreign currencies could make our products and services less competitive in international markets. Alternately, a weakening of the currencies in which sales are generated relative to those in which costs are denominated would decrease operating profits and cash flow. Changes in currency exchange rates may also affect the relative prices at which we provide services in foreign markets. In addition, the impact of currency devaluations in countries experiencing high inflation rates or significant currency exchange fluctuations could negatively impact our operating results. While we may use financial instruments to mitigate the impact of fluctuations in currency exchange rates on our cash flows, unhedged exposures would continue to be subject to currency fluctuations.

***If we fail to manage our growth effectively, we may be unable to execute our business plan or maintain high service levels and customer satisfaction.***

We hope to attain rapid growth. Doing so will place significant demands on our management and operational and financial resources. We have established international operations, including Mexico, Peru, Ecuador, Columbia and the Dominican Republic. We plan to expand into Argentina, Chile, Brazil, Panama and other countries where its activities are lawful. In addition, our organizational structure will become more complex as we grow, as will our operational, financial and management controls and reporting systems and procedures. To manage growth in our operations, we will need to continue to grow and improve our operational, financial and management controls and reporting systems and procedures. We will require significant capital expenditures and the allocation of valuable management resources to grow and change in these areas. Our growth will place a significant strain on our management and may distract management from other important functions. If we cannot manage our growth effectively, our reputation, as well as our business, results of operations and financial condition, could be harmed.

***We may not be able to compete effectively.***

While we believe that the market served by the Pharmacology University Business has few participants, if one or more competitors were to enter this market, we might not be able to compete effectively for many reasons, including a competitor's greater financial resources, better services, a more effective sales organization or a superior website. AFSC, in contrast, provides services in a market that is highly fragmented and has many competitors, and in which the ability to compete successfully depends on quality of service, the ability to form and maintain professional relationships and satisfy demanding customers.

Many of our existing competitors have, and some of our potential competitors could have, substantial competitive advantages such as greater recognition and longer operating histories, larger sales and marketing budgets and resources, and, especially in the case of the Alpha Research Business and AFSC, established relationships with customers, greater resources to make acquisitions, lower labor costs and substantially greater financial and other resources. Competitors with greater financial and operating resources may be able to respond more quickly and effectively than we can to new or changing opportunities, developments or customer requirements. Conditions relating to the Alpha Research Business and AFSC could also change rapidly and significantly, potentially adversely, as a result of changes in the laws relating to cannabis, especially at the federal level.

If we do not compete effectively with established companies as well as new market entrants, our business, results of operations, and financial condition could be harmed. Competitive pressures could result in price reductions; fewer customers; reduced revenue, gross profit and gross margins; increased net losses; and loss of market share.

**Risks Related to the Common Stock and This Offering**

***There are risks, including stock market volatility, inherent in owning Common Stock.***

The market price and volume of the Common Stock have been, and may continue to be, subject to significant fluctuations and trading in Common Stock has often been sporadic. These fluctuations may arise from general stock market conditions, the impact of risk factors described herein on our results of operations and financial position, or a change in opinion in the market regarding our business prospects or other factors, many of which may be outside our control. We believe that this has and may continue to materially and adversely affect our ability to fund our business through sales of equity securities and could adversely affect the retentive power of our 2022 Equity Incentive Plan. The lack of an active market for Common Stock may impair investors' ability to sell their shares when they wish to sell them or at prices that they consider reasonable, may reduce the fair market value of their shares and may impair the Company's ability to raise capital to continue to fund operations by selling shares and may impair its ability to acquire additional intellectual property assets by using our shares as consideration.

***We may change the Fixed Offering Price.***

If we cannot sell the Shares at the Fixed Offering Price, we may amend the Registration Statement of which this Prospectus is a part to reduce it one or more times. In any such event, investors who had purchased Shares before the reduction would suffer an immediate and perhaps permanent loss in the market value of their Shares.

***There will be a large number of shares of Common Stock that will be eligible to be sold in the public markets.***

In addition to the 8,894,797,743 shares of Common Stock that are offered by this Prospectus, (i) approximately 935,000,000 shares of Common Stock held by persons who are not affiliates of the Company will be permitted to be sold after January 13, 20224, under Rule 144 promulgated by the SEC under the Securities Act ("Rule 144") without notice to the SEC in unlimited amounts and without restriction as to the manner of sale and (ii) 3,512,111,700 shares of Common Stock held by a person who is an affiliate of the Company will be permitted to be sold under Rule 144 after January 13, 2024, in limited amounts, subject to notice to the SEC and subject to restriction as to the manner of sale and (iii) up to 600,000,000 shares of Common Stock that may be issued under the Company's 2022 Equity Incentive Plan may be sold in the public markets, subject to limitations in the case of shares issued under that plan to affiliates of the Company, upon the filing of a registration statement on Form S-8 with respect thereto or without registration under Rule 144 after being held by for the period required by that rule. The sale of these shares or the perception that they may be sold may substantially and adversely affect the market price of the Common Stock, with the result that persons who acquire shares of Common Stock in the Offering may be able to resell them only at substantial losses. For further information concerning shares that are eligible for future resale, see "[Shares Eligible for Future Resale.](#s23)"

***If the Company issues additional equity or equity-linked securities, investors may incur immediate and substantial dilution in the book value of their shares.***

If the Company issues additional shares of Common Stock (including under stock options or warrants) or securities convertible into or exchangeable or exercisable for shares of Common Stock, its stockholders, including investors who purchase shares of Common Stock in the Offering, may experience additional dilution. Any such issuances may result in downward pressure on the price of the Common Stock. No assurance can be given that investors will be able to sell shares sold pursuant to this Prospectus at a price per share that is equal to or greater than the prices that they pay.

***The Company does not intend to pay dividends for the foreseeable future and investors must rely on increases in the market price of the Common Stock for returns on their investments.***

For the foreseeable future, the Company intends to retain its earnings, if any, to finance the development and expansion of our business, and the Company does not anticipate paying any cash dividends on the Common Stock. Accordingly, investors must be prepared to rely on sales of their Common Stock after price appreciation to earn an investment return, but no assurance can be given that the price of the Common Stock will appreciate or if it does, that it will remain at or rise above the level to which it has appreciated. Any determination to pay dividends in the future will be made at the discretion of the Company's board of directors (the "Board") and will depend on our results of operations, financial condition, capital needs, contractual restrictions, restrictions imposed by applicable law and other factors the Company's Board deems relevant.

***Because the Common Stock is subject to the penny stock rules, it may be more difficult to sell.***

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a price of less than $5.00 (subject to exceptions that do not apply to the Common Stock). The penny stock rules require a broker-dealer, at least two business days prior to a transaction in a penny stock not otherwise exempt from those rules, to deliver to the customer a standardized risk disclosure document containing specified information and to obtain from the customer a signed and date an acknowledgment of receipt of that document. In addition, these rules require that, prior to effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive: (i) the purchaser's written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These requirements may have the effect of reducing the trading activity in Common Stock, and therefore stockholders may have difficulty selling their shares.

***One person has voting control of the company and may authorize or prevent corporate actions to the detriment of other stockholders.***

One person, who is an officer and director of the Company, through his ownership of Series B Preferred, has voting control of the Company. Accordingly, he has the power to determine the outcome of all matters requiring the approval of the stockholders, including the election of directors and the approval of mergers and other significant corporate transactions. His interests could conflict with the interests of other stockholders.

**CAUTIONARY NOTES**

**Regarding Forward-Looking Statements**

This Prospectus contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Prospectus, including statements regarding our strategy, future financial condition, future operations, projected costs, prospects, plans, objectives of management, and expected market growth, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "shall," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "goal," "objective," "seeks," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Prospectus include, but are not limited to, statements about the effects of the COVID-19 pandemic on our business and the U.S. and global economies generally; our expectations regarding our financial performance; our expectations regarding future operating performance; our ability to attract and retain customers; our ability to compete in our industries; our ability to meet our liquidity needs; our ability to effectively manage our exposure to fluctuations in foreign currency exchange rates; the increased expenses associated with being a public company; the size of our addressable markets, market share, and market trends, including our ability to grow our business in the countries we have identified as near- term priorities; anticipated trends, developments, and challenges in our industry, business, and the highly competitive markets in which we operate; our ability to anticipate market needs or develop new or enhanced offerings and services to meet those needs; our ability to manage expansion into international markets and new industries; our ability to comply with laws and regulations, including laws affecting the cannabis and pharmaceutical industries, that currently apply or may become applicable to our business both in the United States and internationally; our ability to effectively manage our growth and expand our infrastructure and maintain our corporate culture; our ability to identify, recruit, and retain skilled personnel, including key members of senior management; our ability to successfully defend litigation brought against us; our ability to successfully identify, manage, and integrate any existing and potential acquisitions; our ability to maintain, protect, and enhance our intellectual property; and our intended use of the net proceeds from this offering.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements in this Prospectus primarily on our current expectations, estimates, forecasts, and projections about future events and trends that we believe may affect our business, results of operations, financial condition, and prospects. Although we believe that we have a reasonable basis for each such forward-looking statement, we cannot guarantee that the future results, activity levels, performance, or events and circumstances reflected in the forward-looking statements will be achieved. The outcome of the events described or discussed in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled "Risk Factors" and elsewhere in this Prospectus. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and we cannot predict all of them that could have an impact on the forward-looking statements contained in this Prospectus. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements in this Prospectus relate only to events or circumstances as of the date on which they are made. We undertake no obligation to update any forward-looking statement in this Prospectus to reflect events or circumstances after the date of this Prospectus or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and such statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain, and you should not unduly rely upon them.

You should read this Prospectus and the documents referred to in it completely and with the understanding that our actual future results may be materially different from what we expect. All forward-looking statements in this Prospectus are qualified by these cautionary statements.

**Third-Party Information**

This Prospectus includes information and estimates based on reports and other publications, sources from industry analysts, market research firms and other independent sources that were generally available to the public and not commissioned by us, in addition to management's good-faith estimates and analyses. We believe that such reports and publications are reliable but have not independently verified them or their underlying data sources, methodologies or assumptions. They contain information and estimates that are based on estimates, forecasts, projections, market research, or similar methodologies and are inherently subject to uncertainties. Actual events or circumstances may differ materially from events and circumstances reflected in these reports.

**Descriptions of Contracts**

This Prospectus may contain descriptions of contracts and instruments to which the Company or its officers and directors are parties or by which it is affected. These contracts and instruments are exhibits to the Registration Statement of which this Prospectus is a part and are identified in Item 16, *Exhibits, Financial Statement Schedules*. Where any such contract or instrument is described in this Prospectus, you are referred to the related exhibit, which may be found on the SEC's website, and the description thereof is qualified by such reference.

**USE OF PROCEEDS AND BUSINESS PLAN**

This Prospectus relates in part to shares of Common Stock that may be offered and sold from time to time by the Company and in part to shares being offered and sold by the Selling Shareholders. We will receive proceeds from sales of the shares that we are offering and none of the proceeds of sales of shares offered by the Selling Stockholders. See "[Plan of Distribution.](#s16)"

We will realize gross proceeds from the Offering of $1,250,000 if 25% of the shares offered by us are sold, $2,500,000 if 50% of such shares are sold, $3,750,000 if 75% of such shares are sold and $5,000,000 if 100% of such shares are sold.

**<u>Use of Proceeds</u>**

The following table shows how we expect to use the net proceeds from our sales of the shares in executing our business plan, which is discussed below. Further details as to such use appear in "Business Plan." The table does not represent the order of priority in which such proceeds may be applied.

**Estimated Use of Proceeds for 25%, 50%, 75%, and 100% of Offering**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **25% of Offering** | **25% of Offering** | **50% of Offering** | **50% of Offering** | **75% of Offering** | **75% of Offering** | **100% of Offering** | **100% of Offering** |
|  | **Dollar**<br> **Amount** | **% of Gross Proceeds** | **Dollar Amount** | **% of Gross Proceeds** | **Dollar**<br> **Amount** | **% of Gross Proceeds** | **Dollar<br> Amount** | **% of Gross Proceeds** |
| **<u>Alpha Research Institute</u>** |  |  |  |  |  |  |  |  |
| Increase employees from 6 to 35 | $131250 | 10.5% | $262500 | 10.5% | $393750 | 10.5% | $525000 | 10.5% |
| Obtain new contacts with health professionals, sponsors and CROs | $7500 | 0.6% | $15000 | 0.6% | $22500 | 0.6% | $30000 | 0.6% |
| Contract with at least ten new principal investigators specializing in various areas of medicine | $25000 | 2.0% | $50000 | 2.0% | $75000 | 2.0% | $100000 | 2.0% |
| Conduct at least six seminars with the expectation of generating relationships | $5000 | 0.4% | $10000 | 0.4% | $15000 | 0.4% | $20000 | 0.4% |
| **<u>Total Alpha Research Institute</u>** | $168750 | 13.5% | $337500 | 13.5% | $506250 | 13.5% | $675000 | 13.5% |
| <u>**<u>Pharmacology University</u>**</u> |  |  |  |  |  |  |  |  |
| Increase the number of annual paid subscriptions to Cannabis World Journals to at least 5,000 | $12500 | 1.0% | $25000 | 1.0% | $37500 | 1.0% | $50000 | 1.0% |
| Sell educational materials to third parties | $25000 | 2.0% | $50000 | 2.0% | $75000 | 2.0% | $100000 | 2.0% |
| Resume and increase classroom and seminar teaching | $62500 | 5.0% | $125000 | 5.0% | $187500 | 5.0% | $250000 | 5.0% |
| Increase our portfolio of cannabis-related educational material | $50000 | 4.0% | $100000 | 4.0% | $150000 | 4.0% | $200000 | 4.0% |
| **<u>Total Pharmacology University</u>** | $150000 | 12.0% | $300000 | 12.0% | $450000 | 12.0% | $600000 | 12.0% |
| **<u>Alpha Fertility and Sleep Center</u>** |  |  |  |  |  |  |  |  |
| Expand to be capable of performing sleep tests for 20 patients per month and open a second sleep center | $200000 | 16.0% | $400000 | 16.0% | $600000 | 16.0% | $800000 | 16.0% |
|  Add additional staff for in-house sleep studies | $87500 | 7.0% | $175000 | 7.0% | $262500 | 7.0% | $350000 | 7.0% |
| **<u>Total Alpha Fertility and Sleep Center</u>** | $287500 | 23.0% | $575000 | 23.0% | $862500 | 23.0% | $1150000 | 23.0% |
| **<u>Corporate</u>** |  |  |  |  |  |  |  |  |
| Operating costs | $243750 | 19.5% | $487500 | 19.5% | $731250 | 19.5% | $975000 | 19.5% |
| Overhead | $150000 | 12.0% | $300000 | 12.0% | $450000 | 12.0% | $600000 | 12.0% |
| Legal and accounting | $50000 | 4.0% | $100000 | 4.0% | $150000 | 4.0% | $200000 | 4.0% |
| Operating capital | $200000 | 16.0% | $400000 | 16.0% | $600000 | 16.0% | $800000 | 16.0% |
| **<u>Total Corporate</u>** | $643750 | 51.5% | $1287500 | 51.5% | $1931250 | 51.5% | $2575000 | 51.5% |
| **<u>Total Use of Proceeds</u>** | $1250000 | 100% | $2500000 | 100% | $3750000 | 100% | $5000000 | 100% |

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The foregoing represents our best estimate as to how the proceeds of the shares offered by the Company will be expended. We reserve the right to redirect any portion of the funds either among the items referred to above or to such other projects as our management considers to be in our best interest.

**<u>Business Plan</u>**

**<u>Background</u>**

Since the year ended on May 31, 2020, the Company has striven to grow and improve in the following ways:

**Alpha Research Institute**

Alpha Research Institute has devoted time and attention to bettering interinstitutional relationships with the pharmaceutical industry; improving operational values; creating and re-establishing alliances with clinical study contractors; understanding the needs of its staff and its patients, improving documentation and internal and external communications, offering transportation to patients and increasing participation in clinical trials by addressing potential patients' Covid-related concerns.

**Alpha Fertility and Sleep Center** 

The mission of AFSC, which opened in June 2022, is to provide superior care in sleep medicine and fertility and, in doing so, to address the concerns of each patient and his referring physician's concerns effectively and satisfactorily.

**Pharmacology University**

As a result of the Covid-19 pandemic, which made classroom education impossible, Pharmacology University has focused on the production of educational materials for sale on online platforms (including those operated by Amazon, Zinio, Apple, Walmart/Kobo, Barnes & Noble and Google Books), which maintaining its relationships with academic venues where it expects to resume classroom teaching when the pandemic abates. It also focuses on entering into subscription and commercial agreements with universities and e-commerce platforms.

We have published 50 cannabis-related eBooks in five languages, have produced videos to offer online and have recorded over 13,000 minutes of audio in 5 languages. We have also engaged artificial intelligence services to generate translations of these materials in up to 100 additional languages; while this activity has resulted in increased expenses while producing minimal revenue and no profit, we believe that it will become profitable and become a significant segment of our business.

Several of our online publications have been unified into a single magazine, *Cannabis World Journals,* which began publication in five languages, beginning in the third and fourth quarters of the year ending May 31, 2022.

**Operating Goals**

The Company has established the following principal goals, for the attainment of which it expects to expend approximately $2,425,000 for the period ending May 31, 2024:

**Alpha Research Institute**

The Company's principal goals for Alpha Research Institute are:

· To increase its revenue from clinical trials from $706,008 in the year ended May 31, 2021, to $1,500,000. To achieve this goal, the number of Alpha Research Institute's employees will be increased from its present 6 to approximately 35, comprising approximately 25 employees in the Houston office and approximately 10 patient recruiters, for which the Company will need to spend approximately $525,000.

· To obtain new contacts with health professionals, sponsors and CROs to obtain new and diverse clinical trials at an approximate cost of $30,000.

· To contract with at
 least ten new principal investigators, specializing in various areas of medicine, including cancer, PTSD, rare diseases and glaucoma,
 and organize six training programs on clinical research for health professionals at an approximate cost of $100,000.

· To conduct at least six seminars in Houston with the expectation of generating relationships with personnel in the U.S. pharmaceutical industry in charge of finding new clinical trials at the cost of approximately $20,000.

The total cost of these goals is approximately $675,000.

**Pharmacology University**

The Company's principal goals for Pharmacology University are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· To resume and increase classroom and seminar teaching, which involved approximately four classrooms
 in two countries, generating revenues of approximately $38,440, to 20 classrooms in 5 countries, generating revenues of $1,000,000,
 at an approximate cost of $250,000.

· To increase the number of annual paid subscriptions to Cannabis World Journals to at least 5,000, which
 will require better positioning and improving traffic on the internet and social media by using search engine optimization (SEO) and
 search engine marketing (SEM) strategists at an approximate cost of $50,000.

· To increase our portfolio of cannabis-related educational material from 50 eBooks in five languages,
 154 online videos in five languages, and over 13,000 minutes of audio in 5 languages to 150 eBooks in five languages, 300 online videos
 in more than 100 languages, and over 40,000 minutes of audio in five languages, generating revenues of $1,500,000 at an approximate
 cost of $200,000.

· To sell the above educational materials to third parties, who would resell them worldwide on their
 platforms, we will need to increase our sales staff and supervisors. We believe that this activity could generate revenues of $500,000
 at an approximate cost of $100,000.

The total cost of these goals is approximately $600,000.

**Alpha Fertility and Sleep Center** 

The Company's principal goals for AFSC are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· To expand the existing facility to be capable of performing sleep tests for 20 patients per month,
 with a view to opening a second facility having a larger capacity and a complete laboratory, generating revenues of $2,500,000 at an
 approximate cost of $800,000.

· Add additional staff for in-house sleep studies at an approximate cost of $350,000.

The total cost of these goals is approximately $1,150,000.

The Company intends to devote its manpower and capital resources to execute its business plan, which it believes will enable it to become profitable. No assurance can be given, however, that the Company can obtain any of the goals set forth above, in whole or in part.

Even if the Company sells all of the shares of Common Stock offered by it under this Prospectus, it will need to obtain additional financing to attain the above goals. For further information regarding the Company's capital needs and its ability to meet them, see "[Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.](#s8)"

**DIVIDEND POLICY**

We intend to retain any future earnings and do not anticipate declaring or paying cash dividends in the foreseeable future. If we raise capital through borrowing, the terms of the related instruments may restrict our ability to pay dividends or make distributions. Future determination to declare cash dividends will be made at the discretion of our Board, subject to applicable laws, and will depend on many factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions and such other factors as the Board may deem relevant.

**CAPITALIZATION**

The following table sets forth our capitalization as of August 31, 2022, and as adjusted at that date to give effect to the issuance of all of the shares offered by this Prospectus at the Fixed Offering Price.

---

| | | |
|:---|:---|:---|
|  | **As of August 31, 2022** | **As of August 31, 2022** |
|  | **Actual** | **As Adjusted** |
| Long-term debt: | $**–** | $**–** |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;Common Stock |  |  |
| &nbsp;&nbsp;&nbsp;Series A Preferred | 2500 | 2500 |
| &nbsp;&nbsp;&nbsp;Series B Preferred | **–** | **–** |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 3384105 | 8384105 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (3861280) | (3861280) |
| Total capitalization (stockholders' deficit) | $(497175) | $4525325 |

---

**DILUTION**

If you invest in the Commons Stock, your ownership interest will be diluted to the extent of the difference between the offering price per share of Common Stock and the pro forma as adjusted net tangible book value per share of Common Stock immediately after this offering. Dilution results from the fact that the per share offering price of the Common Stock is substantially higher than the book value per share attributable to our existing stockholders. Pro forma net tangible book value per share represents the amount of stockholders' equity (deficit), excluding intangible assets, divided by the number of shares of Common Stock outstanding at that date, without giving effect to the conversion of the Series A Convertible Preferred Stock, which is convertible into shares of Common Stock, but cannot be so converted, now or for the foreseeable future, on an economically rational basis.

Our historical net tangible book value (deficit) as of ___________ ___, 2023, was $____________, or $_______ per share of Common Stock. Our historical net tangible book value (deficit) is the amount of our total tangible assets, less our total liabilities. Historical net tangible book value (deficit) per share represents historical net tangible book value (deficit) divided by the number of shares of our Common Stock outstanding as of ___________ ___, 2023.

After giving effect to our sale in the offering of the shares of Common Stock offered by the Company at an assumed initial public offering price of $_________ per share, the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of ___________ ___, 2023, would have been approximately $______________, or $_____ per share of Common Stock. This represents an immediate dilution of $____ per share to investors purchasing shares in the Offering.

The following table illustrates such dilution.

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| | |
|:---|:---|
|  Assumed initial public offering price per share | $|
|  Net tangible book value per share as of __________ ___, 2023 | $— |
|  Increase in net tangible book value per share attributable to investors in the Offering |  |
|  Net tangible book value per share after this offering | $|
|  Dilution in net tangible book value per share to investors in the offering | $|

---

The following table summarizes, on a pro forma as adjusted basis described above as of ___________ ___, 2022, the total cash consideration paid and the average price per share paid by our existing stockholders and by our new investors purchasing shares in this offering at the Offering Price of $___ per share, before deducting the estimated offering expenses payable by us:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares<br> Purchased** | **Shares<br> Purchased** | **Total<br> Consideration** | **Total<br> Consideration** | |
|  | **Number** | **Percent** | **Percent** | **Percent** | **Average<br> Price**<br> **Per Share** |
|  Existing stockholders |  | % | $— | % | $|
|  New investors |  |  |  |  |  |
|  Total |  | 100% |  | 100% |  |

---

The foregoing tables and calculations (other than the historical net tangible book value calculation) are based on ______________ shares of our Common Stock outstanding after the Offering and exclude 600,000,000 shares of Common Stock that may be issued under the Incentive Plan and shares of Common Stock that may be issued upon the conversion of the Series A Convertible Preferred Stock, which is convertible into shares of Common Stock, but cannot be so converted, now or for the foreseeable future, on an economically rational basis. To the extent that shares of Common Stock are issued under the Incentive Plan or we issue additional shares of Common Stock in the future, there will be further dilution to investors participating in the Offering. If we raise additional capital through the sale of equity or convertible debt securities, the issuance of these securities could result in further dilution to our stockholders

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

*The financial information discussed below is derived from the Company's unaudited consolidated financial statements for the three months ended August 31, 2022, and its audited consolidated financial statements for the year ended May 31, 2022, which were prepared and presented in accordance with generally accepted accounting principles ("GAAP"). This financial information is only a summary and should be read in conjunction with the audited financial statements and related notes contained herein, which more fully present the Company's financial condition and results of operations at that date. The results outlined in these consolidated financial statements are not necessarily indicative of the Company's future performance. This section and other parts of this Offering Circular contain forward-looking statements that involve risks and uncertainties. Actual results may differ significantly from the results discussed in forward-looking statements.*

 

**Information about the Company**

The Company, headquartered in Houston, Texas, offers services in clinical trials through Alpha Research Institute; cannabis-related education in classrooms, seminars and online through Pharmacology University; and sleep disorder and related fertility problems through Alpha Sleep and Fertility Center. For detailed information about the Company and its operations, see "[Description of Business.](#s9)"

The Company's fiscal year begins on June 1 in each year and ends on May 31 in the following year.

**Going Concern**

As indicated in Note 3 of the notes to the audited consolidated financial statements for the year ended May 31, 2022, there is substantial doubt as to the ability of the Company to continue as a going concern. The Company has generated material operating losses since inception and its ability to continue as a going concern depends on the successful execution of its operating plan, which includes the resumption of services that were interrupted by the Covid-19 pandemic, increasing sales of existing services and introducing new services, as well as raising either debt or equity financing.

The Company needs substantial additional capital to fund its business, including the completion of its business plan and repayment of its debts. No assurance can be given that any additional capital can be obtained or, if obtained, will be adequate to meet its needs, and the Company may need to take measures to remain a going concern. If adequate capital cannot be obtained on a timely basis and satisfactory terms, the Company's operations could be materially negatively impacted, or it could be forced to terminate its operations.

**Impact of the Covid-19 Pandemic**

The COVID-19 pandemic has adversely impacted the Company and its financial results in different ways, depending on the particular business operation. Principally as a result of the pandemic.

 **<u>Pharmacology University Business</u>.** The Company encountered quarantines, restrictions on gatherings and other governmental regulations that precluded classroom education, as well as restrictions on travel that reduced consulting activities. The Company reduced the impact of the pandemic by developing online educational programs and transitioning its workforce to a remote working environment without reducing its workforce. Revenue from this operation was increased from $18,323 (unaudited) in the year ended May 31, 2019, to $44,799 and $38,440 in the years ended May 31, 2020, and May 31, 2021, respectively; revenue for the year ended May 31, 2022, was $13,985; revenue for the quarter ended August 31, 2022, was $18,836.

 **<u>Clinical Trials</u>.** Quarantines, restrictions on gatherings and other governmental regulations, amplified by potential patients' fears of contracting Covid-19 at the Company's clinics, negatively affected clinical trials. In addition, these clinics were subject to closure if cases of the virus were detected. Revenue from this operation changed from $165,666 (unaudited) in the year ended May 31, 2019, to $84,979 and $706,008 in the years ended May 31, 2020, and May 31, 2021, respectively; revenue for the year ended May 31, 2022, was $196,637; revenue for the quarter ended August 31, 2022, was $123,715. The Company believes that it may have been negatively impacted by the association of the pandemic with the People's Republic of China because "China" appeared in its former corporate name. Although the Company has no operations in or any relationship with China, the Company believes that potential investors may have been deterred from considering the Company because of concerns related to that country. For this reason, and because the Company's corporate name does not reflect its activities, it intends to change its name to Cannabis Bioscience International Holdings, Inc.

**Overview** 

The Company provides educational systems focused on medical cannabis in the United States and Latin America, as well as worldwide through online education; services in therapeutic areas of clinical trials; and services relating to sleep disorders, including resulting infertility, through its fertility and sleep center in Houston, Texas. The Company's operating units and their activities are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Alpha
 Research Institute – Clinical trials and medical research.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Pharmacology
 University: – Education, consulting, digital publishing, marketing, and franchising
 related to medical cannabis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Alpha
 Fertility and Sleep Center – services related to sleep disorders.

For further information concerning the Company and its business, see "[Description of Business.](#s9)"

**Results of Operations**

 ***<u>Comparison of the Three Months Ended August 31, 2022, and the Three Months Ended March 31, 2021</u>***

The following table sets forth information from the unaudited consolidated statements of operations for the three months ended August 31, 2022, and August 31, 2021.

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended** <br> **August 31,**  | **Three Months Ended** <br> **August 31,**  |
|  | **2022** | **2021** |
| Revenues | $138082 | $84676 |
| Cost of revenues | 46234 | 14309 |
| Gross profit | 91848 | 70367 |
| Operating expenses | 330763 | 266829 |
| Operating loss | (238915) | (196462) |
| Other income (expense): |  |  |
| &nbsp;&nbsp;&nbsp; Forgiveness of debt | 41666 | 31750 |
| &nbsp;&nbsp;&nbsp; Interest | (13874) | (6575) |
| Net loss | $(211123) | $(171287) |

---

**<u>Revenues</u>**

Revenues increased to $138,082 for the three months ended August 31, 2022, from $84,676 for the three months ended August 31, 2021, primarily due to an increase of $36,330 in revenues from clinical trial contracts, which were $82,916 in the earlier period and $119,246 in the later, and an increase of $8,155 in seminar fees, which were $1,760 in the earlier period and $9,915 in the later. The Company attributes this increase to the reduced effects of the Covid-19 pandemic, in that patients for clinical studies were reluctant to visit clinics or doctor's offices, resulting in the early termination or cancellation of studies and the Company was able to resume seminars. The Company had sales of merchandise of $8,921 for the three months ended August 31, 2022; it did not sell merchandise in the three months ended August 31, 2021.

**<u>Operating Expenses</u>**

Operating expenses for the three months ended August 31, 2022, and August 31, 2021, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended August 31,** | **Three Months Ended August 31,** |
|  | **2022** | **2021** |
| General and administrative | $32879 | $33765 |
| Contract labor | 173849 | 126758 |
| Professional fees | 92122 | 49996 |
| Officer compensation | 12000 | 28297 |
| Rent | 18246 | 25038 |
| Travel | 1667 | 2975 |
| Total operating expenses | $330763 | $266829 |

---

Increased contract labor costs were due to the addition of staff to write, translate, and produce audiobooks, e-books, and online videos. Professional fees increased due to increases in auditing costs incurred principally in connection with the preparation of the Company's audited financial statements for the year ended May 31, 2022, and legal expenses incurred in connection with the preparation of the registration statement of which this Prospectus is a part, as well in the preparation of reports that the Company filed with OTC Markets Group Inc. Officer compensation decreased because an officer left the Company and was not replaced. Travel decreased because of Covid-19 restrictions. Finally, interest increased because the Company's borrowings increased in the latter period.

 **<u>Operating Loss</u>**

For the reasons set forth above, operating loss increased from $196,462 for the three months ended August 31, 2021, to $238,915 for the three months ended August 31, 2022.

 **<u>Other Income</u>**

For the three months ended August 31, 2022, and August 31, 2021, respectively, the Company recorded other income of $41,666 and $31,750 from the forgiveness of PPP loans.

 **<u>Interest</u>**

Interest was $13,874 for the three months ended August 31, 2022, and $6,575 for the three months ended August 31, 2021.

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

Net loss for the three months ended August 31, 2022, was $211,123, compared with a net loss of $171,287 for the three months ended August 31, 2021, for the reasons set forth above in relation to loss from operations and the effect of other income received during that period.

 ***<u>Comparison of the Year Ended May 31, 2022, and the Year Ended May 31, 2021</u>***

The following table sets forth information from the consolidated statements of operations for the years ended May 31, 2022, and May 31, 2021.

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2022** | **2021** |
| Revenues | $214980 | $761737 |
| Cost of revenues | 46763 | 108311 |
| Gross profit | 168217 | 653426 |
| Operating expenses | 1056275 | 769732 |
| Operating loss | (888058) | (116306) |
| Non-operating income (expense): |  |  |
| &nbsp;&nbsp;&nbsp; Interest | (51036) | (43002) |
| &nbsp;&nbsp;&nbsp; Other income | 53923 | – |
| Net income (loss) | $(885171) | $(159308) |

---

 **<u>Revenues</u>**

Revenues were $214,980 and $761,737 for the years ended May 31, 2022, and May 31, 2021, respectively, primarily due to a decrease of $509,371 in revenues from clinical trial contracts, which were $706,008 in the earlier period and $196,637 in the later. The Company attributes this reduction to Covid-19, in that patients for clinical studies were reluctant to visit clinics or doctor's offices, resulting in the early termination or cancellation of studies. Revenues from cannabis-related educational classes and seminars decreased by $24,455, from $38,440 for the year ended May 31, 2021, to $13,985 for the year ended May 31, 2022, primarily due to the effects of the Covid-19 pandemic. Franchise fees were $0 for both years.

 **<u>Operating Expenses</u>**

Operating expenses for the years ended May 31, 2022, and May 31, 2021, consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **Years Ended May 31,** | **Years Ended May 31,** |
|  | **2022** | **2021** |
| General and administrative | $134351 | $904721 |
| Contract labor | 544760 | 263138 |
| Professional fees | 222535 | 101336 |
| Officer compensation | 70983 | 211312 |
| Rent | 75226 | 72244 |
| Travel | 8240 | 31320 |
| Total operating expenses | $1056275 | $769732 |

---

Increased contract labor was due to adding staff to write, translate, and produce audiobooks, e-books, and online videos. Professional fees decreased due to the reduction of $36,316 in study fees due to Covid-19 causing a decrease in clinical trials, even though increases in auditing costs incurred principally in connection with the preparation of the Company's audited financial statements for the year ended May 31, 2021, and legal expenses incurred in connection with the preparation of the registration statement of which this Prospectus is a part, as well in the preparation of reports that the Company filed with OTC Markets Group Inc. Officer compensation decreased because an officer left the Company and was not replaced. Travel decreased because of Covid-19 restrictions.

 **<u>Operating Loss</u>**

For the reasons set forth above, operating loss increased from $116,306 in the year ended May 31, 2021, to $888,058 in the year ended May 31, 2022.

 **<u>Interest</u>**

Interest was $51,306 in the year ended May 31, 2022, and $43,302 in the year ended May 31, 2021.

 **<u>Other Income</u>**

In the year ended May 31, 2022, the Company recorded other income of $53,923 from the forgiveness of PPP loans.

 **<u>Net Income (Loss)</u>**

Net loss for the year ended May 31, 2022, was $885,171, compared with a net loss of $159,308 for the year ended May 31, 2021, for the reasons set forth above in relation to income (loss) from operations and the effect of other income received in the year ended May 31, 2022.

**<u>Liquidity and Capital Resources</u>**

At August 31, 2022, the Company had $1,707 in cash and cash equivalents and accounts receivable of $43,307, negative working capital of $309,751 and commitments of $0 for capital expenditures. The Company had cash in the amount of $_______ on the date of this Prospectus.

During the three months ended August 31, 2022, and August 31, 2021, the Company had negative cash flow from operations of $215,063 and $187,739, respectively, and cash flow from financing activities of $184,789 and $170,119, respectively. During the years ended May 31, 2022, and May 31, 2021, the Company had negative cash flow from operations of $855,704 and $507,705, respectively, and cash flow from financing activities of $864,364 and $421,372, respectively. The Company had accumulated deficits of $3,650,1,156 and $2,764,985 at May 31, 2022, and May 31, 2021, respectively, and an accumulated deficit of $3,861,280 at August 31, 2022.

Since June 1, 2021, the Company has raised capital as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· In the year ended May
 31, 2021, the Company received $56,881 of PPP loans under the Coronavirus Aid, Relief, and Economic Security Act (the "CARES
 Act"). The Company has been notified that all of these loans and the interest accrued thereon have been forgiven in full, subject
 to review by the SBA. The amounts forgiven have been recorded as non-operating income in the consolidated statement of operations
 for the year ended May 31, 2022.

· In the year ended May
 31, 2021, the Company received SBA loans of $106,200.

· In the years ended May
 31, 2022, and the year ended May 31, 2021, the Company received $261,000 and $813,290, respectively, from sales of its Common Stock
 to private investors and in the three months ended August 31, 2022, the Company received $75,000 from such sales.

· In the years ended May
 31, 2022, and the year ended May 31, 2022, the Company received loans, in addition to those described above, of $48,074 and $0, respectively,
 and in the three months ended August 31, 2022, the Company received loans of $109,788 ($60,309 of which was received from an officer).

The Company believes that it will require $2,425,000 to attain the goals described under "Business Plan" and estimates that other capital needs, including operating costs of $975,000, legal/accounting costs of $200,000, overhead of $600,000 and a reserve for contingencies of $800,000 for the next two years, will approximate $2,575,000, totaling $5,000,000.

To the extent that capital needs cannot be met by revenue from operations, profits and the proceeds of the Offering, the Company will need to raise additional capital through the sale of debt or equity securities to public and private investors. There is no assurance that such funding will be available on acceptable terms or at all or that the Company will attain profitability. If the Company cannot raise sufficient funds when required or on acceptable terms, it may have to reduce its operations significantly or discontinue them entirely. To the extent that funds are raised by issuing equity securities or securities that are convertible into the Company's equity securities, its stockholders may experience significant dilution.

As indicated in this Prospectus, the Company was materially and adversely impacted by the Covid-19 pandemic. With the lifting of the restrictions imposed in response to the pandemic, the Company is resuming normal operations in its Pharmacology University and Alpha Research Businesses and has opened its Sleep Center Business. The Company believes that these businesses will produce revenues of $80,000, $600,000 and $120,000, respectively, for the year ending May 31, 2023, totaling $800,000. The Company believes that cost or revenues and operating expenses will total approximately $1,100,000 for that year, resulting in an operating loss of approximately$300,000, compared with operating losses of $885,171 and $159,308 for the years ended May 31, 2022, and May 31, 2021. If the Company is successful in carrying out its business plan, it expects to become profitable in the year ending May 31, 2024, and beyond.

**<u>Off-Balance Sheet Arrangements</u>**

The Company has no off-balance sheet arrangements.

**DESCRIPTION OF BUSINESS**

**<u>History</u>**

The Company was formed in the State of Colorado on February 28, 2003, as a limited liability company under the name Fidelity Aircraft Partners LLC. On December 16, 2009, it converted to a corporation under the name Fidelity Aviation Corporation, and on August 24, 2009, it changed its name to China Infrastructure Construction Corp. On February 28, 2018, the Company changed its name to Hippocrates Direct Healthcare, Inc. and on July 4, 2018, it resumed its present name. On December 6, 2022, it changed its corporate name to Cannabis Bioscience International Holdings, Inc.

From its inception to 2009, the Company sold used aircraft parts and airframe components salvaged from non-flying jet aircraft. Beginning on October 8, 2009, the Company terminated that business and entered into concrete production in the People's Republic of China and Hong Kong through subsidiaries. No information about the Company is available from early 2012 to early 2015, but the current management believes that the Company was dormant during that period. In February 2015, an independent investor obtained control of the Company. On July 25, 2016, the Company disposed of its subsidiaries and on January 6, 2017, transferred control of the Company to another independent investor. On February 5, 2018, control of the Company was acquired by a former member of its management. On December 20, 2019, the present management acquired control of the Company as a result of the acquisition of Pharmacology University, Inc. (see below).

**<u>Acquisition of Hippocrates</u>**

On December 17, 2017, the Company acquired Hippocrates Direct Healthcare, LLC, a Texas limited liability company ("Hippocrates"). Before this acquisition, the Company had no operations and no or nominal assets (a "Rule 144 Shell Company"). As a result of this acquisition, the Company ceased to be a Rule 144 Shell Company. The business of Hippocrates (the "Hippocrates Business"), which was terminated on October 31, 2020, was concierge healthcare.

**<u>Acquisition of Pharmacology University Inc.</u>**

Pharmaceutical University Inc.("PUI") was incorporated in the State of Delaware on January 5, 2017, under the corporate name Canna-Pharmacology University Inc.; on March 15, 2017, its certificate of incorporation was amended to change its corporate name to Pharmacology University Inc. On December 20, 2019, PUI was merged with and into the Company, such that the shareholders of PUI received 4,875,000,000 shares of Common Stock and 2,000,000 shares of the Company's Series A Convertible Preferred Stock ("Series A Preferred") as merger consideration. The Company conducts the business acquired by this merger (the "Pharmacology University Business") under the trade name Pharmacology University. The Pharmacology University Business is generally cannabis-related research and education. For a more detailed description of the Pharmacology University Business, see "[Description of Business – Pharmacology University Business.](#s9)" For a description of the interest of certain members of the management of the Company in this merger, "[Certain Relationships and Related Party Transactions – Merger with Pharmacology University, Inc.](#s13)"

**<u>Acquisition of Precision Research Institute</u>**

On March 31, 2019, the Company entered into the Alpha Research Business by acquiring all of the outstanding units in Precision Research Institute, LLC, a Texas limited liability company ("PRI"), which was formed on May 18, 2016, from the Company's then president. On August 20, 2020, PRI was merged with and into the Company. The Company conducts the Alpha Research Business under the trade name Alpha Research Institute. For a detailed description of the Alpha Research Business, see "[Description of Business – Alpha Research Business.](#s9)"

**<u>Businesses</u>**

The Company has three operations, namely, the Pharmacology University Business, the Alpha Research Business and the Hippocrates Business. Its vision is to provide superior services, while adhering to its core values of integrity, respect, compassion, inclusiveness, social responsibility, excellence and innovation.

***<u>Pharmacology University Business</u>***

**<u>The Cannabis Industry</u>**

The cannabis industry is fast-growing, increasingly complex, and rapidly changing. The Company believes that the growing cannabis industry in numerous U.S. states and other countries represents a significant market opportunity for the Pharmacology University Business, as persons involved in the industry need the educational and other services that it furnishes, as more fully described below.

The U.S. cannabis industry is undergoing rapid growth and change, particularly with the recent opening of opportunities for federally sanctioned research on cannabis in partnership with the Drug Enforcement Administration (the "DEA"), as well as the federal legalization of hemp and corresponding state and federal hemp research programs.

The cannabis market generally is large and growing. In 2020, there were $17.5 billion in annual industry sales, a 46% increase from 2019. As of May 2021, capital raises in cannabis reached $6 billion, signaling increased confidence in projections of aggressive cannabis market growth. According to a report by New Frontier Data, the U.S. legal cannabis market is predicted to more than double by 2025, reaching $41.5 billion in sales and producing a 21% compound annual growth rate ("CAGR").

In the medical market, the demand for cannabis for research is likely to increase significantly over the next few years and decades, due to the increasing number of states legalizing cannabis and the strong public support for cannabis legalization. By 2025, 5.4 million Americans, or 2.4% of U.S. adults, are predicted to be registered patients in medical cannabis states, according to a report by New Frontier Data ("New Frontier"). New Frontier also projects that the medical cannabis market will nearly double to over $16 billion in that time, taking into account more geographies within the U.S. legalizing cannabis, which will lead to market expansion, the normalization of cannabis which will increase the number of consumers, and medical cannabis patients turning to cannabis as an alternative to prescription drugs. The global medical cannabis market is projected to reach $87.4 billion by 2027, according to Global Market Insights ("GMI"). The DEA's aggregate production quotas for cannabis were 3,200 kg in 2022 for dried flower (an estimated $35 million market) and 1,000 kg for cannabis extract (an estimated $100 million market). These aggregate production quotas are expected to continue increasing to meet increasing demand for cannabis research in the U.S. In addition to government funding, some institutions are already receiving private investment in cannabis research. For example, Harvard and MIT recently received a $9 million donation to fund research into cannabis' influence on brain health and behavior. Additionally, Skylight Health Group (formerly named "CB2 Insights") has noted that average prescriptions for qualifying conditions such as chronic pain, PTSD, sleep disorders, epilepsy and anxiety saw a decline of 11% in favor of medical cannabis replacement leading the company to estimate that more than $4 billion in sales that currently go to pharmaceutical products could be redirected towards medical cannabis. Further research on cannabis legalization and its impact on public health is needed and is likely to take place over the coming years, as the DEA has recognized the increased need for cannabis-related research.

In 2019, large pharmaceutical companies in the U.S. spent $83 billion on drug research and development. The private research market, like the federal DEA research program, has an interest in investigating the uses and risks of cannabis and hemp derivatives, not only in states that have legalized medical cannabis, but also in anticipation of potential full legalization.

The high prevalence of cancer is expected to be one of the factors driving the demand for legal cannabis. For instance, according to the World Health Organization (WHO), cancer is the second leading cause of death worldwide and was responsible for about 8.8 million deaths in 2015. In addition, the growing disease burden of chronic pain and significant side effects associated with opioid usage is expected to drive the demand for medical cannabis, which has proved to be a potent product for chronic pain management. The Company believes that these and other applications will lead to increased demand.

 ***Expanding Legalization of Cannabis***

The 2018 Farm Bill in the U.S. created an opportunity for hemp-derived cannabidiol (CBD) products in retail and pharmaceutical channels. Also, many countries, including Canada, China, Italy, Australia, and South Korea, have legalized hemp for growth and export. In the United States, CBD is widely available from retailers, including online, drug and convenience stores, natural products, beauty, grocery, and pet stores. According to the Grand View Research Industrial Hemp Market Analysis, the global CBD market was valued at $4.6 billion in 2018 and is expected to grow at a CAGR of 22.2% from 2019 to 2025. Additionally, the global industrial hemp market size was estimated at $4.71 billion in 2019 and is expected to show a revenue-based compound annual growth rate of 15.8%.

A recent CBS News poll found that 88% of Americans support the legal use of medical cannabis when recommended by a doctor. Sales in the cannabis industry are projected by Cannabis Business Daily to be $15.5 billion and $20.3 billion in 2020 and 2021, respectively and sales could be as high as $37 billion in 2024. The size of the industry was only $3.4 billion industry in 2015. Sharp sales increases in recently launched medical cannabis programs – as well as continued gains in adult-use markets – are expected to fuel much of the industry's growth over the coming years.

Thirty-eight U.S. states, the District of Columbia, Puerto Rico and Guam have legalized some form of whole-plant cannabis cultivation, sales and use for certain medical purposes. Eighteen of those states and the District of Columbia and Northern Mariana have also legalized cannabis for adults for non-medical purposes (sometimes referred to as adult use). Under federal law, however, those activities are illegal. Cannabis, other than hemp (defined by the U.S. government as Cannabis sativa L. with a THC concentration of not more than 0.3% on a dry weight basis), is a Schedule I controlled substance under the CSA. Even in states or territories that have legalized cannabis to some extent, the cultivation, possession, and sale of cannabis, whether in-state or interstate, violate the CSA and are punishable by imprisonment, substantial fines and forfeiture. Moreover, individuals and entities may violate federal law if they aid and abet another in violating the CSA or conspire with another to violate the law. Violation of the CSA is a predicate for violation of other criminal laws, including money laundering laws and RICO. The U.S. Supreme Court has ruled that the federal government has the authority to regulate and criminalize the sale, possession and use of cannabis, even for individual medical purposes, regardless of whether it is legal under state law.

While the U.S. government has not enforced these laws against companies complying with state cannabis laws, it retains the authority to do so, and therefore, the likelihood of any future adverse enforcement against companies complying with state cannabis laws remains uncertain. See "Risk Factors--Because the Pharmacology University Business deals with persons that operate in the cannabis industry, it faces unique, unpredictable and evolving risks." U.S. Attorneys can prosecute violations of the CSA, including cannabis activities that comply with state law; however, U.S. Attorneys have not targeted state-law-compliant entities in recent years. The Company believes that the policy of not prosecuting such entities is likely to continue under current U.S. Attorney General Merrick Garland.

Since 2014, versions of the U.S. omnibus spending bill have included provisions prohibiting the DOJ, which includes the DEA, from using appropriated funds to prevent states from implementing their medical-use cannabis laws. In 2016, the U.S. Court of Appeals for the Ninth Circuit held that this provision prohibits the DOJ from spending funds to prosecute individuals who engage in conduct permitted by state medical-use cannabis laws and who strictly comply with such laws and other courts that have considered the issue have ruled similarly. However, the court noted that if these provisions were not continued, prosecutors could prosecute conduct that occurred even while the provision was previously in force. This decision does not apply to adult-use businesses.

Despite the ongoing federal illegality of cannabis, the DEA has authorized certain institutions to conduct research using cannabis. Between January 2017 and January 2019, the DEA's projections for federally approved cannabis research projects increased dramatically: the number of federally registered cannabis researchers increased from 384 to 542. In 2019, the DEA announced that it would further facilitate and expand scientific and medical research for cannabis in the United States, including registering additional entities to produce cannabis for researchers and increasing the amount and variety of cannabis available for research in order "facilitate research, advance scientific understanding about the effects of marijuana, and potentially aid in the development of safe and effective drug products that may be approved for marketing by the Food and Drug Administration." Further, this announcement acknowledged the possibility that medical cannabis or related products may, in the future, require FDA approval and come under the FDA's FDCA jurisdiction. However, there is no guarantee that the FDA will find our products safe or effective or grant us the required approvals under the FDCA

On December 18, 2020, the DEA finalized regulations pertaining to applications by entities seeking to become registered with the DEA to grow cannabis as bulk manufacturers for authorized purposes. Under these and other applicable regulations, applicants are responsible for demonstrating they have met various requirements, including requirements to possess appropriate state authority, document that their customers are licensed to perform research, and employ adequate safeguards to prevent diversion.

On May 14, 2021, the DEA announced that memorandums of agreement were provided to an unspecified and unnamed number of companies to collaborate with the DEA "to facilitate the production, storage, packaging, and distribution of marijuana under the new regulations as well as other applicable legal standards and relevant laws." To the extent these memorandums of agreement are finalized, DEA anticipates issuing DEA registrations to these manufacturers. Each applicant will then be authorized to cultivate cannabis – up to an allotted quota – in support of the more than 575 DEA-licensed researchers nationwide. As of 2022, six companies have been granted DEA registrations to bulk-manufacture cannabis.

If the DEA continues the above policies and activities (as to which no assurance can be given), the Company believes that demand for medical cannabis, and in turn, the Company's products and services, will increase.

According to the Biden campaign website: "A Biden Administration will support the legalization of cannabis for medical purposes and reschedule cannabis as a CSA Schedule II drug so researchers can study its positive and negative impacts. This will include allowing the VA to research the use of medical cannabis to treat veteran-specific health needs."

The Company believes that the anticipated growth of the cannabis industry, propelled in significant part by the increasing legalization of cannabis, offers the Company opportunities to expand. The industry requires skilled and educated cannabis professionals to operate.

**<u>Overview of the Pharmacology University Business</u>**

Through the Pharmacology University Business, the Company provides knowledge and promotes professionalism in the rapidly growing worldwide cannabis industry through education in and research about the medical properties and healing virtues of this substance. The Company does not cultivate, sell or distribute cannabis or cannabis-infused products and has no plans to do so. Pharmacology University is not an institution of higher education, is not chartered, regulated or accredited by any governmental or private agency and does not offer training that qualifies recipients to become pharmacists or pharmacologists.

The Pharmacology University Business and its prospects depend on the growth of the cannabis industry and the need for experienced, educated professional persons to lead and grow that industry ethically and responsibly in the United States and other countries where the Company's activities are legal. While the Company embraces the legal cannabis industry generally, its primary focus is on educating cannabis industry workers and leaders and scientific research and development of hemp and cannabis for medicinal and commercial applications. One of the Company's most important assets is the close relationship of its personnel to and cooperation with law enforcement agencies in the locations where it does business. Police agencies in several countries have appeared as guest speakers at the Company's cannabis seminars.

In the United States, the Company has conducted instructional seminars and cannabis classes in the states of Texas, Arkansas, Florida, Illinois, Missouri, Oklahoma and Georgia, as well as Puerto Rico, and is planning to do likewise in the remaining states. The Company operates in Mexico, Peru, Ecuador, Columbia and the Dominican Republic. It plans to expand into Argentina, Chile, Brazil, Panama and other Latin American countries where its activities are lawful.

Presently, because of the Covid-19 pandemic, the Company is conducting no classroom teaching or seminars, but intends to resume these activities as the abatement of the pandemic permits.

Before the pandemic, the Company offered, and after the abatement of the pandemic, it intends to offer, opportunities for learning, discovery and engagement to students, doctors, scientists, entrepreneurs and others in a real-world setting. The Company offers a full range of educational programs at all levels and pursues a broad agenda of research, innovative and creative activities and builds partnerships with other educational institutions, community organizations, government agencies and the private sector in many jurisdictions, including Jorge Tadeo Lozano University in Bogota, Cartagena, and Santa Marta, Colombia; Clayton State University, Atlanta, Georgia; Autonomous University of Santo Domingo, Dominican Republic; EUFLORIA Medical Cannabis Dispensary, Tulsa, Oklahoma; the Polytechnic University of Puerto Rico in San Juan, Dispensarios 420, Puerto Rico; Cannapolis Scientific Farm in Colombia; Hemp Ecuador in Ecuador.

**<u>Educational Services</u>**

The Company has offered, and after the abatement of the pandemic, intends to offer, multilevel educational services to entrepreneurs, medical and legal professionals, cultivators, dispensary technicians, manufacturers, patients and others who desire to participate in the cannabis industry or who are otherwise interested in cannabis. These services include:

&nbsp;&nbsp;&nbsp;&nbsp;· Continuing
 medical education courses for physicians

&nbsp;&nbsp;&nbsp;&nbsp;· Continuing
 legal education courses for attorneys

&nbsp;&nbsp;&nbsp;&nbsp;· Certification
 courses for physicians

&nbsp;&nbsp;&nbsp;&nbsp;· Certification
 for industry workers

&nbsp;&nbsp;&nbsp;&nbsp;· General
 education seminars

&nbsp;&nbsp;&nbsp;&nbsp;· On-site
 training

These courses cover all aspects of the medical cannabis industry. For the general public, they focus on the history of cannabis, its medicinal value, dispensary concepts, legal issues and ethics, production, growing and extracts, security, operations and economics. For doctors, our courses and seminars cover subjects such as medicinal uses of cannabis, the biochemistry of cannabis, functions of the endocannabinoid system, pharmacology, cannabis use and abuse, and administration and dosage of cannabis medications. The cultivation course focuses on germination, cultivation practices, cloning, growth stages and harvesting, drying and curing, and the manufacturing course covers the chemical composition of cannabis plants, extraction of oils, laboratory practices, the manufacture of cannabis products and marketing. Overall, we have certified and graduated several thousand students in our courses in the United States, Puerto Rico and Colombia.

Courses are taught and seminars are led by degreed professionals, university professors, and industry experts with at least two years of commercial experience in the particular subject. For example, the cultivation course might be taught by a professor of horticulture, an individual with an M.S. degree in agriculture, or a master grower with three years' experience growing crops of at least 500 plants. Before the Covid-19 pandemic, classes were usually held at local colleges and universities in classrooms with projectors, screens and microphones. Among these colleges and universities were the University of Texas, Houston; Texas Women's University; University of Oklahoma; Oklahoma State University; Clayton State University, Atlanta; Polytechnic University, San Juan; Texas A&M University; and Jorge Tadeo Lozano University in Bogota, Cartagena, and Santa Marta, Colombia.

Students learn about Pharmacology University through its website, social media, ticket venues, and local cannabis groups. Upon completing a course of study, students receive a certification of completion to indicate they are certified to work in the relevant field. A 130-hour course lasting a semester was available at the University of Tadeo in Colombia, and the students who completed it received a certificate entitled "Diplomado en Cannabis." In addition, CME and CLE credits were available for doctors and lawyers taking the classes.

We were the first company approved by the Department of Health of the Commonwealth of Puerto Rico as a provider of all training certifications, including medical education, agriculture and manufacturing education, dispensary education, and others in the medicinal cannabis industry.

After the advent of the Covid-19 pandemic, all of our classrooms and public venues were forced to close. We also canceled all travel plans to further our expansion. To meet this pandemic, we created online courses. We currently have more than 100 videos available online in English, Spanish, Portuguese, Italian and Arabic and we plan to add other languages. Additionally, we have used Zoom to hold virtual classes to teach students and be able to respond to their questions in real time during the courses. However, revenue received from online courses has not replaced the revenue that we believe we would have generated if our classrooms and public venues had remained open. The Company intends to resume its former courses and add new courses as theCovid-19 pandemic abates.

**<u>Digital Products</u>**

As a result of the Covid-19 pandemic, which made classroom education impossible, Pharmacology University has focused on the production of educational materials for sale on online platforms (including those operated by Amazon, Zinio, Apple, Walmart/Kobo, Barnes & Noble and Google Books), which maintaining its relationships with academic venues where it expects to resume classroom teaching when the pandemic abates (including ICESI, TADEO and UTB). It also focuses on entering into subscription and commercial agreements with universities and e-commerce platforms.

We have published 50 cannabis-related eBooks in five languages, have produced videos to offer online and have recorded over 13,000 minutes of audio in 5 languages. We have also engaged artificial intelligence services to generate translations of these materials in up to 100 additional languages; while this activity has resulted in increased expenses, while producing minimal revenue and no profit, we believe that it will become profitable and be a significant component of our business.

We have aimed to publish our educational content on different marketplaces that host products in languages commonly used worldwide. We work with platforms from Brazil, Spain, England, Mexico, Canada, the United States, Germany, and more. We currently have four types of products published on different platforms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  **<u>E-Books</u>:** We publish fifty titles in Spanish, English, Portuguese, Italian, and Arabic on Amazon,
 Kobo and Google Books. In addition, Smashwords distributes our content on Barnes & Noble,
 Apple, Baker & Taylor's Axis 360, OverDrive, Scribd, cloudLibrary, Gardners Extended
 Retail, Odilo and Gardners Library.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  **<u>Audiobook</u> s:** Findawayvoices distributes our content on 3Leaf Group, Axiell, Baker & Taylor, Bibliotheca,
 Bidi, EBSCO, Follett, hoopla, LOL, dilo, Overdrive, Perma-Bound, Ulverscroft and Wheelers,
 as well as on 24symbols, Anyplay, Apple, Audiobooks.com, AudiobooksNow, AudiobooksNZ, BajaL,
 BingeBooks, Bokus Play, Bookmate, Chirp, Cliq, Downpour, eStories, Google Play, Hummingbird,
 Instaread, Leamos, Libro.FM, Milkbox, Nextory, NOOK, Scribd, and Ubook.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  **<u>Video courses</u>:** We publish 161 titles on Amazon (6 courses), Sympla (17 courses), Teachlr
 (62 courses), Edusity (13 courses), Simplivlearning (16 courses), Alugha (40 courses),
 Aprendum (4 courses), and Unihance (105 courses).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;·  **<u>Cannabis Worlds</u>.** We publish Cannabis World, our digital magazine, on Google books (25 issues
 in five languages), Zinio (25 issues in Spanish and English), Pocketmags (25 issues in
 English) and Magzter (25 issues in five languages).

The Company believes that the amount and scope of its digital products exceed those offered by any of its competitors in cannabis-related education.

**<u>Franchising</u>**

We have offered, and after the abatement of the pandemic, intend to offer, our educational programs to franchisees worldwide. A franchisee purchases the right to provide our courses in its particular city. In addition to an initial franchise fee, a franchisee pays us a 10% franchise fee and a 2% advertising fee on all gross sales. We assist in creating and registering a franchisee's business identity; developing and activating its websites; creating its social media platforms; providing it with marketing plans; assisting in finding venues for their classes; explaining how to find qualified instructors; providing PowerPoint presentations as well as books for students and instructors; and providing one week of one-on-one training relating to the operation of the franchise. In addition, we provide one month of marketing assistance. Before the Covid-19 pandemic, we had four franchisees that produced revenue of $28,202 and $34,000 in the years ended May 31, 2021, and May 31, 2020, respectively, but as a result of the pandemic, we are receiving no revenue from these franchisees because they are unable to operate.

**<u>Consulting</u>**

We have offered, and after the abatement of the pandemic, intend to offer, consulting services that consist of assisting persons or companies that wish to obtain a license to enter the legal cannabis marketplace. The cost of these services is based on the nature of each assignment. These services may include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· creating
 and presenting advertising material for campaigns in traditional and digital media, including
 publicity strategy, campaign creation, design of flyers, advertising social networks, newspapers
 and magazines and creation of audiovisual content.

· consulting services to entrepreneurs
 who are considering entering the cannabis industry, manufacturers and growers, including
 preparation of business plans, guidance in business structure, guidance in seeking investment,
 preparation of license and other applications and development of operating procedures.

We have provided consulting services in many states and Puerto Rico and have assisted in obtaining over 40 licenses for our clients for dispensaries, cultivation, manufacturing and a full analytical laboratory.

 **Current Status**

With the restrictions imposed in response to the pandemic being lifted and increasing activity in the cannabis industry, we are resuming classroom and seminar activities. We expect to hold two classes and three seminars during the year ending May 31, 2023, producing revenue of $40,000. We are continuing to expand our online business by promoting products across 30 platforms and we are continuing to promote Cannabis World Journals. We expect to produce total revenue of $80,000 from our Pharmacology University Business during the year ending May 31, 2023.

***<u>Business – Alpha Research Business</u>***

Through the Alpha Research Business, based in Houston, Texas, the Company offers specialized services in all therapeutic areas of clinical trials and has conducted over 20 clinical trials. These trials have included drugs relating to diseases in the areas of asthma, allergies, renal disorders, neurology disorders, cardiac and vascular disorders, nutrition/metabolism, obstetrics/gynecology, dermatology, oncology, ophthalmology, orthopedics, gastroenterology, psychiatric disorders, infectious diseases, pulmonary and respiratory diseases, urology and Covid-19, as well as devices for orthopedic and cardiovascular problems. Our clients have included Sponsors such as Pfizer Inc., Merck & Co, Inc., Shionogi & Co., Ltd., Medtronic plc, Novartis, GlaxoSmithKline plc, Gilead Sciences, Inc. and Johnson & Johnson, and CROs, such as PPD, Inc., Icon plc, Parexel, PRA Health Sciences, Inc., Covance, IQVIA Holdings Inc. and Medpace Holdings, Inc.

Clinical trials are a clinical research method designed to evaluate and test new drugs or devices. They are typically conducted in four phases, each of which has a different purpose and helps scientists answer different questions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· **Phase I.** Researchers test an experimental drug or treatment in a small group of people for
 the first time. The researchers evaluate the treatment's safety, determine a safe dosage
 range, and identify side effects.

· **Phase II.** The experimental
 drug or treatment is given to a larger group of people to ascertain whether it is effective
 and to evaluate its safety further.

· **Phase III**. The experimental
 study drug or treatment is administered to large groups of people. Researchers confirm its
 effectiveness, monitor side effects, compare it to commonly used treatments, and collect
 information that will allow the experimental drug or treatment to be used safely.

· **Phase IV.** Post-marketing
 studies, which are conducted after a treatment is approved for use by the FDA, provide additional
 information, including information relating to treatment, risks, benefits and best use.

Clinical trials are conducted by Sponsors or CROs. The Company will contract with a Sponsor or CRO to provide services in connection with a clinical trial after it has provided information respecting its ability to provide them and after a visit by the Sponsor or CRO to our facilities to confirm our ability to conduct the trial and to establish communications procedures. After further measures, which include establishing a budget and providing additional information about the Company and a second visit to our facilities, we will enter into a contract with the Sponsor or CRO, which will issue a "Site Activation Letter." When we receive this letter, we begin enrolling volunteer test subjects.

The Company's facilities are equipped with examination and blood drawing rooms, storage for investigational medication and study-related equipment. The Company employs only clinical research coordinators ("CRCs") with at least five years of experience. CRCs are involved in supervising drug trials and medical research, which involves recruiting patients for medical and drug trials and screening them to ensure that they meet the guidelines of the trial, as well as following good clinical practice, overseeing the progress of the clinical trial and ensuring that it is properly conducted, recorded, and reported.

The recruitment of subjects from minority, rural and economically disadvantaged groups is important to clinical trials because the benefits and risks of new drugs with respect to them may differ from other groups due to genetic, environmental and other factors. To enhance such recruitment, the Company has worked with community organizations, churches, social services and public agencies and has provided transportation services.

The Alpha Research Business is staffed by six personnel responsible for regulatory and Investigational Review Board ("IRB") processes and a staff of two auditors. An IRB is an independent body required by federal regulation, comprising medical, scientific, and nonscientific members, the responsibility of which is to ensure the protection of the rights, safety, and well-being of human subjects involved in a clinical trial. An IRB reviews and approves clinical trials, protocols, amendments, methods and materials to be used in obtaining and documenting informed consents from the trial subjects.

We employ more than 20 full- or part-time principal investigators, who are physicians and prepare and perform or oversee clinical trials, analyze the resulting data and report the results of a trial to the Sponsor or CRO. They usually conduct clinical trials in conjunction with their medical practices. Our professional employees are encouraged to keep up to date on good clinical practices and regulations relating to clinical research.

Alpha Research obtains customers in three ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Recruitment websites</u>. On these websites, we search for trials that are within our competence and
 contact the related Sponsors or CROs, providing relevant information about ourselves, who
 will respond if they are interested in our services. The Sponsor or CRO will consider entering
 into a contract for the study only after it has met with our personnel and has visited our
 facilities and if the Sponsor or CRO is satisfied that we can conduct the trial and comply
 with the terms of its contract, which, as indicated above, are complex. Even then, the Sponsor
 or CRO may award the contract to a firm that it considers better qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Sponsor or CRO websites</u>. The process is similar to that described above for recruitment websites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· <u>Personal contact</u>.

We are currently conducting clinical trials in non-cirrhotic non-alcoholic steatohepatitis, chronic obstructive pulmonary disease, a multivalent pneumococcal vaccine, iron deficiency anemia and the collection of biospecimen collections and samples across all ages and various therapeutic areas, and multiple medical conditions. We are actively seeking contracts, have bid on four and believe that we will be successful in obtaining some of them. We expect to produce revenue of $600,000 from our clinical trials business for the year ending May 31, 2023.

***<u>Alpha Sleep and Fertility Center ("AFSC")</u>***

In July 2022, the Company opened AFSC, which serves Houston-area patients who are interested in improving their sleep quality and enhancing their physical and mental well-being. The Sleep Center utilizes state-of-the-art equipment. Its goal is to assess, diagnose, and treat sleep problems and provide patients with convenient and flexible care.

AFSC is intended as a one-stop source for patients' sleep disorder needs. It is overseen by Dr. Esteban Berberian, a primary care physician and board-certified internal medicine physician. Working with Dr. Berberian are registered sleep specialists, many of whom are Registered Polysomnographic Technologists ("RGSPTs"). RGSPTs are healthcare professionals certified by the American Board of Sleep Medicine (the "ABSM") who clinically assess patients with sleep disorders. The ABSM is a nonprofit organization that certifies physicians, PhDs, specialists and technologists in sleep medicine.

Millions of Americans suffer from sleep disorders, resulting in poor quality and a limited quantity of sleep that significantly interferes with their overall functioning. These disorders include insomnia, obstructive sleep apnea, excessive daytime sleepiness and cataplexy (narcolepsy), restless leg syndrome (RLS), REM sleep behavior disorder and snoring. Sleep disorders can cause sexual problems, such as loss of libido and erectile dysfunction. There is a high correlation between sleep disorders and irregular menstrual cycle or premenstrual symptoms and infertility in women and low testosterone in men.

Sleep-related disorders are a nationwide problem, according to the American Academy of Sleep Medicine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· about 30 percent of adults have symptoms of insomnia and about 10 percent of adults have insomnia that
 is severe enough to cause daytime consequences.

· about 26 percent of adults between the ages of 30 and 70 years have sleep apnea.

· about 2 percent of adults suffer from RLS.

· about 1 percent of people have narcolepsy and REM sleep behavior disorder.

AFSC acquires patients through referrals and marketing efforts.

The development of AFSC is in its early stages. It is leasing space and equipment in two locations as needed. Its staff is being hired on a part-time basis until our patient load is sufficient to support full-time staffing. The current staff comprises a medical director, who has general oversight of AFSC, a polysomnographic technologist, who performs diagnostic procedures ("sleep studies"), a Sleep Board registered physician and a Registered Sleep Tech Scorer, who evaluates, interprets and scores sleep studies, and an office manager who it shares with PRI. Our staff works for us only when we have patients. We believe that our staff, space and equipment are adequate for the current operations of AFSC.

Our goal is to expand our existing facility to be capable of performing sleep tests for 20 patients per month, with a view, as patient load increases, to opening a second facility having a larger capacity and a complete laboratory. Staffing would be increased to include a director of business operations and a receptionist.

When a patient is referred to AFSC for testing, it may perform an at-home sleep test, which monitors a patient's breathing, oxygen levels, and breathing effort. If the at-home test indicates further testing, or if AFSC determines that at-home testing would not be useful, it will perform a sleep study ("polysomnography"), which is a comprehensive test used to diagnose sleep disorders by monitoring sleep stages and cycles to identify if or when they are disrupted and why. This test records a patient's brain waves, blood oxygen level, heart rate, breathing rate and eye and leg movements.

Polysomnography may be performed at a sleep disorder unit in a hospital or a sleep center. In a typical test, a patient arrives in the evening and stays overnight. The test is performed in a dark and quiet room with a bed and a bathroom and is equipped with a low-light video camera so that the polysomnography technologist can observe the room when lights are extinguished. After a patient prepares for sleep, a technologist attaches sensors to the patient's scalp, temples, chest and legs and an oximeter to his finger or earlobe; these devices are connected to a computer, which records data indicating his sleep patterns during the night. While the patient sleeps, a technologist observes the video and monitors his brainwaves, eye movements, heart rate, breathing pattern, blood oxygen level, body position, chest, abdominal and limb movement, and snoring. If sleep apnea is being treated, the technician may have the patient try a positive airway pressure machine or device that delivers a constant stream of air that keeps his airway passages open while sleeping.

The information gathered during polysomnography is evaluated first by a polysomnography technologist, who uses the data to chart sleep stages and cycles. The measurements recorded during the polysomnography provide information about a patient's sleep patterns. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Brain wave activity and eye movements during sleep can help to identify disruptions in the stages that
 may occur due to sleep disorders such as narcolepsy and REM sleep behavior disorder.

· Abnormal variations in heart and breathing rate in blood oxygen may suggest sleep apnea.

· Correct settings for positive airway pressure machines or oxygen if prescribed.

· Frequent leg movements that disrupt sleep may indicate periodic limb movement disorder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Other unusual movements or behaviors during sleep may indicate REM sleep behavior disorder or another
 sleep disorder.

A report is generated, reviewed for accuracy, scored and given to the doctor who will diagnose the sleep disorder. After diagnosis, the following therapies are offered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Continuous positive airway pressure (CPAP). If a patient has moderate to severe sleep apnea, he may
 benefit from using a machine that delivers air pressure through a mask while asleep.

· Other airway pressure devices. An airway pressure device that automatically adjusts while a patient
 sleeps (auto-CPAP) is available. Units that supply bilevel positive airway pressure (BPAP) also are available. These provide more pressure
 when a patient inhales and less when he exhales.

· Oral appliances. Oral appliances are designed to open a patient's throat by bringing your jaw
 forward, which can sometimes relieve snoring and mild obstructive sleep apnea.

· Supplemental oxygen. Using supplemental oxygen while a patient is asleep may help if he has central
 sleep apnea.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Adaptive servo-ventilation (ASV). This recently approved airflow device learns a patient's
 normal breathing pattern and stores the information.

AFSC is now treating approximately six patients. We expect that its patient load will increase in the coming months and that it will produce revenue of $120,000 for the year ending May 31, 2023.

***<u>Hippocrates Business</u>***

The Hippocrates Business provided concierge healthcare services. From its inception, it did not provide sufficient revenue and was discontinued on October 31, 2020.

**<u>Description of Property</u>**

The Company leases premises of approximately 4,500 square feet located at 6201 Bonhomme Road, Suites 460S and 466S, Houston, Texas. The lease provides for a base rent of $3,381.96 per month, increasing to (i) $3,529 per month on July 1, 2020, (ii) $3,676 per month on July 1, 2021, and (iii) $3,823 per month on July 1, 2022, subject to CPI increase. The lease expires on June 30, 2023. The leased space is shared by PUI, Alpha Research Institute and AFSC.

In addition, two of the Company's officers lease 1,400 square feet in Houston, Texas, at 1625 Main St, Houston, Texas, under a lease the term of which commenced on February 29, 2020, and will expire on September 30, 2022, at a rent of $3,449 per month; these officers have made a portion of these premises available to the Company for use as office space, for which the Company pays them $2,817 per month.

**<u>Legal Proceedings</u>**

The Company has not been and is not a party to any litigation and is not aware of any threatened litigation.

**<u>Off-Balance Sheet Arrangements</u>**

We have no off-balance-sheet arrangements.

**MANAGEMENT**

The following table presents information with respect to our officers and directors:

---

| | | |
|:---|:---|:---|
| **<u>Name</u>** | **<u>Age</u>** | **<u>Position</u>** |
| Dante Picazo | 66 | Chief Executive Officer and Director |
| Henry Levinski | 70 | Vice President and Director |
| Jose Torres | 63 | Secretary and Director |

---

Each of our directors serves until his death, resignation or removal or until his successor is elected and qualified. Each of our officers is elected by the Board to a term of one year and serves until his successor is duly elected and qualified or until he dies, resigns or is removed. Members of the Board receive no compensation for their services as such.

***Biographical Information Regarding Officers and Directors***

**Dante Picazo**

Mr. Picazo has been the chief executive officer and a director of the Company since the merger of PUI into the company on December 19, 2019, and was the co-founder of PUI, serving as one of its directors and as its chief executive officer and president from its incorporation in 2009 to that merger.

He has 45 years of experience in operating and growing from concept to profitability, originating marketing and branding efforts, leading to initial public offerings for three companies.

He graduated from Cornell University School of Hotel Administration in Ithaca, N.Y., and is fluent in three languages.

Mr. Picazo's control of the Company through his ownership of its capital stock, together with his knowledge of the Pharmacology University Business and his extensive experience in international business and finance, led to the conclusion that he should serve as a member of the board.

**Henry Levinski**

Mr. Levinski has served as treasurer and a director of the Company since the merger of PUI into the company on December 19, 2019, and was the co-founder of PUI, serving as one of its directors and its chief executive officer from its incorporation in 2009. He has over 40 years of experience in operations, marketing, purchasing and training.

Mr. Levinski's knowledge of the Pharmacology University Business, together with his prior experience, led to the conclusion that he should serve as a board member.

**Jose Torres**

Dr. Torres has served as a director and national medical director of the Company since the merger of PUI into the company on December 19, 2019. He served in like positions with PUI until the merger. He is board-certified in General and internal medicine and is an Anti-aging medicine Specialist with 35 years of medical practice experience.

He received his medical degree from the Autonomous University of Guerrero in Chilpancingo, Guerrero, Mexico, and completed a residency in internal medicine residency at Caguas Regional Hospital in Puerto Rico. He is certified in urgent care and by World Link Medical. He is a Member of the American College of Physicians, the Puerto Rico College of Physicians and the American Academy of Cannabinoid Medicine. He is an expert in the medical uses of cannabis and is involved in research respecting its use in treating several medical conditions, including sleep disorders, pain management, treatment of nausea and vomiting associated with cancer and chemotherapy, asthma and other bronchial ailments, and decreased libido.

Mr. Torres' experience with the medicinal use of cannabis and with sleep disorders led to the conclusion that he should serve as a member of the board.

**EXECUTIVE COMPENSATION**

***Compensation of Officers***

The following table sets forth information concerning all compensation awarded to, earned by, or paid to our principal executive officer and our two most highly compensated executive officers, other than the principal executive officer, who were serving as such on May 31, 2022, for the fiscal years ended May 31, 2022, and May 31, 2021.

**SUMMARY COMPENSATION TABLE**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Salary<br> ($)** | **Bonus<br> ($)** | **Stock<br> Awards<br> ($)** | **Option<br> Awards<br> ($)** | **Non-equity <br> incentive plan compensation<br> ($)** | **Change in pension value and nonqualified deferred compensation earnings <br> ($)** | **All Other<br> Compensation<br> ($)** | **Total<br> ($)** |
| (a) | (b) | (c) | (d) | (e) | (f) | (g) | (h) | (i) | (j) |
| Dante Picazo | 2021 | 22500 |  |  |  |  |  |  | 22500 |
| CEO | 2020 | 5000 |  |  |  |  |  |  | 5000 |
| Henry Levinski****  | 2021 | 24000 |  |  |  |  |  |  | 24000 |
| VP | 2020 | 16200 |  |  |  |  |  |  | 16200 |

---

**Compensation Discussion and Analysis**

The Company has determined the amount paid as salary to the persons named in the above table based on the Company's ability to pay. The Company believes that these salaries are lower than those that these persons could earn in equivalent positions in other companies and that these persons have elected to receive these salaries and remain with the Company because of their equity positions in the Company, their belief in the prospects of the Company and intangible reasons of which the Company may not be aware. In the case of Mr. Levinski, the Company has provided additional compensation in the form of shares of Common Stock. The Company believes that it needs to be able to provide competitive compensation to these persons, as well as persons that it hires in the future, but will not be able to do so until it can generate materially increased revenue. Until then, the Company is subject to the risk that one or more of these persons will seek employment elsewhere. The Company has adopted its 2022 Equity Incentive Plan (see "[Incentive Plan](#s30)") and may explore the adoption of plans that will enable it to reward and retain the loyalty of these and other employees through awards of share-based compensation, such as stock options, restricted stock and restricted stock units.

**<u>Incentive Plan</u>**

**<u>General Information</u>**

On July 20, 2022, the Board adopted, and the shareholders approved, the 2022 Equity Incentive Plan (the "Incentive Plan"), which provides for the grant of stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units, and performance awards to directors, officers, employees and consultants ("Grantees"). The Incentive Plan is administered by the Board, which has the authority, among other things, to select eligible persons to receive awards and determine the terms of awards.

The Company will recognize as share-based compensation expense all share-based payments to Grantees over the requisite service period (generally the vesting period) in its consolidated statements of income based on the fair values of the awards that are ultimately expected to vest. As a result, for most awards, recognized share-based compensation expense will be reduced for estimated forfeitures prior to vesting, primarily based initially on the judgment of management and thereafter, estimated forfeitures will be reassessed in subsequent periods based on facts and circumstances. As no awards were made under the Incentive Plan during the periods covered by the consolidated financial statements included in this Prospectus, no expense for share-based compensation was recorded therein.

The Company adopted the Incentive Plan because it believes that long-term incentives for Grantees will be a significant factor in generating returns for its shareholders based upon the Incentive Plan's ability to focus on long-term performance. By providing grantees with opportunities to acquire a meaningful equity stake in the Company, it can better align their interests with those of its shareholders and create value for them.

The Company expects to make periodic awards to its executive officers, employees and consultants, as well as awards in connection with promotions or new hires, the occurrence of significant events or as awards intended to promote retention.

Awards will generally be subject to time- or performance-based vesting over periods determined by the Board. Performance-based goals will be determined by the Board. We believe that performance-based awards will encourage Grantees to achieve key strategic objectives and maximize value creation for our shareholders.

No awards have been made as of the date of this Prospectus.

**<u>Provisions of the Incentive Plan</u>**

The following is a description of the material terms of the Incentive Plan, which is not a complete description and is qualified in its entirety by reference to the Incentive Plan, which is filed as an exhibit to the registration statement of which this Prospectus is a part.

***Authorized shares*.** Subject to adjustment in certain events, the maximum number of shares of Common Stock that may be issued in satisfaction of awards is 600,000,000. As of the date of this Prospectus, no awards had been granted.

***Eligibility*.** The Board may select participants from among employees and directors of and consultants to the Company.

***Types of awards; vesting*.** The Incentive Plan provides for various awards, including incentive stock options ("ISOs"), nonstatutory stock options, stock appreciation rights, restricted and unrestricted stock and stock units, performance awards and cash. The Board has the authority to determine the vesting schedule applicable to each award and to accelerate the vesting or exercisability of any award.

***Termination of awards*.**

Unless otherwise provided in an award agreement, upon termination of employment or service, a participant's options and SARS will terminate and the participant will have no further right, title or interest therein, the shares of Common Stock subject thereto or any consideration in respect thereof. If employment or service terminates otherwise than for cause, the Participant may exercise his Option or SAR to the extent vested, but only within the following period or, if applicable, such other period provided in the Award Agreement.

Except as otherwise provided in the Award Agreement or other written agreement, if a Participant's continuous service terminates for any reason, (i) the Company may receive through a forfeiture condition or a repurchase right any or all of the shares of Common Stock held by the participant under his restricted stock award that have not vested as of the date of such termination as set forth in such agreement and (ii) any portion of his RSU award that has not vested shall terminate upon such termination and he shall have no further right, title or interest in the RSU award, the shares of Common Stock issuable pursuant thereto the RSU Award or any consideration in respect thereof the RSU.

Except as provided in an award agreement, in the event of a dissolution or liquidation of the Company, outstanding awards (other than those consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company's right of repurchase) shall terminate prior to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company's repurchase rights or subject to a forfeiture condition may be repurchased or reacquired by the Company, provided that the Board may cause some or all expired or terminated Awards to become fully vested, exercisable or no longer subject to repurchase or forfeiture before the dissolution or liquidation is completed but contingent on its completion.

***Transferability*.**

Options and SARs may not be transferred to financial institutions for value and the Board may impose such additional limitations on the transferability of an option or SAR as it determines. In the absence of any such determination, the following restrictions shall apply (provided that, except as explicitly provided in the Incentive Plan, an option or a SAR may not be transferred for consideration and, if an option is an ISO, it may be deemed to be a nonstatutory stock option as a result of such transfer):

An option or SAR shall not be transferable, except by will or by the laws of descent and distribution, and shall be exercisable during the lifetime of a participant only by him (provided that, in certain cases, the Board may permit the transfer of an Option or SAR in a manner that is not prohibited by applicable tax and securities laws upon the Participant's request, including to a trust if the Participant is considered to be the sole beneficial owner of such trust (as determined under Section 671 of the U.S. Internal Revenue Code of 1986, as amended (the "Code"), and applicable state law) while such Option or SAR is held in such trust, provided that the Participant and the trustee enter into a transfer and other agreements required by the Company.

Subject to the execution of transfer documentation in a format acceptable to the Company and subject to the approval of the Board or a duly authorized officer, an Option or SAR may be transferred pursuant to a domestic relations order.

***Corporate transactions.*** In the event of certain corporate transactions (including merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, large nonrecurring cash dividend, stock split, reverse stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure), the Board shall appropriately and proportionately adjust (a) the class or classes and the maximum number of shares of Common Stock subject to the Plan, (b) the class or classes and the maximum number of shares that may be issued pursuant to the exercise of ISOs and (c) the class or classes and the number of securities and exercise price, strike price or purchase price of Common Stock subject to outstanding Awards.

***Acceleration.*** The Board may accelerate the time at which an award may first be exercised or the time during which an award or any part thereof will vest.

***Change in control*.** In the event of a change in control of the Company (as defined in the Incentive Plan), the Board shall have discretion (i) settle awards for an amount of cash or securities equal to their value, where in the case of options and SARs, the value of such Awards, if any, shall be equal to their in-the-money spread value (if any), as determined in the sole discretion of the Board, (ii) arrange for the surviving corporation or acquiring corporation (or its parent company) to assume or continue the award or to substitute a substantially similar award, (iii) arrange for the assignment of any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the award to the surviving corporation or acquiring corporation (or its parent company), (iv) modify the terms of awards to add events, conditions or circumstances (including termination of employment within any specified period after a change in control) upon which the vesting of such awards or lapse of restrictions thereon shall accelerate or deem any performance conditions satisfied at target, maximum or actual performance through closing or provide for the performance conditions to continue after closing, (v) arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by the Company with respect to awards, (vi) cancel or arrange for the cancellation of awards, to the extent not vested or not exercised prior to the effective time of the change in control, in exchange for such cash consideration, if any, as the Board may consider appropriate, or(vii) provide that, for at least 20 days prior to the change in control, any Options or SARs that would not otherwise become exercisable prior thereto shall be exercisable as to all shares of Common Stock subject thereto, contingent upon and subject to the occurrence of the change in control, and that any options or SARs not exercised prior to the consummation of the change in control shall terminate and be of no further force and effect as of the consummation thereof.

***Amendment and termination*.** The Board may amend the Incentive Plan or outstanding awards, except that it may not materially impair the rights and obligations under any award except with the written consent of the affected participant.

**Retirement, Resignation or Termination Plans**

We have or sponsor no plan, whether written or verbal, that would provide compensation or benefits of any type to an executive upon retirement or any plan that would provide payment for retirement, resignation, or termination as a result of a change in control of our company or as a result of a change in the responsibilities of an executive following a change in control of our company.

**Pension Benefits**

The Company has no plan under which retirement payments and benefits, or payments and benefits that will be provided primarily following retirement, may be or have been or may be paid.

**Nonqualified Defined Contribution and Other Nonqualified Deferred Compensation Plans**

The Company has no defined contribution or other plan that provides for the deferral of compensation.

**Potential Payments upon Termination or Change-in-Control**

The Company is not a party to any contract, agreement, plan or arrangement, whether written or unwritten, that provides for payment to any of its executive officers at, following or in connection with any termination, including without limitation resignation, severance, retirement or constructive termination, or a change in control of the Company or a change in any of their responsibilities.

**Compensation of Directors**

Our directors receive no compensation in their capacities as such.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

 **<u>Issuance of Shares</u>**

On December 19, 2019, Pharmacology University, Inc., a Delaware corporation ("PUI"), with and into the Company pursuant to an Agreement and Plan of Merger, dated as of November 7, 2019, under which PUI was merged with and into the Company (the "PU Merger Agreement"). Pursuant to this agreement, the Company issued 4,595,467,025 shares of Common Stock to the former holders of the common stock of PUI and also issued 2,000,000 shares of its Series A Preferred to Dante Picazo, who became the Company's chief executive officer president upon the closing of the PU Merger Agreement. As a result of these issuances, Mr. Picazo acquired sole control of the Company.

On January 5, 2020, the Company issued 50,000,000 shares of Common Stock to Henry Levinski, a director and vice president of the Company in consideration of his employment. These shares had a market value of $5,000 on the date of their issuance.

On January 5, 2020, the Company issued 40,000,000 shares of Common Stock to Jose Torres, a director and secretary of the Company, in consideration of $40,000. Based on the closing price for the Common Stock on January 3, 2020, which was the most recent date on which it was traded, these shares had a market value of $8,000.

The Company and Henry Levinski entered into an agreement, dated as of November 1, 2022, under which he agreed, in consideration of the issuance to him of 50,000,000 shares of Common Stock, to provide services in connection with causing the registration statement of which this Prospectus is a part to be declared effective by the SEC and, after it is declared effective, in assisting the Company in the marketing of the shares of the Common Stock registered thereunder for a period of the earlier of (i) two years after the registration statement is made effective or (ii) the date on which all of the shares offered by the Company under the registration statement have been sold. He also agreed that he would not resign as an officer or director of the Company during such period. A quorum of the board of directors, which did not include Mr. Levinski, approved this transaction.

 **<u>Lease</u>**

Dante Picazo and Henry Levinski, two of the Company's officers, leased 1,400 square feet in Houston, Texas, at 1625 Main St, Houston, Texas, under a lease, the term of which commenced on February 29, 2020, and expired on September 30, 2022, at a rent of $3,449 per month. These officers have made a portion of these premises available to the Company for office space, for which the Company pays them $2,817 per month. On September 15, 2022, these officers re-leased these premises under a lease that expires on March 14, 2023, at a rent of $3,038 per month, and they continued to make a portion of these premises available to the Company for use as office space, for which the Company is paying them $2,817 per month. The Company believes that the rental is the fair market value of the space rented.

 **<u>Exchange of Shares</u>**

On August 15, 2022, pursuant to resolutions of the Board, Mr. Picazo exchanged 595,467,205 shares of Common Stock for 1,000 shares of the Company's Series B Preferred Stock ("Series B Preferred"). By his ownership of these shares, Mr. Picazo has voting control of the Company. Since Mr. Picazo had an interest in this exchange, he did not vote on the adoption of this resolution. A quorum of the board of directors, which did not include Mr. Picazo, approved this transaction.

 **<u>Loans</u>**

The Company has received loans from Messrs. Picazo and Levinski from time to time since the year ended May 31, 2022. All of these loans are non-interest-bearing and have no set maturity date. The Company expects to repay these loans when funds become available. During the years ended May 31, 2021, and May 31, 2022, and during the three months ended August 31, 2022, the Company received and repaid loans from and to them as follows:

---

| | | |
|:---|:---|:---|
|  | **Dante** <br> **Picazo**  | **Henry** <br> **Levinski**  |
| Balance at June 1, 2020 | $3925 | $300 |
| Year ended May 31, 2021 |  |  |
| Amounts loaned | 2930 | 54148 |
| Amounts repaid: | (5400) | (43640) |
| Balance at May 31, 2021 | $1455 | $10808 |
| &nbsp;&nbsp;&nbsp; Year ended May 31, 2022 |  |  |
| Amounts loaned | 850 | 58000 |
| Amounts repaid: | (2350) | $(52925) |
| Balance at May 31, 2022 | $(45) | 15883 |
| &nbsp;&nbsp;&nbsp; Quarter ended August 31, 2022 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts loaned | 1850 | 71159 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount repaid | (1850) | (10850) |
| Balance at August 31, 2022 | $(45) | $76192 |

---

**PRINCIPAL AND SELLING STOCKHOLDERS**

The table below sets forth the beneficial ownership of Common Stock as of the date of this Prospectus. As of that date, ________________ shares of Common Stock were issued and outstanding.

The following table provides information with respect to the beneficial ownership of Common Stock by the following (i) each of our named executive officers, (ii) each of our directors, (ii) all directors and executive officers as a group, (iii) each person known to beneficially own more than 5% of Common Stock (excluding the Selling Stockholders) and (iv) the Selling Stockholders.

The amounts and percentages of shares beneficially owned are reported as required by the SEC's rules respecting the determination of beneficial ownership of securities. Under these rules, a person is deemed to be a "beneficial owner" of a security if he has or shares voting power or investment power, which includes the power to dispose of or to direct the disposition of such security; and is also deemed to be a beneficial owner of any securities of which he has a right to acquire beneficial ownership within 60 days after the determination date. Securities that can be so acquired are deemed to be outstanding for purposes of determining such person's ownership percentage, but not for purposes of determining any other person's ownership percentage. Under these rules, more than one person may be deemed to be a beneficial owner of the same securities and a person may be deemed to be a beneficial owner of securities in which he has no economic interest.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Shares Beneficially Owned Prior to the Offering** | **Shares Beneficially Owned Prior to the Offering** | **Shares Beneficially Owned Prior to the Offering** | | **Shares Beneficially<br> Owned After the Offering**<sup>1</sup> | **Shares Beneficially<br> Owned After the Offering**<sup>1</sup> |
| <br>**Name and Address of Beneficial Owner<sup>2</sup>** | **Title of Class or Series** | **Number** | **Percent of<br> Outstanding Shares<sup>3</sup>** |<br>**Shares Being Offered** | **Number** | **Percent of<br> Outstanding Shares<sup>3</sup>** |
| *Named Executive Officers and Directors:* |  |  |  |  |  |  |
| Dante Picazo | Common Stock | 4002611700<sup>4, 5</sup> | 44.3 | 490500000 | 3512111700 <sup>4, 5</sup> | 23.0 |
|  | Series A Preferred | 2000000 | 80.00 |  | 2000000 | 80.00 |
|  | Series B Preferred | 1000 | 100.00 |  | 1000 | 100.00 |
| Henry Levinski | Common Stock | 100000000 | <1 | 100000000 |  |  |
| Jose A. Torres | Common Stock | 40000000 | <1 | 40000000 |  |  |
| All directors and executive officers as a group (3 persons): | Common Stock | 4142611700 | 45.9 | 630500000 | 3512111700<sup>4, 5</sup> | 23.0 |
|  | Series A Preferred | 2000000 | 100.0 |  | 2500000 | 100.00 |
|  | Series B Preferred | 1000 | 100.0 |  | 1000 | 100.00 |
| *The Selling Stockholders:* |  |  |  |  |  |  |
| Ibeth Corrales | Common Stock | 625000000 | 6.92 | 625000000 |  |  |
| Julian J. Gonzalez | Common Stock | 321428572 | 3.56 | 65285714 | 256142858 | 1.68 |
| John Jones | Common Stock | 303888888 | 3.36 | 303888888 |  |  |
| John Neville | Common Stock | 300000000 | 3.32 | 300000000 |  |  |
| Harry Feinberg | &nbsp;&nbsp;&nbsp;&nbsp;Common Stock | 164705881 | 1.82 | 164705881 |  | <1 |
| Mark Herbert | Common Stock | 78000000 | <1 | 78000000 |  | <1 |
| Tony Brown | Common Stock | 75892857 | <1 | 15178572 | 60714285 | <1 |
| Richard Meikle and Laurie Meikle | Common Stock | 62500000 | <1 | 62500000 |  |  |
| Jeffery Lien | Common Stock | 55000000 | <1 | 55000000 |  |  |
| Esteban Berberian | Common Stock | 51470588 | <1 | 10294118 | 41176470 | <1 |
| Stephen A. Khoury | Common Stock | 50000000 | <1 | 20000000 | 30000000 | <1 |
| Casaro, S.A. | Common Stock | 50000000 | <1 | 20000000 | 30000000 | <1 |
| Paola Cedano | Common Stock | 50000000 | <1 | 10000000 | 40000000 | <1 |
| Clifford Miller | Common Stock | 41025641 | <1 | 20512820 | 20512821 | <1 |
| Juana Maria Vitales Estrada | Common Stock | 38000000 |  | 38000000 |  |  |
| Leroy Wilits | Common Stock | 31904762 | <1 | 6380953 | 25523809 | <1 |
| Katarin O. Robles | Common Stock | 25000.000 | <1 | 25000000 |  |  |
| Nicola Abate | Common Stock | 22222222 | <1 | 22222222 |  |  |
| Shane Leupold | Common Stock | 21250000 | <1 | 21250000 |  |  |
| Jorge Verar | Common Stock | 20000000 | <1 | 5000000 | 15000000 | <1 |
| Brandon Milatovic | Common Stock | 20000000 | <1 | 20000000 |  |  |
| Rosa Casares | Common Stock | 16975703 | <1 | 3395141 | 13580562 | <1 |
| Frank and Maria Hernandez | Common Stock | 16071428 | <1 | 3214285 | 12857143 | <1 |
| Jonathan Eisner | Common Stock | 16000000 | <1 | 16000000 |  |  |
| Adriane Kearney | Common Stock | 15000000 | <1 | 3000000 | 12000000 | <1 |
| Ludvina Martinez | Common Stock | 14705882 | <1 | 2941177 | 11764705 | <1 |
| Andres Mesa | Common Stock | 14285715 | <1 | 2857143 | 11428572 | <1 |
| Laura and Jesus Grimaldo | Common Stock | 13161764 | <1 | 2632353 | 10529411 | <1 |
| David Ward | Common Stock | 10080645 | <1 | 2016129 | 8064516 | <1 |
| Dianely Heredia | Common Stock | 10000000 | <1 | 10000000 |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;<br>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Will Morey | Common Stock | 10000000 | <1 | 10000000 |  |  |
| Alfonso Campos | Common Stock | 10000000 | <1 | 2000000 | 8000000 | <1 |
| Robert A. Fleming | Common Stock | 10000000 | <1 | 2000000 | 8000000 | <1 |
| Dolores Diaz | Common Stock | 8928857 | <1 | 1785772 | 7143085 | <1 |
| Shawna M. Heisler | Common Stock | 7000000 | <1 | 1400000 | 5600000 | <1 |
| Stephen Joshua Bertrand | Common Stock | 7000000 | <1 | 1400000 | 5600000 | <1 |
| Lourdes Perez Ruiz and Cesar A Oliver Canabal | Common Stock | 7000000 | <1 | 7000000 |  |  |
| Ana and Raul Hernandez | Common Stock | 6944444 | <1 | 1388889 | 5555555 | <1 |
| Cannapolis Scientific Farm SAS | Common Stock | 6429000 | <1 | 1285800 | 5143200 | <1 |
| Juan de Dios Martinez | Common Stock | 6250000 | <1 | 1250000 | 5000000 | <1 |
| Rosa Galindo | Common Stock | 6250000 | <1 | 1250000 | 5000000 | <1 |
| Paola Perales | Common Stock | 6000000 | <1 | 1200000 | 4800000 | <1 |
| David Esparza | Common Stock | 5882353 | <1 | 1176471 | 4705882 | <1 |
| George and Sky Noel | Common Stock | 5018939 | <1 | 1003788 | 4015151 | <1 |
| Alex J. Cruz Valez | Common Stock | 5000000 | <1 | 1000000 | 4000000 | <1 |
| Eduardo Ibarra | Common Stock | 5000000 | <1 | 5000000 |  | <1 |
| Bob Wood | Common Stock | 5000000 | <1 | 1000000 | 4000000 | <1 |
| Brian Cuban | Common Stock | 5000000 | <1 | 1000000 | 4000000 | <1 |
| Maria Magdelena Pinedo | Common Stock | 5000000 | <1 | 1000000 | 4000000 | <1 |
| Victor Montanez | Common Stock | 5000000 | <1 | 1000000 | 4000000 | <1 |
| Jennifer Ariceli Simbana Prado | Common Stock | 5000000 | <1 | 5000000 |  |  |
| Marianna Jazmin Sardi Nobles | Common Stock | 5000000 | <1 | 5000000 |  |  |
| Anne Marie Graham Escobar | Common Stock | 5000000 | <1 | 5000000 |  |  |
| Teresa Lafond | Common Stock | 4000000 | <1 | 4000000 |  |  |
| Ericka and Marcos Nava | Common Stock | 3750000 | <1 | 750000 | 3000000 | <1 |
| Wyntrea Cunningham | Common Stock | 3571428 | <1 | 714286 | 2857142 | <1 |
| Shana Rodriguez | Common Stock | 3125000 | <1 | 685000 | 2440000 | <1 |
| Dante Rodriguez | Common Stock | 3000000 | <1 | 600000 | 2400000 | <1 |
| Eugenio E. Ibarra Pereira | Common Stock | 3000000 | <1 | 600000 | 2400000 | <1 |
| Leidy Marulanda Escudero | Common Stock | 3000000 | <1 | 600000 | 2400000 | <1 |
| Arturo Gomez | Common Stock | 2500000 | <1 | 500000 | 2000000 | <1 |
| Teresa Serrano-Lamm | Common Stock | 2500000 | <1 | 500000 | 2000000 | <1 |
| Cardamom Export Company SAS | Common Stock | 2143000 | <1 | 428600 | 1714400 | <1 |
| Billy and Krista Foxworth | Common Stock | 2000000 | <1 | 400000 | 1600000 | <1 |
| Cecil Bishop, Jr. | Common Stock | 2000000 | <1 | 400000 | 1600000 | <1 |
| Martina A Cortez | Common Stock | 2000000 | <1 | 400000 | 1600000 | <1 |
| Presly Schoenman | Common Stock | 2000000 | <1 | 400000 | 1600000 | <1 |
| Tom Tusing | Common Stock | 2000000 | <1 | 400000 | 1600000 | <1 |
| Fernando and Ramon Najera | Common Stock | 2000000 | <1 | 2000000 |  |  |
| Lizeth Vega | Common Stock | 1893939 | <1 | 378788 | 1515151 | <1 |
| Steven and Sonia Flores | Common Stock | 1562500 | <1 | 312500 | 1250000 | <1 |
| Eric Dangler, Timothy Borgmann and David Farmos | Common Stock | 1500000 | <1 | 300000 | 1200000 | <1 |
| Leavery Y. Davidson | Common Stock | 1500000 | <1 | 300000 | 1200000 | <1 |
| Akil Thomas | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Annabel Velasquez | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Jeanette Cantu and Ricardo Beltran | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Maryanne Velasquez | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Ricardo Delacruz | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Robert Gomez | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Shanner Fugett | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Tommy Hampton | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Victor and Rene Gonzalez | Common Stock | 1470588 | <1 | 294117 | 1176471 | <1 |
| Carrie Ray | Common Stock | 1177000 | <1 | 235400 | 941600 | <1 |
| Denise Rodriguez Steidel | Common Stock | 1000000 | <1 | 200000 | 800000 | <1 |
| Jill Rocha | Common Stock | 1000000 | <1 | 200000 | 800000 | <1 |
| Kristina Gallegos Martinez | Common Stock | 1000000 | <1 | 200000 | 800000 | <1 |
| Monique Lucy Castillo Velosa | Common Stock | 1000000 | <1 | 200000 | 800000 | <1 |
| Rosangel del Valle Andrades Fuentes | Common Stock | 1000000 | <1 | 1000000 |  |  |
| Barbara Collazo Cortes | Common Stock | 500000 | <1 | 500000 |  |  |
| Daniela Montana Arevalo | Common Stock | 500000 | <1 | 500000 |  |  |
| Erika Daniel | Common Stock | 500000 | <1 | 100000 | 400000 | <1 |
| Travis Slater | Common Stock | 500000 | <1 | 100000 | 400000 | <1 |
| Brenda Gonzalez | Common Stock | 250000 | <1 | 250000 |  |  |
| Sara and Maria Jaramillo Castillo | Common Stock | 250000 | <1 | 50000 | 200000 | <1 |
| Alexis Marie Molina | Common Stock | 150000 | <1 | 30000 | 120000 | <1 |

---

(1) Assumes the sale of all shares of Common Stock shown in the column captioned "Shares Being Offered."

(2) The address for each person is c/o Cannabis Bioscience International Holdings, Inc., 6201 Bonhomme Road, Suite 466S, Houston, TX 91789.

(3) Applicable percentage of ownership is based on 9,022,937,656 shares of Common Stock outstanding on the date of this Prospectus, plus the 2,500,000 of Common Stock into which the outstanding shares of Series A Preferred Stock are convertible, totaling 9,025,437,656 shares.

(4) Assumes the conversion of all of the shares of Series A Preferred.

(5) Includes 117,000 beneficially owned together with Henry Levinski.

**<u>Corporate Governance</u>**

**Director Independence**

OTC defines "independent director" as a person other than an executive officer or employee of a company or any other person having a relationship which, in the opinion of the Board, would interfere with the exercise of independent judgment in carrying out their responsibilities as a director. The persons who are not considered independent for purposes of this definition are (i) a director who is, or at any time during the past three years was, employed by the company; (ii) a director who accepted or has a family member who accepted any compensation from the company in excess of $120,000 during any fiscal year within the three years preceding the determination of independence, other than compensation for board or board committee service; compensation paid to a family member who is an employee (other than an executive officer) of the company or benefits under a tax-qualified retirement plan, or non-discretionary compensation or (iii) a director who is the family member of a person who is, or at any time during the past three years was, employed by the Company as an executive officer.

Inasmuch as all of the directors of the Company are employed by the Company as its officers, none of them is an independent director.

A director is not considered independent if he is also an executive officer or employee of the corporation.

**Compensation Committee**

The Company does not have a standing compensation committee or a committee performing similar functions because the Board believes that, in light of the Company's early stage of development and the fact that its compensation structure is not complex, such a committee is not presently warranted. Accordingly, the whole Board participates in the consideration of executive compensation and will do so if, in the future, directors are compensated for their services as such.

**MARKET PRICE FOR OUR COMMON EQUITY<br> AND RELATED SHAREHOLDER MATTERS**

The Common Stock is quoted on the OTC Pink tier of the alternate trading system operated by OTC under the symbol CHNC. Market quotations for shares of Common Stock shown on OTC's quotation system reflect inter-dealer prices without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

On the date of this Prospectus, the closing price for the Common Stock quoted by OTC was $_____.

As of ______________, 2023, there were ___ record holders of _____________ shares of the Common Stock, of which 2,335,975,553 shares were freely tradable.

The exemption from registration afforded by Rule 144 will not be available until January 13, 2024, at the earliest.

**DESCRIPTION OF CAPITAL STOCK**

Our authorized capital stock comprises 20,000,000,000 shares of Common Stock, without par value, of which 9,022,937,656 shares are outstanding, and 10,000,000 shares of preferred stock, without par value, issuable in series, of which 2,500,000 shares have been designated Series A Convertible Preferred Stock ("Series A Preferred") and 1,000 shares have been designated Series B Convertible Preferred Stock ("Series B Preferred"), all of which are outstanding. The rights of the holders of each class and series are as follows:

**Common Stock**

Holders of Common Stock are entitled to cast one vote for each share of Common Stock on all matters submitted to a vote of the stockholders; to receive, on a pro-rata basis, dividends and distributions, if any, that the Board may declare out of legally available funds, subject to preferences that are applicable to the Series A Preferred and Series B Preferred, and, if any, to series of preferred stock that may be designated in the future; and upon liquidation, dissolution or winding up, to share equally and ratably in any assets remaining after the payment of all debts and other liabilities, subject to the prior rights of the holders of the Series A Preferred.

We do not expect to declare or pay dividends on Common Stock for the foreseeable future. See "[Dividend Policy.](#s5)"

The holders of Common Stock do not have any preemptive, cumulative voting, subscription, conversion, redemption or sinking fund rights. The Common Stock is not subject to calls or assessments. The rights and privileges of holders of the Common Stock are subject to those of the Series A Preferred, which are described below, and to any other series of preferred stock that we may issue in the future.

The Common Stock is quoted on the OTC Pink tier of the alternate trading system operated by OTC under the symbol "CHNC."

**Preferred Stock**

The Company has authorized 10,000,000 shares of preferred stock, of which 2,500,000 shares have been designated Series A Convertible Preferred Stock and 1,000 shares have been designated Series B Preferred Stock ("Series B Preferred"). The rights and preferences of the Series A Preferred Stock are the Series B Preferred Stock are as follows:

***Series A Preferred***

The Series A Preferred Stock is senior to the Common Stock and subordinate to all other series of preferred stock.

Each share of Series A Preferred is entitled to receive out of the funds of the Company legally available therefor, on the date on which such dividend or other distribution is paid or made to the holders of Common Stock, a dividend or distribution equal to the dividend or distribution that would be paid on the number of shares of Common Stock into which such share of Series A Preferred Stock is convertible immediately prior to the record date for such dividend.

In the event of any liquidation, dissolution or winding up of the Company, the holders of the outstanding shares of Series A Preferred shall be entitled to be paid out of the assets of the Corporation available for distribution to its shareholders, whether from capital, surplus funds or earnings, and before any payment is made in respect of the shares of Common Stock, an amount equal to the greater of: (i) the Market Price (as defined in the restated articles of incorporation) of the Series A Preferred Stock on the date of the liquidation, or (ii) ten cents ($0.10) per share of Series A Preferred, plus accrued but unpaid dividends.

The Series A Preferred may be redeemed, as a whole or in part, at any time or from time to time, as determined by the Board in its discretion. Upon redemption, each share of Series A Preferred shall receive as the full redemption payment the number of shares of Common Stock into which it is then convertible. The Board shall select the shares of Series A Preferred to be redeemed in its sole and unfettered discretion and need not do so on a pro-rata basis. The Series A Preferred is not redeemable at the option of the holders.

Each share of Series A Preferred is entitled to one vote for each share of Common Stock into which it is convertible, and except as otherwise required by law, vote as a group with the holders of Common Stock.

Each share of Series A Preferred may be converted, at the option of the holder, into the number of shares of Common Stock equal to the quotient obtained by dividing the current Series A Preference Price by the Series A Conversion Price, which is the greater of: (i) $0.10 or (ii) 75% of the Market Price of the Common Stock on the Conversion Date.

***Series B Preferred***

The Series B Preferred is senior to the Common Stock and the Series A Preferred.

In the event of liquidation, the shares of Series B Preferred shall not be entitled to receive any distribution of cash or other property whatsoever.

The Series B Preferred is not redeemable at the option of the holder or the Company.

The holders of the Series B Preferred vote as a group with the holders of all other classes and series of the Corporation's capital stock and have 60% of the voting power of the Company on all matters, except that the holders of the Series B Preferred vote as a separate voting group on all matters affecting their rights as such or as otherwise specified by law. No series of preferred stock having voting rights equal or superior to the voting rights of the Series B Preferred may designated without the unanimous vote of all of the holders thereof.

The holders of Series B Preferred have no conversion rights.

**Anti-Takeover Effects of the Series B Preferred**

The provisions of the restated articles of incorporation designating the Series B Preferred vest 60% of the voting power of the Company in the holders thereof. These provisions prevent the holders of Common Stock from taking any action without the approval of the holders of the Series B Preferred. These provisions may have an anti-takeover effect and may delay, deter or prevent a tender offer, takeover attempt or other transaction that might be in a stockholder's best interest, including an attempt that might result in the receipt of a premium over the market price for shares of Common Stock.

**Indemnification**

The Company's amended and restated articles of incorporation require it to indemnify, to the full extent permitted by law, any person who is or was a director or officer of the Company and may indemnify any other person against any claim, liability or expense arising against or incurred by such person made a party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Company or because he is or was serving another entity as a director, officer, partner, trustee, employee, fiduciary or agent at the Company's request.

**Elimination of Personal Liability**

The Company's amended and restated articles of incorporation provide that the personal liability of the Company's directors to the Company or its stockholders is limited to the full extent permitted by the CBCA.

**Annual Stockholders Meeting**

Our amended and restated by-laws provide that annual stockholder meetings will be held at a date, time and place selected by resolution adopted by a majority of our entire Board or, if duly authorized by the affirmative vote of a majority of our entire Board, by a committee thereof, or by the chairman of our Board (if delegated such authority by resolution adopted by a majority of our entire Board). We are permitted to conduct stockholder meetings by remote communications.

The affirmative vote of holders of a majority of the outstanding shares of our capital stock present, in person or by proxy, at any annual or special meeting of stockholders and entitled to vote will decide all matters voted on by stockholders at such meeting, provided that such shares constitute a quorum, unless the question is one upon which, by express provision of law, under our amended and restated certificate of incorporation, or under our amended and restated by-laws, a different vote is required, in which case such provision will control.

**SHARES ELIGIBLE FOR FUTURE SALE** 

Future sales of substantial amounts of Common Stock, including shares issued upon the exercise of outstanding options or warrants, in the public market after the Offering, or the perception that such sales may occur, could cause the market price for the Common Stock to fall or impair our ability to raise capital through sales of our equity securities.

Upon the termination of the Offering, assuming that all of the shares offered by the Company are sold, there will be 15,275,437,656 shares of Common Stock outstanding.

In addition to the 8,786,252,288 shares of Common Stock that are offered by this Prospectus, (i) approximately 935,000,000 shares of Common Stock held by persons who are not affiliates of the Company will be permitted to be sold after January 13, 2024, under Rule 144 promulgated by the SEC under the Securities Act ("Rule 144") without notice to the SEC in unlimited amounts and without restriction as to the manner of sale and (ii) 3,512,111,700 shares of Common Stock held by a person who is an affiliate of the Company will be permitted to be sold under Rule 144 after January 13, 2024, in limited amounts, subject to notice to the SEC and subject to restriction as to the manner of sale and (iii) up to 600,000,000 shares of Common Stock that may be issued under the Company's 2022 Equity Incentive Plan may be sold in the public markets, subject to limitations in the case of shares issued under that plan to affiliates of the Company, upon the filing of a registration statement on Form S-8 with respect thereto or without registration under Rule 144 after being held by for the period required by that rule. The sale of these shares or the perception that they may be sold may substantially and adversely affect the market price of the Common Stock, with the result that persons who acquire shares of Common Stock in the Offering may be able to resell them only at substantial losses.

**Rule 144** 

In general, under Rule 144, beginning on January 13, 2024, any person who is not our affiliate and has held their shares for at least six months, including the holding period of any prior owner, except for our affiliates, may sell shares without restriction, subject to the availability of current public information about us. In addition, under Rule 144, any person who is not and has not been our affiliate at any time during the preceding three months and has held his shares for at least one year, including the holding period of any prior owner, except for our affiliates, would be entitled to sell an unlimited number of shares immediately in the event that no current public information about us is available.

Beginning on January 13, 2024, a person who is our affiliate or who was our affiliate at any time during the preceding three months and who has beneficially owned restricted securities for at least six months, including the holding period of any prior owner other than one of our affiliates, will be entitled to sell a number of shares within any three-month period that does not exceed the greater of: (i) 1% of the number of shares of Common Stock outstanding, which will be approximately 152,754,376 shares immediately after the termination of the Offering, assuming that all of the shares offered by the Company are sold, and (ii) the average weekly trading volume of Common Stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale. Such sales will be subject to certain manner-of-sale provisions, notice requirements and the availability of current public information about us.

**Incentive Plan Registration Statement**

We intend to file with the SEC a registration statement on Form S-8 under the Securities Act covering the shares of common stock that are issuable to existing and future awards under the Incentive Plan. Shares covered by such registration statement will be available for sale in the open market following its effective date, subject to limitations applicable to shares of Common Stock held by our affiliates.

**Registration rights** 

Persons to whom we sell shares of Common Stock or securities convertible into Common Stock pursuant to exemptions from registration under the Securities Act may acquire these shares or securities under agreements pursuant to which they may demand that we register the sale of the purchased shares under the Securities Act or, if we file a registration statement under the Securities Act other than a registration statement on Form S-8 covering securities issuable under the Incentive Plan or on Form S-4, may have the right to include their shares in such registration. Following such registered sales, these shares will be freely tradable without restriction under the Securities Act, unless they are held by our affiliates.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS OF COMMON STOCK**

The following is a summary of the material U.S. federal income tax consequences to non-U.S. holders (as defined below) of the acquisition, ownership, and disposition of Common Stock issued pursuant to this offering. This discussion is not a complete analysis of all potential U.S. federal income tax consequences relating thereto, does not address the potential application of the Medicare contribution tax on net investment income, the alternative minimum tax, or the special tax accounting rules under Section 451(b) of the Code, and does not address any estate or gift tax consequences or any tax consequences arising under any state, local, or foreign tax laws, or any other U.S. federal tax laws. This discussion is based on the Code and applicable Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the Internal Revenue Service, or IRS, all as in effect as of the date hereof. These authorities are subject to differing interpretations and may change, possibly retroactively, resulting in U.S. federal income tax consequences different from those discussed below. We have not requested a ruling from the IRS with respect to the statements made and the conclusions reached in the following summary, and there can be no assurance that the IRS or a court will agree with such statements and conclusions.

This discussion is limited to non-U.S. holders who purchase Common Stock pursuant to this offering and who hold Common Stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all of the U.S. federal income tax consequences that may be relevant to a particular holder in light of such holder's particular circumstances. This discussion also does not consider any specific facts or circumstances that may be relevant to holders subject to special rules under the U.S. federal income tax laws, including:

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

· "controlled foreign corporations";

· "passive foreign investment companies";

· corporations that accumulate earnings to avoid U.S. federal income
 tax;

· banks, financial institutions, investment funds, insurance companies,
 brokers, dealers, or traders in securities;

· tax-exempt organizations and governmental organizations;

· tax-qualified retirement plans;

· "qualified foreign pension funds" as defined in Section 897(l)(2)
 of the Code and entities, all of the interests of which are held by qualified foreign pension funds;

· persons that own, or have owned, actually or constructively, more than
 5% of Common Stock at any time;

· persons who have elected to mark securities to market; and

· persons holding Common Stock as part of a hedging or conversion transaction
 or straddle, a constructive sale, or other risk reduction strategy or integrated investment.

If an entity or arrangement that is classified as a partnership for U.S. federal income tax purposes holds Common Stock, the U.S. federal income tax treatment of the partnership and the partners thereof generally

depend on the status of the partner and the activities of the partnership. Partnerships holding Common Stock and the partners in such partnerships are urged to consult their tax advisors about the particular U.S. federal income tax consequences to them of holding and disposing of Common Stock.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. PROSPECTIVE INVESTORS SHOULD CONSULT THEIR TAX ADVISORS REGARDING THE PARTICULAR U.S. FEDERAL INCOME TAX CONSEQUENCES TO THEM OF ACQUIRING, OWNING, AND DISPOSING OF COMMON STOCK, AS WELL AS ANY TAX CONSEQUENCES ARISING UNDER ANY STATE, LOCAL, OR FOREIGN TAX LAWS AND ANY OTHER U.S. FEDERAL TAX LAWS.** 

**Definition of non-U.S. holder** 

For purposes of this discussion, the term "non-U.S. holder" means any beneficial owner of Common Stock that is not a "U.S. person" or a partnership (including any entity or arrangement treated as a partnership) for U.S. federal income tax purposes. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

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

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

· an estate, the income of which is subject to U.S. federal income tax
 regardless of its source; or

· a trust (1) whose administration is subject to the primary supervision
 of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or
 (2) that has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

**Distributions on Common Stock** 

We have not paid dividends on Common Stock and do not anticipate paying dividends on Common Stock for the foreseeable future. However, if we make cash or other property distributions on Common Stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and will first be applied against and reduce a holder's tax basis in Common Stock, but not below zero. Any excess will be treated as gain realized on the sale or other disposition of Common Stock and will be treated as described under the section titled "— Gain on disposition of Common Stock" below.

Subject to the discussions below regarding effectively connected income, backup withholding and Sections 1471 through 1474 of the Code (commonly referred to as FATCA), dividends paid to a non-U.S. holder generally will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends or such lower rate specified by an applicable income tax treaty. To receive the benefit of a reduced treaty rate, a non-U.S. holder must furnish a valid IRS Form W-8BEN or IRS Form W-8BEN-E (or applicable successor form) and satisfy applicable certification and other requirements. This certification must be provided before the payment of dividends and must be updated periodically. If the non-U.S. holder holds the stock through a financial institution or other agent acting on the non-U.S. holder's behalf, the non-U.S. holder will be required to provide appropriate documentation to the agent, which then will be required to provide certification, either directly or through other intermediaries.

If a non-U.S. holder holds Common Stock in connection with the conduct of a trade or business in the United States, and dividends paid on Common Stock are effectively connected with such holder's U.S. trade or business (and are attributable to such holder's permanent establishment in the United States if required by an applicable tax treaty), the non-U.S. holder will be exempt from U.S. federal withholding tax. To claim the exemption, the non-U.S. holder must generally furnish a valid IRS Form W-8ECI (or applicable successor form) to us or our paying agent. However, any such effectively connected dividends paid on Common Stock generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items. Non-U.S. holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

Non-U.S. holders that do not provide the required certification on a timely basis, but that qualify for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

**Gain on disposition of Common Stock** 

Subject to the discussions below regarding backup withholding and FATCA, a non-U.S. holder generally will not be subject to U.S. federal income tax on any gain realized on the sale or other disposition of Common Stock unless:

· the gain is effectively connected with the non-U.S. holder's
 conduct of a trade or business in the United States and, if required by an applicable income tax treaty, is attributable to a permanent
 establishment maintained by the non-U.S. holder in the United States;

· the non-U.S. holder is a nonresident alien individual present in the
 United States for 183 days or more during the taxable year of the disposition, and certain other requirements are met; or

· Common Stock constitutes a "United States real property interest,"
 or USRPI, by reason of our status as a United States real property holding corporation, or USRPHC, for U.S. federal income tax purposes
 at any time within the shorter of the five-year period preceding the disposition or the non-U.S. holder's holding period for
 Common Stock.

The determination of whether we are a USRPHC depends on the fair market value of our USRPIs relative to the fair market value of worldwide real property interests and our other assets used or held for use in a trade or business. We believe that we are not and do not anticipate becoming a USRPHC for U.S. federal income tax purposes, although there can be no assurance that we will not become a USRPHC. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition of Common Stock by a non-U.S. holder will not be subject to U.S. federal income tax if Common Stock is "regularly traded" (as defined by applicable Treasury Regulations) on an established securities market, and such non-U.S. holder owned, actually and constructively, 5% or less of Common Stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the non-U.S. holder's holding period. Prospective investors are encouraged to consult their own tax advisors regarding the possible consequences to them if we are, or were to become, a USRPHC.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular U.S. federal income tax rates in the same manner as if such holder were a resident of the United States. A non-U.S. holder that is a foreign corporation also may be subject to an additional branch profits tax equal to 30% (or such lower rate specified by an applicable income tax treaty) of its effectively connected earnings and profits for the taxable year, as adjusted for certain items. Gain described in the second bullet point above will be subject to U.S. federal income tax at a flat 30% rate (or such lower rate specified by an applicable income tax treaty), but may be offset by certain U.S.-source capital losses (even though the individual is not considered a resident of the United States), provided that the non-U.S. holder has timely filed U.S. federal income tax returns with respect to such losses. Non-U.S. holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Information reporting and backup withholding** 

Annual reports are required to be filed with the IRS and provided to each non-U.S. holder indicating the amount of distributions on Common Stock paid to such holder and the amount of any tax withheld with respect to those distributions. These information reporting requirements apply regardless of whether such distributions constitute dividends and even if no withholding was required. This information also may be made available under a specific treaty or agreement with the tax authorities in the country in which the non-U.S. holder resides or is established. Backup withholding, currently at a 24% rate, generally will not apply to payments to a non-U.S. holder of dividends on or the gross proceeds of a disposition of Common Stock provided the non-U.S. holder furnishes the required certification for its non-U.S. status, such as by providing a valid IRS Form W-8BEN, IRS Form W-8BEN-E, or IRS Form W-8ECI, or certain other requirements are met. Backup withholding may apply if the payor has actual knowledge, or reason to know, that the holder is a U.S. person who is not an exempt recipient.

Backup withholding is not an additional tax. If any amount is withheld under the backup withholding rules, the non-U.S. holder should consult with a U.S. tax advisor regarding the possibility of and procedure for obtaining a refund or a credit against the non-U.S. holder's U.S. federal income tax liability, if any.

**FATCA** 

FATCA imposes a U.S. federal withholding tax of 30% on certain payments made to a "foreign financial institution" (as specially defined under these rules) unless such institution enters into an agreement with the U.S. government to withhold on certain payments and to collect and provide to the U.S. tax authorities substantial information regarding certain U.S. account holders of such institution (which includes certain equity and debt holders of such institution, as well as certain account holders that are foreign entities with U.S. owners) or an exemption applies. FATCA also generally will impose a U.S. federal withholding tax of 30% on certain payments made to a non-financial foreign entity unless such entity provides the withholding agent a certification identifying certain direct and indirect U.S. owners of the entity or an exemption applies. An intergovernmental agreement between the United States and an applicable foreign country may modify these requirements. Under certain circumstances, a non-U.S. holder might be eligible for refunds or credits of such taxes. FATCA currently applies to dividends paid on Common Stock. Under applicable Treasury Regulations and administrative guidance, withholding under FATCA would have applied to payments of gross proceeds from the sale or other disposition of stock, but under proposed regulations (the preamble to which specifies that taxpayers are permitted to rely on such proposed regulations pending finalization), no withholding would apply with respect to payments of gross proceeds.

Prospective investors are encouraged to consult with their own tax advisors regarding the possible implications of this legislation on their investment in Common Stock.

**PLAN OF DISTRIBUTION**

**By the Company**

The Company is offering up to 6,250,000,000 shares of Common Stock at the Fixed Offering Price, unless modified by a post-effective amendment to the registration statement of which this Prospectus is a part. The Company may sell these shares in one or more of the following three ways: (i) to or through underwriters or dealers; (ii) directly to one or more purchasers; or (iii) through agents.

Each time we offer and sell such shares, we will, if required, make available a Prospectus supplement or supplements that will describe the method of distribution and set forth the terms of the offering, including (i) the name or names of any underwriters, dealers, or agents and the number of shares of securities underwritten or purchased by each of them; (ii) if a fixed price offering, the public offering price of the securities and the proceeds to us; (iii) any options under which underwriters may purchase additional securities from us; (iv) any underwriting discounts or commissions or agency fees and other items constituting underwriters' or agents' compensation; (v) terms and conditions of the offering; (vi) any discounts, commissions or concessions allowed or reallowed or paid to dealers; and (vii) any securities exchange or market on which the securities may be listed.

We may terminate the offering before all shares are sold. There is no minimum number of shares that must be sold before we may use the proceeds. Proceeds will not be returned to investors if we sell less than all of the shares offered by this Prospectus. The proceeds from the sales of the shares will not be placed in an escrow account.

The offering will be conducted by the executive officers of the Company. Under Rule 3a 4-1 of the Exchange Act, an issuer may conduct a direct offering of its securities without registration as a broker-dealer using officers who perform substantial duties for or on behalf of the issuer otherwise than in connection with securities transactions and who were not brokers or dealers or associated persons of brokers or dealers within the preceding 12 months and who have not participated in selling an offering of securities for any issuer more than once every 12 months, with certain exceptions. Furthermore, such persons may not be subject to statutory disqualification under Section 3(a)(39) of the Securities Exchange Act and may not be compensated in connection with securities offerings by payment of commission or other remuneration based either directly or indirectly on transactions in securities and at the time of offering our shares may not be associated persons of a broker or dealer. Mr. Picazo and our other executive officers meet these requirements.

During the Offering, the Company may offer unregistered shares of Common Stock to investors in private placements at prices per share that may be higher or lower than the public offering price.

**By the Selling Stockholders**

The Selling Stockholders identified in this Prospectus may offer, from time to time, up to 2,536,252,288 shares of Common Stock up to the respective amounts set forth in this Prospectus. We will not receive any of the proceeds of such sales. There can be no assurance that the Selling Stockholders will offer or sell any or all of such Common Stock.

Messrs. Picazo, Levinski and Torres, who are officers and directors of the Company, may be regarded as underwriters. In addition, Mr. Picazo has indicated that he may reinvest all or a portion of the proceeds of sales of his shares, in the form of equity or debt, on terms to be approved by the Board in the manner provided by Colorado law respecting transactions in which officers and directors of the Company have an interest and may be regarded as an underwriter in respect of such reinvestments.

The Selling Stockholders and their successors, including their transferees, may sell all or a portion of their shares directly to purchasers or through underwriters, broker-dealers or agents, who may receive compensation in the form of discounts, concessions or commissions from the Selling Stockholders or the purchasers of the shares. These discounts, concessions or commissions as to any particular underwriter, broker-dealer or agent may be in excess of those customary in the types of transactions involved.

These shares may be sold in one or more transactions on any national securities exchange or alternate trading system on which the shares may be listed or quoted at the time of sale or in the over-the-counter market or transactions otherwise than on these exchanges or systems in one or more transactions. The shares will be sold at the Fixed Offering Price. These sales may be effected in transactions, which may involve crosses or block transactions. Additionally, the Selling Stockholders may enter into derivative transactions with third parties or sell securities not covered by this Prospectus to third parties in privately negotiated transactions. The Selling Stockholders may use any one or more of the following methods when selling shares:

&nbsp;&nbsp;&nbsp;&nbsp;· on
 any national securities exchange or alternated trading system on which the shares may be
 listed or quoted at the time of sale, including NASDAQ;

&nbsp;&nbsp;&nbsp;&nbsp;· in
 transactions otherwise than on these exchanges or services or in the over-the-counter market;

&nbsp;&nbsp;&nbsp;&nbsp;· through
 the writing or settlement of options or other hedging transactions, whether the options are
 listed on an options exchange or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;· ordinary
 brokerage transactions and transactions in which the broker-dealer solicits purchasers;

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

&nbsp;&nbsp;&nbsp;&nbsp;· purchases
 by a broker-dealer as principal and resale by the broker-dealer for its account;

&nbsp;&nbsp;&nbsp;&nbsp;· an
 exchange distribution in accordance with the rules of the applicable exchange;

&nbsp;&nbsp;&nbsp;&nbsp;· a
 debt-for-equity exchange;

&nbsp;&nbsp;&nbsp;&nbsp;· privately
 negotiated transactions;

&nbsp;&nbsp;&nbsp;&nbsp;· settlement
 of short sales entered into after the effective date of the registration statement of which
 this Prospectus forms a part;

&nbsp;&nbsp;&nbsp;&nbsp;· broker-dealers
 may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated
 price per share;

&nbsp;&nbsp;&nbsp;&nbsp;· a
 combination of any such methods of sale; and

&nbsp;&nbsp;&nbsp;&nbsp;· any
 other method permitted by applicable law.

The Selling Stockholders may offer Common Stock to the public through underwriting syndicates represented by managing underwriters or through underwriters without an underwriting syndicate. If underwriters are used for the sale of Common Stock, the securities will be acquired by the underwriters for their own account. The underwriters may resell the Common Stock in one or more transactions, including negotiated transactions at a fixed public offering price or at varying prices determined at the time of sale. In connection with any such underwritten sale of Common Stock, underwriters may receive compensation from the Selling Stockholders, for whom they may act as agents, in the form of discounts, concessions or commissions. Underwriters may sell Common Stock to or through dealers, and the dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters or commissions from the purchasers for whom they may act as agents. Such compensation may be in excess of customary discounts, concessions or commissions.

If underwriters are used for the sale of Common Stock, to the extent required by law, the names of the underwriters will be set forth in the Prospectus or prospectus supplement used by the underwriters to sell those securities. The Selling Stockholders may use underwriters with whom we or the Selling Stockholders have a material relationship. We will describe the nature of such relationship in any applicable prospectus supplement naming the underwriter or underwriters.

If underwriters are used for the sale of Common Stock, unless otherwise indicated in this Prospectus or a prospectus supplement relating to a particular offering of Common Stock, the obligations of any underwriters to purchase the securities will be subject to customary conditions precedent, and the underwriters will be obligated to purchase all of the securities offered if any of the securities are purchased.

The anti-manipulation rules of Regulation M under the Exchange Act may apply to sales of the shares of Common Stock pursuant to this Prospectus and any applicable prospectus supplement and the activities of the Selling Stockholders. In addition, we will make copies of this Prospectus and any applicable prospectus supplement available to the Selling Stockholders to satisfy the prospectus delivery requirements of the Securities Act. To the extent applicable, Regulation M may also restrict the ability of any person engaged in the distribution of the Common Stock to engage in market-making activities with respect to the Common Stock. All of the foregoing may affect the marketability of the Common Stock and the ability of any person or entity to engage in market-making activities with respect to the Common Stock.

In addition, any securities that qualify for sale pursuant to Rule 144, Regulation S under the Securities Act or Section 4(1) under the Securities Act may be sold under such rules rather than pursuant to this Prospectus or a prospectus supplement.

The Selling Stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of Common Stock in the course of hedging the positions they assume. The Selling Stockholders may also sell short the shares and deliver Common Stock to close out short positions, or loan or pledge the shares to broker-dealers that in turn may sell these shares. The Selling Stockholders may also enter into option or other transactions with broker-dealers or other financial institutions or the creation of one or more derivative securities that require the delivery to such broker-dealer or other financial institution of shares offered by this Prospectus and any applicable prospectus supplement, which shares such broker-dealer or other financial institution may resell pursuant to this Prospectus and any prospectus supplement. The Selling Stockholders also may transfer and donate the shares in other circumstances, in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this Prospectus and any applicable prospectus supplement.

The aggregate proceeds to the Selling Stockholders from the sale of the shares of Common Stock will be the sale price for the shares, less discounts and commissions, if any.

In offering the shares of Common Stock covered by this Prospectus and any applicable prospectus supplement, the Selling Stockholders and any broker-dealers who execute sales for the Selling Stockholders may be deemed to be "underwriters" within the meaning of Section 2(a)(11) of the Securities Act in connection with such sales. Any profits realized by the Selling Stockholders and the compensation of any broker-dealer may be deemed to be underwriting discounts and commissions. Selling Stockholders who are "underwriters" within the meaning of Section 2(a)(11) of the Securities Act will be subject to the prospectus delivery requirements of the Securities Act and may be subject to certain statutory and regulatory liabilities, including liabilities imposed pursuant to Sections 11, 12 and 17 of the Securities Act and Rule 10b-5 under the Exchange Act.

To comply with the securities laws of certain states, if applicable, the shares of Common Stock must be sold in such jurisdictions only through registered or licensed brokers or dealers. In addition, in certain states the shares may not be sold unless the shares are registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.

At the time when a particular offering of the shares is made, a prospectus supplement, if required, will be distributed, which will set forth the name of the Selling Stockholders, the aggregate amount of shares being offered by the Selling Stockholders and the terms of the offering, including, to the extent required, (1) the name or names of any underwriters, broker-dealers or agents, (2) any discounts, commissions and other terms constituting compensation from the Selling Stockholders and (3) any discounts, commissions or concessions allowed or reallowed to be paid to broker-dealers.

Agents and underwriters and their respective affiliates may engage in transactions with, or perform services for, us in the ordinary course of business for which they may receive customary fees and reimbursement of expenses.

**LEGAL MATTERS**

The validity of the shares of Common Stock offered by this Prospectus has been passed upon by Barry J. Miller of West Bloomfield, Michigan. Mr. Miller is the indirect beneficial holder of 50,000,000 shares of Common Stock.

**EXPERTS**

The consolidated financial statements of the Company for the years ended on May 31, 2022, and May 31, 2021, have been included in this Prospectus and in the registration statement of which it forms a part in reliance upon the report of PWR CPA, LLP, our independent registered public accounting firm, appearing elsewhere herein, and upon the authority of said firm as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

We have filed with the SEC a registration statement on Form S-1, including exhibits and schedules, under the Securities Act, with respect to the shares of Common Stock being offered by this Prospectus. This Prospectus, which constitutes part of the registration statement, does not contain all of the information in the registration statement and its exhibits. For further information with respect to us and the Common Stock offered by this Prospectus, we refer you to the registration statement and its exhibits. Statements contained in this Prospectus as to the contents of any contract or any other document referred to are not necessarily complete, and in each instance, we refer you to the copy of the contract or other document filed as an exhibit to the registration statement. Each of these statements is qualified in all respects by this reference.

You can read our SEC filings, including the registration statement, free of charge, over the Internet at the SEC's website at www.sec.gov.

We will be subject to the information reporting requirements of the Exchange Act and we will file reports and other information with the SEC. You may access these materials free of charge on the SEC's website as soon as they are filed with the SEC.

Information on or accessible through our website is not a part of this Prospectus, and the inclusion of our website address in this Prospectus is an inactive textual reference only.

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

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| | |
|:---|:---|
| **<u>Page</u>** | **<u>Page</u>** |
| **Unaudited Consolidated Financial Statements for the Three Months Ended August 31, 2022, and August 31, 2021:** | **Unaudited Consolidated Financial Statements for the Three Months Ended August 31, 2022, and August 31, 2021:** |
| [Consolidated Balance Sheets](#fs7) | F-1 |
| [Consolidated Statements of Operations](#fs8) | F-2 |
| [Consolidated Statements of Cash Flows](#fs10) | F-3 |
| [Consolidated Statements of Shareholders' Equity (Deficit)](#fs9) | F-4 |
| [Notes to Condensed Consolidated Financial Statements](#fs11) | F-5 |

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| | |
|:---|:---|
| **Audited Consolidated Financial Statements for the Fiscal Years Ended May 31, 2022, and May 31, 2021:** | **Audited Consolidated Financial Statements for the Fiscal Years Ended May 31, 2022, and May 31, 2021:** |
| [Report of Independent Registered Public Accounting Firm](#fs1) | F-15 |
| [Consolidated Balance Sheets](#fs2) | F-16 |
| [Consolidated Statements of Operations](#fs3) | F-17 |
| [Consolidated Statements of Cash Flows](#fs5) | F-18 |
| [Consolidated Statements of Shareholders' Equity (Deficit)](#fs4) | F-19 |
| [Notes to Consolidated Financial Statements](#fs6) | F-20 |

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**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **August 31, 2022**<br>**(Unaudited)** | **May 31, 2022**<br>**(Audited)** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| Cash and cash equivalents | $1707 | $31982 |
| Accounts receivable | 43307 | 5614 |
| Prepaid expenses and other assets | 10 |  |
| Related party receivables | 12000 | 12000 |
| **TOTAL CURRENT ASSETS** | 57024 | 49596 |
| Right-of-use asset | 51450 | 60298 |
| **TOTAL ASSETS** | $108474 | $109894 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| Accounts payable and accrued expenses | $139960 | $61578 |
| Accrued rent | 5489 | 6632 |
| Related party payable | 76147 | 15838 |
| Short-term loan | 97553 | 48074 |
| SBA loan | 10426 | 5561 |
| PPP loan |  | 41666 |
| Lease liabilities - current | 37200 | 44054 |
| **TOTAL CURRENT LIABILITIES** | 366775 | 223403 |
| **LONG-TERM LIABILITIES:** |  |  |
| SBA loan - noncurrent | 238874 | 243738 |
| Lease liabilities - noncurrent | – | 3804 |
| **TOTAL LONG-TERM LIABILITIES** | 238874 | 247542 |
| **TOTAL LIABILITIES** | 605649 | 470945 |
| **STOCKHOLDERS' DEFICIT** |  |  |
| Preferred Stock, 10,000,000 shares authorized |  |  |
| &nbsp;&nbsp;&nbsp;Series A Convertible Preferred Stock: 2,500,000 shares designated and outstanding at August 31, 2022, and May 31, 2022 (without par value at August 31, 2022, and par value $0.001 per share at May 31, 2022) |  | 2500 |
| &nbsp;&nbsp;&nbsp;Series B Convertible Preferred Stock, without par value: 1,000 shares designated and outstanding at August 31, 2022; none designated at May 31, 2022 |  |  |
| Common Stock, without par value: 20,000,000,000 shares authorized 8,167,531,094 and 8,612,998,299 shares issued and outstanding at August 31, 2022, and May 31, 2022, respectively |  |  |
| Additional paid-in capital | 3384105 | 3286605 |
| Subscription receivable | (20000) |  |
| Accumulated deficit | (3861280) | (3650156) |
| **TOTAL STOCKHOLDERS' DEFICIT** | (497175) | (361051) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $108474 | $109894 |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF OPERATIONS**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended August 31,** | **Three Months Ended August 31,** |
|  | **2022** | **2021** |
| **Revenue** | $138082 | $84676 |
| **Cost of revenue** | 46234 | 14309 |
| **Gross profit** | 91848 | 70367 |
| **Costs and Expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 32879 | 33765 |
| &nbsp;&nbsp;&nbsp;Contract labor | 173849 | 126758 |
| &nbsp;&nbsp;&nbsp;Professional fees | 92122 | 49996 |
| &nbsp;&nbsp;&nbsp;Officer compensation | 12000 | 28297 |
| &nbsp;&nbsp;&nbsp;Rent and Lease | 18246 | 25038 |
| &nbsp;&nbsp;&nbsp;Travel | 1667 | 2975 |
| **Total operating expenses** | 330763 | 266829 |
| **Operating loss** | (238915) | (196462) |
| **Other income (expense)** |  |  |
| &nbsp;&nbsp;&nbsp;Forgiveness of debt | 41666 | 31750 |
| &nbsp;&nbsp;&nbsp;Interest | (13874) | (6575) |
| **Total other income** | 27792 | 30575 |
| **Loss before taxes** | (211123) | (171287) |
| **Income tax provision** | – | – |
| Net Loss | $(211123) | $(171287) |
| Average common stock outstanding | $8560168787 | $7850488100 |
| Average loss per share | $(0.00002) | $(0.00002) |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Three Months Ended August 31,** | **Three Months Ended August 31,** |
|  | **2022** | **2021** |
| **OPERATING ACTIVITIES:** |  |  |
| Net loss | $(211123) | $(171287) |
| Adjustments to reconcile net income: |  |  |
| &nbsp;&nbsp;&nbsp;Amortization of right-to-use asset and liability | (1810) | 1394 |
| &nbsp;&nbsp;&nbsp;Loan forgiveness | (41666) | (26750) |
| Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable | (37693) | (39690) |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 77239 | 50880 |
| &nbsp;&nbsp;&nbsp;Other Assets | (10) | (2286) |
| **NET CASH USED IN OPERATIONS** | (215063) | (187739) |
| **FINANCING ACTIVITIES:** |  |  |
| Proceeds from sales of common stock | 75000 | 82500 |
| Proceeds from short term loans | 49479 | 96472 |
| Proceeds from related party loan | 60309 | (8853) |
| **NET CASH PROVIDED BY FINANCING ACTIVITIES** | 184789 | 170119 |
| **NET DECREASE IN CASH** | (30275) | (17620) |
| **CASH AT BEGINNING OF PERIOD** | 31982 | 41322 |
| **CASH AT END OF PERIOD** | $1707 | $23702 |
| Non-cash investing and financing transactions |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of preferred shares | $– | $– |
| &nbsp;&nbsp;&nbsp;Common stock exchange | $– | $– |
| &nbsp;&nbsp;&nbsp;Stock subscription issuance | $20000 | $– |
| &nbsp;&nbsp;&nbsp;Stock subscription receivable | $(20000) | $– |
| Supplemental disclosure of cash flow information: |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $7809 | $– |
| &nbsp;&nbsp;&nbsp;Cash paid for taxes | $– | $– |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)**

(Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Convertible Preferred Stock** | **Series A Convertible Preferred Stock** | **Series B Convertible Preferred Stock** | **Series B Convertible Preferred Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Shares** | **Additional Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balances - May 31, 2021** | 2500000 | $2500 |  | $– | 7814238100 | $2461315 | $(2764985) | $(301170) |
| &nbsp;&nbsp;Sales of common stock |  |  |  |  | 36134739 | 82500 |  | 82500 |
| &nbsp;&nbsp;Net loss for the quarter | – | – | – | – | – | – | (171287) | (171287) |
| **Balances - August 31, 2021** | 2500000 | $2500 | – | $– | 7850372839 | $2543815 | $(2936272) | $(389957) |
| **Balances - May 31, 2022** | 2500000 | $2500 |  | $– | 8612998299 | $3286605 | $(3650156) | $(361051) |
| &nbsp;&nbsp;Sales of common stock |  |  |  |  | 150000000 | 95000 |  | 95000 |
| &nbsp;&nbsp;Subscription receivable |  |  |  |  |  | (20000) |  | (20000) |
| &nbsp;&nbsp;Change in par value of common stock |  | (2500) |  |  |  | 2500 |  |  |
| &nbsp;&nbsp;Exchange of Series B Preferred |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Stock for common stock |  |  | 1000 |  | (595467205) |  |  |  |
| &nbsp;&nbsp;Net loss for the quarter | – | – |  |  |  |  | (211123) | (211123) |
| **Balances - August 31, 2022** | 2500000 | $– | 1000 | $– | 8167531094 | $3364105 | $(3861279) | $(497174) |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**Notes to Consolidated Financial Statements**

**August 31, 2022**

**Note 1 – Organization and Business**

**Organization and Operations**

China Infrastructure Construction Corp., a Colorado corporation (the "Company"), was formed on February 28, 2003, as a limited liability company under the name Fidelity Aircraft Partners LLC. On December 16, 2009, it converted to a corporation under the name Fidelity Aviation Corporation, and on August 24, 2009, it changed its name to China Infrastructure Construction Corp. On February 28, 2018, the Company changed its name to Hippocrates Direct Healthcare, Inc.; on July 4, 2018, it resumed its present name. The Company provides educational systems focused on medical cannabis in cities throughout the United States and six countries in Latin America. The Company provides services in therapeutic areas of clinical trials and services relating to sleep disorders through its sleep center in Houston, Texas. The Company offered concierge medicine at an affordable price through a membership-based model through its wholly owned subsidiary, Hippocrates Direct Healthcare, LLC, a Texas limited liability company, formed on September 11, 2017; this business was discontinued during the quarter ended August 31, 2020. The Company has one subsidiary, Alpha Fertility and Sleep Center, LLC, a Texas limited liability company, through which is conducts its Sleep Center business.

**Note 2 – Summary of Significant Accounting Policies**

**Accounting Principles**

The accompanying unaudited consolidated financial statements have been prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial statements. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. In the opinion of the Company's management, the accompanying unaudited consolidated financial statements contain all the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of August 31, 2022, and the results of operations and cash flows for the periods presented. The results of operations for the three months ended August 31, 2022, are not necessarily indicative of the operating results for the full fiscal year or for any future period. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company's audited financial statements for the fiscal year ended May 31, 2022.

**Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. Certain of these estimates could be affected by external conditions, including those unique to the Company's businesses, and general economic conditions. These external conditions could have an effect on the Company's estimates that could cause actual results to differ materially from its estimates. Actual results could differ from those estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Significant estimates relied upon in preparing these statements include revenue recognition, accounts receivable reserves, accrued expenses, share-based compensation and the recoverability of the Company's net deferred tax assets and any related valuation allowance.

**Principles of Consolidation**

The unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

**Reclassification**

Certain amounts in the prior consolidated financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no impact on the results of operations, changes in equity, or cash flows.

**Cash and Cash Equivalents**

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less at the date acquired. The Company had $188 and $300 of investment securities that were deemed cash equivalents at August 31, 2022, or May 31, 2022, respectively.

**Accounts Receivable**

Included in accounts receivable on the balance sheets are amounts primarily related to customers. The Company estimates losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written off when it is probable that all contractual payments due will not be collected in accordance with the terms of the related agreement. Based on experience and the judgment of management, there was no allowance for doubtful accounts at August 31, 2022, and May 31, 2022.

**Revenue Recognition**

The Company follows the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. This standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that it expects to receive for them.

Under ASU No. 2014-09, the Company recognizes revenue when a customer obtains control of promised goods or services, or when they are shipped to a customer, in an amount that reflects the consideration that it expects to receive in exchange for them. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (a) it identifies a contract with a customer; (b) it identifies the performance obligations in the contract; (c) it determines the transaction price; (d) it allocates the transaction price to the performance obligations in the contract; and (e) it recognizes revenues when (or as) it satisfies its performance obligation.

The Company has the ability to generate revenue from multiple streams, namely clinical trials, consulting fees, seminars and merchandise sales. Revenues from product sales are recognized when a customer obtains control of the Company's product, which occurs at a point in time or overtime, typically upon shipment to the customer or when services are fulfilled, and the customers receive benefit from such services. Revenue is deferred and a liability is established to the extent the Company receives payments from customers in advance of goods being shipped or services being rendered. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have been recognized is one year or less or the amount is immaterial.

A performance obligation is a contractual promise to transfer a distinct product or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Each contract has a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Revenue from contracts that satisfy the criteria for overtime recognition is recognized as the work progresses. The majority of our revenue is derived from services provided to customers and is executed typically over a period that is typically between 1 to 12 months. Our contracts will continue to be recognized over time because of the continuous transfer of control to the customer as services are rendered to customers. Payments made by customers in advance of services being rendered are recorded as deferred revenue. Contract modification sometimes occurs in our clinical trials business. Contracts are modified to account for changes in the contract specifications or requirements.

**Share-Based Payments**

ASC 718, "*Compensation – Stock Compensation,*" prescribes accounting and reporting standards for all share-based payment transactions. In June 2018, FASB issued ASU No. 2018-07, *Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,* which aligns accounting for share-based payments issued to non-employees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for share-based payments to non-employees under Subtopic 505-50, *Equity – Equity-Based Payments to Non-Employees.* This guidance became effective for the Company on January 1, 2019. Based on its completed analysis, the Company has determined that adopting this guidance will not have a material impact on its financial statements. The Company follows FASB guidance related to equity-based payments, which requires that equity-based compensation be accounted for using a fair value method and recognized as expense in the accompanying statements of operations. Equity-based compensation expense will be recognized as compensation expense.

**Leases**

The Company has adopted ASU 2016-02, *Leases (Topic 842),* along with related clarifications and improvements, under which lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the historical accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures are also required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases.

**Cash Flows**

The Company follows ASU 2016-18, "*Statement of Cash Flows (Topic 230),*" requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The provisions of this guidance are to be applied using a retrospective approach, which requires application of the guidance for all periods presented.

**Fair Value Measurements**

The Company has adopted ASC Topic 820, *Fair Value Measurements,* which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair-value measurements.

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, is carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of the Company's short- and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features, such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

ASC Topic 820 defines fair value 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. ASC Topic 820 also establishes a fair-value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair value:

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

Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3: Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

**Income Taxes**

The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, *"Income Taxes"* ("ASC 740"). This codification prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and for carryforward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting or according to the expected reversal dates of the specific temporary differences, if not related to an asset or liability for financial reporting.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740, which provides guidance as to the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in its unaudited financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

The tax benefits recognized in unaudited financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accordingly, the Company would report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company elects to recognize any interest and penalties, if any, related to unrecognized tax benefits in tax expense.

**Loss per Share**

The Company computes basic earnings per share amounts in accordance with Accounting Standards Codification Topic 260, *"Earnings per Share."* Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. As of August 31, 2022, and August 31, 2021, the Company had no dilutive securities.

**Recently Issued Accounting Standards**

The Company does not believe there are any other recently issued, but not yet effective, accounting standards that would have a significant impact on the Company's financial position or results of operations.

**Note 3 – Going Concern**

The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which contemplate the Company's continuation as a going concern in accordance with ASC 240-40-50. The Company's history of recurring losses, negative working capital and negative cash flows from operating activities raises substantial doubt about its ability to continue as a going concern. The Company has not generated any profits since inception and its current cash balances will not meet its working capital needs. During the quarter ended August 31, 2022, the Company had a net loss from operations of $211,123, net cash used in operations of $215,063, working capital deficit of $309,752 and an accumulated deficit of $3,861,280.

The ability of the Company to continue as a going concern depends on the successful execution of its operating plan, which includes expanding its operations and raising either debt or equity financing. There is no assurance that the Company will be able to expand its operations or obtain such financing on satisfactory terms or at all. If the Company is unsuccessful in these endeavors, it may be required to curtail or cease its operations.

The accompanying unaudited financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

**Note 4 – Debt**

**PPP Loans**

During 2021 and 2020, the Company received multiple loans under the Payroll Protection Program ("PPP"). The PPP was established during 2020 as part of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") to provide loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. As of August 31, 2022, and May 31, 2022, one of the PPP loans, in the principal amount of $88,631, was recorded in current liabilities. As of May 31, 2022, another PPP loan, in the principal amount of $41,666, was recorded in current liabilities. On June 22, 2022, pursuant to the provisions of the CARES Act, an application for loan forgiveness of this PPP loan for its principal amount and the interest accrued thereon was approved in full. The forgiven amount is recorded as other revenue in the Company's statements of operations.

**EIDL Loan**

In May 2020, the Company received $143,100 from the Small Business Administration as an Economic Injury Disaster Loan ("EIDL") to help fund its operations during the Covid-19 pandemic. The loan bears interest at the rate of 3.75% per annum and is payable in monthly installments of $698 over a 30-year period, with deferral of payments for the first 12 months. An additional $10,000 borrowed under EIDL, which was provided for payroll, was forgiven and recorded as Other Income.

In June 2020, the Company received proceeds of $106,300 from the Small Business Administration through a second EIDL loan to help fund its operations during the Covid-19 pandemic. The loan bears interest at the rate of 3.75% per annum and is payable in monthly installments of $518 over a 30-year period. An additional $4,000 under EIDL, which was provided for payroll was forgiven and recorded as Other Income.

The Company's EIDL loans were recorded in the balance sheet as follows:

---

| | | |
|:---|:---|:---|
|  | **August 31, 2022** | **May 31, 2022** |
| SBA (EIDL) current portion | $10426 | $5561 |
| SBA (EIDL) noncurrent portion | 238874 | 243739 |
|  | $249300 | $249300 |

---

**<u>Line of Credit</u>**

On November 16, 2020, the Company received proceeds of $15,000 under a line of credit provided by an unrelated party with a limit of $15,000. Borrowings under the line of credit bear interest at the rate of 4.17% per month. There were balances of $14,542 and $0 outstanding at August 31, 2022, and May 31, 2022, respectively.

**<u>Short-Term Loans</u>**

During May 2022, the Company sold $63,250 of its future receivables to an unrelated party for $50,000. The terms of this sale require the Company to deliver receivables at the rate of $1,218 per week for one year. As of August 31, 2022, and May 31, 2022, the outstanding balances totaled $36,296 and $48,074, respectively.

On January 14, 2021, the Company entered into a financing agreement for the sale of future receipts with an unrelated party for total future receipts of $32,850 for a purchase price of $22,500. The weekly payment for this loan is $1,027. This loan was repaid on May 4, 2021.

On December 10, 2020, the Company entered into a cash advance agreement with an unrelated party for the sale of $63,900 of receivables for a purchase price of $45,000. The weekly payment for this loan was $1,997. This loan was repaid on May 4, 2021.

On June 29, 2022, the Company borrowed $12,500 from an unrelated party at an annual interest rate of 14%.

On August 3, 2022, the Company borrowed $15,000 from an unrelated party at an annual interest rate of 42.5%.

On August 8, 2022, the Company sold $61,155 of its future receivables to an unrelated party for $45,000 (the "080822 Receivables Sale"). The terms of this sale require the Company to deliver receivables at the rate of $3,057 per week for 20 weeks.

**Note 5 – Right-of-Use Assets and Lease Liabilities**

The Company leases real property from unrelated parties under leases that are classified as operating leases. The right-of-use assets for operating leases are included in right-of-use assets on the balance sheets, with the corresponding lease liability in liabilities. Lease expense is recognized on a straight-line basis over the lease term. Renewals and terminations are included in the calculation of right-of-use assets and lease liabilities when they are considered reasonably certain to be exercised. When the implicit rate is unknown, the incremental borrowing rate, based on the commencement date, is used in determining the present value of lease payments.

The following amounts related to leases were recorded in the balance sheets:

---

| | | |
|:---|:---|:---|
|  | **August 21, 2022** | **May 31, 2022** |
| Right of use asset | $54417 | $63213 |
| Less: Accumulated amortization | (2967) | (2915) |
| Right of use asset, net | $51450 | $60298 |
| Lease liabilities – current | $37200 | $44054 |
| Lease liabilities – noncurrent | – | 3804 |
|  | $37200 | $47858 |

---

The Company reimburses for an office space operating lease under a month-to-month arrangement, payable at the discretion of management. The Company's total operating lease expense was $18,246 and $25,038 during the quarters ended August 31, 2022, and August 31, 2021, respectively. See Note 10 for additional lease information.

**Note 6 -- Revenue**

Most of the Company's revenue is generated by the performance of services to customers and recognized at a point in time based on the evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract are satisfied, net of certain taxes and gain/loss resulting from changes in foreign currency. Revenue is recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple products and/or service elements.

The table below summarizes the Company's disaggregated revenue information:

---

| | | |
|:---|:---|:---|
|  | **Quarter Ended August 31,** | **Quarter Ended August 31,** |
|  | **2022** | **2021** |
| Clinical trials | $119246 | $82916 |
| Consulting fees |  |  |
| Franchise fees |  |  |
| Seminar fees | 9915 | 1760 |
| Royalty |  |  |
| Merchandise | 8921 | – |
| Total revenue | $138082 | $84676 |

---

**Cost of Revenue**

Cost of revenue consists of third-party costs associated with the patient stipend, sleep study fees and audio/video fees. As of August 31, 2022, and August 31, 2021, cost of revenue totaled $46,234 and $14,309, respectively.

**Note 7 – Stockholders' Deficit** 

The Company is authorized to issue 20,010,000,000 of capital stock, of which 20,000,000,000 shares are common stock, without par value, and 10,000,000 are preferred stock.

**Preferred Stock** 

The Company has designated 2,500,000 shares of preferred stock as Series A Convertible Preferred Stock (the "Series A Stock"). Until July 20, 2022, each share had a par value of $0.001; on that date, the Company amended its articles of incorporation to provide that each such share has no par value. Under this amendment, (i) Series A Stock is entitled to receive dividends on the shares of Common Stock into which such shares are convertible, (ii) has the voting power of the number of shares of Common Stock into which such shares are convertible, (iii) is redeemable at the option of the Company for a redemption price equal to the number of shares of Common Stock into which the redeemed shares are convertible and (iv) are senior to the Common Stock and junior to the Series B Convertible Preferred Stock described below.

On July 20, 2022, the Company designated a series of preferred stock, named Series B Preferred Convertible Preferred Stock, comprising 1,000 shares ("Series B Preferred"). The shares of this series have no par value, are not entitled to dividends, have no liquidation rights, are not redeemable, are not convertible, have 60% of the Company's voting power and rank senior to the Common Stock and Series A Convertible Preferred Stock. The 1,000 preferred shares were issued in exchange for common stock to an existing common shareholder. The Company has deemed the value of the preferred and common shares to be the same, resulting in no change to additional paid capital.

**Common Stock** 

**Issuances and Surrenders**

On December 22, 2020, an officer surrendered to the Company 279,532,795 shares of Common Stock that had been erroneously issued to him.

During the year May 31, 2022, the Company sold 798,760,199 shares of Common Stock for $825,290 and during the year ended May 31, 2021, and during the year ended May 31, 2020, the Company sold 117,797,617 shares of Common Stock for $183,868.

During the year ended May 31, 2022, the Company issued 20,000,000 shares of Common Stock for services rendered; these shares had a market value of $12,000 on the date of their issuance.

On December 23, 2020, an officer of the Company sold 1,000,000,000 shares of Common Stock to the Company for $1,000, reducing ownership of the Company's equity to 500,000,000 shares of Common Stock and 500,000 shares of Series A Preferred.

On March 11, 2022, the Company issued 55,000,000 shares of Common Stock to an unrelated party. On that date, it also agreed to issue 11,250,000 shares of Common Stock to another unrelated party upon completion of certain services; these shares were issued on September 30, 2022.

On June 26, 2022, the Company issued 125,000,000 shares of Common Stock to an unrelated party for $75,000.

On August 10, 2022, the Company issued 1,000 shares of Series B Preferred to one of its officers in exchange for his surrender of 595,467,205 shares of Common Stock resulting in no change to additional paid in capital.

During the quarter ended August 31, 2022, the Company sold 125,000,000 shares of Common Stock for $75,000 and during the quarter ended August 31, 2021, the Company sold 36,134,739 shares of Common Stock for $82,500.

As of August 31, 2022, and August 31, 2021, there were respectively 8,167,531,094 and 7,850,372,839 shares of Common Stock issued and outstanding.

**Note 8 – Share-Based Compensation** 

During the quarters ended August 31, 2022, and August 31, 2021, the Company issued no shares of Common Stock to its employees as additional compensation.

On July 20, 2022, the Company adopted its 2022 Equity Incentive Plan, which provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units and performance awards to directors, officers, employees and consultants, as determined by the Board, as plan administrator. The Company will recognize as share-based compensation expense all share-based payments to employees over the requisite service period (generally the vesting period) in its statements of income based on the fair values of the awards that are issued.

**Note 9 – Income Taxes**

The Company provides for income taxes under ASC 740. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the "Tax Act") was enacted into law, making significant changes to the Code. These changes included a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as re-measuring its U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. The Tax Act did not give rise to any material impact on the balance sheets and statements of operations due to the Company's historical worldwide loss position and the full valuation allowance on its net U.S. deferred tax assets.

**Note 10 – Commitments and Contingencies**

The Company leases premises of approximately 4,500 square feet located at 6201 Bonhomme Road, Suites 460S and 466S, Houston, Texas. The lease currently provides for the base rent of $3,381.96 per month, increasing to (i) $3,529.00 per month on July 1, 2020, (ii) $3,676.04 per month on July 1, 2021, and (iii) $3,823.08 per month on July 1, 2022, subject to CPI increase. For information regarding the recording of the right-of-use asset and the lease liability in the balance sheets in respect of this lease, see Note 5.

Two of the Company's officers leased 1,400 square feet in Houston, Texas (the "Officers' Leased Property"), under a lease, the term of which commenced on February 29, 2020, and expired on March 14, 2022, at a rent of $3,449 per month. These officers made a portion of these premises available to the Company for use as office space on a month-to-month basis, for which the Company paid them $2,817 per month. On March 15, 2022, these officers entered into a new lease for the same premises, which expires on September 14, 2022, at a rent of $3,008 per month, and these officers continued to make a portion of these premises available to the Company for use as office space, for which the Company is paying them $2,817 per month on a month-to-month basis.

**Note 11 – Related Party Transactions**

See Note 7 – Issuance and Surrenders for information respecting the Company's purchase of Common Stock from one of its officers and Note 10 for information respecting the lease of real property to the Company by two of its officers. During the year ended May 31, 2021, the Company advanced $15,000 to one of its stockholders, of which $12,000 remains outstanding. The Company also had related party liabilities outstanding to certain shareholders totaling $76,192 and $1,955 as of August 31, 2022, and August 31, 2021, respectively.

**Note 12 – Off-Balance-Sheet Arrangements**

The Company has no off-balance sheet arrangements.

**Note 13 – Concentration of Risk**

The Company has revenue, net of taxes and foreign currency gain/loss of $211,123 and $761,737 for the quarters ended August 31, 2022, and August 31, 2021, respectively.

The Company had three customers that provided 85% of revenue for the quarter ended August 31, 2022, and five customers that provided 87% of revenue for the quarter ended August 31, 2021.

**Note 14 – Subsequent Events**

During the years ended May 31, 2022, and May 31, 2021, and during the quarter ended August 31, 2022, the COVID-19 pandemic had a material adverse effect on the Company's educational business because governmental measures that we imposed to control it resulted in the closing of classrooms and other educational venues, and also hindered the Company's franchising and consulting activities. As the pandemic has abated, some of these restrictions have been removed and the Company is beginning to resume normal operations. If the pandemic does not continue to abate, because of infections resulting from emerging virus variants or for other reasons, restrictions could be reimposed or increased. The ultimate impact of the pandemic will depend on future developments, which are highly uncertain and cannot be predicted.

On September 2, 2022, the Company issued 16,888,889 shares of Common Stock to an unrelated party in consideration of $12,667.

On September 3, 2022, the Company issued 37,500,000 shares of Common Stock to an unrelated party in consideration of $30,000.

On September 15, 2022, the officers that leased the Officers' Leased Property entered into a new lease for the same premises, which expires on March 14, 2023, at a rent of $3,038 per month, and these officers continued to make a portion of these premises available to the Company for use as office space, for which the Company is paying them $2,817 per month.

On September 30, 2022, 11,250,000 shares of Common Stock were issued to an unrelated party in consideration of services rendered.

On October 17, 2022, 625,000,000 shares were issued to an unrelated party in consideration of $250,000.

On December 1, 2022, 4,000,000 shares were issued to an unrelated party in consideration of $2,000.

On December 6, 2022, the Company changed its corporate name to Cannabis Bioscience International Holdings, Inc.

On December 9, 2022, 20,000,000 shares were issued to an unrelated party in consideration of $10,000.

On December 12, 2022, 22,222,222 shares were issued to an unrelated party in consideration of $10,000.

On December 20, 2022, the Company sold $103,284 of its future receivables for $76,000 to the unrelated party to which it made 080822 Receivables Sale. At that time, the Company had $36,000 of the obligations under the 080822 Receivables Sale, which were satisfied by applying the proceeds of the new sale thereto.

On January 9, 2023, the Company sold 116,000,000 shares of Common Stock to two unrelated parties in consideration of $29,800.

On January 10, 2023, the company sold 38,000,000 shares of Common Stock to an unrelated party in consideration of $19,000.

Management has evaluated all other subsequent events when these unaudited financial statements were issued and has determined that none of them requires disclosure herein.

![](image_001.jpg)

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Board of Directors and

Stockholders of China Infrastructure Construction Corp.

**Opinion on the Financial Statements**

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

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

As discussed in Note 3 to the financial statements, the Company's recurring losses from operations, working capital deficit, negative cash flows from operating activities, and its need for additional financing in order to fund its projected loss in 2022 raise substantial doubt about its ability to continue as a going concern. These 2022 and 2021 financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Going Concern**

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company had negative working capital at May 31, 2022, has incurred recurring losses and recurring negative cash flow from operating activities, and has an accumulated deficit which raises substantial doubt about its ability to continue as a going concern. Management's plans concerning these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Critical Audit Matters**

Critical audit matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there were no critical audit matters.

/s/ PWR CPA, LLP

Houston, Texas

PCAOB #6686

We have served as the Company's auditor since 2021.

November 28, 2022

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2022** | **2021** |
| **ASSETS** |  |  |
| **CURRENT ASSETS:** |  |  |
| Cash and cash equivalents | $31982 | $41322 |
| Accounts receivable | 5614 | 1295 |
| Related party receivables | 12000 | 12000 |
| **TOTAL CURRENT ASSETS** | 49596 | 54617 |
| Right-of-use asset | 60298 | 94172 |
| **TOTAL ASSETS** | $109894 | $148789 |
| **LIABILITIES AND STOCKHOLDERS' DEFICIT** |  |  |
| **CURRENT LIABILITIES:** |  |  |
| Accounts payables and accrued expenses | $68210 | $16346 |
| Related party payables | 15838 | 10808 |
| Short term loan | 48074 |  |
| SBA loan | 5561 | 27731 |
| PPP loan | 41666 | 88631 |
| Lease liabilities - current | 44054 | 43963 |
| **TOTAL CURRENT LIABILITIES** | 223403 | 187479 |
| **LONG-TERM LIABILITIES:** |  |  |
| SBA loan - noncurrent | 243738 | 221569 |
| Lease liabilities - noncurrent | 3804 | 40911 |
| **TOTAL LONG-TERM LIABILITIES** | 470945 | 449959 |
| **TOTAL LIABILITIES** |  |  |
| **STOCKHOLDERS' DEFICIT** |  |  |
| Series A Convertible Preferred Stock, par value $0.001 per share: |  |  |
| &nbsp;&nbsp;&nbsp;10,000,000 shares authorized; 2,500,000 shares issued and outstanding at May 31, 2022, and May 31, 2021 | 2500 | 2500 |
| &nbsp;&nbsp;&nbsp;Common Stock, without par value, 20,000,000,000 shares authorized 8,737,998,299 and 7,814,238,100 shares issued and outstanding at May 31, 2022, and May 31, 2021 |  |  |
| Additional paid-in capital | 3286605 | 2461315 |
| Accumulated deficit | (3650156) | (2764985) |
| **TOTAL STOCKHOLDERS' DEFICIT** | (363551) | (303670) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT** | $109894 | $148789 |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF OPERATION**

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2022** | **2021** |
| **Revenues** | $214980 | $761737 |
| **Cost of Revenues** | 46763 | – |
| **Gross profit** | 168217 | 761737 |
| **Cost and expenses** |  |  |
| &nbsp;&nbsp;&nbsp;General and administrative | 134351 | 100281 |
| &nbsp;&nbsp;&nbsp;Contract labor | 544760 | 263138 |
| &nbsp;&nbsp;&nbsp;Professional fees | 222535 | 198496 |
| &nbsp;&nbsp;&nbsp;Officer compensation | 70983 | 211312 |
| &nbsp;&nbsp;&nbsp;Rent and lease | 75226 | 72244 |
| &nbsp;&nbsp;&nbsp;Travel | 8420 | 31230 |
| &nbsp;&nbsp;&nbsp;Interest | 51036 | 44344 |
| **Total operating expenses** | 1107311 | 921045 |
| **Operating loss** | (939094) | (159308) |
| **Other income** | 53923 | – |
| **Net loss before taxes** | (885171) | (159308) |
| **Income tax provision** | – | – |
| **Net loss** | $(885171) | $(159308) |
| Average common stock outstanding | 8090501599 | 8246111316 |
| Average loss per share | (0.00011) | (0.00002) |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2022** | **2021** |
| **OPERATING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(885171) | $(159308) |
| &nbsp;&nbsp;&nbsp;Amortization of right-of-use asset and liability | 33874 | 3644 |
| &nbsp;&nbsp;&nbsp;Forgiveness of loan | (31965) |  |
| &nbsp;&nbsp;&nbsp;Adjustment to reconcile net income |  |  |
| &nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (4319) | (795) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses | 51864 | (77360) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues |  | (268469) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party accounts receivable | 5030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party payables |  | (5417) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability | (37017) | – |
| **NET CASH USED IN OPERATIONS** | (867704) | (507705) |
| **FINANCING ACTIVITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sales of common stock | 825290 | 261000 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock |  | (1000) |
| &nbsp;&nbsp;&nbsp;Payments of short term loan | (15000) | (1709) |
| &nbsp;&nbsp;&nbsp;Proceeds from short term loan | 48074 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from PPP loans |  | 56881 |
| &nbsp;&nbsp;&nbsp;Proceeds from SBA loan |  | 106200 |
| &nbsp;&nbsp;&nbsp;Repayment of loans of acquired subsidiary |  |  |
| &nbsp;&nbsp;&nbsp;Non cash loan settlement | – | – |
| **NET CASH PROVIDED BY FINANCING ACTIVITIES** | 858364 | 421372 |
| **NET DECREASE IN CASH** | (9340) | (86333) |
| **CASH AT BEGINNING OF PERIOD** | 41322 | 127655 |
| **CASH AT END OF PERIOD** | $31982 | $41322 |
| *Supplemental disclosure of cash flow information:* |  |  |
| &nbsp;&nbsp;&nbsp;*Cash paid for interest* | $3104 | $30236 |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Series A Convertible Preferred Stock** | **Series A Convertible Preferred Stock** | **Common Stock** | **Common Stock** | | | |
|  | **Shares** | **Amount** | **Shares** | **Amount** | **Additional Paid-In**<br>**Capital** | **Accumulated**<br>**Deficit** |<br>**Total** |
| **Balances - May 31, 2020** | 2500000 | $2500 | 8715256416 | $– | $2189365 | $(2605677) | $(413812) |
| &nbsp;&nbsp;&nbsp;Sales of common stock |  |  | 98981684 |  | 272950 |  | 272950 |
| &nbsp;&nbsp;&nbsp;Repurchase of common stock |  |  | (1000000000) |  | (1000) |  | (1000) |
| &nbsp;&nbsp;&nbsp;Net loss | – | – | – | – | – | (159308) | (159308) |
| **Balances - May 31, 2021** | 2500000 | $2500 | 7814238100 | $– | $2461315 | $(2764985) | $(301170) |
| &nbsp;&nbsp;&nbsp;Sales of common stock |  |  | 798760199 |  | 825290 |  | 825290 |
| &nbsp;&nbsp;&nbsp;Net loss | – | – | – | – | – | (885171) | (885171) |
| **Balances - May 31, 2022** | 2500000 | $2500 | 8612998299 | $– | $3286605 | $(3650156) | $(361051) |

---

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

**CHINA INFRASTRUCTURE CONSTRUCTION CORP.**

**Notes to Consolidated Financial Statements**

**May 31, 2022** 

**Note 1 – Organization and Business**

**Organization and Operations**

China Infrastructure Construction Corp., a Colorado corporation (the "Company"), was formed on February 28, 2003, as a limited liability company under the name Fidelity Aircraft Partners LLC. On December 16, 2009, it converted to a corporation under the name Fidelity Aviation Corporation, and on August 24, 2009, it changed its name to China Infrastructure Construction Corp. On February 28, 2018, the Company changed its name to Hippocrates Direct Healthcare, Inc.; on July 4, 2018, it resumed its present name. The Company provides educational systems focused on medical cannabis in cities throughout the United States and six countries in Latin America. The Company provides services in therapeutic areas of clinical trials and services relating to sleep disorders through its sleep center in Houston, Texas. The Company offered concierge medicine at an affordable price through a membership-based model through its wholly owned subsidiary, Hippocrates Direct Healthcare, LLC, a Texas limited liability company, formed on September 11, 2017; this business was discontinued during the quarter ended August 31, 2020. The Company has one subsidiary, Alpha Fertility and Sleep Center, LLC, through which it conducts its Sleep Center business.

**Note 2 – Summary of Significant Accounting Policies**

**Accounting Principles**

The financial statements and notes thereto have been prepared by management using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP").

**Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. Certain of these estimates could be affected by external conditions, including those unique to the Company's businesses, and general economic conditions. These external conditions could have an effect on the Company's estimates that could cause actual results to differ materially from its estimates. Actual results could differ from those estimates. The Company re-evaluates all of its accounting estimates at least quarterly based on these conditions and records adjustments when necessary.

Significant estimates relied upon in preparing these statements include revenue recognition, accounts receivable reserves, accrued expenses, share-based compensation and the recoverability of the Company's net deferred tax assets and any related valuation allowance.

**Principles of Consolidation**

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

**Reclassification**

Certain amounts in the prior consolidated financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no impact on the results of operations, changes in equity, or cash flows.

**Cash and Cash Equivalents**

Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less at the date acquired. The Company had $300 and $0 of investment securities that were deemed cash equivalents at May 31, 2022, or May 31, 2021, respectively.

**Accounts Receivable**

Included in accounts receivable on the balance sheets are amounts primarily related to customers. The Company estimates losses on receivables based on known troubled accounts and historical experience of losses incurred. Receivables are considered impaired and written off when it is probable that all contractual payments due will not be collected in accordance with the terms of the related agreement. Based on experience and the judgment of management, there was no allowance for doubtful accounts at May 31, 2022, and May 31, 2021.

**Revenue Recognition**

The Company follows the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as amended. This standard requires a company to recognize revenues when it transfers goods or services to customers in an amount that reflects the consideration that it expects to receive for them.

Under ASU No. 2014-09, the Company recognizes revenue when a customer obtains control of promised goods or services, or when they are shipped to a customer, in an amount that reflects the consideration that it expects to receive in exchange for them. The Company recognizes revenues following the five-step model prescribed under ASU No. 2014-09: (a) it identifies a contract with a customer; (b) it identifies the performance obligations in the contract; (c) it determines the transaction price; (d) it allocates the transaction price to the performance obligations in the contract; and (e) it recognizes revenues when (or as) it satisfies its performance obligation.

The Company has the ability to generate revenue from multiple streams, namely clinical trials, consulting fees, seminars and merchandise sales. Revenues from product sales are recognized when a customer obtains control of the Company's product, which occurs at a point in time or overtime, typically upon shipment to the customer or when services are fulfilled, and the customers receive benefit from such services. Revenue is deferred and a liability is established to the extent the Company receives payments from customers in advance of goods being shipped or services being rendered. The Company expenses incremental costs of obtaining a contract as and when incurred if the expected amortization period of the asset that it would have been recognized is one year or less or the amount is immaterial.

A performance obligation is a contractual promise to transfer a distinct product or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Each contract has a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Revenue from contracts that satisfy the criteria for overtime recognition is recognized as the work progresses. The majority of our revenue is derived from services provided to customers and is executed typically over a period that is typically between 1 to 12 months. Our contracts will continue to be recognized over time because of the continuous transfer of control to the customer as services are rendered to customers. Payments made by customers in advance of services being rendered are recorded as deferred revenue. Contract modification sometimes occurs in our clinical trials business. Contracts are modified to account for changes in the contract specifications or requirements.

**Share-Based Payments**

ASC 718, "*Compensation – Stock Compensation,*" prescribes accounting and reporting standards for all share-based payment transactions. In June 2018, FASB issued ASU No. 2018-07, *Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,* which aligns accounting for share-based payments issued to non-employees to that of employees under the existing guidance of Topic 718, with certain exceptions. This update supersedes previous guidance for share-based payments to non-employees under Subtopic 505-50, *Equity – Equity-Based Payments to Non-Employees.* This guidance became effective for the Company on January 1, 2019. Based on its completed analysis, the Company has determined that adopting this guidance will not have a material impact on its financial statements. The Company follows FASB guidance related to equity-based payments, which requires that equity-based compensation be accounted for using a fair value method and recognized as expense in the accompanying statements of operations. Equity-based compensation expense will be recognized as compensation expense.

**Leases**

The Company has adopted ASU 2016-02, *Leases (Topic 842),* along with related clarifications and improvements, under which lessees are required to recognize a lease liability, which represents the discounted obligation to make future minimum lease payments and a corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the historical accounting for lessors and does not make significant changes to the recognition, measurement, and presentation of expenses and cash flows by a lessee. Enhanced disclosures are also required to give financial statement users the ability to assess the amount, timing and uncertainty of cash flows arising from leases.

**Cash Flows**

The Company follows ASU 2016-18, "*Statement of Cash Flows (Topic 230),*" requiring that the statement of cash flows explain the change in the total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The provisions of this guidance are to be applied using a retrospective approach, which requires application of the guidance for all periods presented.

**Fair Value Measurements**

The Company has adopted ASC Topic 820, *Fair Value Measurements,* which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair-value measurements.

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, is carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of the Company's short- and long-term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features, such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

ASC Topic 820 defines fair value 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. ASC Topic 820 also establishes a fair-value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC Topic 820 describes three levels of inputs that may be used to measure fair value:

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

Level 2: Quoted prices for similar assets and liabilities in active markets or inputs that are observable.

Level 3: Inputs that are unobservable (for example, cash flow modeling inputs based on assumptions).

**Income Taxes**

The Company accounts for income taxes in accordance with Accounting Standards Codification No. 740, *"Income Taxes"* ("ASC 740"). This codification prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and for carryforward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized.

Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting or according to the expected reversal dates of the specific temporary differences, if not related to an asset or liability for financial reporting.

The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740, which provides guidance as to the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in its unaudited financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position.

The tax benefits recognized in unaudited financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accordingly, the Company would report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company elects to recognize any interest and penalties, if any, related to unrecognized tax benefits in tax expense.

**Loss per Share**

The Company computes basic earnings per share amounts in accordance with Accounting Standards Codification Topic 260, *"Earnings per Share."* Basic earnings per share is calculated by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the reporting period. Diluted loss per share is computed by dividing net loss by the weighted average number of shares of common stock, common stock equivalents and potentially dilutive securities outstanding during the period. At May 31, 2022, and May 31, 2021, the Company had no dilutive securities.

**Recently Issued Accounting Standards**

The Company does not believe there are any other recently issued, but not yet effective, accounting standards that would have a significant impact on the Company's financial position or results of operations.

**Note 3 – Going Concern**

The accompanying audited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), which contemplate the Company's continuation as a going concern in accordance with ASC 240-40-50. The Company's history of recurring losses, negative working capital and negative cash flows from operating activities raises substantial doubt about its ability to continue as a going concern. The Company has not generated any profits since inception and its current cash balances will not meet its working capital needs. During the year ended May 31, 2022, the Company had a net loss from operations of $885,171, net cash used in operations of $885,704, working capital deficit of $173,807 and an accumulated deficit of $3,650,156.

The ability of the Company to continue as a going concern depends on the successful execution of its operating plan, which includes expanding its operations and raising either debt or equity financing. There is no assurance that the Company will be able to expand its operations or obtain such financing on satisfactory terms or at all. If the Company is unsuccessful in these endeavors, it may be required to curtail or cease its operations.

The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

**Note 4 – Debt**

**PPP Loans**

During 2021 and 2020, the Company received multiple loans under the Payroll Protection Program ("PPP"). The PPP was established during 2020 as part of the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") to provide loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. At May 31, 2022, and May 31, 2021, the Company's PPP loans totaling $41,666 and $88,631, respectively, are recorded in current liabilities.

On April 21, 2021, pursuant to Section 1106 of the CARES Act, the Company applied for and received forgiveness for its PPP loan in the amount of $31,965. Loan forgiveness was recorded as Other Income during 2022.

**EIDL Loan**

In May 2020, the Company received $143,100 from the Small Business Administration as an Economic Injury Disaster Loan ("EIDL") to help fund its operations during the Covid-19 pandemic. The loan bears interest at the rate of 3.75% per annum and is payable in monthly installments of $698 over a 30-year period, with deferral of payments for the first 12 months. An additional $10,000 borrowed under EIDL, which was provided for payroll, was forgiven and recorded as Other Income during 2020.

In June 2020, the Company received proceeds of $106,300 from the Small Business Administration through a second EIDL loan to help fund its operations during the Covid-19 pandemic. The loan bears interest at the rate of 3.75% per annum and is payable in monthly installments of $518 over a 30-year period. An additional $4,000 under EIDL, which was provided for payroll was forgiven and recorded as Other Income during 2020.

The Company's EIDL loans were recorded in the balance sheet as follows:

---

| | | |
|:---|:---|:---|
|  | **May 31,** | **May 31,** |
|  | **2022** | **2021** |
| SBA (EIDL) current portion | $5561 | $88631 |
| SBA (EIDL) noncurrent portion | 243739 | 221669 |
|  | $249300 | $249300 |

---

**<u>Line of Credit</u>**

On November 16, 2020, the Company received proceeds of $15,000 under a line of credit provided by an unrelated party with a limit of $15,000. Borrowings under the line of credit bear interest at the rate of 4.17% per month. There we no balances outstanding at May 31, 2022, and May 31, 2021.

**<u>Short-Term Loans</u>**

During May 2022, the Company sold $63,250 of its future receivables to an unrelated party for $50,000. The terms of this sale require the Company to deliver receivables at the rate of $1,218 per week for one year. At May 31, 2022, and May 31, 2021, the outstanding balance totaled $48,074 and $0, respectively.

On January 14, 2021, the Company entered into a financing agreement for the sale of future receipts with an unrelated party for total future receipts of $32,850 for a purchase price of $22,500. The weekly payment for this loan is $1,027. This loan was repaid on May 4, 2021.

On December 10, 2020, the Company entered into a cash advance agreement with an unrelated party for the sale of $63,900 of receivables for a purchase price of $45,000. The weekly payment for this loan was $1,997. This loan was repaid on May 4, 2021.

**Note 5 – Right-of-Use Assets and Lease Liabilities**

The Company leases real property from unrelated parties under leases that are classified as operating leases. The right-of-use assets for operating leases are included in right-of-use assets on the balance sheets, with the corresponding lease liability in liabilities. Lease expense is recognized on a straight-line basis over the lease term. Renewals and terminations are included in the calculation of right-of-use assets and lease liabilities when they are considered reasonably certain to be exercised. When the implicit rate is unknown, the incremental borrowing rate, based on the commencement date, is used in determining the present value of lease payments.

The following amounts related to leases were recorded in the balance sheets:

---

| | | |
|:---|:---|:---|
|  | **May 31,** | **May 31,** |
|  | **2022** | **2021** |
| Right of use asset | $63213 | $96889 |
| Less: Accumulated amortization | (2915) | (2717) |
| Right of use asset, net | $60298 | $94172 |
| Lease liabilities – current | $44054 | $43963 |
| Lease liabilities – noncurrent | 3804 | 40911 |
|  | $47858 | $84874 |

---

The Company reimburses for an office space operating lease under a month-to-month arrangement, payable at the discretion of management.

The Company's total operating lease expense was $75,225 and $72,244 during the years ended May 31, 2022, and May 31, 2021, respectively. See Note 10 for additional lease information.

**Note 6 -- Revenue**

Most of the Company's revenue is generated by the performance of services to customers and recognized at a point in time based on the evaluation of when the customer obtains control of the products. Revenue is recognized when all performance obligations under the terms of a contract are satisfied, net of certain taxes and gain/loss resulting from changes in foreign currency. Revenue is recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of goods typically do not include multiple products and/or service elements.

The table below summarizes the Company's disaggregated revenue information:

---

| | | |
|:---|:---|:---|
|  | **Year Ended May 31,** | **Year Ended May 31,** |
|  | **2022** | **2021** |
| Clinical trials | $196637 | $706008 |
| Consulting fees |  | 17289 |
| Franchise fees |  |  |
| Seminar fees | 13985 | 38440 |
| Royalty | 1678 |  |
| Merchandise | 2680 | – |
| Total revenue | $214980 | $761737 |

---

**Cost of Revenue**

Cost of revenue consists of third-party costs associated with the patient stipend, sleep study fees and audio/video fees. At May 31, 2022, and May 31, 2021, cost of revenue totaled $46,763 and $108,311, respectively.

**Note 7 – Stockholders' Deficit** 

The Company is authorized to issue 20,010,000,000 of capital stock, of which 20,000,000,000 shares are common stock, without par value, and 10,000,000 are preferred stock.

**Preferred Stock** 

The Company has designated 2,500,000 shares of preferred stock as Series A Convertible Preferred Stock (the "Series A Stock"). Each share of Series A Stock entitles the holder to receive dividends at the rate determined by the Board. In the event of liquidation, such holders are entitled to be paid out of the assets of the Corporation available for distribution to its common stockholders, whether from capital, surplus or earnings, and before any payment is made in respect of the shares of Common Stock, an amount equal to the greater of: (i) the then-current market price of the Series A Stock, as detailed by OTC, or ten cents ($0.10) per share of Series A Stock, subject to adjustment for stock dividends, combinations, splits, recapitalizations and the like with respect to the Series A Stock, plus all accrued but unpaid dividends. Each share of Series A Stock is convertible, at the option of the holder, at any time one year after the date of issuance of such shares, into that number of shares of Common Stock that is equal to the quotient obtained by dividing the Series A Preference Price then in effect for each share of Series A Stock by the greater of: (i) ten cents ($0.10) per share, or (ii) seventy-five percent (75%) of the Market Price (as defined) of the Common Stock on the conversion date, subject to adjustment in certain events. Series A Stock is not redeemable. The Series A Stock possesses one-half of the voting power of the Company's stockholders. At May 31, 2022, and May 31, 2021, there were 2,500,000 shares of Series A Stock issued and outstanding.

**Common Stock** 

**Issuances and Surrenders**

On December 22, 2020, an officer surrendered to the Company 279,532,795 shares of Common Stock that had been erroneously issued to him.

During the year ended May 31, 2022, the Company sold 798,760,199 shares of Common Stock for $825,290, during the year ended May 31, 2021, and during the year ended May 31, 2020, the Company sold 117,797,617 shares of Common Stock for $183,868.

During the year ended May 31, 2022, the Company issued 20,000,000 shares of Common Stock for services rendered; these shares had a market value of $12,000 on the date of their issuance.

On December 23, 2020, an officer of the Company sold 1,000,000,000 shares of Common Stock to the Company for $1,000, reducing ownership of the Company's equity to 500,000,000 shares of Common Stock and 500,000 shares of Series A Preferred.

At May 31, 2022, and May 31, 2021, there were respectively 8,612,998,299 and 7,814,238,100 shares of Common Stock issued and outstanding.

**Note 8 – Share-Based Compensation** 

During the years ended May 31, 2022, and May 31, 2021, the Company issued no shares of Common Stock to its employees as additional compensation.

**Note 9 – Income Taxes**

The Company provides for income taxes under ASC 740. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the "Tax Act") was enacted into law, making significant changes to the Code. These changes included a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system and a one-time transition tax on the mandatory deemed repatriation of foreign earnings. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as re-measuring its U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. The Tax Act did not give rise to any material impact on the balance sheets and statements of operations due to the Company's historical worldwide loss position and the full valuation allowance on its net U.S. deferred tax assets. The reconciliation of taxes at the federal and state statutory rate to the Company's provision for income taxes for the years ended May 31, 2022, and May 31, 2021, was as follows:

---

| | |
|:---|:---|
| **May 31, 2022** | **May 31, 2022** |
| Income tax expense (benefit) at the statutory rate | $611045 |
| Valuation allowance | (611045) |
| Income tax expense per books | $– |
| **May 31, 2021** | **May 31, 2021** |
| Income tax expense (benefit) at the statutory rate | $(141571) |
| Valuation allowance | 141871 |
| Income tax expense per books | $– |

---

Due to changes in ownership provisions of the income tax laws of the United States of America, net operating loss carryforwards of approximately $2,909,738 and $2,729,253 at May 31, 2022, and May 31, 2021, respectively, for federal income tax reporting purposes are subject to annual limitations. When a change in ownership occurs, net operating loss carryforwards may be limited as to use in future years. They generally expire 20 years from when incurred.

Income taxes for 2017 to 2021 remain subject to examination.

**Note 10 – Commitments and Contingencies**

The Company leases premises of approximately 4,500 square feet located at 6201 Bonhomme Road, Suites 460S and 466S, Houston, Texas. The lease currently provides for the base rent of $3,381.96 per month, increasing to (i) $3,529.00 per month on July 1, 2020, (ii) $3,676.04 per month on July 1, 2021, and (iii) $3,823.08 per month on July 1, 2022, subject to CPI increase. For information regarding the recording of the right-of-use asset and the lease liability in the balance sheets in respect of this lease, see Note 5.

Two of the Company's officers leased 1,400 square feet in Houston, Texas (the "Officers' Leased Property"), under a lease, the term of which commenced on February 29, 2020, and expired on March 14, 2022, at a rent of $3,449 per month. These officers made a portion of these premises available to the Company for use as office space on a month-to-month basis, for which the Company paid them $2,817 per month. On March 15, 2022, these officers entered into a new lease for the same premises, which expires on September 14, 2022, at a rent of $3,008 per month, and these officers continued to make a portion of these premises available to the Company for use as office space, for which the Company is paying them $2,817 per month.

**Note 11 – Related Party Transactions**

See Note 7 – Issuance and Surrenders for information respecting the Company's purchase of Common Stock from one of its officers and Note 9 for information respecting the lease of real property to the Company by two of its officers. During the year ended May 31, 2021, the Company advanced $15,000 to one of its stockholders, of which $12,000 remains outstanding. The Company also has related party liabilities outstanding to certain shareholders totaling $15,838 and $1,455 at May 31, 2022, and May 31, 2021, respectively.

**Note 12 – Off-Balance-Sheet Arrangements**

The Company has no off-balance sheet arrangements.

**Note 13 – Concentration of Risk**

The Company has revenue, net of taxes and foreign currency gain/loss of $214,980 and $761,737 for the years ending May 31, 2022, and May 31, 2021, respectively.

The Company had three customers that provided 46% of gross revenue for the year ended May 31, 2022, and 11 customers that provided 70% of gross revenue for the year ended May 31, 2021.

**Note 14 – Subsequent Events**

During the years ended May 31, 2022, and May 31, 2021, the COVID-19 pandemic had a material adverse effect on the Company's educational business because governmental measures that we imposed to control it resulted in the closing of classrooms and other educational venues, and also hindered the Company's franchising and consulting activities. As the pandemic has abated, some of these restrictions have been removed and the Company is beginning to resume normal operations. If the pandemic does not continue to abate, because of infections resulting from emerging virus variants or for other reasons, restrictions could be reimposed or increased. The ultimate impact of the pandemic will depend on future developments, which are highly uncertain and cannot be predicted.

On March 11, 2022, the Company issued 55,000,000 shares of Common Stock to an unrelated party. On that date, it also agreed to issue 11,250,000 shares of Common Stock to another unrelated party upon completion of certain services; these shares were issued on September 30, 2022.

On June 22, 2022, pursuant to the provisions of the CARES Act, applications for loan forgiveness of loans on which the Company was obligated totaling $41,666 in principal amount, and the interest accrued thereon, were approved in full. The forgiven amount will be recorded as other revenue in the Company's statements of operations.

On June 26, 2022, the Company issued 125,000,000 shares of Common Stock to an unrelated party for $75,000.

On June 29, 2022, the Company borrowed $12,500 from an unrelated party at an annual interest rate of 14%.

On July 20, 2022, the Company filed amended and restated articles of incorporation with the Secretary of State of the State of Colorado. Among other things, the amended and restated articles of incorporation:

&nbsp;&nbsp;&nbsp;&nbsp;· Amended the terms of the Company's Series A Convertible Preferred Stock (i) to change the par value
of the shares of that series from $0.001 per share to no par value per share, (ii) to change the dividends to which such shares are entitled
to receive from an amount at the discretion of the Board to the dividend to be paid on the shares of Common Stock into which such shares
are convertible, (iii) to reduce the voting power of such shares from 50% of the Company's voting power to the voting power of the
number of shares of Common Stock into which such shares are convertible, (iv) to eliminate redemption at the option of the holder and
provide for redemption at the option of the Company for a redemption price of the number of shares of Common Stock into which the redeemed
shares are convertible and (v) to provide that such shares are senior to the Common Stock and junior to the Series B Convertible Preferred
Stock described below.

&nbsp;&nbsp;&nbsp;&nbsp;· Designated a series of preferred stock, named Series B Preferred Convertible Preferred Stock, comprising
1,000 shares ("Series B Preferred"). The shares of this series have no par value, are not entitled to dividends, have no liquidation
rights, are not redeemable, are not convertible, have 60% of the Company's voting power and rank senior to the Common Stock and
Series A Convertible Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;· Eliminated the personal liability of directors to the Company or its stockholders for monetary damages
for breach of their fiduciary duties as such to the full extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;· Provided that the Company indemnify, to the full extent permitted by law, any person who is or was a director
or officer of the Company and may indemnify any other person against any claim, liability or expense arising against or incurred by such
person made a party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Company or because he
is or was serving another entity as a director, officer, partner, trustee, employee, fiduciary or agent at the Company's request.

Also, on July 20, 2022, the Company adopted its 2022 Equity Incentive Plan, which provides for the grant of incentive and non-statutory stock options, stock appreciation rights, restricted stock, unrestricted stock, restricted stock units and performance awards to directors, officers, employees and consultants, as determined by the Board, as plan administrator. The Company will recognize as share-based compensation expense all share-based payments to employees over the requisite service period (generally the vesting period) in its statements of income based on the fair values of the awards that are issued.

On August 3, 2022, the Company borrowed $15,000 from an unrelated party at an annual interest rate of 42.5%.

On August 8, 2022, the Company sold $61,155 of its future receivables to an unrelated party for $45,000. The terms of this sale require the Company to deliver receivables at the rate of $3,057 per week for 20 weeks.

On August 10, 2022, the Company issued 1,000 shares of Series B Preferred to one of its officers in exchange for his surrender of 595,467,205 shares of Common Stock.

On September 7, 2022, the Company issued 62,500,000 shares of Common Stock and 16,888,889 shares of Common Stock to two unrelated parties in consideration of $50,000 and $12,667, respectively.

On September 15, 2022, the officers that leased the Officers' Leased Property entered into a new lease for the same premises, which expires on March 14, 2023, at a rent of $3,038 per month, and these officers continued to make a portion of these premises available to the Company for use as office space, for which the Company is paying them $2,817 per month.

On October 17, 2022, the Company issued 625,000,000 shares of Common Stock to an unrelated party in consideration of $250,000.

Management has evaluated all other subsequent events when these financial statements were issued and has determined that none of them requires disclosure herein.

**PART II — INFORMATION NOT REQUIRED IN THE PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution.**

The following table sets forth the expenses expected to be incurred by us in connection with the issuance and distribution of the securities being registered. No portion of such expenses will be borne by the Selling Stockholders.

---

| | |
|:---|:---|
| SEC Registration | $463 |
| Legal Fees and Expenses\* | $50000 |
| Accounting Fees\* | $4000 |
| Miscellaneous\* | $5000 |
| Total | $59463 |

---

**Item 14. Indemnification of Directors and Officers.**

Under Section 7-109-102 of the Colorado Business Corporation Act (the "CBCA"), a corporation may indemnify a person made a party to a proceeding because he is or was a director against liability incurred in the proceeding if (a) his conduct was in good faith and (b) he reasonably believed (i) in the case of conduct in an official capacity with the corporation, that such conduct was in the corporation's best interests; and (ii) in all other cases, that such conduct was at least not opposed to the corporation's best interests and (c) in the case of any criminal proceeding, the person had no reasonable cause to believe that his conduct was unlawful. However, a corporation may not indemnify a director under this section (a) in connection with a proceeding by or in the right of the corporation in which he was adjudged liable to the corporation; or (b) in connection with any other proceeding charging that he derived an improper personal benefit, whether or not involving action in an official capacity, in which proceeding he was adjudged liable on the basis that he derived an improper personal benefit. The termination of a proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent is not, of itself, determinative that the director did not meet the requisite standard of conduct. Indemnification permitted under this section in connection with a proceeding by or in the right of the corporation is limited to reasonable expenses incurred in connection with the proceeding.

The CBCA further provides that, unless limited by its articles of incorporation, a corporation shall indemnify a person who was wholly successful, on the merits or otherwise, in the defense of any proceeding to which the person was a party because the person is or was a director or officer of the corporation, against reasonable expenses incurred by the person in connection with the proceeding. The Registrant's articles of incorporation contain no such limitation. In addition, a director or officer, who is or was a party to a proceeding, may apply for indemnification to the court conducting the proceeding or to another court of competent jurisdiction. The CBCA allows a corporation to indemnify and advance expenses to an officer, employee, fiduciary or agent of the corporation to the same extent as a director.

Pursuant to the foregoing, the Registrant's amended and restated articles of incorporation require it to indemnify, to the full extent permitted by law, any person who is or was a director or officer of the Registrant and may indemnify any other person against any claim, liability or expense arising against or incurred by such person made a party to a proceeding because he is or was a director, officer, agent, fiduciary or employee of the Registrant or because he is or was serving another entity as a director, officer, partner, trustee, employee, fiduciary or agent at the Company's request.

Under Section 7-108-402 of the CBCA, a corporation may, in its articles of incorporation, eliminate or limit the personal liability of a director to the corporation or its shareholders for monetary damages for breach of his fiduciary duty as a director, except that such provision may not eliminate or limit the liability of a director to the corporation or its shareholders for monetary damages for any breach of his duty of loyalty to the corporation or its shareholders, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, unlawful distributions or any transaction from which he directly or indirectly derived an improper personal benefit. No such provision may eliminate or limit the liability of a director to the corporation or to its shareholders for monetary damages for any act or omission occurring before the date when such provision became effective. As permitted by the CBCA, the Registrant's amended and restated articles of incorporation provide that the personal liability of the Company's directors to the Company or its stockholders is limited to the full extent permitted by the CBCA.

In addition, Section 7-108-402 provides that no director or officer shall be personally liable for any injury to person or property arising out of a tort committed by an employee unless he was personally involved in the situation giving rise to the litigation or unless he committed a criminal offense in connection with such situation, without restricting other common-law protections and rights that he may have.

Section 7-109-108 of the CBCA provides that a corporation may purchase and maintain insurance on behalf of a person who is or was a director, officer, employee, fiduciary or agent of the corporation, or who, while a director, officer, employee, fiduciary or agent of the corporation, is or was serving at the request of the corporation as a director, officer, partner, trustee, employee, fiduciary or agent of another entity or an employee benefit plan, against liability asserted against or incurred by the person in that capacity or arising from the person's status as a director, officer, employee, fiduciary or agent, whether or not the corporation would have power to indemnify the person against the same liability under the CBCA. The Registrant has not purchased such insurance.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is therefore unenforceable.

**Item 15. Recent sales of unregistered securities.**

On December 20, 2019, the Registrant issued 4,790,072,957 shares of Common Stock as merger consideration in respect of the merger of PUI with and into the Registrant to 23 persons pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act. Of these shares, (i) 4,595,467,025 shares were issued to the chief executive officer of PUI, who became the chief executive officer and a director of the Registrant pursuant to the related merger agreement and (ii) the remainder were issued to 22 persons who had purchased them from PUI over a period of several years prior to the merger.

On January 5, 2020, the Registrant issued 90,000,000 shares of Common Stock to two persons for $90,000 pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act. Of these shares, 40,000,000 were issued to a director of the Registrant.

On January 5, 2020, the Registrant issued 47,650,000 shares of Common Stock to 13 persons in exchange for shares of PUI that they had received as employee benefits over a period of several years prior to the merger pursuant to the exemption from registration afforded by Section 4(a)(2) of the Securities Act.

On January 5, 2020, the Registrant issued 10,250,000 shares of Common Stock to 13 persons who were not residents of the United States persons in exchange for shares of PUI that they had received as employee benefits over a period of several years prior to the merger. By virtue of the foreign status of these persons, these issuances were not subject to the registration provisions of the Securities Act.

In addition, the Company has issued unregistered shares of Common Stock as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Date | No. of Shares | Class of Securities | Value ($) | Transaction Type | Exemption Claimed |
| 01/24/20 | 1000000 | Common Stock | 1000 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/15/20 | 2000000 | Common Stock | 2000 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/15/20 | 150000 | Common Stock | 150 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/15/20 | 250000 | Common Stock | 250 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 500000 | Common Stock | 500 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 5000000 | Common Stock | 5000 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 500000 | Common Stock | 500 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 1000000 | Common Stock | 1000 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 250000 | Common Stock | 250 | Employee benefit | 4(a)(2) of the Securities Act |
| 02/19/20 | 1000000 | Common Stock | 1000 | Employee benefit | 4(a)(2) of the Securities Act |
| 03/15/20 | 7000000 | Common Stock | 9800 | Cash | 4(a)(2) of the Securities Act |
| 03/15/20 | 5000000 | Common Stock | 5000 | Cash | 4(a)(2) of the Securities Act |
| 03/16/20 | 2143000 | Common Stock | 3000 | Cash | 4(a)(2) of the Securities Act; foreign |
| 03/16/20 | 6429000 | Common Stock | 9000 | Cash | 4(a)(2) of the Securities Act; foreign |
| 04/24/20 | 7142857 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 04/24/20 | 62500000 | Common Stock | 12500 | Cash | 4(a)(2) of the Securities Act |
| 05/08/20 | 500000 | Common Stock | 500 | Employee benefit | 4(a)(2) of the Securities Act |
| 06/26/20 | 7000000 | Common Stock | 9800 | Cash | 4(a)(2) of the Securities Act |
| 06/26/20 | 50000000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 06/26/20 | 3571428 | Common Stock | 5000 | Cash | 4(a)(2) of the Securities Act |
| 03/15/21 | 50000000 | Common Stock | 150000 | Settlement of litigation | 4(a)(2) of the Securities Act; foreign |
| 03/15/21 | 7500000 | Common Stock | 22500 | Cash | 4(a)(2) of the Securities Act |
| 03/26/21 | 13392857 | Common Stock | 3750 | Cash | 4(a)(2) of the Securities Act |
| 04/09/21 | 1893939 | Common Stock | 5000 | Cash | 4(a)(2) of the Securities Act |
| 04/09/21 | 8928571 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 04/09/21 | 8152174 | Common Stock | 15000 | Cash | 4(a)(2) of the Securities Act |
| 04/09/21 | 10080645 | Common Stock | 25000 | Cash | 4(a)(2) of the Securities Act |
| 04/21/21 | 3750000 | Common Stock | 9000 | Cash | 4(a)(2) of the Securities Act |
| 04/28/21 | 10714286 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 04/29/21 | 178571429 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |
| 05/01/21 | 6944444 | Common Stock | 15000 | Cash | 4(a)(2) of the Securities Act |
| 05/08/21 | 2500000 | Common Stock | 5000 | Cash | 4(a)(2) of the Securities Act |
| 05/10/21 | 36764706 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |
| 05/18/21 | 2500000 | Common Stock | 5000 | Cash | 4(a)(2) of the Securities Act |
| 05/21/21 | 12500000 | Common Stock | 2500 | Cash | 4(a)(2) of the Securities Act |
| 05/24/21 | 3750000 | Common Stock | 7500 | Cash | 4(a)(2) of the Securities Act |
| 06/03/21 | 8928857 | Common Stock | 9800 | Cash | 4(a)(2) of the Securities Act |
| 06/11/21 | 14705882 | Common Stock | 20000 | Cash | 4(a)(2) of the Securities Act |
| 06/25/21 | 6250000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 06/26/21 | 6250000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 09/21/21 | 10000000 | Common Stock | 40000 | Cash | 4(a)(2) of the Securities Act |
| 11/30/21 | 40000000 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |
| 11/30/21 | 1893939 | Common Stock | 2000 | Cash | 4(a)(2) of the Securities Act |
| 01/04/22 | 55555555 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| 01/04/22 | 27777778 | Common Stock | 25000 | Cash | 4(a)(2) of the Securities Act |
| 01/04/22 | 10000000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 01/04/22 | 200000000 | Common Stock | 200000 | Cash | 4(a)(2) of the Securities Act |
| 01/07/22 | 30000000 | Common Stock | 30000 | Cash | 4(a)(2) of the Securities Act |
| 01/21/22 | 20000000 | Common Stock | 20000 | Cash | 4(a)(2) of the Securities Act |
| 01/24/22 | 10000000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 01/31/22 | 10000000 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 03/02/22 | 20000000 | Common Stock | 12000 | Services | 4(a)(2) of the Securities Act |
| 03/03/22 | 94117647 | Common Stock | 84700 | Cash | 4(a)(2) of the Securities Act |
| 03/09/22 | 11111111 | Common Stock | 1000 | Cash | 4(a)(2) of the Securities Act |
| 03/11/22 | 55000000 | Common Stock | 38500 | Cash | 4(a)(2) of the Securities Act |
| 03/28/22 | 70588234 | Common Stock | 70600 | Cash | 4(a)(2) of the Securities Act |
| 03/28/22 | 41025641 | Common Stock | 41025 | Cash | 4(a)(2) of the Securities Act |
| 04/01/22 | 55555555 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |
| 06/26/22 | 125000000 | Common Stock | 50000 | Cash | 4(a)(2) of the Securities Act |
| 08/10/22 | 1000 | Series B Preferred |  | <sup>1</sup> | 4(a)(2) of the Securities Act |
| 09/07/22 | 62500000 | Common Stock | 54200 | Cash | 4(a)(2) of the Securities Act |
| 09/07/22 | 16888889 | Common Stock | 12667 | Cash | 4(a)(2) of the Securities Act |
| 09/30/22 | 11250000 | Common Stock |  | Services | 4(a)(2) of the Securities Act |
| 10/17/22 | 625000000 | Common Stock | 250000 | Cash | 4(a)(2) of the Securities Act |
| 11/1/22 | 70000000 | Common Stock |  | Services Agreements | 4(a)(2) of the Securities Act; foreign |
| 1101/22 | 16000000 | Common Stock |  | Employee benefit | 4(a)(2) of the Securities Act; foreign |
| 12/01/22 | 4000000 | Common Stock | 2000 | Cash | 4(a)(2) of the Securities Act |
| 12/12/22 | 22222222 | Common Stock | 10000 | Cash | 4(a)(2) of the Securities Act |
| 01/09/23 | 100000000 | Common Stock | 25000 | Cash | 4(a)(2) of the Securities Act |
| 01/09/23 | 16000000 | Common Stock | 4800 | Cash | 4(a)(2) of the Securities Act |
| 01/10/23 | 38000000 | Common Stock | 19000 | Cash | 4(a)(2) of the Securities Act |

---

 **<sup>______________</sup>**

<sup>1</sup> Issued in exchange for 595,467,205 shares of Common Stock.

The proceeds of the securities issued for cash were used for general corporate purposes.

**Item 16. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES**

(a) **Exhibits.**

---

| | |
|:---|:---|
| **Exhibit**<br> **<u>Number</u>** | **<u>Description</u>** |
| 3.1 | [Amended and Restated Articles of Organization, filed with the Secretary of State of the State of Colorado on July 20, 2022.](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex0301.htm) |
| 3.2 | [Amendment to the Articles of Incorporation](cannabisbio_ex0302.htm), filed with the Secretary of State of the State of Colorado on December 6, 2022. \* |
| 3.3 | [By-Laws.](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex0302.htm) |
| 5 | [Opinion of Barry J. Miller PLLC](cannabisbio_ex0500.htm). |
| 10.1 | [2022 Incentive Award Plan](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex1003.htm).+ |
| 10.2 | [Lease, dated July 1, 2016, by and between 6201 Bonhomme, L.P. as landlord and Precision Research Institute, L.L.C., as tenant](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex1004.htm) (includes amendments). |
| 10.3 | [Apartment Lease, dated March 15, 2022, by and between SPUSG HSTN North Tower, as Lessor, and Dante Picato and Henry Levinski, as tenants.](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex1005.htm) |
| 10.4 | [U.S. Small Business Note, dated April 16, 2021, made by Elizabeth Hernandez and assumed by the Registrant.](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex1007.htm) |
| 10.5 | [Forward Purchase Agreement (Fixed ACH Delivery), dated May 13, 2022, by and between Kapitos LLC and the Registrant.](cannabisbio_ex1005.htm) |
| 10.6 | [First Electronic Bank Revolving Credit Agreement, dated December 10, 2020, by and between Registrant and First Electronic Bank.](cannabisbio_ex1006.htm) |
| 10.7 | [Business Line of Credit Agreement, dated October 8, 2019, by and between Headway Capital, LLC and Pharmacology University, Inc.](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_ex1010.htm) |
| 10.8\* | [Future Receivables Sale and Purchase Agreement, dated as of August 8, 2022, by and between Park Avenue Funding and the Registrant.](cannabisbio_ex1008.htm) |
| 10.9 | Agreement, dated as of November 1, 2022, by and between the Registrant and Henry Levinski.+ \* |
| 21 | [Subsidiaries of the Registrant](cannabisbio_ex2100.htm).\* |
| 23 | [Consent of PWR CPA, LLP](cannabisbio_ex2300.htm).\* |
| 23.2 | [Consent of Barry J. Miller PLLC](cannabisbio_ex0500.htm). Included in Exhibit 5. |
| 24 | [Power of Attorney](http://www.sec.gov/Archives/edgar/data/1411057/000168316822006041/chinainfr_s1.htm). Included on the signature page of the registration statement filed on August 24, 2022. |
| 107 | [Filing Fee Table](cannabisbio_ex107.htm) (Amended).\* |

---

\* Filed herewith

+ Indicates management contract or Compensatory Plan.

(b) **Financial Statement Schedules.**

All schedules are omitted because the required information is either not present, not present in material amounts or is presented within the consolidated financial statements included in the Prospectus that is part of this registration statement.

**Item 17. Undertakings.**

The undersigned hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of
 the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus
 any facts or events arising after the effective date of the registration statement (or the
 most recent post-effective amendment thereof) which, individually or in the aggregate, represent
 a fundamental change in the information set forth in the registration statement. Notwithstanding
 the foregoing, any increase or decrease in volume of securities offered (if the total dollar
 value of securities offered would not exceed that which was registered) and any deviation
 from the low or high end of the estimated maximum offering range may be reflected in the
 form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate,
 the changes in volume and price represent no more than a 20 percent change in the maximum
 aggregate offering price set forth in the "Calculation of Registration Fee" table
 in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information
 with respect to the plan of distribution not previously disclosed in the registration statement
 or any material change to such information in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness; *provided, however,* that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (5) That, for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, the undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any preliminary prospectus or prospectus
 of the undersigned Registrant relating to the offering required to be filed pursuant to Rule
 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any free writing prospectus relating
 to the offering prepared by or on behalf of the undersigned Registrant or used or referred
 to by the undersigned Registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The portion of any other free writing
 prospectus relating to the offering containing material information about the undersigned
 Registrant or its securities provided by or on behalf of the undersigned Registrant;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Any other communication that is an offer in the offering made
 by the undersigned Registrant to the purchaser.

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1933, the Registrant has duly caused this amendment to the registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Houston, Texas.

Date: January 13, 2023

---

| |
|:---|
| **CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC.** |
| By: <u>/s/ Dante Picazo</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dante Picazo |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act, this registration statement has been signed below by the following persons in the capacities set forth opposite their names and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Person** | **Title** | **Date** |
| <u>\*</u> | Chief Executive Officer and Director | January 13, 2023 |
| Dante Picazo | (Principal Executive Officer and Principal Accounting Officer) |  |
| <u>/s/ Henry Levinski</u> | Vice President and Director | January 13, 2023 |
| Henry Levinski |  |  |
| <u>\*</u> | Secretary and Director | January 13, 2023 |
| Jose Torres |  |  |

---

\*By: /<u>s/ Henry Levinski</u> <br> Henry Levinski Attorney-in-Fact

## Exhibit 3.2

**Exhibit 3.2**

![](aa1.jpg)

![](aa2.jpg)

Document must be filed electronically. Paper documents are not accepted. Fees & forms are subject to change. For more information or to print copies of filed documents, visit www.coloradosos.gov. ABOVE SPACE FOR OFFICE USE ONLY Articles of Amendment filed pursuant to † 7 - 90 - 301, et seq. and † 7 - 110 - 106 of the Colorado Revised Statutes (C.R.S.) 1. For the entity, its ID number and entity name are ID number (Colorado Secretary of State ID number) Entity name . 2. The new entity name (if applicable) is CANNABIS BIOSCIENCE INTERNATIONAL HOLDINGS, INC. . filing are 20031067720 China Infrastructure Construction Corp. 3. (If the following statement applies, adopt the statement by marking the box and include an attachment.) ݶ This document contains additional amendments or other information. 4. If the amendment provides for an exchange, reclassification or cancellation of issued shares, the attachment states the provisions for implementing the amendment. 5. (Caution : Leave blank if the document does not have a delayed effective date. Stating a delayed effective date has significant legal consequences. Read instructions before entering a date.) (If the following statement applies, adopt the statement by entering a date and, if applicable, time using the required format.) The delayed effective date and, if applicable, time of this document is/are . (mm/dd/yyyy hour:minute am/pm) Notice : Causing this document to be delivered to the Secretary of State for filing shall constitute the affirmation or acknowledgment of each individual causing such delivery, under penalties of perjury, that such document is such individual's act and deed, or that such individual in good faith believes such document is the act and deed of the person on whose behalf such individual is causing such document to be delivered for filing, taken in conformity with the requirements of part 3 of article 90 of title 7, C.R.S. and, if applicable, the constituent documents and the organic statutes, and that such individual in good faith believes the facts stated in such document are true and such document complies with the requirements of that Part, the constituent documents, and the organic statutes. This perjury notice applies to each individual who causes this document to be delivered to the Secretary of State, whether or not such individual is identified in this document as one who has caused it to be delivered. 6. The true name and mailing address of the individual causing the document to be delivered for Miller Barry J. (Last) (First) (Middle) (Suffix) 7146 Pebble Park Drive (Street name and number or Post Office Box information) West Bloomfield _ MI 48322 (City) (Province – if applicable) (State) (Postal/Zip Code) United States (Country – if not US) Colorado Secretary of State Date and Time: 12/06/2022 02:30 PM ID Number: 20031067720 Document number: 20228194596 Amount Paid: $25.00 AMD_PC Page 1 of 2 Rev. 12/20/2016 Exhibit 3.2

![](a2.jpg)

(If the following statement applies, adopt the statement by marking the box and include an attachment.) This document contains the true name and mailing address of one or more additional individuals causing the document to be delivered for filing. Disclaimer: This form/cover sheet, and any related instructions, are not intended to provide legal, business or tax advice, and are furnished without representation or warranty. While this form/cover sheet is believed to satisfy minimum legal requirements as of its revision date, compliance with applicable law, as the same may be amended from time to time, remains the responsibility of the user of this form/cover sheet. Questions should be addressed to the user's legal, business or tax advisor(s). AMD_PC Page 2 of 2 Rev. 12/20/2016

![](a3.jpg)

CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION AMENDMENT OF RESTATED ARTICLES OF INCORPORATION Pursuant to Sections 7 - 110 - 103 of the Colorado Business Corporation Act, CHINA INFRA - STRUCTURE CONSTRUCTION CORPORATION, a corporation organized and existing un - der the laws of Colorado, hereby amends its Restated Articles of Incorporation and certifies that : FIRST : The name of the Corporation is CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION . SECOND : ARTICLE I of the Corporation's Restated Articles of Incorporation is hereby amended to read as follows : ARTICLE I: The name of the Corporation is CANNABIS BIOSCIENCE IN - TERNATIONAL HOLDINGS, INC. IN WITNESS WHEREOF, the Corporation has caused this amendment of the Restated Articles of Incorporation to be signed on its behalf by its chief executive officer, thereunto duly authorized, this second day of September 2022 . CHINA INFRASTRUCTURE CONSTRUCTION CORPORATION By: Dante Picazo Chief Executive Officer

## Ex-5

**Exhibit 5**

BARRY J. MILLER

7146 Pebble Park Drive

West Bloomfield, Michigan 48322

Telephone: (248) 232-8039 – Fax: (248) 246-9524

Email: bjmiller@bjmpllc.com

January 9, 2022

Board of Directors<br> Cannabis Bioscience International Holdings, Inc.

Re: <u>Registration Statement on Form S-1 (Registration No. 333-267039)</u>

Ladies and Gentlemen:

I have acted as counsel for Cannabis Bioscience International Holdings, Inc., a Colorado corporation (the "Company"), in connection with the registration statement on Form S-1 of the Company (Registration No. 333-267039) filed with the United States Securities and Exchange Commission (the "Commission") relating to (i) the issuance and sale by the Company of 6,250,000 shares of the Company's common stock, without par value ("Common Stock"), and (ii) the sale by the Selling Stockholders (as that term is defined in the Registration Statement) of 2,526,252,288 shares of Common Stock. This opinion is being furnished to you at your request to enable you to comply with the requirements of Item 601(b)(5) of Regulation S-K promulgated under the Securities Act of 1933 in connection with the Registration Statement.

In connection with this opinion, I have examined such matters of fact and questions of law as I have deemed relevant. I have relied upon the foregoing and upon certificates and other assurances of officers of the Company and others as to factual matters without having independently verified them.

In rendering this opinion, I have assumed: (i) information contained in documents reviewed by me is true, complete and correct; (ii) the genuineness and authenticity of all signatures; (iii) the authenticity of all documents submitted to me as originals; (iv) the conformity to authentic originals of all documents submitted to me as copies; (v) the accuracy, completeness and authenticity of certificates of public officials; (vi) the due authorization, execution and delivery of all documents by parties other than the Company; and (vii) the legal capacity of all natural persons.

Based upon the foregoing, I am of the opinion that (i) the shares of Common Stock to be issued and sold by the Company have been duly and validly authorized and, when issued and delivered by the Company, and paid for in accordance with the prospectus that is part of the Registration Statement, will be validly issued, fully paid and nonassessable and (ii) the shares of Common Stock to be sold by the Selling Stockholders are duly authorized, validly issued, fully paid and nonassessable.

This opinion is rendered only with respect to the Colorado Business Corporation Act, as amended, the applicable provisions of the Colorado Constitution and any reported judicial decisions interpreting them. I express no opinion (i) with respect to the applicability thereto, or the effect thereon, of the laws of any other jurisdiction or as to any matters of municipal law or the laws of any local agencies within Colorado or (ii) as to the form or content of the Registration Statement.

I hereby consent to the filing of this opinion with the Commission as Exhibit 5.1 to the Registration Statement and the reference to me therein under the caption "Legal Matters." In giving this consent, I do not thereby admit that I am included in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission.

Very truly yours,

/s/ Barry J. Miller

## Exhibit 10.5

**Exhibit 10.5**

![](image_005.jpg)

**<u>FORWARD PURCHASE AGREEMENT (FIXED ACH DELIVERY)</u>**

This Forward Purchase Agreement ("the Purchase Agreement") dated October 05 2022 is entered into between Kapitus LLC ("Purchaser") and each of the merchant(s) listed below (the "Seller" or "Merchant"). Seller agrees to sell, assign, and transfer and Purchaser agrees to purchase and receive Seller's accounts, receipts, contract rights, and other rights to payment arising from or relating to the payment to Seller through cash, checks, electronic transfers, ACH transfers, credit cards, charge cards, debit cards, prepaid cards, mobile payments (including Apple PayTM and other ACH payments) and other similar payment methods that may accrue to Seller in the ordinary course of Seller's Business ("Receipts").

**<u>SELLER :</u>**

SELLER'S LEGAL NAME: <u>PHARMACOLOGY</u> TRADE NAME: <u>PHARMACOLOGY UNIVERSITY</u> <br> <u>UNIVERSITY FW, LLC/ HENRY</u> <br> <u>LEVINSKI/ DANTE PICAZO</u> 

---

| | | | | |
|:---|:---|:---|:---|:---|
| TYPE OF ENTITY: | <u>CORPORATION</u> |  |  |  |
| PHYSICAL ADDRESS: | <u><u>5665 ARAPAHO RD APT 1923</u></u> | CITY: <u>DALLAS</u> | STATE: <u>TX</u> | ZIP: <u>75248-3496</u> |
| MAILING ADDRESS: | <u>6201 BONHOMME RD STE 466S</u> | CITY: <u>HOUSTON</u> | STATE: <u>TX</u> | ZIP : <u>77036-4476</u> |

---

TELEPHONE: <u>(817) 528-2475</u> EMAIL ADDRESS: HLEVINSKI<u>@PHARMACOLOGYUNIVERSITY.COM</u> <br>

**<u>SALE CONFIRMATION (CID 8340111)</u>**

---

| | | |
|:---|:---|:---|
| 1. | &nbsp;&nbsp;&nbsp;Purchaser: | **Kapitus LLC, 2500 Wilson Boulevard Suite 350, Arlington, VA 22201** |
| 2. | &nbsp;&nbsp;&nbsp;Servicer: | **Kapitus Servicing, Inc., 2500 Wilson Boulevard, Suite 350, Arlington, VA 22201** |
| 3. | &nbsp;&nbsp;&nbsp;Purchased Amount: | $94150.00 |
|  |  | Total dollar amount of Receipts to be delivered to Purchaser |
| 4. | &nbsp;&nbsp;&nbsp;Purchase Price: | $70000.00 |
|  |  | Gross total paid for Receipts purchased. |
| 5. | &nbsp;&nbsp;&nbsp;Closing Fee: | $1,750.00 ((2.5%) of Purchase Price) |
|  |  | Up-front fee charged for closing the purchase. |
| 6. | &nbsp;&nbsp;&nbsp;Net Purchase Price: | $29360.00 |
|  |  | Net total delivered to Seller as consideration for purchase, equal to the Purchase Price less the Closing Fee and any payment made to Purchaser or any third party as agreed by Seller. |

---

---

| | | |
|:---|:---|:---|
| 7. | &nbsp;&nbsp;&nbsp;Specified Percentage: | 4.700000 %. |
|  |  | Percentage of receipts to be delivered until Purchased Amount is delivered to Purchaser. |
|  |  | Seller irrevocably designates only one deposit account acceptable to Purchaser to facilitate the collection of the Specified Percentage until such time as Purchaser receives the full Purchased Amount. In the event of a breach of any of the Transaction Documents the Specified Percentage shall equal 100%. |

---

---

| | | |
|:---|:---|:---|
| 8. | Fixed ACH Terms: | Specified Amount and Frequency: $1,208.00 Weekly. |
|  |  | Seller authorizes Purchaser to ACH Debit the Specified Amount from the designated deposit account as the base payment credited against the Specified Percentage due. The Specified Amount is an estimate of the Specified Percentage. Seller understands that it is responsible for ensuring that funds adequate to cover the amount to be debited by Purchaser remain in the account. |
|  |  | **Reconciliation:** The Specified Amount shall be reconciled to reflect the Seller's actual Receipts at Seller's request. Seller may initiate a reconciliation by calling 1-800-780-7133 and requesting to speak with a Kapitus Servicing, Inc. ("Servicer") customer service representative. The Seller agrees to provide any information needed to complete such reconciliation, including providing online access to Seller's banking transaction data through a secure, read-only link. It is the Seller's responsibility to provide bank transaction data and/or statements for any and all bank accounts held by the Seller to reconcile the ACH debits to the Specified Percentage permitting Servicer to debit or credit the difference to the Seller. Upon verification of the Receipts generated by Seller, Servicer shall adjust the Specified Amount on a going-forward basis to more closely reflect the Seller's actual Receipts. Once the Seller elects to conduct a reconciliation, either Party may thereafter request a reconciliation once every 30 days. After each adjustment, the new dollar amount shall be deemed the Specified Amount until any subsequent adjustment. **SELLER SHALL NOT BE ENTITLED TO ANY RECONCILIATION IF SELLER HAS DEFAULTED UNDER ANY OF THE TRANSACTION DOCUMENTS**. |

---

9. Security Interest: To secure Seller's payment and performance obligations
to Purchaser under the Transaction Documents, Seller hereby grants to Purchaser a security interest in the property, rights, accounts,
and other interests as set forth in the Security Agreement.

10. General Terms and Conditions: The Purchaser and Seller shall be bound by this Purchase Agreement, the Sale Terms and Conditions governing the purchase of Receipts from Seller, the Security Agreement,
the Guaranty, which are incorporated by reference herein, dated October 05, 2022 and the Agreement to Arbitrate, dated October 05, 2022
(collectively, the "Transaction Documents").

Each signatory represents and warrants that: (1) he or she is authorized to enter into this sale, legally binding the Seller to deliver the Receipts as agreed, and (2) all information provided herein, in the application, in any documents submitted, and in any interviews conducted during the underwriting of the sale, including without limitation any financial information, are true, accurate and complete in all respects. Seller and Guarantor(s) expressly acknowledge and agree that Purchaser and Servicer are relying on such representations and warranties when determining to purchase the Receipts and that the accuracy thereof is a material condition of the Transaction Documents. **If any information provided is false or misleading, Seller shall be held liable for fraud in the inducement and fraud and Guarantor(s) shall be personally liable for the Seller's obligations.**

**IT IS UNDERSTOOD THAT ANY REPRESENTATIONS OR ALLEGED PROMISES BY INDEPENDENT BROKERS OR AGENTS ARE NULL AND VOID IF NOT INCLUDED IN THE TRANSACTION DOCUMENTS. ANY MODIFICATION OR OTHER ALTERATION TO THE TRANSACTION DOCUMENTS MUST BE IN WRITING AND DULY EXECUTED BY THE PARTIES.**

**CONSENT TO RECEIVE AUTODIALED AND PRERECORDED CALLS AND MESSAGES**

Purchaser, Kapitus Servicing, Inc. and their subsidiaries and affiliates (collectively, "KAPITUS") may from time to time notify applicant(s) of various promotional offers and other marketing information, or contact Seller and Guarantor(s) in connection with the servicing of the Transaction Documents, or in connection with any default under the Transaction Documents. By signing this Purchase Agreement, Seller and Guarantor(s) expressly consent and authorize KAPITUS to call, send text messages, and/or send other electronic messages (including prerecorded or artificial voice messages) using an automatic telephone dialing system to any telephone number provided by Seller or Guarantor(s) in the Transaction Documents, any and all applications or any administrative form or other means, including cellular phone numbers and landlines, regardless of their inclusion on any do not call list, for purposes of servicing, collections, marketing or promoting any product offered by KAPITUS. Seller and Guarantor(s) further expressly consent and authorize KAPITUS to record all calls with KAPITUS. Please note that you are not required to consent to be called for marketing or promotional purposes in order to obtain any products or services from KAPITUS. If you do not agree to be called for marketing or promotional purposes, please call (844) 547-9396 or email DNC@kapitus.com

---

| | | |
|:---|:---|:---|
| **SELLER** | **SELLER** |  |
| By: | HENRY LEVINSKI, OWNER | /s/ Henry Levinski |
|  | (Print Name and Title) | (Signature) |

---

---

| | |
|:---|:---|
| **PURCHASER** | **PURCHASER** |
| By: |  |
|  | (Company Officer or Designee) (Signature) |

---

**GUARANTOR**

---

| | |
|:---|:---|
| By: | HENRY LEVINSKI |
|  | (Print Name) (Signature) |

---

**GUARANTOR**

<br> By:     <br> (Print Name) (Signature)

**GUARANTOR**

<br> By:     <br> (Print Name) (Signature)

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**AUTHORIZED SUB-SERVICING AGENT**

Purchaser, as Agent, may perform any and all of its duties and exercise its rights and powers by or through any one or more sub-agents. Kapitus Servicing, Inc. is the Authorized Sub-Servicing Agent and the General Agent of the Purchaser. Servicer will initiate all debits and credits to Seller's account, provide customer service and administrative support to Purchaser and Seller, initiate any necessary collection actions in the event of any default under the Transaction Documents, initiate and defend legal actions related to the Transaction Documents, and provide legal support services to Purchaser.

**SERVICER FEES**

11. Banking Fees $50.00 for outgoing wire transfers or payments by check.

12. Changing Bank Accounts $75.00

13. UCC Terminations $250.00

14. Default Fee $2500.00

15. Returned Payment Fee $175.00

*OTHER THAN THE CLOSING FEE, IF ANY, AND THE SERVICER FEES SET FORTH ABOVE, NEITHER PURCHASER NOR KAPITUS SERVICING IS CHARGING ANY FEES TO SELLER. IF SELLER IS CHARGED ANY ADDITIONAL FEE IN CONNECTION WITH THE SALE, IT IS NOT AUTHORIZED OR CHARGED BY KAPITUS AND SELLER SHOULD INFORM KAPITUS IF ANY UNAUTHORIZED FEE HAS BEEN CHARGED IN CONNECTION WITH THE TRANSACTION DOCUMENTS.*

*YOUR APPLICATION TO SELL RECEIPTS IS AN APPLICATION FOR BUSINESS CREDIT, AND IF IT IS DENIED, YOU HAVE THE RIGHT TO A WRITTEN STATEMENT OF THE SPECIFIC REASONS FOR THE DENIAL. TO OBTAIN THE STATEMENT, PLEASE CONTACT KAPITUS LLC AT THE ABOVE ADDRESS OR PHONE NUMBER WITHIN 60 DAYS FROM THE DATE YOU ARE NOTIFIED OF THE DECISION. YOU HAVE THE RIGHT TO OBTAIN A WRITTEN STATEMENT OF REASONS FOR THE DENIAL WITHIN 30 DAYS OF RECEIVING YOUR REQUEST FOR THE STATEMENT.*

 

*NOTICE: THE FEDERAL EQUAL CREDIT OPPORTUNITY ACT PROHIBITS CREDITORS FROM DISCRIMINATING AGAINST CREDIT APPLICANTS ON THE BASIS OF RACE, COLOR, RELIGION, NATIONAL ORIGIN, SEX, MARITAL STATUS, AGE (PROVIDED THE APPLICANT HAS THE CAPACITY TO ENTER INTO A BINDING CONTRACT); BECAUSE ALL OR PART OF THE APPLICANT'S INCOME DERIVES FROM ANY PUBLIC ASSISTANCE PROGRAM; OR BECAUSE THE APPLICANT HAS IN GOOD FAITH EXERCISED ANY RIGHT UNDER THE CONSUMER CREDIT PROTECTION ACT. THE FEDERAL AGENCY THAT ADMINISTERS COMPLIANCE WITH THIS LAW CONCERNING THIS CREDITOR IS THE FEDERAL TRADE COMMISSION, 600 PENNSYLVANIA AVENUE, NW, WASHINGTON, DC 20580, FTC<u>.GOV</u>*

**<u>SALE TERMS AND CONDITIONS</u>**

**I. GENERAL TERMS**

**<u>1.1 Sale of Receipts.</u>** Seller and Purchaser intend that the transfer of the interest in the Receipts from Seller to Purchaser constitutes a forward sale, and not a loan, for all legal, practical and business purposes. Seller agrees that the Purchase Price equals the fair market value of the Receipts being purchased as of the date sold that are expected to come into existence in the future in the ordinary course of the operation of Seller's business. Title to, responsibility for and risk of loss of the interest in the Receipts shall pass from the Seller to the Purchaser upon execution of this Agreement with respect to the Purchased Amount. In addition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as further set forth in the Security Agreement, Seller hereby grants to Purchaser a security interest in all right, title and interest of Seller in and to the Receipts, which security interest shall secure the payment of the Purchase Price and all other obligations of Seller under this Agreement. Seller hereby authorizes Purchaser to file any financing statements deemed necessary by Purchaser to perfect or maintain Purchaser's interest in the Receipts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the parties acknowledge that the delivery of the Purchase Price is not a payment in whole or in part for the use or forbearance of money, but rather delivery of the bargained for payment of the purchase price to Purchaser under the Purchase Agreement, notwithstanding anything to the contrary contained herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Parties agree and acknowledge that there is no stated or unstated interest factor in this Agreement, and no interest will be paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the event that a court ignores the intent of the parties that the Transaction Documents be treated as a forward purchase of Receipts, and further determines that the arrangement creates a loan or other indebtedness rather than a completed forward sale of Receipts, and further determines that under that court-determined arrangement that the PURCHASER has charged or received "interest," and further determines that the amount of interest is in excess of the highest applicable rate, the imputed rate so determined shall automatically be reduced to the maximum rate permitted by applicable law and Purchaser shall promptly refund to Seller as liquidated damages any amount received by Purchaser in excess of such maximum lawful rate, it being intended that Seller not pay or contract to pay, and that Seller not receive or contract to receive, directly or indirectly in any manner whatsoever, interest on indebtedness in excess of that which may be paid by Seller under applicable law.

**<u>1.2 Term of Agreement.</u>** The Purchase Agreement shall have an indefinite term. The Purchase Agreement shall commence with Purchaser's delivery of the funds constituting the Purchase Price and shall run until such time as Purchaser receives sufficient receipts to equal the value of the Purchased Amount and thus fulfill the delivery of the future receivable purchased and all of Seller's other obligations to Purchaser are fully satisfied. The Purchase Agreement and the provisions of this Section 1.2 are applicable to any renewals and additional agreements executed by the parties that constitute Forward Purchase Agreements and/or purchase of future receivables.

**<u>1.3 Authorization to Debit.</u>** Seller shall establish an account with a financial institution acceptable to Purchaser that will be designated to collect the Receipts

generated by Seller. Seller hereby authorizes Purchaser and/or its agents to obtain any amounts due pursuant to the Transaction Documents by ACH debit of the account designated, or of any other Seller account, as provided pursuant to the Transaction Documents. This authorization shall be irrevocable without the written consent of Purchaser. Seller shall provide Purchaser and/or its agents with all of the information and authorizations necessary for verifying Sellers's receivables, Receipts and deposits.

**<u>1.3 Financial Condition</u>**<u>.</u> Seller and Guarantor(s) authorize Purchaser to investigate their financial responsibility and history, and will provide to Purchaser any bank or financial statements, tax returns, or any other documentation, as Purchaser deems necessary prior to or at any time after execution of the Transaction Documents. A photocopy of this authorization will be deemed as acceptable for release of any necessary information. Seller and Guarantor(s) authorize and consent to Purchaser updating their credit and financial profile from time to time in the future, as Purchase deems appropriate, including by obtaining investigative, consumer, and personal or business credit reports. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.4. Financial Information and Credit Reporting.</u>** Seller and Guarantor authorize Purchaser to obtain business and personal credit bureau and consumer reports at any time and from time to time for purposes of deciding whether to purchase Receipts from Seller, for any requested loan or for any update, renewal, extension of credit or other lawful purpose. Upon Seller's or Guarantor's request, Purchaser will advise Seller or Guarantor if Purchaser obtained a credit report and Purchaser will give Seller or Guarantor the credit bureau's name and address. Seller and Guarantor agree to submit current financial information, update any credit application, or both, at any time promptly upon Purchaser's request. Purchaser may report Purchaser's experiences with Seller and Guarantor to third parties as permitted by law. Seller and Guarantor also agree that Purchaser may release information to comply with governmental reporting or legal process that Purchaser believes may be required, whether or not such is in fact required, or when necessary or helpful in completing a transaction, or when investigating a loss or potential loss, and/or seeking recovery for such loss. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.5 Transactional History.</u>** Seller and Guarantor authorize Purchaser to act as Seller's and Guarantor's agent, respectively, for purposes of accessing and retrieving transaction history information regarding Seller and/or Guarantor from Seller's and Guarantor's financial institutions, banks, banking accounts, and/or credit card processing accounts. Seller and Guarantor authorize their respective financial institutions to provide Purchaser with Seller's and Guarantor's transaction history, and any and all information regarding Seller's and Guarantor's accounts, balances, or transfers, for any purpose, including for purposes of collection. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.6 Indemnification.</u>** Seller and Guarantor jointly and severally will indemnify and hold Purchaser, and its officers, directors, shareholders, members, managers, employees, owners, partners, affiliates, subsidiaries, parent company, successors, transferees, assigns, purchasers, investors, financiers, agents, representatives, attorneys and professionals, (collectively, the "Purchaser Parties") harmless from all losses, costs, damage, liabilities or expenses (including, without limitation, court costs and attorneys' fees) that the Purchaser Parties may sustain or incur by reason of defending claims asserted by Seller and/or Guarantor, and all persons and entities claiming by, through or under them, to the fullest extent permitted by law, in protecting the security interest conveyed pursuant to the Security Agreement or the priority thereof, in enforcing any other term of the Transaction Documents, and/or in the prosecution or defense of any action or proceeding concerning any matter arising out of or in connection with the Transaction Documents and/or any other documents now or hereafter executed in connection with the Transaction Documents, the Collateral and/or the Additional Collateral, including without limitation any legal or dispute resolution proceeding, bankruptcy proceeding, receivership, and/or any other insolvency proceeding or other proceeding for relief for debtors or creditors.

In no event will Purchaser, its officers, directors, shareholders, members, managers, employees, affiliates, agents or representatives be liable for any claims asserted by Seller under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of which is waived by Seller and Guarantor(s). This section shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.7 Power of Attorney.</u>** Seller irrevocably appoints Purchaser as its agent and attorney-in-fact with full authority to take any action or execute any instrument or document to settle all obligations due to Purchaser, or in the case of the occurrence of any Event of Default, from Seller, under this Agreement, including without limitation (i) to obtain and adjust insurance; (ii) to collect monies due or to become due under or in respect of any of the Collateral; (iii) to receive, endorse and collect any checks, notes, drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii) above; (iv) to sign Seller's name on any invoice, bill of lading, or assignment directing customers or account debtors to make payment directly to Purchaser; and (v) to file any claims or take any action or institute any proceeding which Purchaser may deem necessary for the collection of any of the unpaid Purchased Amount from the Collateral, or otherwise to enforce its rights with respect to payment of the Purchased Amount. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.8 Disclosure of Information</u>**. Seller and Guarantor and each person signing this Agreement on behalf of Seller and/or as a Guarantor, in respect of himself or herself personally, authorizes Purchaser to disclose information concerning Seller's and each Guarantor's credit standing (including credit bureau reports that Purchaser obtains) and business conduct. Seller and each Guarantor hereby waives to the maximum extent permitted by law any claim for damages against Purchaser Parties relating to any (i) investigation undertaken by or on behalf of Purchaser as permitted by the Transaction Documents or (ii) disclosure of information as permitted by the Transaction Documents. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.9 Publicity.</u>** Seller and Guarantor(s) authorize Purchaser to use its, his or her name in a listing of clients and in advertising and marketing materials. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.10 UCC Agent & D/B/A's.</u>** Seller and Guarantor(s) hereby acknowledge and agree that Purchaser may be using affiliates, representatives, agents, "doing business as" or "d/b/a" and/or fictitious names in connection with various matters relating to the transaction between Purchaser and Seller and Guarantor(s), and may file UCC-1 financing statements and other notices or filings using such names on its own behalf or though Purchaser's UCC agent. Purchaser shall have no obligation to terminate any UCC financing statement filed in connection with the Purchase Agreement absent a written request by Purchaser and after delivery of the Receipts purchased and the fulfillment of all of Seller's obligations to Purchaser under the Transaction Documents, and payment of the UCC Termination fee stated in the Purchase Agreement. Notwithstanding any terms to the contrary contained herein, and except as may be required under applicable law, Purchaser shall have no obligation to terminate any UCC financing statement while there is a pending: (i) petition for bankruptcy protection under Title 11 of the United States Code or any state-law analogue filed by or against Purchaser, Seller, or Guarantor(s); (ii) insolvency proceeding or other proceeding instituted against Purchaser, Seller or Guarantor(s), and/or any other guarantor for relief for debtors or creditors; (iii) receivership proceeding brought by or against Purchaser, Seller, Guarantor, and/or any other guarantor; and/or (iv) any other legal proceeding or alternative dispute resolution proceeding between any of the Seller and/or Guarantor, on the one hand, and the Purchaser Parties, on the other hand. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>1.11. Alternative Delivery of Receipts.</u>** If Seller or Guarantor knows that for any reason Purchaser will be unable to receive delivery of the Receipts from Seller's account, then Seller must promptly set up another arrangement for delivery of receipts that is authorized by Purchaser. Seller and Guarantor understand and agree that delivery of Receipts made at any other address or method than as specified by Purchaser may result in a delay in processing and/or crediting the delivery of Receipts by Seller.

**<u>1.12 Early Delivery Option</u>** <u>.</u> Seller shall have the option to deliver the Purchased Amount at any time, along with any fees incurred under the Transaction Documents, less Receipts previously delivered. Purchaser may, from time to time, and in the Purchaser's sole discretion, offer discounts for early delivery of Receipts communicated to Seller through one or more customer web interfaces, emails or addenda to the Purchase Agreement. Such discounts will be based on the time elapsed since disbursement of the Purchase Price, the history of the delivery of Receipts, and the remaining amount of Receipts due to be delivered.

**II. REPRESENTATIONS, WARRANTIES AND COVENANTS** Seller and Guarantor represents, warrants and covenants that as of this date and during the term of this Agreement:

**<u>2.1 Financial Condition and Financial Information.</u>** The information and financial statements which have been furnished to Purchaser by Seller and Guarantor, and such future statements which will be furnished hereafter at the request of Purchaser, fairly represent the ownership and operations of the Seller's business and the financial condition of Seller and Guarantor at such dates, and since those dates, there has been no material adverse change, financial or otherwise, in such condition, operation or ownership of Seller or Guarantor (as applicable). Seller and Guarantor are current on any and all lease, rent or mortgage payments due. Seller and Guarantor are currently in compliance with all loans, financing agreements, promissory notes, and/or other obligations of indebtedness, except as disclosed to Purchaser. No material changes, financial or otherwise, in the condition, operation or ownership of Seller and Guarantor (as applicable) are in any way expected or anticipated and Seller and Guarantor do not anticipate closing or selling Seller's business. Neither the Seller nor the Guarantor are party to any pending litigation that is expected to have a material impact on the Seller or Guarantor. Seller has a continuing, affirmative obligation to advise Purchaser of any material change in its financial condition, operation or ownership. Purchaser may request statements at any time during the performance of this Agreement and the Seller shall provide them to Purchaser within five (5) business days. Seller's failure to do so is a material breach of this Agreement.

**<u>2.2 Compliance with Law.</u>** Seller is in compliance and shall comply with all laws, including possession of all necessary permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged.

**<u>2.3 Authorization.</u>** Seller, and the person(s) signing the Transaction Documents on behalf of Seller, have full power and authority to incur and perform the obligations under the Transaction Documents, all of which have been duly authorized.

**<u>2.4 Insurance.</u>** Seller will maintain property, liability, and business interruption insurance and name Purchaser as certificate holder, loss payee and additional insured in amounts and against risks as are satisfactory to Purchaser and shall provide Purchaser proof of such insurance upon request.

**<u>2.5 Tax Obligations.</u>** Seller is currently in compliance with all federal state and local tax laws, has filed all returns, and has paid all taxes due, except as disclosed to Purchaser. No federal, state, or local taxing authority has filed any lien against the assets of the Seller and/or Guarantor. Seller or Guarantor shall pay all taxes owed to federal, state, or local governments when due.

**<u>2.6 Deposit Arrangements and Delivery of Receipts.</u>** Without Purchaser's prior written consent, Seller will not (i) change the account designated for the delivery of Receipts; (ii) set up multiple accounts into which any of the Seller's receipts are deposited or otherwise transferred; (iii) block or stop payment on Purchaser debit; (iv) permit any event to occur that could cause diversion of any of Seller's receipts; (v) or take any other action that could have any adverse effect upon Seller's obligations under the Transaction Documents. Seller will batch out receipts with all payment processors on a daily basis.

**<u>2.7 Change of Name or Location.</u>** Seller will not conduct Seller's business(es) under any name other than as disclosed to the Purchaser or change any of its places of business, or change its jurisdiction or incorporation or organization without ten (10) days prior written notice to Purchaser.

**<u>2.8 Estoppel Certificate.</u>** Seller will at any time, and from time to time, upon at least one (1) day's prior notice from Purchaser to Seller, execute, acknowledge and deliver to Purchaser and/or to any other person, firm or corporation specified by Purchaser, a statement certifying that the Purchase Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications) and stating the dates which the Purchased Amount or any portion thereof has been repaid.

**<u>2.9 No Bankruptcy or Insolvency</u>**. Seller is solvent, no transfer of property is being made by Seller, and no obligation is being incurred by Seller in connection with the sale of Receipts with the intent to hinder, delay, or defraud either present or future creditors of Seller. Seller represents that it is not insolvent and does not contemplate and has not filed any petition for bankruptcy protection under Title 11 of the United States Code or any state-law analogue, and there has been no involuntary petition under such laws brought or pending against Seller. Seller further warrants that it does not anticipate filing any such receivership or bankruptcy petition and it does not anticipate that an involuntary petition will be filed against it.

**<u>2.10 Other Financing.</u>** Seller shall not enter into any arrangement, agreement or commitment for any additional financing, whether in the form of a purchase and sale of receivables, the sale of accounts receivable, or a loan (whether secured or unsecured) with any party other than Purchaser without Purchaser's written consent.

**<u>2.11 Unencumbered Receipts.</u>** Seller has good, complete and marketable title to all Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever or any other rights or interests that may be inconsistent with the transactions contemplated with, or adverse to the interests of Purchaser.

**<u>2.12 Authorization to Obtain Lease Information.</u>** Seller and Guarantor authorize Purchaser to receive pertinent information regarding the commercial lease or mortgage for the physical location of Seller's business (the "Premises") from any applicable lender, leasing company or agent. Upon any Event of Default under this Agreement, as security for the Seller's obligations set forth herein, Seller and/or Guarantor shall, at the request of Purchaser deliver to Purchaser an executed Assignment of Lease covering the Premises in favor of Purchaser.

**<u>2.13. Business Purpose.</u>** Seller is a valid business in good standing under the laws of the jurisdictions in which it is organized and/or operates, and Seller is entering into this Agreement for business purposes and not as a consumer for personal, family or household purposes.

**<u>2.14 Default Under Other Contracts.</u>** Seller's execution of and/or performance under this Agreement will not cause or create an event of default by Seller under any contract with another person or entity.

**<u>2.15. Sale or Dissolution of Seller.</u>** Seller shall not: (a) sell, dispose, transfer or otherwise convey its business, assets and/or any equity interest in Seller; or (b) effectuate the suspension, dissolution, or termination or Seller's business without the express prior written consent of Purchaser, or the written agreement of any purchaser, assignee, or transferee assuming all of Seller's and Guarantor's obligations under the Transaction Documents pursuant to documentation satisfactory to Purchaser (as applicable).

**<u>2.16 Accuracy of Information.</u>** All information provided by Seller and Guarantor to Purchaser in the Transaction Documents, in any application, in all other Seller forms and in response to any request by Purchaser for information whether oral or in writing, is true, accurate and complete in all respects.

**III. EVENTS OF DEFAULT AND REMEDIES**

**<u>3.1 Events of Default.</u>** The occurrence of any of the following events shall constitute an "Event of Default" hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller changes its deposit or banking relationships with any financial institution in any way that interferes with the delivery of the Receipts, including, by way of example and not limitation, using multiple depository accounts to collect Receipts without the prior written consent of Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Seller closes or changes the account(s) designated to collect the Receipts without notice to Purchaser, or otherwise permits any event to occur that could cause diversion of any Receipts to an account other than that designated to collect the Receipts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Seller interrupts the operation of its business in the ordinary course (other than as a result of adverse weather, natural disasters or acts of God) without notice to Purchaser of any planned shutdown or interruption of operations,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller transfers, moves, sells, disposes, transfers or otherwise conveys its business, or all or substantially all of its assets, without: (i) the express prior written consent of Purchaser, and (ii) the written agreement of any purchaser or transferee to the assumption of all of Seller's obligations under the Transaction Documents pursuant to documentation satisfactory to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any debit is rejected or returned due to insufficient funds and Seller fails to respond to Purchase inquiries or to contact Purchaser within five (5) business days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Seller shall violate any term, covenant, or condition in the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any representation or warranty by Seller in the Transaction Documents shall prove to have been incorrect, false or misleading in any material respect when made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Seller or Guarantor sends a notice of termination of any Purchase Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Seller suspends, dissolves or terminates its corporate existence without notice to Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Seller or Guarantor makes or sends notice of any intended assignment, bulk sale or transfer of Seller's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Seller or Guarantor performs any act that reduces the value of any Collateral or Additional Collateral or reduces the value of the Collateral or Additional Collateral granted under the Security Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Seller or Guarantor fails to pay taxes to any federal, state, or local government when due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Seller shall default under any of the terms, covenants and conditions of any other agreement with Purchaser, including those between Purchaser and any business that is affiliated or associated with Seller.

**<u>3.2 Remedies for Default.</u>** In case any Event of Default occurs and is not waived by Purchaser: Purchaser may proceed to protect and enforce its rights or remedies by suit in equity or by action at law, or both, whether for the specific performance of any covenant, agreement or other provision contained herein, or to enforce the discharge of Seller's obligations under the Transaction Document or any other legal or equitable right or remedy. In addition, and without limitation, upon any Event of Default: (a) the full uncollected Purchased Amount and any unpaid fees due shall become due and payable in full immediately; (b) Purchaser may enforce the provisions of the Transaction Documents against the Seller and Guarantor(s); (c) Purchaser may enforce its security interest in the Collateral, Additional Collateral and the Cross Collateral; (d) Purchaser may debit Seller's depository accounts wherever situated by means of ACH debit or facsimile signature on a computer-generated check drawn on Seller's bank account or otherwise; (e) Purchaser may direct any payment or credit card processor to deposit any amounts due to Seller directly to Purchaser; (f) Purchaser may exercise its rights under the Assignment of Lease set forth in Section 2.12; (g) Purchaser may exercise the Power of Attorney set forth in Section 1.7.

All rights, powers and remedies of Purchaser in connection with this Agreement may be exercised at any time by Purchaser after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity. Seller and Guarantor acknowledge and agree that there may be no adequate remedy at law with respect to a breach of the Transaction Documents. Accordingly, Seller and Guarantor agree that Purchaser shall have the right, in addition to any other rights and remedies existing in Purchaser's favor at law or in equity, to enforce Purchaser's rights and obligations under the Transaction Documents not only by an action or actions for damages, but also for an action or actions for specific performance, injunctive and/or other equitable relief without posting of a bond or other security. To the extent authorized by applicable law, Seller and Guarantor hereby agree to toll or waive any relevant statute of limitations in respect of any claims arising under, and/or relating to the Transaction Documents. This section shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>3.3 Costs.</u>** Seller shall pay to Purchaser all reasonable costs associated with (a) a breach by Seller of the Transaction Documents and the enforcement thereof, and (b) the enforcement of Purchaser's remedies set forth herein, including but not limited to (i) expenses, court costs and attorneys' fees of twenty-five percent (25%) of the total amount due to Purchaser or the actual attorney fees incurred, whichever is greater, and (ii) default interest on the total amount due to Purchaser accruing from the date of default at the rate of ten percent (10%) per annum or such other amount as allowed by law.

**<u>3.4 Required Notifications.</u>** Seller is required to give Purchaser fourteen (14) days' prior written notice of: (a) any change in control of the Seller or the sale, transfer or assignment of all or substantially all of the Seller's assets or equity interests; and (b) the suspension, dissolution or termination of its business.

**<u>3.5. Servicer and Default Fees.</u>** Seller shall pay certain fees for services related to origination and servicing of the Transaction Documents as detailed in the Purchase Agreement. Upon the occurrence of any Event of Default, Seller and Guarantor shall be liable for a default fee in the amount stated in the Purchase Agreement, payable on demand in addition to any other fees or charges due under the Transaction Documents.

**IV. MISCELLANEOUS**

**<u>4.1 Modifications; Amendment.</u>** No modification, amendment, waiver or consent of any provision of the Transaction Documents shall be effective unless the same shall be in writing and signed by Purchaser. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.2 Purchaser acting as Agent.</u>** Purchaser has entered into the Transaction Documents as agent (in such capacity, "Agent") for itself and one or more third parties as "co-investors" or "co-purchasers" (each a "Principal"). Agent and each Principal have elected to treat the transaction consummated under the Transaction Documents(the "Transaction") as a single transaction on behalf of separate Principals, and Agent hereby certifies that the portion of the Transaction allocable to the account of each of the Principals (the "Portion") for which it is acting (to the extent that any such Transaction is allocable to the account of more than one Principal) is set forth in one or more addenda to the Transaction Documents, which may be provided to Seller upon request.

All references to "Purchaser" "Seller" or "Guarantor," as the case may be, in the Transaction Documents shall be subject to the provisions of this section and shall be construed to reflect that (i) each Principal shall have, in connection with the Transaction entered into by the Agent on its behalf, all of the rights, responsibilities, privileges and obligations of a "Purchaser" directly entering into such Transaction with the other parties under each of the Transaction Documents and (ii) Agent's Principals have designated Agent (acting directly or through the Authorized Subservicing Agent) as their sole agents for performance of Purchaser's obligations to Seller and for receipt of performance by Seller of its obligations to Purchaser in connection with the Transaction (including, among other things, as Agent for each Principal in connection with transfers of cash or other property and as agent for giving and receiving all notices under the Transaction Documents). Both Agent and its Principals shall be deemed "parties" to the Transaction Documents and all references to a "party" or "either party" in any Transaction Document shall be deemed revised accordingly.

The parties hereto acknowledge and agree that any assignment, pledge and/or grant to Purchaser by the Seller or a Performance Guarantor of a security interest in and to any property and assets (including the Collateral and the Additional Collateral) pursuant to any of the applicable Transaction Documents to secure the payment and/or performance of any of their respective and/or joint obligations, shall be deemed to have been made to the Purchaser for and on behalf of itself and any other Principal. Purchaser hereby agrees to hold all Collateral and Additional Collateral hereafter delivered to it pursuant to the Transaction Documents, for itself and for the benefit of the Principals, on and subject to the terms and conditions set forth in the Transaction Documents. In its capacity, the Agent and Sub-Servicing Agent are each a "representative" of each of the Principals within the meaning of the term "secured party" as defined in the UCC. In addition to the representations and warranties set forth in the Transaction Documents, Agent hereby makes the following representations and warranties, which shall continue during the term of any Transaction: Principal has duly authorized Agent to execute and deliver the Transaction Documents on its behalf, has the power to so authorize Agent and to enter into the Transaction contemplated by the Transaction Documents and to perform the obligations of Purchaser, and has taken all necessary action to authorize such execution and delivery by Agent and such performance by it. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.3 Sub-Servicing Agent.</u>** Purchaser may contract with one or more general agents to service the Transaction Documents (the "Sub-Servicing Agent") that will provide customer service, treasury, administrative, bookkeeping, reporting, collections, and support services, but not limited to, background checks, credit checks, general underwriting review, filing UCC-1 security interests and any other UCC documentation, for the Purchaser. Seller and Guarantor(s) acknowledge and agree that Purchaser has granted Sub-Servicing Agent all rights and authority as its general agent to take any and all actions to enforce the Purchase Agreement, through legal actions in the name of the Purchaser or otherwise, and to assert and/or defend against any and all claims arising from or relating to the Purchase Agreement. Any and all authorizations and rights granted to Purchaser under the Transaction Documents are hereby granted to Sub-Servicing Agent, as servicer and general agent of Purchaser. In no event will the Sub-Servicing Agent be liable for any claims made against the Purchaser or under any legal theory for lost profits, lost revenues, lost business opportunity, exemplary, punitive, actual, special, incidental, indirect or consequential damages, each of which is waived by the Seller and Guarantor(s). This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.4 Notices.</u>** All notices, requests, consent, demands and other communications under the Transaction Documents and any addendum shall be delivered by ordinary mail to the respective parties at the addresses set forth in the Purchase Agreement and shall become effective upon delivery. The Parties hereto may also send such notices, requests, consent, demands and other communications via facsimile or electronic mail at such numbers and email addresses communicated by the parties hereto in writing or as reflected in the records of the Sub-Servicing Agent. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.5 Binding Effect; Governing Law, Venue and Jurisdiction.</u>** Seller and Guarantor agree that any suit, action or proceeding to enforce or arising out of or relating to this Agreement shall be brought in any court in the Commonwealth of Virginia or in the United States District Court for the Eastern District of Virginia (the "Acceptable Forums"), and Seller and Guarantor waive personal service of process. Seller and Guarantor agree that the Acceptable Forums are convenient to them, submit to the jurisdiction of the Acceptable Forums and waive any and all objections to jurisdiction or venue. In the event a legal proceeding concerning this Agreement is initiated in any other forum, Seller and Guarantor waive any right to oppose any motion or application made by Purchaser to transfer such proceeding to an Acceptable Forum, or to dismiss the action on the grounds of *forum non conveniens*.

This Agreement and any claim, dispute or controversy (whether in contract, tort, or otherwise) at any time arising from or relating to this Agreement is governed by, and this Agreement will be construed in accordance with Virginia law (to the extent not preempted by federal law) without regard to internal principles of conflict of laws. The legality, enforceability and interpretation of this Agreement and the amounts contracted for under this Agreement will be governed by the laws of the Commonwealth of Virginia. Seller and Guarantor understand and agree that (i) Purchaser and/or Kapitus Servicing are located in Virginia, (ii) all final credit decisions are made from Virginia, (iii) the Agreement is made in Virginia (that is, no binding contract will be formed until Seller's signed Agreement is received and accepted in Virginia) and (iv) Seller's delivery of Receipts are not accepted until received in Virginia. This section shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.6. Counterparts; Facsimile and PDF Acceptance.</u>** Each of the Transaction Documents may be executed in one or more counterparts, each of which counterparts shall be deemed to be an original of each such Transaction Document, and all such counterparts for the respective Transaction Document shall constitute one and the same such Transaction Document. For purposes of the execution of each of the Transaction Documents, electronically transmitted PDFs, facsimile copies of signatures, or electronically transmitted copies of signatures complying with the US Federal ESIGN Act of 2000 (e.g. www.docusign.com) shall be treated as original signatures for all purposes. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.7 Waiver of Remedies.</u>** No failure on the part of Purchaser to exercise, and no delay in exercising, any right under the Transaction Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right under the Transaction Documents preclude any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.8 Solicitations.</u>** Seller and Guarantor authorize the Purchaser Parties to communicate with, solicit and/or market to Seller and Guarantor via regular mail, telephone, electronic mail and facsimile in connection with the provision of goods or services by the Purchaser Parties, their affiliates or any third party that the Purchaser Parties share, transfer, exchange, disclose or provide information with and will hold the Purchaser Parties harmless against any and all claims pursuant to the federal CAN-SPAM ACT of 2003 (Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003), the Telephone Consumer Protection Act (TCPA), and any and all other state or federal laws relating to transmissions or solicitations by and any of the methods described above. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.9 Survival of Representation, etc.</u>** Except as otherwise provided herein, all representations, warranties and covenants herein, including those in the Security Agreement and the Guaranty shall survive the execution and delivery of the Purchase Agreement and shall continue in full force until all obligations under the Purchase Agreement shall have been satisfied in full and the Purchase Agreement shall have terminated. Notwithstanding any terms to the contrary contained herein: (i) the Security Agreement and the Guaranty shall survive, in their entirety, the delivery of the Purchased Amount and the termination of the Purchase Agreement; and (ii) in the event that Purchaser must return any amount paid by Seller, Guarantor, any other guarantor, entity or person with respect to the obligations arising under the Transaction Documents, including without limitation, arising from or relating to, Seller, Guarantor, any other guarantor, entity or person becoming subject to a proceeding under the United States Bankruptcy Code or any similar law (whether arising under Federal or State law), and/or any other legal proceeding or alternative dispute resolution proceeding, all representations, warranties and covenants and other obligations under the Transaction Documents and any addendum thereof (if any) shall remain in full force and effect and Seller and Guarantor shall be obligated for any such amounts repaid, as well attorneys' fees, costs and interest in connection with such proceeding. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.10 Severability, Savings.</u>** In case any of the provisions in the Transaction Documents are found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of any other provision contained therein shall not in any way be affected or impaired and the Transaction Documents shall be construed as if such provision had not been included. If any provisions of these Sale Terms and Conditions are in conflict with any other agreement to which any parties are subject, the provisions of the Purchase Agreement shall control. Should any provision of the Transaction Documents require judicial interpretation, the court interpreting or construing the provision shall not apply the rule of construction that a document is to be construed more strictly against one Party. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.11 Entire Agreement.</u>** The Transaction Documents embody the entire agreement between Seller, Guarantor(s), and Purchaser and supersede all prior agreements and understandings relating to the subject matter hereof. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.12 JURY TRIAL WAIVER.</u> TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTION DOCUMENTS OR THE ENFORCEMENT HEREOF. THE PARTIES HERETO ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS. THIS PROVISION SHALL SURVIVE, IN ITS ENTIRETY, THE DELIVERY OF THE RECEIPTS PURCHASED AND THE TERMINATION OF THE PURCHASE AGREEMENT.**

**<u>4.13 CLASS ACTION WAIVER.</u> THE PARTIES HERETO WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST ANY OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION. TO THE EXTENT A PARTY IS PERMITTED TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION, THE PARTIES AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS' FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION AND (2) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION. THIS PROVISION IS A MATERIAL INDUCEMENT FOR PURCHASER TO ENTER INTO THIS AGREEMENT. THIS PROVISION SHALL SURVIVE, IN ITS ENTIRETY, THE DELIVERY OF THE RECEIPTS PURCHASED AND THE TERMINATION OF THE PURCHASE AGREEMENT.**

**<u>4.14 Successors; Assigns; Amendment.</u>** Purchaser and any Principal may assign, transfer or sell its right to receive the Purchased Amount or delegate its duties hereunder, either in whole or in part. Purchaser reserves the rights to sell or assign this Agreement with or without prior written notice to Seller. Seller shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of Purchaser which consent may be withheld in Purchaser's sole discretion. The Transaction Documents shall be binding upon and inure to the benefit of the heirs, executors, trustees, administrators, legal representatives, successors, transferees and assigns of the Parties. This provision shall survive, in its entirety, the delivery of the Receipts purchased and the termination of the Purchase Agreement.

**<u>4.15 ARBITRATION.</u> *PLEASE READ THIS PROVISION OF THE AGREEMENT CAREFULLY.* A SEPARATE AGREEMENT BETWEEN THE PARTIES PROVIDES THAT DISPUTES MAY BE RESOLVED BY BINDING ARBITRATION. ARBITRATION REPLACES THE RIGHT TO GO TO COURT, HAVE A JURY TRIAL OR INITIATE OR PARTICIPATE IN A CLASS ACTION. IN ARBITRATION, DISPUTES ARE RESOLVED BY AN ARBITRATOR, NOT A JUDGE OR JURY. ARBITRATION PROCEDURES ARE SIMPLER AND MORE LIMITED THAN IN COURT.**

**Signatures on Next Page**

SELLER AND GUARANTOR ACKNOWLEDGE AND AGREE TO BE BOUND BY THE SALE TERMS AND CONDITIONS. THE TERMS, DEFINITIONS, CONDITIONS, AND INFORMATION SET FORTH IN THE "PURCHASE AGREEMENT", "SECURITY AGREEMENT", AND THE "GUARANTY" (AS APPLICABLE) ARE HEREBY SUBJECT TO AND MADE A PART OF THE SALE TERMS AND CONDITIONS. CAPITALIZED TERMS NOT DEFINED IN THE SALE TERMS AND CONDITIONS, SHALL HAVE THE MEANING SET FORTH IN THE "PURCHASE AGREEMENT," "SECURITY AGREEMENT" OR "GUARANTY," AS APPLICABLE.

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| **SELLER** | **SELLER** |  |
| By: | Henry Levinski, Owner | /s/ Henry Levinski |
|  | (Print Name and Title) | (Signature) |

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**GUARANTOR**

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|:---|:---|
| By: | Henry Levinski |
|  | (Print Name) (Signature) |

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**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

USE OF PROCEEDS CERTIFICATION

*This Use of Proceeds Certification is part of (and incorporated by reference into) the Purchase Agreement.*

Each signatory below, on behalf of each Seller or Guarantor, hereby certifies the following to the Purchaser:

1. The entirety of the Purchase Price will be used in the ordinary course of business.

2. The entirety of the Purchase Price will be used exclusively for a Business Purpose and no other. A Business
Purpose as applied to use of proceeds obtained under this Purchase Agreement refers solely to the purchase and acquisition of specific
products or services used for the following purposes only: (i) working capital, (ii) business insurance (but not self-insurance programs),
(iii) franchise fees, (iv) employee training, (v) the purchase of equipment, (vi) inventory, (vii) business supplies and raw materials,
and (viii) the construction, renovation or improvement of facilities (but not the purchase of real estate). Business Purpose does not
include: (a) payment for, or purchase of, any items, goods, materials real property, personal property or services for personal, individual
or household use; or (b) use of funds for any proceeding under the United States Bankruptcy Code or any similar law (whether arising under
Federal or State law) and/or any other legal proceeding or alternative dispute resolution proceeding.

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| | | |
|:---|:---|:---|
| **SELLER** | **SELLER** |  |
| By: | Henry Levinski, Owner | /s/ Henry Levinski |
|  | (Print Name and Title) | (Signature) |

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**GUARANTOR**

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|:---|:---|
| By: | Henry Levinski |
|  | (Print Name) (Signature) |

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**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**SECURITY AGREEMENT**

**<u>SECURITY INTEREST</u>** . To secure Seller's delivery of the Receipts purchased and other obligations to Purchaser under the Transaction Documents, Seller hereby grants to Purchaser a security interest in: (i) all accounts, accounts receivable, contracts, real property leases, notes, bills, acceptances, chooses in action, chattel paper, instruments, documents and other forms of obligations at any time owing to the Seller arising out of goods sold or leased or for services rendered by Seller, the proceeds thereof and all of Seller's rights with respect to any goods represented thereby, whether or not delivered, goods returned by customers and all rights as an unpaid vendor or lienor, including rights of stoppage in transit and of recovering possession by proceedings including replevin and reclamation, together with all customer lists, books and records, ledger and account cards, computer tapes, software, disks, printouts and records, whether now in existence or hereafter created, relating thereto (collectively referred to hereinafter as "Receivables"); (ii) all inventory, including without limitation, all goods manufactured or acquired for sale or lease, and any piece goods, raw materials, work in process and finished merchandise, findings or component materials, and all supplies, goods, incidentals, office supplies, packaging materials and any and all items used or consumed in the operation of the business of Seller or which may contribute to the finished product or to the sale, promotion and shipment thereof, in which Seller now or at any time hereafter may have an interest, whether or not the same is in transit or in the constructive, actual or exclusive occupancy or possession of Seller or is held by Seller or by others for Seller's account (collectively referred to hereinafter as "Inventory"); (iii) goods, including without limitation, all machinery, equipment, parts, supplies, apparatus, appliances, tools, fittings, furniture, furnishings, fixtures and articles of tangible personal property of every description now or hereafter owned by the Seller or in which Seller may have or may hereafter acquire any interest, at any location (collectively referred to hereinafter as "Equipment"); (iv) general intangibles in which the Seller now has or hereafter acquires any rights, including but not limited to, causes of action, corporate or business records, inventions, designs, patents, patent applications, trademarks, trademark registrations and applications therefor, goodwill, trade names, trade secrets, trade processes, copyrights, copyright registrations and applications therefor, licenses, permits, franchises, customer lists, computer programs, all claims under guaranties, tax refund claims, rights and claims against carriers and shippers, leases, claims under insurance policies, all rights to indemnification and all other intangible personal property and intellectual property of every kind and nature (collectively referred to hereinafter as "Intangibles"); (v) all the capital stock, bonds, notes, partnership interests, member interests in limited liability companies, and other securities, if any, held of record or beneficially by the Seller, including without limitation the capital stock of all subsidiaries of the Seller, and the Seller's interests in all securities brokerage accounts (collectively referred to hereinafter as "Investments"); (vi) all cash on hand and on deposit in banks, trust companies and similar institutions, and all property accounted for in the Seller's financial statements as "cash equivalents" (collectively referred to hereinafter as "Cash"); (vii) all other assets, proceeds and items not directly referred to herein as those terms are defined in Article 9 of the Uniform Commercial Code under applicable federal and state law (collectively referred to hereinafter as "UCC Article 9 Items"); (viii) all accessions to, substitutions for, and all replacements, products and proceeds of the Receivables, Inventory, Equipment, Intangibles, Investments, Cash and UCC Article 9 Items (collectively referred to hereinafter as "Collateral"), including without limitation proceeds of insurance policies insuring the Collateral; and (ix) books and records relating to any of the Collateral (including without limitation, customer data, credit files, computer programs, printouts, and other computer materials and records of the Seller pertaining to any of the Collateral), whether now or hereafter owned or acquired by Seller and wherever located; and all proceeds of the foregoing. If the Transaction Documents or any addenda identify more than one Seller, this Security Agreement applies to each Seller, jointly and severally.

Seller and Guarantor acknowledge and agree that any security interest granted to Purchaser under any other agreement between Seller and Purchaser will secure the obligations hereunder, and that the Seller's obligations secured by this Security Agreement, and the Collateral granted hereunder, shall be perfected under any previously filed UCC-1 or UCC-3 statement, perfecting Purchaser's interest in the Collateral.

Seller and Guarantor further acknowledge and agree that if, in the future, Seller enters into any agreement with Purchaser, any security interest granted to Purchaser under such future agreements will relate back to this Security Agreement, and that the Seller and/or Guarantor's obligations, and the Collateral granted, under such future agreements, shall relate back to, be perfected under, and made a part of, any previously filed UCC-1 or UCC-3 statement, perfecting Purchaser's interest in the Collateral.

**<u>CROSS-COLLATERAL</u>** . To secure Seller's delivery of the Receipts purchased and other obligations to Purchaser under the Purchase Agreement, Seller and each Guarantor hereby grants Purchaser a security interest in all assets and equity interests in the following collateral: **China Infrastructure Construction Corp, PRECISION RESEARCH INSTITUTE, LLC** (the "<u>Additional Collateral</u>"). Seller and each Guarantor understands that Purchaser will have a security interest in the aforesaid Additional Collateral upon execution of this Security Agreement.

Each of Seller and each Guarantor acknowledges and agrees that any security interest granted to Purchaser under any other agreement between Seller and/or Guarantor and Purchaser will secure the obligations hereunder, and that the Seller and/or Guarantor's payment and performance obligations under the Purchase Agreement, and secured by this Security Agreement, and the Collateral and Additional Collateral granted hereunder, shall be perfected under any previously filed UCC-1 or UCC-3 statement, perfecting Purchaser's interest in the Collateral and Additional Collateral.

Each of Seller and each Guarantor further acknowledges and agrees that, if Seller and/or Guarantor enter into future agreements with Purchaser, any security interest granted to Purchaser under such future agreements will relate back to this Security Agreement, and that the Seller and/or Guarantor's obligations, and the Collateral and Additional Collateral granted, under any such future agreements, shall relate back to, be perfected under, and made a part of, any previously filed UCC-1 or UCC-3 statement, perfecting Purchaser's interest in the Collateral and Additional Collateral.

Each of Seller and each Guarantor agree to execute any documents or take any action in connection with this Security Agreement as Purchaser deems necessary to carry out the purpose of such agreements including, without limitation, to perfect or maintain Purchaser's security interest in the Collateral and the Additional Collateral, including the execution of any account control agreements. Each of Seller and each Guarantor hereby authorizes Purchaser to file any financing statements deemed necessary by Purchaser to perfect or maintain Purchaser's security interest, which financing statement may contain notification that Seller and Guarantor have granted a negative pledge to Purchaser with respect to the Collateral and the Additional Collateral, and that any subsequent Purchaser or lienor may be tortiously interfering with Purchaser's rights. Each Seller and each Guarantor shall be jointly and severally liable for and shall pay to Purchaser upon demand all costs and expenses, including but not limited to attorney's fees and costs, which may be incurred by Purchaser in protecting, preserving and enforcing Purchaser's security interest and rights.

**<u>NEGATIVE PLEDGE</u>.** Seller and each Guarantor agrees not to create, incur, assume, or permit to exist, directly or indirectly, any additional financings, loans, lien or other encumbrance of any kind with respect to any of the Collateral or the Additional Collateral, as applicable, without the prior written permission of Purchaser.

**<u>CERTIFICATED COLLATERAL</u>.** If any of the Collateral and/or Additional Collateral is now or in the future evidenced or represented by a certificate or certificates, each Seller and each Guarantor shall immediately, and without the need to be notified, deliver such certificate(s) to Purchaser, duly endorsed in a manner satisfactory to Purchaser, to be held as Collateral and/or Additional Collateral pursuant to this Security Agreement.

**<u>CONSENT TO ENTER PREMISES AND ASSIGN LEASE</u>** . Purchaser shall have the right to cure Seller's default in the payment of rent for the Premises on the following terms: In the event Seller or Guarantor are served with papers in an action against Seller for nonpayment of rent or for summary eviction, Seller or Guarantor shall promptly provide

Purchaser with such papers and Purchaser may execute its rights and remedies under the Assignment of Lease pursuant to Section 2.12 of the Sale Terms and Conditions. Seller also agrees that Purchaser may enter into an agreement with Seller's landlord giving Purchaser the right to: (a) enter Seller's Premises and to take possession of the fixtures, equipment and other Collateral therein for the purpose of protecting and preserving same; and (b) to assign Seller's lease to another qualified Seller capable of operating a business comparable to Seller's at such Premises.

**<u>REMEDIES</u>** . Upon any Event of Default, Purchaser may pursue any remedy available at law (including those available under the provisions of the UCC), or in equity to collect, enforce, or satisfy any obligations then owing, whether by acceleration or otherwise.

THE TERMS, DEFINITIONS, CONDITIONS AND INFORMATION SET FORTH IN THE "PURCHASE AGREEMENT", "SALE TERMS AND CONDITIONS", AND THE "GUARANTY" (AS APPLICABLE) ARE HEREBY INCORPORATED IN AND MADE A PART OF THIS SECURITY AGREEMENT. CAPITALIZED TERMS NOT DEFINED IN THIS SECURITY AGREEMENT, SHALL HAVE THE MEANING SET FORTH IN THE "PURCHASE AGREEMENT," "SALE TERMS AND CONDITIONS" OR "GUARANTY," AS APPLICABLE.

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| | | |
|:---|:---|:---|
| **SELLER** | **SELLER** |  |
| By: | Henry Levinski, Owner | /s/ Henry Levinski |
|  | (Print Name and Title) | (Signature) |

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**GUARANTOR**

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| | |
|:---|:---|
| By: | Henry Levinski |
|  | (Print Name) (Signature) |

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**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**Contract# 8340111**

**GUARANTY**

**<u>PERSONAL GUARANTY OF PERFORMANCE</u>** . Each undersigned Guarantor hereby unconditionally guarantees to Purchaser the Merchant's performance of all of the representations, warranties, covenants made by Seller in the Purchase Agreement, the Sale Terms and Conditions, the Security Agreement, Guaranty, and Agreement to Arbitrate (collectively, the "Transaction Documents"), as each may be renewed, amended, extended or otherwise modified from time to time (the "Guaranteed Obligations"). Guarantor shall be liable for and Purchaser may charge and collect all costs and expenses, including but not limited to attorneys' fees and court costs, which may be incurred by Purchaser in connection with the collection of any or all of the Guaranteed Obligations from Guarantor or the enforcement of the Transaction Documents. (It is understood by all parties that Guarantors are only guaranteeing that they will not take any action or permit the Seller to take any action that is a breach of the Transaction Documents and is not making an absolute guaranty of repayment.)

**<u>GUARANTOR WAIVERS</u>** . In the event that Seller fails to deliver Receipts generated due to Guarantor's actions or malfeasance, or Guarantor otherwise fails to perform any obligation or covenant under the Transaction Documents, Purchaser may enforce its rights under this Guaranty or any of the other Transaction Documents without first seeking to obtain payment from the Seller, any other guarantor, or through the Security Agreement.

Purchaser does not have to notify Guarantor of any of the following events, and Guarantor will not be released from its obligations under this Guaranty, if it is not notified of: (i) Merchant's failure to deliver timely the Receipts due or to pay any amount owed under the Purchase Agreement; (ii) any material or adverse change in Merchant's financial condition or business operations; (iii) any sale or other disposition of any collateral securing the Guaranteed Obligations, including all collateral listed in the Security Agreement, or any other guarantee of the Guaranteed Obligations; (iv) Purchaser's acceptance of this Guaranty; (v) any renewal, extension or other modification of any of the Transaction Documents and/or Merchant's other obligations to Purchaser; and (vi) the Purchaser's pursuit and/or enforcement of any rights and remedies, available at law and in equity, relating to, and/or arising from, the Transaction Documents.

In addition, Purchaser may take any of the following actions without releasing Guarantor from any of its obligations under this Guaranty: (i) renew, extend or otherwise modify any of the Transaction Documents or Merchant's other obligations to Purchaser; (ii) release Seller from its obligations to Purchaser; (iii) sell, release, impair, waive or otherwise fail to realize upon, any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations; (iv) foreclose on any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations in a manner that impairs or precludes the right of Guarantor to obtain reimbursement for payment under this Guaranty; and (v) pursuit and/or enforcement of any rights and remedies, available at law and in equity, relating to, and/or arising from, the Transaction Documents. Until all of Merchant's obligations to Purchaser under any of the Transaction Documents are satisfied in full, Guarantor shall not seek reimbursement from Seller or any other guarantor for any amounts paid by Guarantor under any of the Transaction Documents.

Guarantor permanently waives and shall not seek to exercise the following rights that Guarantor may have against Merchant, any other guarantor or third party, any collateral, or any other real or personal property for any amounts paid by Guarantor, any other guarantor, or third party, or acts performed by Guarantor, any other guarantor, or third party, under the Transaction Documents including, without limitation: (i) subrogation; (ii) reimbursement; (iii) performance; (iv) indemnification; or (v) contribution. In the event that Purchaser must return any amount paid by Merchant, any guarantor, entity, or person with respect to the Guaranteed Obligations, including, without limitation, any Merchant, guarantor, entity or person becoming subject to a proceeding under the United States Bankruptcy Code

**Contract# 8340111**

or any similar law, (whether arising under Federal or State law), and/or any other Insolvency Proceeding, legal proceeding or alternative dispute resolution proceeding, the Guaranteed Obligations under this Guaranty shall remain in full force and effect and Guarantor shall be obligated for any such amounts repaid as well as attorneys' fees, costs, and interest in connection with such proceeding.

**<u>GUARANTOR ACKNOWLEDGEMENT</u>** . Guarantor acknowledges that: (i) he/she understands the seriousness of the provisions of this Guaranty; (ii) he/she has had a full opportunity to consult with counsel of his/her choice; and (iii) he/she has consulted with counsel of his/her choice or has decided not to avail himself/herself of that opportunity.

**<u>JOINT AND SEVERAL LIABILITY</u>** .. The obligations hereunder of the persons or entities constituting Guarantor under this Guaranty are joint and several.

**CONSENT TO RECEIVE AUTODIALED AND PRERECORDED CALLS AND MESSAGES**

PURCHASER, Kapitus Servicing and their subsidiaries and affiliates (collectively, "KAPITUS") may from time to time notify applicant(s) of various promotional offers and other marketing information, or contact Merchant(s) and Guarantor(s) in connection with the servicing of the Transaction Documents, or in connection with any default under the Transaction Documents. By signing this Guaranty, Guarantor(s) expressly consent and authorize KAPITUS to call, send text messages, and/or send other electronic messages (including prerecorded or artificial voice messages) using an automatic telephone dialing system to any telephone number provided by Merchant(s) or Guarantor(s) in the Transaction Documents, any and all applications or any administrative form or other means, including cellular phone numbers and landlines, regardless of their inclusion on any do not call list, for purposes of servicing, collections, marketing or promoting any product offered by KAPITUS. Guarantor(s) further expressly consent and authorize KAPITUS to record all calls with KAPITUS. Please note that you are not required to consent to be called for marketing or promotional purposes in order to qualify for financing or obtain any other products or services from KAPITUS. If you do not agree to be called for marketing or promotional purposes, please call (844) 547-9396 or email DNC@kapitus.com.

THE TERMS, DEFINITIONS, CONDITIONS AND INFORMATION SET FORTH IN THE "PURCHASE AGREEMENT", "SALE TERMS AND CONDITIONS", AND THE "SECURITY AGREEMENT" (AS APPLICABLE) ARE HEREBY INCORPORATED IN AND MADE A PART OF THIS GUARANTY. CAPITALIZED TERMS NOT DEFINED IN THIS GUARANTY SHALL HAVE THE MEANING SET FORTH "PURCHASE AGREEMENT", "SALE TERMS AND CONDITIONS", AND THE "SECURITY AGREEMENT," AS APPLICABLE.

**GUARANTOR**

---

| | |
|:---|:---|
| By: | Henry Levinski |
|  | (Print Name) (Signature) |

---

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**<u>AGREEMENT TO ARBITRATE</u>**

***PLEASE READ THIS AGREEMENT CAREFULLY.*** **THIS AGREEMENT TO ARBITRATE ("AGREEMENT") PROVIDES THAT DISPUTES BETWEEN STRATEGIC FUNDING SOURCE, INC. D/B/A KAPITUS AND ITS SUBSIDIARIES AND AFFILIATES, INCLUDING BUT NOT LIMITED TO KAPITUS LLC AND KAPITUS SERVICING, INC. (COLLECTIVELY, "KAPITUS"), ON ONE HAND, AND PHARMACOLOGY UNIVERSITY FW, LLC/ HENRY LEVINSKI/ DANTE PICAZO, D/B/A PHARMACOLOGY UNIVERSITY AND HENRY LEVINSKI, (COLLECTIVELY, "YOU" OR "MERCHANT") (EACH A "PARTY" AND TOGETHER WITH KAPITUS, "THE PARTIES") MAY BE RESOLVED BY BINDING ARBITRATION.**

**ARBITRATION REPLACES THE RIGHT TO GO TO COURT, HAVE A JURY TRIAL OR INITIATE OR PARTICIPATE IN A CLASS ACTION. IN ARBITRATION, DISPUTES ARE RESOLVED BY AN ARBITRATOR, NOT A JUDGE OR JURY. ARBITRATION PROCEDURES ARE SIMPLER AND MORE LIMITED THAN IN COURT. THIS AGREEMENT IS GOVERNED BY THE FEDERAL ARBITRATION ACT ("FAA"), AND SHALL BE INTERPRETED IN THE BROADEST WAY THAT LAW WILL ALLOW.**

**I.** **Covered Claims.** 

**a**. You or Kapitus may arbitrate any claim, dispute or controversy between the Parties arising out of and/or
related to: (i) this Agreement; (ii) any other agreement between the Parties; and/or (iii) the relationship between the Parties, whether
or not related to a contract between them ("Claims").

**b.** **If arbitration is chosen by any Party in accordance with Section III below, no Party will have the right to litigate the Claims in court or to have a jury trial on the Claims.** 

**c**. Except as stated below, all Claims are subject to arbitration, no matter what legal theory they are based
on or what remedy (damages, or injunctive or declaratory relief) they seek, including Claims based on contract, tort (including intentional
tort), fraud, agency, Merchant's or Kapitus's negligence, statutory or regulatory provisions, or any other sources of law;
Claims made as counterclaims, cross-claims, third-party claims, interpleaders or otherwise; Claims made regarding past, present, or future
conduct; and Claims made independently or with other claims. This also includes Claims made by or against anyone connected with Kapitus
or Merchant or claiming through Kapitus or Merchant, or by someone making a claim through Kapitus or Merchant, such as a co-applicant,
authorized user, employee, agent, representative or an affiliated/parent/subsidiary company. Threshold issues of whether any claim is
arbitrable also are subject to arbitration in accordance with this Agreement.

**II.** **Arbitration Limits.** 

**a**. Claims brought as part of a class action, private attorney general or other representative action can
be arbitrated only on an individual basis. The arbitrator has no authority to arbitrate any claim on a class or representative basis and
may award relief only on an individual basis. If arbitration is chosen by any Party, neither Merchant nor Kapitus may pursue a Claim as
part of a class action or other representative action.

**b**. Claims of two or more persons may not be combined in the same arbitration. However, applicants, co-applicants,
authorized users on a single account and/or related accounts, or corporate affiliates or entities under common ownership or control of
a Party are deemed one person for purposes of this Agreement.

**III.** **How Arbitration Works.** 

a. Arbitration shall be conducted by the American Arbitration Association ("AAA") according to
this arbitration provision and the applicable AAA Commercial Arbitration Rules in effect when the claim is filed ("AAA Rules"),
except where those rules conflict with this arbitration provision. Merchant can obtain copies of the AAA Rules at the AAA's website
(www.adr.org). Merchant or Kapitus may choose to have a hearing, appear at any hearing by phone or other
electronic means, and/or be represented by counsel. Notwithstanding any terms to the contrary, any in-person hearing will be held in Arlington,
Virginia. The arbitration shall be conducted and the award shall be rendered in English.

b. Arbitration may be requested any time, even where there is a pending lawsuit, unless discovery has fully
and finally concluded, and/or a final judgment entered. Neither Merchant nor Kapitus waives the right to arbitrate by filing or serving
a complaint, answer, counterclaim, or motion in a lawsuit. To choose arbitration, a Party must file a motion to compel arbitration in
a pending matter or commence arbitration by submitting the required AAA forms and requisite filing fees to the AAA.

c. The arbitration shall be conducted by a single arbitrator agreed to by the Parties within twenty (20)
days of receipt by respondent of the request for arbitration (unless an extended time period is agreed to by the Parties). In the event
the Parties are unable to agree upon the selection of the arbitrator, the arbitrator shall be selected in accordance with this arbitration
provision and the AAA Rules for appointing an arbitrator from the AAA National Roster. The selected arbitrator may limit discovery. The
arbitrator shall not apply any federal or state rules of civil procedure for discovery, but the arbitrator shall honor claims of privilege
recognized at law and shall take reasonable steps to protect account information and other confidential information of any Party if requested
to do so. Except as may be required by law, neither a Party nor the arbitrator may disclose the existence, content or results of any arbitration
without the prior written consent of both parties, unless to protect or pursue a legal right. The arbitrator shall apply the substantive
laws of the jurisdiction specified in any contract between the parties. If no jurisdiction is specified or if multiple jurisdictions are
specified in various contracts among the Parties, the substantive laws of the Commonwealth of Virginia shall apply, without regard to
any applicable principals of conflicts of law.

d. The arbitrator shall make any award in writing and, if requested by Merchant or Kapitus, shall include
a reasoned opinion for the award. An arbitration award shall decide the rights and obligations only of the parties named in the arbitration,
and shall not have any bearing on any other person or dispute.

e. The arbitrator shall have no authority to award punitive damages, consequential damages, or other damages
not measured by the prevailing Party's actual damages, except as required by statute or allowed under any agreement between the
Parties.

**IV.** **Paying for Arbitration Fees.** 

a. Arbitration fees will be allocated according to the applicable AAA Rules. All parties are responsible
for their own attorney's fees, expert fees and any other expenses unless the arbitrator awards such fees or expenses to Kapitus
based on a contract between the parties or applicable law.

b. The Parties agree that failure or refusal of a Party to pay its required share of the deposits for arbitrator
compensation or administrative charges shall constitute a waiver by that Party to present evidence or cross-examine witnesses. In such
event, the other Party shall be required to present evidence and legal argument as the arbitrator(s) may require for the making of an
award. Such waiver shall not allow for a default judgment against the non-paying Party in the absence of evidence presented as provided
for above.

**V.** **The Final Award.** 

**a.** Any award rendered by the arbitrator shall be final, and binding on the Parties, and may be entered and
enforced in any court having jurisdiction, and any court where a Party or its assets is located (to which jurisdiction the Parties consent
for the purposes of enforcing such award) unless a Party appeals such award in writing to the AAA within 30 days of notice of the award
pursuant to the AAA's Optional Appellate Arbitration Rules. The arbitration appeal shall be determined by a panel of 3 arbitrators.
The panel will consider all facts and legal issues anew based on the same evidence presented in the prior arbitration and will make decisions
based on a majority vote. Arbitration fees for the arbitration appeal shall be allocated according to the applicable AAA Rules. An award
by a panel on appeal is final. A final award is subject to judicial review as provided by applicable law.

**VI.** **Miscellaneous.** 

**a.**  **<u>Survival.</u>** This Agreement shall survive: (i) termination of the account or the relationship
between Merchant and Kapitus; (ii) repayment of any amounts owed by Merchant to Kapitus; (iii) the termination of any other agreement
between Merchant and Kapitus; (iv), the filing of any petition or institution of any proceeding by or against any Party under any provisions
of the Bankruptcy Reform Act, Title 11 of the United States Code, or any other similar law relating to bankruptcy, insolvency or other
relief for debtors, or general affecting creditor's rights or seeking the appointment of a receiver, trustee, custodian, administrator
or liquidator of or for any Party's assets; (v) any sale, transfer and/or assignment of Merchant's account with Kapitus, or
amounts owed on Merchant's account, to another person or entity; (vi) the closure, suspension, dissolution or termination of Merchant's
business; and (vi) the sale, transfer, and/or assignment of Merchant's business, any interest therein that constitutes a change
of control in such business, and/or substantially all of Merchant's assets.

**b.**  **<u>Severability.</u>** If any part of this Agreement is deemed invalid or unenforceable, the other
terms shall remain in force, except that there can be no arbitration and/or litigation of a class or representative Claim.

**c.**  **<u>Entire Agreement, Amendment, Successors, and Assigns.</u>** This Agreement contains the entire
understanding among the Parties concerning the subject matter hereof. No representation, promise, statement of intention has been made
by any Party concerning the subject matter hereof that is not embodied in this Agreement, and no Party shall be bound by, or liable for,
any such alleged representation, promise or statement of intention not set forth herein. This Agreement may not be amended, modified,
severed or waived, except through a written agreement between Merchant and Kapitus. All of the terms and provisions of this Agreement
shall be binding upon and inure to the benefit of the Parties and their respective heirs, executors, trustees, administrators, representatives,
receivers, liquidators, successors, transferees, and assigns of the Parties. This Agreement shall not be assignable or otherwise transferrable
by Merchant without Kapitus's prior written consent to be exercised solely in Kapitus's discretion. Kapitus may assign or
otherwise transfer this Agreement.

**d.**  **<u>Counterparts; Electronic Signatures</u>** . This Agreement may be executed in counterparts, each
of which shall constitute an original, but all of which together shall constitute one instrument. Electronically transmitted PDFs, facsimile
copies of signatures, or electronically transmitted copies of signatures complying with the US Federal ESIGN Act of 2000 (e.g.
www.docusign.com) shall be treated as original signatures for all purposes.

**e.**  **<u>Authorization.</u>** Merchant, and the person(s) signing this Agreement on behalf of Merchant,
have full power and authority to incur and perform the obligations under this Agreement, all of which have been duly authorized.

**f.**  **<u>Waiver.</u>** No failure on the part of Kapitus to exercise, and no delay in exercising, any right
under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude
any other or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive
of any remedies provided by law or equity.

**g.**  **<u>Further Assurances</u>** . Each Party agrees to take all reasonable steps necessary to effectuate
the terms of this Agreement. The Parties agree that they will take all actions, execute, and deliver any and all documents reasonably
necessary to carry out the intent and purpose of this Agreement, including, without limitation any documents and fees necessary for the
commencement and conduct of arbitration as set forth herein.

**h.**  **<u>No Interpretation of Captions or Headings</u>** . The captions and headings within this Agreement
are for ease of reference only and are not intended to create any substantive meaning or to modify the terms and clauses either following
them or contained in any other provision of this Agreement

**i.**  **<u>Notices.</u>** All notices, requests, consent, demands and other communications hereunder shall
be delivered by certified mail, return receipt requested, to Kapitus at 2500 Wilson Boulevard, Suite, 350, Arlington, VA 22201, and to
Merchant and/or Guarantor at the address(es) provided by Merchant or Guarantor to Kapitus and as reflected in Kapitus's system of
record, and shall become effective only upon receipt. In addition, all notices, requests, consent, demands and other communications must
be emailed to generalcounsel@kapitus.com and hlevinski@pharmacologyuniversity.com, dpicazo@msn.com .

---

| | | |
|:---|:---|:---|
| **MERCHANT** | **MERCHANT** |  |
| By: | Henry Levinski, Owner | /s/ Henry Levinski |
|  | (Print Name and Title) | (Signature) |
| **KAPITUS** | **KAPITUS** |  |
| By: |  |  |
|  | (Company Officer or Designee) | (Signature) |

---

**GUARANTOR**

---

| | |
|:---|:---|
| By: | HENRY LEVINSKI |
|  | (Print Name) (Signature) |

---

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

**GUARANTOR**

By: <u>N/A</u>   <br> (Print Name) (Signature)

## Exhibit 10.6

**Exhibit 10.6**

First Electronic Bank Revolving Credit Agreement

**MASTER REVOLVING CREDIT AGREEMENT**

**THIS MASTER REVOLVING CREDIT AGREEMENT** is effective as of the date of acceptance (the "Effective Date") by the approved borrower (the "Borrower") that has requested First Electronic Bank and its successors and assigns (the "Lender") to provide a revolving credit facility to the Borrower on the terms and conditions set forth herein.

**PLEASE READ THIS AGREEMENT CAREFULLY. BY ACCESSING OR USING ANY PART OF THE SITE WITH RESPECT TO LOANS TO BE PROVIDED UNDER THIS AGREEMENT, THE BORROWER ACKNOWLEDGES AND AGREES THAT THE BORROWER HAS READ THIS AGREEMENT, THAT THE BORROWER UNDERSTANDS THIS AGREEMENT AND ITS TERMS AND CONDITIONS, INCLUDING THE ARBITRATION AGREEMENT SET FORTH IN SECTION 9, AND THAT THE BORROWER AGREES TO BE BOUND LEGALLY BY THIS AGREEMENT AND ITS TERMS AND CONDITIONS, INCLUDING THE AGREEMENT TO ARBITRATE CERTAIN DISPUTES. IF THE BORROWER DOES NOT AGREE WITH THE TERMS AND CONDITIONS OF THIS AGREEMENT AND THE ARBITRATION AGREEMENT CONTAINED HEREIN, THE BORROWER IS NOT GRANTED PERMISSION BY THE LENDER TO ACCESS OR OTHERWISE USE THE SITE OR RECEIVE LOANS UNDER THIS AGREEMENT.**

**RECITALS**

A. The Borrower has requested through the Borrower Dashboard that the Lender make a revolving credit facility available to the Borrower, and the Lender has agreed to do so under certain terms and conditions.

B. The Borrower and the Lender desire to set forth the mutually agreed upon terms and conditions of such revolving credit facility in this Agreement.

NOW, THEREFORE, in consideration of the Recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties intending to be legally bound agree as follows:

**AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Definitions; Incorporation.**

a. <u>Definitions.</u> As used in this Agreement, capitalized words and phrases
will have the meanings set forth in <u>Section 10</u> or as otherwise provided in this Agreement.

b. <u>Incorporation.</u> Information regarding the Credit Limit and the Loans, including, without limitation,
the number of payments and the amount of any interest, fees and other charges, is set forth in the Borrower Dashboard (as updated from
time to time by the Lender, the <u>"Loan Information"</u>), and such Loan Information is incorporated into this Agreement by
reference and shall be a part of this Agreement for all purposes. Any and all references to this Agreement will include the Loan Information.
If there is a conflict or inconsistency between the terms of this Agreement and the Loan Information, the Loan Information will control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The Revolving Credit Facility.**

a. <u>Lending Limit.</u> On the terms and
 subject to the conditions set forth in this Agreement, the Lender agrees that it shall establish
 a revolving credit facility in favor of the Borrower in an amount set forth in the Loan Information
 (the <u>"Revolving Credit Facility"</u>). From time to time before the Maturity
 Date, Lender shall make one or more advances under the Revolving Credit Facility (each, a <u>"Loan"</u> and collectively, the <u>"Loans"</u>) in aggregate outstanding
 amounts not to exceed, at any one time, the Credit Limit. Amounts borrowed under this Agreement
 and repaid may be re-borrowed as provided in this Agreement.

b. <u>Security.</u> The Borrower hereby
 assigns, transfers, conveys, pledges, mortgages and grants to the Lender a security interest
 and lien in any and all accounts, accounts receivable, chattel paper, contract rights, documents,
 equipment, fixtures, general intangibles, goods, instruments, inventory, securities, deposit
 accounts, investment property and all other property of whatever nature and kind, wherever
 located, in which the Borrower now or hereafter has any right or interest and in any and
 all cash and non-cash proceeds (including rental proceeds, insurance proceeds, accounts and
 chattel paper arising out of or related to the sale, use, rental or other disposition thereof)
 of and to all of the foregoing (collectively, "Collateral") to secure the prompt
 payment, performance and fulfillment of this Agreement and all present and future indebtedness
 and obligations of the Borrower to the Lender. Without limiting the foregoing, the Borrower
 grants the Lender a security interest in the Collateral to secure the Obligations. The Borrower
 hereby authorizes the Lender to file one or more financing statements, and any other lien-related
 forms or documents relating to the Collateral, from time to time as the Lender deems in its
 sole discretion appropriate, in any jurisdiction (and the Borrower shall execute any financing
 statement or amendment thereto). The Borrower hereby irrevocably appoints the Lender as the
 true and lawful attorney-in-fact of the Borrower, coupled with an interest, with full power
 in the Borrower's name, place and stead to execute financing statements on the Borrower's
 behalf and to do any and all other acts on the Borrower's behalf necessary or helpful to
 perfect and continue perfection of the Lender's security interest granted in the Collateral
 pursuant to the Uniform Commercial Code or other applicable law, including, but not limited
 to, completing, as needed, and correcting, any errors and omissions concerning descriptions,
 serial numbers or other descriptive information relating to the Collateral.

c. <u>Calculation of Interest.</u> Commencing
 on the date hereof and continuing until repayment in full of all Loans, the unpaid principal
 balance of the Loans shall bear interest at a rate per annum equal to the Interest Rate as
 in effect from time to time during the applicable calculation period for each Loan. Without
 limiting the generality of <u>Section 8(b)</u>, upon the occurrence of an Event of Default,
 the unpaid principal balance of the Loans shall also incur additional default charges as
 described in <u>Section 3(f)</u> for so long as the Event of Default remains outstanding
 and uncured.

d. <u>Payment of Principal and Interest.</u> Any amount advanced under a Loan, and any credit in respect thereof, shall be entered
 into the Borrower Dashboard. The Borrower shall make timely payments of principal, interest
 and applicable fees and charges due under this Agreement on a weekly basis in fixed, equal
 payment amounts, representing principal, interest and applicable fees and charges specified
 by the Lender for each Loan in the Loan Information prior to the Borrower's acceptance of
 each such Loan. The duration of the payments shall be agreed by the Borrower and Lender as
 disclosed in the Loan Information. The Borrower shall make all such payments of principal,
 interest and applicable fees and charges in accordance with procedures established by the
 Lender, as may be amended from time to time upon notice to the Borrower. Without limiting
 the foregoing, the Borrower shall pay the outstanding principal amount and all accrued but
 unpaid interest (as calculated in accordance with <u>Section 2</u> (c)) of each Loan on or
 before the applicable Maturity Date for each Loan. The Borrower may optionally repay any
 portion of the Loans in accordance with <u>Section 3(h)</u> of this Agreement.

e. <u>Waiver of Presentment and Demand.</u> The Borrower, for itself, its successors and assigns, hereby
waives diligence, presentment, protest, and demand and notice of protest, demand, dishonor, and nonpayment of any of the Loans.

f. <u>Termination of Revolving Credit Facility.</u> The Borrower may, at any time and for any or no reason, advise the Lender in writing
 that the Borrower will no longer request Loans under this Agreement, and satisfy all Obligations
 owing to the Lender by payment in full of all amounts outstanding under all Loans (which
 payment is Indefeasible). The Lender may, at any time and for any or no reason, advise the
 Borrower in writing (including through the Borrower Dashboard) that the Lender will not make
 any future Loans under this Agreement and Borrower shall satisfy all Obligations owing to
 the Lender by payment in full of all amounts outstanding under all Loans (which payment is
 Indefeasible). If, for any reason, any portion of any payment to the Lender is set aside
 or restored, whether voluntarily or involuntarily, then the Loan intended to be satisfied
 by that payment shall be revived and continued in full force and effect as if the payment
 had not been made, and the Borrower shall be liable for the full amount the Lender is required
 to repay plus any and all costs and expenses (including reasonable attorneys' fees paid by
 the Lender in connection with any related litigation or resolution of such claims). Any termination
 of this Agreement by the Borrower shall not affect the rights and obligations of the parties
 which may exist before the effective date of such termination nor any rights and obligations
 that, by their nature, continue after termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Loan Advances, Use of Proceeds, and Payments.**

a. <u>Use of Proceeds.</u> The proceeds of all Loans shall be utilized only for business or commercial
purposes in connection with Borrower's business, including, without limitation, to fund documented Invoices issued by Borrower in the
course of providing goods and services to its customers, which Invoices have been approved by Lender through the Site (<u>"Authorized Advance"</u>). Without limiting the foregoing, Borrower represents, warrants and covenants that the proceeds of the Loans will be
used exclusively for business or commercial purposes, and not for any personal, family or household purposes.

b. <u>Loans.</u> The Borrower may request Loans (a <u>"Loan Request"</u>) in connection with
Authorized Advances by submitting an online request through the Borrower Dashboard for the principal amount of the Loan (each day upon
which the Borrower requests a Loan is hereinafter referred to as a <u>"Loan Request Date"</u>).

c. <u>Disbursements.</u> So long as (i)
 an Event of Default does not exist, (ii) the aggregate outstanding balance of the Loans does
 not exceed the Credit Limit, (iii) the Lender has approved the Loan based on evidence provided
 by the Borrower that the proceeds of the Loan will be used in compliance with this Agreement,
 (iv) all conditions to making Loans set forth in <u>Section 4</u> of this Agreement have
 been met, and (v) the Lender has not terminated its commitment to fund Loans, the Lender
 shall disburse a Loan pursuant to a Loan Request made by the Borrower in accordance with <u>Section 3(b)</u>. Any request made after 1pm Pacific Time on a Business Day may not be
 disbursed until the next Business Day. Any disbursement by the Lender of a Loan shall not
 be deemed to mean that the Borrower has complied with its Obligations hereunder in respect
 of such Loan or otherwise. The Lender shall transfer the proceeds of any Loan provided by
 the Lender into the designated bank account established by the Borrower and approved by the
 Lender through the Site.

d. <u>Nature and Place of Payments.</u> All payments made on account of the Loans shall be automatically debited
 from the Borrower's designated bank account via Automated Clearing House (ACH) pursuant to
 a valid authorization by the Borrower, without setoff or counterclaim in lawful money of
 the United States in the form of electronic deposits in immediately available funds into
 the Lender's designated Payment Account or as the Lender may otherwise direct, free and clear
 of and without deduction for any taxes (except as required by law), fees, or other charges
 of any nature whatsoever imposed by any taxing authority. On the applicable Maturity Date,
 the Lender shall automatically debit all outstanding amounts via ACH pursuant to such valid
 authorization by the Borrower. Any payment received after 1pm Pacific Time on a Business
 Day by the Lender will be considered to have been made by the Borrower on the next succeeding
 Business Day and, at the election of the Lender, interest thereon shall be payable by the
 Borrower at the Interest Rate during such extension. If any payment required to be made by
 the Borrower under this Agreement becomes due and payable on a day other than a Business
 Day, the due date thereof shall be extended to the next succeeding Business Day and, at the
 election of the Lender, interest thereon shall be payable at the then applicable rate during
 such extension. The Borrower acknowledges and agrees that it shall not have access to the
 Payment Account and that all proceeds made or transferred to the Payment Account shall be
 applied to the Obligations of Borrower.

e. <u>Payment Application.</u> The Lender
 may apply all sums received to the payment of principal, interest and other fees and charges
 on the Loans in such order and with such priority as the Lender may determine within its
 sole discretion, unless otherwise required by law. The Borrower agrees that each Loan and
 the Lender's related records shall be conclusive evidence of the Loans with respect to the
 Borrower that may be owed to the Lender at any time, absent manifest error.

f. <u>Postmaturity Interest.</u> During
 the continuation of any Event of Default, any Loans not paid whe acceleration or otherwise)
 shall incur additional transaction and advance fees as set forth in the Loan information.

g. <u>Computations.</u> All computations of interest payable under this Agreement shall be based upon
a year of 360 days for the actual number of days elapsed.

h. <u>Prepayments.</u> The Borrower may
 prepay Loans under this Agreement in whole or in part at any time upon written notice to
 the Lender. The Borrower shall pay in connection with any prepayment under this Agreement
 all interest accrued but unpaid on Loans and other fees and charges to which such prepayment
 is applied, concurrently with payment to the Lender of any principal amounts, as set forth
 in the Loan Information.

i. <u>Guarant</u> y. If requested by the
 Lender as support for the Loans, the Borrower will cause to be executed and delivered to
 the Lender a guaranty in form and substance satisfactory to the Lender (a <u>"Guaranty"</u>)
 by each Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Conditions to Making Loans.**

a. <u>First Loan.</u> The first Loan
shall be limited to the amount set forth in the Loan Information in the Borrower Dashboard. As conditions precedent to the Lender's obligation
to make the first Loan under this Agreement, at and as of the date of the funding thereof:

i. <u>Delivery of Documents by Borrower.</u> The Borrower shall have delivered electronically to the Lender, in form and substance
 satisfactory to the Lender and its counsel, a duly executed copy of this Agreement in accordance
 with <u>Section 9(i)</u> of this Agreement;

ii. <u>Delivery of Documents by Guarantors.</u> If requested by the Lender pursuant to <u>Section 3(i)</u>, each Guarantor should have delivered or shall have had delivered to the Lender, in form and substance satisfactory to the
 Lender and its counsel, a duly executed Guaranty;

iii. <u>Additional Information.</u> The Borrower shall have delivered or shall have had delivered to
 the Lender, in such form and substance as is satisfactory to the Lender and its counsel, such authorizations and information
 concerning the Borrower and its business, operations, and condition (financial and otherwise), as the Lender may request;

iv. <u>Documents Enforceable.</u> All acts and conditions (including, the obtaining of any necessary
 regulatory approvals and the making of any required filings, recordings, or registrations) required to be done and performed and to
 have happened precedent to the execution, delivery, and performance of the Loan Documents and to constitute the same legal, valid,
 and binding obligations, enforceable in accordance with their respective terms, shall have been done and performed and shall have
 happened in due and strict compliance with all applicable laws; and

v. <u>Documents Satisfactory to Lender.</u> All documentation, including documentation for organizational and legal proceedings in connection with the transactions
 contemplated by the Loan Documents shall be satisfactory in form and substance to Lender and its counsel.

b. <u>All Loans.</u> As
conditions precedent to the Lender's obligation to make any Loan under this Agreement (including, the first loan), at and as of the
date of the funding thereof:

i. The representations and warranties of the Borrower contained in the Loan Documents shall be accurate and complete;

ii. There shall not have occurred an Event of Default or Potential Default;

iii. Following the making of such Loan, the aggregate principal amount of Loans outstanding will not exceed the Credit Limit; and

iv. The Lender shall not have terminated its commitment to make Loans.

c. <u>Loan Stacking Prohibited.</u> The Lender prohibits "loan stacking", which
means any series of transactions occurring within a ninety- (90-) day period, during which Obligations under the Agreement are outstanding,
in which the Borrower maintains loans from three or more lenders in addition to the Lender, unless the Lender has given prior written
consent to the Borrower to exceed such number of loans. The Borrower acknowledges and agrees that any occurrence of loan stacking as
defined in this <u>Section 4(c)</u> shall be an Event of Default under the Agreement, and Lender, at its option, shall have the right
thereafter to cease making Loans under the Agreement, and to declare an Event of Default as to all outstanding Loans, which shall then
become immediately due and payable, without demand or presentment to the Borrower, which are expressly waived by the Borrower. Without
limiting the foregoing, the Lender may immediately exercise all rights, powers and remedies available to it under the Agreement, at law,
in equity or otherwise. The Lender reserves the right to change the loan stacking policy set forth in this <u>Section 4(c)</u> with respect
to any Loan Request by including the updated policy in the Loan Information in the Borrower Dashboard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Representations and Warranties of the Borrower.**

As an inducement to the Lender to enter into this Agreement and to make Loans as provided in this Agreement, the Borrower represents and warrants to the Lender that:

a. <u>Financial Condition.</u> The Borrower (i) is solvent, (ii) is adequately capitalized, (iii) has
not incurred Indebtedness that would be beyond its ability to pay as such debts mature, and (iv) will not be rendered insolvent nor left
with unreasonably small capital as a result of the Obligations or performance of the terms under this Agreement.

b. <u>Valid Existence; Compliance with Law.</u> The Borrower
 (i) is duly organized, validly existing, and in good standing under the laws of its jurisdiction
 of organization and is qualified to do business in each jurisdiction where its ownership
 of property or conduct of business requires such qualification and where failure to qualify
 would have a material adverse effect on the Borrower or its property and/or business or on
 the ability of the Borrower to pay or perform the Obligations, (ii) has the power and authority
 and the legal right to own and operate its property and to conduct business in the manner
 in which it does and proposes so to do, and (iii) is in compliance with all Requirements
 of Law (including, securities laws) and Contractual Obligations.

c. <u>Authorization; Enforceable Obligations.</u> The Borrower
 has the power and authority and the legal right to execute, deliver, and perform the Loan
 Documents to which it is a party and has taken all necessary organizational action to authorize
 the execution, delivery, and performance of the Loan Documents. The Loan Documents have been
 duly executed and delivered on behalf of the Borrower and constitute the legal, valid, and
 binding obligations of the Borrower enforceable against the Borrower in accordance with their
 respective terms, subject to the effect of applicable bankruptcy and other similar laws affecting
 the rights of creditors generally and the effect of equitable principles whether applied
 in an action at law or a suit in equity.

d. <u>No Legal Bar.</u> The execution, delivery, and performance
 of the Loan Documents, the borrowings under this Agreement and the use of the proceeds thereof,
 will not violate any Requirement of Law or any material Contractual Obligation of the Borrower.

e. <u>No Material Litigation.</u> No litigation, investigation,
 or proceeding of or before any arbitrator or Governmental Authority is pending or, to the
 knowledge of the Borrower, threatened by or against the Borrower or against its properties
 or revenues that is likely to be adversely determined and that, if adversely determined,
 is likely to have a material adverse effect on the business, operations, property, or financial
 or other condition of the Borrower.

f. <u>Taxes.</u> The Borrower has filed or caused to be filed all tax returns that are required to be
filed and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property
other than taxes that are being contested in good faith by appropriate proceedings and as to which the Borrower has established adequate
reserves in conformity with GAAP.

g. <u>Consents, etc.</u> No consent, approval, authorization
 of, or registration, declaration or filing with any governmental authority is required on
 the part of the Borrower in connection with the execution and delivery of the Loan Documents
 or the performance of or compliance with the terms, provisions, and conditions hereof or
 thereof except those consents, approvals, authorizations, registrations, declarations and/or
 filings, which have been obtained, granted or completed, as applicable.

h. <u>Insurance.</u> The business and properties of the Borrower are insured with financially sound and
reputable insurance companies (which are not Affiliates) reasonably acceptable to Lender, in such amounts, with such deductibles, and
covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower operates. As of the date hereof, all of Borrower's insurance coverages are in full
force and effect and all premiums therefor have been duly paid.

i. <u>Full Disclosure.</u> None
of the representations or warranties made by the Borrower in the Loan Documents as of the date such representations and warranties are
made or deemed made, and none of the statements contained in the exhibits, reports, statements, certificates and other information furnished
by or on behalf of the Borrower in connection with the Loan Documents, taken as a whole, contains as of the delivery thereof any untrue
statement of a material fact or omits or will omit any material fact necessary to make the statements made therein, in light of the circumstances
under which they are made, not misle ading as of the time when made or delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Affirmative Covenants.** 

The Borrower covenants and agrees with the Lender that, as long as any Obligations (other than contingent, unmatured Obligations arising under provisions of this Agreement that expressly survive termination) remain unpaid or the Lender has any obligation to make Loans under this Agreement, the Borrower shall:

a. <u>Payment of Indebtedness.</u> Pay, discharge, or otherwise satisfy at or before maturity or be fore it becomes
 delinquent, defaulted, or accelerated, as the case may be, all its Indebtedness (including taxes), except Indebtedness being contested
 in good faith and for which provision is made to the satisfaction of the Lender for the payment thereof in the event the Borrower
 is found to be obligated to pay such Indebtedness and which Indebtedness is thereupon promptly paid by the Borrower.

b. <u>Maintenance of Existence and Properties; Compliance.</u> Maintain its organizational
 existence and maintain all rights, privileges, licenses, approvals, franchises, properties, and assets necessary or desirable in
 the normal conduct of its business, and comply with all Contractual Obligations and Requirements of Law.

c. <u>Books and Records.</u> Keep
proper books of record and account in which full, true and correct entries in conformity with GAAP and all Requirements of Law shall
be made of all dealings and transactions in relation to its business and activities.

d. <u>Notices.</u> Promptly give written notice to the
Lender of:

i. The occurrence of any Potential Default or Event of Default;

ii. Any litigation or proceeding affecting the Borrower that could have a material adverse effect on
the business, operations, property, or financial or other condition of the Borrower; and

iii. A material adverse change in the business, operations, property or financial or other condition of the Borrower.

e. <u>Expenses.</u> Pay all reasonable out-of-pocket expenses (including
 fees and disbursements of counsel) of the Lender incident to the enforcement of payment of the Loans, whether by judicial proceedings
 or otherwise, and before as well as after judgment including, in connection with bankruptcy, insolvency, liquidation, reorganization,
 moratorium, or other similar proceedings involving the Borrower or a "workout" of the Loans. The obligations of the Borrower
 under this <u>Section 6(e)</u> shall be effective and enforceable whether or not any Loan is made under this Agreement and shall
 survive payment of all other Obligations.

f. <u>Insurance.</u> Maintain
with financially sound and reputable insurance companies insurance on all such property and against all such risks as is consistent and
in accordance with industry practice for companies similarly situated owning similar properties and engaged in similar businesses as the
Borrower.

g. <u>Indemnification.</u> Indemnify, defend, and hold harmless the Lender and each
 of its officers and other employees, representatives, and agents (each, an <u>"Indemnified Party"</u>) from and against
 any and all claims, obligations, penalties, actions, suits, judgments, reasonable costs and disbursements, losses and liabilities
 (including, reasonable attorneys' fees) of any kind whatsoever (collectively and severally, <u>"Claims"</u>) that may at
 any time be imposed on, assessed against, or incurred by such Indemnified Party in any way relating to or arising out of the Loan
 Documents or the transactions contemplated thereby or any action taken or omitted to be taken by such Indemnified Party in connection
 with the foregoing; provided, however, that the Borrower shall not be liable for any portion of any Claims arising out of or resulting
 from the gross negligence or willful misconduct of such Indemnified Party. The indemnification obligations of the Borrower under
 his Agreement shall survive termination of this Agreement and payment in full of the Obligations.

h. <u>Further Assurances.</u> Promptly on request by the Lender, do, execute, acknowledge, deliver, record, re-record, file, re-file, register, and re-register any
and all such further acts as the Lender may require from time to time in order to (i) carry out more effectively the purposes of this
Agreement or any other Loan Document, and (ii) assure, preserve, protect, and confirm to the Lender the rights granted or now or hereafter
intended to be granted to the Lender under any of the Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Negative Covenants**

The Borrower hereby agrees that, as long as any Obligations (other than contingent, unmatured Obligations arising under provisions of this Agreement that expressly survive termination) remain unpaid or the Lender has any obligation to make Loans under this Agreement, the Borrower shall not, directly or indirectly:

a. <u>Consolidation and Merger.</u> Except with the consent of the Lender, liquidate or dissolve or enter into
 any consolidation, merger or other combination unless the Borrower is the sole survivor thereof;
 have or experience any change-in-control.

b. <u>Consolidated Shareholders' Equity.</u> The Borrower shall not permit or suffer Consolidated Shareholders' Equity to be less
 than U.S. $1.00 as of any time of determination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Events of Default**

a. <u>Events of Default.</u> Any of the following events is an Event of Default:

i. The Borrower shall fail to pay within three (3) Business Days of the date when due, as set forth
in the Loan Information for each Loan Request as indicated in the Borrower Dashboard, any installment payment on the Loans, fail to make
any payment necessary to ensure the Credit Limit is not exceeded, or fail to pay within three (3) Business Days of the date when due
any other Obligations under the Loan Documents;

ii. Any representation or warranty made by the Borrower in any Loan Document or in connection with any
Loan Document shall be inaccurate on or as of the date made and, if capable of being cured, shall remain uncured for five (5) Business
Days;

iii. The Borrower shall fail to maintain its organizational existence or shall default in the observance
or performance of any covenant or agreement contained in <u>Section 7</u>;

iv. The Borrower shall fail to observe or perform any other term or provision contained in the Loan
Documents and such failure shall continue for ten (10) Business Days;

v. The Borrower or any Guarantor shall default in any payment of principal of or interest on any Indebtedness
(other than the Loans) or any other event shall occur, the effect of which is to permit (A) any Indebtedness to be declared or otherwise
become due prior to its stated maturity, or (B) permit the holder or any Person on its behalf to cause any Indebtedness to be declared
or otherwise become due, or to require prepayment, repurchase, redemption or defeasance thereof, prior to its stated maturity;

vi. (A) The Borrower or the Guarantor, shall commence any case, proceeding or other action (I) under any
 existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization, or relief of
 debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
 seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition, or other relief with respect to
 it or its debts, or (II) seeking appointment of a receiver, trustee, custodian, or other similar official for it or for all or any
 substantial part of its assets, or the Borrower or the Guarantor shall make a general assignment for the benefit of its creditors;
 (B) there shall be commenced against the Borrower or the Guarantor, any case, proceeding or other action of a nature referred to
 previously in clause (A) that (I) results in the entry of an order for relief or any such adjudication or appointment or (II)
 remains undismissed, undischarged, or unbonded for a period of sixty (60) days; (C) there shall be commenced against the Borrower or
 any Guarantor, any case, proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint, or similar process against all or substantially all of its assets that results in the entry of an order for any
such relief that shall not have been vacated, discharged, stayed, satisfied, or bonded pending appeal within sixty (60) days from the
entry thereof; (D) the Borrower or the Guarantor, shall take any action in furtherance of, or indicating its consent to, approval of,
or acquiescence in (other than in connection with a final settlement), any of the acts set forth in clause (A) or (B) above; or (E) the
Borrower or the Guarantor shall generally not, or shall be unable to, or shall admit in writing, its inability to pay its debts as they
become due; or

vii. The Guarantor shall fail to observe or comply with
any term or condition of the Guaranty, including any failure to make any payment under the Guaranty, or shall attempt to rescind or revoke
the Guaranty, with respect to future transactions or otherwise.

b. <u>Upon Default.</u> Automatically upon the occurrence of an Event of Default under <u>Section 8 (a)(vi)</u>,
 and at the option of the Lender upon the occurrence of any other Event of Default, the Lender's obligation to make Loans shall terminate
 and the Loans shall become immediately due and payable, without demand upon or presentment to the Borrower, which are expressly waived
 by the Borrower, and the Lender may immediately exercise all rights, powers, and remedies available to it at law, in equity or otherwise.
 The Borrower agrees to pay all collection expenses, court costs, and reasonable attorneys' fees and disbursements (whether or not
 a lawsuit or arbitration is commenced) of Lender that may be incurred in connection with the collection or enforceme nt of all or
 any part of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Additional Miscellaneous Provisions**

a. <u>No Assignment.</u> The Borrower may not assign, delegate
 or otherwise transfer its rights or obligations under this Agreement without the prior written
 consent of the Lender. Any purported assignment, delegation or transfer by the Borrower in
 violation of the previous sentence shall be automatically deemed null and void. Subject to
 the foregoing, all provisions contained in this Agreement or any document or agreement referred
 to in this Agreement or relating to this Agreement shall inure to the benefit of the Lender,
 its successors and assigns, and shall be binding upon the Borrower, its successors and assigns.

b. <u>Amendment; No Waiver.</u> This Agreement may only be
 amended by a writing signed by the parties hereto, or by an electronic record that has been
 electronically signed by the parties hereto and has been rendered tamper-evide nt as part
 of the signing process, including through the Borrower Dashboard. The exchange of email or
 other electronic communication s discussing an amendment to this Agreement, even if such
 communications are signed, does not constitute a signed electronic record agreeing to such
 an amendment. It is expressly agreed and understood that the failure by the Lender to elect
 to accelerate amounts outstanding under this Agreement and/or to terminate the obligation
 of the Lender to make Loans under this Agreement shall not constitute an amendment or waiver
 of any term or provision of this Agreement or any other Loan Document. No delay or failure
 by the Lender to exercise any right, power, or remedy shall constitute a waiver thereof by
 the Lender, and no single or partial exercise by the Lender of any right, power, or remedy
 shall preclude other or further exercise thereof or any exercise of any other rights, powers,
 or remedies.

<u>c.</u> <u>Cumulative Rights.</u> The rights, powers, and remedies
 of the Lender under this Agreement are cumulative and in addition to all rights, powers,
 and remedies provided under any and all agreements between the Borrower and the Lender relating
 to this Agreement, at law, in equity or otherwise.

d. <u>Entire Agreement.</u> This Agreement and the documents
 and agreements referred to in this Agreement embody the entire agreement and understanding
 between the parties to this Agreement with respect to the subject matter hereo f and supersede
 all prior agreements and understandings relating to the same or similar subject matter.

e. <u>Survival.</u> This Agreement shall terminate as of
 the termination of the Lender's commitment to fund Loans. <u>Section 5</u> and <u>Section 6(g)</u> of this Agreement, together with any other provisions of this Agreement necessary
 to interpret or to enforce the provisions therein, shall survive the termination of this
 Agreement.

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| | |
|:---|:---|
| f. | <u>Notices.</u> All notices required under this Agreement and other information concerning this Agreement ("Communications") shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier. In addition, the Lender may, in its sole discretion, send such Communications to the Borrower electronically in the manner described in this Section. |
|  | Such Communications sent by personal delivery, mail or overnight courier will be sent to the addresses on the signature page of this Agreement, or to such other addresses as the Lender and the Borrower may specify from time to time in writing. Communications shall be effective (i) if mailed, upon the earlier of receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, or (ii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when delivered. |
|  | Such Communications may be sent electronically by the Lender to the Borrower (i) by transmitting the Communication to the electronic address provided by the Borrower or to such other electronic address as the Borrower may specify from time to time in writing, (ii) by posting the Communication on a website and sending the Borrower a notice to the Borrower's postal address or electronic address telling the Borrower that the Communication has been posted, its location, and providing instructions on how to view it, or (iii) by posting the Communication on the Borrower Dashboard. Communications sent electronically to the Borrower will be effective when the Communication, or a notice advising of its posting to a website, is sent to the Borrower's electronic address. |

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g. Arbitration Agreement.

i. <u>Consent to Arbitrate Disputes.</u> Except as expressly
 excluded by this <u>Section 9(g)</u> (this <u>"Arbitration A</u> g <u>reement"</u>),
 by clicking "Draw Funds" on the Borrower's Dashboard or by accessing or using any
 part of the Site with respect to Loans to be provided under this Agreement, the Borrower
 acknowledges and agrees that, at the election of either the Borrower or the Lender, any Dispute
 will be resolved in accordance with the arbitration agreement set forth in this Section 9(g).
 As used in this Agreement, the term <u>"Dispute"</u> is to be given the broadest
 possible meaning, and includes without limitation disputes arising from or relating to (A)
 this Agreement, including without limitation, the terms, construction, interpretation, performance,
 termination, breach, or enforceability of this Agreement, (B) any transactions effected pursuant
 to this Agreement, (C) the terms of or change or addition of terms to this Agreement, (D)
 the collection or enforcement of any obligation arising from this Agreement, (E) advertisements,
 promotions, or oral or written statements relating to this Agreement or any transactions
 between us pursuant to this Agreement, (F) disputes between Borrower and Guarantor (if any)
 and Lender or Lender's parent corporations, and (G) disputes regarding the "making"
 (9 U.S.C. § 4), validity, enforceability, or scope of this agreement to arbitrate or
 this Agreement, including but not limited to whether a given claim or dispute is subject
 to arbitration. The term "Dispute" extends to and includes claims the Borrower
 asserts against the Lender that arose before the existence of this Agreement and the Borrower's
 claims arising out of or relating to this Agreement that arise after termination of this
 Agreement. The Borrower acknowledges and agrees that if the Lender or the Borrower elects
 to arbitrate a Dispute (I) the Dispute will be resolved by an arbitrator on an individual
 basis and not by a judge and jury, (II) the Borrower and the Lender will be limiting or foregoing
 rights that might otherwise exist in court under applicable rules of evidence or civil procedure,
 (III) the Borrower and the Lender will be giving up their respective right to appeal from
 the arbitrator's decision regarding the Dispute, (IV) the Dispute will be resolved only on
 an individual basis and that the Borrower will not be able to bring or participate as a representative
 plaintiff or class member in a class action with respect to any Dispute, (V) the Borrower
 will not be able to arbitrate any Dispute in a private attorney general or other representative
 capacity, and (VI) the arbitrator will have no authority to hear a class or representative
 action, or to join or consolidate a Dispute with that of any other borrower.

ii. For purposes of this arbitration agreement, references to the Borrower and the Lender also include
their respective Affiliates, agents, employees, predecessors, successors and assigns, as well as authorized users or beneficiaries of
the Lender's services.

iii. <u>Exclusions.</u> Either the Lender or the Borrower may file a motion, petition, complaint, counterclaim,
or cross-complaint or cross-petition in a court of competent jurisdiction in the state of Borrowers' residence and each Party consents
to the jurisdiction of these courts:

(A) To enforce the arbitration provisions of this Section
9(g);

(B) To obtain monetary relief, or to foreclose on a lien or other security interest,
solely on an individual (not class action or representative) basis in an amount less than $25,000;

(C) To seek equitable remedies on a provisional basis pending arbitration; such equitable remedies shall
remain in place until the later of such time as the arbitrator's award entering preliminary or permanent injunctive relief (or dissolving
or modifying a court-entered injunction) is (I) confirmed, or (II) the time for bringing a motion to confirm the arbitral award has expired
without a motion or petition for confirmation having been timely filed; or

(D) If the Borrower is a California resident and a Dispute
 involves a claim for public injunctive relief under California law, the Borrower may bring
 that claim in court. If the Borrower brings that claim in court, the Borrower agrees that
 the Lender may treat such a claim as a Dispute within the meaning of this <u>Section 9(g)</u> and that the Lender would then have the right to elect arbitration, and if the Borrower
 refuses its demand, to move to enforce arbitration in accordance with the terms of this <u>Section 9(g)</u> pursuant to the Federal Arbitration Act, 9 U.S.C. §§1 et seq. (the " <u>FAA</u> ").
 If the Lender brings and loses that motion, the Borrower's claim for public injunctive relief
 will be heard in court, but the Borrower agrees to stay its claim in court for public injunctive
 relief pending (I) exhaustion of the Lender's right to appeal in court from the ruling against
 it, and (II) completion of arbitration of all other Disputes. If the Lender wins its motion,
 the Borrower's claim for injunctive relief will be decided in arbitration in accordance with
 the terms of this <u>Section 9(g)</u>, meaning that the arbitrator can award only such injunctive
 relief as is necessary to remedy the Borrower's own alleged injury or to prevent future injury
 to the Borrower alone.

iv. For the avoidance of doubt, if either party asserts in any way a claim or Dispute other than those set out
 in <u>Section 9 (g)(iii)</u>, the other party still may elect arbitration of these other claims or Disputes. In addition, if Borrower,
 Guarantor or Lender files a Dispute in court, such action is not deemed to be a waiver of the right to compel arbitration of any
 counterclaims, cross-claims, or separate claims that may be asserted.

v. <u>Law Governing Agreement to Arbitrate.</u> The Borrower acknowledges and agrees that this Agreement
 evidences a transaction in interstate commerce. Accordingly, the agreement to arbitrate set forth in this Section 9(g) is governed
 by the FAA, and not by any state law governing consolidation or joinder of parties or claims, the arbitrability of claims, or the
 enforcement of class action or jury trial waivers

vi. <u>Arbitration Procedure.</u> 

(A) <u>How to elect arbitration of a dispute.</u> The Borrower
 or the Lender may elect arbitration by providing written notice to the other in accordance
 with <u>Section 9(f)</u>.

(B) <u>Number of arbitrators.</u> All Disputes shall be resolved by a single arbitrator
who shall be a retired judge selected by the parties.

(C) <u>Administration of arbitration.</u> The arbitration
 shall be administered by JAMS and the arbitration shall be conducted in accordance with the
 JAMS Streamlined Arbitration Rules & Procedures except as otherwise agreed in this Agreement.
 If JAMS is unavailable to administer the arbitration, then the arbitration shall be administered
 by (I) the American Arbitration Association (<u>"AAA"</u>) under its Commercial
 Arbitration Rules or (II) such other administrator as the parties agree to or, in the absence
 of agreement, (III) as selected by a court. If the parties cannot agree upon an arbitrator,
 the arbitration administrator will select a retired judge to serve as an arbitrator. JAMS
 or AAA may be contacted as follows: JAMS (18881 Von Karman Ave., Suite 350, Irvine, CA 92612,
 1-800-352-5267, www <u>.</u> jamsadr.com); American Arbitration Association (120 Broadway,
 Floor 21, New York, NY 10271, 1-800-778-7879, www.adr.or <u>g</u>). The administrator's rules
 are posted onl <u>ine. You should read these rules carefull</u> y.

(D) <u>Location of arbitration.</u> Any arbitration hearing will occur in the Borrower's state of residence
at a place determined in accordance with the administrator's rules. However, the Borrower and the Lender agree that the arbitrator is
authorized, in his or her
discretion, to conduct special hearings at any other place for the purpose of receiving evidence that would otherwise be unavailable
at the situs of the arbitration and that the place for the special hearing selected by the arbitrator shall also be deemed a place where
the arbitrator or "[is] sitting" for purposes of Section 7 of the FAA. The Borrower and the Lender further agree that the arbitrator
or any party may attend any hearing electronically, and that the electronic, adjudicative (as opposed to physical) presence of the arbitrator
at the hearing satisfies the "[is] sitting" requirement of Section 7 of the FAA. To the extent permitted by applicable local
law, the arbitrator is authorized to conduct special hearings outside the United States to receive evidence not otherwise available within
the United States. The Borrower and the Lender agree that the arbitrator may appear and preside telephonically or electronically at such
hearings and that any party may also appear and participate telephonically or electronically. If the value of the relief sought is $10,000
or less, the Borrower or the Lender may elect to have the arbitration conducted by telephone or based solely on written submissions,
which election shall be binding on the Borrower and the Lender subject to the arbitrator's discretion to require an in-person hearing,
if the circumstances warrant.

(E) <u>Law to be applied by the arbitrator to resolve disputes in arbitration.</u> As provided in sub-section (v) of this Arbitration Agreement, the arbitrator
 shall apply the FAA to all questions arising under the FAA. Subject to and to the extent
 not preempted by the FAA, the terms of this Arbitration Agreement, the rules of the administrator,
 and the law of the State of Utah (without reference to its choice of law rules) shall be
 applied (in the foregoing order of priority) by the arbitrator as the rule of decision in
 arbitration to issues that would be governed by state law if the Dispute were heard in court
 instead of in arbitration; likewise, the arbitrator shall apply federal law to all questions
 of federal law that arise in arbitration. However, the arbitrator shall not be bound by rulings
 in prior arbitrations or court proceedings involving different borrowers or users of the
 Lender's services.

(F) <u>Authority of arbitrator.</u> Subject to all applicable
 limitations of liability including those set forth in Section 9(o), which shall be enforced
 by the arbitrator, the arbitrator is authorized to award remedies that would be available
 on an individual basis if the action were heard in a court. The arbitrators shall honor claims
 of privilege in accordance with federal law, if a federal claim is at issue, or applicable
 state law, if a claim governed by state law or foreign law is at issue. The arbitrator shall
 apply applicable statutes of limitations. The arbitrators shall hear Motions to Dismiss or
 their equivalent and Motions for Summary Judgment. The arbitrators shall determine such motions
 under Rules 12 and 56 of the Federal Rules of Civil Procedure (or their equivalents if superseded)
 and case law construing these rules governing at the time of decision. Unless otherwise agreed
 by the parties, a motion to dismiss shall be filed no later than the 60th day following the
 appointment of the arbitrator and heard by the arbitrator within 30 days thereafter. The
 arbitrator shall rule on any motion to dismiss within 15 days of the hearing date on such
 motion. If the arbitrator allows an amended pleading, then the opposing party shall have
 an opportunity to move to dismiss any amended pleading. A party shall be entitled to bring
 a motion or motions for summary judgment at any point after the 60th day following notice
 of an election to arbitrate and any such motion or motions shall be heard and determined
 no later than 4 weeks prior to the date of any evidentiary hearing in the matter. The arbitrator
 has no authority to (i) certify a class, (ii) conduct a classwide arbitration, (iii) hear
 claims brought in a representative or private attorney general capacity, or (iv) join or
 consolidate a Dispute (or the hearing respecting a Dispute) with claims of persons other
 than the Borrower, the Lender, or their respective Affiliates, agents, employees, predecessors,
 successors and assigns as well as authorized users or beneficiaries under this Agreement
 of Lender's services. The arbitrator may award relief (including monetary, injunctive, and
 declaratory relief) only in favor of the individual party seeking relief and only to the
 extent necessary to remedy the party's individual injury or to prevent future injury to that
 party alone; any relief awarded cannot affect other borrowers or other users of the Lender's
 services.

(G) <u>Arbitral award and enforcement thereof.</u> The arbitrator's award shall be in writing and shall
provide a brief explanation of the arbitrator's findings of fact and conclusions of law. The arbitrator's award shall be final and binding,
and judgment on the award rendered by the arbitrator may be entered and/or confirmed in any court having jurisdiction.

(H) <u>Additional Conditions.</u> If any portion of this
 Arbitration Agreement cannot be enforced, the unenforceable portion will be severed and the
 rest of this <u>Section 9(g)</u> will continue to apply. However, if (i) it is finally determined
 that the class action waiver contained in this <u>Section 9(g)</u> cannot be enforced, or
 (ii) the arbitrator (contrary to this <u>Section 9(g)</u>) purports to decide a Dispute on
 a class or other representative basis, or to award injunctive relief that extends beyond
 that necessary to remedy the Borrower's own individual alleged injuries or to prevent future
 harm to the Borrower alone, then only this sentence will apply and the remainder of this
 Arbitration Agreement will be void. In no event will a claim for class relief (or for injunctive
 relief extending beyond the Borrower's own individual alleged injuries or to prevent future
 harm to the Borrower alone) be arbitrated.

(I) <u>Survival.</u> The Borrower acknowledges and agrees
 that the arbitration agreement set forth in this <u>Section 9(g)</u> survives termination
 of this Agreement to the extent provided herein.

h. <u>Transfers.</u> The Borrower acknowledges that the Lender may elect to sell, assign, and otherwise
transfer to other Persons (each, a <u>"Transferee"</u>) all or portions of, and participations in, the Lender's interest in
Loans outstanding (and its commitment to make Loans) under this Agreement from time to time and expressly agrees that the holder of any
Loans or interest in this Agreement (or commitment to make Loans under this Agreement) shall be a "Lender" under this Agreement.
The Borrower agrees to execute and deliver to the Lender such documents, instruments, and agreements, including amendments to the Loan
Documents, deemed necessary or desirable by the Lender to effectuate transfers pursuant to this <u>Section 9</u> (h).

i. <u>Electronic Documents; Counterparts.</u> Electronic
 records and signatures may be used in connection with the execution of this Agreement and
 the Loans Documents, in the Lender's discretion. This Agreement and the Loan Documents may
 be executed in as many counterparts as necessary or convenient, including both counterparts
 that are executed on paper and counterparts that are electronic records and executed electronically,
 and by the different parties on separate counterparts each of which, when so executed, (and
 any copy of an executed counterpart that is an electronic record) shall be deemed an original
 but all such counterparts shall constitute but one and the same document. Delivery of a manually
 executed paper counterpart of this Agreement (or of any Loan Document or other agreement
 or document required by this Agreement and any amendment to this Agreement) by telecopy or
 other electronic imaging means shall be as effective as delivery of such manually executed
 paper counterpart; provided, however, that the telecopy or other electronic image shall be
 promptly followed by a manually executed paper original if required by the Lender.

j. <u>Accounting Terms.</u> All accounting terms not otherwise
 defined in this Agreement are used with the meanings given such terms under GAAP.

k. <u>Pa</u> y <u>ments Set Aside.</u> To the extent that the Borrower makes a payment or payments to the
Lender or the Lender exercises its rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any
part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any
settlement entered into by the Lender in its discretion) to be repaid to a trustee, receiver, or any other party in connection with any
insolvency proceeding, or otherwise, then to the extent of such recovery the obligation or part thereof originally intended to be satisfied
shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

l. <u>Setoff.</u> In addition to any rights and remedies of the Lender provided by law and to the extent
fully permitted by law, if an Event of Default exists, the Lender is authorized at any time and from time to time, without prior notice
to the Borrower, any such notice being waived by the Borrower (if permitted by law), to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held by, and other indebtedness at any time owing to, the Lender to or for
the credit or the account of the Borrower against any and all Obligations owing to the Lender, now or hereafter existing, irrespective
of whether or not the Lender shall have made demand under this Agreement or any Loan Document and although
such Obligations may be contingent or unmatured. The Lender agrees promptly to notify the Borrower after any such setoff and application
made by the Lender; provided, however, that the failure to give such notice shall not affect the validity of such setoff and application.

m. <u>Severabilit</u> y. Subject to Section 9(g), the illegality or unenforceability of any provision
of this Agreement or any other Loan Document or any instrument or agreement required under this Agreement shall not in any way affect
or impair the legality or enforceability of the remaining provisions hereof or thereof.

n. <u>No Third Parties Benefited.</u> This Agreement and the other Loan Documents are made and entered
into for the sole protection and legal benefit of the Borrower and the Lender, and their permitted successors and assigns, and no other
Person shall be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with,
this Agreement or any of the other Loan Documents. The Lender has no obligation to any Person not a party to this Agreement or other Loan
Documents.

o. <u>Limitation of Liabilit</u> y. THE LENDER SHALL NOT BE LIABLE FOR INDIRECT, SPECIAL, CONSEQUENTIAL,
INCIDENTAL OR PUNITIVE DAMAGES OF THE BORROWER, INCLUDING BUT NOT LIMITED TO LOST PROFITS, LOSS OF DATA, LACK OR LOSS OF PRODUCTIVITY,
COST OF SUBSTITUTE EQUIPMENT, SERVICES, OR DOWNTIME COSTS EXCEPT THOSE WHICH ARISE PURSUANT TO THE LENDER'S GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH CLAIM IN ADVANCE.

p. <u>Warrant</u> y <u>Disclaimer.</u> THE SITE AND ALL SERVICES ON THE SITE ARE PROVIDED ON AN "AS
IS" AND "AS AVAILABLE" BASIS, AND WITHOUT WARRANTIES OF ANY KIND EITHER EXPRESS OR IMPLIED. LENDER HEREBY DISCLAIMS ALL
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT, AND THOSE ARISING BY STATUTE OR FROM A COURSE OF DEALING OR USAGE OF TRADE. LENDER DOES NOT GUARANTEE THAT THE SITE
OR ANY SERVICE ON THE SITE WILL BE FREE OF BUGS, SECURITY BREACHES, OR VIRUS ATTACKS. THE SITE AND SERVICES MAY OCCASIONALLY BE UNAVAILABLE
FOR ROUTINE MAINTENANCE, UPGRADING, OR OTHER REASONS. THE BORROWER AGREES THAT THE LENDER WILL NOT BE HELD RESPONSIBLE FOR ANY CONSEQUENCES
TO THE BORROWER OR ANY THIRD PARTY THAT MAY RESULT FROM TECHNICAL PROBLEMS OF THE INTERNET, SLOW CONNECTIONS, TRAFFIC CONGESTION OR OVERLOAD
OF THE LENDER'S OR OTHER SERVERS. EXCEPT AS EXPRESSLY STATED IN THE LENDER'S PRIVACY POLICY, THE LENDER DOES NOT MAKE ANY REPRESENTATIONS,
WARRANTIES OR CONDITIONS OF ANY KIND, EXPRESS OR IMPLIED, AS TO THE SECURITY OF ANY INFORMATION THE BORROWER MAY PROVIDE OR ACTIVITIES
THE BORROWER ENGAGES IN DURING THE COURSE OF THE BORROWER'S USE OF THE SITE AND ANY SERVICES ON THE SITE. THE LENDER IS NOT ACTING AS
A BUSINESS ASSOCIATE OR SUBCONTRACTOR (AS SUCH TERMS ARE DEFINED AND USED IN HIPAA) AND THE SERVICES PROVIDED BY THE LENDER ARE NOT HIPAA
COMPLIANT. THE LENDER HAS NO LIABILITY UNDER THIS AGREEMENT FOR SENSITIVE DATA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Definitions**

For purposes of this Agreement, the terms set forth below shall have the following meanings:

<u>"Affiliate"</u> shall mean, as to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with, such Person.

"Ag<u>reement"</u> shall mean this Master Revolving Credit Agreement, as the same may be amended, modified, supplemented, extended or replaced from time to time.

<u>"Borrower Dashboard"</u> shall mean the Web Dashboard established on the Site for the Borrower's account.

<u>"Business Da</u>y" shall mean any day other than a Saturday, a Sunday, or a day on which Lender is authorized or obligated to close its regular banking business.

<u>"Consolidated Shareholders' Equit</u>y" shall mean, as of any date of determination, the remainder of (a) the total assets of the Borrower and its consolidated subsidiaries <u>minus</u> (b) the sum of all liabilities of the Borrower and its consolidated subsidiaries, in each case that would be reflected on a consolidated balance sheet of the Borrower and its consolidated subsidiaries as of that date in accordance with GAAP.

<u>"Contractual Obli</u>g<u>ations"</u> as to any Person shall mean any provision of any security issued by such Person or of any agreement, instrument, or undertaking to which such Person is a party or by which it or any of its property is bound.

<u>"Credit Limit"</u> shall mean the dollar amount set forth in the Loan Information in the Borrower Dashboard, as such amount may be increased or decreased by the Lender in its sole discretion and reflected in the Loan Information from time to time.

<u>"GAAP"</u> shall mean generally accepted accounting principles in the United States in effect from time to time.

<u>"Governmental Authorit</u>y" shall mean any nation or government, any state or other political subdivision thereof, or any entity exercising executive, legislative, judicial, regulatory, or administrative functions of or pertaining to government.

<u>"Guarantor"</u> shall mean a guarantor of the Loans.

<u>"HIPAA"</u> means the Health Insurance Portability and Accountability Act of 1996, as amended.

<u>"Indebtedness"</u> means, for any Person, at any time, and only to the extent outstanding at such time (a) obligations created, issued or incurred by such Person for borrowed money, (b) obligations of such Person to pay the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business, so long as such trade accounts payable are payable within ninety (90) days of the date the respective goods are delivered or the respective services are rendered, and (c) any other indebtedness of such Person evidenced by a note, bond, debenture or similar instrument. Indebtedness will exclude non-recourse Indebtedness and exclude all Indebtedness that is not reflected on the Borrower's financial statements such as Indebtedness at the Guarantor.

<u>"Indefeasible"</u> means, with respect to a payment that the Obligations are satisfied only when the Lender is no longer subject to any right on the part of any Person, including (a) the Borrower, (b) the Borrower as a debtor in possession, or (c) any bankruptcy or other trustee of the Borrower's assets, to invalidate or set aside such payments or to seek to recoup the amount of such payments or any portion thereof, or to declare same to be fraudulent or preferential.

<u>"Interest Rate"</u> means the per annum rate of interest established by the Lender for each Loan, which shall be subject to the maximum permitted rate under Utah law and calculated in accordance with the following formula and example:

Formula:

Example:

Amount advanced (A) = $1,000

Weekly Payment (P) = $89.20

Number of payments (n) = 12

Finance Charge = $70.40

Unit period = 1 week

Unit periods per year = 52

Advance, 11/18/19

First payment, 11/30/19

Payments made each Wednesday, starting 11/30/19

Time to 1st debit = 12 days

t = 1 (i.e., 11/23/19 thru 11/30/19)

f = 5/7 (i.e., 11/18/19 thru 11/23/19)

Periodic interest rate (i) = 0.9548%

Annual Percentage Rate (Interest Rate) = 52 x i = 49.654%

Borrower acknowledges that the foregoing is an example only and the actual Interest Rate for each Loan may differ. The Interest Rate is a means of pricing credit extensions to customers and is neither directly tied to an external rate of interest or index nor necessarily the lowest rate of interest charged by the Lender at any given time for any particular class of customers or credit extensions. For each Loan, the Interest Rate shall be fixed and included in the total fixed payment amount to be made weekly by the Borrower for each Loan.

<u>"Invoice"</u> means the outstanding invoices the Borrower generates as part of its business operations that are submitted to the Lender on the Site and itemized in the Borrower Dashboard. Such invoices will not contain any protected health information regulated by the Health Insurance Portability and Accountability Act (<u>"HIPAA"</u>) or similar federal or state laws, rules or regulations or other medical or health information identifiable with a particular individual (<u>"Sensitive Data"</u>).

<u>"Liabilities"</u> means at any date, the amount that, in accordance with GAAP consistently applied, would be set forth opposite the caption "total current liabilities" (or any like caption) on a consolidated balance sheet of each Borrower.

<u>"Loan Documents"</u> shall mean this Agreement and each other document, instrument and agreement executed by the Borrower in connection herewith or therewith, as any of the same may be amended, restated, extended, or replaced from time to time.

<u>"Maturit</u>y <u>Date"</u> shall mean, for each Loan, the earlier of: (a) the maturity date indicated in the Loan Information for each Loan indicated in the Borrower Dashboard, as such date may be extended from time to time in writing by the Lender and the Borrower, in each case, in their sole discretion, or (b) the date the Lender accelerates the maturity date of the Loans under this Agreement pursuant to <u>Section 8</u>.

<u>"Obli</u>g<u>ations"</u> shall mean any and all debts, obligations, and liabilities of the Borrower to the Lender arising under this Agreement (whether principal, interest, fees, or otherwise, whether now existing or hereafter arising, whether voluntary or involuntary, whether or not jointly owed with others, whether direct or indirect, absolute or contingent, contractual or tortious, liquidated or unliquidated, arising by operation of law or otherwise, whether or not from time to time decreased or extinguished and later increased, created or incurred and whether or not extended, modified, rearranged, restructured, refinanced or replaced, including modifications to interest rates or other payment terms of such debts, obligations, or liabilities).

<u>"Pa</u>y<u>ment Account"</u> shall mean the account of the Lender designated in writing by the Lender from time to time to the Borrower as the "Payment Account" for purposes of this Agreement.

<u>"Person"</u> shall mean any corporation, partnership, limited liability company, natural person, firm, joint venture, partnership, trust, unincorporated organization, government, or any department or agency of any government.

<u>"Potential Default"</u> shall mean an event that but for the lapse of time or the giving of notice, or both, would constitute an Event of Default.

<u>"Requirements of Law"</u> shall mean as to any Person the Certificate of Incorporation and Bylaws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation, or a final and binding determination of an arbitrator or a determination of a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

<u>"Site"</u> refers to fundbox.com, together with its subdomains, text, documents, articles, blogs, descriptions, graphics, photos, sounds videos and interactive features on the Site, Site products, services and software, trademarks, and service marks and logos contained therein.

## Exhibit 10.8

**Exhibit 10.8**

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 PARK AVE FUNDING FUTURE RECEIVABLES SALE AND PURCHASE AGREEMENT This agreement (this " Agreement "), dated 12/20/2022 , between PARK AVE FUNDING ("Buyer") and the seller(s) listed herein (collectively, th e "Se ller") (all capitalized terms shall have the meanings ascribed to them below): Business Legal Name : CHINA INFRASTRUCTURE CONSTRUCTION Form of Business Entity : Corporation D/B/A : PHARMACOLOGY UNIVERSITY EIN #: 82 - 5497827 Physical Address: 6201 BONHOMME RD STE 466 - S HOUSTON TEXAS 77036 Mailing Address: 6201 BONHOMME RD STE 466 - S HOUSTON TEXAS 77036 PURCHASE PRICE: $76,000.00 PURCHASED AMOUNT: $103,284.00 SPECIFIED PERCENTAGE: 49% INITIAL INSTALLMENT: $6114.00 Weekly FOR SELLER #1 FOR SELLER # 2 (if any) By: Name: HENRY DONALD LEVINSKI Title: Owner/Agent/Manager Email: HLEVINSKI@PHARMACOLOGY.COM By: Name: DANTE PICAZO Title: Owner/Agent/Manager Email: DPICAZO@MSN.COM Business Phone: Business Phone: Concurrently with the execution of this Agreement by Seller, and as condition to the effectiveness hereof, Seller has caused the Personal Guarantee of Performance in the form attached hereto as Exhibit A (the " Guaranty ") to be signed and delivered to Buyer . Furthermore, in the event the Seller and/or Guarantor are comprised of more than one entity and/or individuals, then ALL such entities and/or individuals, respectively, shall sign a standard form addendum of Buyer to this Agreement reflecting said interest of Buyer . WHEREAS , Seller is desirous to sell to Buyer, and Buyer is desirous to purchase from Seller a Specified Percentage of the Seller's Future Receipts, but only on the terms and conditions set forth in this Agreement . NOW, THEREFORE , for good and valuable consideration, the mutual receipts and sufficiency of which is hereby acknowledged by both parties, Buyer and Seller hereby agree to the foregoing and as follows : 1. Basic Terms and Definitions . a. " Effective Date " shall mean the later of: (i) the date set forth in the preamble to this Agreement, and (ii) the date when BUYER paid the Purchase Price to Seller. b. " Specified Percentage " shall mean the percentage set forth in the preamble to this Agreement of each and every sum from sale made by Seller of Future Receipts. c. " Future Receipts " shall mean, collectively, all of Seller's receipts of monies for the sale of its goods and services that monies shall be paid and delivered to Seller by Seller's customers and/or other vendees after the Effective Date of this Agreement ; which payments or deliveries of monies can be made in the form of cash, check, credit, charge, or debit card, ACH or other electronic transfer or any other form of monetary payment and/or pecuniary benefit received by Seller . " Daily Receipts " shall mean the amount of Future Receipts received by Seller on a daily basis . d. " Purchased Amount " shall mean the total amount of the Specified Percentage of the Future Receipts that Seller shall be under obligation to deliver and pay over to Buyer pursuant to this Agreement . The Purchased Amount shall be the amount set forth under "Purchased Amount" in the preamble to this Agreement .

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e. Purchase Price " shall mean the total amount that Buyer agrees to pay for the Purchased Amount . The Purchase Price shall be the amount set forth under "Purchase Price" in the preamble to this Agreement . However, the amount that Seller will actually receive from Buyer pursuant to this Agreement will be less than the Purchase Price by the total sum of the Applicable Fees, Prior Balance and the Origination Fee, if any, as set forth in subparagraphs h . , i . , and j . below . f. " Initial Installment " shall mean the fixed amount (whether daily or weekly, as set forth in the preamble) that Seller and Buyer agree to be a good faith approximation of the Specified Percentage of Seller's (daily or weekly) Future Receipts . Seller and Buyer further agree that the Initial Installment set forth in the Preamble to this Agreement is based upon the information provided by Seller to Buyer concerning Seller's most recent accounts receivables and/or revenue, including representations by the Seller to Buyer regarding the Seller's estimated Future Receipts, and subject to Seller's right of adjustment/reconciliation set forth in this Agreement . g. " Workday " shall mean Monday through Friday except on days when banking institutions are closed for the holidays and do not process ACH payments . h. " Applicable Fees " shall mean, collectively, all initial costs and fees that Seller agrees to pay to Buyer as consideration for agreeing to enter into this Agreement and that are described in Section 17 of this Agreement . The total sum of the Applicable Fees will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller's authorization set forth in Rider 1 to this Agreement, provided nevertheless that such deduction shall not be deemed to reduce the agreed upon Purchase Price or Purchased Amount . i. " Prior Balance " shall mean the sum of all amounts that Seller may owe to Buyer and/or third party(s) as of the Effective Date of this Agreement . The Prior Balance, if any, is described in Section 18 of this Agreement and will be deducted from the Purchase Price prior to delivering it to Seller pursuant to Seller's authorization set forth in Rider 2 to this Agreement, provided nevertheless that such deduction shall not be deemed to reduce the agreed upon Purchase Price or Purchased Amount . j. " Origination Fee " shall mean the fee set forth in Rider 1 that Buyer charges Seller for the costs of underwriting and processing Seller's application for funding . The Origination Fee, if any, is described in Section 19 of this Agreement and will be deducted from the Purchase Price prior to delivering it to Seller, provided nevertheless that such deduction shall not be deemed to reduce the agreed upon Purchased Price or Purchased Amount . k. In the event " Seller " is comprised of more than one entity, then : i. The term "Seller" shall mean, individually and collectively, all such entities; and ii. Each Seller is an "Affiliate" of all other Seller(s) . The term "Affiliate" shall mean an entity or an individual that (1) controls, (2) is under the "Control", or (3) is under common Control with the entity or individual in question . The term "Control" shall mean direct or indirect ownership of more than 50 % of the outstanding voting stock of a corporation or other majority equity interest if not a corporation and the possession of power to direct or cause the direction of the management and policy of such corporation or other entity, whether through ownership of voting securities, by stature, or by contract ; and iii. The representations, warranties, covenants, obligations and liabilities of each Seller shall be joint and several under this Agreement ; iv. The liability of each Seller under this Agreement shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity ; v. The terms "Specified Percentage", "Future Receipts", and "Initial Installment" shall mean the Specified Percentage and the Future Receipts of each Seller individually ; and vi. Buyer may pursue its rights and remedies under this Agreement against any one or any number of entities that constitute Seller without obligation to assert, prosecute or exhaust any remedy or claim against any other Seller or any Guarantor . l. In the event " Guarantor " is comprised of more than one individual, then : i. The term "Guarantor" shall mean, individually and collectively, all such individuals; ii. Each Guarantor is an Affiliate of all other Guarantor(s); iii. The representations, warranties, covenants, obligations and liabilities of each Guarantor shall be joint and several under this Agreement and the Guaranty ; DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 iv. The liability of each Guarantor under this Agreement and the Guaranty shall be direct and immediate and shall not be conditional or contingent upon the pursuance of any remedies against any other person or entity ; and v. Buyer may pursue its rights and remedies under this Agreement and/or Guaranty against any one or any number of individuals that constitute Guarantor without obligation to assert, prosecute or exhaust any remedy or claim against any other Guarantor or any Seller . 2. The Term . This Agreement for the purchase and sale of Future Receipts does not have a fixed duration or term, and therefore it is potentially infinite . Subject to the provisions of Sections 10 - 13 hereof, the term of this Agreement shall commence on the Effective Date and expire on the date (the " Expiration Date ") when the Purchased Amount and all other sums due to Buyer pursuant to this Agreement are received by Buyer in full . 3. Sale of Purchased Future Receipts . Seller hereby sells, assigns, transfers and conveys (hereinafter, the " Sale ") unto Buyer all of Seller's right, title and interest in to the Specified Percentage of the Future Receipts until the Purchased Amount shall have been delivered by Seller to Buyer (hereinafter, the portion of the Future Receipts sold by Seller to Buyer pursuant to this Agreement, the " Purchased Future Receipts ") ; to have and hold the same unto Buyer, its successors and assigns, forever . This Sale of the Purchased Future Receipts is made without express or implied warranty to Buyer of collectability of the Purchased Future Receipts by Buyer and without recourse against Seller and/or Guarantor(s), except as specifically set forth in this Agreement . By virtue of this Agreement, Seller transfers to Buyer full and complete ownership of the Purchased Future Receipts and Seller retains no legal or equitable interest therein . 4. Payment of Purchase Price . In consideration of the sale by Seller to Buyer of the Purchased Future Receipts pursuant to this Agreement, Buyer agrees to pay to Seller the Purchase Price . The amount of the Purchase Price (reduced by the Applicable Fees, Prior Balance, and Origination Fee, if any) shall be delivered to Seller after execution of this Agreement . 5. Use of Purchase Price . Seller hereby acknowledges that it fully understands that : (i) Buyer's ability to collect the Purchased Amount (or any portion thereof) is contingent upon Seller's continued operation of its business and successful generation of the Future Receipts until the Purchased Amount is delivered to Buyer in full ; and (ii) that in the event of decreased efficiency or total failure of Seller's business Buyer's receipt of the full or any portion of the Purchased Amount may be delayed indefinitely . Based upon the foregoing, Seller agrees to use the Purchase Price exclusively for the benefit and advancement of Seller's business operations and for no other purpose . 6. Initial Installments of Purchased Amount . The Purchased Amount shall be delivered by Seller to Buyer in the amount of the Initial Installment on each and every Workday or Workweek (depending on whether the Initial Installment are daily or weekly) commencing on the Effective Date and ending on the Expiration Date . 7. Approved Bank Account and Credit Card Processor . During the term of this Agreement, Seller shall : (i) deposit all Future Receipts into one (and only one) bank account which bank account shall be acceptable and preapproved by Buyer (the "Approved Bank Account"), (ii) use one (and only one) credit card processor which processor shall be acceptable and preapproved by Buyer (the "Approved Processor") and (iii) deposit all credit card receipts into the Approved Bank Account . In the event the Approved Bank Account or Approved Processor shall become unavailable or shall cease providing services to Seller during the term of this Agreement, prior to the first date of such unavailability or cessation of services, Seller shall arrange for another Approved Bank Account or Approved Processor, as the case may be . 8. Authorization to Debit Approved Bank Account . Seller hereby authorizes Buyer to initiate electronic checks or ACH debits from the Approved Bank Account (which as of the Effective Date of this Agreement shall be the account listed below) in the amount of the Initial Installment commencing on the Effective Date until Buyer receives the full Purchased Amount ; \*Seller shall provide Buyer with all access code(s) for the Approved Bank Account during the Term of this Agreement . The Initial Installment is to be drawn via ACH payment, from the following bank account : i. Account Number : ii. Routing Number : iii. Account Name : iv. Bank Name : \*Note that this authorization is to remain in full force and effect until Buyer receives written notification from

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 Seller of its termination in such time and in such manner to afford Buyer a reasonable opportunity to act on it ; provided, however, that revocation of this authorization prior to remittance of the balance under the Agreement shall constitute a breach thereunder, subject to Sections 10 - 13 herein . 9. Fees Associated with Debiting Approved Bank Account . It shall be Seller's exclusive responsibility to pay to its banking institution and/or Buyer's banking institution directly (or to compensate Buyer, in case it is charged) all fees, charges and expenses incurred by either Seller or Buyer due to rejected electronic checks or ACH debit attempts, overdrafts or rejections by Seller's banking institution of the transactions contemplated by this Agreement, including without limitation a $35 . 00 charge per bounced or rejected ACH debit . 10. Seller's Right for Reconciliation . Seller and Buyer each acknowledges and agrees that : a. If at any time during the term of this Agreement Seller will experience unforeseen decrease or increase in its Receipts, Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 11 below, to request retroactive reconciliation of the Initial Installments for one (1) full calendar month immediately preceding the day when such request for reconciliation is received by Buyer (each such calendar month, a " Reconciliation Month ") . b. Such reconciliation (the " Reconciliation ") of the Seller's Initial Installment for a Reconciliation Month shall be performed by Buyer within five (5) Workdays following its receipt of the Seller's request for Reconciliation by either crediting or debiting the difference back to, or from, the Approved Bank Account so that the total amount debited by Buyer from the Approved Bank Account during the Reconciliation Month at issue is equal to the Specific Percentage of the Future Receipts that Seller collected during the Reconciliation Month at issue . c. One or more Reconciliation procedures performed by Buyer may reduce or increase the effective Initial Installment amount during the Reconciliation Month in comparison to the one set forth in Section 1 of this Agreement, and, as the result of such reduction, the term of this Agreement during which Buyer will be debiting the Approved Bank Account may get shortened or extended indefinitely . 11. Request for Reconciliation Procedure . a. It shall be Seller's sole responsibility and the right hereunder to initiate Reconciliation of Seller's actual Initial Installments during any Reconciliation Month by sending a request for Reconciliation to Buyer. b. Any such request for Reconciliation of the Seller's Initial Installments for a specific Reconciliation Month shall be in writing, shall include a copy of Seller's bank statement, credit card processing statements, and pertinent aging report(s) for the Reconciliation Month at issue, and shall be received by PARK AVE FUNDING via email to info@parkavefunding.com , with the subject line "REQUEST FOR RECONCILIATION," within five (5) Workdays after the last day of the Reconciliation Month at issue (time being of the essence as to the last day of the period during which such demand for Reconciliation shall be received by Buyer). c. Buyer's receipt of Seller's request for Reconciliation after the expiration of the five (5) Workday period following the last day of the Reconciliation Month for which such Reconciliation is requested nullifies and makes obsolete Seller's request for Reconciliation for that specific Reconciliation Month . d. Seller shall have the right to request Reconciliation as many times during the term of this Agreement as it deems proper, and Buyer shall comply with each such request, provided that: i. Each such request is made in accordance with the terms of this Section 11; and ii. If a request for Reconciliation is made after the expiration of the term of this Agreement and, as the result of such Reconciliation, the total amount actually debited by Buyer from the Approved Bank Account will become less than the Purchased Amount, then and in such event the term of this Agreement shall automatically be extended until the time when the total amount actually debited from Approved Bank Account pursuant to this Agreement shall become equal to the Purchased Amount . e. Nothing set forth in Sections 10 or 11 of this Agreement shall be deemed to : (i) provide Seller with the right to interfere with Buyer's right and ability to debit the Approved Bank Account while the request for Reconciliation of Seller's receipts is pending or until the Purchased Amount is collected by Buyer in full, or (ii) modify the amount of the Initial Installment for any calendar month during the term of this Agreement other than during the Reconciliation Month(s) as the result of the Reconciliation . 12. Adjustment of the Initial Installment . Seller and Buyer each acknowledge and agree that : a. If at any time during the term of this Agreement Seller experiences a steady decrease in its Receipts,

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 Seller shall have the right, at its sole and absolute discretion, but subject to the provisions of Section 13 below, to request modification (" Adjustment ") of the amount of the Initial Installment that Seller is obligated to deliver to Buyer in accordance with the provisions of Section 6 above . Such Adjustment shall become effective as of the date it is granted and the new adjusted amount of the Initial Installment (the " Adjusted Installment ") shall replace and supersede the amount of the Initial Installment set forth in Section 1 above . b . The Adjustment of the Initial Installment shall be performed by Buyer within five (5) Workdays following its receipt of the Seller's request for Adjustment by modifying the amount of the Initial Installment that shall be debited from the Approved Bank Account until the Purchased Amount is paid in full . Notwithstanding anything to the contrary set forth in Sections 12 and 13 hereof, no Adjustment shall take place until and unless Reconciliation for at least one (1) Reconciliation Month takes place resulting in the reduction of the total amount debited from Seller's Approved Bank Account during the Reconciliation Month by at least fifteen percent (15 %) in comparison to the amount that would have been debited during that month without Reconciliation . c . One or more Adjustments performed by Buyer may substantially extend the term of this Agreement . 13 . Request for Adjustment Procedure . a. It shall be Seller's sole responsibility and the right to initiate the Adjustment by sending a request for Adjustment to Buyer . b. A request for Adjustment (an "Adjustment Request") shall be in writing, and shall include copies of : (i) Seller's last three (3) consecutive bank statements of the Approved Bank Account, the last three (3) credit card processing statements and the last three (3) aging reports immediately preceding the date of Buyer's receipt of the Adjustment Request, and (ii) Seller's bank statements and credit card processing statements previously provided by Seller to Buyer based upon which statements the amount of the Initial Installment set forth in Section 1 above (or the then current Adjusted Installment as the case may be) was determined, and shall be received by Buyer by email at info@parkavefunding . com , with the subject line "REQUEST FOR ADJUSTMENT," within five (5) Workdays after the date that is the later of (i) the last day of the latest bank statement enclosed with the Adjustment Request and (ii) the last date of the latest credit card processing statement enclosed with the Adjustment Request (time being of the essence as to the last day of the period during which an Adjustment Request shall be received by Buyer) . c. Buyer's receipt of a Seller's Adjustment Request after the expiration of the above referenced five (5) Workday period nullifies and makes obsolete such Adjustment Request . d. Seller shall have the right to request Adjustment of the Initial Installment, or the Adjusted Installment (as the case may be), as many times during the term of this Agreement as it deems proper, and Buyer shall comply in good faith with such request, provided that : i. Each such request for Adjustment is made in accordance with the terms of this Section 13 ; and ii. A request for Adjustment shall not be made after the Expiration Date . e. Nothing set forth in Sections 12 or 13 of this Agreement shall be deemed to provide Seller with the right to (i) interfere with Buyer's right and ability to debit the Approved Bank Account while the request for Adjustment is pending or until the Purchased Amount is collected by Buyer in full or (ii) request Adjustment retroactively for the portion of the term of this Agreement preceding the date of an Adjustment Request . 14. Seller's Right to Accelerate Remittance of the Outstanding Portion of the Purchased Amount of Future Receipts ("Outstanding PAFR") . a. Notwithstanding anything to the contrary set forth in this Agreement, Seller shall have the right, at any time after receipt from Buyer of the Purchase Price, and upon obtaining Buyer's prior written consent, to accelerate delivery to Buyer of the then undelivered portion of the Purchased Amount of Future Receipts (such amount, the " Outstanding PAFR ") . The delivery of the Outstanding PAFR shall be governed by the following subparagraphs . b. The Outstanding PAFR can only be delivered in full and not partially . c. Seller shall request the right to accelerate the delivery of the Outstanding PAFR by notifying Buyer to that effect ; provided that such notice shall be in writing (an email delivery shall be deemed acceptable) and shall contain the information on the source(s) of the funds to be used for delivery of the Outstanding PAFR and on the approximate date of such delivery . d. Buyer shall respond to Seller's request within three (3) Workdays from the date of its receipt by Buyer .

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 e. In its response to Seller's request, Buyer shall indicate the exact amount of the Outstanding PAFR as of the date of its delivery by Seller . f. As of the date agreed upon as between Buyer and Seller, Seller shall deliver to Buyer the full amount of the Outstanding PAFR (such date, the " Accelerated Delivery Date ") . g. Under no circumstances shall Seller suspend or modify, or cause to be suspended or modified, the delivery to Buyer of the Initial Installments prior to the delivery of the Outstanding PAFR to Buyer . h. Upon delivery of the Outstanding PAFR to Buyer in compliance with the provisions of this Section 14 , Seller's obligations to Buyer pursuant to this Agreement shall be deemed completed and fulfilled . 15. Rights and Obligations of Buyer Upon Receipt of the Outstanding PAFR . Upon receipt of the full amount of the Outstanding PAFR : a. Buyer shall notify the Approved Bank Account and request from it to stop transferring Initial Installments to Buyer's bank account . b. If Buyer shall have received one or more Initial Installment (or Adjusted Installment, as the case may be) after the Accelerated Delivery Date (due to the Approved Bank's delay in processing Buyer's request described in subparagraph (a) above or for any other reason), Buyer shall immediately do one of the two following things (but not both) : i. Return to Seller the total sum of the Initial Installments (or the Adjusted Installments, as the case may be) received by Buyer after the date of delivery of the Outstanding PAFR to Buyer ; or ii. Apply the total sum of the Initial Installments (or the Adjusted Installments, as the case may be) received by Buyer after the Accelerated Delivery Date toward Seller's outstanding financial obligations to Buyer existing as of the Accelerated Delivery Date for reasons unrelated to this Agreement (if any) . A. By way of example, if as of the Accelerated Delivery Date, Seller and Buyer would be parties to a another future receivables sale and purchase agreement in connection with a portion of Seller's Future Receipts that is not subject to this Agreement (such agreement, an " Unrelated Future Agreement "), then and in such event Buyer may, in its sole and absolute discretion, apply the sum of the Initial Installments (or the Adjusted Installments, as the case may be) received by Buyer after the Accelerated Delivery Date pursuant to this Agreement toward fulfilling Seller's obligations to Buyer pursuant to the Unrelated Future Agreement . c . Seller acknowledges and agrees that Buyer shall have the right to apply the total sum of the Initial Installments (or Adjusted Installments, as the case may be) received by Buyer after the Accelerated Delivery Date toward Seller's outstanding financial obligations to Buyer existing as of the Accelerated Delivery Date for reasons unrelated to this Agreement (if any) in exchange for, and as an adequate and sufficient consideration for, Buyer granting Seller the right to accelerate the payment of the Purchased Amount of Future Receipts . 16. Risk Sharing Acknowledgments and Arrangements . a. Seller and Buyer each hereby acknowledges and agrees that: i. The Purchased Future Receipts represent a portion of Seller's Future Receipts. ii. This Agreement consummates the sale of the Purchased Future Receipts at a discount, not the borrowing of funds by Seller from Buyer . Buyer does not charge Seller and will not collect from Seller any interest on the monies used by Buyer for the purchase of the Purchased Future Receipts . The period of time that it will take Buyer to collect the Purchased Amount is not fixed, is unknown to both parties as of the Effective Date of this Agreement and will depend on how well or not well Seller's business will be performing following the Effective Date . As an extreme example, in the event Seller's business ceases to exist after Buyer's purchase of the Purchased Future Receipts as a result of a drying up of revenues for reasons outside Seller's control, Buyer may never collect all or a substantial portion of the Purchased Future Receipts and will never recover the moneys it spent on such purchase . iii. The amount of the Initial Installment set forth in Section 1 of this Agreement is calculated based upon the information concerning an average amount of Receipts collected by Seller's business immediately prior to the Effective Date of this Agreement, as well as representations regarding the Seller's estimated Future Receipts, which information was provided by the Seller to Buyer . iv. The amounts of Seller's Future Receipts may increase or decrease over time. v. If, based upon the Reconciliation and/or the Adjustment procedures described above, it will be

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 determined that the actual amounts of the Specified Percentage of the Future Receipts get reduced in comparison to the amount of the Initial Installment as of the Effective Date set forth in Section 1 of this Agreement, and in comparison to the amount that both Seller and Buyer may have anticipated or projected because Seller's business has slowed down, or if the full Purchased Amount is not remitted because Seller's business went bankrupt or otherwise ceased operations in the ordinary course of business (but not due to Seller's willful or negligent mishandling of its business or due to Seller's failure to comply with its obligations under this Agreement), Seller would not be in breach of or in default under this Agreement . b. Buyer's Risk Acknowledgments . Buyer agrees to purchase the Purchased Future Receipts knowing the risks that Seller's business may slow down or fail, and Buyer assumes this risk based exclusively upon the information provided to it by Seller and related to the business operations of Seller's business prior to the date hereof, and upon Seller's representations, warranties and covenants contained in this Agreement that are designed to give Buyer a reasonable and fair opportunity to receive the benefit of its bargain . Furthermore, Buyer hereby acknowledges and agrees that Seller shall be excused from performing its obligations under this Agreement in the event Seller's business ceases its operations exclusively due to the following reasons (collectively, the " Valid Excuses ") : i. adverse business conditions that occurred for reasons outside Seller's control and not due to Seller's willful or negligent mishandling of its business; ii. loss of the premises where the business operates (but not due to Seller's breach of its obligations to its landlord), provided however that Seller does not continue and/or resume business operations at another location; iii. bankruptcy of Seller; and/or iv. natural disasters or similar occurrences beyond Seller's control. c. Application of Amounts Received by Buyer . Buyer reserves the right to apply amounts received by it under this Agreement to any fees or other charges due to Buyer from Seller prior to applying such amounts to reduce the outstanding amount of the Purchased Amount . Any ACH payments and/or payments which clear after the Effective Date of this Agreement shall be applied to the balance hereunder . d. Not a Loan . Seller and Buyer agree that the Purchase Price is paid to Seller in consideration for the acquisition of the Purchased Future Receipts and that payment of the Purchase Price by BUYER is not intended to be, nor shall it be construed as, a loan from Buyer to Seller that requires absolute and unconditional repayment on a maturity date . To the contrary, Buyer's ability to receive the Purchased Amount pursuant to this Agreement, and the date when the Purchased Amount is delivered to Buyer in full (if ever) are subject to and conditioned upon performance of Seller's business . If, nevertheless, a court having jurisdiction over this Agreement and the parties hereto shall have determined that Buyer has charged or received interest hereunder in excess of the highest rate allowed by law, then the rate of such interest received by Buyer shall automatically be reduced to the maximum rate permitted by applicable law and Buyer shall promptly refund to Seller any interest received by Buyer in excess of the maximum lawful rate . 17. Applicable Fees . Seller acknowledges that the Applicable Fees were agreed upon between Seller and Buyer prior to Seller entering into this Agreement, were subject to arm - length negotiation between Buyer and Seller, and a detailed list of the Applicable Fees is set forth in Rider 1 of this Agreement, which is attached hereto and made a part hereof . 18. Prior Balance . Seller represents and warrants that Rider 2 , which is attached hereto and made a part hereof, contains true and correct information as to the name(s) of Seller's creditors and the amounts that Seller owes each of those creditors as of the Effective Date (and these amounts being a portion of the Prior Balance), and that as of the date hereof there are no creditors of Seller which may otherwise encumber the Purchased Future Receipts other than those listed in Rider 2 . Seller indemnifies and holds harmless Buyer for any and all damages and losses (including without limitation legal fees and expenses) incurred by Buyer as the result of such representation being untrue, incorrect or incomplete . 19. Origination Fee . Seller hereby agrees for Buyer to withhold from the Purchase Price the Origination Fee contained in Rider 1 , which is attached hereto and made a part hereof . 20. No Reduction of Purchase Price . Seller hereby : (i) agrees to pay the Applicable Fees, the Prior Balance and the Origination Fee (the sum of those, hereinafter, the "Closing Costs") in full ; (ii) hereby authorizes Buyer to apply a portion of the Purchase Price due to Seller pursuant to this Agreement toward satisfaction of Seller's obligation to pay the Closing Costs by deducting the amount of the Closing Costs from the Purchase Price prior to delivering it to Seller ; and (iii) agrees that deduction of the Closing Costs from the Purchase Price shall not be deemed to be a reduction of the Purchase Price .

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 REPRESENTATIONS, WARRANTIES AND COVENANTS 21. Seller represents, warrants and covenants that as of this date and during the term of this Agreement: a. Financial Condition and Financial Information . Seller's bank and financial statements, copies of which have been furnished to Buyer, and future statements which may be furnished hereafter pursuant to this Agreement or upon Buyer's request, fairly represent the financial condition of Seller as of the dates such statements were issued, and prior to execution of the Agreement there has been no material adverse changes, financial or otherwise, in such condition, operation or ownership of Seller . Seller has a continuing, affirmative obligation to advise Buyer of any material adverse change in its financial condition, operation or ownership, and/or online banking log - in credentials . Buyer may request Seller's bank statements at any time during the term of this Agreement and Seller shall provide them to Buyer within two (2) Workdays of such request . Seller's failure to do so, and/or cutting off Buyer's online access to the Approved Bank Account, is a material breach of this Agreement . b. Governmental Approvals . Seller is in compliance and, during the term of this Agreement, shall be in compliance with all laws and has valid permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged . c. Good Standing . Seller is a corporation/limited liability company/limited partnership/other type of entity that is in good standing and duly incorporated or otherwise organized and validly existing under the laws of its jurisdiction of incorporation or organization and has full power and authority necessary to carry its business as it is now being conducted . d. Authorization . Seller has all requisite power to execute, deliver and perform this Agreement and consummate the transactions contemplated hereunder ; entering into this Agreement will not result in breach or violation of, or default under, any agreement or instrument by which Seller is bound or any statute, rule, regulation, order or other law to which Seller is subject, nor require the obtaining of any consent, approval, permit or license from any governmental authority having jurisdiction over Seller . All organizational and other proceedings required to be taken by Seller to authorize the execution, delivery and performance of this Agreement have been taken . The person signing this Agreement on behalf of Seller has full power and authority to bind Seller to perform its obligations under this Agreement . e. Accounting Records and Tax Returns . Seller will treat receipt of the Purchase Price and payment of the Purchased Amount in a manner evidencing sale of its future receipts in its accounting records and tax returns and further agrees that Buyer is entitled to audit Seller's accounting records upon reasonable notice in order to verify compliance . Seller hereby waives any rights of privacy, confidentiality or taxpayer privilege in any litigation or arbitration arising out of this Agreement in which Seller asserts that this transaction is anything other than a sale of future receipts . f. Taxes ; Workers Compensation Insurance . Seller has paid and will promptly pay, when due, all taxes, including without limitation, income, employment, sales and use taxes, imposed upon Seller's business by law, and will maintain workers compensation insurance required by applicable governmental authorities . g. Business Insurance . Seller maintains and will maintain general liability and business - interruption insurance naming Buyer as loss payee and additional insured in the amounts and against risks as are satisfactory to Buyer and shall provide Buyer proof of such insurance upon request . h. Electronic Check Processing Agreement . Seller shall not change its Approved Processor, add terminals, change its Approved Bank Account(s) or take any other action that could have any adverse effect upon Seller's obligations or impede Buyer's rights under this Agreement, without Buyer's prior written consent . i. No Diversion of Future Receipts . Seller shall not allow any event to occur that would cause a diversion of any portion of Seller's Future Receipts from the Approved Bank Account or Approved Processor without Buyer's written permission . j. Change of Name or Location . Seller, any successor - in - interest of Seller, and Guarantor shall not conduct Seller's businesses under any name other than as disclosed to the Approved Processor and Buyer, shall not change and/or transfer ownership in/of the Seller and will not change any of its places of business without first obtaining Buyer's written consent . k. Prohibited Business Transactions . Seller shall not : (i) transfer or sell all or substantially all of its assets (including without limitation the Collateral (as such term is defined in Section 22) or any portion thereof) without first obtaining Buyer's consent ; or (ii) make or send notice of its intended bulk sale or transfer . l. No Closing of Business . Seller will not sell, dispose, transfer or otherwise convey all or substantially all

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 of its business or assets without first : (i) obtaining the express written consent of Buyer, and (ii) providing Buyer with a written agreement of a purchaser or transferee of Seller's business or assets to assume all of Seller's obligations under this Agreement pursuant to documentation satisfactory to Buyer . Seller represents that it has no current plans to close its business either temporarily (for renovations, repairs or any other purpose), or permanently . Seller agrees that until Buyer shall have received the Purchased Amount in full, Seller will not voluntarily close its business on a permanent or temporarily basis for renovations, repairs, or any other purposes . Notwithstanding the foregoing, Seller shall have the right to close its business temporarily if such closing is necessitated by a requirement to conduct renovations or repairs imposed upon Seller's business by legal authorities having jurisdiction over Seller's business (such as from a health department or fire department), or if such closing is necessitated by circumstances outside Seller's reasonable control . Prior to any such temporary closure of its business, Seller shall provide Buyer ten (10) business days advance notice . m. No Pending Bankruptcy . As of the date of Seller's execution of this Agreement, Seller is not insolvent, has not filed, and does not contemplate filing, any petition for bankruptcy protection under any title of the United States Code and there has been no involuntary bankruptcy petition brought or pending against Seller . Seller represents that it has not consulted with a bankruptcy attorney on the issue of filing bankruptcy or some other insolvency proceeding within six months immediately preceding the date of this Agreement . n. Estoppel Certificate . Seller will at any time, and from time to time, upon at least one (1) day's prior notice from Buyer to Seller, execute, acknowledge and deliver to Buyer and/or to any other person or entity specified by Buyer, a statement certifying that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modification(s) and stating the date(s) on which the Purchased Amount or any portion thereof has been repaid . o. Unencumbered Future Receipts . Seller has and will continue to have good, complete and marketable title to all Future Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and encumbrances of any kind or nature whatsoever or any other rights or interests other than by virtue or entering into this Agreement . Seller specifically warrants and represents that it is not currently bound by the terms of any future receivables and/or factoring agreement which may encumber in any way the Future Receipts . p. No Stacking . Seller shall not further encumber the Future Receipts, without first obtaining written consent of Buyer. Any further encumbrance by seller of the Future Receipts is a material breach of this Agreement. q. Business Purpose . Seller is entering into this Agreement solely for business purposes and not as a consumer for personal, family or household purposes. r. No Default Under Contracts with Third Parties . Seller's execution of and/or performance of its obligations under this Agreement will not cause or create an event of default by Seller under any contract, which Seller is or may become a party to . s. Right of Access . In order to ensure Seller's compliance with the terms of this Agreement, Seller hereby grants Buyer the right to enter, without notice, the premises of Seller's business for the purpose of inspecting and checking Seller's transaction processing terminals to ensure the terminals are properly programmed to submit and/or batch Seller's daily receipts to the Approved Processor and to ensure that Seller has not violated any other provision of this Agreement . Furthermore, Seller hereby grants Buyer and its employees and consultants access to Seller's employees and records and all other items of property located at the Seller's place of business during the term of this Agreement . Seller hereby agrees to provide Buyer, upon request, all and any information concerning Seller's business operations, banking relationships, names and contact information of Seller's suppliers, vendors and landlord(s), to allow Buyer to interview any of those parties . t. Phone Recordings and Contact . Seller agrees that any call between Seller and Buyer and its owners, managers, employees and agents may be recorded and/or monitored . Furthermore, Seller acknowledges and agrees that : (i) it has an established business relationship with Buyer, its managers, employees and agents (collectively, the " Buyer Parties ") and that Seller may be contacted by any of the Buyer Parties from time - to - time regarding Seller's performance of its obligations under this Agreement or regarding other business transactions ; (ii) it will not claim that such communications and contacts are unsolicited or inconvenient ; and (iii) any such contact may be made by any of the Buyer Parties in person or at any phone number (including mobile phone number), email addresses, or facsimile number belonging to Seller's office, or its owners, managers, officers, or employees . u . Knowledge and Experience of Decision Makers . The persons authorized to make management and financial decisions on behalf Seller with respect to this Agreement have such knowledge, experience and skill in financial and business matters in general and with respect to transactions of a nature similar to the one contemplated

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 by this Agreement so as to be capable of evaluating the merits and risks of, and making an informed business decision with regard to, Seller entering into this Agreement . v. Seller's Due Diligence . The person authorized to sign this Agreement on behalf of Seller : (i) has received all information that such person deemed necessary to make an informed decision with respect to a transaction contemplated by this Agreement ; and (ii) has had unrestricted opportunity to make such investigation as such person desired pertaining to the transaction contemplated by this Agreement and verify any such information furnished to him or her by Buyer . w. Consultation with Counsel . The person(s) signing this Agreement of behalf of Seller : (a) has read and fully understands the content of this Agreement ; (b) has consulted to the extent he/she wished with Seller's own counsel in connection with the entering into this Agreement ; (c) has made sufficient investigation and inquiry to determine whether this Agreement is fair and reasonable to Seller, and whether this Agreement adequately reflects his or her understanding of its terms . x. Buyer's Consent . Seller agrees that in every instance Seller's rights under this Agreement are contingent upon first obtaining Buyer's consent, such consent may be withheld, granted or conditioned at Buyer's sole and absolute discretion . y. No Reliance on Oral Representations . This Agreement contains the entire agreement between Seller and Buyer with respect to the subject matter of this Agreement and supersedes each course of conduct previously pursued or acquiesced in, and each oral agreement and representation previously made, by Buyer or any of the Buyer Parties with respect thereto (if any), whether or not relied or acted upon . No course of performance or other conduct subsequently pursued or acquiesced in, and no oral agreement or representation subsequently made, by the Buyer Parties, whether or not relied or acted upon, and no usage of trade, whether or not relied or acted upon, shall amend this Agreement or impair or otherwise affect Seller's obligations pursuant to this Agreement or any rights and remedies of the parties to this Agreement . z. No Additional Fees Charged . Seller hereby acknowledges and agrees that : (i) other than the Closing Costs, if any, Buyer is not charging any additional fees to Seller ; and (ii) if Seller is charged with any fee and/or cost not listed in this Agreement or the Riders hereto, such fee is not charged by Buyer . Moreover, as all working capital received under this Agreement is required to ensure Seller's continued success, Seller warrants and covenants not to pay any fee and/or commission with regard to this transaction other than as provided for herein . PLEDGE OF SECURITY 22. Pledge . As security for the prompt and complete payment and performance of any and all liabilities, obligations, covenants or agreements of Seller under this Agreement (and any future amendments of this Agreement, if any) (hereinafter referred to collectively as the " Obligations "), Seller hereby pledges, assigns and hypothecates to Buyer (collectively, " Pledge ") and grants to Buyer a continuing, perfected and first priority lien upon and security interest in, to and under all of Seller's right, title and interest in and to the following (collectively, the " Collateral "), whether now existing or hereafter from time to time acquired : a. all accounts, including without limitation, all deposit accounts, accounts - receivable, and other receivables, chattel paper, documents, equipment, general intangibles, instruments, and inventory, as those terms are defined by Article 9 of the Uniform Commercial Code (the "UCC"), now or hereafter owned or acquired by Seller ; and b. all Seller's proceeds, as such term is defined by Article 9 of the UCC . 23. Termination of Pledge . Upon the payment and performance by Seller in full of the Obligations, the security interest in the Collateral pursuant to this Pledge shall automatically terminate without any further act of either party being required, and all rights to the Collateral shall revert to Seller . Upon any such termination, Buyer will execute, acknowledge (where applicable) and deliver such satisfactions, releases and termination statements, as Seller shall reasonably request . 24. Representations with Respect to Collateral . Seller hereby represents and warrants to Buyer that the execution, delivery and performance by Seller of this Pledge, and the remedies in respect of the Collateral under this Pledge (i) have been duly authorized ; (ii) do not require the approval of any governmental authority or other third party or require any action of, or filing with, any governmental authority or other third party to authorize same (other than the filing of the UCC - 1 s) ; and (iii) do not and shall not (A) violate or result in the breach of any provision of law or regulation, any order or decree of any court or other governmental authority, and/or (B) violate, result in the breach of or constitute a default under or conflict with any indenture, mortgage, deed of trust, agreement or any other instrument to which Seller is a party or by which any of Seller's assets (including, without limitation, the Collateral) are bound .

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 25. Further Assurances . Upon the request of Buyer, Seller, at Seller's sole cost and expense, shall execute and deliver all such further UCC - 1 s, continuation statements, assurances and assignments of the Collateral and consents with respect to the pledge of the Collateral and the execution of this Pledge, and shall execute and deliver such further instruments, agreements and other documents and do such further acts and things, as Buyer may request in order to more fully effectuate the purposes of this Pledge and the assignment of the Collateral and obtain the full benefits of this Pledge and the rights and powers herein created . 26. Attorney - in - Fact . Seller hereby authorizes Buyer at any time to take any action and to execute any instrument, including without limitation to file one or more financing statements and/or continuation statements, to evidence and perfect the security interest created hereby and irrevocably appoints Buyer as its true and lawful attorney - in - fact, which power of attorney shall be coupled with an interest, with full authority in the place and stead of Seller and in the name of Seller or otherwise, from time to time, in Buyer's sole and absolute discretion, including without limitation (a) for the purpose of executing such statements in the name of and on behalf of Seller, and thereafter filing any such financing and/or continuation statements, and (b) to receive, endorse and collect all instruments made payable to Seller . EVENTS OF DEFAULT AND REMEDIES 27. Events of Default . The occurrence of any of the following events shall constitute an " Event of Default " by Seller : a. Seller shall violate any term, condition or covenant in this Agreement governing Seller's obligations of timely delivery and in full of Initial Installments (or Adjusted Installments, as the case may be) to Buyer, and timely and in full payment to Buyer of any other sums due for any reason whatsoever other than as the result of Seller's business ceasing its operations exclusively due to any of the Valid Excuses . b. Any representation or warranty by Seller made in this Agreement shall prove to have been incorrect, false or misleading in any material respect when made . c. Seller shall default under any of the terms, covenants and conditions of any other agreement with Buyer (if any) which is related to the instant Agreement . d. Seller uses multiple depository accounts without obtaining prior written consent of Buyer in each instance. e. Seller fails to deposit any portion of its Future Receipts into the Approved Bank Account; f. Seller changes the Approved Bank Account or Approved Processor without obtaining prior written consent of BUYER in each instance . g. Seller interferes with Buyer's collection of Initial Installments (or Adjusted Installments, as the case may be). h. Two (2) or more ACH transactions attempted by Buyer are rejected by Seller's bank due to lack of sufficient funds in the Approved Bank Account, without Seller giving Buyer prior notice and a valid reason for said lack of funds. i. Buyer receives an "R 02 ", "R 07 ", "R 08 ", "R 16 ", "R 29 " or any other similar ACH response code indicating that Buyer's ACH transactions have been stopped, not authorized, or the account has been frozen or closed and Buyer has not been given proper notice and reason for said response code . j. The Guaranty shall for any reason cease to be in full force and effect. 27. Default under the Agreement . In case any Event of Default occurs and is not waived by Buyer, in writing, Buyer may declare Seller in default under this Agreement without notice . 28. Seller's Obligations Upon Default . Upon occurrence of an Event of Default due to Seller's breach of its obligations under this Agreement, Seller shall immediately deliver to Buyer the entire unpaid portion of the Purchased Amount . In addition, Seller shall also pay to Buyer, as additional damages, any reasonable expenses incurred by Buyer in connection with recovering the monies due to Buyer from Seller pursuant to this Agreement, including without limitation the costs of retaining collection firms and reasonable attorneys' fees and disbursements (collectively, " Reasonable Damages ") . The parties agree that Buyer shall not be required to itemize or prove its Reasonable Damages and that the fair value of the Reasonable Damages shall be calculated as thirty - three percent (33 %) of the undelivered portion of the Purchased Amount of Future Receipts upon the occurrence of an event of default, or seventy - five hundred dollars ($7 , 500 . 00), whichever is greater . The entire sum due to Buyer pursuant to this Section 29 shall bear simple interest from the Default Payment Date until is paid in full, at the rate of 9 . 00 % per annum (and such interest shall accrue daily) . 29. Remedies Upon Default . Upon Seller's default, Buyer may immediately proceed to protect and enforce its rights under this Agreement and/or Guaranty by :

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 a. Enforcing its rights as a secured creditor under the Uniform Commercial Code including, without limitation, notifying any account debtor(s) of Seller and/or Guarantor(s) as the terms are defined below, of Buyer's security interest (Buyer understands that in the course of notifying said account debtor of Seller's security interest, Seller shall have the right to share any and all information regarding this Agreement and the Personal Guarantee of Performance) ; b. Enforcing the provisions of the Personal Guarantee of Performance against the Guarantor(s) without first seeking recourse from Seller ; c. Notifying Seller's and/or Guarantor's credit card processor of the sale of Future Purchase Receipts hereunder and to direct such credit card processor to make payment to Buyer of all or any portion of the amounts received by such credit card processor on behalf of Seller ; and d. Commencing a suit in law and/or equity, whether for the specific performance of any covenant, agreement or other provision contained herein, or to enforce the discharge of Seller's obligations hereunder (including the Personal Guarantee) or any other legal or equitable right or remedy including without limitation Buyer's rights of a secured party under the UCC . 31. Remedies are not Exclusive . All rights, powers and remedies of Buyer in connection with this Agreement set forth herein may be exercised at any time after the occurrence of any Event of Default, are cumulative and not exclusive and shall be in addition to any other rights, powers or remedies provided to Buyer by law or equity . 32. Power of Attorney . Seller irrevocably appoints Buyer and its representatives as its agents and attorneys - in - fact with full authority to take any action or execute any instrument or document to do the following : (A) to settle all obligations due to Buyer from any credit card processor and/or account debtor(s) of Seller ; (B) upon occurrence of an Event of Default to perform any and all obligations of Seller under this Agreement, including without limitation (i) to protect the value of the Collateral by obtaining the required insurance ; (ii) to collect monies due or to become due under or in respect of any of the Collateral ; (iii) to receive, endorse and collect any checks, notes, drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii) above ; (iv) to sign Seller's name on any invoice, bill of lading, or assignment directing customers or account debtors, as that term is defined by Article 9 of the Uniform Commercial Code (" Account Debtors "), to make payment directly to Buyer (including providing information necessary to identify Seller) ; and (v) to file any claims or take any action or institute any proceeding which Buyer may deem necessary for the collection of any of the unpaid Purchased Amount from the Collateral, or otherwise to enforce its rights with respect to collection of the Purchased Amount . ADDITIONAL TERMS 33. Seller Deposit Agreement . Seller shall execute an agreement with Buyer that shall authorize Buyer to arrange for electronic fund transfer services and/or "ACH" payments of Initial Installments (or Adjusted Installments, as the case may be) from the Approved Bank Account . Seller shall provide Buyer and/or its authorized agent with all information, authorizations and passwords necessary to verify Seller's receivables, receipts and deposits into the Approved Bank Account . Seller shall authorize (by executing written authorizations, if required) Buyer and/or it's agent to deduct daily the amounts of the Initial Installment (or the Adjusted Installment, as the case may be) to Buyer from settlement amounts which would otherwise be due to Seller from electronic check transactions and to pay such amounts to Buyer by permitting Buyer to withdraw the Initial Installments (or the Adjusted Installments, as the case may be) from such an account . The authorization shall be irrevocable until such time when Seller shall have performed its obligations under this Agreement in full . 34. Financial Condition . Seller and its Guarantor(s) authorize Buyer and its agents to investigate their financial status and history and will provide to Buyer any bank or financial statements, tax returns, etc . , as Buyer deems necessary prior to or at any time after execution of this Agreement . A photocopy of this authorization will be deemed as acceptable for release of financial information . Buyer Seller hereby authorizes Buyer to receive from time to time updates on such information and financial status . 35. Transactional History . Seller shall execute written authorization(s) to their bank(s) to provide Buyer with Seller's banking and/or credit - card processing history . 36. Indemnification . Seller and its Guarantor(s) jointly and severally, indemnify and hold harmless to the fullest extent permitted by law Approved Processor, any ACH processor, customer and/or Account Debtors of the Seller, its/their officers, directors and shareholders against all losses, damages, claims, liabilities and expenses (including reasonable attorney's fees) incurred by any ACH processor, customer and/or Account Debtors of the Seller resulting from (a) claims asserted by Buyer for monies owed to Buyer from Seller and (b) actions taken by any ACH processor,

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 customer and/or Account Debtor of the Seller in reliance upon information or instructions provided by Buyer. 37. No Liability . In no event shall Buyer be liable for any claims asserted by Seller or its Guarantor under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of which is hereby knowingly and voluntarily waived by Seller and Guarantor(s) . MISCELLANEOUS 38. Modifications; Agreements . No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same shall be in writing and signed by both parties. 39. Assignment . Buyer may assign, transfer or sell its rights or delegate its duties hereunder, either in whole or in part without prior notice to the Seller . Seller shall not assign its rights or obligations under this Agreement without first obtaining Buyer's written consent . 40. Notices . All notices, requests, demands, claims, and other communications hereunder shall be in writing . Any notice request, demand, claim, or other communication hereunder shall be deemed duly given (a) when delivered personally to the recipient, (b) one (1) business day after being sent to the recipient by recognized overnight courier service, or (c) three (3) business days after being mailed to the recipient by certified, return receipt requested and postage prepaid, and addressed to the intended recipient as set forth in the preamble of this Agreement . 41. Waiver Remedies . No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Agreement, shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise of any other right . The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity . 42. Binding Effect . This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns . 43. Governing Law, Venue and Jurisdiction . This Agreement shall be governed by and construed in accordance with the laws of the State of New York . Seller consents to the jurisdiction of the federal and state courts located in the State of New York, including but not limited to the County of Kings and agrees that (subject to Section 49 of this Agreement) such courts shall be the exclusive forum for all actions, proceedings or litigation arising out of or relating to this Agreement or subject matter thereof ("Dispute"), notwithstanding that other courts may have jurisdiction over the parties and the subject matter, and the parties waive any forum non conveniens or other objection to such jurisdiction and venue . Purchaser may serve Seller with legal process for any Dispute via certified mail by mailing same to Seller's address set forth herein or Seller's current or last known address at the time of suit, and upon such mailing, service shall be proper irrespective of whether a signed certified mail return receipt is returned to Purchaser . 44. Survival of Representation, etc . All representations, warranties and covenants herein shall survive the execution and delivery of this Agreement and shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have expired . 45. Severability . In case any of the provisions in this Agreement are found to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of any other provision contained herein shall not in any way be affected or impaired . Any provision of this Agreement that may be found by a court having jurisdiction to be prohibited by law shall be ineffective only to the extent of such prohibition without invalidating the remaining provisions hereof . 46. Entire Agreement . This Agreement embodies the entire agreement between Seller and Buyer and supersedes all prior agreements and understandings relating to the subject matter hereof . The Exhibit(s), Riders and Addendums, if any, to this Agreement are part of this Agreement . 47. JURY TRIAL WAIVER . THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT HEREOF . EACH PARTY HERETO ACKNOWLEDGES THAT IT MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION AND DISCUSSIONS OF THE RAMIFICATIONS OF THIS WAIVER WITH ITS ATTORNEYS . 48. CLASS ACTION WAIVER . EACH PARTY HERETO WAIVES ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY, AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR IS AGAINST PUBLIC POLICY . TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES HEREBY AGREE THAT : (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS' FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT TO THE CONTRARY) ; AND (2) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION . 49. ARBITRATION . THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THE TRANSACTION CONTEMPLATED BY THIS AGREEMENT, EACH BUYER, SELLER, AND ANY GUARANTOR OF SELLER SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND INTERPRETATION OF THIS AGREEMENT, ARE SUBMITTED TO ARBITRATION . THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION ("AAA") OR NATIONAL ARBITRATION FORUM ("NAF") . EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS' FEES INCURRED DURING THE ARBITRATION PROCEEDING . THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR'S FEE . 50. Counterparts and Facsimile Signatures . This Agreement can be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together, shall constitute one and the same agreement . Signatures delivered via facsimile and/or via Portable Digital Format (PDF) shall be deemed acceptable for all purposes, including without limitation the evidentially purposes . [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. FOR SELLER # 1 FOR THE SELLER # 2 (if any) By: Name: HENRY DONALD LEVINSKI Title: Owner/Agent/Manager EIN: 82 - 5497827 By: Name:DANTE PICAZO Title: Owner/Agent/Manager EIN: 82 - 5497827 AGREE TO BE BOUND BY THE PROVISIONS OF THIS AGREEMENT APPLICABLE TO AND CONCERNING GUARANTOR. OWNER/GUARANTOR # 1 OWNER/GUARANTOR # 2 (if any) By: Name: HENRY DONALD LEVINSKI SSN: ### - ## - #### By: Name: DANTE PICAZO SSN: ### - ## - #### PARK AVE FUNDING By: Name: Title:

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EXHIBIT A PERSONAL GUARANTY OF PERFORMANCE This Personal Guaranty of Performance (this "Guaranty") is executed as of 12 / 20 / 2022 , by the undersigned individual(s) whose name(s) and signature(s) appear in the signature box of this Guaranty (individually and collectively, jointly and severally, " Guarantor ") for the benefit of PARK AVE FUNDING (" Buyer ") . WHEREAS: A. Pursuant to that Future Receivables Sale and Purchase Agreement (the " Agreement "), dated as of 12 / 20 / 2022 , between Buyer and the Seller(s) listed below (collectively and individually, " Seller "), Buyer has purchased a portion of Future Receipts of Seller . B. Each Guarantor is an owner, officer, manager or affiliate of Seller and will directly benefit from Buyer and Seller entering into the Agreement . C. Buyer is not willing to enter into the Agreement unless Guarantor irrevocably, absolutely and unconditionally guarantees to Buyer prompt and complete performance of all of the obligations of Seller under the Agreement (each such obligation, individually, an " Obligation " and all such obligations, collectively, the " Obligations ") . NOW, THEREFORE, as an inducement for Buyer to enter into the Agreement, and for other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, Guarantor does hereby agree as follows: 1. Defined Terms . All capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Agreement . 2. Guaranty of Obligations . Guarantor hereby irrevocably, absolutely and unconditionally guarantees to Buyer prompt, full, faithful and complete performance and observance of all of Seller's Obligations ; and Guarantor unconditionally covenants to Buyer that if default or breach shall at any time be made by Seller in the Obligations, Guarantor shall well and truly pay or perform (or cause to be paid or performed) the Obligations and pay all damages and other amounts stipulated in the Agreement with respect to the non - performance of the Obligations, or any of them . 3. Guarantor's Additional Covenants . The liability of Guarantor hereunder shall not be impaired, abated, deferred, diminished, modified, released, terminated or discharged, in whole or in part, or otherwise affected, by any event, condition, occurrence, circumstance, proceeding, action or failure to act, with or without notice to, or the knowledge or consent of, Guarantor, including, without limitation : a. any amendment, modification or extension of the Agreement or any Obligation; b. any extension of time for performance, whether in whole or in part, of any Obligation given prior to or after default thereunder; c. any exchange, surrender or release, in whole or in part, of any security that may be held by Buyer at any time under the Agreement; d. any other guaranty now or hereafter executed by Guarantor or anyone else; e. any waiver of or assertion or enforcement or failure or refusal to assert or enforce, in whole or in part, any Obligation, claim, cause of action, right or remedy which Buyer may, at any time, have under the Agreement or with respect to any guaranty or any security which may be held by Buyer at any time for or under the Agreement or with respect to the Seller ; f. any act or omission or delay to do any act by Buyer which may in any manner or to any extent vary the risk of Guarantor or which would otherwise operate as a discharge of Guarantor as a matter of law; g. the release of any other guarantor from liability for the performance or observance of any Obligation, whether by operation of law or otherwise; h. the failure to give Guarantor any notice whatsoever; DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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4. i. any right, power or privilege that Buyer may now or hereafter have against any person, entity or collateral. Guarantor's Other Agreements. Guarantor will not dispose, convey, sell or otherwise transfer, or cause Seller to dispose, convey, sell or otherwise transfer, any material business assets of Seller outside of the ordinary course of Seller's business without the prior written consent of Buyer, which consent may be withheld for any reason, until receipt of the entire Purchased Amount . Guarantor shall pay to Buyer upon demand all expenses (including, without limitation, reasonable attorneys' fees and disbursements) of, or incidental to, or relating to the enforcement or protection of Buyer's rights hereunder or Buyer's rights under the Agreement . This Guaranty is binding upon Guarantor and Guarantor's heirs, legal representatives, successors and assigns and shall inure to the benefit of and may be enforced by the successors and assigns of Buyer . If there is more than one Guarantor, the obligations of the Guarantors hereunder shall be joint and several . The obligation of Guarantor shall be unconditional and absolute, regardless of the unenforceability of any provision of any agreement between Seller and Buyer, or the existence of any defense, setoff or counterclaim, which Seller may assert . Buyer is hereby authorized, without notice or demand and without affecting the liability of Guarantor hereunder, to at any time renew or extend Seller's obligations under the Agreement or otherwise modify, amend or change the terms of the Agreement . Guarantor is hereby notified and consents that a negative credit report reflecting on his/her credit record may be submitted to a credit - reporting agency if the Guarantor does not honor the terms of this Guaranty . 5. Waiver ; Remedies . No failure on the part of Buyer to exercise, and no delay in exercising, any right under this Guaranty shall operate as a waiver, nor shall any single or partial exercise of any right under this Guaranty preclude any other or further exercise of any other right . The remedies provided in this Guaranty are cumulative and not exclusive of any remedies provided by law or equity . In the event that Seller fails to perform any obligation under the Agreement, Buyer may enforce its rights under this Guaranty without first seeking to obtain performance for such default from Seller or any other guarantor . 6. Acknowledgment of Purchase . Guarantor acknowledges and agrees that the Purchase Price paid by Buyer to Seller in exchange for the Purchased Amount of Future Receipt is a payment for an adequate consideration and is not intended to be treated as a loan or financial accommodation from Buyer to Seller . Guarantor specifically acknowledges that Buyer is not a lender, bank or credit card processor, and that Buyer has not offered any loans to Seller, and Guarantor waives any claims or defenses of usury in any action arising out of this Guaranty . Guarantor acknowledges that the Purchase Price paid to Seller is good and valuable consideration for the sale of the Purchased Amount . 7. Governing Law and Jurisdiction . This Guaranty shall be governed by and construed exclusively in accordance with the laws of the State of New York, without regards to any applicable principles of conflicts of law . Any lawsuit, action or proceeding arising out of or in connection with this Guaranty shall be instituted exclusively in any court sitting in New York State (the "Acceptable Forum") . The parties agree that the Acceptable Forum is convenient and submit to the jurisdiction of the Acceptable Forum and waive any and all objections to inconvenience of the jurisdiction or venue . Should a proceeding be initiated in any other forum, each of the parties to this Guaranty irrevocably waives any right to oppose any motion or application made by any other party to transfer such proceeding to the Acceptable Forum . Seller and its Guarantor(s) acknowledge and agree that the Purchase Price is being paid and received by Seller in New York, that the Specified Percentage of the Future Receipts are being delivered to Buyer in New York, and that the transaction contemplated in the Agreement was negotiated, and is being carried out, in New York . Seller and its Guarantor(s) acknowledge and agree that New York has a reasonable relationship to this Guaranty . 8. JURY WAIVER . THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS GUARANTY IS A PART OR ITS ENFORCEMENT, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY . THE PARTIES ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS . 9. CLASS ACTION WAIVER . THE PARTIES WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY . TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES AGREE DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861 THAT : (I) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS' FEES OR COSTS ASSOCIATED WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT) ; AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION . 10. ARBITRATION . THE PARTIES ACKNOWLEDGE AND AGREE THAT, PROVIDED THAT NO SUIT, ACTION OR PROCEEDING HAS BEEN ALREADY COMMENCED IN CONNECTION WITH ANY MATTER ARISING OUT OF OR RELATED TO THIS GUARANTY AND/OR THE TRANSACTION CONTEMPLATED BY THE AGREEMENT, EACH BUYER, SELLER AND GUARANTOR SHALL HAVE THE RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION AND/OR INTERPRETATION OF THIS GUARANTY ARE SUBMITTED TO ARBITRATION . THE PARTY SEEKING ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES, BY CERTIFIED MAIL . UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION ("AAA") OR NATIONAL ARBITRATION FORUM ("NAF") . EACH SELLER, GUARANTOR AND BUYER SHALL PAY THEIR OWN ATTORNEYS' FEES INCURRED DURING THE ARBITRATION PROCEEDING . THE PARTY INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND ARBITRATOR'S FEE . 11. Severability . If for any reason any court of competent jurisdiction finds any provisions of this Guaranty to be void or voidable, the parties agree that the court may reform such provision(s) to render the provision(s) enforceable ensuring that the restrictions and prohibitions contained in this Guaranty shall be effective to the fullest extent allowed under applicable law . 12. Opportunity for Attorney Review . The Guarantor represents that he/she has carefully read this Guaranty and has had a reasonable opportunity to – and to the extent he or she wishes did – consult with his or her attorney . Guarantor understands the contents of this Guaranty and signs this Guaranty as his or her free act and deed . 13. Counterparts and Facsimile Signatures . This Guaranty may be signed in one or more counterparts, each of which shall constitute an original and all of which when taken together shall constitute one and the same agreement . Facsimile or scanned documents shall have the same legal force and effect as an original and shall be treated as an original document for evidentiary purposes . AGREED AND ACCEPTED : OWNER/GUARANTOR #1 By: OWNER/GUARANTOR #2 (if any) By: Name: HENRY DONALD LEVINSKI SSN: 555 - 84 - 9055 PARK AVE FUNDING By: Name: Title: Name: DANTE PICAZO SSN: 465 - 02 - 7624

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RIDER 1 TO THE FUTURE RECEIVABLES SALE AND PURCHASE AGREEMENT ("Agreement") Between PARK AVE FUNDING ("BUYER") And CHINA INFRASTRUCTURE CONSTRUCTION ("Seller"), dated 12/20/2022 . APPLICABLE FEES 1. Possible Conflicts . If there is any conflict or inconsistency between any of the provisions of this Rider and any of the provisions of the Future Receivables Sale and Purchase Agreement (the "Agreement") to which this Rider is attached, all such conflicts and inconsistencies shall be resolved in favor of the provisions of this Rider . 2. Definitions . All capitalized terms used in this Rider shall have the meaning set forth in the Agreement unless otherwise indicated herein . 3. Applicable Fees . The parties agree that the Applicable Fees which Seller shall pay to Buyer, pursuant to Section 17 of the Agreement shall be as follows : a. Origination Fee : $3056 . 00 , or up to ten percent (10 %) of the Purchase Price (the cost of the due diligence and underwriting of Seller's business performed by Buyer . As a general rule, the Origination Fee varies and depends on the complexity of underwriting required on a business including without limitation, sophistication of Seller's principals, difficulty in ascertaining Seller's receivables and account debtors, sources of Seller's revenue flow, etc .) . b. UCC Fee : $250 . 00 c. NSF Fee : $35 . 00 per NSF d. ACH Rejection Fee : $35 . 00 per rejection e. Default Fee : See Section 29 of the Agreement 4. Authorization . Seller hereby authorizes Buyer to apply a portion of the Purchase Price due to Seller pursuant to the Agreement toward satisfaction of Seller's obligation to pay the Applicable Fees pursuant to Section 17 of the Agreement by deducting the amount of the Applicable Fees from the Purchase Price prior to delivering it to Seller . 5. No Reduction of Purchase Price . Seller hereby agrees that deduction of the Applicable Fees from the Purchase Price shall not be deemed to reduce the Purchase Price . Seller and Buyer agree that this Rider shall be attached to the Agreement and shall be made a part thereof . FOR THE SELLER By: FOR THE SELLER #2 (If any) By: Name: HENRY DONALD LEVINSKI Name: DANTE PICAZO DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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and RIDER 2 TO THE FUTURE RECEIVABLES SALE AND PURCHASE AGREEMENT ("Agreement") Between PARK AVE FUNDING ("BUYER") CHINA INFRASTRUCTURE CONSTRUCTION ("Seller") dated October 17, 2022 . PRIOR BALANCE 1. Possible Conflicts . If there is any conflict or inconsistency between any of the provisions of this Rider and any of the provisions of the Future Receivables Sale and Purchase Agreement (the "Agreement") to which this Rider is attached, all such conflicts and inconsistencies shall be resolved in favor of the provisions of this Rider . 2. Definitions . All capitalized terms used in this Rider shall have the meaning set forth in the Agreement unless otherwise indicated herein. 3. Prior Balance . Seller represents and warrants that the following list of its creditors and the amounts that Seller owes its creditors as of the Effective Date of the Agreement is true, correct and complete: TOTAL PRIOR BALANCE: $31,944.00 4. Authorization . Seller hereby authorizes Buyer to apply a portion of the Purchase Price due to Seller pursuant to the Agreement toward satisfaction of Seller's obligation to pay the Prior Balance pursuant to Section 18 of the Agreement by deducting the amount of the Prior Balance from the Purchase Price prior to delivering it to Seller, and to forward the specific amounts owed by Seller to Buyer and/or the creditors listed in this Rider . 5. No Reduction of Purchase Price . Seller hereby agrees that deduction of the Prior Balance from the Purchase Price shall not be deemed to reduce the Purchase Price. 6. Indemnification . Seller hereby indemnifies and holds harmless Buyer for any and all damages and losses (including without limitation legal fees and expenses) incurred by Buyer as the result of the information set forth in this Rider being untrue or incorrect or incomplete . Seller and Buyer agree that this Rider shall be attached to the Agreement and shall be made a part thereof. AGREED AND ACCEPTED: OWNER/GUARANTOR #1 By: Name: HENRY DONALD LEVINSKI SSN: ### - ## - #### PARK AVE FUNDING By: Name: Title: OWNER/GUARANTOR #2 (if any) By: Name: DANTE PICAZO SSN: ### - ## - #### DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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Dear Seller, Thank you for your interest in working with PARK AVE FUNDING. We look forward to working with you for as long as you need. As part of the underwriting process, PARK AVE FUNDING will require viewing access to your bank account prior to and during the Future Receivables Sale and Purchase Agreement . Please be assured that we carefully safeguard your confidential information, and only essential personnel will have access to it . Please fill out the form below with the information necessary to access your account . \* Be sure to indicate capital or lower - case letters . Name of bank : Bank portal website : Username : Password : Security Question/Answer 1 : Security Question/Answer 2 : Security Question/Answer 3 : Any other information necessary to access your account : DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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AUTHORIZATION AGREEMENT FOR AUTOMATED CLEARING HOUSE TRANSACTIONS CHINA INFRASTRUCTURE CONSTRUCTION ("Seller") hereby authorizes Buyer to present automated clearinghouse ("ACH") debits to the following checking account in the amount of the Initial Installment . In addition, if any Default occurs under the Agreement, Seller authorizes Buyer to debit any and all accounts controlled by Seller or controlled by any entity with the same Federal Tax Identification Number as Seller up to the total amount, including but not limited to, all fees and charges, due to Buyer from Seller under the terms of the Agreement . All capitalized terms herein shall be as defined in the Future Receivables Sale and Purchase Agreement attached hereto . Lastly, Seller agrees to be bound by the ACH Rules as set by NACHA . Name of Bank: Account Number: Number: Seller's EIN: 82 - 5497827 Routing SELLER Signature: Name: HENRY DONALD LEVINSKI Date: 12/20/2022 SELLER #2 Signature: Name: DANTE PICAZO Date: 12/20/2022 PLEASE ATTACH A VOIDED CHECK DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

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EXHIBIT B LIST OF ADDITIONAL PARTIES IN WHOSE ASSETS SELLER HAS GRANTED BUYER A BLANKET SECURITY INTEREST: Buyer may file a UCC - 1 financing statement with the appropriate Secretary of State(s) reflecting a blanket security interest in the assets of the above - listed entities. Dated: 12/20/2022 Signature: Name: HENRY DONALD LEVINSKI Date: 12/20/2022 Signature: Name: DANTE PICAZO Date: 12/20/2022 DocuSign Envelope ID: AFE502F2 - 297D - 4002 - 9A5D - 921822FB6861

## Ex-21

**Exhibit 21**

Subsidiaries of the Registrant

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| | | |
|:---|:---|:---|
| **<u>Name</u>** | **<u>Jurisdiction of Organization</u>** | **<u>Percentage Owned</u>** |
| Alpha Fertility and Sleep Center, LLC | Texas | 100% |

---

## Ex-23

**Exhibit 23**

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**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

***To Whom It May Concern:***

We hereby consent to the use in this Registration Statement to form S-1 (File No. 333-267039) Amendment No. 1 of our audit opinion report dated November 28, 2022, with respect to the audited financial statements of Cannabis Bioscience International Holdings, Inc. (formerly China Infrastructure Construction Corp) included in form S-1 for the period ended May 31, 2022. We also consent to the references to us under the headings "Experts" in such Registration Statement.

Very truly yours,

 

*/s/PWR CPA, LLP*

 

PWR CPA, LLP

Houston, TX

January 13, 2023

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

(Form Type)

Cannabis Bioscience International Holdings, Inc.

(Exact Name of Registrant as Specified in its Charter)

<u>Table 1: Newly Registered and Carry Forward Securities</u>

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Security<br> Type** | **Security <br> Class <br> Title** | **Fee <br> Calculation <br> or Carry <br> Forward <br> Rule** | **Amount<br> Registered** | **Proposed<br> Maximum<br> Offering<br> Price Per**<br> **Unit** | **Maximum <br> Aggregate <br> Offering <br> Price** | **Fee<br> Rate** | **Amount of <br> Registration <br> Fee** | **Carry <br> Forward <br> Form <br> Type** | **Carry<br> Forward<br> File<br> Number** | **Carry<br> Forward<br> Initial<br> effective**<br> **date** | **Filing Fee<br> Previously<br> Paid In<br> Connection<br> with<br> Unsold<br> Securities<br> to be<br> Carried<br> Forward** |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to Be <br> Paid | Common Stock | Common Stock | 457 | 8894797743 | 0.00075 | 6671098.33 | .01102 | 735.16 | S-1/A | 333-267039 | 01/13/23 | 0 |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities | Common Stock | Common Stock | 457 | 3859674139 | 0.0021 | 8105315.69 | .00927 | 751.37 | S-1 | 333-267039 | 8/24/22 |  |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  |  |  | 735.16 |  |  |  |  |
|  | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** | **Total Fees Previously Paid** |  |  |  | 751.37 |  |  |  |  |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** |  |  |  | 0 |  |  |  |  |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  | 0.00 |  |  |  |  |

---